Smart Building - IBM

Editor's Notes

• #2: Thank you for the opportunity today to share with you IBM's perspective on Smarter Buildings, and how managing your real estate and facilities can help you create a more energy, operationally and space efficient building. As you may know, IBM’s celebrates its Centennial in 2011. This gives us the opportunity to reflect on what it takes to be a great company and therefore a great brand at IBM. To do that, we remain committed to being a leader in the markets we serve….. and a company who operates on a higher standard than just what is required by law or regulation… A company that is in service to our clients and dedicated to making positive changes to our planet. Nowhere is this more important than in innovations that deal with environmental issues, such as energy efficiency in buildings. Our discussion today about Smarter Buildings will illustrate the real business value of doing more with less in your facilities and real estate in a way that will benefit the economic, operational and environmental strategies of your business. We will also discuss how IBM has delivered results in arguably the private sector’s most complex real estate and IT infrastructure in the world. We will discuss a new comprehensive suite of operational solutions that will allow you to manage the complete real estate lifecycle and help you develop strategies that prioritize your current and future investments.
• #6: So let’s get started on our discussion around smarter buildings. We truly feel that something profound is happening, the world is becoming more intelligent, more instrumented, and more connected. Instrumentation, interconnectivity and intelligence have a profound impact on the efficiency and sustainability of the systems that reside inside of customers’ businesses, their supply chain, and their ecosystem, as well as the macro-systems that support them. And buildings are no different. Facilities are becoming Instrumented at all levels- We now have the ability to measure, sense and see the exact condition of practically everything in near real-time. Building systems are more Interconnected than ever- People, buildings, campuses, cities, etc. are now interacting in entirely new and different ways. And Buildings are also more Intelligent All the information that is being collected can be used to make optimal decisions that are based on historical trends and predicted events. The result? We can now gather, synthesize and apply this information to achieve financial, environmental and operational benefits in buildings and become Smarter in the way we do things.
• #8: But before we begin, let me illustrate a few facts about buildings that you may not be aware of. The National Science and Technology Council in the US estimated in a 2008 report that commercial and residential buildings consume 1/3 of the world’s energy; in North America for example this translates to 72% of the electricity generation, 12% of the water use, and 60% of non-industrial waste. If this trend continues , by 2025, buildings worldwide will be the largest consumer of global energy, more than transportation and the industrial sectors combined. Furthermore, up to 50% of the electricity and water that is used by buildings is wasted… a staggering number. And data centers – which are among the largest consumers of energy within a building – are seeing that energy use literally double every five years. Considering Real estate is often the third largest expense on the income statement for most companies – typically right behind Intellectual property and manufacturing equipment – it’s easy to understand the impact this waste is having on the bottom line, and it is easy to see the benefits of Smarter Buildings. But how do you capture these opportunities for improvement and realize the rewards quickly? That is what we will talk about today. =========================================================================== SOURCE MATERIALS: Statement: Worldwide, buildings consume 42% of all electricity – up to 50% of which is wasted. Buildings consume 42% of all electricity — more than any other type of physical asset. They generate 15% of all green-house gas emissions. In the United States, the numbers are even greater: buildings guzzle 72% of all energy, and produce 38% of green-house gas emissions. Sources: http://www-935.ibm.com/services/uk/igs/pdf2/green_initiatives_property_mgmt.pdf http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergyHighPerformanceGreenBuildings.pdf. Statement: Buildings lose as much as 1/2 of the water that flows into them. Source: The US Green Buildings Council ( http://www.usgbc.org/ ) also estimates that buildings, on average, waste as much as 30-50% of the water used. Statement: Buildings are the number 1 contributor to global Co2 emissions. Source: Energy Information Administration (2006). Emissions of Green House Gases in the United States. In New York City, for example, buildings account for 64% of NYC’s Carbon Emissions. Source: http://www.nyc.gov/html/planyc2030/html/emissions/emissions_ourdata.shtml Statement: Energy costs alone represent about 30% of an office building’s total operating costs. Source: EPA, http://www.fypower.org/bpg/index.html?b=offices Statement: By 2025, buildings worldwide will become the top energy consumers. Federal R&D Agenda for Net-Zero Energy, High-Performance Green Buildings http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergyHighPerformanceGreenBuildings.pdf Statement: According to studies by EPA energy cost represent up to 30% of OPEX cost. 79% ( 8 out of 10 rounded ) according to a recent IBM survey prefer to work in buildings that offer as part of the regular routine at work, to options to conserve resources such as water and electricity. The Carbon Disclosure Project estimates that 59 jurisdictions around the world are either have or are actively pursuing carbon mandates that will effect buildings. Statement: Second largest expense item Shttp://www.cbre.com/NR/rdonlyres/7509891F-A845-4B94-B630-2022BB2F2CE5/734095/WHITEPAPER_ReducingOccupanyCosts1.pdf Statement: Data center energy use doubling every 5 years . As IDC estimates, in this decade, the average customer will have increased their server capacity by six times and their average storage capacity by 69 times. As a result, all of those devices are using more energy, and we’ve seen the energy use in data centers double over the last five years. And that projected increase is expected to continue.
• #9: Reducing cost remains a primary goal of most companies, simply stated, Smarter Buildings are a big idea given what we learned on the previous page. Our clients see it every day. By way of example: Smarter buildings can reduce energy consumption by as much as 40% or higher and the associated maintenance cost by 10-30%. The St. Regis Hotel in Shanghai integrated 12 subsystems to create one Smarter Building system, and improved the ratio of energy costs to revenue to below 5% for a savings of 40%. The number of EPA Energy Star buildings is growing by 30% each year. This growth is expected to continue as reported by McGraw-Hill. A recent study of LEED & Energy Star buildings conducted by the Burnham-Moores Center for Real Estate at San Diego University and The CoStar Group found significant advantages. This study of multi-tenant buildings shows a high occupancy rate of 91% and a sale price increase of 5% as compared to Non-rated buildings. And for a glimpse of what is possible through a smarter building approach, consider how Smarter Buildings help people think and be more productive. A variety of studies have demonstrated real productivity benefits in commercial and industrial settings. For example, according to the U.S. Green Building Council or USGBC , the people who invented the LEED certification process, office worker productivity increases between 2-18% on average in green buildings, and occupants are more willing than ever to do their share to make their buildings more environmentally responsible. ========================================================================================================== SOURCE MATERIALS By way of example: Smart buildings can reduce energy consumption by as much as 40% or higher and the associated maintenance cost by 10-30%. The St. Regis Hotel in Shanghai integrated 12 subsystems to create one intelligent building, with a ratio of energy costs to revenue below 5% (compared to 8% for other five-star hotels), a savings of 40%. As the only 5-star hotel in Shanghai awarded "Intelligent Building" status, St. Regis Hotel, Shangahi is exclusively equipped with building control communication protocols that help ensure the safety and comfort of all guests. http://www.starwoodhotels.com/stregis/property/overview/announcements.html?propertyID=1365 Other sources: US National Science & Technology Council, "Federal R&D Agenda for Net Zero Energy, High Performance Green Buildings." 30 September 2008, pg 7, Continental Automated Buildings Association, "Convergence of Green and Intelligent Buildings." 2008, pg 7, 33.) See CABA Bright Green Bldgs.pdf or US Federal Green Buildings Agenda 0930208.pdf … and save 30% in water usage. See Continental Automated Buildings Association, "A National Green Building Research Agenda." June 2008, pg 7, 138 or CABA Bright Green Bldgs.pdf at link below http://w3.ibm.com/connections/files/app?lang=en#/person/5ca21fc0-8f0a-1028-8107-db07163b51b2/file/d35fc97d-21dd-4a57-84c7-82019e26bd2b And for a glimpse of what is possible through a smarter building approach, consider the how Smarter Buildings help people think and be more productive. The number of EPA Energy Star buildings growing 30% each year. This growth is expected to continue as reported by McGraw-Hill. A recent study of LEED & Energy Star buildings conducted by the Burnham-Moores Center for Real Estate at San Diego University and The CoStar Group found significant advantages. This study of multitenant buildings shows an increase in rental & occupancy rates and sale price compared to Non-rated buildings. http://www.costar.com/josre/ A variety of studies have demonstrated productivity benefits in commercial and industrial settings. For example, according to the U.S. Green Building Council, office worker productivity increases between 2-18% on average in green buildings. http://w3.ibm.com/connections/files/app?lang=en#/person/5ca21fc0-8f0a-1028-8107-db07163b51b2/file/d35fc97d-21dd-4a57-84c7-82019e26bd2b See page 10. Statement: 65% of building occupants are willing to help redesign their workplace to make it more environmentally responsible. Source: IBM Smarter Buildings survey (2010) http://www-03.ibm.com/press/attachments/IBM_Smarter_Buildings_Survey_White_Paper.pdf
• #10: Coaching Points: Acknowledge the exceptional efforts the client has already made towards operating their building as efficiently as possible Acknowledge that they have worked with very limited budgets - Lowering the cost of assets is about extending the life of the building and making the right trade-offs in expenditures so that you can invest in improving the performance of the building Note that technology is changing in a way that will enable new solutions to these challenging issues Verify that these are the types of issues they are working to resolve and or gather additional requirements .
• #11: Let’s look at how buildings operate today. Smarter Building require no invention. Today we can already gather, synthesize and apply information to achieve financial, environmental and operational benefits in buildings. This chart outlines how a Smarter building should operate. On the left we see the embedded technologies and buildings processes that are capable of self-communicating status, problems and issues. The unprecedented proliferations of smart sensors and control systems over the last decade can detect and sense various conditions and emit alerts or responses of many disparate systems. These data feeds insights into the management and process of each of these systems. But how do you use this siloed information to provide operational and improved performance in the building? What are the ‘best practices’ and business rules you should use to optimize and make recommendations for the efficient operation of a building? Add to this impact and influence externalities like weather patterns, emergency operations, Smart Grid , government mandates etc. ( the things you see on the right side of the chart) and you can begin to see just how complex and interconnected a smarter buildings could be. But to take advantage of this technology and really tune-in to what all this information means is a comprehensive effort. There are major challenges. Most of the building systems on the left operate independently, through a mix of vendors, and have different protocols and transport mechanisms. These different systems technologies have also been advancing and maturing at different rates. Add to that, the sheer volume of data and real time alerts, especially when your focus is at a campus or portfolio level, you can see why the task of interconnecting this information can be daunting. Finally, understanding a building from a holistic point of view requires collaboration between facilities and IT organizations at new levels and creates the need for new transformational skills in your organization or business.
• #12: Before we go further, it is important we all agree on what the definition of a Smarter Building is. It is a building that is managed comprehensibly to provide optimal occupancy services in a Reliable, Cost Efficient, and sustainable manner. It is not smart if it is not reliable; it is not smart if it is not cost efficient. And it is not smart if it not sustainable and wastes resources. It is equipped with the right instruments and systems to enable Visibility, predictability, and control. It is integrated with the utility smart grid to take advantage of time-of-use electric rates, and to minimize consumption during peak hours; it is capable of producing at least part of its energy needs by recycling internal air for example. And most importantly, it has user interface tools to keep the building managers and even the occupants, aware of the real time parameters of the building and to empower them to impact those parameters.
• #17: Any type of building can become a smarter building through the interconnection of physical assets and information technology, optimizing operations and reliability, and reducing costs through better management of energy, operations and space: Smarter Commercial Building Provides integrated facilities operations information for owners/operators in order to optimize energy usage and services based on tenant’s needs. Smarter Campus Intelligent infrastructure platform and tools to manage plug-in electric vehicle stations, buildings, badging, central utility plant. Smarter Government Building Full service office hub using mobility and work scheduling to improve how public is served. External and internal use data ensures utilization is matched with overall demand. Smarter Hospital Sensor instrumentation used in real-time for asset location and automated workflows such as medical equipment maintenance. Smarter Hotel Integration of all the guest subsystems of hotel that welcome guest according to their preferences and adds to convenience during stay. Smarter Airport Provides efficient passenger and cargo services, climate control, wi-fi access; track maintenance tasks and help achieve security and safety compliance. Smarter Data Center Integrated facilities and IT insight to energy efficiency of datacenter and the correlation of IT and facilities information. Smarter Cell Tower Integration of active and passive management enables optimized operations to reduce truck rolls.
• #19: This slide illustrates how Maximo , TRIRIGA, and IBM Intelligent Building Management provide comprehensive solution for smarter buildings. Maximo has always held a strong position in facilities management with strong Operations Management capabilities, Datacenter Infrastructure Management and Service Management offerings. Tririga complements this offering by expanding Maximo’s Operations Management footprint, by adding a strong Space Management capability and through its TREES energy management offering, Capital Project Management and Real Estate Portfolio Management capabilities. In the Energy and Sustainability marketplace TREES allows organizations to track, analyze and verify utilities bills, to identify which sustainability projects are likely to yield the best return, and to REPORT on carbon output and buildings energy, water and waste management use. IBM Intelligent Building Management complements TREES REPORTING capabilities with Real Time Operational Energy use and building equipment monitoring. It comes with pre-packaged adapters to connect to leading Building Management systems and has workflow included to automate work order processes between energy management and facilities operations. Lastly, it has dashboards to provide organizations an up-to-date view of their current energy and building facilities operations performance.
• #20: Real estate executives think and manage buildings along 3 dimensions: energy, operations and space. They need to understand where their facilities consume excess energy, how much the energy costs, how the building has performed over time and which opportunities exist to increase the energy and resource efficiency; they also need to know the type of equipment in the facility, the age of the equipment and cost of its maintenance, the downtime of the equipment and all the associated procurement and services associated with how it is maintained so that they can identify operational and/or capital improvements. And on the space side, they need to understand the usage of the buildings, the occupancy level the facility, the occupancy cost, and the ability of the building space to serve the type of business conducted in the building. IBM can help you with in any of these three areas. Our end goal is simple. We want to help you take many separately managed systems and create one holistic adaptive system, capable of delivering reliable results. We can assist you in information gathering and determining key performance indicators ( KPI’s). In the end it is not just about how good your building is. It’s about how good your building information is. It’s about how to achieve a dynamic adaptive building environment to meet business objectives, changing demands and external factors in a continuous fashion. Whether your goals are as ambitious as net-zero and beyond or as practical as simple cost reduction, the same principles apply. Let’s move on and expand on each one of those areas.
• #27: Key Message: Additionally, we are announcing the New IBM Intelligent Operations Center for Smarter Cities as the integrated solution that delivers the most repeatable best practice patterns to city leaders. Speaking Points: While many of the best practices that we harvested are valuable to specific solution areas such as public safety or transportation, there is a core group of best practice patterns that we saw in almost every city solution City leaders regularly leveraged these core capabilities to leverage information, anticipate problems, and coordinate resources. These core capabilities can help with projects that are contained fully within a single type of city service (such as optimizing transportation flows) or more broadly, spanning multiple services (such as coordinating emergency management) And the Intelligent Operations Center for Smarter Cities was designed to integrate with information and applications already contained within the city as well as to extend its capabilities by incorporating third-party solutions such as those pictured on this chart