When Is the Right Time to Upgrade Your Tech Stack? 

Note: Article updated in November 2023 to reflect CRE projections for 2024.

As one of the main catalysts for business innovation, technology continues to elevate organizations’ productivity and improve their operational efficiency. In the current fast-paced commercial real estate environment, a comprehensive technology stack can help capture the most lucrative opportunities, drive employee performance and maintain a competitive edge.  

The right approach to deciding if and when to adopt new CRE tech should involve a thorough evaluation of the challenges faced by your organization and how digital tools can increase resiliency and strengthen your operations. Below, we explore the key steps businesses should consider when deciding on the implementation of new tech solutions. 

Assess Your Needs and Challenges  

First, make sure to evaluate your internal needs and the challenges your business is facing, then try to answer the following questions: How are these needs and challenges expected to shift in the coming quarters and years? How are your existing tech solutions performing? Which areas are impacted by productivity bottlenecks? What do you do better than your competitors and how would new tech help optimize your operations in order to stand out? 

Evaluate Products and Involve Key Personnel  

After taking stock of your position, the next step is to conduct an analysis of potential solutions that would be a good fit for your operations and your team. A strong emphasis on intelligent technology investments is paramount, a trend underpinned by the Deloitte 2024 Commercial Real Estate Outlook. The report found that although 61% of global real estate owners and investors still rely on outdated technology infrastructures, almost half of these legacy users plan to transition to more modern systems.

• Regarding respondents’ interest and investment in emerging technologies, AI is leading in hard dollar commitments, with 72% of organizations either piloting, in early-stage implementation or in full production with AI-enabled solutions. Digital twin technology, using real-time data from smart sensors to track utility usage, came in second with 67% in hard dollar commitments, according to the Deloitte outlook.

An essential factor at this point is to involve key leadership and back-office personnel in the decision process. When demoing the solutions on your shortlist, involve someone on your team who will work directly on implementing and monitoring the new software. Keep track of feedback and focus on the pain points each tool helps solve, on the benefits these add to your operations and prioritize them in your decision-making. 

Communicate Clearly and Concisely 

Communicate often and precisely with the team members who are directly involved in the implementation process. Outline and emphasize the benefits of a new solution and tie them to specific pain points of key individuals in your organization. Making the connection between pain points and benefits can ensure the overall success of the adoption of new technology. 

Set Realistic Goals and Timelines 

For a successful acceptance and implementation process, consider financial costs as well as training timelines in addition to involving key members of your front and back office. Make sure to have a comprehensive overview of your budget, a timeline estimate of the training process and a clear understanding of how much time and resources your organization can save by implementing new tech. 

Keep in Mind Employee Satisfaction 

Lastly, consider the vital role technology plays in personnel retention and well-being. Digital solutions can strengthen your employees’ skill sets, which in turn stimulate performance and amplify productivity. For instance, CRE tech solutions that provide advanced features and amenities enhance the workspace and provide a more welcoming, efficient and secure office environment.  

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The Deloitte 2024 outlook for CRE underscores the importance of technological advancement and the fundamental role it plays in bolstering industries and businesses. According to the report, breaking down data silos and improving data flow speed across organizations should be mission-critical in 2024.

Therefore, businesses focused on their bottom line and intent on remaining competitive in the current dynamic CRE landscape should consistently evaluate their tech stack. As technology continues to evolve at a rapid pace, businesses should keep a close eye on innovation and the numerous ways technology can optimize operations and maximize revenue streams.