Innovation Rules

Insight from ICSC Whistler

By Joel Nelson on Mar 15, 2018 in News

Technological shifts are revolutionizing business.  Few other industries embody this reality more completely than the office and retail sectors, according to Heather Brady, national director of sales for Yardi Canada.  Brady gave a presentation about how industrial, office and retail companies can use innovative technologies to improve decision-making at the recent International Council of Shopping Centers (ICSC) conference in Whistler, British Columbia.

Brady’s presentation, “Embracing the Future through Technology and Business Transformation,” focused on the value innovative technologies can deliver for real estate companies seeking to improve decision-making and enhance competitiveness.  Examples include automated solutions for deal making, customer relationship management, energy consumption controls and business intelligence.

Brady noted that growth in shared workspaces and flexible work schedules epitomizes office innovation today.  Full-time and part-time freelancers, independent contractors and on-demand workers are expected to account for up to 45% of Canada’s workforce by 2020.  “This trend will increase demand for shared workspaces, which in turn will drive an increase in the number of tenants and the length of leases.  The technology needed to manage shared workspaces will in turn become increasingly important,” she said.

Meanwhile, e-commerce has penetrated 65% of Canada’s retail economy, led by books, movies, music, games, clothing and consumer electronics.  In 2013, e-commerce was responsible for 4.5% of total Canadian retail sales; the forecast for this year is 8%.  Around the world, the longstanding model of a mall anchored by a big-box retailer is no longer sufficient to draw foot traffic.

“Bricks and mortar aren’t going away, but visiting a mall is starting to encompass more than merely shopping.  Retail is transforming into an integrated, multichannel customer experience, including a strong digital presence and warehouses to support demand,” Brady said. “Also retailers are making their space “entertainment centers” featuring restaurants, clubs, movie theatres, high-end grocery stores, gyms, spas, play spaces for children and other attractions.” She cited Amazon as further evidence of retail’s evolution.  After revolutionizing e-commerce, Amazon now stands poised to disrupt the grocery business with its Amazon Go checkout-free shopping app.

The technology disruption that enables management of such a multifaceted operation from a single platform is happening now, Brady told her audience, “so prepare yourself by educating yourself, making wise technology investments and learning more about the tech world and products that are available.” Business-wide technology platforms that give industrial, office and retail managers’ instant access to sales, lease, prospect and other data are on the market now, she added.  Merchants are also keeping pace with a mobile-enabled consumer base by adopting mobile payment and shopping capabilities.

With the adoption of any technology, change management does play a significant role in transforming operations and the mind set of staff.   “An effective method of dealing with change management is phasing automation in one step at a time and taking time to become comfortable with it,” she advised.

Be it property managers, tenants or the end consumer, technology is very quickly establishing itself as a key element in our lifestyle. By being proactive and embracing technology and change, you are setting yourself and your business up for success in this data rich, tech-savvy, mobile future.

ICSC comprises more than 70,000 retail real estate industry members around the world. Yardi hosted a booth in the exhibition hall along with sponsoring Brady’s session.