The implementation of new technology in commercial real estate brokerages is spurring the need for organizations to elevate the roles of key members of leadership, specifically the Chief Technology Officer. They are responsible for the strategic technical direction of the company as well as playing a crucial role in improving the brokerage’s overall business goals.
Let’s look at three reasons why your brokerage needs a CTO.
Tech is Transitioning to the Center of Commercial Real Estate
A decade ago, CTOs spent a lot of their time both implementing and managing hardware, phone systems and ERP financial systems. These CTOs now focus on lowering costs by utilizing automation, transitioning data processes into the cloud and assembling a customized tech stack to enable their professionals to make the wisest business decisions. Experts at Realcomm predict that IT will eventually touch every single operation inside of a real estate organization. This calls for a CTO to be in place who can manage the success of these technologies.
CRE Firms are Leveraging Tech Thought Leaders as CTOs
Firms including CBRE, Blackstone, Vornado and Boston Properties have in-house CTOs that serve as an integral part of their leadership teams. IT departments can add great value to a CRE company by enabling real-time access to NOI and other crucial data points. The role of the CTO is to implement new technology and ensure its success. It is important for the CTO to integrate new technology that are rising in popularity into the current stack of tech in way that is rational, with solid connection points between the functions. These connection points establish great opportunities for data and workflow.
CTOs Sharpen & Maintain a Competitive Edge
The bar to maintain the best technology continues to rise as competitors trim inefficiencies with tech on the new cutting edge. Without a CTO being able to proactively guide your company through key changes, competitiveness will be out of reach. Computer technology has raised the bar in the commercial real estate industry and you need the knowledge and expertise a CTO can offer to navigate your firm to success.
The Evolution of the Role of a CTO Won’t Simmer Any Time Soon
The CTO is an integral member of the C suite in commercial real estate firms. CEOs and CFOs rely on their CTO to provide alternative solutions that can boost revenue and growth opportunities using technology. The role of the CTO is also transforming into holding a more operational role in the firm. CTOs are transitioning into COOs and CMOs because they have the knowledge, expertise and understanding of how to use the technology allowing them to seamlessly integrate into non-traditional technology roles because of the increasing vitality of technology in the commercial real estate industry.
A good CTO will understand what it takes to marry business objectives with technical solutions and use this technology to propel innovation and prevent disruption in the commercial real estate industry. Technology can provide better client services, offer better products and help professionals and CRE firms achieve better efficiency.