McKinsey offers a wake-up call for connected building hardware and software players. Evolve or die.
While connectivity represents a substantial opportunity for both incumbent infrastructure companies and new tech-focused entrants, they need to act quickly. Many players are already attempting to establish themselves as leaders in the connected building space, so competitors that delay may never regain their lost ground.
Aside from giving the reader a good understanding of where connected buildings are headed, this McKinsey paper challenges software, hardware, building owners/occupants, and service providers to think about what role they will play in the evolving value chain.
Among other things it predicts:
- As building technologies increasingly focus on human outcomes over efficiency and cost savings, making the business case and measuring results will become more difficult.
- The security/privacy challenge will multiply as hardware and software solutions increasingly talk to one another.
- The value proposition will vary greatly across owners/occupants. This will force vendors to offer a menu of choices and step-wise implementation options.
- The C-suite will increasingly become the sales target as only they will be in a position to appreciate the value of holistic solutions.
- Successful building hardware and software providers will buy, build, or partner with other value chain players to offer end-to-end solutions.
The paper ends with recommendations for what industry players should be doing, right now, to ensure their survival in the coming years.
Join me at the RICS Summit LA on June 19 to talk about the future Real Estate and the Built Environment
13 May 2019 - scoops
03 May 2019 - scoops