AI and digital twins are transforming how businesses manage and understand physical spaces, with Archilogic leading in spatial data solutions for commercial real estate.
Every day, it seems like a new technological development is poised to redefine our existence. The pace of digital transformation is unrelenting.
But while individuals may struggle to keep up with innovation, businesses don't have the luxury of falling behind. It's no longer enough to "move at the speed of innovation." That might even be the minimum speed at which an organization needs to operate in order to stay competitive. Success requires a proactive, not reactive, approach.
This shift towards rapid innovation has given birth to what's known as "Industry 4.0," the fourth industrial revolution characterized by the intertwining of physical and digital technologies. Industry 4.0 represents a new stage in organizational development, one where AI and advanced spatial data analysis become pivotal.
These two forces are set to redefine the way we interact with the very structures in which we live and work. Blurring the lines between the tangible and virtual, they are now setting the stage for a holistic reimagining of how we live, work, and interact with our environment.
As assets are increasingly digitized and moved to the cloud, businesses need better tools to navigate the space between the digital and physical worlds. Enter innovations like digital twins. These digital replicas of physical entities have the ability to change how people manage, utilize, and understand spaces.
The Current State of Commercial Real Estate
Those who own even the most diversified CRE portfolios are grappling with several challenges at the moment. Among them are:
- The management of debt amidst fluctuating interest rates.
- Valuation challenges due to market uncertainty and changing real estate dynamics.
- The pressure to renegotiate lease agreements in response to evolving business and tenant needs.
- The need to reassess location decisions in light of shifting population demographics and remote work trends.
- Shifts in workplace design to accommodate hybrid working models and health and safety considerations.
- The demand for repurposing underutilized buildings to optimize assets and return on investment.
- The increased expenditures needed to adapt buildings to comply with ESG standards and sustainability demands.
- The necessity to embrace digital innovations to enhance building management and tenant experience.
Despite these challenges, the CRE industry reports optimism regarding global, national, and individual company prospects. An analysis by JP Morgan found that only 15% of real estate leaders believed the speed of innovation to be among their top concerns going into 2023. Instead, they lamented a lack of affordable housing in the surrounding urban areas and supply chain issues.
Staying Ahead in the Digital Transformation Era
We can't predict what forces will impact an industry or how they will affect the physical spaces we occupy. That's why organizations must reimagine their operations to go beyond adaptation and actively drive innovation - so they can stay behind the wheel and steer themselves toward a customized solution.
In the shift toward Industry 4.0, AI, spatial data, and digital twin technologies become instrumental. That's because creating accurate virtual representations of physical spaces offers a powerful tool for managing change, enabling data-driven decision-making, and fostering further innovation.
Let's use the example of an office building. You can't just physically rearrange components in the building every time you need to test a new layout, right?
Here's where the true power of a digital twin comes into play. Imagine the convenience of having an accurate digital twin of the building that could help facility managers strategize layouts and even simulate various what-if scenarios. This includes performing activities like:
- Testing potential renovations digitally before committing resources.
- Planning for emergency evacuation routes and safety procedures.
- Visualizing the impacts of staggered work schedules and traffic patterns on energy consumption.
Even radical undertakings such as a complete building redesign or repurposing can be modeled and tested virtually to minimize risk and waste.
Optimizing Office Buildings with Digital Twin Technology
The 2023 U.S. Office Report shows that CRE owners and investors are still under pressure. If they're going to make their buildings more attractive to potential tenants, they will need to create more dynamic spaces.
Buildings must be outfitted with technology that can accommodate innovations in multiple sectors. This could involve smart building solutions like digital twins, IoT sensors, AR/VR, and others that bridge the gap between digital data and physical environments.
Advancements in digital real estate solutions don't just change how we collect, process, and use data - they change how we understand and interact with physical spaces. For example, advanced spatial data (like the layout of a building or the movement of people within an area) lets CRE leaders:
- Gain new insights into how buildings are used.
- Use data to facilitate operational improvements and increase efficiency.
- Enhance tenant experience by personalizing everything from access control to temperature.
- Optimize environmental factors like air quality, noise levels, and lighting.
- Gain real-time insights into energy consumption.
- Keep a digital eye on the condition of essential infrastructure elements like HVAC systems or electricity grids for predictive maintenance.
- Create safer buildings with improved access control and contactless interfaces.
- Influence how buildings are constructed in the future for smarter, more sustainable development.
Digital Twin Technology Maximizes Manufacturing Efficiency
Now, let's think about the complexity of a manufacturing plant and all of its moving parts and workflows. These facilities were thrown into disarray as supply chains faltered at the height of the pandemic (and some are still catching up).
Optimal efficiency requires precise orchestration in the best of times. So, how can facilities managers use smart building innovations to cope with delays and bottlenecks?
Consider the value of having a perfect digital twin of an entire manufacturing plant, from the front door to the loading dock. This three-dimensional clone can be accessible at the touch of a button, perfectly in sync with its real-world counterpart. Not only would it allow a facilities manager to gain all of the advantages above, but they could become maximally resilient in the face of disruptive events thanks to their ability to:
- Simulate rearrangements of equipment and personnel to optimize logistics, space usage, and work efficiency.
- Identify where adjustments might need to be made to accommodate shifts in supply chains or market demand.
- Use real-time data from IoT sensors to monitor equipment performance, predict necessary maintenance, minimize downtime, and create safer work environments.
- Pivot production in the event of significant supply chain disruptions by using their digital twin to plan and visualize significant changes.
- Track energy usage across the plant and identify opportunities to conserve energy and reduce emissions to contribute to overall sustainability goals.
Integrating AI for Next-Generation Digital Twins
The 2023 State of Manufacturing survey revealed a growing focus on innovation, with 49% of leaders prioritizing it, up from 38% last year. However, this pursuit of innovation doesn't come without challenges. The survey reported that 94% of companies face barriers, chief among them being an anticipated shortage of skilled labor. In light of this, an increasing number of companies are turning to AI solutions as a potential countermeasure, indicating a strategic shift towards technology as a tool to cope with these challenges.
One place we're likely to see more AI integration is with digital twins. For example, AI systems thrive on data, and a digital twin provides an abundance of it. Real-time, accurate data feeds AI algorithms, enabling them to make more informed decisions, automate processes, and improve forecasting accuracy.
Through the AI-enabled digital twin, facilities managers can also simulate workflows and streamline operations to reduce pressure on employees and enhance their productivity. They can also experiment with new processes, layouts, or machinery, then simulate changes and test them in the virtual environment to reduce risk as well as the time from conception to execution.
Cutting-Edge Digital Twin Deployment in Commercial Real Estate
Maybe you're thinking, "All of this sounds fantastic, and I want to stay ahead of the innovation curve." But it's all too common to find oneself stuck, shackled to the pre-launch phase, wrestling to comprehend the nuances of the technology and the intricacies of its implementation.
Many CRE firms and facilities managers are still grappling with data quality and availability, system integration issues, and problems with scaling their tech initiatives. And this is where Archilogic comes in. We can address many of the challenges involved in converting 2D floor plans and 3D digital models.
Choosing Archilogic for Spatial Data and Digital Twin Platform Solutions
Archilogic's advanced technology can generate detailed and accurate spatial data, no matter how complex or large a space might be. And there's no need for complex CAD or even BIM renderings to create the twin. (There's also no reason facilities managers should settle for renderings that weren't designed for facilities management in the first place!)
[See the benefits of visualizing data in real-time.]
Our digital twin management technology is also compatible with various other systems and technologies, which helps overcome integration issues. It's designed to connect with other smart building technology and Real Estate Management platforms, increasing the value of existing systems by adding spatial context. Archilogic's compatibility with IWMS offers more accurate space planning, better facility management, and more precise asset tracking.
Archilogic Digital Twins can be created for office buildings and manufacturing plants but are also relevant for hospitals, schools and universities, retail spaces, mixed-use buildings, warehouses, distribution centers, and data centers, to name a few. And as a cloud-based solution, Archilogic is inherently scalable. So whether you're digitizing a single building or an entire portfolio of properties, the platform can handle the volume.
Future-Proofing Your CRE Portfolio with Archilogic
Innovation requires change. Yet, some people still think embracing innovation equates to overhauling existing systems and processes every few months. This misconception often results in relentless, exhausting, and costly endeavors that yield little to no success.
Successful future-proofing isn't about undergoing continuous, radical transformation until everyone burns out. Instead, it's about having a keen understanding of the unique challenges within your industry, the ability to envision creative solutions to these problems, and collaborating effectively with technologists to enhance your organization's engagement, productivity, and overall growth.
Companies hoping to scale up their AI readiness and use technology to go beyond the competition need new ways of thinking about their assets. That's why digitizing them in a way that allows you to move from platform to platform to get the most out of your data will soon be the new normal.
Are you ready to jump ahead of the competition and explore how Archilogic's platform can aid in future-proofing your commercial real estate portfolio? Schedule a demo with us today.