3 questions that reveal the true cost of ownership for IWMS

In the rapidly evolving landscape of real estate technology, Integrated Workplace Management Systems (IWMS) play a crucial role. Understanding and planning for the true cost of ownership (TCO) for these systems is vital for strategic investment and maintaining a resilient technology stack. This article explores three essential questions that reveal the often-overlooked aspects of IWMS ownership costs.

While licensing fees are a significant component, they’re just the tip of the iceberg. Organisations must consider the following investments:

• Upgrade expenses
• Support and maintenance costs
• User adoption and ongoing training
• Enhancements to meet evolving organisational needs and processes
• Infrastructure performance and downtime costs
• Integration with corporate data lakes
• Information security audits
  
  

Failing to account for these long-term expenses can lead to technological obsolescence and lack of adoption, leading to expensive system replacements instead of manageable upgrades.

Many organisations evaluate costs annually, but this approach may miss critical insights. Implementing a more frequent business review can:

• Assess IWMS effectiveness in supporting business goals
• Improve reporting and data capture
• Identify optimisation opportunities
• Accurately gauge upgrade and maintenance costs

Regular performance data gathering allows for more informed decision-making and potentially significant cost savings.

Consider the cost of running your IWMS not just for the next year, but for the next five or ten years. To get an accurate estimate, you need to account for the costs of adopting new technology, training/adoption, enhancements and proper maintenance.

When organisations fail to budget for these sustainment investments, their technology and capabilities begin to fall behind the curve, making them vulnerable to critical systems needing full replacements.

To optimise TCO, organisations should consider:

• The growing complexity of IWMS and reporting needs
• The suitability of on-premises vs. cloud-based solutions
• The potential benefits of partnering with a service provider to share responsibilities and costs

By addressing these factors, companies can streamline operations and reduce unnecessary expenses.

Once business leaders understand the true cost of operating their IWMS, their next line of thinking is usually how to lower those costs. If that’s where your organisation is, here’s another set of questions to consider:

• Are the organisation’s needs around IWMS and reporting becoming more complex?
• Does on on-premises or cloud-based solution make the most sense for my organisation?
• Could the organisation benefit from sharing responsibilities and costs with a service partner?

At JLL, we help organisations answer these questions and build business cases for action.

A comprehensive understanding of IWMS true cost of ownership empowers organisations to make strategic investments and maintain cutting-edge technology solutions. By looking beyond licensing fees and considering long-term sustainment costs, implementing year-round performance monitoring, and addressing operational inefficiencies, businesses can optimise their IWMS investments for years to come.

For expert guidance on measuring and managing IWMS true cost of ownership, consider reaching out to specialised technology partners who can provide tailored solutions to your organisation’s unique needs.