What are point solutions?
Today, businesses and organisations are presented with a variety of options when it comes to solving specific challenges, including “point solutions” and “platform solutions”.
Point solutions are specialised tools or systems designed to address a specific problem or need within a larger context. They are often targeted, narrowly focused and highly effective at solving a particular issue.
Platform solutions, however, offer a broader range of functionalities and integrate multiple features into a cohesive system.
In this post, we will delve into the key aspects of point solutions, exploring their advantages, limitations and how they contrast with platform solutions.
What is the difference between a platform solution and a point solution?
Point solution:
Point solutions are specialised software applications designed to address specific problems or single-use case issues. They focus on a particular function or area of expertise, providing precise and efficient solutions for that niche need.
These solutions are built with a narrow focus, excelling in their specific domain but lacking broader capabilities. They are ideal for addressing distinct challenges without the need for a comprehensive system.
Examples of point solutions would include software to manage such disciplines as:
Space management – Tools that optimise and ensure the efficient use of physical spaces within a facility or organisation.
Energy management – Software designed to monitor, control and optimise energy consumption within an organisation.
Lease accounting – Solutions that help manage lease agreements and ensure compliance with accounting standards like IFRS 16, providing accurate financial reporting.
Platform solution:
Platform solutions are comprehensive, multi-functional systems designed to address a wide range of needs and processes across an organisation. They offer an integrated approach, centralising various functions into a unified system.
Platforms are recognised for their flexibility and ability to scale, adapting to the evolving needs of a business. They often provide a single database that records and manages data across different business functions, facilitating a more holistic view and coordination.
Examples of integrated/platform solutions include:
Enterprise resource planning (ERP) – Systems that integrate core business processes, including finance, HR, manufacturing and supply chain, into a single platform.
Property management software – Solutions that manage various aspects of property operations, including leasing, maintenance and tenant management, within a unified system.
Integrated workplace management systems (IWMS) – Platforms that support facilities management, real estate management and other related functions through a centralised system.
What are the benefits of choosing a point solution?
Point solutions offer precise, focused functionalities tailored to specific needs, ease of implementation, affordability and the potential for rapid innovation. These benefits make them an attractive choice for businesses looking to address particular challenges efficiently and cost-effectively.
Precision and focus
Best of breed functionality: These solutions often contain highly detailed features and functions tailored to their specific domain. For example, energy management software might include comprehensive tools for monitoring, controlling and optimising energy usage, ensuring that all aspects of energy management are covered.
Focused development: Developers of point solutions concentrate their efforts on refining and advancing their product to stay current with the latest technology and industry standards. This focus ensures that the solution is continually updated and optimised for its specialised function.
Ease of implementation
Shorter implementation times: Since point solutions are designed for specific tasks, they are generally easier to deploy. This results in shorter implementation timelines, allowing the solution to be up and running faster.
Less customisation and training: With a narrow focus, point solutions typically require less customisation compared to comprehensive platforms. This also means that training needs are minimised, as users only need to learn and adapt to the functionalities relevant to the specific problem being addressed.
Streamlined communication: Implementing a point solution usually involves working with a smaller group of stakeholders within the business, simplifying communication and coordination during the deployment process.
Affordability
Lower costs: Point solutions are usually less expensive than full-scale platform solutions, making them a viable option for smaller businesses or departments with limited budgets.
Reduced upfront investment: The initial investment for a point solution is typically lower and ongoing support and maintenance costs are generally more manageable compared to larger, more complex platforms.
Innovation
Specialised development: With dedicated development teams, point solutions can quickly adapt to meet changing industry requirements and corporate governance standards. This specialisation allows for more agile updates and innovations.
Evolving features: Point solutions often evolve to incorporate new features and capabilities that address emerging needs or trends within their specific domain, keeping the software at the cutting edge of industry developments.
Drawbacks of point solutions
While point solutions offer targeted benefits, they come with several drawbacks, including limited versatility, scalability issues, integration challenges and complex vendor management.
Limitations of being too specific
Narrow scope: Point solutions are designed to handle particular problems or use cases. This specialisation can limit their versatility, making them less suitable for addressing broader or evolving business needs.
Multiple solutions required: To tackle various problems within an organisation, multiple point solutions may need to be selected and implemented. This can lead to complexity in managing and integrating different tools, each designed for a distinct function.
Limited scalability
Challenges in adapting: Point solutions are often not built to scale easily with expanding business operations. This can lead to difficulties in adapting the solution to new requirements, necessitating additional investments in new tools or systems.
Investment in new solutions: If a point solution cannot scale, organisations may need to invest in new solutions to meet evolving demands, potentially resulting in higher overall costs and resource allocation.
Integration challenges
Data silos: Each point solution may create its own data repository, leading to fragmented information across different systems. This can result in data silos, where key information is dispersed and not centrally accessible.
Lack of visibility: Fragmented data from multiple point solutions can hinder visibility and transparency across the organisation, impacting decision-making processes. Inconsistent data quality and poor integration can also undermine effective business operations.
Vendor management
Complex vendor relationships: Dealing with numerous vendors for different point solutions can be time-consuming and challenging. Organisations may face difficulties in managing diverse contract terms, service levels and support processes.
Factors to consider with point solutions
When considering the implementation of point solutions, it’s important to evaluate several key factors to ensure they align with your organisation’s requirements and strategy.
Time
Implementation time frames – Assess how long the implementation will take, including installation, configuration and integration with existing systems. This includes the time required to customise the solution to fit specific organisational needs.
Training – Factor in the time needed to train employees on the new system. This involves developing and delivering training programmes to ensure that all necessary personnel can effectively use the new solution.
Return on Investment (ROI) – Consider the anticipated timeframe for seeing a return on investment. This includes evaluating how quickly the point solution will deliver value and impact the organisation’s bottom line.
Budget
Initial costs – Account for the upfront expenses associated with purchasing and implementing the point solution. This includes software licenses, any required hardware and initial setup costs.
Ongoing costs – Factor in recurring expenses such as support and maintenance fees, future training costs and any additional integrations that may be needed. Understanding these costs will help in budgeting for the total cost of ownership.
Strategy
Alignment with business strategy – Ensure that the point solution aligns with the organisation’s overall business strategy and supports specific departmental or organisational goals.
Vendor viability – Evaluate the long-term viability of the point solution by assessing the vendor’s reputation, product roadmap and commitment to ongoing development and support.
Risk assessment – Identify and assess potential risks associated with the implementation. This includes integration challenges, technology obsolescence and potential disruptions to existing processes.
Resource allocation
Technical resources – Plan for the technical resources required to support the new solution, including infrastructure, IT support and integration capabilities. Ensure that your existing IT environment is compatible with the new system.
Project management – Designate a dedicated project champion or manager to oversee the implementation process. This individual will coordinate efforts across departments, manage the project timeline and ensure that the solution is integrated smoothly.
Financial resources – Ensure that financial resources are allocated appropriately to cover both initial and ongoing costs. This includes budgeting for unforeseen expenses that may arise during the implementation process.
Combining point and integrated solutions – the best of both worlds
As technology innovations continue to drive today’s PropTech market, there is no longer the requirement to choose between either a point or integrated solution, as was once the advised approach. Organisations are now realising the value and benefitting from a better user experience by combining both, demonstrating that point solutions should be viewed as complementary to integrated solutions and do not need to be a ‘one or other’ strategy.
MRI’s hyperconnected technology platform, MRI Agora, integrates every tech solution and data touchpoint used by owners, operators and occupiers across real estate, enabling property management teams to make smarter decisions with easy integrations, unified user experiences and tailored services allowing for streamlined processes that fit your unique needs.
To learn more about how MRI’s hyper-connected real estate platform can simplify your business operations, contact us today.
