Project Octane consists of three new online service platforms the consortium plans to rollout over the next two years, including a transaction services platform, an ERP (Enterprise Resource Planning) system and a purchasing procurement portal. So far, the consortium has sunk $81 million into product development and expects to pour $30 million more each into Octane's core transaction and purchasing procurement platforms, according to Fitzpatrick, who did not disclose the anticipated cost for ERP.
Fitzpatrick points out that the focus of all three products is automating core operations, using technology to improve operations and better serve tenants.
The transaction services platform is at the heart of Octane, notes Fitzpatrick. This platform will provide an online marketplace for conducting commercial real estate business, both sales and leasing. The system, which the consortium plans to license to other commercial real estate firms, will offer automated tools for cutting through the transaction paper trail, from negotiating deals to filing closing documents.
"By automating mundane processes--getting rid of paperwork--we believe we can cut down to one-quarter the time now needed to complete a transaction," Fitzpatrick says, "freeing up brokers to focus on value-added activities like providing better service to clients and doing more transactions."
The ERP system will automate back-office operations and establish industry-wide operational standards for functions, such as accounting and human resources. This platform also will have a reporting capability that allows clients to tailor information to specific needs and integrate it into their own systems.
The purchasing procurement portal will allow tenants to order any supplies needed to keep their offices running online and at big savings due to the aggregate buying power of four companies. Fitzpatrick estimates that combined the four companies spend $6 billion plus annually on supplies. Octane has partnered with a new online purchasing portal called Sitestuff to provide this service and has provided funding capital to the dot-com to help get it going.
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