Cleantech Market Intelligence
IoT: Building Awareness – Part 1
Marcus Aurelius once said, “That which is not good for the beehive is not good for the bees.” Conversely, what is good for the bee is good for the hive—a metaphor not lost on Internet of Things (IoT) and smart building integration. A paradigm surrounding the building automation space is developing as businesses begin to focus more on occupant experience. Smart building technologies are widening the building investment landscape to include tenant engagement and satisfaction. Value-generating technologies, like IoT-enabled devices, make it easier to manage energy and businesses. Building owners are able to leverage existing communication platforms, capitalize on energy efficiency, and promote healthier lives with healthier buildings.
Better Building, Better Business
Building automation systems with IoT-enabled sensors can not only increase energy efficiency, but also improve worker efficiency, leading to more productive businesses. Research finds that comfortable work environments enhance business productivity by improving the health and satisfaction of its workers. Advanced sensors, like those in Amsterdam’s building superstar The Edge, have given building managers better information on how building space is being utilized by monitoring occupant behavior. This is important because the more we know about occupant behavior, the more we are capable of creating environments that will optimize worker performance. Studies on the effect of building systems in schools also found that indoor air quality and thermal comfort have a direct effect on concentration. Classrooms that are thermally comfortable with lower levels of pollutants increase student learning, resulting in higher levels of student performance.
Show Me the Money
The advantage of investing in smart building technology is twofold, as these systems are not only more sustainable and energy efficient, but potentially more lucrative as well. Businesses operating within these smart systems are better positioned to make financial gains, as employees are more productive. Reports like JLL’s 3-30-300 rule suggest that prioritizing tenant satisfaction and well-being creates larger payoffs for building owners and investors—more so than savings on monthly utility bills would alone. The study finds that “a 2% energy efficiency improvement would result in savings of $.06 per square foot, but a 2% improvement in productivity would result in $6 per square foot through increased employee performance.”
Work Smarter, Not Harder
The argument stands that smarter buildings make better workers. Smart buildings are attractive from a business perspective, as these technologies enable employees to be more productive and less distracted by time-consuming administrative tasks, such as booking conference rooms or scheduling in-house meetings. The more comfortable the worker, the better work they will produce. This, in effect, raises the value of the business and contributes to the overall value of the building. In terms of ROI on smart buildings, focusing on occupancy satisfaction takes a bottom-up approach that supports greater integration and interoperability, improving bottom lines across the board.
Connectivity Is Key
The paradigm surrounding building management systems is shifting as more attention is being paid to occupancy experience. We know that effective operations and maintenance through IoT-enabled devices improve building performance. Why not apply that same logic to worker performance? The significant effect data analytics continue to have on the uptime of building systems could equally improve the livelihoods of the people operating within those structures. Facilitating better working environments optimizes worker efficiency, adding value to businesses and buildings. What is good for the worker bee is good for the hive (and hive investors), as smart technologies continue to add value to both residents and buildings alike.