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UT
Realty, the real estate arm of conglomerate United Technologies, is in
the midst of a program aimed at centralizing real estate operations with
a goal of realizing $50 million in occupancy cost savings. Headquartered
in Hartford, Conn., United Technologies is a $31-billion company and
ranks as the 22nd largest U.S. manufacturer according to Industry Week.
Efficiently managing the company's massive real estate portfolio
presents a major challenge.
To help accomplish its goal, UT Realty selected Sequentra software
from Sequentra Solutions LLC (www.sequentra.com),
a subsidiary of United Systems Integrators. UT Realty has been using the
software for nearly two years and gives it positive reviews for helping
manage about 4,100
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United Technologies' property
portfolio, spanning 66 countries, is ripe for centralized
management. |
properties in 66 countries across seven
business units.
"We use it on a global basis to manage all of our real estate
projects and maintain all information about our real estate portfolio,"
says Taylor Henderson, global finance and operations manager for UT
Realty.
So, for example, if Henderson wants to see how much monthly rent
UT subsidiary Sikorsky Helicopter is paying at a particular location, he
just goes to the specific location on the Web created for that site and
pulls up the rent tab. He also uses it to find information
internationally, such as the total square footage and number of sites in
a given country.
"We use it to ID different projects in a country or business
unit," Henderson says. "We can determine how many lease renewals are
happening in the U.K. and we can pull all the information right out of
the system. It's truly changed the way we work here at UT Realty. We've
gone from a position of relying on individuals outside of our
organization and outside of our control. It's an extremely powerful tool
and it allows us to understand what our real estate portfolio is and how
to manage it."
That kind of centralization is in line with the strategy
implemented under UT Realty President Ron Zappile (profiled in the May
2003 issue of Site Selection), whose "Project Landlord" and "Project
Intrinsic Value" have had savings and value discovery as their chief
goals.
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Sequentra's capabilities have enabled customers like United
Technologies to better understand and better manage their real
estate portfolios. |
"When you have as many facilities and as much real estate as we
have," Zappile told Site Selection, "there are opportunities that
present themselves all across the globe."
What's more, using the right tools and processes gives corporate
real estate the opportunity to maximize value.
"We wanted to make sure we had the right data, because as you look
at co-locations and consolidations and opportunities, if you don't have
the right data, you don't make the right decisions," Zappile said.
Henderson says there's constant communication between his company
and Sequentra regarding the product's use.
"Every two weeks, I manage a global conference call where we have
on average about 15 players, one of whom is a Sequentra consultant.
Also, we as a company talk about how it's doing and how we would like it
to improve and we ask for advice if we need it."
Henderson hopes to eventually organize a users' group to discuss
issues with other companies using Sequentra.
Sequentra Solutions is continually enhancing its Sequentra real
estate technology software. Developed about six years ago, the software
has gone through several versions and upgrades and is now gaining a
sizeable client base of major corporations.
Garrett Cannon, senior vice president and CIO of Sequentra
Solutions, describes Sequentra as a single interface for all corporate
real estate activities, available through the Web and allowing
collaboration by all types of people.
"Sequentra drives the efficiency of the whole real estate
department, leveraging technology to make them more efficient," Cannon
says.
Because Sequentra is entirely Web-based, users do not need
anything installed on their machines. Sequentra officials cite this as a
key benefit as it allows access from any PC connected to the Internet.
The software offers two modules: project tracking and lease
administration.
"Anything with a process behind it can be tracked," says Brian
Schan, Sequentra product development manager. Schan says a central focus
of Sequentra is its Milestones section, which associates tasks and
responsibilities with individuals.
Tailor Made
Sequentra offers flexibility and can be tailored to companies with
portfolios containing a couple dozen sites or several thousand. Users
range from standard offices to large manufacturers to technology
companies. Sequentra clients license the software through an agreement
that allows them use of the system. The agreement is generally for a 3-
to 5-year term with options to extend.
"It's easily configurable for different types of clients," Cannon
says. "They can add as many custom fields and custom reports as they
want just by being a normal user."
Cannon says the Sequentra product was built specifically with
corporate real estate departments in mind.
"Since it's geared for corporate real estate executives, it has a
savings module that's unique and can be used to track savings on each
individual project," Cannon says. "It's pretty innovative today with
companies trying to squeeze savings out of every area. "
Plans call for new modules to be added for space management that
will allow users to integrate CAD drawings to track assets such as
furniture and equipment at individual sites. Also in the works is a GIS
mapping interface.
Sequentra issues new releases about every two months and clients
have the option of adding the new features, Cannon says.
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