Smarter BuildingsA smarter way to manage real estate and facilities

Jens Cajus

Service Management and Asset Management

IBM Danmark ApSCajus@dk.ibm.com+45 2880 4360

Agenda

• Smarter buildings overview– Drivers– Who should care?– Real estate management challenges– What are smarter buildings?

• What IBM offers• Smarter buildings benefits• What is your next steps ?

Drivers

Reduced costsProperty is often the 2nd highest

cost after staff

LegislationGHG emissions, energy use, water use, waste tracking, environmental

measures, accountancy laws

GlobalizationBenchmarking

globally disparate operations

Real estate & facilities functions NOW have an opportunity to drive strategic business value

Properties operating as silos of systems and data

Too many business processes require manual intervention

Difficult to determine the value of FM services

Loss of corporate knowledge to 3rd parties

Difficult to identify true full cost of operating a property

Disparate building management systems

Rich data is often unexploited in pursuit of business efficiency

Disparate facilities providers in soft and hard services

Smarter buildings – who should care?• Companies with:

– more than 20 buildings in their portfolio– over 1 million sq. ft. of real estate– environmental reduction targets– OpEx & CapEx reduction targets– ambitions for growth & innovation

• Oversees the finances of the entire company• Cost, Data, Globalization, Compliance

CFO

• Operates property like a business• Cost, Data, Reliability, Action, Globalization,

Compliance

Corporate Real Estate

• Sets company sustainability strategy• Cost, Data, Action, Compliance

Sustainability Manager

What are smarter buildings?Smarter buildings are well managed, integrated physical and digital infrastructures that provide optimal occupancy services in a reliable, cost effective, and sustainable manner.

Data-Accurate- Granular- Real-time

Action

- Support-based decisions- Immediate- Performance-based maintenance

Results- Lower

costs- Lower

risk-

Increased

reliability-

Portfolio fit for your

business-

Increased growth

Risk Data Action

Innovation Cost

Evolution of a smarter building – where are you?

Manage

Optimize

Transform

Gain greater controlover your facilities data,systems, people and processes.

Build more effectivenessinto your operations acrossthe lifecycle of facilitiesassets.

Achieve a smarterbuildings strategy togenerate higher returnson facilities assets.

Maturity

Val

ue

Increased productivity Improved compliance Historical analysis Reduced cost

Improved decision-making Mitigated risk Real-time analytics Increased return on investments

Automated real-time response Predictive analytics Institutionalized controls Increased return on assets

IBM TRIRIGA

IBM TEO

IBM Research

IBM solutions for smarter buildings enable energy, operations and space efficiency

Environmental & Energy

Management

Real-time energy & operating analytics

Event filtering & correlation

Utility consumption trackingCarbon

measurementEnvironmental

investment analysisBMS integration

Facilities Management

Space utilizationCapacity planning

Move, add, changeReservations

CAD integration

Facilities Maintenance

Asset managementWork management

Inventory managementSupply chain

Key managementCondition

monitoringBMS integration

Capital Project Management

Condition assessment

Capital planning & budgeting

Construction estimating &

project management

Real Estate Management

Strategic portfolio planning

Budgeting and forecasting real estate expense

Lease & contract admin

Environmental and energy management to achieve sustainability goals

Main Feature

s

• Pre-built integration to building management systems and equipment sensors

• Advanced real-time energy and environmental analytics

• Environmental funding analysis for capital projects such as energy efficiency programs

Benefits

• Automates capture of energy, waste and water consumption data to accelerate data analysis

• Identifies inefficient assets and generates corrective work orders to increase energy efficiency

• Enables continuous energy performance optimization

IBM has emerged as a leader in carbon and energy management software based on its advanced capabilities and solid market momentum.David Metcalfe, Chief Executive Officer, Verdantix

Featured IBM solutions: IBM TRIRIGA Energy Optimization; IBM TRIRIGA Real Estate Environmental Sustainability ManagerFeatured IBM solutions: IBM TRIRIGA Energy Optimization; IBM TRIRIGA Real Estate Environmental Sustainability Manager

IBM’s Strategic Facility Planning is just that. Strategic.Michael Bell, former Research Vice President at Gartner, Inc.

Facilities management to increase utilization of facility assets

Main Feature

s

• Scenario modeling and analysis for all types of facility planning —strategic, master and tactical

• Employee self-service with automated service management processes and controls

• Workplace reservation management for shared workspaces, conference rooms and assets

Benefits

• Determines best-fit facilities planning scenarios to increase return on facilities assets

• Accelerates product/service and move requests to increase service efficiency and reduce costs

• Increases space utilization to reduce occupancy and operating costs

Featured IBM solutions: IBM TRIRIGA Facilities Manager

IBM software will help implement our NexGen IT vision and give USAF a data-driven approach to manage its real property and physical assets, as well as help us predict issues before they impact service and safety.Chief Information Officer, U.S. Air Force

Facilities maintenance to extend the life of critical assets

Main Feature

s

• Self-service and duplicate request management processes for corrective maintenance

• Preventive maintenance processes and integrated Service Level Agreements

• Routine-based inspections and integrate condition-based maintenance

Benefits

• Avoids costly dispatches of internal or external service providers to resolve duplicate issues

• Automates generation an dispatch of preventive maintenance tasks to extend life of critical assets

• Evaluates operational, financial and environmental returns to optimize investments

Featured IBM solutions: IBM TRIRIGA Workplace Operations Manager; IBM Maximo Asset Management

[IBM] provides strategic decision-making tools, rather than just tactical applications, and it hits on all of the top priorities that executives need to accelerate and deliver cost-effective capital programs.Global Director, European Manufacturer

Capital project management to generate highest return on invested capital

Main Feature

s

• Program and project portfolio management, with funding request analysis

• Critical path scheduling, critical date alerts and automated reminders

• Consultant and contractor management processes and controls

Benefits

• Generates high return capital projects that balance risks, financial and environmental returns

• Identifies critical tasks and processes to reduce program and capital project schedules

• Automates procurement and contract life cycles to reduce change orders and overpayments

Featured IBM solutions: IBM TRIRIGA Capital Project Manager

IBM has been among the earliest to focus on and develop functionality for the impending FASB/IASB accounting change.Rob Schafer, Research Director, Gartner

Real estate management to build more effectiveness into real estate operations

Main Feature

s

• Site selection analytics with project-specific weighting of financial and non-financial criteria

• Critical path scheduling, date alerts and automated reminders

• Real estate payment reconciliation processes and controls

• Lease accounting financial analysis, and audit controls

Benefits

• Generates higher return real estate transactions that balance financial and non-financial needs

• Identifies critical tasks & processes to reduce real estate transaction & lease administration cycle times

• Identifies landlord overcharges to reduce occupancy & operating costs

• Accelerates compliance with new global lease accounting standard

Featured IBM solutions: IBM TRIRIGA Real Estate Manager

IBM smarter buildings case studies & benefits

Tulane UniversitySmart is: Collecting, managing and analyzing data from buildings to gain

intelligence and insight to energy and facilities management for a significant projected energy savings.

IBM Real Estate Site OperationsSmart is: Consistently achieving energy cost reduction on equipment monitored of

between 10-15% and reactive maintenance decreased by 16%

Global 20 CompanySmart is: Improved operational processes and performance management resulting

in reported real estate cost savings of $925 million within first four years.

Managing Buildings Smarter: IBM TRIRIGA Energy Optimisation (ITEO) solution overviewAdvanced operational & energy analytics which:

• Uncover previously hidden systemic operational and energy use malfunctions and inefficiency (waste)

• Drive down operational costs and energy use • Continuously monitor and improve performance

Provided through near real-time data collection, event enrichment and automatic work order/ service request generation.

Takes existing large amounts of data:• Transforming it into intelligent & interconnected actionable information

Enabling end users to:• Ensure reliability• Reduced maintenance costs• Reduced energy costs

15

Complex, inter-related

data sets provide new

insights

Enables collection of

large data sets

Transform current

practices

Deliver and maintain best

practice, efficiency and cost reduction

Smarter buildings require continuous improvement

CollectData

Analyze, Identify,Act

Apply Changes

Monitor, Measure, Maintain Results

Reports

Instrumentation

Enterprise View

IBM Intelligent Buildings

Buildings

Automated Work Orders

Enterprise Energy Metrics Energy Analysis view

Data Sources

Meter

Real Time Collection Processes

Real time energy tracking

Performance base monitoring

Energy & Operational analytics

Maintenance management

Route cause analysis

Energy systems integration

ITEO Energy and maintenance management

Energy management

Systems

Building management

Systems

Databases

Performance Management - Using the dataBusiness rules alert when equipment is operating sub-optimally

AHU Cooling Valve Passing - Leakage

Detection

AHU in Override mode for 2 or more consecutive hours

AHU Simultaneous Heating & Cooling

AHU Cooling Control Alert - High Building Zone

Temp

AHU Economiser Mode Alert - Not in Free Cooling Mode

AHU Heating control issue (Valve)

Client Project - Tulane University/New Orleans (USA)

Goal to solve building shortcomings with the most effective and energy-efficient approach:

• 100 year-old Richardson Memorial Hall• Connect existing systems to collect metered data• Use advanced analytics to gain insight in building

condition• Bring together disparate data to drive better decision

making• Collection and analysis of heating, air conditioning,

electric usage, and water consumption

Post-ITEO

Results: Energy SavingsPre-

ITEO

IBM Rochester pilot roll outRochester, MN

IBM internal Project

IBM Rochester, 3.3M sq ft multi-building mixed use light industrial campus. Facilities date to the 1950s. Consistently achieved year on year energy reductions of 5% to 7% over the last 10 years.

• Reactive maintenance decreased by 16%• Hours per work order reduced by 34%• Total number of work order hours decreased by 49%• Energy cost reduction on equipment monitored of between 10-15%

Baseline Energy Maint. Activity

New Information Drives more work

ordersAreas of Maintenance Savings• Root cause identification• Reduced reactive maintenance• Reduced PM’s • Reduced work order hours

ImmediateEnergy savings

• Property Characteristics:– 3.3M sq ft multi-building

mixed use light industrial campus

– Facilities date to the 1950s

• Scope:– BMS/metering integration– HVAC sensors/metering

point integration– Lighting management– Perimeter pre-heat– Chiller optimization– Advanced analytics– Dashboard for energy,

carbon, maintenance, space, etc.

-100%

-50%

0%

50%

100%

150%

200%

Prior Yr QtrlyAve

4Q10 1Q11 2Q11 3Q11

# of Work Orders Work Order Hours

AHU Work Order Numbers & Hours

- 16%

- 49%

ITEO Results: Maintenance savings

Pre IIBM Post IIBM

Ave Hr/WO

- 34%

Average Hours Per WO

420

1680

353

1412

932

0

200

400

600

800

1000

1200

1400

1600

1800

# of WO Old Hrs # of New WO # of New WOw Old Hrs

New Hrs

Observed reduction in WO numbers and WO hours for reactive maintenance

Reactive

34% = 480

4hr per WO4hr per WO

ASSUMPTIONS:• Available service 1,736 hrs• £65K per headcount

0.5 headcount - £32.5k16% = 67

ALERT ACTIONSAVINGS

YR-1

AHU simultaneous heating and cooling

• Created program to keep AHU’s from heating & cooling at the same time $3k

Variable speed drive running fan at 90% capacity for more than 2 hours

• Replaced damaged duct work• Repositioned sensor

$10k

3 AHUs running outside scheduled hours

• Control panel software failure prevented AHUs from turning off at normally scheduled time

• Performed cold start on panel to clear problem$18k

Electrical current detected when AHU is supposed to be in off mode

• AHU had been manually set to run constantly• Reset to cycle on and off as dictated by the central

control system$19k

Rapid Savings: Small sample of results for the first month for Phase 1

IBM Internal Examples

Expected Savings: 10% - 15% Annual Saving For Equipment Covered By Analytics

ITEO Results: Operational Energy Savings

Unit Performance Operational Schedule

Equipment Not on Automatic Schedule 2% Savings

KW

H U

sag

e

Unit Performance Operational Baseline

KW

H U

sage

-35

-25

-15

-5

5

15

AH

U A

ir F

low

Tem

p.

Delt

a

Actual Normal Operation

Steam Leak Identified Dual Energy Savings OpportunityChilled Water & Steam 3.5% Savings

ITEO Typical Energy Savings Results

Energy Consumption Exceeds Spec 2.5% Savings

Why IBM for smarter buildings: one year payback

Factors that will influence site-specific results:

Implementation cost:– Level of existing instrumentation– Building Management System sophistication– Work order logistics system– Skilled staff availability

Benefits:– Maintenance productivity– Equipment efficiency levels– Depth of implementation– Type of space (office, data center, etc.)

What is your payback? Let IBM help you calculate

Managing Buildings Smarter: SummaryIndividual Building Performance

Deliver better building performance for all stakeholders Increased reliability

Automatic work order generation based on multiple point near real-time data collection

Legislative compliance Identify, track and sustain energy reduction

Reduced maintenance costs Reduce the number of work orders and work order hours

Continuous performance based monitoring Ensuring that equipment is always performing optimally

Effective asset management On-going work order history for each asset

Defer capital projects Efficacy of each asset clearly understood

Reduced energy use & costs Energy reduction opportunities through performance based monitoring

25

Hvad er næste step ?

Real estate & facilities functions now have an opportunity to drive strategic business value!

• Klar til forandringer, strategisk styring og optimering af Jeres bygnings masse ?• Ønsker I at nedbringe bygningsrelaterede omkostninger ? • Ønsker I at vide hvilke bygninger er de mest effektive og bedst udnyttede ? • Ønsker I at vide når en bygning underperformer ? • Tror I der er økonomisk gevinst i at transformere og optimere den måde I

håndterer jeres bygninger – men har svært ved at kvantificere det ?

Hvis ja, så kunne Jeres næste step være:

1) Udvælg et fokus område, et antal byninger eller en disciplin2) Byg en business case – Lad IBM hjælpe og sparre3) Køre projektet og implementer løsningen – og høst gevinsten

Thank You and Q&ASmarter Buildings: a smarter way to manage real estate and facilitiesFor more info visit:ibm.com/smarterbuildings

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Asset, Work Order MgmntAsset, Work Order MgmntAggregation,

WarehousingAggregation, Warehousing

Event Management

Event Management

Energy & Operational

Analytics

Energy & Operational

AnalyticsBusiness AnalyticsBusiness Analytics

Energy and Environment Sustainability

Energy and Environment Sustainability

Capital Project Management

Capital Project Management

Space Management and

Optimization

Space Management and

OptimizationPortfolio

ManagementPortfolio

Management

Building Management SystemsBuilding Management Systems

Fire HVACElevators SecurityLightingMeters

Dashboard w/ Reports Dashboard w/ Reports

GovernanceGovernance ReportingReporting StrategyStrategy ModellingModellingContent Management

Content Management

Smarter

Inter-connected

Instrumented

Intelligent

Dom

ain

- sp

ecifi

cE

nter

pris

e -

wid

e

Architectural view of smart building software

Water

Smarter buildings benefits

Real Estate

Facility

Sustainability

Projects

Operations

Identifies Hidden Costs Key Metrics Savings

• Inefficient and high-cost properties• Un-exercised option rights• Lease overpayments

• Reduce spend on space• Reduce space needs via

consolidation• Increase utilisation

• Eliminate project delays• Reduce schedule over-

runs• Reduce budget over-runs• Improve on-time delivery

• Reduce facility down-time

• Improve facility performance

• Improve service delivery• Increase client

satisfaction• Reduce facility energy use

• Reduce carbon emissions

• Identify environmental projects

• RE utilisation• Vacancy rate• Abnormal changes• Timing opportunities

• Total occupancy costs• Space per employee• Vacancy rate / density

• Project cycle time• Resource allocation• Project pipeline• Project variances

• Cost of operations• Customer satisfaction• Manpower imbalances• Warranty entitlements

• Total energy use / unit area

• Total emissions / unit area• Emissions (carbon)

intensity / unit area

Reduce Real Estate costs by 10%

Reduce Facility costs by 15%

Reduce Project costs by 5%

Reduce Maintenance costs by 8%

Reduce Energy costs by 20+%

Energy Operations

• Continuous performance monitoring

• Reduce maintenance costs• Reduce energy usage

• Real time equipment performance

• Maintenance cost / unit area• Energy use /unit area

Increase Maintenance efficiency by 50+%