Uncertainty brought on by low occupancy rates, high energy costs, and impending recessions made people less inclined to spend money on smart building software. The landscape is changing, though, and by 2024, corporate strategies will be more stable as hybrid policies become more firmly established, the need for ESG monitoring grows, and the outlook for the economy becomes more definite.
Changes in Purchasing Methods
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Adopting a “Best of Breed” Perspective
The ‘best of breed’ approach to software procurement has become increasingly popular over the last four years. Concurrently, there has been an increase in interdepartmental consultation concerning software acquisition tactics.
Industry-Specific Trends
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Differences Between Industries
The strategies used by respondents to procure software vary significantly; all-in-one solutions, multiple point solutions, and a few solutions with broad functionality are divided almost evenly among them. Interestingly, sectors like manufacturing favor single-integrated solutions, while the media, telecom, education, and technology sectors tend to favor point solutions. Further research is necessary to understand the underlying causes of these changing tactics.
Influence of Key Stakeholders
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CEO and C-Suite Influence
CEOs have a big say in decisions about smart building technologies that are made outside of the facilities division. Obtaining investment sign-offs and budgets frequently requires consulting with C-Suite executives. Furthermore, the expanding sustainability agenda encourages cooperation on technology investments between facilities teams and sustainability departments. Notably, IT departments are crucial, as nearly 50% of respondents stated that they have significant control over software investments, which are primarily influenced by security-related technology procurement policies.
Final Words
It is important to comprehend the subtleties of procurement strategies as the field of smart building software investment develops. In the era of smart buildings, driving successful investments requires navigating these complexities, with key stakeholders exerting varying levels of influence and industries embracing diverse approaches.
