In the rapidly evolving landscape of smart buildings, the conversation frequently gravitates towards Return on Investment (ROI). Yet, true value extends far beyond a simple financial metric. As a market engagement specialist, I consistently focus on facilitating the crucial dialogues that help industries look beyond the obvious, uncovering broader definitions of success and architecting pathways for tangible transformation.

This perspective was central to the panel discussion I curated and moderated, titled “From Blueprint to Bottom Line: Unlocking ROI in Smart Buildings,” held at WORKTECH’s Smarter Technologies 25 Conference. The session brought together leading experts to explore the multifaceted challenges and opportunities in justifying investment in intelligent built environments. My role was to guide this vital conversation, ensuring diverse perspectives converged to illuminate pathways to holistic value.

The Nuance of ROI: Beyond the Financial Ledger

From the outset, we clarified that our focus transcended traditional ROI calculations. As moderator, I framed the discussion not solely around financial returns, but on the broader spectrum of how investment is genuinely justified and how business success is ultimately proven through smart building technologies. This foundational understanding set the stage for a rich exploration of value.

Overcoming Barriers to Smart Investment

Our distinguished panellists—Damien Renaut (Landsec), Chris Boultwood (Workspace Group), Dr. Pe-Ru Tsen (Boston Consulting Group), and Daniel Watson (Hereworks)—identified several key challenges hindering investment in smart building technologies:

• Resistance to Change & Lack of Collaboration: Chris Boultwood (Workspace Group) highlighted “resistance to change generally across different teams” and the challenge of achieving effective collaboration to identify and resolve business issues before seeking investment. He noted the time-consuming nature of this process, citing their CRM migration as an example with “two years worth of consultation prior to that.”
• Lack of Clear ROI Metrics: Daniel Watson (Hereworks) pointed out the industry’s struggle with demonstrating clear and tangible ROI, stating, “none of our tenants, actually none of our users or none of their kind of clients give us [clear ROI metrics]. And there’s two reasons. The first reason is they don’t know what they are. They don’t know what they are is themselves.” He suggested a need to move away from solely focusing on use cases and instead start with “having success criteria.”
• Implementing Technologies Holistically: Damien Renaut (Landsec) discussed the challenge of “implementing technologies holistically” across their diverse portfolio (commercial offices, residential, and retail) and ensuring they align with their digital and smart strategy, including cyber security and standards.
• Balancing Efficiency with Experience: Pe-Ru Tsen (BCG) emphasised the importance of “employee experience and connection in office spaces” alongside operational efficiency. She noted that for their consultants, returning to the office is a “special moment” for learning and connection, making experience a key consideration beyond pure cost savings.
• Data-Driven Decision Making: Several panellists underscored the necessity of data to justify investments. Chris Boultwood mentioned the challenge of “knowing which data points to align to make those decisions upon” and the need for the property sector to increase trust and expectation in leveraging data.

Strategies for Unlocking Holistic Value

The discussion shifted to tangible solutions, demonstrating that unlocking investment requires a multi-pronged approach:

• Clear Strategy and Vision: Pe-Ru Tsen (BCG) and Damien Renaut (Landsec) both stressed the importance of having a well-defined strategy and vision for smart building initiatives. Damien elaborated on this, stating, “making sure that first you have a strategy… the vision and how to get to that vision. I think it’s number one writing down what your detail is going to because that’s what you need to prove and clever.”
• Understanding Customer/Occupier Needs: Chris Boultwood (Workspace Group) emphasised the significance of “understanding customer needs and improving employee experience” as a driver for investment. He highlighted that positive feedback often stems from the building management teams and their interactions with customers, suggesting that technology investments should also aim to empower these front-line staff.
• Leveraging Existing Systems & Setting Clear Success Criteria: Daniel Watson (Hereworks) advocated for “leveraging existing systems” rather than always implementing new devices. He reiterated the need to define “success criteria” from the outset, involving all stakeholders to understand what success looks like for every user and operator.
• Delivering Demonstrable Value: Damien Renaut (Landsec) highlighted the crucial element of “delivering value to the occupiers” and being able to demonstrate this value when presenting a business case for smart building investments. He noted the importance of speaking the language of the CFO, focusing on how the investment increases value, lowers costs, or reduces risks.
• Effective Collaboration: Chris Boultwood (Workspace Group) and the panel collectively agreed on the importance of involving a wide range of people in setting success criteria. Chris stated, “involve as many people as you can do the success criteria setting because the more metrics you’ve got to try and improve the better the opportunity to show you that successful three out of five that might be enough.”
• Focusing on User Experience: Chris Boultwood highlighted that their initiatives now focus on “not just how we make things more efficient, but how do we give our colleagues on site more time to spend [with] customers for example.” This suggests a shift towards technology supporting human interaction and improving overall experience.

The Role of ESG and Landlord-Occupier Dynamics

The panel acknowledged the growing importance of ESG and sustainability goals as drivers for investment in smart buildings. While one audience question touched on the potential impact of rolling back reporting requirements, Pe-Ru Tsen (BCG) affirmed that their commitment to ESG remains strong, driven by internal commitments and stakeholder expectations: “I think we have a commitment on ESG from our side anyway and I think that’s also something that people are expecting so I think that’s something and our bodies are persistent.”

Damien Renaut (Landsec) also addressed the question of differing ROI conversations between landlords and occupiers. He explained that while the solutions often fall under the service charge and are ultimately paid for by occupiers, the benefits largely accrue to them. Therefore, landlords still need to justify the value proposition to occupiers, stating, “we still have to sell that’s how I see the relationship.”

This panel truly underscored that unlocking investment in smart buildings demands a holistic approach. It moves beyond simple financial calculations to embrace clear strategy, deep understanding of occupier needs, cross-team collaboration, and the ability to demonstrate tangible value across efficiency, experience, and sustainability. Data-driven decision-making and established success criteria are crucial for justifying investments and demonstrating their impact.