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SAP Flexible Real Estate

The Business Challenge

Most organisations are looking to improve the management of their property portfolios, because there are key issues that are impairing effective control.

Procedural issues:

• Business owners not being able to exercise accountability for their part of the property portfolio
• High proportion of aged debts due to lack of financial standardisation
• One-dimensional vacancy minimisation activity with no ability to focus on high value and volume concurrently
• Absence of timely visibility of property revenue and costs to the wider business
• Poor tenant relations due to Credit Control managing relationships
• Poor customer service due to slow processes
• Inability to use best practice processes due to isolation of property management activities

Business system issues:

• Issues in meeting legal requirements due to inflexible software
• Expensive Multi-system reconciliation activities
• Disconnect between property maintenance, asset management planning and rental accounting
• Inability of existing systems to allow surveyors to exercise full control over portfolio management
• Poor trend analysis availability due to finance and property systems existing on multiple systems
• Lack of visibility for property portfolio managers to release the potential of corporate synergies due to system constraints

How can Logica help?
Logica’s SAP real estate solution is built with these issues in mind. It delivers best practice real estate processes leading to efficient and effective property portfolio management. How?

• Integration of buildings and land assets with their associated location and condition data
• Automatic inclusion of all property in the financial fixed asset register
• Real time posting of detailed costs and revenues to cost centres
• System and data integration based on SAP’s Real Estate solution

Integration or Stand alone?
Logica encounters customers already running SAP, who are considering a “Stand alone” Property Management system, without recognising the capability within SAP for Real Estate Management. Often the primary consideration is implementation cost, which on a straight comparison makes a stand alone route look preferable.

However when hidden ongoing costs are exposed (creation and maintenance of interfaces, multi system support and licensing) and the value of integration benefits is realised, the SAP approach becomes a cost effective proposition:

The attractive benefits profile from SAP shows much quicker payback and increasing benefit reward into the future. Primary issues of stand alone packages are the interface and system support and maintenance costs. These disappear when the corporate SAP system is used.

Release your property portfolio’s potential
Logica can share its considerable experience of releasing benefits and driving out their financial value through implementation and beyond with our customers. We draw on our own property management professionals to critique our solutions and keep us relevant to property law requirements in all parts of Great Britain.

Logica has worked with a number of private and public sector organisations to deliver effective property management solutions based on SAP. We are one of the first partners in the UK to successfully implement SAP’s Flexible Real Estate solution.