Market Guide for Integrated Workplace Management Systems

Published: 21 August 2018 ID: G00326911

Analyst(s): Carol Rozwell, Achint Aggarwal

Efficient management of corporate facilities saves money and enhances employee effectiveness. This Market Guide will assist application leaders in selecting an integrated workplace management system that meets their requirements.

Key Findings ■ Employees’ work environment has a significant impact on their effectiveness and engagement, yet only 11% of workers report being completely satisfied with their workspace.

■ The use of the Internet of Things (IoT) and artificial intelligence (AI) promises to make the workplace smarter, thereby increasing work efficiency and effectiveness, as well as employee satisfaction.

■ Today’s workforce wants connected workplaces that offer flexibility, mobility and spaces customized for the work they are doing.

Recommendations For application leaders of digital workplace programs who want to improve employee effectiveness by creating a more engaging work environment:

■ Identify and document your current requirements for the immediate issues prompting you to procure an integrated workplace management system (IWMS) platform, but do not neglect the strategic benefits of an integrated approach to facilities management. Work with business leaders to ensure that the strategic benefits are in line with business expectations.

■ Ensure the vendors you are considering provide robust analytics that you can use to make more informed decisions on space, real estate and capital planning. Prioritize the analytics needed by the business after agreeing these with business owners.

■ Verify that any prospective IWMS solution integrates with other important applications — such as HR, financial, and building information modeling (BIM) — that you rely on to run your business. Working with the enterprise architecture team is recommended. ■ Confirm that any vendor you plan to use to manage your real estate lease portfolio offers robust, accurate and automated functionality that is compliant with the changes to the accounting rules. Work with your finance department to ensure this.

Strategic Planning Assumption By 2021, an increase in the number of employees who prefer to work remotely will allow organizations to support 40% more workers in the same amount of space as they use today.

Market Definition This document was revised on 10 September 2018. The document you are viewing is the corrected version. For more information, see the Corrections page on gartner.com.

An integrated workplace management system (IWMS) is a software platform used by IT, facilities management and real estate professionals to manage the end-to-end life cycle of corporate facilities. It helps optimize the use of workplace resources to provide an improved employee experience. It also assists in cost containment by monitoring the real estate portfolio.

Market Description The five core areas of functionality that IWMS platforms offer are:

■ Capital project management — Includes capital planning, design, funding, bidding, procurement, cost and resource management, workflow, construction, project documentation and drawing, scheduling and critical path analysis.

■ Real estate portfolio management — Includes strategic and capital planning, RFP and lease analysis, administration and accounting for the corporate real estate portfolio; financial management and analytics, transaction management, and support for the new accounting standards.

■ Space and facilities management — Includes facilities planning, space management, resource scheduling, visitor management, environmental management, move management, tools for "what if?" scenario planning, and utilization and optimization analytics.

■ Maintenance management — Includes maintenance management for preventive and unplanned/reactive maintenance and warranty management, work order administration, parts and inventory management, vendor management, and building assessment.

Page 2 of 26 Gartner, Inc. | G00326911 ■ Sustainability and energy management — Includes energy optimization management and reporting, waste management, recycling, carbon credit calculation, renewable groundwater supplies, pollution absorption, and certification and compliance.

Figure 1. The Five Core Functionalities of an Integrated Workplace Management System

IWMS = integrated workplace management system

Source: Gartner (August 2018)

Market Direction Application leaders responsible for digital workplace efforts realize that workspace plays a pivotal role in the employee experience. Yet, in the 2017 Gartner Digital Workplace Survey, only 11% of workers reported being completely satisfied with their workspace.1 Not only does well-designed space energize workers and increase productivity, it also sends a message about what an employer thinks of its employees. This has a direct impact on talent acquisition and retention, since space design reflects the organization’s culture and values.2

Increasingly, IT leaders are teaming up with their colleagues in facilities management and real estate to create workspaces that excite and inspire. Historically, the main driver for implementing an IWMS

Gartner, Inc. | G00326911 Page 3 of 26 solution was cost management. By 2021, an increase in the number of employees who prefer to work remotely will allow organizations to support 40% more workers in the same amount of space as they use today. Managing facilities expenses is still an important consideration, but providing a flexible workspace where people actually want to work has increased in importance.

A flexible work environment offers employees the option of working remotely as well as in a corporate facility. When remote workers need to go to a corporate location, they must be able to find the resources that will enable them to be productive. These resources may include a private workspace, a conference room for a meeting, directions and even a parking space (see “Crafting Workspaces That Enhance the Employee Experience”).

IWMS vendors continue to build out their capabilities to take advantage of the IoT and AI in order to support smart buildings and take action on behalf of workers. Virtual personal assistants (VPAs) are mainstream in the consumer space and there are popular services such as Amazon Alexa, Google Now and Apple Siri. VPAs are just starting to appear in corporate real estate. Over the next few years, we expect to see VPAs’ increased usage for task-specific purposes such as meeting room scheduling, maintenance issue reporting and customer service. AI has the potential to make it easier for organizations with global real estate portfolios to manage contracts and lease terms negotiated in multiple languages. Through machine learning, systems can be trained to understand multiple languages, extract key information from contracts and translate it into a language of choice. Machine learning also enables the automated extraction of information from contracts, which makes fiscal reporting easier and more accurate.

Market Analysis In the following sections, we examine several key IWMS market characteristics and trends. The comments, charts and tables are based on the analysis of survey data provided by representative vendors in this market. For more details on the survey, as well as the vendors, refer to the Representative Vendors and Evidence sections.

Geographic Presence

Figure 2 summarizes the regional presence of the IWMS vendors in the survey. Some vendors focus only on specific regions (mainly North America and Western Europe). However, given that many of the vendors in this market are small or midsize businesses, even those that do business in multiple regions may not necessarily have strong regional presence everywhere.

Note: The length of each bar was calculated on the basis of the percentage of revenue that each vendor drives from specific geographies. The data was self-reported and was collected through a questionnaire from each vendor followed by a fact check.

Page 4 of 26 Gartner, Inc. | G00326911 Figure 2. Geographic Presence of Different IWMS Vendors Surveyed

IWMS = integrated workplace management system

Source: Gartner (August 2018)

Pricing Models

There are two common pricing models for IWMS solutions: "Named user subscription per month/ year" for cloud models and "Named/concurrent user perpetual license" for on-premises deployments. However, some vendors do offer pricing based on number of locations and square foot of area for certain modules (see Table 1).

Gartner, Inc. | G00326911 Page 5 of 26 Table 1. Supported Pricing Models by Modules

Facilities and Space Real Estate Portfolio Capital Project Manage- Sustainability and Ener- Vendor Maintenance Management Management Management ment gy Management

Number of facilities, number Per location per month/ Per location per month/ Accruent Per sq. ft. per month/year of work orders, number of Per site, per sq. ft. year year assets

Named and concurrent Named and concurrent Named and concurrent Named and concurrent Named and concurrent user user by application serv- user by application server user by application server user by application server by application server ARCHIBUS er Perpetual and nonperpet- Perpetual and nonperpet- Perpetual and nonperpet- Perpetual and nonperpetual Perpetual and nonper- ual licensing ual licensing ual licensing licensing petual licensing

FM:Sys- Per sq. ft. per month Per sq. ft. per month Per sq. ft. per month Per sq. ft. per month Per sq. ft. per month tems

Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user per- perpetual license perpetual license perpetual license petual license FSI N/A Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year per month/year

Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user per- Named/concurrent user IBM TRIRI- perpetual license perpetual license perpetual license petual license perpetual license GA Named user subscription Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year per month/year per month/year

Named user subscription Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year MCS Solu- per month/year per month/year per month/year Per energy channels Per sq. ft. per month/year tions Named/concurrent user Named/concurrent user Named/concurrent user per- Per month/year Named/concurrent user perpetual license perpetual license petual license Named/concurrent user perpetual license perpetual license

Named/concurrent user Named/concurrent user Named/concurrent user per- Named/concurrent user MRI Soft- Named/concurrent user perpetual license perpetual license petual license perpetual license ware perpetual license Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year per month/year

Page 6 of 26 Gartner, Inc. | G00326911 Facilities and Space Real Estate Portfolio Capital Project Manage- Sustainability and Ener- Vendor Maintenance Management Management Management ment gy Management

Named user subscription per month/year

Named user subscription Named user subscription Named user subscription Named user subscription Named user subscription Nuvolo per month/year per month/year per month/year per month/year per month/year

Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user per- Named/concurrent user perpetual license perpetual license perpetual license petual license perpetual license Planon Named user subscription Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year per month/year per month/year

Number of assets Named/concurrent user Named/concurrent user Named/concurrent user per- perpetual license perpetual license SAP Number of buildings petual license Number of assets Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year

Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user per- Trimble perpetual license, per perpetual license, per mod- perpetual license, per perpetual license, per petual license, per module module ule module module

Named/concurrent user Named/concurrent user Named/concurrent user Named/concurrent user per- Named/concurrent user perpetual license perpetual license perpetual license petual license perpetual license zLink Named user subscription Named user subscription Named user subscription Named user subscription Named user subscription per month/year per month/year per month/year per month/year per month/year

Source: Gartner (August 2018)

Gartner, Inc. | G00326911 Page 7 of 26 Deployment Models There is a growing preference among buyers of IWMS systems for SaaS deployments. Nonetheless, the IWMS market lags other markets in cloud application adoption. A significant portion of the market is still clinging to on-premises implementations. Figure 3 summarizes the delivery models reported by the vendors in the market survey.

Figure 3. Percentage of IWMS Installations per Delivery Model

(n = 12) Survey question: What percentage of your organization’s IWMS deployment has been deployed in each delivery model category? Note: Because the composition of the vendors profiled in the 2018 Market Guide is different from those profiled in the 2017 version, readers should not compare delivery model percentages. IBM did not characterize its delivery model breakdown.

Source: Gartner (August 2018)

Representative Vendors The vendors listed in this Market Guide do not imply an exhaustive list. This section is intended to provide more understanding of the market and its offerings.

Page 8 of 26 Gartner, Inc. | G00326911 Market Introduction Vendors with products that are marketed and sold specifically as IWMS solutions are bought and used primarily for corporate facilities (e.g., office space) and real estate management. The listed vendors have visibility and traction in this market. We summarize data provided by these vendors in Table 2, as well as in short profiles of each vendor.

Gartner, Inc. | G00326911 Page 9 of 26 Table 2. Representative IWMS Vendor Summary Profiles

Percentage of Deployments Across Different Modules

Product, Service or Solution Real Estate Space and Fa- Maintenance Sustainability Number of Capital Project Vendor Name Portfolio cilities Man- Management and Energy Employees* Management Management agement Management

Lucernex lx Lease, Lucernex lx Accruent Project, 360Facility, vx Maintain, vx 730 4% 11% 15% 77% 5% Observe

ARCHIBUS ARCHIBUS Web Central n/a 30% 50% 90% 80% 30%

FM:Systems FM:Interact 89 25% 50% 100% 35% 10%

Concept Evolution, FSI GO, Con- FSI 170 25% 30% 70% 95% 5% cept Advantage

IBM TRIRIGA Real Estate Manag- er, IBM TRIRIGA Facilities Manag- er, IBM TRIRIGA Workplace Oper- ations Manager, IBM TRIRIGA IBM TRIRIGA Capital Projects Manager, IBM n/a n/a n/a n/a n/a n/a TRIRIGA Real Estate Environmen- tal Sustainability Manager, IBM TRIRIGA Workplace Reservation Manager

MCS Solutions Smart Buildings (COBUNDU), MCS Solutions Fa- cility Management, MCS Solutions Maintenance, MCS Solutions MCS Solutions 220 4% 22% 95% 64% 16% Workplace, MCS Solutions Meet- ings & Reservations, MCS Solu- tions Energy, MCS Solutions Real Estate

Page 10 of 26 Gartner, Inc. | G00326911 Percentage of Deployments Across Different Modules

MRI Software Horizon, Space 80 10% 95% 20% 20% 5%

Maintenance Management, Space & Move Management, Capital Nuvolo Project Management, Real Estate 25 11% 13% 36% 100% 4% & Lease Management, Sustainabil- ity Management

Planon Universe, conjectFM, Planon 750 5% 40% 60% 60% 5% SamFM

SAP Cloud for Real Estate, SAP Real Estate Management, SAP As- SAP 75 15% 60% 10% 10% 5% set Intelligence Network, Enter- prise Asset Management

Trimble Manhattan, CenterStone n/a 12% 60% 70% 23% 5%

zLinkFM, zLinkAM, zCAS, zVerfy, zLink 80 50% 10% 100% 30% 0% zLinkRes, zDataCenter

“Percentage of Deployments Across Different Modules” — this represents the percentage of a particular module deployed across all customers. *Total number of full-time employees in the company dedicated exclusively to integrated workplace management product and services (e.g., product development, sales/marketing, customer service). n/a — Data not available

Source: Gartner (August 2018)

Gartner, Inc. | G00326911 Page 11 of 26 Accruent Accruent is an example of a vendor that has added a number of products to its IWMS portfolio through acquisition over the years. Its most recent acquisition is EMS Software, which expands its space management portfolio with a workplace and campus management platform. Other acquisitions in 2018 include Connectiv (healthcare technology management), Maintenance Connection (CMMS/EAM) and Kykloud (facility and asset surveying). In 2017, Accruent acquired Lucernex (profiled in the 2017 IWMS Market Guide) and BlueCielo (engineering information management).

Accruent’s functionality for lease administration and accounting was tested by an independent accounting firm and was verified as being ASC 842 and IFRS 16 compliant. The evaluation included both the real estate and equipment leasing solutions.

Accruent sells both cloud-based and on-premises systems. However, on-premises options are not available for all applications and make up a small percentage of new IWMS implementations. In the past year, Accruent has made improvements to maintenance management, remote monitoring, data capture, site survey and capital planning, as well as the user interface.

Table 3. Accruent

Attributes Details

Headquarters Austin, Texas, U.S.

Deployment time* (in days) range of least to 120-240 maximum time taken to deploy modules

Percentage of deployments — on-premises 30%

Percentage of deployments — cloud/hosted 70%

Commercial real estate, education, financial services, healthcare, Industries focus hospitality, telecom, public sector, retail

Amazon, Comcast, Dollar Tree, Harvard University, JetBlue Airways, Notable customers Madison Square Garden, UBS, University of Regina, Walgreens, Yum! Brands

Not available (network of more than 40 implementation and Implementation/consulting partners consulting partners)

Lawson, Microsoft Dynamics 365 & Dynamics GP, Oracle Financials, Application integration Oracle (JD Edwards), Oracle (PeopleSoft), Sage, SAP ERP, Workday

Source: Gartner (August 2018)

Page 12 of 26 Gartner, Inc. | G00326911 ARCHIBUS ARCHIBUS’ business model centers on its global network of business partners. This includes ARCHIBUS Solution Centers (ASCs) and ARCHIBUS Business Partners, which include software resellers, deployment and consulting services providers. These partners and consultants deliver the majority of the vendor’s IWMS sales, implementation, product support and development. ARCHIBUS runs an extensive certification program with separate certification in each of the different technologies and each of the different subject matter domains.

ARCHIBUS Web Central consists of a suite of over 30 distinct applications specific to processes and functional goals. The applications are grouped into the following domains: real estate portfolio management, capital project management, space planning and management, move management, workplace services, asset management, building operations, and environmental and risk management. All applications are completely integrated and can be deployed by application or simultaneously as one suite.

In the past 12 months, ARCHIBUS has focused on providing new functionality for the updated accounting standards, support for IoT/smart buildings, enhanced preventive maintenance planning tools, and 3D visualization for space and asset management.

Table 4. ARCHIBUS

Attributes Details

Headquarters Boston, Massachusetts, U.S.

Deployment time* (in days) range of least 30-120 to maximum time taken to deploy modules

Percentage of deployments — on- 70% premises

Percentage of deployments — cloud/ 30% hosted

Banking and financial services, education, energy, government, Industries focus healthcare, real estate, retail, telecom

China World Trade Center, Colliers International, European Parliament, Financial Aviation Administration Mike Monroney Aeronautical Center Notable customers (MMAC), Global Switch, GSK, Illumina, Kaiser Permanente, NHS Lanarkshire, Peking University International Hospital, Red Hat, Tencent, University of Edinburgh, University of Sydney

ARCHIBUS Solution Centers, AREMIS, Atos, Capgemini, Deloitte, DLT Implementation/consulting partners Solutions, Excitech, HCL Technologies, JLL, Newmark Knight Frank (NKF), PwC, Rand Worldwide (IMAGINiT Technologies), Parsons

Application integration n/a

Source: Gartner (August 2018)

Gartner, Inc. | G00326911 Page 13 of 26 FM:Systems FM:Systems derives the majority of its revenue from North America. It has a single product — FM:Interact — that caters to all the modules and use cases for an IWMS solution. Its product was developed internally — an approach that yields a more “integrated” system that can drive faster, less complex implementations and operations.

FM:Systems is focused on corporate, employee-centric use cases such as real-time utilization, move management, and employee workspace services; hence the majority of its deployments are for the space and facilities management module.

In the past 12 months, FM:Systems has developed the FMx Sensor platform for the integration and visualization of IoT-based sensor data from a multitude of sources. It is also making enhancements for room and desk booking by giving employees the ability to view availability and reserve space using interactive digital signage.

Table 5. FM:Systems

Attributes Details

Headquarters Raleigh, North Carolina, U.S.

Deployment time* (in days) range of least to maximum time taken to deploy modules 10-100

Percentage of deployments — on- 60% premises

Percentage of deployments — cloud/ hosted 40%

Industries focus Corporate, healthcare, higher education, technology

Autodesk, Baystate Health, Catholic Health Initiatives (CHI), Herman Miller, Notable customers Indiana University, Lenovo, MathWorks, MB Financial Bank, University of North Texas, Yelp

AMS CAD + CAFM Solutions, Advanced Spacial technologies (ASt) (Australia), CADD Microsystems, China Institute of Building Standard Design & Research (China), CSG Group (Singapore), Eighth Day Design, Geomap GIS Implementation/consulting partners America (Canada), JLL, Linetek System (South Korea), Little & Associates, Lucateg (Mexico), Neilsoft (India), NJW (U.K.), Novigos Engineering (Italy), PC CAD (Panama), RSP, Stantec (Canada), Tangent Sweden (Sweden), Zenit Consultants (Canada)

AutoCAD, Autodesk Forge Viewer, Autodesk Revit, Oracle HCM, Oracle Application integration (PeopleSoft), IBM (Maximo), Lease Harbor, SAP, Workday

Source: Gartner (August 2018)

Page 14 of 26 Gartner, Inc. | G00326911 FSI FSI derives the majority of its revenue from Western Europe. It is one of the few vendors in the market with a strong presence in the Middle East and Africa, from which it derives more than one quarter of its revenue.

FSI’s suite, Concept Evolution, focuses on facilities and maintenance management. It recently introduced a suite of user-focused apps called FSI Concept Advantage. This set of apps provides end users with the ability to interact with facilities teams and the help desk via social chat log, and also the workplace community. It provides IT and facilities managers with direct insight into employees’ concerns.

In the last year, FSI has been focusing on integrating building information modeling (BIM) and IoT sensor data into Concept Evolution to assist decision making on the life cycle of buildings and facilities. The IoT hub allows a range of sensors — from wired building management system (BMS) data to custom-made wireless sensors — to provide a feed of aggregated building data that drives the behavior of the Concept Evolution system.

Table 6. FSI

Attributes Details

Headquarters London, U.K.

Deployment time* (in days) range of least to maximum time taken to deploy modules 20-50

Percentage of deployments — on-premises 20%

Percentage of deployments — cloud/hosted 80%

Education, facilities management service providers, finance, Industries focus government (both local and central/federal), healthcare, retail, utilities

Amey, Arup, BAM, Enova by Veolia, Joss Construction, Mace Notable customers (Macro International), Mosanada FMS, OCS, Skanska, SPIE

Implementation/consulting partners Asset Control, ECCS, Retail Design

Construction Industry Solutions (COINS), IBM (Maximo), Microsoft Application integration Dynamics 365, Microsoft Office 365, Oracle Financials, Oracle HCM, Oracle (JD Edwards), Sage

Source: Gartner (August 2018)

Gartner, Inc. | G00326911 Page 15 of 26 IBM TRIRIGA IBM entered the IWMS market in 2011 with its acquisition of TRIRIGA. The solution benefits from the company’s dedicated services provided by IBM Global Business Services and also from the wider ecosystem of IBM Watson Internet of Things and Watson Analytics.

IBM is making the workplace services experience more employee-centric by enhancing mobile access to services managed by TRIRIGA. It has also introduced a new location-aware Workplace Services Portal that provides a unified access point from which users can launch apps and track status of their requests.

In the past 12 months, IBM has released a new version of TRIRIGA that provides significant enhancements to both real estate administration and advanced lease accounting for compliance with the new updated standards. It has also established relationships with accounting firms, including all of the “big four.” IBM is advancing its mobile application functionality while focusing on streamlined and appealing usability through delivery of integrated “perceptive” web apps.

Table 7. IBM TRIRIGA

Attributes Details

Headquarters Armonk, New York, U.S.

Deployment time* (in days) range of least to maximum time taken to deploy modules n/a

Percentage of deployments — on- n/a premises

Percentage of deployments — n/a cloud/hosted

Construction, energy, financial services, healthcare, higher education, Industries focus manufacturing, pharmaceutical, public sector, retail, service providers, technology, telecommunications, transportation

Airbus, Chipotle, Customs and Border Protection, Denver International Airport, Notable customers DHS, EY, Fidelity, iHeartMedia, ISS, Starbucks, U.K. Ministry of Defence, University of California (UC System), Verizon

Adaptive Workplace Solutions, Avnet, Capgemini, CT ACTIVA, Deloitte, EBUSINESS STRATEGIES, eCIFM Solutions, EDI, EY, FieldFLEX, Gilbane, IBM Implementation/consulting partners Global Business Services, IC-Info, Infosys, JLL-BRG, Newmark-CFI, NJW, Serco Group, Tata, ValuD, Whitesmiths, Wipro

Autodesk, Autodesk AutoCAD, Autodesk Revit, Bentley Systems (MicroStation), IBM Bluemix, IBM Watson IoT Platform, Microsoft Outlook, Microsoft Excel, Application integration Oracle Financials, Oracle (JD Edwards), Oracle (PeopleSoft), SAP ERP Financials

Source: Gartner (August 2018)

Page 16 of 26 Gartner, Inc. | G00326911 MCS Solutions MCS Solutions derives the majority of its revenue from Western Europe. Its platform is built on a single database and has dedicated products for each of the IWMS modules.

MCS Solutions for smart buildings is powered by MCS Solutions’ COBUNDU — an IoT big data platform used to develop smart applications and analytics. This enables use cases such as predictive maintenance, space optimization and comfort monitoring.

In the past 12 months, the vendor has launched various mobile apps for both end users and facilities management technicians. An AI-powered bot called Cobu helps employees make the best use of their workplace services using Skype. MCS Solutions has enhanced its BIM integration, allowing users to create asset portfolios from BIM, explore the building in 3D, and make tickets and annotations on BIM.

Table 8. MCS Solutions

Attributes Details

Headquarters Antwerp, Belgium

Deployment time* (in days) range of least to maximum time taken to deploy modules 15-60

Percentage of deployments — on- 27% premises

Percentage of deployments — cloud/ hosted 73%

Banking and finance, construction services, education, government/ Industries focus public sector, healthcare, manufacturing, service providers, telecom, utility companies

AXA, BNP Paribas, CBRE, Coca-Cola, Cushman & Wakefield, Electrolux, Notable customers Excellerate Property Services, Flemish Government, ISS Facility Services, PwC, RATP (Paris public transport), Telenor

BIcause, Bravo AV, Cushman & Wakefield, Dobit, Excellerate Property Implementation/consulting partners Services, ISS Facility Services, Leesman, Lexium, Sage Method, The Corporate Group

COBUNDU, Dell Boomi, IBM Notes, Microsoft Exchange Server, Application integration Microsoft Office 365, Red Hat JBoss, SAP

Source: Gartner (August 2018)

Gartner, Inc. | G00326911 Page 17 of 26 MRI Software In October 2017, Qube Global Software was acquired by MRI Software. It offers a number of applications for the real estate industry in addition to facilities management. The acquisition gives MRI Software greater presence in Europe where Qube derives the majority of its revenue.

MRI Software’s product, Horizon, caters to all IWMS modules. The majority of its deployments are in the real estate/portfolio management module, which includes lease administration. Horizon is deployed solely by in-house consultants. However, it uses implementation partners to provide additional specialist subject matter expertise, if required.

In the past year, MRI Software has focused its development in three areas:

1. New functionality to support the updated lease accounting standards for both real estate and non-real estate leases.

2. Improvements to usability and reporting.

3. Improving facilities management functionality for mobile apps, user interface and navigation.

Table 9. MRI Software

Attributes Details

Headquarters Cleveland, Ohio, U.S.

Deployment time* (in days) range of least to maximum time taken to deploy modules 10-30

Percentage of deployments — on-premises 30%

Percentage of deployments — cloud/hosted 70%

Industries focus Corporate, industrial, retail

BMO Financial Group, BT, Coca-Cola, Department for Notable customers Transport, Dixons Carphone, HanesBrands, Halfords, Marks & Spencer, Pilkington, XPO Logistics

Implementation/consulting partners n/a

Coda, Microsoft Dynamics 365, Microsoft Dynamics NAV, Application integration Oracle, SAP, Unit4

Source: Gartner (August 2018)

Nuvolo The Nuvolo IWMS platform is built on ServiceNow and integrates natively with ServiceNow’s HR module. The Space & Move module provides an easy-to-use interface and workflow for managing employee activities (e.g., new employee onboarding, termination or relocation). For those customers

Page 18 of 26 Gartner, Inc. | G00326911 who want high-touch customer care support, Nuvolo offers Technical Account Management services. This is an allocated resource that includes concierge support escalation, end-to-end support coordination, technical configuration services (ITSM and EAM), configuration requirement coordination and scoping, and participation in roadmap discussions.

Nuvolo reports that maintenance management is the most common IWMS use case for its customers. This function includes work order management, asset management, as well as tracking and parts management of operating technology and spaces. These maintenance management activities, critical for day-to-day operations, are all accomplished on the ServiceNow enterprise cloud platform. Nuvolo’s customers leverage this use case with point-of-service maintenance management powered by Nuvolo’s connected and disconnected native mobile platform for iOS, Android and Windows Mobile.

Table 10. Nuvolo

Attributes Details

Headquarters Paramus, New Jersey, U.S.

Deployment Time* (in days) range of least to maximum time taken to deploy modules 37-67

Percentage of deployments — on-premises 1%

Percentage of deployments — cloud/hosted 99%

Energy, government, healthcare, higher education, life sciences, Industries focus manufacturing, retail, technology

7-Eleven, Aramark, GE Healthcare, Maverik, Parkland Memorial Notable customers Hospital, Siemens Healthineers, University of Texas at Tyler, Vertex Pharmaceuticals

DXC Technology, Fujitsu, Healthcare IT Leaders, Maryville Consulting Implementation/consulting partners Group

Lawson, Microsoft Active Directory, Microsoft Dynamics 365, Oracle, SAP, Workday Application integration RTLS systems including CenTrak, Ekahau, Impinj, STANLEY Healthcare-AeroScout

Source: Gartner (August 2018)

Planon Planon, jointly headquartered in the U.S. and the Netherlands, is the largest software provider profiled in this report, with IWMS as its major revenue stream. Planon derives the majority of its revenue from Europe; its North American business has grown significantly because of the investment it made in this geography.

Gartner, Inc. | G00326911 Page 19 of 26 Planon's IWMS product suite, Planon Universe, is tailored for three audiences: (1) Real estate/ facilities managers; (2) Service providers; (3) Financial professionals. Planon Universe includes a suite of best practices called Accelerator. Accelerator provides preconfigured processes that include workflows, catalogs, reports, dashboards, templates, roles, authorizations, data import facilities, and configuration descriptions.

In 2017, Planon received validation from a “big four” accounting firm on leasing calculations performed by its software. This validation confirmed Planon as having the capability for accurate lease calculations for operating and finance/capital leases in accordance with both the current and the new lease accounting standards from the FASB and IASB.

Table 11. Planon

Attributes Details

Headquarters Braintree, Massachusetts, U.S. and Nijmegen, Netherlands

Deployment time* (in days) range of least to maximum time taken to deploy modules 15-60

Percentage of deployments — on-premises 40%

Percentage of deployments — cloud/ hosted 60%

Financial services, government, healthcare, higher education, Industries focus manufacturing, retail, pharmaceuticals, service providers

Ahold Delhaize, Bouygues, Brown University, Dartmouth College, ETH Notable customers Zurich, JTC (Sin), Maastricht University Medical Center, Molina Healthcare, Shell, Siemens, SPIE, Unilever

Implementation/consulting partners Accenture, Capgemini, Deloitte, EY, KPMG, PwC, Vetasi

Autodesk Forge (BIM & CAD integration), Avex (access control systems Application integration & AV equipment), CALVI, Exact, Nedap AEOS, Oracle (PeopleSoft — employee data), ProActive (financials), SAP, SmartStream

Source: Gartner (August 2018)

SAP

SAP derives majority of its IWMS revenue from Western Europe. SAP's IWMS offerings center on its core ERP solutions including S/4HANA and ERP Central Component (ECC) 6.0. SAP Cloud for Real Estate makes a good choice for existing users of SAP solutions because of its integration with other SAP applications. All of SAP’s current IWMS deployments have been implemented by existing users of its ERP system.

Because of its integration ecosystem, the majority of deployments and most common use cases for SAP IWMS have been in real estate portfolio management and lease administration.

Page 20 of 26 Gartner, Inc. | G00326911 In the past 12 months, SAP has enhanced its space management functionality with visual workspace management for SAP Cloud for real estate. This functionality allows for the assignment of teams and individuals to space using floor plans. Sensors and other IoT devices connected to the Cloud for Real Estate platform provide real-time space utilization information.

Table 12. SAP

Attributes Details

Headquarters Walldorf, Germany

Deployment time* (in days) range of least to maximum time taken to deploy modules 30-120

Percentage of deployments — on-premises 95%

Percentage of deployments — cloud/hosted 5%

Financial services, industrial, public sector and Industries focus utilities, retail

Notable customers n/a

Accenture, Capgemini, Deloitte, EY, IBM, PwC, Implementation/consulting partners SAP Services, Wipro

Application integration SAP products

Source: Gartner (August 2018)

Trimble

Trimble is one of the few public companies profiled in this Market Guide. Its 2017 revenue was nearly $2.7 billion for all of its divisions. Trimble’s Real Estate & Workplace Solutions division offers the Manhattan Integrated Workplace Management System. The most recently released version features a restyled user interface with a visual design.

Trimble also recently announced the launch of Basis, an application designed to make it easier for corporate real estate teams to see how office workspace is being used. Basis integrates with Trimble’s space management and space scheduling modules. Late last year, Trimble announced the availability of LiveSign Pro Touch Panels that work with the space scheduling module and Microsoft Office 365.

Earlier this year, accounting firm RSM conducted an independent audit of the modules that support the new lease accounting rules from the FASB and IASB. Trimble’s Manhattan software obtained a Service Organization Control (SOC 1) Type 1 attestation for its Information Technology General Computer Controls (ITGC). In addition, the data processing component of its recently launched Lease Compliance modules was also included in the attestation.

Gartner, Inc. | G00326911 Page 21 of 26 Table 13. Trimble

Attributes Details

Headquarters London, U.K.

Deployment time* (in days) range of least to maximum time taken to deploy modules 30-120

Percentage of deployments — on-premises 27%

Percentage of deployments — cloud/hosted 73%

Consulting, financial services, life sciences, retail, service Industries focus providers, technology

Accenture, BGIS (formerly Brookfield Global Integrated Notable customers Solutions), bygst.dk (Danish government), Cisco, Citibank, Corning, Deutsche Bank, Morgan Stanley

Implementation/consulting partners JLL, KMD, BGIS, ROI Consulting Group

Application integration n/a

Source: Gartner (August 2018)

zLink

zLink, formerly known as Indus Systems, is headquartered in Maynard, Massachusetts, U.S. Along with rebranding the company, zLink rebranded its facilities management system and computer- aided facilities management (CAFM) offering as zLinkFM. This is an integrated web-based enterprise platform composed of over 25 components that tightly couples drawings and databases to support space-centered applications (for a complete list of zLink products, see Table 2). Despite the name change, zLink is steadfast in its belief that facilities drawings are the core of facilities- related information.

Nearly 90% of zLink deployments are on a multitenant-hosted SaaS model, which makes it one of the IWMS vendors with the highest number of SaaS deployments. In addition to using its applications for space utilization, management and planning, customers use zLink to simplify building inspection and management. The entire product platform is built on an HTML5 platform, so no client plug-ins are required to access the IWMS functionality. zLink uses its own personnel for implementation and provides customer support from its headquarters in the U.S. and its location in India.

Page 22 of 26 Gartner, Inc. | G00326911 Table 14. zLink

Attributes Details

Headquarters Maynard, Massachusetts, U.S.

Deployment time* (in days) range of least to maximum time taken to deploy modules 30-120

Percentage of deployments — on-premises 7%

Percentage of deployments — cloud/hosted 93%

Corporate facilities, data centers, education, federal government, Industries focus hospitals

Consumer Finance Protection Bureau (CFPB), Genesys, Jack Henry & Associates (JKHY), Siemens USA, WSP | Parsons Notable customers Brinckerhoff, Ammann & Whitney, Penn Mutual, U.S. General Accountability Office (GAO)

Implementation/consulting partners AECOM, WSP | Parsons Brinckerhoff, Siemens USA

Application integration BIM, BMS, CMMS, Oracle Financials, HR (Workday)

Source: Gartner (August 2018)

Market Recommendations ■ Identify and document your current requirements for the immediate issues prompting you to procure an IWMS platform, but do not neglect the strategic benefits of an integrated approach to facilities management. Work with business leaders to ensure that the strategic benefits are in line with business expectations. Clients usually have a specific problem that they are trying to solve when they begin the search for an IWMS platform, then build out their platform as time, money and resources permit. You should be able to justify your IWMS investment for whichever module you decide to implement first on its merit alone. While the ROI for any module should be convincing, an examination of the longer-term benefits from deploying an integrated solution will inform your facilities management strategy.

■ Ensure the vendors you are considering provide robust analytics that you can use to make more informed space, real estate and capital planning decisions. Prioritize the analytics needed by the business after agreeing these with business owners. For example, space utilization data — information on how space is actually used, and by whom — allows you to design the types of workspace people prefer.

■ Verify that any prospective IWMS solution integrates with other important applications (such as HR, financial, BIM) that you rely on to run your business. Working with the enterprise architecture team is recommended. Have the vendor describe its integration approach, cost and

Gartner, Inc. | G00326911 Page 23 of 26 time frame to deploy. Catalog other data sources that may need to feed information into the IWMS platform such as spreadsheets and custom applications developed internally.

■ Confirm that any vendor you plan to use to manage your real estate operating lease portfolio offers robust, accurate and automated functionality compliant with the changes to the accounting rules. Work with your finance department to ensure this. Many lease obligations extending past the 1 January 2019 effective date for public companies will need to be capitalized.

■ Partner with facilities managers and corporate real estate colleagues to plan how technological advancements in space utilization and maintenance management can support digital workplace program objectives. Explore how technologies such as the IoT and AI can be used in conjunction with the physical layout of the office to create an improved employee experience.

Acronym Key and Glossary Terms AI artificial intelligence

BIM building information modeling

BMS building management system

CAD computer-aided design

CAFM computer-aided facilities management

CMMS computerized maintenance management system

EAM enterprise asset management

FASB Financial Accounting Standards Board

IASB International Accounting Standards Board

IoT Internet of Things

ITSM IT service management

IWMS integrated workplace management system

RFP request for proposal

SaaS software as a service

VPA virtual personal assistant

Page 24 of 26 Gartner, Inc. | G00326911 Gartner Recommended Reading Some documents may not be available as part of your current Gartner subscription.

“Predicts 2018: Digital Workplace Programs to Boost Digital Dexterity”

“Build Your ‘A Team’ to Lead Successful Digital Workplace Programs”

“Use the Internet of Things in Smart Buildings to Achieve Work-Life Ambience”

“Crafting Workspaces That Enhance the Employee Experience”

“Make Your Digital Workplace Employee-Friendly With These Six IoT Best Practices”

Evidence 1 2017 Gartner Digital Workplace Survey: Results are based on a Gartner consumer study conducted to understand digital workers (including changes and trends in their sentiments and expectations), explore worker engagement and examine workers' satisfaction with applications provided by their organizations. The survey was conducted online from February to March 2017, with 3,120 respondents in the U.S., Europe and Asia/Pacific. Participants were screened for full-time employment by organizations with 100 or more employees, and had to use digital technology for work purposes. Respondents' ages ranged from 18 years to 74 years. Quotas and weightings were applied for age, gender, region and income, so that the results were representative of countries' working populations.

2 “How Office Design Can Catalyze an Innovative Culture,” Brookings Institute.

Note 1 Representative Vendor Selection The 12 vendors named in this Market Guide were selected because they offer functionality for all of the five modules of an IWMS (as listed in the Market Description section of this report). They are the vendors for which Gartner has received the most client interest (searches on gartner.com and inquiry).

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