Simon Caspar, digitalisation expert and business economist in facility management, talks about the impact of low-code apps in FM and explains how they can save time and costs.
Work smarter, not harder. This is the title of this year's series of events launched by Simon Caspar, partner at pom+Consulting, and his team. pom+ is a consulting firm specialising in real estate that helps companies simplify the exchange between organisation, real estate and IT systems - in terms of content, processes and data. The first webinar was dedicated to process digitalisation and focused on smart FM. Afterwards, we asked Simon Caspar for his views on the networked world. He talks to us about how low-code apps can support professional planning and control of facility management in times of a shortage of skilled workers and increasing cost pressure, and what advantages they bring with them.
YOU HAVE BEEN ADVISING COMPANIES IN THE REAL ESTATE INDUSTRY ON PROCESS EFFICIENCY FOR 17 YEARS, SINCE 2012 AS HEAD OF BUSINESS UNIT DIGITAL SOLUTIONS. HOW
HAVE THE ISSUES CHANGED SINCE THEN?
Process efficiency ensures higher productivity and thus has a direct influence on the profitability of an organisation. This has not changed; interest in the topic is and remains correspondingly high. However, the demands on a modern company and accordingly on the process landscape have changed significantly. The digital transformation is probably the most important driver. It enables the automation and optimisation of all kinds of processes, puts the focus more on customer needs and ensures a seamless flow of data. But other developments are also crucial. For example, agile working methods demand greater process flexibility and faster decision-making. In addition, we are increasingly moving in a collaborative environment and often cooperate across company or even industry boundaries. In this networked world, processes have to be thought of in an overarching and "end-to-end" way. When I deal with process efficiency today, I usually do so in the context of digitalisation. Here, the focus is on questions of integration, consistency and the reduction of complexities.
AS A BUSINESS ECONOMIST IN FACILITY MANAGEMENT, YOUR FOCUS IS PRIMARILY ON BUILDING OPERATION AND MANAGEMENT. HOW DOES THE DIGITAL TRANSFORMATION AFFECT THE PROCESSES IN REAL ESTATE MANAGEMENT?
The FM industry today is very diversified and competitive, and the demands on real estate management are constantly becoming more challenging. FM companies have to adapt to new infrastructures, because real estate portfolios are becoming more complex with the digital upgrade of properties and especially the development of smart buildings. In addition, there is an extensive range of services, uncertainties regarding terms of mandate relationships and the shift from flat-rate services to on-demand claims. Digital skills are becoming increasingly important to ensure the scalability of services.
ALSO AGAINST THE BACKGROUND OF THE NETWORKED WORLD MENTIONED AT THE BEGINNING.
Correct. We are moving towards a future that is largely based on connectivity and cooperation, which has consequences for the highly fragmented processes in real estate operations: Cross-company cooperation means that parts of the value chain are outsourced and a variety of digital systems and data sources have to be managed across the board in building operations.
WHAT ARE THE CONSEQUENCES FOR THE FM?
Whereas knowledge of a CAFM system used to be sufficient, the Internet of Things (IoT), edge computing, cloud and mobile must now also be able to be put into context. The resulting data offer potential for insights, for example to identify patterns and trends in user behaviour. But even greater potential lies in automation, for example by controlling building operations more dynamically based on data, detecting deviations more quickly and thereby reducing consumption, CO2 and operating costs, in some cases significantly. In essence, it is actually always a question of linking numerous loose ends, i.e. media or system breaks, in order to ensure efficient building operation. These developments have come to a head in recent years.
TO WHAT EXTENT DOES COST PRESSURE PLAY A ROLE HERE?
A significant one. Cost pressures mean that FM service providers and building operators are under constant pressure to structure and manage their processes as efficiently and effectively as possible. In an environment that knows practically exclusively flat-rate revenue and cost mechanisms with short contract terms, and at the same time is fighting against falling margins and a declining willingness to pay, the scope for inefficiency is small. After all, inefficient processes cost money - and in FM there is always too little of that.
WITHOUT FINANCIAL RESOURCES, HOWEVER, IT IS NOT POSSIBLE TO AUTOMATE PROCESSES OR BUILD UP DIGITAL COMPETENCES...
There are certainly possibilities and solutions that do not immediately require a reorganisation of the IT architecture or the replacement of existing systems. Digital processes are increasingly developing in the direction of low code. With this concept, digital solutions can be more strongly shaped and co-developed by the specialist departments, while scarce resources on the part of software developers are simultaneously relieved. Thanks to so-called low-code apps and the underlying development platforms, processes can be digitally mapped and gradually automated in a short time and with little effort. I recommend starting small and simple. For example, by digitising specific use cases with manual steps, media breaks or Excel interfaces. This can often have a big impact.
WHAT MAKES SUCH LOW-CODE SOLUTIONS STAND OUT, APART FROM THE SIMPLIFIED DEVELOPMENT?
Low-code apps are usually process-oriented. The employees are guided by the system by means of specific screen masks tailored to the respective work step. Only information and input fields that are needed in the respective step are displayed. Manual activities can be skipped due to automatisms in the background. This makes data entry, information forwarding and approvals much easier and more efficient. Such low-code apps are also linked to core systems, for example CAFM, ERP or document management systems. This simplifies the interaction between man and machine and increases the data quality in the systems. In order to capture the dynamics from the business processes and embed them in software, it must be possible to develop such solutions quickly and easily and, in particular, to adapt them. Low code plays a central role here. Since it is built on prefabricated elements like a construction kit, is easily visualised and much is automated in the background, apps can be driven more strongly by the business departments.
SO ARE LOW-CODE APPS THE NEW MAGIC PILL AGAINST ALL ADVERSITIES IN OPERATIONS?
No, they aren't. The digital transformation requires an adaptation of the existing infrastructure and processes. This goes beyond individual use cases. But low-code solutions are an important step towards rapidly increasing efficiency. They facilitate and accelerate the exchange of information and documents between different teams and increase transparency, for example about the status of maintenance work or the workload of employees. Ultimately, they help to deploy resources correctly and thus allocate time and costs where a direct customer benefit is achieved - in the property. And this is usually easier and more flexible than when process solutions are mapped in large, complex core systems.
SO THEY ARE PARTICULARLY SUITABLE FOR SMALL OR MEDIUM-SIZED COMPANIES?
Not exclusively. Many of our customers are renowned large companies that use low-code apps very specifically to make certain processes in their operations more efficient. Such solutions are particularly interesting for large FM providers when flexibility is the priority in the face of changing customer needs or mandate relationships and larger investments cannot be amortised over a longer period of time. Furthermore, it must be considered that the expectations of employees are changing. A modern working environment is becoming increasingly important in order to retain talent. Digital infrastructure is part of this. Plug & play is now a matter of course, especially for younger generations. Carbon paper and clipboards have had their day.
AND THE NEXT LOGICAL STEP IS ARTIFICIAL INTELLIGENCE (KI). THIS TOO CAN AUTOMATE PROCESSES AND MAKE THEM MORE EFFICIENT. ARE LOW-CODE SOLUTIONS THE MORE COST-EFFECTIVE ALTERNATIVE?
AI is more of a complement than an alternative. Especially with business rules, which play a big role in digital processes, interaction with humans is often needed today so that the process knows what the next steps are. AI can be the key to automation here. There are also already many solutions today that intelligently combine these two aspects. For example, AI models are used in document recognition. The data generated from this can be used to assign the document or a related task to the right clerk. The term hyperautomation refers to the comprehensive automation of such processes, for example, when actions such as a billing, an order or an application approval are automatically processed and documented without human intervention. Digital process solutions created using low code in combination with AI are an ideal combination for this.
About the expert
Simon Caspar holds a degree in Business Administration FH in Facility Management and an Executive MBA from the University of St. Gallen (HSG). 10 years ago, he built up the Digital Solutions business unit as a partner at pom+Consulting AG. Today he is responsible for three service units with a total of 28 IT specialists, business analysts, data architects and requirement engineers. He supports companies in thinking of their organisation, processes, data and real estate as a unit and views digital systems as transport axes for the seamless exchange of information.
This article first appeared in the 21 June 2023 issue of fmpro Swiss erschienen. The interview was conducted by Stefan Kühnis.