The construction and real estate sector is one of the most important industries in Germany, with over 300 billion euros in annual revenue and over 1 million employees. However, when it comes to digitalization, the sector is no longer doing so well. To address this, the innovation and digitalization platform BE5 was launched. Among other things, the platform aims to promote cross-company collaboration. We asked Dr. Manuel Götzendörfer, Managing Director of BE5, what else BE5 is all about, the initiators behind the platform, and the role startups play in this innovation process.
Recently, the Platform for Built Environment Focused Innovations, Ventures & Enterprises – short BE5 (spoken befive) – was launched. Who are the initiators behind it, and what is the platform intended to achieve?
BE5 is initiated by UnternehmerTUM, Europe's leading center for innovation and startups. We have secured the GC Group, Knauf, Max Bögl, McKinsey & Company, Peri, Schüco, and Warema as founding partners—we are currently in talks with additional companies to join. The goal of BE5 is to inspire young talent for innovation activities in the construction, real estate, and infrastructure value chains and to bring established companies together with startups to jointly develop innovative solutions. Furthermore, employees of established companies in the value chain should be actively involved in the digital transformation of the industry.
Startups as driving forces
What role do you assign to startups within the platform?
Startups are a key driver of innovation. They embrace new technologies early on, transform them into concrete solutions, and then bring them quickly to market. Startups are thus driving the construction industry, which is facing fundamental changes as a result of digitalization. At the same time, by collaborating with companies, startups can align their solutions even more closely with existing market needs, systematically develop them further, and establish them more quickly in the market through the channels and networks of large companies. Within the framework of BE5, a startup pool is being established, and these startups will then be specifically integrated into various BE5 events and innovation formats.
Which digital developments do you currently find most interesting in the construction and/or real estate sectors?
To quickly meet the high demand for affordable, high-quality housing, industrial construction through prefabrication and modularization will play an increasingly important role. The use of new technologies such as IoT, AR/VR, and blockchain is receiving increasing attention in the industry. The systematic generation and use of data throughout the entire life cycle of buildings will also become significantly more important in the future. To counteract the looming shortage of skilled workers, it is also becoming increasingly important to use available resources more specifically and efficiently through digital tools and to support this with robotics solutions.
Right time to think about the future
Compared to other industries, the construction and real estate industry still has a lot of catching up to do in terms of digitalization. Why do you think that is?
The industry is very fragmented and fragmented. It is heavily dominated by small companies with only a few employees. There are hardly any major players with the market share to set new standards. This is certainly not conducive to the rapid digitalization of an industry that has traditionally been rather conservative. Furthermore, the sector has been characterized for years by high natural market demand, which means that the available resources within companies are primarily used to ensure operational operations. In many cases, this leaves little time for strategic development. However, especially in times when companies are doing very well, it would be the right time to invest in the future of the organization. More and more companies understand this and are therefore increasingly engaging with digitalization. This also applies to the founding partners of BE5, who are already considered innovation leaders in their respective fields.
Whether and how can interested startups participate in BE5?
As part of BE5, we're planning various networking events, expert workshops, and hackathons in which we'll involve startups. Young companies will be the focus, particularly at a startup matchmaking event, where we'll systematically connect founders with established companies to initiate strategic collaboration projects, for example.
