The rapid change in technology has brought a fundamental shift in the control and management of business operations over the last decade. The emergence of these technologies has seen new models and processes being adopted and running various activities in the business arena.
The real estate business has also progressed over the years to catch up with innovations and inventions. I am a senior Retail specialist at Progressive Real Estate partners located in Rancho Cucamonga, California. Progressive Real Estate Partners is a commercial real estate company that focuses on the sale and leasing of retail properties. The company is also involved in retail transactions, Investment Sales, Retail Brokerage, Retail leasing, Tenant representation, and Restaurant Leasing.
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My company has been adopting technologies such as augmented visual reality, machine learning algorithms, and building technology. The two technologies incorporated and running the business are; the blockchain technology and vision property intelligence.
Blockchain technology refers to a whole distributed suite of ledger technologies that can be programmed and record data to be stored on servers and track anything of value. The company uses blockchains when tokenizing the assets. For instance, when a property owner decides to represent his/her share of property assets by using digital tokens, each update of the ledger is linked to a state hence creating fixed records for tracking transactions and investments. (Garcia,2018).
This model has brought several benefits to the company, the employees, and the customers. To the company;
COST SAVING
Every computer connected to a blockchain network saves a copy of the ledger. Therefore, making it very fast to retrieve information. The company can save on the cost of
Employing many IT, data employees and intermediaries, as well as save on the cost of risk in case information, was accidentally lost.
TRANSPARENCY
Once data has been entered in a blockchain, it is immutable. Information concerning the building performance, all the leases, taxes, and property transactions have their address where they are stored. The company feels confident knowing that their customers' information is kept safe and transparent. Property ownership records are secure, and their information is only accessible to them. olThis builds trust and transparency with the customers.
TO CUSTOMERS:
SMART CONTRACTS
These contracts allow the customers to choose their payment depending on certain conditions stipulated. Hence leasing or rental agreements can be executed automatically, and the customers' bank account gets to pay for their utility bills for the period agreed, which makes the customer's transactions more cheap, transparent and saves time.
FAST TITLE TRANSFER
Title transfer for a long time has been a hectic and slow process. With blockchain, ownership transfer is operated online by distributing the ledger as a way of registration. The customer gets to claim their title within a short period.
TO THE EMPLOYEES:
FASTER TRANSACTIONS
Employees find it very easy to create and audit lease contracts and transactions. The documents are all saved at their different addresses which makes them easy to access without
Complications. All real estate deals are conducted online; hence they can work faster and smoother.
REDUCING FRAUD RISK
Employees are held accountable for all that goes on with the documents and data on the computers. Old transactional methods experience a lot of fraud and forgery. Blockchain increases data security, which helps prevent fraud from intermediaries. Hence employees feel secured.
With all these benefits challenges have also been experienced;
To the company:
REGULATORY ISSUES
Blockchain transactions have brought many gaps since the real estate business is rigorous and sensitive, with many regulations in place by the financial and banking sectors. Therefore as much as it may seem transparent, rules and complications from these connected sectors hinder the company.
REJECTION FROM INTERESTED SECTORS.
There are many sectors, such as real estate agents and registry sectors, who will be knocked off when the company chooses to use blockchain. Hence they pose a lot of resistance and negative reviews towards blockchain. Some customers then fear to use technology.
To the customers:
1. REGULATIONS
Blockchain technology seems to have minimal regulations and laws protecting the customers compared to the traditional methods. Users cannot delete their data if they so wished. Once the information is saved, the customer loses their data control.
To the employees:
ELIMINATION OF INTERMEDIARIES
Intermediaries are a large part of the traditional real estate methods. With blockchain, intermediaries play a minor role as transactions are conducted directly and online.
DATA TRANSFER
It is quite difficult transferring extensive real estate data and huge title records. To digitalize analog data would require a lot of effort from the employees.
SERVICE GAPS
The difference between the ideal service that the customer needs and what the customer expects. Very high expectations of the customer influence this gap. For instance, the customer may pay for a 10-acre land in Arizona for farming, but find other expenses such as irrigation are needed because Arizona is dry land.
CUSTOMER SERVICE GAP
The imbalance between what the consumer expected and his or her perception of what was received. The gap is influenced by consumer's misinterpretation of the service quality. For instance, if the company keeps calling to confirm the data is correct and asks for some additional fee to secure the client's data, the client may get suspicious and question the services provided.
THE PERCEPTION GAP
The difference between what was delivered and the customer's perception and over expectations.
KNOWLEDGE GAP
The distance between the services the consumer needs and what the company perceives to be the consumer's need. This gap is influenced by intermediaries and agents not being aware of customers' expectations. For instance, agents may think clients want a speedy title process, but consumers want a secure platform to store their data.
The solution to narrow the gap would include survey research to understand and be aware of the clients' needs. The company could take surveys, web data analytics, engaging in customer research, building a relationship with the customer through communication platforms.
THE STANDARD GAP
The difference between what the company perceives as the consumer's need and the company's choice of service specifications. This is influenced by poorly setting standard performance. For instance, understanding that consumers need a speedy lease process but not knowing how fast they need it.
The gap can be closed by regularly updating policies and setting quality achievable goals.
THE DELIVERY GAP
The difference between the company's perception of customers' expectations and the actual customer service specifications. The gap is influenced by a lack of product knowledge by the employee, poor human resource management, and inability to deliver quality services by employees.
THE INTERNAL COMMUNICATION GAP
The imbalance between the company's promised service and the promotional advertisement received. This is influenced by assumed expectations not being met. There are little communication and information passed between the operations and advertising teams. Th companies also overpromise but do not deliver. For instance, if the company in their brochure promised a discounted fee, but in reality, there is no discount.
KNOWLEDGE GAP
The difference between the interpretation of communications advertisements presented and the expected service from the company. This gap is influenced by the managers' unawareness of correctly interpreting customer expectations concerning the company's service products. It is also seen through a lack of customers and the agents' interaction.
Closing the gap could be done through increasing interaction between the management, staff, and customers as well as conducting customer research. (Nargunde,2013)
THE POLICY GAP
The difference between management perception and service quality specifications. This is as a result of companies finding it hard to translate the service policies into rules and guidelines to be followed. There is poor service design and not updating customer standardization. Customers may be forced to seek better service elsewhere. The company should set and communicate on the actions to reaffirm quality standards. The company should also set clear goals and regularly update the policy standards.
PERFORMANCE GAP
Difference between the quality specifications and the service delivered. This is influenced by inadequate training and intermediaries not willing to meet market demands.
To close the gap, companies should review their human resource activities and job screening for candidates.
ASSESSING THE DIGITAL BUSINESS MODEL.
| ASSESSING BUSINESS MODEL | NOW RATINGS |
3 YEARS FROM NOW |
|
| CONTENT | Who is consumed? | 8 | 1 |
| EXPERIENCE | How is packaged? | 7 | 2 |
| PLATFORM | How is it delivered? | 7 | 1 |
ASSESSING THE DIGITAL BUSINESS MODEL CONTENT
Progressive Real estate generates about 9,000 dollars in online revenue monthly. Most customers find smart contracts in leasing and renting to be quite valuable. Smart contracts eliminate bureaucracy and intermediaries' increasing speed of real estate transactions. With its transparency, all the information needed is easily transferable.
Other content that I would provide the customer would be tokenization, where a single property is represented on a digital asset on the blockchain system. Customers would value this because it would allow them to increase their valuable assets.
Responsibility for content in progressive real estate has no central authority. For content negotiation, and leasing control is by an open blockchain network. Different groups being in charge of digital products can lead to fraud, confusion, and a slow process.
EXPERIENCE
The company's customer experience is proactive with increasing retention, which proves customer satisfaction. Blockchain has provided better customer experience through increased accountability and security of people's data and speed. At the same time customers have been frustrated by the fact that once their data is keyed in, no corrections can be made or canceled
The best customer experience in the real estate industry is by Savills, through implementing a catchy visual and Keller Williams Realty. (Aquino,2017).
PLATFORMS
The internal digital platforms are owned by the digital managers in charge, which have been very helpful in providing better services while saving on the costs. By bringing customers needs directly to them, matching promotional advertisements with customers' needs, and decreasing the costs, more customers would be interested in trying the platforms. My partner platforms are mostly traditional involving intermediaries. Some are using the artificial intelligence platform.
HOW CAN THE DIGITAL BUSINESS MODEL BE IMPROVED?
Through supportive regulations in areas such as smart contracts, some of the conditions provided could exploit consumers and hinder investment.
More collaboration in the space and encouraging standardization to help reduce complexity between networks.
Decentralization of network and accessibility to the broader public.
REFERENCES
Aquino, J. (2017). How blockchain ill unpend the customer experience.
https://www.ttec.com/articles/how-blockchain-will-upend-customer-experience
Garcia, A (2018, October 6 ).This is blockchain and here is why it matters. CNN BUSINESS https://edition.cnn.com/2018/10/03/tech/blockchain-explainer/index.html
Nargunde,S.(2013).Servicegaps.IJMjournals http://www.iaeme.com/MasterAdmin/Journal_uploads/IJM/VOLUME_7_ISSUE_5/IJM_07_
05_011.pdf
Garcia, A (2018, October 6 ).This is blockchain and here is why it matters. CNN BUSINESS https://edition.cnn.com/2018/10/03/tech/blockchain-explainer/index.html
Nargunde,S.(2013).Servicegaps.IJMjournals http://www.iaeme.com/MasterAdmin/Journal_uploads/IJM/VOLUME_7_ISSUE_5/IJM_07_
05_011.pdf
