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Blog Nov 10, 2015

How Artificial Intelligence empowers Corporate Real Estate Organizations

The success of a particular strategy is contingent upon the choice of an appropriate organizational structure – individually adjusted to the demands of the specific company and its market(s).

Traditional organizational structures can be separated into two types – “centralized” and “decentralized”. Whereas in a centralized organization form, decision-making and executional competencies rest with the company’s main individual at the company’s headquarter, in a decentralized organization model these competencies are shifted to regional divisions of the company.

Problems of Traditional Organization Models

Based on an organization’s strategy, either one of those models can be applied. Yet, both pose certain disadvantages. Applying a centralized model on the one hand can result in limited regional market knowledge and lead to constrained abilities to execute local tasks. It also requires a great organizational effort to manage communication between headquarter and divisions. On the other hand, decentralized models often lack transparency due to heterogenic or non-existent standards across multiple business units. Poor efficiencies regarding cost savings and knowledge transfer are another drawback of the decentralized model.

Artificial Intelligence empowers Hybrid Organizations

In order to evade the aforementioned downsides, it is advisable for companies to choose a hybrid organization model involving certain positive elements both traditional models entail. Particularly with respect to CREM, such hybrid models can best be facilitated through the implementation of artificial intelligence (AI).

Applying AI to the document management of CREM allows hybrid organizations to have full control over and direct access to all relevant real estate data. The data input can occur at any local branch of the company (i.e. decentralized) – wherever new information is being created –  but the output is centralized available to all relevant stakeholders.

AI applied to CREM, thus, enhances perfect transparency within an organization and creates true organizational knowledge. All business units have access to and control over all relevant information which leads to increased efficiencies, cost savings and enables centralized reporting of data.

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