Measuring the cost performance of buildings is an essential starting point for property executives who are charged with justifying the costs of real estate.
With the ARCHIBUS Strategic Financial Analysis application, decision-makers obtain the trusted data that they need because the application provides:
Prior to the introduction of the Strategic Financial Analysis application, ARCHIBUS tracked facility cost transactions from the Operating Expenses (OpEx) perspective. For example, base rents were treated as expenses paid from the tenant to landlord. For tracking Total Cost of Occupancy, ARCHIBUS used OpEx costs when determining metrics such as Cost per Area, Cost per Employee, and Cost per Line of Business (LOB) by Business Unit, Division, or Department.
ARCHIBUS Strategic Financial Analysis application offers capital planners and property owners a method for tracking and analyzing capital expenditures (CAPEX) asset costs, income, taxes, depreciation, and amortizations. With ARCHIBUS Strategic Financial Analysis, you can track and analyze both OpEx and CAPEX costs to determine facility metrics such as Cost per Area by Building, Cost per Employee by Building, and Cost per Line of Business (LOB) .
In summary:
| With this ARCHIBUS product suite ... | you track ... | from this point of view |
|---|---|---|
| ARCHIBUS product suite without the Strategic Financial Analysis application | Total Cost of Occupancy | OpEx |
| ARCHIBUS product suite with Strategic Financial Analysis | Total Cost of Ownership | OpEx and CAPEX |
Improve decision support and collaboration. The Strategic Financial Analysis application uses Enterprise Information Modeling (EIM) technology to unify the perspectives of different stakeholders into a common operating picture describing the impact and importance of spending and investment. Finance professionals, capital planners, real estate and facility directors, and operational managers can all understand how the decisions they make interact and how they are far more effective working together in concert than they ever could be working alone.
Optimize asset investment and utilization. The application shows cost and utilization figures side-by-side with mission-support information -- such as FCI and criticality – all overlaid on the location information you need to know what line of business the investment supports. This -- combined with drill-downs to the detailed organization allocation, cost, capital project, and lease information -- helps you deploy the right assets to the right teams at the right time.
Understand your total costs. The application integrates the analysis of both your capital and expenses and analyzes them from multiple perspectives, including total cost of occupancy, total cost of ownership, and workpoint cost. Cost of capital, appreciation, depreciation, financing, disposition costs, total mortgage and lease obligations can be examined alongside rent and operational costs and included with or excluded from the analysis as appropriate.
Control operational expenses. The application analyzes operating cost by category and normalizes them by quantities, such as gross area, rentable area, and seat count so that facilities of different sizes can be compared for performance on an even basis. Use this information to benchmark costs against organizational targets, pinpoint outliers and anomalies, identify under-performing assets for remedial attention, and over-performing ones to use as models.
Recording Data for your Real Estate Assets
Adding VPA to the Strategic Financial Analysis Application
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