Directors
of any successful business are constantly attentive
to the monitoring, reviewing and, where possible, reduction
of overheads.
Property and staff costs contribute the major element
in most businesses so tools that allow all the costs
that relate to occupying space, and how effectively
that space could be used with some re-planning, have
a major strategic role to perform in helping businesses
survive a downturn and exploit any upturn.
Whilst improvements in marketing and sales can have
a medium to long-term effect on a firm’s profitability,
the reduction of fixed costs tends to have an immediate
effect so the simple question “could
we perform effectively in less space” is
one that every board would like to see answered.
Conventional financial modelling tools have no means
to relate costs to real physical space so, if a series
of models are created to see the financial impact of
reducing office space, without seeing it in the context
of the way that space is actually occupied and how it
is being used by teams of people who may need to work
together, it is not possible to make an informed decision.
Conversely, space-planning tools tend to be CAD based
and have limited ability to link to financial modelling
tools.
ActivePlan is a breakthrough
technology that overcomes this issue and allows all
datasets to be glued together and work in unison. Its’
object-based design means that assets can have both
physical and logical attributes i.e. a desk exists within
a room (physical), but is used by Jack Jones (logical)
who is a member of the ABC consulting team working on
the XYZ project for three months. This allows the activities
of the organisation to be mapped against the functional
areas and equipment they require, providing the missing
link in Activity Based Costing.
Because it has never been possible to date, there is
no established market and there is no valid way of determining
the value it can bring – or the price we should
charge.
This presents an opportunity to establish a new paradigm
i.e. rather than selling a software application, or
even a service that delivers an application online,
we can to help clients achieve improvements in their
business and receive a share of the value we create.
ActivePlan will initially be used by consultants
to undertake a fixed-price exercise to audit what exists
in a far more cost effective way than previously possible,
provide a number of alternatives for consideration and
leave the firm with an improved set of well-structured
information about their property portfolio and how it
is being used. (Initial research suggests that peripheral
spin offs such as reduced insurance and health and safety
risks, or better-validated information for a year-end
audit, might actually cover the cost of this initial
study)
Once that initial study and report is complete, the
client has the option of acting on the advice and retaining
ActivePlan as the means
of managing the change process, maintaining it in the
future and measuring the effectiveness of each change.
The value of the use of ActivePlan
is then more easily understood at board level allowing
an appropriate price, either as an ongoing service,
or even a licence sale, to be charged.
By initiating a change process of some type, other services
(and fees) are generated - finding alternative properties,
relocation management, project management and space
management/equipment supply to name a few.
Consultants looking for new, added value, opportunities
will see opportunities to build a market that allows
them to promote a wide range of services based on their
core competencies.
The ActivePlan marketing
strategy is therefore to form alliances with consultants
and approach businesses with this simple proposition
– “would you
like to know how your space is currently being used
and if you can make do with less?”
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