THE Internet of Things (IoT) is poised to shake up the property management sector in Malaysia, says Zerin Properties managing director and founder Previndran Singhe.
He said IoT’s impact on property management alone is expected to be very big ― Gartner estimates more than US$1 billion (RM4.1 billion) spending in the United States, and that’s only for commercial assets.
“Zerin Properties has always taken pride in being ahead of the technology curve in the property industry... from our award-winning websites to our award-winning apps and now to embracing the IoT. Still, IoT will not necessarily lead to overnight success for property management players in Malaysia and other members of the sector. I think we are far from it,” he told NST Property.
Previndran said in Malaysia where most property management professionals are still struggling with a mix of outdated legacy systems, lagging technology and unconnected assets, it will take a while for the IoT to take full effect.
“Does that mean it’s not worth the investment? Of course, not. What it means is that Malaysian property managers and management companies will face challenges as they prepare for this foreseeable dive into the property management world of the IoT.”
Some of the challenges include:
IMPLEMENTATION ISSUES BETWEEN THOUGHT LEADERS AND OPERATIONS
With the advent of any technology disruptor, companies must deal wi th changing management issues. Thought leaders and operational management teams in a company will sometimes be at conflict when it comes to implementing IoT devices for properties.
Many leaders may want to purchase the latest technology as soon as it hits the market, but operational management teams may not want to implement it due to lack of knowledge, or spend money in it.
As IoT devices have a short shelf life, this could be an issue for operational teams who are accustomed to purchasing technologies that last for years if not decades. As such, one will have to find the balance between obtaining a new technology and leveraging existing ones.
The choice would mostly depend on whether an IoT device could solve problems and make a bigger impact on employees and processes.
Previndran cited a device that measures water quality in condominium swimming pools as an example.
He said in today’s environment, suppliers would insist on cleaning the pool 12 times a month on a fixed fee, even though the quality of their service cannot be determined prior to cleaning.
“We have seen the number (and cost) drop by half by implementing IoT devices in the pool and this benefits everyone in the service chain.
But what would happen in a year or so when new and potentially better devices or software are available?
“As always a cost-benefit analysis with the help of both leadership and operational management teams to determine if (and when) a new upgrade would make an impact that’s worth the investment,” he said.
SKILLS
Previndran said: “In many cases in Malaysia, we are managing a mix pool of colleagues―baby boomers about to complete their journey in the industry and the millennials who have just entered it. All would have their own approach and learning curve when it comes to preparing for the complex processes ofthe IoT ― and their willingness to embrace it.
“The IoT is meant to simplify and make property management more efficient. But adopting it also means abandoning quality control processes, by trusting sensors and machines to determine when other machines need scheduled maintenance, and using data to make decisions that used to be made by people in the management office. It’s a complete change from the way business has been done in the past in Malaysia.”
He said using IoT vendors to conduct training and continuous education would prove that employees are just as important now as they were before the new technology was implemented.
“Leadership can help change mindsets by reassuring employees that they are not obsolete in the connected property management service chain.”
DATA, DATA AND DATA.
Previndran said one of the biggest strengths of IoT is indisputably the exponentially larger amount of data it makes available.
These data contain valuable pieces of information for the management of a building.
However, simply collating them is insufficient. Raw data collected from sensors throughout the building may be incomplete, insufficient or inaccurate. All these disparate data have to be properly accounted for and managed if a property management player expects to make fast and well-informed decisions, fix potential issues and capitalise on the data’s full value.
Accomplishing this requires much more than basic data access. It requires using essential data management utilities to handle all information that is part of property management process.
“Only when this happens will connected property management players be able to rely on sophisticated analytics for insights that help them make better decisions, plus giving them a much-needed competitive edge.
Still, very few local leaders feel they have a clear vision on how to implement the IoT on a large scale across the property management process. Connected leaders need to ask: Do they have the process ― and the right people and technology ― in place for using all of that data? Does their team know the right questions to ask ― and the right trends to look for in all the new sources of real-time data?”
BALANCING ACT FOR PROPERTY MANAGERS
Previndran said digital revolution has put Malaysia’s property management segment in exciting times.
“With patience and passion to face the immediate challenges, we are assured to realise the many benefits of IoT in property management. There is very little to lose and all to gain for those that jump in head first to ensure competitive advantage.
“Take See Hoy Chan (Bhd), which has one of the biggest in-house FM (facilities management) services in the country, for example. It has added sensors to its landscape irrigation that transmit vital information ― such as rain fall and moisture content ― to a central hub. A team of employees can now manage issues as soon as they arise, regardless of the parks or landscaped areas’ location. As a result, the parks and landscaped areas require less manual inspection and are thriving with consistently correct levels of water,” he said.
Previndran said many leaders still have to grapple with a major skill gap among their colleagues, in terms of IoT implementation, adding that security will remain a top concern in connecting different parts of a company’s infrastructure to the digital world.