In the ever-evolving world of real estate and construction, innovation is often celebrated—but rarely scaled. Too many promising technologies find themselves trapped in "pilot purgatory," never making the leap from proof-of-concept to widespread adoption. So what separates a successful rollout from a stalled experiment?

In this edition of PropTech Power Talks, recorded for the London PropTech Show, we dive into this challenge with Johan Wiksell, Head of Smart Building and Corporate Venture at JM, one of the leading residential housing developers in the Nordics. Johan brings a unique dual perspective—both as a driver of internal innovation and as an active partner with PropTech startups—to explore how the industry can shift from fragmented, one-off projects to structured, scalable solutions.

Q: In real estate and construction, innovation often gets stuck in “pilot purgatory.” A company tests a promising technology, but then struggles to roll it out at scale. Why do you think that happens so often?

A: It’s largely because most of the industry sees each building or project as unique. This project-based, decentralized approach makes it hard to scale innovations. Every time a new project starts, it's as if you're starting from scratch. The lessons learned from one pilot often can’t be easily transferred to the next. That lack of standardization makes it difficult to industrialize processes, which is key to scaling. So yes, that’s one of the main reasons innovation gets stuck at the pilot stage.

Q: It sounds like there’s real tension between the push for innovation and the way projects are structured. Do you think the issue is more cultural, organizational, or technological?

A: It’s a mix of all three. From the construction and development side, the industry is traditionally structured in a decentralized, project-based way. Decisions are often made independently at the project level, with different contractors and suppliers selected through tenders for each project.

This structure was fine in the past, especially when buildings involved less complex technology and fewer regulatory demands. But it’s not suited for scaling up new technologies in a systematic way.

From the tech side, proptech and contech providers also struggle to scale with their customers. Compare that to the automotive industry: they make centralized, standardized decisions. They don't let every team independently choose things like brake systems or engines. If they did, the systems wouldn’t integrate, maintenance would be difficult, and costs would skyrocket.

We do need flexibility in construction—every site is different—but we also need to adopt a more industrial mindset if we want to scale innovation.

Q: It sounds like both a mindset and a process shift are needed. If the traditional approach to piloting and scaling isn’t working, what’s a better way forward? How should companies think differently about innovation?

A: Companies need to think with an industrial approach from the start. You need to plan how you’ll scale from the beginning—not after a pilot succeeds.

At JM, for example, we control the full value chain—from acquisition and design to construction and property maintenance. We define the products and how they’re installed, and we work with about 600 framework agreements. That means no project-level tendering.

This standardized model lets us learn from a pilot and then embed that learning into what we call our “structured capital”—essentially, how we build. From there, we roll it out to future projects.

Take facades, for example. We have nine approved facade systems. If we change or add one, we know exactly what impact that will have—on performance, on climate impact, everything. That structured knowledge lets us pilot, evaluate, and scale efficiently.

This approach is also essential to reaching our climate goals—like reducing our climate impact by 85% by 2030. Structured material use helps us make real progress there.

Q: Instead of piloting for the sake of it, companies should ask: “Can we scale this? What needs to be true for this to work long term?” Can you share an example of a technology that made it from pilot to full-scale implementation?

A: That’s a great question. And yes—before starting any pilot, the key question is: If this works, how will we scale it across our projects?

One example is access control systems. We identified a solution we liked, figured out how it should be installed and configured, and defined the conditions for its use—like which doors require which components.

We piloted it, learned from it, and built a clear process outlining what each stakeholder should do, and how the system should be handed over to the end user. That handover and training process turned out to be a critical success factor.

Once we had all that in place, we could “press go” and roll it out across all new projects.

The same logic applies to other technologies, even materials. Always keep scalability in mind—even during a small pilot. If you can't see a clear path to scale, then ask yourself: What conditions would need to change to make scaling possible?

Q: On the flip side, have you seen promising pilots that didn’t scale? What can we learn from those failures?

A: Absolutely. Even with a scaling plan, pilots can fail for a few common reasons. One is underestimating the process—failing to define clear guidelines and roles for every stakeholder involved. Without that alignment, even a great technology can stall.

Another is running a pilot before developing a proper business case. It might look great in a vacuum, but then you realize it doesn’t make financial sense to implement it broadly.

So yes, planning for scale is important—but so is doing the groundwork to make sure scaling is even viable.

Q: These are really practical insights. For companies listening—real estate firms, construction companies, or tech providers—what are the key steps they can take to escape “pilot purgatory” and actually scale innovation?

A: First, answer the key questions before starting a pilot: Can this be scaled? How? What needs to be true for that to happen?

That’s true for everyone—whether you’re a real estate developer, a construction firm, or a tech provider. From the tech side, make sure your customer has a plan for scaling before you commit to a pilot.

From the buyer’s side, take more control over what’s important. Define clear solutions and requirements, and don’t leave that entirely to the contractor or supplier. It’s okay to start small—but take ownership.

Also, don’t reinvent the wheel. Before building something from scratch, check what off-the-shelf solutions already exist. Otherwise, you’ll likely face high maintenance costs down the road.

And finally, get your data in order. Structure it, control it, and avoid vendor lock-in. That’s foundational for scaling—and for everything that comes after.

Q: If people want to follow your work or connect with you, where’s the best place to do that?

A: The best way is to reach out on LinkedIn—just send me a message and I’ll be happy to connect.

In our conversation, Johan offered candid insight into the organizational and cultural barriers to innovation, why the property sector lags behind industries like automotive, and what it really takes to move from a promising pilot to long-term impact—especially when climate goals and cost pressures are in play.

To watch the complete episode: https://youtu.be/CWIB9Fi7zQM