My Colleague, Sumit Nawathe, shared a link of an article by Frost & Sullivan. The subject of the article was Keys to the Future of FM: Energy Management, I read the article and it got me thinking.
Some of the interesting takeaways from the article are:-
1. How digitalisation is shifting the way in IFMS contracts are done, more towards “performance contracts”.
2. The opportunity that IFMS companies have in helping clients reap investments on Energy Management and going beyond the usual services. (Opportunity to increase earnings/customer, most important KPI for the account manager!).
Most people in the IFMS industry would know it, but the question is how can they get it right?
Some tough questions that need to be addressed by the IFMS companies!
1. Is the competition to gaining share in the Energy Management/Service markets only limited to/from IFMS Sector Companies?
We do not think so, in evolved markets IFMS companies are likely to compete with Utilities/Retailers, Telecom Companies and IoT/Technology companies for the same space.
2. Build vs Buy- What's good for the #IFMS sector?
It's important that the process IP is retained and monetised in a way that it allows the #IFMS company to gain competitive advantage and yet bring revenues from non competing markets. That's precisely why IFMS companies need to do have better sides of (both) Build vs Buy narrative. How many are doing it? Well, a handful.
Where would companies feel the heat (most) if they don’t reinvent themselves NOW!
We believe that it's the competitiveness to make winning bids (for long term performance driven contracts) that would be the most important KPI from CXOs perspective. That is why while Energy Management may seem to be trivial for IFMS companies but it isn’t by any stretch of the imagination.