The Digital Dilemma: Is Germany's Real Estate Industry Adapting Fast Enough?

A pleasant chat with Michael Kürschner about the digitization of the real estate industry, SAP vs. Planon, and what else is on our minds.

Today, I have the honor of speaking with my former colleague Michael Kürschner. Michael studied industrial engineering and began his career in facility management—back then still on the user side. Through various internal IT projects, he discovered his passion for consulting.

Today, Michael is a Senior Manager at Deloitte and a global expert in digital transformation within the real estate industry.

We will discuss the challenges of digital transformation in real estate, his impressions of Saudi Arabia, and, of course, one of his favorite topics: Planon

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Nico Pohl: Michael, it’s great to see you again! Let’s dive right in. You’ve been traveling a lot, recently to Saudi Arabia. Tell me about your impressions!

Michael Kürschner: Hi Nico, great to see you too! Saudi Arabia was an incredibly enriching experience, and it was amazing to explore a country that was completely new to me. It’s fascinating to see how diverse cultures, landscapes, and climate zones can be—I experienced intense heat and cold, drove through arid mountain landscapes, and suddenly found myself in lush, green oases.

Nico Pohl: You just mentioned culture. With Vision 2030, Saudi Arabia is currently in a period of transformation. How does this impact the working environment?

Michael Kürschner: One thing that stood out immediately is the extreme internationalization. Experts from all over the world come together here to collaborate. It’s exciting to witness such a concentration of expertise and to see top professionals working together in a highly respectful and appreciative manner.

Nico Pohl: Speaking of experts, I’ve always considered you a “Planon expert.” Could you give our readers a brief introduction to Planon for those who might not be familiar with it?

Michael Kürschner: Sure! Historically, Planon started as a maintenance tool for the Philips Group. Today, Planon provides a Computer-Aided Facility Management (CAFM) system for managing corporate real estate. It’s almost shocking, but I first accessed the system 21 years ago as a dual student. Back then, I never would have imagined that I would encounter this software throughout my entire career (laughs).

Nico Pohl: I believe it was in 2023 when the partnership between SAP and Planon was announced—a major milestone in Planon’s history. What is your take on this development?

Michael Kürschner: I think this partnership is the right move. Planon is a strong tool for corporate real estate management and is expanding into the broader real estate market. SAP, on the other hand, can strengthen its position and build a comprehensive IT ecosystem for real estate. In the past, customers had to choose: Should they use SAP PM or Planon for property maintenance? For lease management, Planon competed with SAP’s RE-FX module. The partnership is based on a shared vision. SAP historically focused on the institutional real estate market with RE-FX. With Planon, they can now address a wider market, including corporate real estate.

We also shouldn't forget that Planon is part of Schneider Electric. Schneider Electric is one of the largest hardware providers for technical building equipment and a leader in smart buildings. So, this is essentially a three-way partnership aimed at covering all real estate-specific requirements in a single solution—at least, that’s the vision, and I find it very exciting!

Nico Pohl: Speaking of technical integration with SAP, we can’t forget one key component: the BTP!

Michael Kürschner: Yes, that’s a great point. The Business Technology Platform (BTP) is essentially the “glue” between SAP and Planon. SAP BTP brings together data management, analytics, application development, and integration capabilities in a unified environment.

Nico Pohl: The technical solutions are available, but now the market players need to catch up. What are the biggest challenges in digital transformation for the real estate industry? Are we ready for the big AI revolution?

Michael Kürschner: Many companies are currently doing their homework. The focus is on simplifying processes, digitalizing them, and building a solid data foundation. Only then can AI and other innovative technologies be effectively deployed.

Nico Pohl: From your perspective, has AI already arrived in practical applications?

Michael Kürschner: AI is on everyone’s lips, but many companies are still figuring out how to use it effectively. A solid data foundation is necessary for analysis, decision-making, and automation. However, I am pleased to see that discussions around AI are pushing companies to focus more on analyzing and optimizing existing processes. That’s a crucial first step in the right direction and lays the foundation for digital transformation.

Nico Pohl: What are the biggest trends in the real estate industry?

Michael Kürschner: In addition to AI, key topics include sensor technology, new ways of working, and, of course, mobile cloud applications. When processes are lean and simple, they are easier to automate. Simple processes are also easier to populate with data—this is where sensors play a role as data sources. AI can then process this data, identify missing information, and assist with analysis and process mining. But the foundation remains that companies need to map their processes end-to-end. I also want to highlight the benefits of the cloud.

The cloud enables flexibility, faster access to innovation, and seamless integration with other solutions. This helps companies stay technologically up to date.

Nico Pohl: What advice would you give companies looking to move to the cloud?

Michael Kürschner: They should prepare well and not overlook security aspects. It’s crucial to carefully select the right cloud solution and infrastructure.

Nico Pohl: A major topic is also the end of SAP RE-FX—by which I mean, there will be no further developments. What does this mean for companies?

Michael Kürschner: SAP is now fully focusing on Planon as a partner solution for real estate. Companies currently using RE-FX need to consider how they will improve their processes in the future without further innovation in RE-FX.

Nico Pohl: One final provocative statement: “Saudi Arabia is outpacing Germany in digitalization.” Do you agree?

Michael Kürschner: No, I don’t think you can make such a sweeping statement. Many German companies are already quite advanced. Saudi Arabia has strong momentum right now, and it’s exciting to see how the real estate industry there is rapidly adopting digital solutions. Given Germany’s political landscape and planned investments, similar momentum could develop here as well.

Nico Pohl: That’s encouraging! Michael, thank you for this fascinating conversation!

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We advise and support real estate companies on their path to digital transformation. Our services include:

• Consulting and software selection

• Testing & training

• System implementation:

  • Project management

  • Business analysis

  • Process modeling

  • Requirements analysis

Together with our partner IoT Fabrikken, we offer an exciting solution to optimize your space management using micro-sensors. Feel free to reach out to us!