The Importance of Data Standardization with Sam DeBord and Josh Darnell of RESO
Jul 19, 2023
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Sam DeBord and Josh Darnell discuss the complexity of the residential proptech industry and RESO's efforts to address it. Topics include MLS landscape evolution, RESO's goals and progress, international expansion, how MLSs can support innovation, and best practices for startups.
Data standardization is crucial for the evolution and efficiency of the real estate industry, and RESO is leading the way in creating standards and promoting data standardization within the MLS landscape.
The implementation of data standardization faces challenges, but its benefits include greater efficiency, interoperability, and competition within the industry, fostering innovation and enhancing the overall quality of products and services offered to consumers.
RESO tracks its progress and success through key performance indicators (KPIs) focused on the utilization of its standardized data feeds, with over a third of the industry already converted and international expansion in progress, demonstrating the positive impact and trust in the standardized data approach.
Deep dives
The importance of data standardization in real estate
Data standardization is crucial for the evolution and efficiency of the real estate industry. The Real Estate Standards Organization (RISO) is leading the way in creating standards and promoting data standardization within the MLS landscape. The adoption of RISO's Web API and data dictionary is steadily increasing in the United States and Canada. However, there is still work to be done to encourage more MLSs to convert to the standardized data feeds. The progress in adoption is tracked through utilization metrics, and RISO aims to reach a critical mass where trust and convenience drive greater adoption. International expansion is also on the horizon, with countries like Canada already adopting RISO standards, while others are exploring possibilities. Education, awareness, cost, and planning are factors that can hinder adoption, but RISO is working to address these challenges and make data standardization more accessible and beneficial for all stakeholders.
Challenges and benefits of data standardization
The implementation of data standardization faces various challenges in the real estate industry. Inertia, friction, and the considerable cost and resources required pose obstacles for MLSs to convert to standardized data feeds. Market size and limited staffing can also impact the adoption process. However, the benefits of data standardization are significant. It allows for greater efficiency, interoperability, and competition within the industry. Startups can thrive when operating in a standard-based environment, fostering innovation and enhancing the overall quality of products and services offered to consumers. While it may take time and effort to overcome the challenges, the long-term advantages of data standardization make it a worthwhile endeavor for the real estate industry.
Tracking progress and KPIs
RISO tracks its progress and success through key performance indicators (KPIs) that revolve around utilization and adoption. The primary focus is on the utilization of RISO's Web API and data dictionary in the marketplace. The goal is to have MLSs and their customers actively using the standardized data feeds, showcasing the value and effectiveness of the standardized approach. The KPIs indicate a steady growth in adoption, with over a third of the industry already converted to the standardized feeds within a relatively short period. International expansion is also part of RISO's progress, with countries like Canada embracing the standards and other nations showing interest. The increasing adoption and utilization of RISO's standards demonstrate the positive impact and trust in the standardized data approach.
Product tools and their role in advancing data standardization
RISO has developed powerful product tools to support and advance data standardization in the real estate industry. One notable tool is the RISO Analytics platform, which provides comprehensive insights and visualizations of the adoption of standardized data feeds across different markets. This tool helps MLSs and stakeholders track progress, compare adoption rates, and make data-driven decisions. It also showcases the effectiveness of the standardized approach and encourages further adoption. RISO's commitment to building practical and user-friendly product tools contributes to the overall success of data standardization, enabling MLSs, startups, and other industry players to leverage the benefits of standardized data.
The Value of Collecting Data and the Impact on RISO
Collecting and analyzing data has become an essential step for RISO, converting the organization into a data-driven one. By leveraging the data, RISO can make more informed decisions and avoid creating new solutions when existing ones are already widely used. With a group of 80 people participating in meetings, RISO gains insights into what is happening in over 500 markets, allowing them to identify patterns and match requirements effectively.
The Benefits of RISO's Certification Process and Future Plans
RISO's certification process has helped in transforming MLSs into more efficient organizations. The comprehensive certification results allow providers and MLSs to align on data availability, performance, and trends, ensuring that the systems are right before approval. Additionally, RISO is working on alignment reports that will help MLSs analyze market standardization and find intersections for data sharing. The upcoming reports and tools aim to provide valuable information for startups, vendors, and MLSs, enabling them to make informed decisions and strategically target markets for their products and services.
Evan, Sam, and Josh discuss why the residential proptech industry is so complex and what RESO is trying to do to fix it. Topics discussed cover the evolution of the MLS landscape, the origins of RESO, their goals, their KPIs, their progress, RESO's international expansion, what MLSs can do better to support innovation and startups, and best practices for startups tying to enter the space.
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