Every Monday afternoon, MondayLive!, a dedicated group gathers to explore the future of smart buildings and how their increasing intelligence will shape the industry. A recent session focused on buildings as assets, with guests Dana Kennish “Deke” Smith, FAIA Emeritus, FbSI, and Ana Thiemer.
The panel delves into the evolving concept of Total Cost of Ownership (TCO) in the building industry. They highlight how TCO, particularly when viewed through a “systems of systems” lens, is vital for strategic asset management and long-term value creation.
Key Takeaways
- TCO as a Scoreboard: TCO is not just a cost; it’s a holistic metric that, with the help of modern data integration, can reveal the complete picture of an asset’s health and value.
- Data is King: Capturing, integrating, and analyzing data from various building systems is paramount to realizing TCO’s full potential.
- Shift to Lifecycle Mindset: The industry’s traditional focus on first costs is shifting towards a lifecycle perspective, emphasizing the long-term impact of design and construction decisions.
- Scalability Matters: TCO should be adaptable, allowing for analysis at both macro (entire portfolio) and micro (individual asset) levels.
- Bridging the Gap: Effective communication and collaboration between facility managers, C-suite executives, and other stakeholders are critical to successfully implementing TCO.
“TCO is really well done in the IT industry… We need somebody like that, somebody like Gartner, that’s going to go in and capture some of this information.”
Deke Smith
This underscores the need for a standardized approach and centralized data repository for TCO in the building industry, similar to what Gartner provides for the IT sector.
The conversation surrounding TCO is gaining traction as the industry recognizes the need for a more strategic and data-driven approach to asset management. The concept of buildings as assets is becoming deeply intertwined with TCO, driving the industry towards greater efficiency, sustainability, and value creation. As technologies evolve and data becomes more accessible, the future of TCO looks bright.
here is the full session
