Businesses are Spending on Digital Transformation
You would think most companies would avoid expenditures and improvements during a pandemic. Yet a recent survey shows business owners are pressing ahead with business technology transformation.
It appears they view digital technologies as a must do progression to keep themselves in business and perhaps to gain an insurmountable advantage. In the real estate, property management, and home construction industries companies have been reluctant to integrate digital technology.
The Covid 19 crisis forced property management companies to overcome their inertia regarding tech solutions and platforms. Clear winners will appear in many markets in the next 3 years because the ROI, customer service, efficiency, and brand power will make them preferred providers.
The Trend to Digital Technology Adoption
A survey conducted by IFS Research revealed that 52% of companies stated they will increase their spending on digital transformation. The study suggests companies are using the pandemic period to shift expenditures to digital technology improvements and changes.
The Study was entitled, Digital Transformation Investment in 2020 and Beyond: Factors in the Success or Failure of Technology Investments in the Post Pandemic Era.
The survey indicated that companies challenged by the shutdown/recession were 20% more likely to spend more on digital technology. More than 3,000 executives from 6 regions across the globe were polled about their business’s plans to invest in digital transformation technologies in automation, artificial intelligence, Internet of Things, and more.
The study also found that 75% of respondents in the construction industry have plans to invest in technology in 2020. Companies in information technology (58%) and manufacturing (55%) also report major intent.
“Examining the specific industries, it is clear that the construction industry, which has historically been a laggard when it comes to enabling technology, is investing heavily to catch up with more digitally mature sectors such as manufacturing,” said IFS Industries Senior Vice President, Antony Bourne.
The study lends support to the idea that those who adopt new technology to streamline and improve their value propositions and business operations are more likely to rise out of the recession on a solid footing.
Rental Property Industry Next
The shutdown and pandemic have hit the rental industry hard. Improvements in business processes now take on a life or death urgency that property managers are struggling with.
Landlords and property managers are adopting property management software out of necessity to improve rent payment success, improve tenant services, cut operational costs, lower turnover, reduce face to face interactions, and streamline their daily workloads.
Property management companies in particular are seeing reduced budgets and more demand for efficient services from property owners who need to transform how they manage their rental investment properties.
Automation and Digital Services on the Rise
ManageCasa, a US-based property management software company has seen big changes in site traffic during the pandemic. Renters are more concerned about rent prices and being able to keep paying rent as business reopenings are persistently thwarted by Covid 19 outbreaks in many US states.
Rental industry professionals are increasingly concerned with property management trends and solutions that might help them get through this difficult period and create an operational advantage from 2021 and beyond.
The property management industry has been a laggard in proptech adoption, so the pandemic could accelerate it into much better profitability in the next 5 years. Those landlords and property managers who can’t or won’t adopt digital property management solutions won’t be able to scale up to be competitive or profitable.
Trends indicate more demand for rental housing, yet prices have been on a downward trend while vacancies have risen in some cities. Learn more about why digital rental property solutions are crucial to US (and Australian and UK) property management services firms.
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