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The commercial real estate industry is undergoing a digital transformation, and project management is at the forefront of this change. Technology is rapidly changing the way project managers approach their work, creating new opportunities and challenges that must be addressed to stay competitive in the market.
Technology has become an essential component of project management in commercial real estate. It enables project managers to streamline processes, improve communication, and increase efficiency. From project management software to building information modelling, technology has revolutionized the way commercial real estate projects are managed.
One of the biggest benefits of technology in project management is the ability to improve communication. Collaboration tools such as video conferencing, cloud-based project management software, and mobile apps make it easier for project managers to communicate with stakeholders in real-time, regardless of their location. According to a report by McKinsey, companies that prioritize effective communication through digital tools see a 20-30% increase in productivity.
Another advantage of technology in project management is the ability to streamline processes. Project management software can help project managers to create and track project timelines, budgets, and progress. This allows for better resource allocation, increased productivity, and improved project outcomes. In fact, a study by the Project Management Institute found that organizations that use project management software have a 77% higher success rate than those that do not.
However, technology also presents some challenges to project managers in commercial real estate. One of the biggest challenges is managing the sheer amount of data generated by technology. The digitization of commercial real estate has led to an explosion of data, which can be overwhelming for project managers to manage. In fact, a survey by PwC found that 80% of companies in the real estate industry are struggling to manage the volume of data generated by their operations.
Another challenge is the need for specialized skills. Project managers need to be proficient in a range of digital tools, including project management software, building information modelling software, and other specialized tools. According to a survey by the International Facility Management Association, only 40% of facility managers feel that their team has the necessary skills to manage digital technologies effectively.
Despite these challenges, the benefits of technology in project management far outweigh the drawbacks. In fact, the global construction technology market is expected to grow at a compound annual growth rate of 16.7%from 2020 to 2027, according to a report by Research and Markets.
Technology has fundamentally changed the way project management is approached in commercial real estate. From improved communication to streamlined processes, technology has created new opportunities for project managers to improve project outcomes. However, managing the sheer amount of data generated by technology and the need for specialized skills can present challenges that must be addressed to stay competitive in the market. By leveraging the benefits of technology while addressing these challenges, project managers can ensure successful project outcomes and drive business growth.
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