Data, Tech and Industry Changes
By, Josie Nash at Infabode – The Home of Real Estate Information
Big data… is a big topic to try and discuss in one blog post. But one interesting way of looking at it is to ask the question- how are companies using data to enhance their strategies? At Infabode we believe the best companies are no longer just sitting on their data- they are now analysing it to drive results.
“In a world where this data is becoming more and more accessible, the value added will increasingly be the interpretation and subsequent action by a company rather than the data set itself. Those that can analyse and action decisions based on big data will, in our opinion, be the valuable companies of the future.”
We are seeing an increasing number of companies positioning themselves as experts in data analysis, whilst the sharing or swapping of data continues to increase.
We look at the data life cycle in 3 phases:
- Collection of data (we know it is valuable but we're not sure how best to use it).
2. Sharing, Selling or Protection (we're either a company that will make our data accessible or we'll hold proprietary data as a value add)
3. Analysis and interpretation (value add becomes what you do with public and proprietary data you have access to).
Initially there was a lack of data, the industry was based largely on relationships and reputations. Companies then realised that they could collect a lot of information/data, for internal purposes, on their business transactions and processes. At this stage platforms started becoming available which allowed these companies to share this data, whether for marketing purposes (such as ) or to sell or swap this data (such as ).
We're probably now moving much deeper into stage three- where companies are increasingly interested in analysing data to make better informed decisions.
It's worth pointing out that although data is increasingly accessible to smaller organisations and technology startups, the larger real estate companies are still likely to keep proprietary data sets to themselves and offer only aggregated analysis.
Who knows what stage four and the future will look like for big data but I think we'll see an increasing number of decisions made because of data and technology. Although, it is worth pointing out that this doesn't mean that the real estate industry's traditional establishment and the 'who you know' culture is under any immediate threat because, as we hear repeatedly discussed at property events, there is still going to be the need for human interaction with most real estate transactions.
With an increasing number of tech companies offering solutions to help real estate professionals better collect or analyse data, it was interesting to hear at MIPIM how companies are trying to navigate the mass of technologies that are available. In many cases companies are now employing teams of people to help analyse which tech offerings are relevant to them, how to use the tech, and when to use it. First mover advantage for tech companies is certainly going to prove important as they all fight to pitch these businesses.
It's fair to say that big data is creating drastic changes, from hiring strategies through to decision making processes. We may be some way off from real estate decisions being made without human input but we're not far from the extinction of decisions without supporting data.