Effective real estate management allows governments to improve sustainability and reduce costs, while providing productive spaces. The key is having good data. Together with the Rijksvastgoedbedrijf (RVB), the Netherlands’ Central Government Real Estate Agency, CGI developed a new core business system called ENF, which stands for “a new foundation,” providing a modern platform for optimal real estate management.
In 2011, the National Audit Office in the Netherlands concluded in its “Property of the State” report that the government had insufficient oversight of its property (land, buildings and infrastructure), and did not know, for example, whether some sites were occupied or abandoned.
Since that report, the government has established a systematic overview of its properties. However, this is just the beginning of its optimal property management strategy. For example, there is a growing demand for flexibility in using the properties and sharing that information among agencies. With the right visibility into building use, governments can respond quickly to user needs. Additionally, savings in power consumption can be achieved, for example, by not having to heat or cool unoccupied spaces. This also contributes to meeting government objectives to lower CO2 emissions.
Together with RVB, CGI developed the new ENF (short for “Een Nieuw Fundament” in Dutch), a core business system providing RVB with a solid foundation for organized real estate management. The system is based on the Oracle 12 eBS-platform and Oracle Business Intelligence tools. ENF features a dashboard called ARiE that clearly presents data in the system, such as building characteristics, technical quality and energy consumption. The dashboard gives RVB an excellent overview of their real estate stock.
RVB used an innovative contracting approach that aligned with its philosophy to oversee such projects while leaving the execution as much as possible to the industry participants.
Vision: Data analysis provides key insights
Since user needs change rapidly, it is important to be able to plan ahead. RVB uses the ARiE dashboard data to develop master plans for future use by the various ministries and to create future scenarios. For example, "what-if” scenarios can be created for property removal by calculating the impact on utilization of various sites. The use of property can also improve when occupancy information is known.
This type of system will take advantage of CGI’s Facility Optimization & Sustainability Framework, developed originally for the U.S. Government which is investing heavily in ensuring sustainability of its property, without sacrificing comfort for employees. The framework and the business intelligence provide the right administrative information to enable optimal management of buildings.
Complete overview of real estate for ministries and municipalities
Optimal property management is important for organizations from ministries to municipalities to realize more transparent, efficient and effective handling of their real estate. For municipalities, an overview of all property and land holdings enables them to make correct policy decisions about sale or rental properties, for example. For the RVB, the information from ENF is used as the basis for consolidating data with other real estate managers of the State.
As land ownership continues to be a major problem for many central governments and municipalities due to declines in value and limited development opportunities, a good overview is indispensable for making crucial decisions in this field in the coming years.