Dear Analyst Episode #114: How a small real estate investment company uses modern data and cloud tools to make data-driven decisions
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Description
When you think of data pipelines, data warehouses, and ETL tools, you may be thinking about some large enterprise that is collecting and processing data from IoT devices or from a mobile app. These companies are using tools from AWS and Google Cloud to build these complex workflows to get data to where it needs to be. In this episode, you'll hear about a relatively small company who is using modern cloud and data tools rivaling these aforementioned enterprises. Elite Development Group is a real estate investment and construction company based in York, Pennsylvania and is less than 50 employees. Doug Walters is the Director of Strategy and Technology and Elite and he discusses how data at Elite was trapped in Quickbooks and in their various tools like property management software. He spearheaded projects to build data connectors to aggregate various data sources to help build a modern data stack to help make real estate decisions. Data is stuck in silos Elite Development Group consists of a few divisions: HVAC, home performance, energy efficiency, etc. All the typical functions you'd expect a real estate company to have. Doug first started working in IT support and realized their company didn't have easy access to their data to make data-driven decisions. You've probably heard this phrase over and over again: Data is trapped in silos. You buy some off-the-shelf software (in this case property management) that is meant for one specific use case. Over time, that data needs to be merged with your customers data or sales data. You end up exporting the data in these silos to CSVs to further combine these data sources down the line. For Elite, data was trapped in property management software, Quickbooks, you name it. Starting the process to export data After doing a survey of their tools, Doug realized that there weren't many APIs to easily extract data from the source. So he helped set up data scrapers to get data off of the HTML pages. He also used tools like Docparser to extract data from Word docs and PDFs. Most data was either in XLS or CSV format, so Doug was able to set up an automated system where every night he'd get an email with a CSV dump from their property management system. This data then ended up in a Google Sheet for everyone to see and collaborate on. After doing this with property management, Doug started exploring getting the data out from their work order tracking system. Creating accurate construction cost estimates One activity Doug wanted to shine the data lens on was cost estimates as they relate to construction. Hitting budgets is a big part of the construction process. You have multiple expenditures from a job and each job needs to have a specific estimate tied to it. This could all be done in Excel or Google Sheets, but given the importance of this data, Doug decided to create something more durable. He created an internal database where each cost estimate and a specific Estimate ID. A unique identifier to give to a cost estimate. Since Elite uses Quickbooks for their accounting, each project had to be tied to a unique Estimate ID established previously. Then each work order had a unique Work Order ID. Now Elite is able to run reports on all their projects to see what the cost estimates and actual expenditures were for a job. Now they could do a traditional budget to actual variance analysis. The result? Project teams could start to see when they were about to hit their budgets in real time.
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