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Market Guide for Integrated Workplace Management Systems

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Market Guide for Integrated Workplace Management Systems 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. ■ 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. 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
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