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Transitioning to iFM has become more than a strategic move for business leaders. It is a necessity. The technology- and data-enabled shift promises efficiency and sustainability. It also involves a “demand response” approach, which prioritizes the improvement of workplace experiences by optimizing the operations of the facility for the benefit of its occupants.
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At its core, iFM is about leveraging technology and data to make informed, proactive decisions about a building or real estate portfolio’s operations. It involves the integration of various systems, such as HVAC, lighting, security and occupancy sensors, into a centralized platform. This allows for real-time monitoring, analysis and control, enabling facilities managers to respond swiftly to changing conditions and optimize resource allocation.
Additionally, iFM incorporates predictive analytics, artificial intelligence (AI)-driven insights and automation to enhance operational efficiency and reduce costs. This same data and technology are now required to monitor, report and comply with recent regulatory requirements around sustainability and environmental, social and governance (ESG) programs.
Explore the tabs below to learn more about the differences between traditional facilities management (FM) and iFM.
|
Traditional FM |
iFM |
|---|---|
|
Manual |
Automated |
|
Paper-based systems: documentation and record-keeping often done manually on paper |
Continuous monitoring of facilities in real time, providing immediate insights into performance and potential issues |
|
Minimal automation, routine tasks that are performed manually |
Remote monitoring and management capabilities for off-site control and decision-making |
|
Limited use of technology for monitoring and contro |
|
|
Traditional FM |
iFM |
|---|---|
|
Isolated stand-alone systems |
Automation of processes for improved operational efficiency |
|
Systems and components often operating independently without much integration |
Integration of various systems for a holistic approach |
|
Lack of centralized data and communication |
Decision-making based on comprehensive data analytics and insights |
|
Decisions ad hoc and/or demand response |
|
|
Traditional FM |
iFM |
|---|---|
|
Reactive |
Predictive analytics and machine learning to anticipate and address maintenance |
|
Repairs and maintenance activities typically carried out in response to issues or breakdowns as they occur |
Proactive identification and resolution of potential issues before they impact operations |
|
Preventive maintenance based on calendar or frequency schedule |
Emphasis on long-term sustainability and performance |
|
Budgets often based on historical data |
|
|
Traditional FM |
iFM |
|---|---|
|
Minimal energy management practices |
Implementation of smart building technologies for energy efficiency, security and occupant comfort |
|
Operating without advanced analytics or optimization |
Integration of sustainable practices, including energy-efficient systems and green building principles |
|
Basic operational excellence model |
|
|
Traditional FM |
iFM |
|---|---|
|
Emphasis on cost reduction and efficiency in the short term |
Focus on enhancing the experience of occupants through technology-enablement and responsive management |
|
Investments in iFM often justified by long-term cost savings and increased efficiency |
|
Recognizing the need for a more streamlined and responsive approach to FM, many companies have embarked on a journey toward digitizing their operations for the benefit of the workplace experience. By integrating innovative technology and advanced analytics, these companies hope to gain real-time insights into their facilities’ performance, enabling them to make data-driven decisions that can lead to increased operational efficiency, sustainability and cost savings.
But even companies with extensive resources and a firm commitment to embracing intelligent facilities have found that the transition can be difficult. The reasons vary, but our research finds that avoiding five common pitfalls is essential to transformation success. Leaders in iFM have succeeded by taking specific actions. Potential pitfalls and key strategies to address them are presented in the table below:
Potential pitfalls |
Key strategies to address the pitfalls |
|---|---|
Immature data assessment
|
Assess current operations and needs
|
Inadequate technology integration
|
Implement technology and data integration
|
Underestimating the benefits of AI
|
Leverage AI
|
Neglecting procurement and IT strategiesIgnoring procurement and information technology (IT) strategies can result in cost overruns, subpar vendor partnerships and inefficiencies in service delivery, as well as hindering the ability to perform accurate analysis for reporting and decision-making:
|
Optimize procurement and IT collaborations
|
Ignoring ESG complianceNeglecting ESG considerations in facility management heightens the risk of mistakes and paints a picture of ineffective operational management:
|
Address ESG considerationsImplement digital systems for record-keeping, compliance tracking and reporting related to ESG standards. Develop an iFM strategy that explicitly addresses ESG requirements and goals. This might involve energy-efficiency measures, waste reduction initiatives, and improving occupant comfort and health. |
Despite the challenges associated with iFM, the transition for most organizations is inevitable, given the evolution of technology and societal demands for efficiency and environmental consciousness. Benefits may include:
iFM empowers facilities managers with a comprehensive view of building performance. Real-time data and analytics enable them to identify inefficiencies, optimize energy usage and proactively address maintenance needs. For example, predictive maintenance algorithms can detect equipment issues before they lead to costly breakdowns.
An intelligently managed facility can translate to a better experience for occupants. It can allow for the customization of environments based on user preferences, ensuring comfort and productivity. For instance, intelligent lighting and climate control systems can adjust settings according to actual occupancy patterns.
By enhancing resource allocation and energy usage, iFM can lead to substantial savings. Furthermore, it aligns with ESG goals by reducing environmental impact. For instance, intelligent building systems can dynamically adjust lighting and HVAC based on occupancy, significantly reducing energy consumption.
iFM provides facilities managers with a wealth of data that can be leveraged for strategic decision-making. It enables trend analysis, performance benchmarking and scenario modeling, allowing for proactive planning and resource allocation.
Intelligent facilities systems can facilitate compliance with regulatory standards and certifications. They provide tools for tracking and reporting on various aspects of building operations, ensuring adherence to industry-specific requirements.
Regardless of the compelling advantages of transitioning, some companies remain hesitant to take the plunge. One key reason is the perceived complexity of the transformation process. The integration of modern technologies and the reconfiguration of existing legacy systems can appear as a formidable task, leading organizations to postpone the move. Additionally, concerns about the initial investment required can be a deterrent, despite the potential for substantial long-term gains in efficiency and cost-effectiveness.
With a wealth of experience and a deep understanding of industry-specific challenges, the EY-Parthenon Corporate Real Estate Consulting team works in close collaboration with organizations of all types and sizes. We start by conducting a thorough assessment of your current operations, pinpointing the pain points and crafting a tailor-made roadmap for implementation. Through experience in technology integration, data analysis and procurement optimization, we help to make the transition seamless, cost-effective and aligned with your organization’s strategic vision.
The journey toward iFM is not just a step forward – it is a leap into a future of enhanced efficiency, substantial cost savings and operational excellence. As industry pioneer Peter Drucker once stated, “Efficiency is doing things right; effectiveness is doing the right things.” Embracing this transition is not just about staying ahead of the curve; it is about future-proofing your operations and ensuring sustained growth in a rapidly changing business landscape.
The views reflected in this article are the views of the author(s) and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.
iFM represents a pivotal shift in how organizations approach the management of their physical spaces. It is not merely a technological upgrade, but a strategic imperative that drives operational excellence, enhances occupant experiences and contributes to overall organizational success. With the right technology, experience and strategic advisors, organizations can unlock the full potential of this innovative approach and position themselves for a future of efficiency, sustainability and resilience.
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