EMB
INTEGRATE &
SUCCESSFULLY
CONTROL YOUR VALUE CHAIN
Sobha’s Secret to Quality
ANDREAS GEORGOULIAS
Let’s get something straight: the real estate industry does not see innovation as a worthwhile
business goal. Through cyclical highs and lows, economic crisis and bursting bubbles, real estate
developers have stuck to a well-trodden path. Granted, doing so has enabled some industry
players to thrive, but for many, the traditional status quo has resulted in loss of productivity and
loss of value every step of the way.
Globally, the World Economic Forum has calculated that more than a third of industry
revenues is lost. The main cause? Not materials and resources as one might expect, but poor
communication and mismanagement of an industry which is rife with schisms that divide every
process. Design is separate from manufacturing, both are separate from construction, which is
separate from sales, maintenance, and so forth. A team is assembled for a single project and
then disbanded upon completion, with the next project most likely involving a new team. It is not
one industry but an organization of many.
This fragmentation requires tremendous management and coordination efforts to deliver a
successful outcome, and it is here that most of the challenges within the building industry lie. To
a great extent, the solution to this problem—and the key to unlocking greater profitability—rests
with better managed and increased innovation. So, why is nobody taking note?
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