The question of whether technology can effectively reduce costs in facilities management (FM) has sparked discussions and inquiries. Literature reviews have suggested that the integration of smart technology, often associated with the Internet of Things (IoT), can significantly enhance the efficiency, effectiveness, and overall management of facilities across diverse industries, including commercial buildings, healthcare facilities, and manufacturing plants. These advancements in technology offer several ways to improve FM services, such as energy management, maintenance and asset management, security and access control, space utilization, environmental monitoring, and data analytics.

One way technology contributes to cost savings is by automating tasks and optimising resource allocation, leading to reduced expenses in areas such as energy consumption, maintenance, and labour. There are three key questions when one evaluates the potential of technology in FM: 

1. Where are we now?
   Assess the current state of your FM operations and technology utilisation.
2. Are we there yet?
   Examine whether your current technology aligns with your desired goals and objectives.
3. How do we get there?
   Develop a strategy to bridge the gap between your current FM practices and the desired state with advanced technology.

It's important to acknowledge that adopting smart technology presents its own set of challenges, including initial investment costs, cybersecurity concerns, and the need for skilled personnel to manage and maintain these systems. FM services should conduct a thorough evaluation, consider their specific needs, budget constraints, and security requirements before implementing smart technology solutions. When implemented thoughtfully, smart technology can serve as an invaluable asset in enhancing overall facility management.

Applying the product life cycle management model to FM technology raises the question of its current stage. Is FM technology still in its introductory or growth phase? Many argue that it has not reached maturity or decline. Therefore, reaping expected benefits and returns may not yet be fully realized. Moore's law might not have fully manifested to enable the ecosystem to enjoy the continuous development and improvement of FM robotics. Unlike markets such as smartphones or PCs, where technological advancements occur rapidly with the ecosystems where market pull and technology push are aligned, FM technology may progress at a different pace.

In conclusion, the integration of technology in facilities management stands as a pivotal driver in achieving significant cost savings. The utilisation of innovative solutions such as IoT-enabled sensors, and data analytics not only enhances operational efficiency but also empowers proactive decision-making. These advancements streamline processes, reduce downtime, optimise resource allocation, and mitigate potential risks, thereby directly impacting the bottom line. As organizations continue to embrace and leverage technological advancements in facilities management, the potential for sustained cost savings remains a compelling incentive, fostering a more agile, cost-effective, and future-ready environment. In future blogs, we will delve into the emerging roles created by Artificial Intelligence in the FM business.  

Savills offers a comprehensive suite of facilities management and consulting services for built environment with one-stop FM solutions to effectively organise the operations and enhance performance of property assets. 

Contact us today to find out more.