Real Estate Firms IT Systems Study Benchmarking Insights

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Benchmarking Insights
PwC’s asset management perspectives and analysis
Real Estate Firms
IT Systems Study
February 2014
Table of Contents
Real Estate Firms: IT Systems Study Results
PwC
Page
Organizational Overview
3
General Ledger Systems Overview
8
Accounts Payable Systems Overview
14
Business Intelligence Overview
18
2
Organizational Overview
PwC
3
Organizational Overview
Data from 42 real estate firms is included in this study.
Property Sectors of Participants
Market Cap Range of Participants
50%
Healthcare
7%
Mortgage REIT
5%
45%
40%
35%
Retail
7%
33%
31%
30%
25%
Residential
12%
Lodging/
Resorts
17%
Industrial/
Office/Mixed
52%
19%
20%
17%
15%
10%
5%
0%
Less than $1
Bn
PwC
$1 to $5 Bn
$5 to $10 Bn
Greater than
$10 Bn
4
Organizational Overview, cont’d
# of People in IT Organization, by Sector
# of IT Personnel
100%
90%
Greater than 30
10 to 30
Less than 10
100%
% of IT Personnel
80%
70%
60%
50%
50%
50%
50%50%
42%
40%
32%
30%
33%
25%25%
26%
20%
33%33%33%
17%
10%
0%
PwC
Industrial/
Office/Mixed
(22)
Lodging/Resorts
(7)
Residential
(5)
Retail
(3)
Sectors
Healthcare
(3)
Mortgage REIT
(2)
5
Organizational Overview, cont’d
# of People in IT Organization, by Market Cap
# of IT Personnel
Greater than 30
60%
56%
10 to 30
% of IT Personnel
Less than 10
50%
50%
43%
40%
38%
36% 36%
30%
29% 29%
27%
22% 22%
20%
13%
10%
0%
Less than $1 Bn
(13)
$1 to $5 Bn
(14)
$5 to $10 Bn
(8)
Greater than $10 Bn
(7)
Market Cap Range
PwC
6
Organizational Overview, cont’d
Title for Head of IT Department
45%
Reporting Line To...
44%
45%
41%
40%
40%
35%
35%
30%
30%
24%
25%
25%
20%
20%
15%
15%
11%
5%
0%
PwC
11%
8%
10%
3%
3%
15% 15%
9%
10%
5%
6%
3%
3%
3%
3%
0%
7
General Ledger Systems Overview
PwC
8
General Ledger Systems Overview
General Ledger Systems Used
Other*
12%
PeopleSoft
5%
MRI
23%
MS Great
Plains
5%
Lawson
5%
Solomon
7%
CTI
9%
PwC
JD Edwards
23%
Yardi
Voyager
12%
* “Other” includes the following systems: Geneva, Hyperion, IBS, Oracle Financials, Timberline
9
General Ledger Systems Overview, cont’d
GL Systems - Internally Hosted vs.
Outsourced, by Public vs. Private
Are GL Systems Internally Hosted
or Outsourced?
Internally
Hosted
79%
100%
Internally Hosted
90%
80%
Application Service Provider
80%
78%
70%
60%
50%
40%
30%
Application
Service
Provider
21%
PwC
22%
20%
20%
10%
0%
Public
Private
10
General Ledger Systems, by Sector
Industrial/Office/Mixed
Lodging/Resorts
Residential
40%
39%
29%
17%
13% 13%
14%
9%
4%
Retail
40%
29%
14%
20%
14%
4%
Healthcare
Mortgage REIT
67%
50%
33%
PwC
33%
33%
50%
33%
11
General Ledger Systems, Public vs. Private
GL Systems - Public vs. Private
35%
Public
Private
30%
30%
24%
25%
20%
21%
20%
20%
15%
15%
12%
10%
9%
10%
6%
10%
10%
6%
5%
3%
3%
0%
JD Edwards
MRI
Yardi
Voyager
CTI
Other
Solomon
PeopleSoft
Lawson
MS Great
Plains
12
PwC
General Ledger Systems Overview, cont’d
Out of the 42 real estate firms, 14 use a property management
system separate from their general ledger system
Sector Breakdown
Market Cap Breakdown
Greater than
$10 Bn
14%
Retail
7%
Industrial/
Office/Mixed
36%
Residential
29%
Lodging/
Resorts
29%
PwC
Less than $1
Bn
36%
$5 to $10 Bn
14%
$1 to $5 Bn
36%
13
Accounts Payable Systems Overview
PwC
14
Accounts Payable Systems Overview
Accounts Payable Systems Used
Other
37%
Yardi PayPlus
19%
AVID Exchange
14%
OpsTechnology
5%
Nexus Payables
5%
PwC
MRI
7%
JD Edwards
14%
* “Other” includes the following systems: AMSI ePO, Counselink, CTI, DocuSphere, Great Plains, Lawson,
Market Basket, MCAP, Oracle Financials, Oracle IPM, PeopleSoft, Salesforce, VIP-II, PayScan, Solomon
15
Accounts Payable Systems Overview, cont’d
AP Systems - Internally Hosted vs.
Outsourced, by Market Cap
Are AP Systems Internally Hosted
or Outsourced?
Internally Hosted
75%
80%
Application
Service
Provider
32%
70%
71%
67%
60%
50% 50%
50%
40%
33%
30%
Internally
Hosted
68%
Application Service Provider
25%
29%
20%
10%
0%
Less than $1 Bn
PwC
$1 to $5 Bn
$5 to $10 Bn
Greater than $10
Bn
16
Accounts Payable Systems, by Sector
Industrial/Office/Mixed
Lodging/Resorts
Residential
50%
25%
21%
17%
40%
20%
13%
17%
8%
8%
4%
Retail
17%
20%
20%
17%
4%
Healthcare
Mortgage REIT
100%
40%
20%
PwC
20%
20%
33%
33%
33%
17
Business Intelligence Overview
PwC
18
Business Intelligence Systems Overview
40% of the real estate firms have a data warehouse and a business
intelligence tool for operational and financial reporting
50%
40%
30%
20%
10%
0%
General Ledger Systems Used by Clients
with Data Warehouse
46%
Mortgage
REIT
8%
23%
15%
JD Edwards
MRI
CTI
8%
8%
Oracle
Financials
Geneva
Business Intelligence Tools Used
by Clients with Data Warehouse
Insight
17%
Other*
53%
PwC
Sector Breakdown
SQL
Reporting
Services
18%
Crystal
12%
*Other includes the following tools: Discoverer, GLI Reporting, .NET,
FASTR, WorldWriter, Hyperion, TM1, BI-Informatica, BI-Microstrategy
Industrial/
Office/Mixed
54%
Residential
15%
Retail
23%
Market Cap Breakdown
Less than $1 Bn
23%
Greater than $10
Bn
15%
$1 to $5 Bn
15%
$5 to $10 Bn
46%
19
PwC Contacts
Scott Williamson
Partner
[email protected]
Mukesh Sobhani
Director
[email protected]
Michael Moreau
Manager
[email protected]
PwC
20
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PwC
21