| Business Will Never Be Done the Same Again |
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| Written by Charles E. Wilson IV |
| Tuesday, 25 August 2009 15:52 |
 In side conversations outside meeting rooms and around water coolers everywhere, it is frequently said that after the current economic recession, "business will never be done the same way again." While that may be an exaggeration in many cases, executives are noticing that in the new economic landscape their current business model will no longer continue to drive the same profits as they have in years past. In no other sector is this realization more applicable than that of the Real Estate Investment arena.Real estate investment companies over the last decade have been able to rely largely upon almost guaranteed market appreciation to drive the internal rate of return for their investments. This environment coupled with ease of financing caused companies to reach out for new investment opportunities to drive income rather than looking in house for savings. With the bubble bursting on property values, lenders and investors alike are putting a premium on a property's ability to make money as a core base for market value. As net operating income becomes an increasingly more important factor of property values, property managers are receiving pressure from investors to drive more profits through operations. This forced introspection is not new in the overall marketplace as manufacturing and service oriented companies have been obsessed with focusing on core operations and process efficiency to outperform their competition. If you were to pick up the phone and dial any COO of a manufacturing company and ask them what they are using to optimize operations, their response would likely be ‘more data, better data, and frequent analytic updates to understand if new processes are driving the expected results.' So what would one need in order to get their hands on the above? The answer is better and more capable finance and accounting systems. Implementing new web based financial systems will allow a company to improve their operations on two levels: Improved Reporting Efficiency - I have worked with companies that have leveraged newer generation systems to reduce time spent on core reporting functions by as much as 60%. Many companies are still relying heavily on outdated spreadsheets to complete reports needed for investor quarterly reporting or SEC filings. Generating complex reports out of a spreadsheet is prone to error, especially when a great deal of consolidation is necessary in order to get to the desired data. These reporting functions can be automated allowing for finance organizations to focus on finding new areas for cost reduction. Real Time Data Analysis - Utilizing custom reports and dashboards can allow for managers and executives to have real-time tracking of performance analytics. A user can login and see instantly how their processes and organization are functioning. This type of instant data and trending analysis can allow for companies to optimize new functions or processes in a shorter time frame rather than waiting for time consuming reporting that can sometimes allow inefficiencies to continue for much longer than necessary. As the budgeting cycle is set to begin or in full force for real estate investment companies everywhere, finance and accounting groups are already leveraging their current IT framework to analyze in house operations. So it is likely the pain of having non-integrated systems and high maintenance spreadsheet models to support this function is fresh in your mind as you read this article. With the down economy, software companies everywhere are discounting their products to maintain demand. So now is the time if ever to begin looking into enhancing your technology. For more information on purchasing and adopting new technology solutions, feel free to reach out to me at cwilson@inroadstech.com with any questions and for a free copy of our “Top 10 Things to Consider when Selecting New Technology Solutions” white paper article. Charles E. Wilson IV, Sr. Consultant, Inroads Technology, Inc. |
| Last Updated on Tuesday, 27 October 2009 08:50 |
