Digitization: Laggards are punished
Digitalization is changing the real estate and construction industry. A study by the Lucerne University of Applied Sciences and Arts shows that companies that sleep through the challenges are at existential risk. Smaller and nationally active companies in particular have some catching up to do. The study also lists the key factors for operating successfully in digital competition.
The "Digitalization Barometer 2016" makes one thing clear: 72 percent of the companies surveyed for the new study by the IFZ Institute of the Lucerne University of Applied Sciences and Arts have recognized the importance of digitalization and anchored corresponding goals in their corporate strategy. However, the quality of implementation varies greatly. Construction companies and architecture firms, for example, are often poorly positioned with regard to digitization, although they tend to see themselves as pioneers.
"Through the daily use of digital systems such as 3-D modeling or CAD systems, architecture firms in particular seem to classify themselves as innovative with regard to the prevailing digitalization. But they still recognize too little that digitization will not only change planning processes, but also customer relationships," says study leader Markus Schmidiger.
Digital Leaders set themselves apart
97 percent of all companies surveyed expect the customer environment to change as a result of the opportunities offered by online channels. Customers are comparing more and have become more price-sensitive. But while the real estate industry's clientele has emancipated itself in recent years thanks to digitization, companies are lagging behind in the area of customer analytics.
"44 percent of companies do not know how their customers move around the Internet today: whether they became aware of the offer via an online portal, whether they access the website on mobile or stationary devices, or what information they actually use," says Schmidiger. "This means companies lack the basics to optimize their products, services and sales channels."
By contrast, digital leaders - i.e., companies that are actively addressing digitization and implementing appropriate measures - have tapped into new industries, target groups, and regions in recent years, increasing market share as well as revenues and profitability.
"Those who miss the train will perish"
The analysis shows that innovators differ from laggards in clearly defined respects: Digital Leaders are increasingly dedicated to data analysis and know their customers and the market environment. They know with whom they really earn money and can therefore align their offerings and information channels accordingly and prepare better for developments.
While almost 60 percent of the digital leaders were able to increase revenue per customer and individual order as well as overall, the figure for the laggards is only just under 22 percent. For Schmidiger, this indicates that the gap will widen even further in the future. "Digitization is worthwhile. And it is becoming a question of survival: Those who miss the boat will go under." (bw)
