Technology needs

Real Estate ERP Strategic Vision

To drive the growth today

Agenda

❖ Real Estate Business Processes

❖ ERP Software as Enabler Technology

❖ TOC/CCPM as Business Technology

❖ Theory of Constraints (TOC)

❖ Critical Chain Project Management (CCPM)

❖ Future Roadmap for ERPs

Real Estate Business Process

Goal: Maximum Turnover

Focus Points

1. Sales

2. Project Execution

3. Business Development

4. Finance and Statutory

Focus Point 1: Sales

Target vs Actual

1. Booking Amount

2. Revenue Received

3. On Time Execution of Current Projects

4. Highly Valuable New Projects

5. Clear Finance and Statutory Terms

Focus Point 2: Project Execution

Target vs Actual

1. Work Done Amount

2. Payments Outflow

3. Cost Overrun

4. Time Overrun

5. Change Management Process

Focus Point 3: Business Development

Target vs Actual

1. Liaison Process Done Amount

2. Liaison Payment Outflow

3. Cost Overrun

4. Time Overrun

5. Land/SRA/Redevelopment Leads

Comparisons

Focus Point 4: Finance and Statutory

Target vs Actual

1. Overhead Apportionment

2. Project Revenue Recording

3. Statutory Liability

4. Updated Balance Sheet

5. YoY/MoM Growth Percent

ERP Software as Enabler Technology

Goal: Maximum Customer

Performance

Focus Points

1. Double The Sales Output

2. Half The Project Execution Time

3. Half The Business Development Time

4. Instant Finance and Statutory Reports

Focus Point 1: Double The Sales

Output

How ERP Can

1. Easy Bookings on Site/ Online / On Mobile

2. Easy Payments on Site/ Online / On Mobile

3. Updates on Execution of Current Projects

4. Valuable Updates on New Projects

5. Clear Finance and Statutory

Communications / self service

Focus Point 2: Half The Project

Execution Time

How ERP Can

1. Accurate Project Estimation

2. CCPM Implementation

3. Weekly Execution Feedbacks

4. Time Control over Cost Control

5. Change Impacts on Costs and Time

Focus Point 3: Half The Business

Development Time

How ERP Can

1. Standard BD/Legal/Liaison Processes

2. Weekly Progress Feedbacks

3. CCPM Implementation

4. Time Control over Cost Control

5. Standard Leads Feasibility Parameters and

Automated Comparison

Focus Point 4: Instant Finance and

Statutory Reports

How ERP Can

1. Auto Overhead Apportionment

2. Auto Project Revenue Recording

3. Auto Statutory Liability

4. Capturing All Department Data in System

5. Ability to Adapt to New Statutory Changes

TOC / CCPM as Business Technology

TOC (Theory of Constraints)

Profit Increase by Reducing Operating

Expenses

Profit Increase by Increasing Sales

CCPM (Critical Chain Project Mngt.)

Simple Project

Task 1: Business Opportunity & Land

Acquisition

Task 2: Govt Approvals for Sales

Task 3: Presales & Sales

Task 4: Govt Approvals for Construction

Task 5: Construction

Task 6: Project Handover

Simple Project After Resource Alignment

Task Duration Each: 8 months

Total Project: 40 months / 3 years & 4

months

CCPM (Critical Chain Project Mngt.)

Simple Project with Critical Chain

Look for the longest chain of dependent

events, but include resource dependency.

Task Duration

According to research, 50% task time is

focused time and 50% task time is security

buffers for unexpected

Our target is not to complete each task on

time, but Project on time

CCPM (Critical Chain Project Mngt.)

Critical Chain with 75% Time

Remove the 25% security buffers for every

task

Project Duration is 30 months / 2 years & 6

months

Critical Chain showing remaining buffers

Showing 25% buffers still remaining in every

task

CCPM (Critical Chain Project Mngt.)

Critical Chain with separate buffers

Estimation is more accurate when safety

buffers combined for all tasks

Critical Chain with aggregate buffers

Complete projects on-time every-time using

focus on buffers (Red/Yellow/Green)

In Japan, all govt. projects are available only

for CCPM certified construction companies

One Real Estate company in practice,

completes one project every 16 days using

CCPM techniques and consultants

CCPM in Multi Project Environment

Two projects with multi tasking

Each task done in parallel

First project will complete on 60th month

Second project will finish on 62nd month

Two Projects Without Multi Tasking

Staggered around the most loaded resource

First project will complete on 30th month

Second project will complete on 38th month

Apply CCPM to achieve target as actual for

Sales, Construction and Business

Development

Future Roadmap for ERPs

Goal: Global Excellence of Our Real

Estate Sector

ERP Future

1. International Accounting Standards

2. Easy Customisation for new Strategies like CCPM

3. Continuous Innovation in Speed and Graphics

4. Self Service Portals & Apps for : Customers, Vendors,

Employees, Management & Investors

5. Cloud & Mobility for Every Device

6. Analytics for Decision Making

7. Artificial Intelligence

–Ashvin Gami (B.Tech, IIT Bombay)

Images Source: http://www.dbrmfg.co.nz/

Company Website: http://www.strategicerp.com

“Thanks.”