Navigant Research Blog

Intelligent Digital Systems Enabling New Strategic and Operational Paradigms

Tom Machinchick — March 20, 2017

Data in and of itself has little value. Dashboards and other business intelligence software are excellent at compiling and displaying collected data from a multitude of sources in a useable and understandable format. At times, however, these analytical tools do not go deep enough with intelligent calculations on that data to transform a business, increase efficiency, promote deep understanding and learning, and add the most value. In these instances, it can be a case of you don’t know what you don’t know—leaving important insights on the table.

A good yet simple example of this was outlined in an IBM white paper on facilities management. A commercial building designed to accommodate 1,800 people showed an occupancy rate (assigned space) of 66%. However, further study of the data using access card information showed that average daily occupancy was only 28%, leading to a better understanding of the actual space being used and paving the way for eliminating unnecessary costs associated with rather large and consistent underutilization of the facility.

Beware of Silos

In energy efficient buildings, care must be taken when assuming that smart components are always operating efficiently and in the best interests of whole building optimization. In a recent interview, an intelligent building component OEM stated that he has seen instances where the intelligent cooling and heating equipment each reported that they were operating at peak efficiency—but they were efficiently cooling and heating the building simultaneously. In this instance, the overlord building energy management system (BEMS) identified and resolved the issue. Intelligence systems operating in a silo can be as ineffective as data that has yet to be transformed into useful information.

Analyze the Analytics

Today, the general use case for data analytics is well understood and accepted. This acceptance arose in a similar fashion to a market dynamic that happened in the LED lighting industry. Ten years ago, questions arose when LEDs were specified for a construction or retrofit project. Today, questions arise if LEDs are not specified for a project. The same largely holds true now for BEMSs and other intelligent systems that generate analytics regarding building performance. With the variety of analytics engines available in the market—at all price points and complexity levels—it is assumed that some form of analytics will be included in any efficiency effort, no matter how deep or superficial the project is.

Open communication standards have enabled access to this disparate universe of intelligent and connected digital systems and the data they generate. The cross-pollination of information from these diverse data-driven systems opens a multitude of possibilities that reverberate across the entire organization with all key stakeholders, enabling new paradigms of strategy formulation and operational success.

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