In the interview with Stefan Schwärzler, CFO of Objektkultur Software GmbH based in Karlsruhe, and the customer Christian Seidel, Managing Director of LB Immobilienbewertungsgesellschaft mbH

Many medium-sized companies used the time of the Corona pandemic to significantly advance digitalization within their organizations. The situation has shown which weaknesses German companies have in the field of digitalization. To implement large-scale measures in this area, many companies are opting for the use of Microsoft technologies. The use of proven software modules in combination with a full-service provider promises good results and long-term stability. In an interview with Stefan Schwärzler, CFOO of Objektkultur Software GmbH and their customer LBImmoWert with Managing Director Christian Seidel, we talk today about the key factors for a long-term and successful project partnership and the role of the managing directors of both companies.

DIGITAL FUTUREmag: Mr. Schwärzler, Microsoft has recently been extremely affected by cyberattacks. Microsoft technologies are often a popular target for hackers. In your opinion, what still speaks in favor of companies choosing Microsoft technologies?

Stefan Schwärzler: It is clear that Microsoft, as a market leader in various disciplines and due to its presence in the business customer world, is heavily affected by cyberattacks. In recent years, Microsoft has invested billions and will invest further billions in the security of its cloud services in the coming years. I would like to briefly illustrate this with two simple examples. Until a few years ago, system intrusions were only detected after many weeks. Thanks to intelligent behavioral analysis services, this has been reduced to just a few seconds, so that countermeasures can be taken immediately, either automatically or manually. Another well-known example is the discovery and shutdown of the world's largest botnet "Necurs" in 2020, which criminals used, among other things, for Trojans and spam emails. Achieving such successes requires SIEM solutions and adherence to a Zero Trust Security approach. Azure Sentinel is Microsoft's SIEM solution, which enables companies to detect and combat threats using artificial intelligence.
We help companies secure identities and data reliably based on these Microsoft technologies. Over 60% of all attacks are based on identity theft, which is why we always start with identity management, for example a cloud-first strategy, strong (multi-factor) authentication. Microsoft provides all these tools to ensure companies' security. The biggest weakness remains the human factor.

DIGITAL FUTUREmag: When a company decides on a large scale to digitalize existing process workflows, all departments are typically involved and existing document paths are reviewed. What is your general approach at Objektkultur?

Stefan Schwärzler: In our daily consulting, we notice that the mere digitalization of manual processes brings only limited added value. That’s why the most important component in our consulting is to create new opportunities through digitalization and involve all stakeholders in the overall process. Our consulting approach therefore always considers the big picture and focuses on integration across multiple applications, systems, and even clouds. Connected applications generate far greater added value than the mere digitalization of paper-based processes. Our approach involves analyzing and reshaping processes with all stakeholders first, for example through Eventstorming. In our collaboration, it’s very important for us to provide a team with diverse roles that integrates seamlessly into the customer’s team. Together, we then implement the new processes using a lean approach to keep complexity manageable even in the future.

Two other key terms in our approach are DevOps and change management. Through DevOps methods, we ensure that software and systems can be maintained optimally during ongoing operations without interruption. Using change management—and this brings us full circle—we engage all stakeholders at the endpoints so they can make optimal use of innovations from the very beginning.

DIGITAL FUTUREmag: LBImmoWert and Objektkultur have a long-standing strategic partnership. What was it like during the first project 14 years ago?

Christian Seidel: Objektkultur immediately impressed us with their open and dynamic employees. There was an immediate understanding of our service, which has continued to grow with changing requirements to this day. This uncomplicated and friendly collaborative approach is driven by a shared interest in reforming real estate valuation through the use of databases and innovative IT solutions. Problems are immediately addressed, openly discussed, and resolved through joint implementation.
Fueled by their high commitment to customer ideas, Objektkultur established itself as a partner with us. The conveyed spirit that “nothing is impossible” created an atmosphere from the very beginning that fostered a shared desire to achieve something together.

DIGITAL FUTUREmag: What role do company executives in particular play in the introduction of new technologies in a company, and how would you describe a long-term and successful project partnership?

Stefan Schwärzler: You’ve hit the nail on the head: project partnership. Customer-supplier relationships have changed significantly in recent years. While supplier relationships or extended workbench models still exist, Objektkultur strives for a partnership-based approach with all its customers. The foundation for this is positive and direct communication at all levels, including senior management. Our experience with this has been overwhelmingly positive.
This brings me to the first part of your question. Especially in management—and above all in senior management—there must be a willingness to change and adopt new technologies. Without this willingness, even the most innovative impulses from employees will struggle to be implemented. Senior management must lead by example and embody this responsibility. This applies to me here at Objektkultur as Managing Director and Head of Operations and Internal Administration. We must constantly evolve, both in our processes and in our technology.

Christian Seidel: The basis for a long-term successful partnership is open communication. The perspective of specialists combined with years of experience can be very helpful in realizing visionary projects—even if it sometimes means deviating from the path already taken. With Objektkultur, we have a partner at our side that consistently points us toward new technologies and their potential applications for our business goals. Moreover, we have OK as a specialist who helps us turn our visions into reality.
Equally important is inspiring employees to embrace innovation. It’s crucial to address any fears or prejudices sensitively. Transparent communication is essential to convey the benefits of new technologies to the workforce. Only then can enthusiasm for innovation be fostered and contribute to business success. For new technologies to be successfully introduced in a company, it’s evident that senior management must be open to innovation and recognize the potential it offers for the company.

DIGITAL FUTUREmag: LBImmoWert has been a customer of Objektkultur for many years. How would you summarize the holistic project? What has Objektkultur implemented, and what do future projects look like?

Stefan Schwärzler: From day one, Mr. Seidel and the LBImmoWert team recognized that a custom-fit software solution—and implementing it within a long-term, genuine partnership while continuously evolving it—was indispensable for their business model. We’ve now been operating the platform together for well over 10 years.

Christian Seidel: At that time, we began to jointly build our order and research manager, ARM for short, with Objektkultur. Since then, ARM has been further developed and forms the core component for order management at LBImmoWert. With the help of a bespoke inspection app developed by Objektkultur, the appraiser has access to a wide range of information stored in ARM on their smartphone before starting the inspection, such as the necessary contacts, addresses and documents. Based on a process model developed by our appraisers, defined inspection features are recorded and photographed in the app. The digitalisation of the inspection process has enabled an important step towards increasing efficiency.

The most recent projects realised together with Objektkultur were WikiValue and WI24. With the information tool WikiValue, appraisers receive a quick overview of a possible classification of the property in the context of the real estate already in the system after entering just a few parameters at the touch of a button. With the value indication WI24, we were able to create a digital tool with the support of OK that accelerates the valuation of larger property classes. By using the innovative digital tools and evaluation methods integrated in the platform, as well as the extensive LBImmoWert database, experienced appraisers throughout Germany can determine a reliable expert indication of market and lending value, land value and remaining useful life within just 24 hours.

DIGITAL FUTUREmag: Mr Seidel, how does your innovative digital platform stand out from the competition?

Christian Seidel: Our database, which also forms the basis of our two tools WI24 and WikiValue, is largely based on data recorded and verified by appraisers in valuations as well as on real transactions. Other providers with comparable tools predominantly use offer data for their evaluations. A further advantage of the LBImmoWert database is the high number of data on commercial real estate, including special properties.
Furthermore, we use Location Intelligence on our innovative digital platform. Using 800 different geodata sets, an AI model determines a relative rent or purchase price level based on the LBImmoWert database and displays this on a map. Thanks to a highly detailed evaluation, i.e. in the form of tiles measuring 25 m by 25 m, it is possible to make statements about the market rents and purchase prices per m² of usable space in this area. Location Intelligence is currently used for office and residential real estate in Germany’s top 7 cities. Expansion to other asset classes and cities is in progress.

DIGITAL FUTUREmag: What changes have occurred in the market since the start of the project 14 years ago?

Christian Seidel: When LBImmoWert took on a pioneering role in the development and establishment of databases in the field of real estate valuation and research, the use of databases and digital applications in real estate valuation has since become established. However, most competitors focus on residential properties, particularly in the small loan segment for single-family homes and condominiums.
LBImmoWert, on the other hand, concentrates on commercial properties and special real estate assets such as logistics halls, hotels, nursing homes, etc., setting us apart from our competitors. This allows us to provide explicit evaluations for these special properties thanks to this extraordinary “data treasure.”

Stefan Schwärzler: Over the years, not only the market but also framework conditions such as legal requirements, technologies, etc. change. These are things that need to be addressed as early as possible. In the meantime, numerous technological leaps have been made and new features utilized, ensuring that the application remains state-of-the-art for its users. For the future, we see increased use of artificial intelligence, for example, to make predictions for real estate valuations.

DIGITAL FUTUREmag: Successful companies depend on committed employees. What are the key characteristics of LBImmoWert’s corporate culture?

Christian Seidel: Over ten years ago, LBImmoWert began shaping its corporate culture together with its employees. Guidelines for the company were developed in workshops. In 2019, we worked with our staff to create our 2025 vision. For example, we placed a strong emphasis on fitness. Currently, we are launching LBImmoFit, an initiative to promote health within the company. During an active break, colleagues can participate in a workout via Microsoft Teams at their workplace.
Unfortunately, this year, like in 2020, our traditional company event—a highlight for all employees—had to be canceled due to the coronavirus pandemic. Normally, our employees look forward to personal exchanges in a relaxed atmosphere. In addition to professional topics, a great deal of focus is placed on shared leisure activities, such as hiking followed by summer tobogganing in the Bavarian Alps, rafting on the Isar River, or dragon boat racing on the Havel River.

DIGITAL FUTUREmag: Let’s take a look into the future together. Where do you see companies in five years? What are your strategic goals?

Christian Seidel: In the coming years, LBImmoWert remains committed to significant growth. The rapid changes in customers’ IT landscapes present us with the challenge of accepting orders as efficiently and structured as possible. Therefore, we aim to develop a front-end that performs initial structuring and data analysis steps.

Stefan Schwärzler: We are moving in the same direction here. We want to continue growing organically with Objektkultur. Over the past five years, we have more than doubled in size. We should also succeed in doing so in the next five years. The course has been set for this.
In our collaboration with customers and partners, our main focus is to have everything digitalized to the point where we only need to discuss optimization rather than the actual digitalization. For us, this goes hand in hand with the fact that all solutions we develop are operated in the cloud.
Regarding artificial intelligence, we expect a significant proportion of our project plans to involve this.

DIGITAL FUTUREmag: Thank you very much for the exciting conversation and the clear insights into your two business areas.