CAFM: Real Estate Infrastructure Management Automation System

The CAFM system assists in the use of an organization's real estate assets, reducing costs and making a profit during each phase of the building's life cycle. The use of the system is aimed at supporting strategic and operational management of facilities: all activities related to administrative, technical and infrastructure tasks when the facility or building is in operation.

CAFM as a type of solution developed in the 90s. Several dozen manufacturers around the world supply them to the market. The largest companies use these systems to manage real estate, both commercial, residential and operational. In recent years, CAFM has evolved in the United States into a new class of IWMS (Integrated Workplace Management), associated with the globalization of information system tasks for large corporate clients.

However, for the Russian market, the use of CAFM is still not typical. Domestic business is often limited to utilitarian use of office software tools (for example, MS Excel) and accounting software based on 1C systems .

Nevertheless, today there are all the necessary prerequisites for the emergence of the practice of using professional systems to ensure the main business processes of real estate management in Russia. The economic crisis, with its increased requirements for cost control, optimal use of infrastructure and resources, could also be the impetus for the start of CAFM.

As in any other industry, information systems are used most efficiently where there are significant cash flows, large amounts of information are processed and there is a need to design or support business processes.

All these signs are clearly traced in the field of property management. Suffice it to say that, according to some estimates, 30% of all financial flows in the world are directly related to this particular sector of Runka.

The following potential customers of CAFM systems can be identified in the real estate management market. First, large enterprises, including their state corporate (operating) property management units (CRES/CREM). For example, banks, insurance companies, industry, power. Then - owners, developers, investment companies in the field of commercial real estate. Service, management, FM companies also need to implement this kind of systems. Large companies with dedicated central divisions, regulations, with a strategy for long-term development, focused on large customers. And finally, enterprises in the field of housing and communal services.

Facility Management is a type of service business in which the contractor takes over all non-core activities of the client that are not related to his main activity. The client thus has the opportunity to concentrate on the main business.

CAFM systems are most widely used in real estate management. Real estate, as the most significant part of the fixed assets of enterprises and organizations, as well as a business object, for example, in development and lease, is the main object for services such as Facility Management and, accordingly, CAFM systems.

The main functions of the CAFM system are:

1. Maintenance of utility systems.
2. Resource Management and Logistics
3. Manage spaces, spaces, infrastructure.
4. Property Rental Management
5. Manage documents.
6. Manage contracts.
7. Construction, technical, fire engineering supervision
8. Help-Desk, web portal, reception service
9. Project Management.
10. Inventory of funds, infrastructure

Tasks: general and specific

What specific goals and objectives should interest our customers to invest in CAFM? Some common goals are characteristic of the implementation of practical all information systems. This is effective information management (buildings, squares, equipment, infrastructure, processes); creation of business processes (accounting, operation, cost control, risk management); improvement, control of their quality and efficiency throughout the life cycle of assets.

To make a decision on investments, clients want to clearly understand themselves and specific tasks for their specifics. I must say that they significantly depend on the attitude to the managed asset (real estate object). For example, for enterprises, the main task is to reduce operating costs, for the owner of commercial real estate - to increase the profitability of the object from rental.

Main characteristics of CAFM system

The architecture of systems of this type, as a rule, is represented by two mandatory elements - a database and a graphics application. Their interaction reflects the features of real estate infrastructure management functions. Integration of different types of applications can be solved in two ways: the integration of the database and the graphics application, or the creation of a solution based on one of the components, with a "seamless" joint with another part.

CAFM systems are represented by various technologies and sources of information, which can include object-oriented database systems, computer-aided design (CAD), building information models (BIM ), interfaces to other systems, such as computerized maintenance management systems.

Most CAFM systems have a web interface and provide a set of functions related to data planning and analysis. Data can be collected from different sources using process interfaces or human exchange processes.

The real estate infrastructure management system (Facilities Management), designed to ensure that the divisions, employees of the organization effectively carry out the main business processes, ensure the achievement of the strategic goals of the organization - in general, this is the CAFM system.

Automation Tools That Need Attention

• Online database access. These systems are the basis for managing the real estate infrastructure, providing interactive access to the database is a mandatory element of the system.
• Data integration. Here we understand the ability of the system to reuse data of different formats in different algorithms, recognition and conversion of external data for use in the system.
• Data management. The main question for the system after the formation of the initial database is to update and maintain the relevance of information over time.
• Network support. Since real estate infrastructure management needs access (including remote) to information from various users and departments, network work is a priority.
• Interactive graphics. Visualization of executed solutions in the graphical environment - on the site plan, floor plan.
• Built-in visualization. The ability to render two-dimensional floor plans in three-dimensional representation.
• Intelligent graphics. It is considered a sign of the systems of the modern generation.
• Fabrication of drawings. Supports the design and/or creation of floor plans.
• Generating reports. The availability of specialized reporting tools is an integral quality of the modern CAFM system.

Functionality of modern systems

Real estate portfolio management

• Analytical statistics on indicators of the composition and condition of real estate.
• Analytical statistics on cost and revenue indicators.
• Analytical statistics on real estate use indicators.
• Forecasting the future composition and quality of the real estate portfolio.

Property Lease Management

• Monitoring of the composition and characteristics of rental facilities.
• Budget planning of rental activities.
• Administration of leases.
• Analysis of costs and efficiency of rental activities.

Real Estate Management

• Monitoring of the composition and characteristics of the facilities.
• Monitoring the technical and operational condition of real estate.
• Strategic planning of real estate exploitation.
• Operational object-by-object planning of types and works of real estate operation.
• Administration and optimization of contractual relations with suppliers of goods and services of operation, including the provision of tenders.
• Formation and balancing of planned operational operating budgets, current adjustment of operating budgets.
• Analysis of operational operation management efficiency.
• Production planning of real estate operation.
• Organization of production activities based on the technology of work orders and scheduling, dispatching of planned works.
• Organization of the HelpDesk service, administration of requests for unscheduled works.
• Analysis of actual resources and labor productivity of workers for operation.
• Planning and analysis of efficiency of resource saving programs.
• Analysis of the efficiency of real estate operations.
• Analysis of failure characteristics and reliability indicators of structural elements and engineering equipment.

Real Estate Use Management

• Monitoring of types and types of use of real estate objects, including own subdivisions.
• Strategic planning and optimization of real estate usage characteristics by subdivisions based on placement standards.
• Planning of personnel and workplaces.
• Administration of workplace usage, including by working time.
• Administration of reservation of premises and public workplaces.
• Administer the allocation of operating costs according to the usage structure.
• Analysis of the efficiency of the use of real estate, including rental.

Move Management

• Planning for the future use of real estate based on placement standards.
• Planning the placement of workplaces.
• Planning of equipment, furniture and other assets.
• Administration of the relocation process, formation of route sheets for furniture, equipment and other assets based on modern identification technologies (barcoding, RFID).

Asset Management

• Monitoring the placement of furniture, equipment and other assets (office equipment, household appliances, etc.).
• Primary and current inventory of furniture, equipment and other assets, including at the locations.
• Administration of movements of furniture, equipment and other assets.
• Monitoring of the composition, characteristics and placement of telecommunication assets (TV, Internet, telephony).
• Administration of service, revenue and costs of telecommunications assets.
• Monitoring of the composition, characteristics and condition of transport and special equipment.
• Operational planning of transport and special equipment operation.
• Production planning of transport and special equipment operation, dispatching and loading schedules.

Service Management

• Organizing the ServiceDesk service as a single point of receipt of service requests operating in 24x7 mode.
• Administration of formation, registration and routing of applications for technical incidents, services and reservation/reservation of real estate, assets, transport and special equipment.
• Organization of a dispatching service to manage request flows.
• Management of works and services on requests based on the technology of service work orders.
• Organization of service request execution based on resource and labor scheduling.
• Analysis of the quality of the provision of works and services for service requests.

Goals and Effectiveness of CAFM Implementation

The goals and effectiveness of the implementation can be divided into several main areas. The first area: achieving functional goals, such as using systems to obtain more transparent information, improve the efficiency and quality of the planning process.

The second direction: pursuing economic goals, such as reducing costs, including as a result of savings (with competent exploitation), or increasing the market value of material assets.

Third: compliance with regulations, such as in the field of environmental protection, labor protection, etc.

CAFM in Russia

Some analysts consider 2010 to be the year of the beginning of systemic interest of large domestic enterprises and organizations in the effectiveness of corporate real estate management, including in the modern software CAFM category.

The novelty of the subject of use and the lack of practice among Russian specialists gives rise to study the experience of those who have been developing this industry for more than two decades, analyze successes and failures, and improve the effectiveness of CAFM tools. And it would be a serious mistake to copy foreign experience without professional analysis and adaptation of this experience to the conditions of the Russian economy.

2024: Russian digital real estate management systems market up 10%

In 2024, the costs of the digital real estate management systems market in Russia reached 12.6 billion rubles. This is 10.2% more compared to 2023, when expenses in this area were estimated at 11.5 billion rubles. Such data are provided in the BusinesStat study, the results of which were published at the end of January 2025.

By real estate management systems, the authors of the report mean a set of tools that provide automated control over the functioning of the building's life support systems, services for transferring objects to temporary ownership and use, as well as functions for carrying out intermediary activities. Among the significant players in the market under consideration in the Russian Federation are named Aireltor LLC, Modern Technologies LLC, TravelLine Systems LLC, M2 Real Estate Ecosystem LLC, Rubetek Rus LLC, etc.

It is noted that the COVID-19 pandemic has accelerated the process of introducing new technologies into business processes. Services for short-term rentals were most actively developed. At the same time, the expansion of domestic tourism contributed to the emergence of new hotels, sanatoriums and tourist centers. In 2020, the volume of the digital real estate management systems sector in Russia was estimated at 10.3 billion rubles. In 2021, an increase of 5.6% was recorded - up to 10.9 billion rubles.

In 2022, the revenue of industry participants decreased by 5.4% - to 10.3 billion rubles. The reason was the departure of foreign companies from Russia, sanctions from Western countries and a decrease in the purchasing power of Russians. But already in 2023, positive dynamics recovered: growth was recorded at 11.2%. Competition in the market is growing, so companies, striving to provide high quality service to their customers, are increasingly using various tools that simplify the process of booking, payment, check-in and eviction.^[1]

Who pays?

For real estate objects, the situation is characteristic with the simultaneous use of CAFM systems by at least two parties: a client (developer, owner) and a service, FM company, an internal division of a corporate organization.

To solve the question of who needs to invest (companies, internal divisions), it is necessary to clearly present the current tasks of the parties at a particular facility, enterprise.

It is important that each party can use its own specific system modules based on a single information database. For example, the customer uses a rental management module and the service company uses a maintenance module. In this case, IT investments can be recommended to be distributed among the parties according to the scope of the functional tasks.

For the Russian market, a characteristic situation may be the option of using IT as a competitive advantage for a service, FM company when participating in a tender for a real estate object. The CAFM system is considered as the company's internal production tool for creating a better management service for the customer.

One of the most attractive options on the Russian market may be to resolve this issue at the tender stage for managing a real estate object. For example, a real estate owner, as a tender organizer, can include a requirement that the service company use a CAFM system. However, it should not include all CAFM costs in the proposal.

It is also possible that a large real estate owner, a client, independently invests in the CAFM system and then forces the service, FM company to work with this product at its facility. At the same time, part of the costs, for example, for training personnel, data collection can be distributed among the parties.

The timing of the use of CAFM at individual sites should also be considered. At the same time, for Russian specifics, the owner may have a less short-term history of working with the object than a service, management company. This factor should also be taken into account when investing, taking into account the further payback, depreciation of the system.

Summarizing the topic "Who pays," any convenient schemes can be recommended, taking into account the specific tasks of the parties at a particular facility. In any case, the effect of implementing CAFM systems can be beneficial for each party in terms of both service quality and return on investment.

For the Russian market, the effect at the stage of changing the owner of real estate can be especially noted. The presence of an information database on the asset, the history of its operation, relevant documents can significantly increase the attractiveness of the object when selling.

How to choose how to implement

Speaking of investments, one cannot help but dwell on the cost of CAFM systems. For the Russian market, the tasks of choosing a CAFM system can be characterized by the following external conditions: a minimum number of professional CAFM systems; Options using 1C-based solutions possible variants using products with related functionality such as EAM, MR (CMMS).

In recent years, professional CAFM systems of both Western and Russian suppliers have appeared on the domestic market. However, these products are isolated. The main difficulty is the lack of complete information from end customers about these systems. However, in the coming years we can expect a number of high-quality systems from international vendors with many years of experience in the development and implementation of such solutions.

Based on 1C, there are several solutions that can only implement a small part of the tasks of professional CAFM systems. As a rule, such products perform the minimum necessary tasks. Their advantage is integration with accounting systems, product information support and the presence of a large number of performers who are ready to implement these tasks. In terms of cost, the low base cost of licenses should not be taken into account. Here it is necessary to estimate the total cost of the project, including the cost of refinement, product maintenance, which can make up a significant part of the total investment.

Due to the lack of a large number of options, some customers have already tried to use professional systems of other types (EAM, CMMS) to solve CAFM problems.

However, these projects were not successful in view of the need for significant improvement, configuration of these systems to solve specific problems in the field of real estate management. For example, these systems completely lack rental, space, and cleaning service management modules. Also, users have encountered a significant complexity of software products for solving relatively simple typical tasks, in particular, for organizing scheduled maintenance.

For example, EAM systems are used for large industrial enterprises with the functions of the financial unit, personnel management. Advanced maintenance planning modules are also included in EAM based on the analysis of many equipment and infrastructure health parameters. With great difficulty, but these functions can be recommended for the property management industry. At the same time, support for these services and additional modules significantly increases the cost of EAM compared to CAFM systems.

If we talk about ERP, then there are systems that support a number of specific functions for FM. For example, SAP has an MM module for operating and maintaining fixed assets. However, these modules, which are not typical for the main ERP tasks in terms of global enterprise management, are significantly limited in functionality and implement only the minimum necessary services. A significant disadvantage is the general ERP interface, which is quite difficult for an ordinary user, as well as security issues. It is very difficult to imagine that the technical personnel of the operation service will be able to work in a common ERP of the enterprise, and even more so - another legal entity.

In addition, neither EAM nor ERP provides for developed modules specific for facility management, real estate management. For example, the functions of managing areas, cleaning service, etc.

History of Occurrence Brief

CAFM systems began to develop in the late 1980s, using computer technology to automate the collection and storage of information about the premises in operation. Widely used information technology eventually came into the field of real estate construction and management.

In the United States, methodologies were first developed and the development of CAFM systems in the industry began.

Materials used

CAFM systems: demand expectations and supply forecasts

Computer Aided Facilities Management (CAFM)

Author

Ilyin Victor, expert in the field of information technology for real estate management, building automation http://www.nethaus.ru

See also

• EAM - Enterprise Asset Management System
• CMMS - Maintenance Management System
• ERP Systems - Systems for Enterprise Resource Planning
• MRO systems - systems for MRO management and modernization of vehicles and weapons

Links

• Property management systems: how to choose who to pay
• http://www.automatedbuildings.ru - Portal on Automated Building Management Systems and CAFM
• Facility Management в en.wikipedia.org
• cafm.ru - Overview of manufacturers of corporate information systems for comprehensive maintenance and provision of services for management of fixed assets of organizations as of February 2007