Who Owns FM Technologies? December 6, 2011

The ownership of FM technologies vary if you are a client or supplier. And there are sound business models for both depending on the business case and value in owning an FM Technology…In either case, generally data is owned by the client but may be run by the suppliers or clients in either of their respective systems.

Supplier Owns the FM Technology:

In most of the Prime contracts, it is common for the Prime contractor to bring their own systems to run client’s facilities. These systems can be a 3rd party software like IBM Maximo, Tririga, etc. or supplier’s bespoke systems built in-house. In those contracts, suppliers administer and configure the system, and usually within a few weeks after the contract award, it can be up and running… Supplier made systems are increasingly becoming less competitive in the market as more and more technology companies develop their softwares and kits specifically for the facilities management market.

Client Owns the FM Technology:

Although not limited, clients own FM technology typically when they operate FM contracts with multiple suppliers. In addition, access and security, legacy and inheritance of systems from the past, and business continuity can be other reasons to own a technology. Clients can use third-party software and have access to licenses for their supply chain to operate a contract on their behalf.

Choice between the two?

This strongly depends on the business value assessment. Firstly, the right product and solution landscape should be designed to best fit into the business requirements. Then, one-off, ongoing and project implementation costs should be calculated against the value, quality and risk trade-offs. One common mistake is not to factor in the risks of ownership, which should be quantified as part of the assessment. And finally, a three to five-year cash flow would be helpful to decide on the best option for the business. Inappropriate business value assessments could lead into buying the wrong technology solution, or mismanaged supplier and client relations, and waste of time and money.