Navigant Research Blog

IoT: Building Awareness – Part 1

— December 12, 2017

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.

 

Building the Future through Digitization

— April 25, 2016

modern square and skyscrapersBy and large, commercial buildings are inefficient. Owners and operators manage hefty energy bills, suboptimal maintenance processes, and varying levels of dissatisfaction from occupants. Intelligent building solutions are an alternative to the status quo for building operations, and recent trends suggest we are facing a tipping point for technology adoption. Simplicity in execution and non-energy benefits will help customers take the plunge to begin transforming their facilities into intelligent buildings, and it’s all centered around the idea of digitization.

Navigant Research is bullish on the outlook for intelligent buildings. The rapid adoption of building energy management systems (BEMSs) has been a central indicator of the demand for data-driven solutions to the challenges of operating commercial buildings. In fact, Navigant Research estimates the revenue for these software analytics solutions will reach nearly $11 billion dollars by 2024, a 18% compound annual growth rate (CAGR) from 2015. This optimistic outlook on a cornerstone of the intelligent buildings market reflects the overarching assertion that digitization is transforming the buildings industry.

What Is a Digitized Building?

If software is a cornerstone of the intelligent building, it’s built on data. BEMSs have been helping building owners and managers improve operations for about a decade. As with any emerging technology area, the market continues to evolve. These software offerings are becoming more powerful as facilities become truly data-rich environments; this evolution is itself an effect of digitization.

The old adage of “garbage in, garbage out” may be a bit extreme, but in reality, digitization is an anecdote that helps intelligent building solutions deliver business improvements. An infrastructure of devices for sensing, controlling, and communicating equipment and facility use data is redefining the capabilities of intelligent building software. You’ve inevitably heard the buzz surrounding the Internet of Things (IoT); but in the intelligent buildings market, the IoT is not just buzz—it’s the construct for actionable information. An IoT intelligent building platform is defined by digital devices that enable software analytics to compute actionable information.

Why Will Digitization Make a Difference?

What this means is that these advanced sensors, controllers, and communications gateways acquire, analyze, and transmit data that in turn helps decision makers set priorities and rely with confidence on automated system improvement. Major technology providers are redefining their value through the lenses of digitization and IoT.

On April 1, Schneider Electric CEO Jean-Pascal Tricoire kicked off the Innovation Summit in Paris, where digitization was front and center. The technology giant is positioning to supply technologies that catalyze industry transition for a world that is “more electric, more digitized, more decarbonized, and more decentralized.” Schneider argues this pathway to the future is critical to meet the demands of a growing population against the pressures of climate change and resource limitations. The company also released a new IoT 2020 Business Report, arguing this new technology landscape represents “a new era of meaningful opportunities.”

Actionable insights, meaningful opportunities—these ideas are the crux of value in digitization. Customers can be bombarded by new technology and new data, but what delivers is better data, better processes, better automation, and better services.

Beyond Energy

Take a look at the capabilities of the world of cloud-based intelligent building software. As one example, Switch Automation and Intel are offering an IoT-enabled software solution that drives operational efficiency and continuous improvement in commercial building operations. IoT-enabled intelligent building solutions help customers aggregate data from inside a single building and across a portfolio to benchmark and monitor operations for energy efficiency, operational efficiency, and improved occupant satisfaction.

Register today for the upcoming The Road to the Intelligent Building webinar and join the conversation on how digitization and the IoT is redefining the facilities industry with Navigant Research, Intel, and Switch Automation on May 6 at 2:00 pm EDT.

 

Ecova’s Retroficiency Acquisition Spurs DSM Momentum

— October 30, 2015

Data analytics for energy efficiency and demand-side management (DSM) programs is a relatively new trend in the energy industry. Data analytics can be used in residential DSM programs to teach consumers how their home is using energy (by appliance level in some cases) and in commercial and industrial (C&I) DSM programs to help find opportunities for energy savings in large buildings. Data analytics can even be used in retail, restaurant chains, or in other small and medium businesses in order to make operations more efficient, as has been seen in the work done by PlotWatt.

Many of the companies that have been advocating data analytics for energy efficiency are either startups (working on a handful of small deployments) or pilots or large companies with the resources to dabble in energy management, such as Apple with HomeKit. Because of this, data analytics as a solution for DSM programs is still in the early stages of market adoption

Acquisition Makes for New Player

That is, until October 14, 2015 when Ecova announced its acquisition of Retroficiency. A building efficiency analytics startup founded 6 years ago, Retroficiency initially worked at streamlining onsite audits, which quickly evolved into its current Building Efficiency Intelligence software platform to enable utility-scale customer targeting and engagement. Ecova, a large provider of energy and sustainability management services, has a behind-the-scenes style platform that helps utilities manage DSM programs. In addition to developing joint solutions for utility customers, Ecova will be able to use Retroficiency’s data analytics capabilities to provide its C&I clients—which collectively have more than 700,000 sites in North America—with better information on where they can save energy, where to prioritize efficiency investments, and how to manage energy costs.

Ecova’s acquisition of Retroficiency sends an important message to other players in the energy industry that there is value in data analytics for energy efficiency, which means even more when considering that Ecova has the backing of a larger energy efficiency company. In 2014, Ecova itself was acquired by Cofely USA, a subsidiary of French utility company Engie (GDF Suez). The depth of experience, geographic reach, and expanse of resources that a company like Engie can bring to the data analytics market through subsidiaries like Ecova can mean real growth and development in a very similar way to what the home energy management market saw when Google acquired Nest.

Furthermore, Engie also happens to be an investor in Tendril, a Boulder, Colorado-based startup offering a cloud-based energy services management platform for helping energy providers better engage residential customers. With Ecova’s acquisition of Retroficiency, the company now has the resources to offer a combined residential and C&I platform to utilities that can counter Opower and Firstfuel’s new platform. The newly joined forces of Ecova and Retroficiency not only signal to others the value of data analytics, but also bring to the market a big name in energy and increased competition, which could give the data analytics market the momentum it needs to take off and become a vital part of energy efficiency.

 

Building on Big Data

— November 10, 2014

Advanced methods of interpreting large volumes of data have brought innovations in areas such as healthcare/pharmaceuticals, meteorology, marketing, e-commerce, government services, national security, and financial services.  Despite success in other areas, though, big data is only beginning to have an impact on building automation and energy efficiency.  In a 2013 blog, my colleague Bob Gohn discussed big data in the context of buildings.  In this blog, I’ll take a look at some of the solutions emerging in this area and how the buildings industry will be affected.

Continual Correction

Currently, the most common use for big data in buildings is fault detection and predictive maintenance.  Advances in sensor technology have enabled unprecedented views into the status and functionality of building systems such as heating, ventilation, and air conditioning (HVAC).  Sensors are capable of regularly measuring every aspect of the system’s performance by analyzing the data to identify equipment that needs to be replaced or may be about to fail.  Bringing technicians onsite to service equipment can be a major expense for building owners.  This type of data analytics allows a diagnosis to be made before the technician arrives, while also providing information on replacement parts and other relevant items. Data analytics solutions can also build a list of the known problems in a building and derive each piece of equipment’s usage and cost, enabling a quantitative return on investment (ROI)-based assessment of which upgrade or investment should be implemented first.

As building automation and data analytics continue to advance, new applications within the buildings industry are emerging.  Advanced building energy management systems (BEMSs) harness large quantities of data to provide a visualization of the overall energy consumption of a building or portfolio of buildings.  These systems also have the ability to leverage historical data to provide recommendations for how to best reduce consumption.  Next-generation BEMSs have the capability to adjust building system parameters automatically to maximize occupant comfort and energy efficiency.  One example of this type of advanced system is SHIFT Energy’s Intelligent Live Recommissioning (ILR) solution, which provides ongoing re-adjustments.  Another cutting-edge solution is offered by Ecorithm, whose program also includes richly detailed graphics to visualize processed data across a building’s floor plan, identifying areas of waste and recommending corrections.

Designed with Data

Big data is also playing an increasingly important role in the design of resource efficient buildings.  Building information modeling (BIM) programs allow architects to analyze key performance metrics such as natural ventilation, daylighting, solar heat gain, overall energy usage, and even how people will likely interact with spaces.  These programs utilize vast amounts of data from existing buildings to visualize how a conceptual building may perform.  Such analysis can speed the construction of new buildings by leveraging the data-rich plans from previous projects, modified to fit the specific characteristics of the new site.  This also allows designers to cut costs by eliminating the duplication of work from past projects.  Reducing the time and cost required to construct new buildings is an essential factor in addressing rapidly growing urban populations that lack sustainable buildings and infrastructure.

Despite these achievements, the buildings industry is not yet exploiting available data to the extent that other industries are.  Looking forward, advances in building design, construction, and management can leverage big data and advanced analytics to reduce costs and improve efficiency.  As buildings and cities become increasingly automated and digitalized, data analytics will play a growing role in energy efficient buildings.

 

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