Building owners, managers and investors are recognising the value of data and analytics to form the basis for more informed decision-making. This is backed by new research from the International Data Corporation (IDC), as well as the latest Global Real Estate Sustainability Benchmark (GRESB) assessment results. The findings from both highlight the rate at which data is dominating strategic thinking across the property and other industries.
According to the latest release of IDC's Worldwide Big Data and Analytics Spending Guide, adoption of data and analytics solutions in Australia and New Zealand captured a net spend of USD $5.5 Billion in 2022 and is expected to register an annual growth rate of 13.3% in coming years. The big drivers behind this massive escalation in expenditure are accelerating efforts in digital transformation, improved cybersecurity and improved automation.
This accelerated adoption is consistent across industries, as Anastasia Antonova, Research Manager for IDC A/NZ Software explains.
“We are seeing healthy spending across various industries in Australia and New Zealand. Decision-making capability related to data is on top of mind for executives when investing in software and innovation projects. Leveraging real-time data for insights provides competitive advantage almost instantaneously to those firms, wishing to excel in customer experience and client management efforts regardless of the industry.”
This was backed up by the recently released GRESB assessment results. This year, coverage expanded to include nearly $14 trillion in real estate and infrastructure value worldwide – including over 700 infrastructure funds and assets. The results, rankings, and benchmarks saw the largest ever growth in total numbers, with 1820 entities now participating worldwide.
The increase represents a near 20% jump in participation since 2021. This can largely be attributed to improved data systems implementation across the property industry, as sustainability data capabilities and coverage has increased.
At our recent webinar on ‘Embracing Data and Digitisation’, the conversation on data-first thinking was alive and well. Amanda Steele explained the move towards data-driven decision-making at CBRE has been the right one.
"The big thing for us is that we've moved away, thankfully, from that gut feel. I think that having that far better optics and transparency around what's happening in your building really allows you to make that data-driven decision. So whether that be on investment, whether that be on change of strategy, I'm really looking for that digital transformation to give me more tools to have robust conversations with my operators, with the tenants in the building, and with the landlord. So it comes from a position of knowledge rather than ‘I think it's right'."
The Australian Government, through its Digital Economy Strategy, has pointed to data analysis as one of the key elements required for the improvement of operations across a variety of different industry sectors. It notes that ‘effective and large-scale use of data is powering the global and connected digital economy, presenting significant economic opportunities for all sectors.’
The Government recently delivered Australia’s first Data Strategy setting out the Government’s vision for Australia to become a modern data and digital-driven society by 2030 and a national approach to data as a key driver of the future economy. Data is critically important to building a modern digital economy and delivering better outcomes for everyone.