Presented by Mark Whittaker, Business Development Manager, Integral UK Limited

“The Role of Facilities Management Innovation in Property Life Cycle and the Built Environment.”

Content

1. Introduction

2. What is innovation and why is it important?

3. What have been recent major innovations in Facilities Management?

4. What 5 benefits have these innovations brought?

5. How can the Malaysian FM industry benefit from innovation?

6. What does the future hold? #CIDBFM

Objectives of today’s presentation

To help provide you with a personal insight into:

▪ How do we define what is true innovation in facilities management?

▪ What key innovations have there been over the last five years?

▪ How can we all make innovation happen and what obstacles are there?

1. My Background in FM

Facilities Management in the UK – Key Facts

▪ £127 billion - forecast value of UK Facilities Management sector by 2013

▪ Facilities Management is worth 5% of the UK’s GDP

▪ 60% of the FM Market in the UK is “outsourced”

▪ Facilities Management is a relatively “new” sector in the UK economy, with a growing profile and importance .

What is at the core of Facilities Management?

"A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology."

People

Process

Technology

Place

2. What is Innovation in FM?

“Innovation in facilities management is the introduction of a new product or process, which delivers tangible and measureable benefits in terms of operational cost reductions, increased efficiency and optimising building usage and performance.

It is not merely process improvements.”

Can you do better? #CIBDFM

How do others define “innovation”?

Why is Innovation important?

Is Innovation being delivered in the UK?

▪ 60% of respondents agree innovation is being delivered in the facilities management industry.

▪ “True innovation often requires a financial input from the client. Most clients are cutting back on investments and research and development, which causes difficulty in delivering cost effective and innovative solutions”

3. Key Innovations in Facilities Management

(1). Building Information Modelling (BIM)

BIM

Owner

Architect

M&E Engineers

Facilities ManagersInterior

Designers

Civil Engineers

Construction

(1). Building Information Modelling (BIM)

BIM Benefits:

▪ Co-ordination & Collaboration

▪ Easier Maintenance of Building Lifecycle

▪ Greater connection between building designers & end users

▪ Greater customisation and flexibility

▪ Easier conflict detection & resolution

▪ Optimisation of cost

▪ Improved asset database & understanding

(2). Space Utilisation

▪ Greater analysis of how building assets are being used.

▪ Identification of cost savings as companies downsize operations

▪ More scientific measurements of space utilisation, particularly in building design

▪ A key driver in the design of new properties, particularly within the education sector

Space utilisation

Seat occupancy:

Room frequency

Space Efficiency

(3). Flexible Workspaces

▪ “Hot desking” more common

▪ More flexible shift patterns

▪ Greater home working

▪ Greater focus on enjoyable working environment & the impact on businesses performance

(3). Flexible Workplaces – Media City

3). Flexible Workplaces – 1 Angel Square

(4). Service Integration - IFM

▪ Greater bundling of FM services to achieve economies of scale

▪ Greater outsourcing opportunities

▪ Ability for organisations to concentrate on their core business activities

Hard FM

Soft FM

Total FM Solution

(5). Greater Collaboration/Partnership

▪ Private Finance Initiative (now Public Private Partnerships) with crucial element of building life cycle costings.

▪ Longer term contracts encourage investment

▪ Greater outsourcing

▪ Shared targets and goals & reward schemes

Advantages of Longer Term Contracts

▪ Partnership Approach & Relationship Building

▪ Joint Goal and Target setting

▪ Stability and reliability

▪ Supplier Investment

▪ Innovation in Service Delivery

▪ Reduced Procurement costs

▪ Flexibility in service delivery

(6). New/Enhanced Technology

▪ LED Lighting

▪ Voltage Optimisation

▪ More integrated Building Management Systems

▪ Smart Energy Meters

▪ Data Loggers

(7). Information/Knowledge Share

▪ Integrated CAFM Systems

▪ Web access

▪ Real Time Data

▪ Detailed Management Reporting

▪ Electronic Certification

▪ Social Media

(8). Sustainability

▪ The ‘Green Agenda’ will grow in importance in the future

▪ Helping customers achieve their Carbon Reduction Commitments

▪ Green Technology, such as biomass boilers, Combined Heat & Power (CHP) systems

▪ Focus on Ethical Trading and Waste Management and recycling

Most significant FM Innovations?

“I think the biggest impact has been the way the new technologies - GPS/Tablets/Social media etc. have been utilised by different organisations to eliminate wasted process and provide smarter service.” Martin Pickard, FM Guru Consulting

“The biggest change for me has been the development of the outsourced market. There are a number of suppliers in the industry who now really understand what FM is all about and are providing a service that matches the clients’ needs.” Julie Kortens, Head of FM,Channel 4

“The one area which does look as if it will impact is the advent of Building Information Management systems, albeit that these systems are very much in the infancy and current CAFM technology is not up to speed with it. Iain Murray, Principle Consulting

4. Five Key Benefits innovation can deliver in FM?

FM Innovation

Cost Savings

Improved Profitability

Streamlined processes

Greater building/ asset knowledge/

understanding

Market Differentiation

5. Facilities Management in Malaysia

“The lack of integration between control systems in buildings today is a main inhibitor to optimized facilities management.”

(Frost & Sullivan)

“The ultimate benefit of FM, i.e. value appreciation of the property, image and long term cost, has to be fully understood and appreciated by building owners for the industry to develop.”

(Mr Tung Chee Kuan, Jurutera)

5. How can Malaysian FM implement innovation?

Attracting & the professionally development of new professionals into the FM industry

Make “Innovation” part of an outsourcing selection process & ongoing strategy

Deliver an integrated service solution

Involve Facilities Managers during the building design and build process

Learn from the mistakes of others

Become FM Advocates

What can stifle innovation?

Price based procurement

Short term contracts

Lack of partnership/collaboration

Mistrust

Lack of internal support for FM at Senior/ Board Level

Being afraid to take risks

6. What does the future hold?▪ More flexible & better utilised workspaces

▪ Buildings designed & built with greater engagement with users and Facilities Managers

▪ Greater outsourcing in a bundled service provisions

▪ Greater building and asset knowledge

▪ Greater focus on larger, leaner FM providers delivering cost reduction strategies

▪ Professionally recognised “Collaborative Working” standards

▪ Longer term contracts

▪ Joint “Innovation Strategies”

Terima kasih kerana mendengar

▪ Email: mark.a.whittaker@integral.co.uk

@Whitbags http://whitbagsinfm.wordpress.com/