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International PropTech Innovation Label 135 –141 PropTech Innovation Map International PropTech Standards 143 -147
INTERNATIONALPROPTECHSTANDARDS
Standards?
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Norms?
Guidelines?
Regulationofrealestateandconstructionsectors?
PropTech Academy and PropTech Switzerland teams have developed (invented) the first international PropTech standards to regulate the real estate and construction sectors in theworld.
The PropTech sector is 10 years old now. Naturally, it all began with digitization and the internetearlyin2000.
There are more than 8.000 tech companies in real estate and construction sectors now, and more companies are coming year and year. Currently, standards and norms do not cover the new sector “PropTech” and also the new companies according to the business models,servicesandproducts.
The currently regulation institutions do not have compatible regulation process and standards for that new business area. There are a few international institutions who offer classical certification process for the companies in all sectors. But they do not have specialcriteriaandevaluationmethodfortherealestateandconstructioncompanies. In real estate sector there are some other organizations which certificate only individuals withgeneralrealestatemarketcriteria.
The new market “PropTech” needs new rules, new standards and new norms for the markets and market players. PropTech (property technology) contains the lifecycle of building and consists of technology, innovation and sustainability. It is not part of the existing real estate, construction and finance sectors. It is a major sector which connects three sectors. PropTech will change the identity of the existing and also established companies in these markets. After 10 years there will be more than 30.000 tech companiesinthesesectorsworldwide.
The important question is; “How we can control the new market and regulate the new companies and new business areas? For thousands of years the human needed the regulationorrulestolivetogetherandworktogether.Aftertheindustrialrevolution
the governments and official institutions started to regulate the markets and set the standards on how we work and trade. The standards and norms had had important positions in thedie industries inthe early 60’s. The crisis, inflations, devaluations andthe otherimpactsbroughtstrongregulationstothemarkets.
Becauseofthesereasons,thefuturemarket“PropTech”shouldberegulated.Werealized the needs and gaps at the beginning of 2018 and started to write the first standards for the PropTech Market. At first, the PropTech itself and its categories are defined. In July 2019 the first edition of “International PropTech Standards” is released. In 2020 the standards have been revised and the first certification process for the companies developed.(SeeFigure1onthenextpage).
ThestandardsarewrittenfortheevaluationandregulationofPropTechcompanies.They set out the requirements that a particular kind of product, service or process must fulfil, in order to establish that it is ‘fit for purpose’. However, the standards relate to methods of testing, terminology and definitions, information requirements, or the compatibility of connections.
A standard is a basic document that sets out requirements for a specific item, material, component, system or service, or describes in detail a particular method or procedure. Standards are established by consensus and approved by recognized standardization bodies. Standards provide individuals, businesses and all kinds of organizations with a common basis for mutual understanding. They are especially useful for communication, measurement, commerce and manufacturing. They make trade easier by ensuring compatibility and interoperability of components, products and services. They bring benefitstobusinessesandconsumersintermsofreducingcosts,enhancingperformance andimprovingsafety.
The primary objective of standardization is the definition of voluntary technology, innovation, sustainability or quality specifications with which current or future products, production processes or services may comply. Standardization can cover various issues, such as standardization of different grades of service and products or technological specifications in product or services markets where compatibility and interoperability withotherproductsorservicesareessential.
ThebenefitsofStandards
InternationalStandardsmeanthatconsumerscanhaveconfidencethattheproductsand services are reliable and of good quality. The PropTech certificate can be great for companies because an international recognition offers the possibility of operating beyond national borders, which means that companies can increase their sales and revenue.CompanieswithanPropTechlabelusethistoimprovetheirimageandshowthe rest of the world that they work in conformity with international standards. For many buyers and customers, this is a sign that the companies offer excellent products and services. The PropTech standards attempt to ensure quality, consistency, and safety and show us how to check for quality.There are many benefits for businesses which embrace thesestandards.
December 2020
The standards have been revised
October2020
The highest certification process has been for the evaluation of the companiesdeveloped.
Juli2020
The first edition of International PropTechStandardsisreleased
it was the important moment and step to try standardization of the companiesandsectors.
March2020
Research and Study of PropTech Sector
PropTech and its categories have been defined. It was the first academical investigationofPropTech.
September 2019
ThefirstPropTechbook:"PropTech2020"
Everything began with the „PropTech 2020“ book. When we started to write the book, we noticedthattherewerenorightdefinitions, no right categorizations and no standards for this new world.
„Why don’t we write the standards for the
PropTech sector?“ Everything began with that question. We didn’t know that we were writingthe history.
Standards and norms provide clear guidelines and instructions that, when correctly applied, should ensure that a service or product will satisfy a series of specific quality, innovation, technology and sustainability criteria, corresponding with customers’ requirements. By implementing the relevant standards, you can achieve better levels of performance and reliability. This will help you to attract and retain customers for your productsandservices,therebymakingyourbusinessmorecompetitiveandsuccessful.
Standards are a useful tool for ensuring that different products and components are mutually compatible and will function properly when connected together. By paying close attention to standards, you can make sure that all the products and services you provide are compatible with each other, and that they will also work with products and servicesofferedbyothercompaniesandorganizations.
Standards provide precise and widely-accepted descriptions of components, products and services. They make it possible for every link in the supply chain to share common understandingoftheexactrequirementsthatneedtobefulfilled.Byincludingreferences to specific standards in product catalogues, calls for tender, supply contracts and purchase agreements, you can insist that suppliers respect these requirements, and you can alsomake surethatthe products and/orservices youprovide will correspondtoyour customers’expectations.
Gaining the confidence of your customers and keeping them satisfied is crucial for the success of your business. Standards can help you to achieve these goals because they enable you to maintain high levels of quality throughout the production process and development, or when you deliver a service. When your customers are confident in your ability to provide high-quality products or services in an efficient and consistent way, they will be more likely to continue buying your products, using your services, and supportingyourbusiness.
Improved market access as aresult of increased competitiveness andefficiency, reduced tradingcosts,simplifiedcontractualagreements,andincreasedquality.
Easierintroduction ofinnovativeproductsprovided byinteroperabilitybetween newand existing products, services, and processes - for example in the field of the lifecycle of building, workflow management, energy efficiency, co2 reducing, smart cities, smart buildings.
Helptobridgethegapbetweenresearchandmarketableproductsorservices.
Standardization can make an important contribution to the development of sustainable industrial policy, unlock the potential of innovative markets, and strengthen the position of PropTech in real estate, construction and finance sectors. It brings a solid foundation tobuildanddisseminateinnovativetechnologiesandenhancebusinesspractices.
Standards and norms provide clear guidelines and instructions that, when correctly applied, should ensure that a service or product will satisfy a series of specific quality, innovation, technology and sustainability criteria, corresponding with customers’ requirements. By implementing the relevant standards, you can achieve better levels of performance and reliability. This will help you to attract and retain customers for your productsandservices,therebymakingyourbusinessmorecompetitiveandsuccessful. Alongside the direct benefits of using standards, there can also be indirect benefits that are just as important for the long-term success of your business. Standards are a way of showing to the world that you are committed to excellence – not just in the quality of yourproductsand/orservices–butalsointermsoftechnology,innovation,sustainability etc. Companies and organizations that make correct use of standards experience real benefits in how they are perceived by their customers, their stakeholders, and the wider community(publicauthorities,media,civilsociety,businesssectorsetc.)
The PropTech Standards benefit organizations that want to commercialize emerging technologies. These standards help businesses to establish the core characteristics of quality products or services. By implementing PropTech standards, you demonstrate your credentials to your customers, your employees, your investors and other stakeholders.
