Nenad Bozic, CEO of SmartCat – PropTech Solutions to Become Necessary for Development and Optimization of Business Operations in Real Estate Sector

In the region, PropTech solutions are still in an early development phase and are perceived as a luxury. However, the energy crisis that we have been witnessing in the past year has made the need for the optimization of energy consumption even more obvious. Investors are increasingly ready to invest in such solutions, because it is increasingly understood how important they are for sustainability and efficiency in business.

This is what Nenad Bozic, the CEO of the Novi Sad-based company SmartCat, which has been successfully developing solutions based on artificial intelligence for over seven years, says in his interview for eKapija.

As he says, SmartCat was founded with a single goal in mind – to help people make better, that is, smarter decisions using artificial intelligence (AI) and data.

– We have seen the potential, because, as the founders, we are pretty analytical ourselves and we understand how important it is to have the right information at the right time. AI comes as the icing on the cake, in order to make some things optimal, to make the human potential free from repetitive tasks and have it deal with creative ones. SmartCat is designed to deal with end-to-end solutions based on data, which means that we are capable of developing a solution which relies on data from the idea to the production stage – Bozic told us.

He says that SmartCat has gone a long way in seven years. The team, which currently consists of 70 people, covers all the roles necessary for the realization of such solutions.

– Infrastructural engineers, data engineers, data analysts, business analysts and software developers are only some of the experts that are in the team. We are focused on the fields of the management of energy, smart buildings, healthcare, retail and e-commerce and we have managed to develop more than 20 solutions that have helped our clients save money and time. SmartCat is a company which is developing and growing with each day and we are proud to be able to help our clients focus on what’s most important – making smarter decision by using data – he adds.

SmartCat has also successfully positioned in PropTech, which has become a hot topic in the past few years. With the advent of the energy crisis, this sector, it seems, has become even more important. Bozic says for our portal the company has successfully positioned in this segment through a combination of internal investments and development, as well as by working with clients with similar problems.

– For example, we have dedicated the past four years to the development of a sophisticated solution for the automation of the control of devices for ventilation, heating and cooling in office spaces, using sensor data and AI. This enables precise and efficient optimization of energy consumption, which achieves considerable cost savings. We have also worked with clients who are in the space analytics business, which enables a better understanding of space use and their optimization. These analytics are used for improving the efficiency, increasing the sales or reducing the costs – Bozic points out and adds that energy management and space analytics are some one the most promising branches of PropTech, in which they see the biggest potential for growth and development.

Talking about the advantages of the implementation of such solutions, eKapija’s interviewee says that they are primarily reflected in the reduction of energy consumption and an increase in the efficiency.

– The automation of the control of devices for ventilation, heating and cooling, combined with space analytics, enables precise and efficient optimization of energy consumption, which is reflected in the reduction of costs for the end-user. In addition to that, space analytics enable a better understanding of the use of space, which can be used for improving the efficiency, increasing the sales, or reducing the costs – he adds.

As for the implementation costs, he says that they shouldn’t be high, because in most cases these are newer-generation devices which have the option of sending the data to the server and taking remote commands, and they mostly pertain to setting up the sensors.

– These solutions are primarily meant for spaces with big energy consumption, such as industrial and commercial facilities, as well as spaces featuring newer equipment – he says.

As the real estate market in the region is expanding, there are more and more smart buildings, and energy solutions have become a necessity, we have asked Bozic to what extent PropTech solutions are present here and how ready investors are to invest in them.

– PropTech solutions in Serbia and the region are still at a relatively early development phase and are perceived as a luxury. However, it is noticeable that the interest in this field has grown in the past year, especially because the energy crisis has made the need for the optimization of energy consumption even more obvious. Investors in the region are increasingly ready to invest in such solutions, because it is increasingly understood how important they are to sustainability and efficiency in business – eKapija’s interviewee says.

– Considering that the market of smart buildings is expected to grow fourfold in the next ten years, we can expect an even stronger integration of the technology into the operations and building management systems – he adds.

As he says, the data and the analytics generated by these systems can considerably improve our lives and environment, providing us with an insight into and enabling the automation, management and optimization of various systems within the building, such as HVAC, security, lighting and water supply.

– This can save costs for the owners and the tenants in the long term and reduce the waste generated by the building, playing an important role in achieving the goals of net zero emissions. By using Machine Learning/Artificial Intelligence, the owners can optimize the profit, the costs and the savings – Bozic clarifies.

He also says that it is important to emphasize that there is still a need for education and the promotion of these technologies in order to increase the understanding of their potential and increase the readiness of investors to use them.

– It is likely that, in the future, PropTech solutions will become necessary for the development and optimization of business operations in the field of real estate, which will lead to an increase in the interest and investments in this field, and then we need software solutions with which to achieve this – he points out.

When asked whether the use of such solutions could mitigate the energy crisis, but also contribute to environmental protection, Bozic answers:

– Definitely! The implementation of the PropTech solutions for the optimization of energy consumption has a direct impact on the environment. By increasing energy efficiency and reducing the consumption, the CO2 emissions are reduced. On the other hand, the optimization of the operations of the devices reduces the CO2 emissions. I like to say that PropTech solutions save your money and the planet at the same time. We don’t have to sacrifice one for the other, just use the smart technology.

As SmartCat has been developing PropTech solutions for four years now, our interviewee says that their team is especially focused on Building Energy Efficiency, Asset & Maintenance Management, Space Optimization, Location Analytics and People Movement and Distributed Energy Resources.

– We believe that PropTech solutions are the key factor for achieving long-term success in the world of smart buildings and business in general. Our team especially focuses on the development of technologies which enable a more efficient real estate management and an improvement of the quality of the living space. By using intelligent systems, smart devices and sensors, our clients generate the data from which they make further decisions, which leads to an improvement of their business results and an increase in the competitiveness in the market. We are convinced that PropTech solutions will be crucial to the success of our clients in the future, especially in the time that’s coming, which is the time of energy efficient solutions – Bozic points out for eKapija.

SmartCat has also developed the Optimus Power solution, with which they placed among the 14 best European teams at the prestigious PowerUp! energy and clean technologies contest in 2019, but also drew attention from foreign investors. Bozic says that it’s an innovative PropTech software solution for analytics and smart management of devices for air-conditioning, heating and cooling, which provides a solution for energy efficiency in commercial facilities.

– We developed the product in 2019 and very quickly realized that the software was just part of the whole story, and that the story in fact begins with the construction engineers and designers who choose the devices themselves in line with the needs of the space, as well as the automation technicians who connect the systems in order for the data to be transferred to the central server. We are currently looking for partners. On one hand, it’s construction engineers, designers, as well as automation technicians, and on the other, we are looking for pilots (for buildings which have the necessary installations) in order to show the value of the product – he says.

Optimus Power won an award for SmartCat at the prestigious contest PowerUp! by InnoEnergy.

– The problem we want to solve is how to build energy efficient buildings and stop losing energy, while at the same time generating a strong economic impact on the balance of our clients. Optimus Power enables you to save up to 35% energy, creating considerable savings in your budget. The current situation is an excellent opportunity to redirect money into new technologies and business opportunities – he says.

Our interviewee believes that the PropTech sector definitely has a bright and positive future, because there’s an increasing need for the development of technologies which will help with sustainable real estate management and a reduction of the negative environmental impact.

– The regulation which concerns the reduction of CO2 emissions and environmental protection, as well as the energy crisis, will certainly have an impact on the development of this sector. It would not be bad to mention that there’s a goal of reaching 0% CO2 emissions by 2030, which was adopted as part of the Paris Agreement, which brought together over 190 countries from the whole world. The Paris Agreement was made at COP21 (the 21st United Nations Climate Change Conference) in December 2015, and it aims to reduce global warming to the level below 2 degrees Celsius through a reduction of the emission of harmful gases. All the countries obliged to propose and regularly report on their national goals for emission reductions. The goal of 0% CO2 emissions is one of the most ambitious goals of the Paris Agreement, which entails a full shift to renewable energy sources and a reduction of the emission of harmful gases in industry, transportation and construction – our interviewee says.

Talking about the plans of SmartCat, he points out that they will continue focusing on PropTech technologies, investing in R&D and deepening the knowledge through their work with the clients.

– We plan to focus on smart solutions for more efficient real estate management and to use the potential we see in this sector – Nenad Bozic, the CEO of SmartCat, concludes in his interview for eKapija.

Dragana Obradovic

SmartCat doo Novi Sad

Nenad Božić

PropTech

PropTech solutions

Optimus Power

artificial intelligence

energy efficiency

energy efficient facilities

energy management

green building

smart buildings