Facilities Management

Solutions to increase return on facilities assets When keeping facilities operating costs down gets harder – get smarter Read the IBM TRIRIGA solution sheet now

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Maximize the return on your facilities assets

CFOs and financial executives continue to place increased emphasis on real estate and facilities assets as a key strategic asset. Senior executives open new facilities to generate top-line financial improvement, as a source of capital to fund revenue growth, and consolidate underperforming facilities to reduce operating expenses.

In addition, pending changes to global lease accounting rules that will place operating leases on the balance sheets of public companies will further increase the impact of facilities on financial performance.

With IBM facilities management software, finance and real estate executives can make faster, more informed decisions that bring increased value to their organizations though identification of high-return real estate transactions, increased facilities utilization and reduced energy expenses.

Lease accounting has now emerged as an essential component for smarter businesses
The accounting standards boards for the US, Europe and many countries are jointly developing a new accounting standard that will place leased facilities and other assets on company balance sheets.

Yet, 92 percent of senior finance and other executives considered their companies NOT PREPARED to capture, organize and report the balance sheet impact for their company, let alone implement necessary management processes to manage or reduce this impact in a sustainable on-going manner, according to an IBM study on the impact of the new lease accounting standard.

What are the realities that your company must consider?
The addition of operating leases to the balance sheet accounting of public companies will create a significant increase in the complexity and operational workload of finance, facilities and asset management functions within mid- to large-sized companies.

Furthermore, 58 percent of executives surveyed expect new information, new processes and new reporting requirements will require major system upgrades or new lease accounting systems to comply with the new lease accounting standard.

Facility energy efficiency proves critical to achieve environmental and energy management goals
The International Facility Management Association reports that energy costs represent 23 percent of the total facilities occupancy costs.

Consider another fact. Ninety-one percent of organizations who successfully achieved their environmental and energy management goals invested in facility energy efficiency, according to an IBM environmental and energy management study. This same survey identified that a majority of those organizations that achieved their goals invested in three high-level tactics to reduce energy use within their facilities:

Introduction of operational improvements to reduce maintenance downtime and cost.
Investment in building retrofit programs to improve efficiency of existing assets.
Implementation of space management programs to increase facilities utilization.

IBM facilities management software family delivers advanced features that improve return on facility assets

Evaluates balance sheet and P&L impact of facility lease vs. purchase decisions.
Identifies under-utilized and poor-performing facilities, assets, processes and resources.
Simplifies scenario analysis of strategic facility plans against plan goals, and status quo scenarios.
Analyzes building conditions, prioritizes investments and assesses ROI for smarter facilities decisions.
Automates generation of critical alerts, payment processing and other critical facilities controls.

Using IBM facilities management software, organizations can reduce operating costs and increase return on assets. IBM Real Estate Site Operations (RESO) achieved an incremental eight percent energy cost savings at a 3.3 million square foot manufacturing facility through real-time energy optimization. In another example, A Fortune Global 500 customer reduced its global real estate portfolio by 17%.

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IBM facilities management software delivers proven capabilities to identify under-performing facilities, increase facility utilization and reduce facilities occupancy and operating costs.