What is Horizontal Digital Integration (HDI) and why does it matter to you?  

Background to HDI (Horizontal Digital Integration)

To first understand what Horizontal Digital Integration (HDI) is, we have to understand the current home buying and selling landscape in the UK.  

In the last 10-15 years, the UK property market has been through the first phase of a digital transformation, where isolated processes were digitised vertically (see image 1).  

(Image 1 - Phase 1 Vertical Silo'd Home Buying Journey)

Although certain parts of the process saw some integration, fundamentally significant friction persisted throughout. Across the entire ecosystem, the first phase of digital transformation has not substantially improved the user experience. Moreover, transaction times have not reduced and continue to average at around 200 days.  

The industry has now entered a transformative, second phase of digital transformation. In response to this shift, we at Novus Strategy and Consulting have developed the category ‘Horizontal Digital Integration’ (HDI). (see image 2) to help companies transition from vertical silos to a more integrated, horizontal approach.  

(Image 2 - Phase 2 Horizontal Digital Integration across the Home Buying Journey)

What is enabling HDI (Horizontal Digital Integration) 

1. Digital Maturity

Enabling this second phase of digital transformation is digital maturity. Across the market segment, all the stakeholders including consumers, must reach a certain level of digital maturity. This digital maturity enables us to focus on and prioritise interoperability, which directly leads to greater predictability. With this predictability, we can improve the process, enabling people to clearly understand transaction timelines.  

HDI (Horizontal Digital Integration) emphasises the end-to-end integration of all stakeholders in the ecosystem- estate agents, lenders, brokers, law firms, vendors, and HMLR-  into one seamless, interoperable digital framework. This approach will streamline the entire property transaction process and foster collaboration and innovation, reducing transaction times and significantly improving the overall consumer experience.  

2. Data Maturity  

In addition to digital maturity, data maturity plays a crucial role in enabling HDI (Horizontal Digital Integration). As the property market evolves, establishing robust data standards is essential for fostering seamless interoperability across the ecosystem. Initiatives like the OPDA (Open Property Data Association) are one example driving widespread progress by developing open data standards, common APIs, and models for data provenance. These advancements are crucial for achieving greater data maturity, enabling seamless data sharing, enhancing trust, and improving overall market efficiency. 

With greater data maturity, estate agents, brokers, lenders, law firms, HMLR and vendors, can operate with consistent and high-quality data, which enhances predictability and efficiency in the home buying process. This not only supports the technical integration of systems but also enables more informed decision-making, ultimately accelerating transaction times and improving the overall consumer experience. 

What are the implications for stakeholders? 

Horizontal Digital Integration (HDI) offers significant benefits to all stakeholders in the property ecosystem.  

For estate agents, HDI (Horizontal Digital Integration) improves customer experience and reduces drop-off rates by enabling better communication and visibility throughout the transaction process.

Brokers benefit from greater predictability, real-time updates, and closer collaboration with lenders, boosting consumer confidence.

Lenders gain the ability to offer more predictable transaction times, reduce risk, and improve customer satisfaction.

Law firms experience faster completion times, improved transparency, and stronger client trust.

HMLR (HM Land Registry) sees fewer requisitions, higher predictability, and increased efficiency in land registration.

For PropTech vendors, HDI (Horizontal Digital Integration) allows for broader market reach, greater collaboration, and strategic growth through horizontal expansion, enabling them to handle more transactions efficiently.

Overall, HDI (Horizontal Digital Integration) enhances efficiency, collaboration, and customer satisfaction across the property market.  

Companies that fail to adapt to the HDI (horizontal digital integration) blueprint risk being left behind and losing significant market share as the market shifts towards more efficient, collaborative, consumer-centric models. The upcoming blogs will cover the importance of HDI for specifically each stakeholder group and will outline what you should be implementing.  

To discover more how Novus Strategy and Consulting can support your horizontal digital transformation, email us: hello@novus-strategy.com or call: 0208 088 3410  

About Novus Strategy and Consulting 

Novus Strategy and Consulting helps companies navigate digital transformation through strategic consulting and workforce acceleration. By providing access to top talent and scalable solutions, we drive growth and ensure the successful implementation of projects aligned with Horizontal Digital Integration (HDI). 

Find our site links, services and contact details below for more information.