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5/29/15 1 Lawrence A. Melton CEO/President The Building People Smart Buildings: Lower Operating Costs Defining Smart Buildings Smart buildings are structures that provide specific building services that: Provide comfort, security and quality space for occupants to be produc<ve Reduce overall environmental impact and improve sustainability Use technology to reduce overall cost of opera8ng and maintaining the building Proprietary & ConfidenCal © 2015 The Building People, LLC
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Page 1: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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1  

Lawrence  A.  Melton  CEO/President  

The  Building  People  

Smart Buildings: Lower Operating Costs

Defining  Smart  Buildings  

Smart  buildings  are  structures  that    provide  specific  building  services  that:      •    Provide  comfort,  security  and    

 quality  space  for  occupants  to  be      produc<ve  

 •   Reduce  overall  environmental  impact      and  improve  sustainability    •   Use  technology  to  reduce  overall  cost              of  opera8ng  and  maintaining  the  building    

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 2: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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IT  in  our  building  systems  has  already  “happened”  to  us!  

•  Nearly every control system in your existing buildings use networks (yuck!)

•  Increased complexity

•  CIO’s now require security procedures

•  Technology spending is on the rise!

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Decades  in  the  making….  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 3: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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$7   $9   $11  $14  

$17  

2015   2016   2017   2018   2019  

Es<mated  Smart  Building  Technology  Investments  

BILLIONS  ($USD

)  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Smart  Buildings  

Over  $10  B

illion  in  gro

wth  over  ne

xt  4  years!  

 $4.00    

 $4.20    

 $4.40    

 $4.60    

 $4.80    

 $5.00    

 $5.20    

 $5.40    

 $5.60    

 $5.80    

 $6.00    

Ope

ra<o

ns  $/SF  

 10,000    

 11,000    

 12,000    

 13,000    

 14,000    

 15,000    

 16,000    

 17,000    

 18,000    

1999  

2000  

2001  

2002  

2003  

2004  

2005  

2006  

2007  

2008  

2009  

2010  

2011  

2012  

2013  

Energy  Con

sump<

on  (m

btus)  

 GAP

   

“Energy  efficiency….but  where’s  the  savings?”  

Energy  Efficiency  vs.  OperaCons  Costs  

Page 4: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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Efficiency  with  Smart  Buildings  

$27,000   $45,000   $90,000  $180,000  

$86,000   $129,000  $215,000  

$430,000  

$860,000  

200,000   300,000   500,000   1,000,000   2,000,000  

Smart  Building  Annual  Savings  Labor  Savings   Energy  Savings  

Gross  Square  Footage  of  Building  

($USD

)  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

($.09  Energy  Efficiency)  +  ($0.43  Labor  Efficiency)    

=  $0.52  Per  GSF  in  Savings  

*Human  Factor  •  Operator  Error  •  Operator  Unawareness  •  Operator  Interference  •  Operator  Indifference  

Sogware  

Hardware  

Unspecified  

Hardware  &  Sogware  

(Technology)    

Operational “unawareness”

(Buildings)  

Behavior  (People)

Costs:  Targeted  OpportuniCes  

*  Iowa  Energy  Center  Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 5: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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Evolved  POLICY  to  increase    performance  

Real-­‐Cme  VISIBILITY  into    performance  Granular  CONTROL  over    consuming  systems  

•  Enhanced  customer  experience,  •  Increased  opera8onal  effec8veness  •  Energy  efficiency  &  sustainability  

+

=

FoundaConal  ObjecCves  for  Smart  Buildings:    

Visibility  

Control  

Policy  

+

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Open Non-­‐proprietary  communicaCon  between  building  controls  that  give  operators  greater  flexibility  to  manage  systems  and  reduce  service  costs  

Converged Common  sense  eliminaCon  of  overlapping  controls  infrastructure  such  as  conduit,  closets,  and  cabling  and  networking  

Normalized Different  controls  manufacturers,  or  even  disparate  systems,  can  share  data,  allowing  for  more  flexibility  and  management  control  NORMALIZED

Smart  Building  FoundaConal  Principles  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 6: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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Smart  Buildings  Guide  

WHY  SMART  BUILDINGS?  Buildings  systems  technology  changed  at  the  manufacture  level  in  a  material  way,  which  over  8me  has  had  a  ripple  effect  on  the  industry.    Gaps:    Genera<onal  skill  gaps,  proprietary  systems  and  disparate  efforts  inside  the  organiza<on    Risks:  Risk  of  cyber  security  and  rising  cost  structure  for  capital  expenses  and  opera<ng  expenses    OpportuniCes:    Missing  technology  opportuni<es  that  existed  in  the  marketplace  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Smart  Buildings  Guide  

HOW  DO  YOU  ADDRESS  THIS?  Address  the  en8re  organiza8on,  enterprise  architecture  and  value  chain    Technology:  Embrace  IT  and  cyber  security,  develop  big  data  architecture  

 Buildings:  Create  new  building  standards  and  engage  the  marketplace  

 People:    Modernize  training,  industry  experts  for  regional  support,  internal  alignment,  new  naConal  vendor  requirements  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 7: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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Smart  Buildings  Guide  

WHAT  IS  THE  IMPACT?  Complete  organiza8onal  design  for  Smarter  Buildings    Alignment:  Bringing  the  key  stakeholders  together  (FaciliCes,  IT,  Design  &  ConstrucCon)    Standards:  Embrace  naConal  system  standards  to  improve  program  management  delivery  

 Interoperability:    Ensuring  exisCng  legacy  systems  are  compaCble  to  architecture  by  design,  maximizing  the  use  of  their  data    

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

TECHNOLOGY  SERVICES  

REAL  ESTATE  SERVICES  

ENERGY  &  SUSTAINABILITY  

SERVICES  

PROJECT  MANAGEMENT  

SERVICES  

FACILITIES  MANAGEMENT  

SERVICES  

FINANCIAL  MANAGEMENT  

SERVICES  

Old  Way  Organiza8onal  Dis-­‐alignment  

Data  

Data  

Data  

Data  

Data  

Data  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 8: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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Old  Way  Disparate  System  

Management  /  AdministraCve  

Custodial  

Engineers  &  Operators  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Consolidated  Data/Analy<cs  Business  Process  Automa<on  

Technology  Services  

Real  Estate  Services  

Financial  Management  

FaciliCes  Management    

Energy  &  Sustainability    

Project  Management  

People  are  the  most  important  part  of  

preparing  for  smart,  connected  buildings.  

The  objec<ve  is  to  enable  be=er  decisions,  propagate  new  norms,  

and  drive  educa<on  throughout  your  

organiza<on.      

New  Way  Organiza8onal  Alignment  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Page 9: W4.04 Smart Buildings MELTON · 2015. 10. 30. · 5/29/15 2 IT(inour(building(systemshasalready “happened”tous! • Nearly every control system in your existing buildings use

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New  Way  Open  &  Converged  Systems  

Management  /  AdministraCon  

Custodial  Engineers  /  Operators  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

Summary    •  Smart  Buildings  won’t  put  won’t  put  anyone  

out  of  a  job…  Not  knowing  smart  buildings  will!    •   Labor  cost  savings  provide  the  greatest  

opportunity  to  achieve  efficiency  in  your  smart  building!  

 •   Smart  Buildings  is  happening  to  you  now,  

wai8ng  is  not  an  op8on!  

•  Connec8ng  you  building,  is  not  crea8ng  a  smart  buildings  strategy…  it  take  all  3  pillars:    Technology,  Buildings,  and  People!  

Proprietary  &  ConfidenCal  ©  2015    The  Building  People,  LLC  

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Ques<ons  

Lawrence  Melton  CEO/President  

[email protected]  703.669.2222  


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