E-book
Real estate management: ERP versus IWMS
Make informed decisions with our e-book about ERP and IWMS for real estate management.
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For many organizations, facility and real estate management costs exceed 20% of total expenses. Automation can help managers reduce these costs and boost productivity.
The only way organizations can fully understand their core business activities is by integrating data and processes. To help them achieve this, organizations can use different types of software solutions, including ERP systems and IWMS solutions. But what are ERP and IWMS? And what are their strengths and weaknesses?
ERP software and IWMS: A definition
For many organizations, Enterprise Resource Planning software (ERP) is the cornerstone of their IT infrastructure. This solution enables organizations to manage their core business activities with a unified system of integrated software. ERP systems are very powerful and provide insight into vital parts of the organization, such as purchasing, logistics and human resources.
Integrated Workplace Management System (IWMS) is the globally accepted term for software solutions that support facility and real estate management processes. This type of solution provides reliable management information, monitors compliance with legislation and regulations, and gives maximum insight through real-time monitoring. IWMS solutions integrate five major functional domains:
- Real Estate and Lease Management
- Facility and Space Management
- Maintenance Management
- Project Management
- Environmental Sustainability
ERP and IWMS: The strengths and weaknesses
Both ERP and IWMS solutions strive to reduce costs, integrate business processes and increase the efficiency of processes. Both are unbeatable in their specific areas and have their own strengths and weaknesses.
While an ERP system supports core business activities, an IWMS solution focuses on secondary processes in facility and real estate management, like space allocation, lease agreements, and maintenance. Some organizations use their ERP software for these tasks to avoid extra systems, ensuring data is stored centrally and processes are integrated. But can an ERP really manage these secondary processes alone?
ERP systems focus on the primary process, not on FM or RE processes, which can lead to a lack of basic functionality that is required for secondary business processes. ERP solutions often entail significant customization, thereby substantially increasing the costs of upgrading to new releases. Organizations also run the risk of disrupting their core business activities if they use an ERP system to support both the core and secondary business processes. This is especially the case since many primary processes will depend entirely on the ERP and their continuity is therefore paramount.
A specialized IWMS solution is often used to gain insight into facility and real estate management processes and to perform tasks that ERP solutions are not fully able, or are completely unable, to support. IWMS solutions are easily and quickly accepted by users due to their simplicity, ease of use and their adaptability to the needs of real estate and facilities professionals.
ERP versus IWMS comparison
| ERP (Enterprise Resource Planning) | IWMS (Integrated Workplace Management System) | |
|---|---|---|
| Purpose | Manage core business activities | Support facilities and real estate portfolio management |
| Core focus | Industry-specific processes | Cross-industry |
| Main functional areas | Purchasing, Inventory, CRM, Logistics, HR, Finance | Real Estate & Lease Management, Facility & Space Management, Maintenance Management, Project Management, Environmental Sustainability |
| Strengths | Integration of core business processes, centralized data | Dedicated to FM and RE processes, user-friendly, real-time data, easily connect to smart building technology |
| Weaknesses | Limited FM and RE functionalities, potential high customization costs | Limited core business functionalities |
| Cost considerations | Software licensing, implementation, maintenance, administration | Software licensing, implementation, maintenance, administration |
Friend, foe, or a good marriage?
When trying to decide on the best type of software solution for your RE and FM operations, you might consider whether to deploy an ERP or IWMS. Many ask, “Which solution is the best?” There is no simple answer to this question. It really depends on the type of organization, the solution requirements, and the organization’s objectives.
To provide further guidance, this e-book about the differences between an ERP and an IWMS follows three different perspectives (business, IT, and investment) and serves as a guide to help you make a sound choice that suits your long-term goals, and reduces risk of failure during implementation and operation.