Realty On The Real Tech Way
Investing in systems and processes helps businesses to stay competitive, especially when they face ever increasing competition from local and international players.
The real estate industry is highly fragmented and there are new players entering this sector every day. Differentiation via professionalism is key to building a sustainable business model. The secret for strong growth within the real estate market is to invest in systems and processes. As organisations grow, efficient management becomes crucial. The way to success is adequate planning, timely delivery and better efficiencies towards reducing wastages of material.
Enterprise Resource Planning (ERP) software like SAP, PeopleSoft, Navision, etc., is increasingly being deployed to streamline the data and reporting needs of growing companies. More and more management teams and boards support their gut and intuition with solid data. Marvel Realtors invested in SAP in the year 2008 and has since then integrated its knowledge base across all department and sites. Marvel Realtors is among the top one per cent companies with respect to the process maturity and integration within the real estate industry. This process re-engineering and process-centric approach has enabled the company to integrate the real estate lifecycle ‘Design to Deliver’. It enables us to offer a quality product at extremely competitive prices. Additionally, we have an extremely customer focused approach across both pre and post sales processes. All of these practices translate into enhanced customer satisfaction and thus, growth via referrals and positive word of mouth, contributing to 35 per cent of our current sales.
As business and competition grows, Customer Relationship Management (CRM) has become critical. Director, Kumar Urban Development Ltd (KUL), explains, We have an ERP along with a web-based CRM system, which helps the business function smoothly. All the operations like sales, marketing, CRM, accounting, finance, billing, contracts, purchase and HR are plugged into these systems. Paperwork is minimal and all the data is protected within the systems. This goes a long way in protecting the company from attrition, pilferage and sabotage. We also have ISO certifications for the processes set up for all the departments.
Properly implemented and managed ERP systems can improve a company’s competitive position tremendously by driving business efficiency and not leaving decisions to gut feel, which was the traditional way of running a company in this industry. Since most of the projects are heavily financed, a builder is always on foot to collect the money he invests into the project. SAP applications have eliminated the checking of keyed data and manual re-work. Data quality has improved, with no conflicting information sources or gaps in real estate data, enabling easier audit and compliance with financial regulations.
At Godrej Properties, we have implemented SAP way back in 2009; we have not just installed an ERP system but also implemented business analytics to help us make faster and effective decisions. We have implemented and rolled out a cloud based CRM solution also. HR has been implemented as part of group applications and is also a leading cloud based HRMS system,” says vice-president and head – corporate IT, Godrej Industries Ltd.
According to Deputy managing director, Ishwar Parmar Group, the company has specially allocated resources for researching new technologies that can add value to its business. When implementing new software, we ensure total compatibility with our existing solution. The degree of customisation offered and the user-friendliness is also taken into account before integrating the new technology.
Our adoption of tech systems has proven to be highly beneficial: increased productivity, optimum allocation, strategic usage of resources and a more responsive customer service is making its presence felt via a healthier bottomline.
Although construction is considered an unorganised industry, it functions in a constructive manner. The traditional real estate development company is very much dependent on human resources. However, with the introduction of new technology, this dependency can be reduced to an extent. Although the industry is heavily labour-centric, we can leverage technology to plan and allocate labour so as to maximise productivity. It also helps reduce the burden of non-performing resources that would otherwise have slipped under the radar. Features like Just-in-Time (JIT) sourcing help us reduce warehousing and inventory cost. It all adds up to a tighter organisation and a more progressive management philosophy.
Kolte Patil Developers follows a clear organisation chart and authority matrix, wherein all the processes are defined. Each of these processes are incorporated in our ERP that ensures authentic data and enhances faster decision-making. We also use the Management Information System (MIS) to integrate all individual modules like the sales, marketing, finance, material procurement, etc. This integration makes information sharing more easy and transparent, giving an easy access to the centralised pool of information,” says group CEO, Kolte Patil Developers Limited.
Kolte Patil has been running the CRM system for almost a year now. The system is aimed at better customer lead management and helps capture and nurture leads from various sources like online advertising and promotion, direct walk-ins at the site and other marketing touchpoints. “This makes our marketing campaigns more ROI-driven, helping us study the effectiveness of a marketing campaign. All this happens through lead trackers and analytics. The company also uses ‘Cloud Telephony’, through which each and every sales call is recorded into the system and all this data and enquiries are then pushed into the CRM, which is a common platform allowing easy flow of information across the sales teams within the organisation.
Manpower too is being upgraded or brought in from IPCs and other professional streams to inculcate a higher degree of professionalism in the sector. HR, employee care and culture building have become a priority for most developers. We have recruited talent from top-notch companies in the IT and automobile sectors. Our new joinees comprise graduates from institutes like IIM-A and the best management schools. Our engineers come from the IITs and government engineering colleges.
Developers are also implementing HR processes. For employees, we have implemented a five-year HR process ‘Gera getting better’, wherein we have aligned the job roles and KRAs. We have also initiated an award amongst employees to encourage them to raise their standard of performance and benchmark against their own score.
The real estate sector has transformed from being unorganised to a dynamic and organised sector over the past decade. The use of best practices like ERP and CRM has ensured that the processes are in place. Many real estate payers are now listed entities (and more players are considering the option) and have to statutorily publish their financial statements. These companies need to keep their investors properly informed about their financial health, project updates, business plans, etc. Given the quantum, accuracy and transparency of disclosures required, ERP implementations in real estate companies are gaining importance by the day.
BELOW ARE SOME OF THE BENEFITS OF INTRODUCING SYSTEMS AND PROCEDURES:
- Companies will be able to improve productivity once they follow tested and efficient procedures.
- Overall wastage and pollution will be controlled as there will be synergy in the way different functions in the company work.
- It will help organisations to create a pool of information, which will improve their understanding about business, technology and customers.
- Research and development in the sector will be encouraged as companies will not have to spend time managing common, day to day operational breakdowns.
- Internal and external transparency will improve and so will trust among stakeholders and investors.
Category : Flatons Advisors Blog