The Present – Why it’s important to define Current State
By Paul Kevener
The company has invested in an ERP Platform, a Business Intelligence platform, and undertaken Business Process reengineering projects as the organization grew from $300m Assets under Management to over $3bn.
They utilize the cloud and have 200 properties all managed by 3rd Party Property Managers. They have one standardized platform for all the Properties and Funds, with the independent Property Managers all using this system as the primary system of record. Property Financial and non-financial reporting is done using a combination of the ERP within the system and the BI platform. The Fund Accounting is done within the same system using complex rules and configurations for performing the consolidation and providing advanced reporting.
This approach provides a strong level of control of the real estate investments whilst keeping costs low – this has enabled significant growth to be achieved while maintaining oversight and understanding of the entire portfolio. This has enabled reporting that is produced quicker, with less scope for error and above the level of other competitors.
There has been significant standardization of procedures such as Accounts Payable across the organization – whereas before each 3rd Party Property Manager would have their own process which was manually intensive, open to risk of fraud or invoices not being paid. The standardized process has all invoices being scanned into the system and entering a controlled workflow procedure within the system. All Invoices are then tracked for payment, and copies attached to the payable and status of the invoice tracked.
The organization has a high level of standardization, automation and adoption of the cloud for its Information Systems strategy but is not utilizing any AI technology. The organization has been able to leverage this technology to manage growth and maintain control of the portfolio, but there is significant scope to further refine and improve efficiencies and add value through the implementation of an AI Business Strategy. The organization utilizes the ERP system to track investments from the lowest level (the Property) up to the Fund level and eventually the Investor.
The managers in the current environment have access to consistent and clear information across the portfolio at the click of a button. Costs are kept low due to the high level of automation in areas such as Accounts Payable and Consolidations, but the scope for utilizing AI technologies can further improve the organizations processes.