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March 22, 2023

AI Digitizes 100+ Year Backlog, Creating "Moneyball" Era for CRE

Prophia has been on the cutting edge of CRE technology for nearly five years, equipping CRE professionals with a sleek and modern data solution for automating administrative tasks and managing CRE investments. As a maverick in proptech, Prophia is not only responsible for this singular solution for managing portfolio data, it has also set its sights on a much more gradious notion: spearheading a digital revolution in CRE , playfully coined the “Moneyball” Era.

Where Does the Term “Moneyball” Come From?

Moneyball, as a concept, did not originate from CRE. It actually refers to a breakthrough concept in Sabermetrics made popular when Billy Beane, the Oakland A’s former General Manager, used data to build the most cost-effective team in baseball history.

Billy Beane was not working with different data points than his predecessors or contemporaries. In fact, Bean’s player research and analysis strategies derived from the previous Oakland A’s GM who taught him to value players differently than the recruiting strategies of the old days.

Beane’s practices and the Oakland A’s success changed baseball recruiting from a stuffy process built on statistical minutia to one of agility; working with available player data in a different way. It was a simple, albeit, bold solution that proved the power of data and out-of-the-box thinking.

How Does Beane’s “Moneyball” Concept Apply to CRE?

Like the CRE industry of today, professional baseball was suffering from convention, the “old way” of doing things. There was little curiosity around the approach to player data and many GM’s and recruiters of the time missed opportunities to impact ROI. As an industry with a similar “good old boy” legacy, CRE data has largely used manual processes to manage and synthesize data, leading to human error, biases, and critical insight left on the table.

Thus, we believe the unencumbered way forward to better insight, resource allocation, and greater returns in CRE involves the adoption of tools, like Prophia, that provide broad digitization, cloud-based data management, machine learning and structure to CRE data. With these tech innovations, CRE professionals will be able to transform decision-making and usher in a new era of portfolio management.

The Data Revolution Leading to Faster Business Intelligence, Data Accuracy, and Competitive Pressure

With nearly 90% of organizations’ data classified as unstructured, it seems many industries experience issues with data management. And within an industry like CRE, that produces massive amounts of data in a single portfolio, it’s highly probable that teams often miss critical information that could lead to better, more confident decision-making and better returns.

While the “Moneyball” approach to CRE means expediting business-critical admin tasks, it also means eliminating human error. Prophia’s predictive AI abstracts and captures key terms in lease documents to give users a historically accurate summary and source of truth that always links back to original portfolio documents. Again this is just another example of the way in which a digital solution can make an impact in an industry that has relied on manual processes to collect and analyze data.

Prophia’s real-time reports and encumbrance tracking turns standard portfolio documents into an insightful resource for faster business intelligence. This increase in insights speed, as well as better data accuracy, leads CRE teams to make more confident decisions based on objective CRE data, not one’s gut.

What’s more, when CRE teams adopt the “Moneyball” approach, they stand to place themselves at a competitive advantage in an increasingly institutional-driven industry on the cusp of massive changes. The “status-quo” no longer cuts it, in terms of staying relevant among a new pool of investors and investment opportunities and CRE professionals who learn to approach data differently and more effectively will be playing an entirely different game from the competition with an entirely new set of rules.

Read the piece in its entirety on Wealth Management

Hannah Overhiser

Hannah is Prophia's Content Marketing Manager and a seasoned marketer. Her career began in eCommerce consulting with a focus on code testing. This technical expertise transferred seamlessly to SEO and she started working agency-side as an SEO and Content Strategist. Today, her home is Prophia, and she puts her...

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