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Comprehensive, Consolidated Database a Critical Management Tool Smoothing the Transition to a New Software System
March, 2008
By Richard Malpica
Today's most advanced software packages feature fully integrated solutions that consolidate portfolio, financial, lease, and other information into one database, giving all network users instant, secure access. Companies researching upgrade options will typically be looking for a product that can maximize efficiencies and accuracy, streamline workflow, mitigate risk, create transparency for users and investors, improve communications among stakeholders, and deliver enterprise-wide solutions.
Some suggested guidelines for decision-making can help make the purchase and subsequent upgrade process smooth, profitable and trauma-free. Plan carefully and recognize that a new system implementation will require time, resources and change management.
Plan ahead
The complexity of software systems means it's critical to approach implementation in a comprehensive manner. Creating a viable roadmap with a clearly defined purpose and anticipated outcome will minimize disruption to operations. That involves defining and prioritizing technical and functional requirements, and separating need-to-have features from nice-to-haves.
Seek expert advice and ask the hard questions: What needs upgrades, and why? What are all the options, and which best meet the company's needs? Should it be implemented in phases or all at once?
Evaluate potential suppliers
Which supplier has the best record of success and offers the best value. money? Is the supplier well established, financially stable, and experienced in the real estate industry? Do any of the candidates have a history of making midstream changes to the implementation scope or cost estimate? Can the supplier continue to be a technology partner as a company's business needs expand?
Minimize risk
Keep in mind that well-designed management systems diminish risk in multiple ways. Comprehensive system transparency gives managers a complete picture of investment activity across their portfolios, helping them anticipate and avoid high-risk situations.
For example, dashboards can improve asset management by offering every real estate practitioner - from property and maintenance managers to top executives - an unprecedented degree of operational visibility. Likewise, automation of accounting processes eliminates errors common to outdated accounting practices, such as multiple spreadsheets and manual data entry, and provides accurate, up-to-date information for reliable risk analysis.
Seek versatility
Upgrades may need to address remote users, multiple real estate market segments, differing investment types, a diverse array of clients, different sets of accounting rules, multinational portfolios, and other complex requirements of business. Can the software scale to meet a company's changing needs? How flexible is the software in terms of ability to configure or customize?
Ensure regulatory vigilance
First-rate real estate software systems should allow easy monitoring of financial data and review of accounting practices at the transaction level. Always important, this capability has assumed new urgency with regulatory requirements and increased scrutiny of corporate practices. The most advanced software solutions on the market take these factors into account and track every aspect of even the most complex transactions.
Weigh options for hosting
Is in-house IT staff able to manage complex new software? If not, consider choosing a supplier that offers application-hosting services. Many client companies consider this choice much more cost-effective than maintaining their own IT network infrastructure and handling licensing, disaster recovery, network security, and so on.
Consider external stakeholders
Which solutions enable the best reporting and services to tenants, suppliers and investors? Competitive edge is derived from more than best operating practices. Other key factors include the ability to provide online access for tenant rent payment and ledgers, electronic payables and investor reporting, as well as impressive, dynamic marketing presentation on a company's web site for availability, online application and leasing.
Choosing the right solution can drive solid business performance, service and transparency; it will also shape the perception of a company among clients and prospects as a technologically advanced, reliable, and efficient business. The more dynamic the new system, the more it may be appreciated by its users and stakeholders, both internally and externally.
Prepare employees, brief clients
It's important to remember that rolling out a new enterprise-level software requires time and resources commensurate with the size and scope of the business. Users might also be comfortable with and loyal to the old system, making change management essential for a smooth adoption.
Educate them about the advantages of a new system and help them understand how it will improve business and enhance their daily routine. Alerting stakeholders about the new system and how it will create a better experience for them will also build enthusiasm for the project.
Richard Malpica, Vice President and General Manager, Eastern Region with Yardi Systems, a provider of investment, asset and property management software. For more information, see the web site at www.yardi.com.
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