PropTech: The 3 most important Success Drivers
What does it basically take to be successful as a startup in the digitization of the real estate industry? On the one hand, this is the underlying technology and, on the other hand, the corresponding business model - supported by a megatrend with great potential for demand.
According to the Gartner Hype Cycle, every new technology is initially subject to high or exaggerated expectations. After a “cycle of disappointment” follows a “phase of enlightenment”, from which solutions then arise at a realistically increasing level of productivity. Data science, robots and drones, virtual and augmented reality or artificial intelligence are just a few of these basic technologies. The blockchain is one of the last technological hype triggers. We will see promising developments and use cases in these areas over the next few years.
The challenge for a PropTech company is to develop a successful business model or product or service with the corresponding problem-solving potential and scalability from one of these basic technologies. In this context one often hears terms like SaaS or DSaaS. “Software as a Service” (SaaS) is a cloud service model in which applications and data are located in the cloud and thus on the PropTech provider's servers. With “Data Science as a Service” (DSaaS), the data supplied to the cloud is processed by the provider, analyzed using an algorithm and fed back to the customer as findings.
But this is only one side of the coin. The established companies in the real estate industry must also recognize the added value of these products and services and be prepared to pay for them. The driver for real estate entrepreneurs will certainly be the cost and efficiency side, but also or above all the needs of their customers. Anyone who aligns their business model to a megatrend – such as sustainability, big data or future work – is fundamentally not wrong here.
You can find out more about successful business models here:
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