Simon Wild - Cundall Australia - Innovation at DHA - creating sustainable and resilient business solutions

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Innovation @ DHA

Final report back Simon Wild

Drivers of Change

Innovation @ DHA

DISCO Strategy

Summary

Drivers of Change

Innovation @ DHA

DISCO Strategy

Summary

Changing Game

Global Demand

Rules of the Game

Local Demand

Global demand drivers

Global population

Mass Urbanisation

Consumption patterns

Participation and

Collaboration

Carbon Emissions

Climate Change

Adaptation

Resource Depletion

Accelerated technological

growth

•  7.1 billion now •  9.6 billion in 2050

Global Population

•  By 2035 over 50% of the world’s population will live in urban centres

Mass Urbanisation

Consumption Patterns

•  Collaboration in design •  Sharing resources

Participation and Collaboration

Carbon Emissions

Climate Change Adaptation

Resource Depletion

Accelerated Technology Growth

Global Demand

Rules of the Game

Local Demand

Changing Game

Local demand drivers

Defence demographics

Increasing Urban

Density

Defence Members'

needs Value drivers

DHA vision

Defence Demographics

Median age at exit from ADF

Stand Alone House 82%

Townhouse 13%

Walk Up 1% 9 Storey

Apart 4%

Current es)mated DHA dwelling type breakdown Stand

Alone House 20%

Town house 18% Walk Up

36%

9 Storey Apartment

21%

27 Storey Apartment

5%

Proposed future DHA dwelling type breakdown

•  Cost of transport •  Greater walkability

Urban density

Urban density - Resilience

2001

Urban density - Resilience

2006

Urban density

Urban density

•  Storage •  Flexible spaces and

integrated home working

•  Social connection •  Ease cost of living •  Energy efficiency

Defence families needs

•  Capital growth opportunity

•  Location –  including safety –  Reputation –  access to jobs &

transport •  Government

regulation •  Amenities •  Energy/Green rating •  Ongoing maintenance

costs

Value Drivers

•  Desirable product •  Seen as innovative •  Competitive in the

open market

Demand Drivers – DHA vision

Global Demand

Rules of the Game

Local Demand

Changing Game

•  Integrated external engagement with –  ADF –  Councils –  Affordable housing suppliers

•  Some of the rules will have to change –  ADF requirements –  Council DCPs

The Rules of the Game

CHANGE

CHANGE

Innovation Waves

Speed of Adoption

The end of the road

3 Planets

0 Planets

1 Planets

2 Planets

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Business as Usual Deple,ve Development

Regenera,ve Development

Sustainable Development

Or is it?

“In engineering, fic,on, and thought experiments, unobtainium is any fic,onal, extremely rare, costly, or impossible material.”

Drivers of Change

Innovation @ DHA

DISCO Strategy

Summary

•  Better Business

•  Enhanced Community

•  Slim Logistics

•  Smart Housing

Streams of focus





Streams of focus

Better Business – One Planet Company

•  Eliminate waste •  Embed quality •  Create knowledge •  Respect people •  Optimise for the whole

Better Business – Lean Development

•  2012 UDIA Queensland Boral Awards for Excellence

•  Target other awards too

Better Business – Award winning

Better Business - Broader customer base



Purveyors of high quality, well maintained, managed semi-‐temporary accommoda,on





Streams of focus

Enhanced Community - Empowered

Enhanced Community – Connected, Resilient

Enhanced Community – Sustainability engagement

•  Borrow, lend, rent, share

•  Earn cash •  Reduce impact •  Connect

Enhanced Community – Sharing and Cooperation





Streams of focus

Slim Logistics – Alternative Storage

Slim Logistics – ‘Backpack homes’





Streams of focus

Drivers of Change

Innovation @ DHA

DISCO Strategy

Summary

‘DISCO’ Approach •  Denser •  Integrated •  Smarter •  Closer •  Optimised

Smart Housing

Smart Housing - Denser

0

5

10

15

20

25

0

100

200

300

400

500

600

Ecological Foo

tprint [g

ha/a]

internal dwellin

g size [m

²]

density [dwellin

gs/ha]

Density op)misa)on

Internal dwelling size Density Ecological footprint


$-‐

$500

$1,000

$1,500

$2,000

$2,500

$-‐

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

3 bedroom stand alone

house

3 bedroom townhouse

3 storey walk up

9 storey apartment

block

27 storey apartment

block

Total ene

rgy cost [$

/dwellin

g/year]

Absolute capital cost [$/dw

ellin

g]

Absolute capital cost Total energy cost incl common areas


0

5

10

15

20

25

0

100

200

300

400

500

600

Ecological Foo

tprint [g

ha/a]

internal dwellin

g size [m

²]

density [dwellin

gs/ha]

Density op)misa)on

Internal dwelling size Density Ecological footprint

$-‐

$500

$1,000

$1,500

$2,000

$2,500

$-‐

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

3 bedroom stand alone house

3 bedroom townhouse

3 storey walk up 9 storey apartment block

27 storey apartment block

Total ene

rgy cost [$

/dwellin

g/year]

Absolute capital cost [$/dw

ellin

g]

Absolute capital cost Total energy cost incl common areas


Smart Housing – Integrated and Flexible

Main front door with two secondary front doors within

2 bedroom unit 1 bedroom unit

Smart Housing – Integrated and Flexible

Smart Housing – Smarter



•  Promote active transport –  Cost benefits –  Health benefits –  Reduced congestion

Smart Housing – Closer

Smart Housing – Optimised

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1 2 3 4 5-‐7

Num

ber of hou

ses or m

embe

rs

Bedrooms

DHA house and needs match

Current DHA houses Current member housing fit Future Mix




•  DISCO

Streams of focus

Construction Cost: 21% Reduction on average construction cost or a savings of $74,000 per dwelling or $23,000 per person housed

Maintenance: $15,300,000 Reduction in maintenance costs by [$/yr] or 39%

Ecological Impact: 104,000 Global hectares worth of ecological impact reductions or 33% or 150,000 soccer fields

Land: 690 Soccer fields or 483 hectares, or 60% land area reduction

Energy: $4,200,000 cost reduction [$/yr] or 13% in electricity demand and 25% in gas demand or 13,000 tonnes of carbon saved

Floor space efficiency: 39% Increase in average floor space efficiency

The Possibilities

Drivers of Change

Innovation @ DHA

DISCO Strategy

Summary

Changing Game

Global Demand

Rules of the Game

Local Demand

CHANGE




•  DISCO

Streams of focus

DHA staged intervention

Construction Cost: 21% Reduction on average construction cost or a savings of $74,000 per dwelling or $23,000 per person housed

Maintenance: $15,300,000 Reduction in maintenance costs by [$/yr] or 39%

Ecological Impact: 104,000 Global hectares worth of ecological impact reductions or 33% or 150,000 soccer fields

Land: 690 Soccer fields or 483 hectares, or 60% land area reduction

Energy: $4,200,000 cost reduction [$/yr] or 13% in electricity demand and 25% in gas demand or 13,000 tonnes of carbon saved

Floor space efficiency: 39% Increase in average floor space efficiency

The Possibilities

•  Engaged an Innovation and Sustainability Manager •  Created a collaboration space to run trials •  Creating Home Of Choice

–  Compact housing study across all Government Land Organisations

–  Creating a suite of housing standards to cover DISCO –  Created a strata group to focus on change in product –  Business Services Technology group looking at energy

metering and security –  Trial in Canberra – prefab home, geothermal, energy

metering etc •  Obtained 9 of 10 for Innovation from Customer

Services Institute of Australia (CSIA)

DHA progress so far

Thank you

Real Estate

Simon Wild - Cundall Australia - Innovation at DHA - creating sustainable and resilient business solutions