The increasing interconnectedness of our world is accelerating technological progress; the innovation and development cycles of digital solutions are becoming ever shorter. As a result, many properties are already technologically outdated when they are put into operation. The cloud can help to develop them no longer just for the present, but above all for the future.
The digital transformation is not only changing the way we work and live, but also the structure and function of property. A building is no longer just a static object, but a dynamic, digitally networked system that should evolve in line with technological progress wherever possible. However, property owners and developers face particular challenges in many respects, especially as large construction projects can take several years from project planning to commissioning.
Digital transformation
In contrast, the digitalisation of processes is developing rapidly. This contrast can be illustrated by comparing traditional SIA processes with the release cycle of an iPhone. In the period from project planning to the commissioning of a property, several generations of iPhones are launched on the market, each with new features and technical optimisations. The constant development of the technological basis means that the digital components and systems taken into account in property planning may already be outdated by the time they are installed. In other words, technological progress is outpacing property due to its static nature. The aim is therefore to develop buildings and their technical equipment so flexibly that they can fulfil the requirements of different life cycles, both of traditional building elements and of digital solutions. Consequently, we are no longer building for eternity, but for the future.
From electromechanics to internet connection
This idea is not new. If we map the digital transformation onto a building, the mechanisation of real estate can be divided into different phases. The period between the end of the 19th century and the middle of the 20th century was characterised by basic electromechanical systems that were used to control certain functions in buildings. As a result, for example, electric lighting systems, lifts or the control of heating and air conditioning systems were installed. As electronics progressed, building systems became more complex and efficient. Electronic control made it possible to precisely regulate building functions such as ventilation, heating and security systems. This was followed by the commercial use of the internet from 1990 onwards, which led to rapid changes, including in building management. Remote monitoring and control of properties allows us to react to events in real time without having to be physically on site. Since then, heating, ventilation and air conditioning systems can be adjusted based on real-time data and weather forecasts, for example, in order to optimise energy consumption.
Scalability as a key factor
This development paved the way for smart buildings based on the principles of the Internet of Things (IoT). Property owners are installing sensors and networked devices to make their buildings smarter, more efficient, more sustainable and more user-friendly. Building management systems are now standard in large buildings and allow integrated control and centralised monitoring of the entire building technology. The next development step is now the building in the cloud. The focus here is on the centralised management of data and its integration into various systems and processes. What is new about this is the scalability: the IT infrastructure can be flexibly adapted to requirements without having to add or remove physical hardware. Only the cloud makes full building automation - even via mobile phone - possible. This lays an important foundation for properties to keep pace with the dynamics of technological development.
Lack of standards is slowing down connectivity
We continue to plan and construct buildings as one-offs. They are developed individually and organised according to trades. At the same time, a wide range of services within the property rely on internet and cloud infrastructures. The current concepts focus on the individual trades in the respective construction project and are therefore not sufficiently geared towards a property-wide management model from the perspective of the owner, operator or manager. This is clearly illustrated by the example of connectivity. On the part of the building owner, there is a lack of standards for the integration of an owner-coordinated network that enables synergies with regard to the internet use of various technical systems such as e-mobility, photovoltaics, meters or alarms within a property. The cloud platforms supplied by the service provider enable access to the data of the technical systems, but there is no holistic integration concept to link this information with other data and processes from the property or the organisation. The solution lies in open API interfaces and integrated data platforms. This allows the owner to maintain data sovereignty, grant operators and managers automated data access while taking data security into account and thus retain control over the information. When you consider how many internet subscriptions and log-ins are used today and how inefficient the operation of heterogeneous IT landscapes is, it becomes clear that scalability, data sovereignty and, in particular, information protection and data security are only possible to a limited extent with today's approach to the digitalisation of properties.
Comparison with reality
We are still a long way from realising fully integrated data platforms at building level. Before the real estate industry can benefit on a large scale from advanced technologies such as artificial intelligence, the necessary data structures need to be created and harmonised. The democratisation of Building Information Modelling (BIM) is therefore the next logical step. Nevertheless, I consider the digitalisation of the real estate industry over the last 15 years to be positive. The industry has recognised the potential of real estate as an interface between the physical and digital worlds in terms of a systemic approach. There is now a certain amount of pragmatism when it comes to investing in digital development; people accept that technologies that initially require additional effort also bring great benefits. Market participants should embrace this transformation even more and realise that digitalisation does not just happen, but is actively shaped. The real estate industry would do well to learn from other sectors how organisations, IT infrastructures and business models can be efficiently aligned. After all, transformative changes require not only technological adjustments, but also organisational support, including the development and expansion of roles, skills and competencies.