In today’s digital age, commercial real estate (CRE) firms have to manage vast amounts of data, which only continues to grow in both quantity and complexity. With so much CRE portfolio data to sift through, it has become even more challenging to capture the timely and meaningful insights you need to make impactful decisions. Business Intelligence (BI) tools are quickly becoming the go-to solution to overcome these data hurdles. However, many CRE firms find themselves faced with a decision: build or buy? Continue reading to learn the questions and considerations you should think about before deciding to build or buy a BI tool.
Asking the Right Questions
Before you consider building or buying a BI tool, let’s ask some clarifying questions to help align your business intelligence strategy with your overarching business goals.
1. Do you want to be in the business of CRE and technology?
As a CRE firm, your primary focus lies in managing properties, maximizing returns, and serving clients. However, being data- and technology-driven doesn’t mean you have to veer away from your core business. While some organizations may desire proprietary technology, it’s essential to assess whether you want to be in the business of both CRE and technology development.
2. Do you have a successful track record of adopting new tools?
If your firm’s track record with tool adoption is inconsistent, opting for an off-the-shelf BI solution might be a wise choice. It serves as a stepping stone, allowing you to ensure that the tool is being utilized effectively and adding tangible value to your operations. By starting with a pre-built solution, you can establish a foundation for your BI strategy and gradually refine it over time, ensuring that it aligns closely with your evolving business needs.
3. Do you have a dedicated “mathematician” in your organization?
Building a custom BI tool is a significant undertaking that goes beyond initial development. It requires continuous maintenance, updates, and enhancements to keep up with business needs and technological advancements. This ongoing process demands a high level of expertise in data analysis, software development, and domain-specific knowledge, particularly in areas like key performance indicators (KPIs), financial modeling, and forecasting. Without a dedicated team of experts, building a custom BI tool can be daunting and resource-intensive.
Ultimately, the decision between building a custom BI tool internally or outsourcing to external providers depends on various factors, including your firm’s technical capabilities, budget constraints, and timeline. By carefully weighing these considerations, you can determine the most practical and cost-effective approach to fulfilling your BI objectives while maximizing the value of your investment.
Let’s explore the differences between building and buying technology to provide you with the insights needed to make a well-informed choice.
What You’ll Need When Building a BI Tool
Assembling the Team
Building a custom BI tool requires a team that typically consists of a frontend developer, backend developer, and data scientist. While it’s possible to find a “unicorn” who possesses all three skill sets, additional personnel may be necessary depending on factors such as project complexity and timeframe. Additionally, implementing and maintaining a custom BI tool requires at least one dedicated subject-matter expert who can train end users and provide ongoing support across the organization.
Time to Implement
The timeframe for building a custom BI tool typically ranges from 9 months to 1.5 years, or longer. This duration can vary based on project intricacies, business requirements, and level of involvement from internal stakeholders like the C-suite and asset managers.
Data Management
Managing data encompasses handling various aspects such as data sources, storage, models, and quality. Continuous assessment and management are crucial – especially when integrating new data sources – to ensure data accuracy and integrity throughout the system.
What to Look for When Buying a BI Tool
Quick Implementation
Look for a BI solution with a seamless implementation process, ensuring swift deployment without disrupting your business operations. With a quick and easy implementation process, you can start reaping the benefits sooner, such as gaining actionable insights into your data, making informed decisions, and improving overall efficiency.
Ongoing Training & Support
In your search for a BI tool, prioritize one that offers access to ongoing training and support. These types of resources and assistance ensure that the BI tool is effectively utilized and help to identify additional challenges the technology can help your firm overcome. Selecting a pre-built BI tool eliminates the need for assembling dedicated teams or engaging costly consultants. This approach reduces overhead costs, as well as enables you to achieve faster time-to-value and optimize budget allocation.
Data Management
Ensure your chosen BI software provides robust support for data ingestion and storage. This guarantees the accuracy and timeliness of data, while also promptly addressing any discrepancies or challenges that may arise.
Making the Final Decision
Whether you choose to build or buy, the goal remains the same: unlocking the full potential of your CRE data to drive smarter, faster decisions. By aligning your choice with your firm’s capabilities, resources, and strategic vision, you set the stage for long-term success. With the right BI solution in place, you’ll be better equipped to navigate complexity, enhance performance, and deliver lasting value to your stakeholders.
Learn more about Defease With Ease | Thirty Capital’s proprietary solution, Lobby CRE. Contact us today and schedule your demo.
