Product Description

The Real Estate Business Capabilities Model is an integrated and in-depth matrix of capabilities that capture the essence of what a Real Estate company does. It will help companies gain a holistic perspective of their business at a foundational level and provide a business blueprint for many valuable purposes. In addition, the Real Estate Capabilities are customizable to the unique needs of a real estate enterprise.

The Real Estate business capabilities model comprises about 280 capabilities across three levels.

(Note: As the Real Estate business capabilities model is a digital deliverable, we do not accept returns or issue refunds. So, please read the product description and the terms carefully before purchasing.)

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The  Real Estate business capabilities model is a set of multilevel and granular business capabilities primarily focusing on the core industry-specific value chain but also decomposes the horizontal shared services.

A capabilities model is a must-have tool for business architects, enterprise architects, business and technology leaders, and project teams to fathom the nuances of the industry’s core, context, and commodity capabilities.

Real Estate Industry Transformation:

The real estate industry is undergoing a significant transformation driven by a combination of internal factors and external forces shaping how properties are developed, bought, sold, and managed.

Internal factors include the increasing adoption of technology within the industry. Real estate professionals leverage digital tools and platforms to improve efficiency, enhance customer experiences, and streamline operations. Examples include virtual property tours, property management software, and online transaction platforms. Moreover, real estate companies invest in big data analytics to gain insights into market trends, customer preferences, and pricing strategies.

External forces driving the transformation include changing demographics and evolving consumer preferences. The rise of urbanization, an aging population, and increasing demand for sustainable and environmentally friendly developments are reshaping the types of properties in demand. Furthermore, economic factors such as fluctuations in interest rates, government policies, and market dynamics play a significant role in shaping the industry landscape.

Additionally, the rise of the sharing economy and co-living/co-working spaces has disrupted traditional real estate models, forcing the industry to adapt to new ways of delivering value to clients. Finally, climate change and the increased focus on sustainability prompted the industry to incorporate green technologies and eco-friendly designs in new projects.

The real estate industry is transforming as it adapts to shifting consumer preferences, technological advancements, and evolving market dynamics to stay competitive and cater to the needs of modern clients.

Business Capabilities are a Cornerstone for Transformation

For a Real Estate company to transform successfully, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

Real Estate Business Capabilities Model Deliverables:

The Real Estate business capabilities model comprises ~280 capabilities across three levels and includes the following editable artifacts:

• An Excel spreadsheet with the grouping of capabilities.
• A PowerPoint format with the top three levels presented in a nested visualization.
• A Word document with capabilities in a multilevel list format.
• High Tech Capability Definitions (at Level 3)
• Capability KPIs (Key Performance Indicators) (at Level 2)

How to Use the Real Estate Business Capabilities Model?

A business capabilities map is a fundamental and foundational deliverable in the business architecture continuum. For example, the Real Estate capabilities model encapsulates end-to-end aspects of the business with a detailed, multilevel capabilities list.

There are several benefits from business capabilities, including, among others:

• Foster alignment between business and IT using capabilities as an everyday language.
• Capabilities are a structurally sound and internally coherent abstraction of business functions.
• A capability-based roadmap eliminates redundancy and replication and focuses on capability evolution.
• Juxtaposing capabilities and systems/applications provide a footprint analysis and can lead to better application portfolio rationalization decisions.

The Real Estate capabilities map decomposes components up to three levels. Created by business architects and industry domain experts, the capabilities list is detailed, in-depth, and conforms to the construct of MECE (mutually exclusive and collectively exhaustive).

Who should use the Real Estate Map?

The Real Estate business capabilities matrix is a generic model; hence, it is a starting point, not the final product. (Please note that a generic map covering multiple areas will not be specific to your specific company or business model; that is where our Real Estate can help customize and detail the capability model. Or you can modify and tailor it to your needs internally.) The primary users encompass:

• Business architects and enterprise architects.
• Leaders focused on business transformation.
• Product and program managers enabling capabilities.

The real estate industry comprises several subsectors, each focusing on property development, management, and transactions. Consequently, the core capabilities in the Real Estate capability matrix can be customized to the following subsectors:

1. Residential Real Estate: Involves the development, sale, and leasing of properties meant for living, such as single-family homes, multi-family homes, condominiums, townhouses, and apartments.
2. Commercial Real Estate: Encompasses the development, sale, and leasing of properties used for business purposes, including office buildings, retail centers, shopping malls, warehouses, and industrial spaces.
3. Industrial Real Estate: Focuses on properties used for manufacturing, storage, and distribution, such as factories, warehouses, and distribution centers.
4. Hospitality Real Estate: Includes properties in the hospitality sector, such as hotels, resorts, and other short-term lodging facilities.
5. Mixed-Use Real Estate: Involves developments that combine multiple property types, such as residential, commercial, and retail spaces, within a single project or area.
6. Real Estate Investment Trusts (REITs): Companies that own, operate, or finance income-generating real estate properties, offering investors an opportunity to invest in a diversified portfolio of real estate assets.
7. Real Estate Services: Encompasses a range of services related to the real estate industry, including property management, brokerage, appraisal, property development, and consulting.
8. Land Development: Focuses on acquiring undeveloped land and converting it into a usable state for residential, commercial, or industrial purposes.
9. Real Estate Technology (PropTech): Companies and startups that develop innovative technologies and solutions to enhance, disrupt, or transform various aspects of the real estate industry.

Why Purchase a Business Capabilities Map?

Defining business capabilities from a blank slate takes time and effort and delays time to value. Instead, a pre-built and customizable business capability map helps provide 60-80% of capabilities allowing internal teams to focus on what is missing or unique to their companies.

And the cost is less than an inexpensive team dinner or the loaded cost of 4-5 team members brainstorming for an hour.

And far less than the deliverables consulting firms produce at over $100,000 or more, and compared to that number, the cost of our capabilities models is a fraction (a rounding error.)

Even if you already have a capability map, you could use our version to compare, validate, and potentially include missing capabilities.

A Note About the Artifacts:

• Business Capabilities Matrix: A functional area occupies one box in many business capability maps. Some may wonder why we decomposed the capabilities into 100X or more capabilities. We humbly submit that one box or entry in a one-page diagram is Wall Art, not an implementation tool. Decomposing capabilities into a nested list of granular items will help understand a capability’s depth, breadth, scope, and importance. It is also possible that some capabilities in our matrix may not be relevant to you. Similarly, we may have captured and documented some relevant and essential capabilities of your firm.
• Capability Definitions: We include capability definitions at Level 3. Please feel free to modify it to your company’s needs.
• Capability KPIs (Key Performance Indicators): We added a few KPIs for capabilities (mostly at Level 2) to get you started. You may not measure these KPIs in your company and have an entirely different set of metrics. Again, use them as a springboard, and not debate the applicability to your firm.

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