idc ei smart buildings maturity model webcast 4 3 12 slides

IDC Energy Insights Smart Buildings Maturity Model Web Conference – April 3, 2012 Casey Talon

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Today’s Speaker

Casey Talon Research Analyst [email protected] 303-385-0327


Agenda

1. Introduction: Defining the Smart Building & Research Context

2. Maturity Model Overview

3. Value Proposition for End Users

4. Value Proposition for Vendors

5. Smart Building Research Opportunity

6. Upcoming Smart Buildings Research

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Buildings Management: Industry Transformation

The nature of building management is being transformed by the demand for new ways to achieve a range of business goals, including reducing energy costs and attaining sustainability objectives. New, highly integrated building automation and information technology (IT) solutions are becoming more widely available to meet the needs of building management looking to evolve their facilities to smart buildings.

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Introduction: Defining the Smart Building

A smart building is defined as a facility that utilizes advanced automation and integration to measure, monitor, control, and optimize building operations and maintenance.

Data centers, the residential sector, and manufacturing

lines/industrial processes are excluded from the scope of this smart buildings research initiative.

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Introduction: Research Context Facility Transformation Development of the Smart Building

Energy Auditing and Facility Baselining

Upgrade Existing Infrastructure for

Energy Management

New Automation & Controls for Energy

Efficiency

Adaptive Controls Responding to External Data

Streams

Integration Across Building Assets &

Enterprise Applications

0

1

2

3

4 OPTIMIZATION

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Defining Technology Maturity

Level 4 Optimization

Level 3 Adaptive Action Level 2

Preliminary Action

Level 1 Stakeholder Alignment

Level 0 Baseline

Key Concepts: – End goal is real time,

adaptive and strategic energy management

– Comprehensive control and automation of building equipment and assets

– Iterative investments provide cumulative improvements in efficiency for cost and energy savings

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Technology Inclusions

Advanced Automation & Integration

HVAC Lighting Plug Loads

Fire & Security

Distributed Energy

Resources

Analytics & Data

Management

* A facility will be fully transformed into a Smart Building when advanced automation and controls pro-actively manage all energy-consuming building assets, thereby optimizing operations

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Smart Buildings: Market Maturity Model: Technology Ecosystem



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline

HVAC


Level 2 Preliminary

Actions

Operations Personnel - Manual Scheduling

Basic Automation (Fixed Schedule)

Advanced Automation (Chiller Sequencing, VSDs & VAV

Automation)

Real-time adaptation to meet goals of energy management platform, fully integrated with other bldg systems

Retro-Commissioning



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline


Level 2 Preliminary

Actions

Lighting

Occupant - Manual Controls

Occupancy Sensors or Timers

Advanced Control (Dimmable Ballasts, Managed LED Retrofit)

Real-time adaptation to meet goals of energy management platform, fully integrated with other bldg systems

Centralized Control (Building Automation Systems)



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline


Level 2 Preliminary

Actions

Plug Loads

No Management

Manual EE Measures Instituted by Internal Teams

Occupancy Sensor Signaled Control

Integrated Plug Load Control with BMS and other building systems

Localized Power Management



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline


Level 2 Preliminary

Actions

Fire & Security

Fixed Settings based on Local Regulations

Video Monitoring System

Zonal response settings based on occupancy

Advanced Fire & Security Devices Integrated with BMS

Occupancy Sensors, Automated Access Controls



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline


Level 2 Preliminary

Actions

Distributed Energy

Resources

None

Traditional Back-Up Systems, Diesel Gensets

Integrated DER Responsive to External Data

Integration on Common Network, Advanced Analytics for

Optimization

Renewable Energy & Storage

Technologies



Level 3 Adaptive

Actions

Level 1 Stakeholder

Alignment

Level 0 Baseline


Level 2 Preliminary

Actions

Analytics & Data Mgt

None

Visualization – Dashboards (estimated/ manual data entry)

Energy analytics utilizing data from BMS, plus external data, identifying

EE opportunities

Integration with BMS, enterprise asset & facility analytics, and DER, Automated Controls for Energy Mgt

Reporting templates, customizable dashboards


End User Value Proposition: MUSH Market Public Sector; i.e. , municipalities, universities, schools and hospitals

Unique Stakeholder Pressures

Mandates: Better Buildings Initiative, City Energy Benchmarking Regulations, GHG commitments City Green Building Seattle, PlanNYC,

Existing Commercial Buildings Energy Performance Ordinance San Francisco, Energy Performance Benchmarking of Privately-Owned Buildings D.C.

Positioned to adopt technologies early on due to longer payback threshold than private entities

“The Better Buildings Program recognizes the critical role that cities play in fostering energy efficiency and I hope that it will inspire and empower local governments to create innovative programs to save energy and money.” – Mayor Bloomberg

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End User Value Proposition: Retail

Pressure to Differentiate in economic recovery EnergyStar Certification

Better Buildings Initiative

Opportunities to manage and reduce operational costs Lighting Control Systems

Analytics & Data Management

Leadership in Corporate Social Responsibility

“Reducing our energy footprint and creating a more thoughtful and sustainable operation are important priorities, and we will continue to test innovative ways to build our stores with future generations in mind. These projects are good for the environment, improve our operating efficiency and create jobs — ultimately benefiting the communities we serve.” – Supervalu

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End User Value Proposition: Commercial Real Estate

Differentiate to acquire and retain tenants

Green Leases growing tool for financing energy efficiency/Smart Buildings investments

New opportunities for revenue and budget management Reducing energy use 30% is

equivalent to increasing NOI and building asset value by 5% (EnergyStar)

“Improving efficiency is an economic driver. Companies that spend less on energy have more to spend on other things – like expansion and job creation. And the task of improving U.S. buildings involves hundreds of thousands of good-paying jobs that can only be done on-site ‒ not sent offshore.” – Jones Lang LaSalle

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End User Value Proposition: Manufacturing/Industrial

Meet green or GHG reduction supply-chain requirements: – Manufacturers are having to share their

carbon footprint and energy intensity with their customers – especially if they are supplying retailers, and in other segments as well

– Manufacturers can also use Smart Building solutions to educate their own suppliers

Improve operational efficiency to drive cost and energy savings Lighting Controls Analytics & Data Management

“Education and innovation are critical to America’s growth. We’re pleased to equip Americans with the technical skills to help them get back to work and invest in innovation that will make our manufacturing processes and facilities greener.” – Alcoa

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Vendor Value Proposition: Information Technology

Value Proposition • Data Management Core

Competencies • Analytics Legacy

Competitive Landscape • Analytics offerings from BAS

majors and niche energy management providers • Existing relationships • Cost containment

“Optimizing building performance and leveraging sensor data from a holistic point of view requires collaboration between facilities and IT operations.” – IBM

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Vendor Value Proposition: Building Automation

Value Proposition • Control and Infrastructure

Expertise • Existing Relationships

Competitive Landscape • Analytics & Data Management

Demands • Cost-competitive solutions

capable of integrating with existing BAS

“The synergy created by sharing infrastructure and data delivers flexibility, reliability, greater visibility and enhanced productivity – leading to more opportunities to create comfortable, safe and sustainable environments.” – Johnson Controls

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Vendor Value Proposition: Energy Management Providers

Value Proposition • Cost Effective Supplemental

Automation and Control Solutions • Functionality free from

infrastructure requirements of complete BAS/BMS

Competitive Landscape • Compete with IT & BAS Majors • Acquisition-heavy environment • Challenge of portfolio offerings

for comprehensive optimization

“Today’s organizations face a major disruption in the business environment, driven by escalating demand for energy and resources, volatile and rising energy and resource costs, and the proliferation of environmental regulations globally... In order to thrive and grow, organizations will have to adapt their business strategies and develop new competencies in their energy and resource usage.” – C3

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Smart Buildings Research Opportunity: Multi-Client Study

IDC Energy Insights is proposing an analysis and forecast of worldwide investment in Smart Building automation, optimization and integration technologies. This study will segment spending across six technology segments (HVAC, Lighting, Plug Load, Fire and Security, Distributed Energy Resources, and Analytics and Data Management), seven vertical industries (healthcare, government, retail, higher education, K-12, commercial real estate and manufacturing) and five regional markets (North America, Western Europe, CEMA, Latin America). The result will be a calculation of current market size and forecasted growth in spending for Smart Building technologies in the commercial, industrial and government building sectors.

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Methodology End-user surveys;

Surveys of, and interviews with, key Smart Building technology vendors; Industry associations; IDC Energy Insights studies; Historical market data (including the IDC Energy Insights Smart Buildings

Global Market Forecast 2010-2015); Public financial records (e.g., quarterly announcements and annual reports); Public data provided by the U.S. government including industry size, health,

and growth rate; and, Published news articles and press releases.

Region Close-ended Open-ended North America 50-60 3-4 Western Europe 50-60 3-4 CEMA 25-30 3-4 APAC 25-30 3-4 LATAM 15 2-3

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Business Strategy: Smart Building Maturity Model report for Vendors and report for End Users (February 2012)

IDC MarketScape: Smart Building Lighting Control Solutions (March 2012)

Business Strategy: Smart Buildings and the Smart Grid (Q2)

Technology Selection: LEDs for Smart Buildings (Q3)

Technology Selection: Smart Building Solutions for SMBs (Q4)

Central Research Theme: Exploration of how Smart Building solutions contribute to increasingly comprehensive integration of energy management solutions utilizing analytics & data management functionality

Upcoming Research: 2012 Smart Buildings Research Agenda

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Features Include: – Analyst blogs and videos – Discussion forums – Resource library/complimentary research – Networking – invite, find and interact with analysts and other members – Events calendar

Sign-up for our free monthly newsletter: www.idc-ei.com/newsletter

Questions & Answers

Casey Talon Research Analyst [email protected] 303-385-0327

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APPENDIX


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More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 50 countries

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IDC Overview

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IDC’s Global Network of Country Offices

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Communications markets

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IDC’s Family of Industry Lines of Business: Insights: Industry-Specific Advisory Services

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Each Insights focuses on technology-enabled business innovation within a single industry

Insights leverages 40+ years of IDC research methodologies and processes

An agile start up with a global footprint

IDC Energy Insights covers: Utilities and Oil & Gas, including clean energy, smart grid, and intelligent oil and gas

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help today’s time-constrained IT executives make more effective technology decisions. The goal of the program is to offer accurate and timely research that will assist IT executives in mitigating technology risks, maximizing the effectiveness of IT investments, identifying and capitalizing on new opportunities, and bringing forth solutions that are aligned with the organization’s business objectives.

Our flagship offering in the series, the Executive Technology Advantage Program, includes a strategic partnership with IDG’s CIO Executive Council, a global peer advisory community of 750 global enterprises and more than 1,400 IT leaders. Through this new partnership, IT executives will have exclusive access to IDC’s team of 1,000+ global analysts, IDC Insights industry specific research, and the CIO Executive Council’s member CIOs, offering a global resource to help accelerate the decision-making process. The new offering brings together two of the most powerful brands in the IT industry.

Our IT Executive Programs offer a range of services that align with the needs of IT executives - from very personalized guidance with a CIO advisor to specific research to assist with critical decision making.

For complete details visit www.idc.com/iep

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idc ei smart buildings maturity model webcast 4 3 12 slides

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