May 2015 |
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"COO/CIO/CFO, how competitive are your buildings?" The day has come that you can afford to run your buildings in a data-driven, proactive way with Key Performance Indicators (KPI's) in a dashboard format. |
Chris Saltz President & Managing Principal FIX Consulting Originally posted on LinkedIn |
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You've
been avoiding the "bleeding edge" of smart building technology for 20
years, and rightly so. The building automation and energy
management systems (BAS & EMS) were expensive, cumbersome, and did
not provide the type of information that was actionable at the
C-level. But with all of the "push button, cloud technology", the
day has come that you can afford to run your buildings in a
data-driven, proactive way with Key Performance Indicators (KPI's) in a
dashboard format. Some of your competitors already are.
They will use this 10% to 30% improvement in OpEx to reinvest in
competitive strategies. A Forbes article suggests the GDP growth
associated with the "Internet of Things" will be "the largest in the
history of humans" (article: http://sni.ps/GBP).
The price of BAS technology has come down drastically. You can
completely automate your home for a few thousand dollars (Smart Things
pricing: http://sni.ps/GBM; Wink pricing: http://sni.ps/GBk).
So how do you get your organization there? Start by assigning a
team (internal or external, depending on your availability of qualified
resources), with the mission of providing you with a report on the
current status of the technology in your buildings along with a road
map for the future. The focus of the report is on "useful data".
Useful data has a few important components. First, the data must
be "open". Be careful, as there is a wealth of misleading terms
in the BAS industry. For example, "BACnet" and "Modbus" are terms
that describe data languages (protocols). But are the vendors
providing these BAS systems allowing the local marketplace to purchase
their proprietary data tools to get at this data easily? And are
there a wealth of firms, other than the BAS vendor, that currently have
those tools and are trained in using them? Fact is, there are
very few that can claim to have all three today (open protocol, open
tools, and an established global support network of multiple firms in
each and every market). Tridium, a Honeywell company, is one (www.tridium.com).
So if you are not at this level of data access and normalization in
your buildings, there will be some expense to get there.
Secondly, this paradigm shift (from proprietary BAS platforms to an
open ecosystem of the "Internet of Things", or IoT, in buildings) is
more dramatic than the shift three decades ago from mainframes to
client/server for data and voice applications. And if you recall,
the new companies that emerged in the personal computer market did not
exist before that shift but dominate your environment now. The
same is already happening in the shift to IoT in facility-related
technology. Knowing which firms will be relevant many years from
now may be one of your biggest challenges. But you can find
opinions on this subject that are not mine (here is one by Business
Insider: http://sni.ps/GBf).
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Lastly, as every
facility control and monitoring device will now fully and completely
move into your IT environment, you will need unprecedented
collaboration between your IT and Facility departments. There are
already twice as many facility nodes as voice/data nodes on your
network...this will grow exponentially. But assigning a few IP
addresses and helping facilities with IT security and other important
network support will be complementary.
The well known smart building research firm, Memoori, estimates that
the global market for IoT in Buildings (BIoT) will grow from $23B in
2014 to $85B in 2020 (http://sni.ps/GBS). You definitely should ask yourself "what are all those other COO/CIO/CFO's investing in, and how will it change my competitive landscape"?
About the Author:
Chris Saltz has 30 years of experience in technology and an engineering
degree from Auburn University. This includes operating and
maintaining complex systems in US Navy nuclear submarines to managing
field offices for Fortune 500 technology companies such as Johnson
Controls. He is currently the Managing Partner of Fix Consulting LLC, a
Los Angeles based facility technology consulting firm (www.fixconsulting.com)
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