The Trillion Dollar Opportunities in the 6th wave of innovation Market Intelligence & Market Size Certified Green Buildings Customer Segments Elevator Pitch Benefits of Infrastructure Asset Management (IAM) Our Value Propositions How are we different? Disruptive Innovation Technology Entrepreneurship Key Points Data Collection Survey Results Conclusion
Trillion Dollar Opportunities in the 6th Wave of InnovationSource: http://sixthwave.orgThere are trillion dollar opportunities in the 6th Wave of Innovation.In the Opportunity Analysis Project (OAP), our team analysed these trillion dollaropportunities.
Market Intelligence• We have conducted a few face-to-face interviews, surveys and learnt a few things from the feedback.• However, we wanted to have a much deeper understanding of the market opportunities as this is not a simple B2C market but an enormous B2B market.• Key sources of Market Intelligence:
Market SizeSources: U.S. Green Building Council (USGBC)Indian Green Building Council (IGBC)KPMG Target Market: There is a huge market for Certified Green Buildings in High Growth Markets like China, India and Brazil. Moreover, US is a big market.
What is a green building?Benefits of green buildings: 30-50 % water saving, 20-30 % energy saving, Conservesnatural scarce resources and generates less waste, Enhanced air quality and Excellentday-lighting and Provides healthier space for occupants.
Certified Green Buildings• We will be complying to International Green Construction Code (IGCC) and the rating system that is used in the respective country where the project is being executed.• Green building rating systems in Germany, India, Japan, UK and US: International Green Construction Code (IGCC) was developed in collaboration with:
Customer Segments• The various Built-to-Order (BTO) Business-to-Business (B2B) customer segments we are focused on are:• Government Funded Multifamily Housing Programs & Private Sector Projects: – Low-Cost Housing (Up to 300 Sq. ft.) – Affordable Housing (300 to 1200 Sq. ft.) – High Income Apartment Buildings (1200 to 2500 Sq. ft.) – Luxury Villas and Condos (2500+ Sq. ft.) – Integrated Green Townships• Offices - Office Buildings, Serviced Offices• Leisure hotels - Conference and resort hotels, Historic Inns and boutique hotels, Restaurants, Cafes, Sports Facilities• Wholesale & Retail – Terminal Markets, Hypermarkets, Supermarkets, Convenience Stores• Hospitals, Primary and Secondary Health Centres• Education - Schools, Colleges, University buildings• Manufacturing – Industrial Parks, Mega Food Parks etc.• Logistics & Storage – Procurement and Processing Centres, Cold Storage, Warehouses, Distribution Centres, Greenhouses (buildings in which plants are grown), Rural Godowns etc.
Elevator Pitch• To capture the trillion dollar opportunities in the Certified Green Buildings and Sustainable Infrastructure market, several Engineering & Construction companies across the world are entering into Engineering, Procurement and Construction (EPC) contracts to Design-Build green buildings. – Unlike them, we want to build a new breed of Engineering & Construction Company that not only fulfils its EPC contracts by delivering Certified Green Buildings but also engages in the Operations & Maintenance (O&M) of these buildings. – We do it with a focus on achieving the best Net, sustained Value-for-Money and accelerated Time-to-Value. – This total procurement model is an emerging professional discipline and it is known as Infrastructure Asset Management (IAM).
Benefits of Infrastructure Asset Management (IAM)1. Enhanced customer satisfaction from improved performance and control of service delivery.2. The ability to achieve and demonstrate best value-for money.3. Improved risk management and corporate governance - with a clear audit trail.4. Optimized return on investment and/or growth.5. Improved health, safety and environmental performance.6. Confidence from long-term planning, better sustainability and performance.7. Improved corporate reputation, including enhanced shareholder value, greater staff satisfaction and more efficient procurement and supply chain.
Our Value Propositions ScaleRange and Depth Disruptive of Services Innovation Stakeholder Sustainability management
Our Value Propositions• Scale is a necessity to capture opportunities in high growth markets such as India, China and Brazil. As a start-up, doing Mergers & Acquisitions may not be very feasible. Hence, we will be building a Consortium with Global Suppliers and Partners to bid and win opportunities across the world.• Range and depth of services: We offer our customers a “total procurement” solution by fulfilling Engineering, Procurement and Construction (EPC) contracts and also delivering Operations & Maintenance (O&M) services. This total procurement model is an emerging professional discipline and it is known as Infrastructure Asset Management (IAM).• Stakeholder management: By integrating ourselves with our Key Partners across the Industry Value Chain, we are building a Globally Integrated Enterprise. This means, not only do we bid for projects as a Consortium; we also integrate our IT systems and Information Flows, Financial Flows and Products and Services.• Sustainability: We want to be a leader in sustainability. That is why we are starting with Certified Green Buildings and then moving to Sustainable Infrastructure. The focus on sustainability is because of regulatory changes that demand for audited data on sustainability issues/ratios.• Disruptive Innovation: We are bringing disruptive innovation to the business of Certified Green Buildings and Sustainable Infrastructure market by deploying several innovations like Co-Creation with our customers, Building Information Modeling (BIM), 5D Design, Pre-fabrication and Assembly, compliance to International Standards like BSI PAS 55/ ISO 55000, Infrastructure Asset Management (IAM), Integrated Project Delivery (IPD), Value Reference Model (VRM) etc.
• Unlike our competitors, we want to build a new breed of Engineering & Construction Company that not only fulfils its EPC contracts by delivering Certified Green Buildings but also engages in the Operations & Maintenance (O&M) of these buildings.• We offer a “total procurement” solution to the customers Engineering Procurement Construction Operations Maintenance
Global Sustainability Mega forces, Risks, and Opportunities
THE CONCEPT• Build efficiencies by optimizing costs• Re-think tax structures• Streamline supply chain• Enhance IT systems• Capitalize on high growth markets (China, India & Brazil)• Wherever necessary, grow through Mergers & Acquisitions
We are bringing disruptive innovation to the Certified Green Buildings andSustainable Infrastructure market by deploying several innovations like: Engaging in Co-Creation with our customers Engaging in Infrastructure Asset Management (IAM) 5D Design Building Information Modeling (BIM) Integrated Project Delivery (IPD) Lifecycle Strategy Cost, Risk, Performance Analysis Pre-fabrication and Assembly Compliance to International Standards like BSI PAS 55/ ISO 55000, LEED etc. Value Reference Model (VRM) 3.0 Shorter project cycle Significant cost savings & increased profits
DISRUPTIVE INNOVATIONWe will shorten the project cycle where a 30- floor building could be built in 15 days
Technology EntrepreneurshipWe will deploy high-end and very innovative technologies like:• Enterprise asset management (EAM) - whole life optimal management of the physical assets of an organization to maximize value• Building Information Modeling (BIM) - a process involving the generation and management of a digital representation of physical and functional characteristics of a facility• 5D Design - Includes 5 dimensions of length, breath, width, time and cost• Pre-fabrication and Assembly of the buildings• Software as a Service (SAAS)/Cloud based Project Management• SAAS/Cloud-based Whole Building Energy Analysis• SAAS/Cloud-based Sourcing and Procurement, Contract Lifecycle Management, Supplier Management• SAAS/Cloud-based Building Operations Management• SAAS/Cloud based Facilities Management• SAAS/Cloud based ERP
Key Points• There is a Total Available Market (TAM) of US$70 trillion for Sustainable Infrastructure over the next forty years. Moreover, there is a Served Available Market (SAM) in Brazil, China, India, US, UK, UAE, Africa, Mauritius, Singapore. Finally, there is a huge demand for Certified Green Buildings in High Growth Markets like China, India and Brazil. Moreover, US is a big market. Moreover, US is a big market.• A small 4-story Certified Green Building in Mumbai, India will cost around US$ 1 Million. We want to build many such buildings.• We want to enter the Sustainable Infrastructure market with Certified Green Buildings and then relentlessly move into larger Sustainable Infrastructure projects, eventually displacing established competitors.• Unlike our competitors, we want to build a new breed of Engineering & Construction Company that not only fulfils its EPC contracts by delivering Certified Green Buildings but also engages in the Operations & Maintenance (O&M) of these buildings.• We will do it with a focus on achieving the best Net, sustained Value-for-Money and accelerated Time-to-Value.• This total procurement model is an emerging professional discipline and it is known as Infrastructure Asset Management (IAM).
Results of Customer Surveys Certified Green Buildings and Sustainable Infrastructure
Survey area – Facebook group on Technology Entrepreneurship• Survey groups:• 1st group – potential customers and others not related to construction industry;• 2nd group - narrow-purpose group (construction related persons, investors etc.);
Occupation of respondentsFirst group Second group Supplier of construction materials; Other; 40% 20% Contractor (sub- contractor); 20% Building owner; 20%
Location of respondents First group Second group Other USA; 33,3% countries; 40% Othercountries; 66,7% USA; 60%
What does the term ‘Green building’ mean to you? ‘sustainable, efficient, good for the earth’ ‘It means energy efficency as well as conservation and the wave of the future’
Interest in green technologies and green buildings in the 1st group 22,2% 22,2% I use green technologies in my everyday life I use green technologies time to time 11,1% I use green technologies in my work I don’t use green technologies at all 55,6%• Nobody selected the option “I do not consider green technologies are important”
How interested are you in green buildings ? Second Group Rather low than high AverageFirst group 40% 60%
What are the primary considerations for your interest in green building? Other (Total carbon footprint) Good corporate citizenship Resources saving Energy efficiency 0% 20% 40% 60% 80% 100% First group Second group
Challenges to green building projectsEconomic and government regulations. more expensive, lip serviceLack of interest to such type of construction Problems with certifying such types of Ряд2 buildings Ряд1 Lack of high-skilled specialists in this area Lack of green materials/energy-saving technologies 0,0% 20,0% 40,0% 60,0% 80,0% 100,0% First group Second group
What are the main difficulties for having a Green building?• ‘getting people to ‘selling the concept’ understand the need for certain products’
Would you prefer to deal with a new construction company that is specializing in Infrastructure AssetManagement or work with separate approved partners (suppliers, subcontractors, etc.)? Separate, 30% Both, 70%
What features would you like in your green building? Second group ‘make people aware of green products’ ‘Comfort, well ‘Anything that can save designed, attractive’ money on electricity and not pollute the air’
As a customer (investor, building owner) how much extra areyou willing to pay for a green construction project compared to a non-green one? Second Group 5% 15% Depends on various factors 20% 60% 20%
Conclusions:• The respondents of the first group have an interest in green technologies and green buildings. They associate green buildings mostly with energy efficiency.• In some countries there is a lack of interest in green buildings due to lack of information about them.
• Respondents in the second group lack the awareness of energy and resources efficiency of green buildings. Thus they have low or average interest in green buildings.• Lack of green materials/energy-saving technologies and lack of high-skilled specialists area are among of main possible factors of such phenomena• The positive sign is that customers are ready to overpay 5 and even 15% for green construction project and they will also consider various factors including incentives such as tax credits.