Embracing technological advancements has become essential for businesses seeking to thrive in today’s competitive industry, where efficiency and adaptability are essential for success. However, the commercial real estate industry has historically lagged in technology adoption. Many companies exhibit reluctance to embrace innovation. This delay can be attributed to a combination of factors explored below.
Cost & Resource Constraints
One of the primary barriers to technology adoption is the substantial initial investment required. Implementing new technology often requires significant upfront costs. This can can deter many companies, especially smaller firms with limited financial resources. Moreover, ongoing expenses related to maintenance, updates, and support further add to hesitation, especially when companies are satisfied with their current procedures. Ultimately, many companies prioritize risk aversion, opting to stick with familiar methods rather than investing in new technology.
Learning Curve & Adaptability
Comfortability with existing processes and resistance to embrace innovation contribute to the industry’s hesitancy to new technology adoption. CRE companies lack desire to change processes that have historically been effective for them. Companies often perceive a steep learning curve accompanying the adoption of innovative solutions, leading to resistance among employees. The time and effort necessary for training employees can be perceived as a barrier, especially in companies where their employees are extremely familiar with their current practices. Overcoming this resistance requires comprehensive training and support to ensure a smooth transition.
At North Shore Systems, we prioritize seamless onboarding, offering extensive training and ongoing assistance to facilitate the adoption process for our clients. The team works closely with new users providing them in-depth training before they work in the system on their own for the first time. The North Shore team is accessible at all times, ensuring that customers needs and requests are met to the best of our abilities.
Time Consuming
The process of integrating new technology into existing systems can be a time-consuming endeavor, deterring companies from pursuing innovation. While the adoption process may entail challenges, embracing technology early on ultimately enhances efficiency in the long run. Implementing new technology ahead of time allows companies the grace to get adjusted to it before they absolutely need it.
At North Shore Systems, we recognize the importance of mitigating time constraints. We provide thorough onboarding processes and break down the adoption phases into manageable steps. NSS walks new clients through extensive trainings while providing additional written and visual resources for them to reference. For more information on our onboarding process, fill out our contact form.
Data Security Concerns
In the commercial real estate sector, safely maintaining sensitive financial data is essential. Concerns regarding data security and the risk of cyber threats significantly contribute to the industry’s cautious approach toward technology adoption. Companies are hesitant to adopt new technology without assurance of robust security measures in place. This underscores the importance of prioritizing data protection in any technological solution. Thus, companies must ensure that the technology is secure before implementing it.
Limited Tech Education & Awareness
A lack of familiarity and understanding is partially attributed to the slow pace adoption of technology in CREF. Many industry professionals may not be fully aware of the potential benefits and functionalities offered by modern technology. The absence of widespread tech awareness within the industry results in unnoticed opportunities to enhance efficiency and streamline processes. Bridging this knowledge gap and promoting awareness about the advantages of new technology in commercial real estate finance are crucial steps toward accelerating adoption throughout the industry.
In conclusion, while the commercial real estate finance industry faces challenges in embracing technology, the benefits of innovation are undeniable. Embracing technology not only promises increased efficiency but also positions businesses to thrive in an ever-evolving market. By overcoming barriers such as cost constraints, addressing data security concerns, and promoting tech education, businesses can position themselves for growth and resilience in an evolving market landscape. As the industry continues to change, there is an undeniable call to action to confidently stride into a future where technology is not just a tool but also a catalyst for unprecedented growth and resilience. At North Shore Systems, we remain committed to empowering our clients with cutting-edge technological solutions, ensuring they thrive in the digital age.
