The Early Bird

01 Jun 2011 Editorial Team

Highbar Technologies provides the latest early bird IT solution for real estate companies across India..

With the growth of opportunities in the real estate business, the complexities are increasing and so are customer expectations and the competition. In view of this, the available human resources and related processes are going to be a major bottleneck. In such a scenario, it is important for companies to develop in-built intelligent mechanisms in their processes, which will in turn alert the company's management of deviations from the standards. This is where information technology (IT) can play an important role in making these early warning systems human-independent, effective and accurate.

A pressing need

For a real estate project to be successful, it is very important that the project be completed within the planned timelines and budget, at the same time, achieving the desired quality. Any deviation from the plan or schedule, like non-availability of key material or sub-contracting resources, etc. should be conveyed to the concerned authorities to facilitate timely corrective action. Digitisation of data is an important step towards this. With the help of a world-class ERP system like SAP, it is possible to get the business processes of a company on a single platform and get a holistic view of projects across the company. Rules can also be set in the system in case of deviations, and alerts can be generated as desired. In fact, with the advent of technology, especially mobile phones, it is now possible to send alerts in the form of emails or mobile messages, and it is through such steps that CFOs can receive an SMS in case the gap between the projected payables and receivables exceeds a pre-defined limit or slippage in projected profitability goes beyond a certain level. Similarly, various kinds of early warning mechanisms can provide a holistic view of the entire project in terms of project progress, costs, materials and resources.

Periodic dashboards to the management on the number of units sold versus those available across projects or planned acquisition of land versus actual land acquisition can act as indicators of progress in a project and provide early warnings wherever action is required. Analysis of lost deals and alerts can be an important input to the sales and marketing department.

Also, there are a number of statutory requirements that need to be fulfilled; IT can help in developing in-built system alerts for various statutory requirements related to various high risk instruments such as insurances, bank guarantees, letter of credit, power of attorney, tax payments, etc.

Use effectively

The most important step is to make alerts effective, hence identifying the business areas where an early warning is a necessity. The next step is to define the audience that should receive these alerts. For example, an immediate alert on a cheque bounce should go to the accounts department, whereas a monthly summary of all such cases can be an alert for the management.
Early warning systems can be developed for any challenge, priority of which needs to be decided based on its severity. The key is to understand the business needs and the risks and build mechanisms to mitigate them, in which IT can play a crucial role. Today, the quantum of investment in these IT tools to reach these world-class efficiency levels is not very significant as compared to the size of a business, or the value that these tools deliver to such a business.

(Communication by the management of the company)

Highbar Technologies provides the latest early bird IT solution for real estate companies across India.. With the growth of opportunities in the real estate business, the complexities are increasing and so are customer expectations and the competition. In view of this, the available human resources and related processes are going to be a major bottleneck. In such a scenario, it is important for companies to develop in-built intelligent mechanisms in their processes, which will in turn alert the company's management of deviations from the standards. This is where information technology (IT) can play an important role in making these early warning systems human-independent, effective and accurate. A pressing need For a real estate project to be successful, it is very important that the project be completed within the planned timelines and budget, at the same time, achieving the desired quality. Any deviation from the plan or schedule, like non-availability of key material or sub-contracting resources, etc. should be conveyed to the concerned authorities to facilitate timely corrective action. Digitisation of data is an important step towards this. With the help of a world-class ERP system like SAP, it is possible to get the business processes of a company on a single platform and get a holistic view of projects across the company. Rules can also be set in the system in case of deviations, and alerts can be generated as desired. In fact, with the advent of technology, especially mobile phones, it is now possible to send alerts in the form of emails or mobile messages, and it is through such steps that CFOs can receive an SMS in case the gap between the projected payables and receivables exceeds a pre-defined limit or slippage in projected profitability goes beyond a certain level. Similarly, various kinds of early warning mechanisms can provide a holistic view of the entire project in terms of project progress, costs, materials and resources. Periodic dashboards to the management on the number of units sold versus those available across projects or planned acquisition of land versus actual land acquisition can act as indicators of progress in a project and provide early warnings wherever action is required. Analysis of lost deals and alerts can be an important input to the sales and marketing department. Also, there are a number of statutory requirements that need to be fulfilled; IT can help in developing in-built system alerts for various statutory requirements related to various high risk instruments such as insurances, bank guarantees, letter of credit, power of attorney, tax payments, etc. Use effectively The most important step is to make alerts effective, hence identifying the business areas where an early warning is a necessity. The next step is to define the audience that should receive these alerts. For example, an immediate alert on a cheque bounce should go to the accounts department, whereas a monthly summary of all such cases can be an alert for the management. Early warning systems can be developed for any challenge, priority of which needs to be decided based on its severity. The key is to understand the business needs and the risks and build mechanisms to mitigate them, in which IT can play a crucial role. Today, the quantum of investment in these IT tools to reach these world-class efficiency levels is not very significant as compared to the size of a business, or the value that these tools deliver to such a business. (Communication by the management of the company)