Thank you for the opportunity today to share with you IBM's perspective on Smarter Buildings, and how managing your real estate and facilities can help you create a more energy, operationally and space efficient building. Today I will share with you IBM’s perspective on Smarter Buildings, and I will go over IBM’s portfolio of offerings which has been recently expanded with the announcement of the IBM Intelligent Building Management solution in June, and with the TRIRIGA acquisition in April of this year. As you know, IBM’s celebrates its Centennial in 2011. This gives us the opportunity to reflect on what it takes to be a great company and a great brand. To do that, we remain committed to being a leader in the markets we serve….. and a company who operates on a higher standard than just what is required by law or regulation… A company that continuously reinvents itself and creates offerings that have a positive impact on our planet. And nowhere is this more important than innovations that deal with environmental issues, such as energy efficiency in buildings. Our Smarter Buildings discussion today will illustrate the real business value of doing more with less in a way that benefits the economic, operational and environmental strategies of your organization.
But before we begin, let’s go to chart 2 to illustrate a few facts about buildings that you may not be aware of. In 2008, The National Science and Technology Council in the US estimated that commercial and residential buildings consume 1/3 of the world’s energy; in North America this translates to 72% of the electric generation. That’s a very large number. And if this trend continues, by 2025, buildings worldwide will be the largest consumers of global energy , more than transportation and the industrial sectors combined. Also, up to 50% of the electricity and water used by buildings is wasted … another large number, and some might say very shocking…. And data centers - we IBMers are all very familiar with data centers. They are among the largest consumers of energy within a building – and their energy usage is doubling every five years. And when you consider that buildings are either the second or third largest expense on the income statement for most companies, it’s easy to understand the impact this waste is having on the bottom line, and it is also easy to understand why Smarter Buildings is a big idea, and why customers are showing a great interest in it …… Statement: Worldwide, buildings consume 42% of all electricity – up to 50% of which is wasted. Buildings consume 42% of all electricity — more than any other type of physical asset. They generate 15% of all green-house gas emissions. In the United States, the numbers are even greater: buildings guzzle 72% of all energy, and produce 38% of green-house gas emissions. Source: IBM Smarter Buildings Survey, Customers Rank their Office Buildings , 2010, page 2 http://www-03.ibm.com/press/attachments/IBM_Smarter_Buildings_Survey_White_Paper.pdf Statement: Buildings lose as much as 1/2 of the water that flows into them. Source: IBM Smarter Buildings Survey, Customers Rank their Office Buildings , 2010, page 2 http://www-03.ibm.com/press/attachments/IBM_Smarter_Buildings_Survey_White_Paper.pdf Statement: Buildings are the number 1 contributor to global Co2 emissions. Source: Energy Information Administration (2006). Emissions of Green House Gases in the United States. In New York City, for example, buildings account for 64% of NYC’s Carbon Emissions. Source: http://www.nyc.gov/html/planyc2030/html/emissions/emissions_ourdata.shtml Statement: Energy costs alone represent about 30% of an office building’s total operating costs. Source: EPA, http://www.fypower.org/bpg/index.html?b=offices Statement: By 2025, buildings worldwide will become the top energy consumers. Federal R&D Agenda for Net-Zero Energy, High-Performance Green Buildings http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergyHighPerformanceGreenBuildings.pdf Statement: According to studies by EPA energy cost represent up to 30% of OPEX cost. 79% ( 8 out of 10 rounded ) according to a recent IBM survey prefer to work in buildings that offer as part of the regular routine at work, to options to conserve resources such as water and electricity. The Carbon Disclosure Project estimates that 59 jurisdictions around the world are either have or are actively pursuing carbon mandates that will effect buildings. Statement: Second largest expense item Shttp://www.cbre.com/NR/rdonlyres/7509891F-A845-4B94-B630-2022BB2F2CE5/734095/WHITEPAPER_ReducingOccupanyCosts1.pdf
Now, let’s move to chart 3 and talk about some of the benefits of Smarter Buildings. Smarter buildings can reduce energy consumption by as much as 40%. The higher savings are typically achieved when implementing both physical enhancements, and real-time monitoring tools. Smarter Buildings can also reduce maintenance costs by 10 to 30%, and those numbers are based on real results derived by customers using Maximo to maintain their facilities. A recent study conducted by San Diego University found that LEED and Energy Star multi-tenant buildings have a higher occupancy rate of 91% and a sale price increase of 5% when compared to Non-rated buildings. And that makes sense when you consider that commercial and residential tenants are typically responsible for their energy bills. Also, a variety of studies have demonstrated real productivity benefits in commercial and industrial settings. For example, according to the U.S. Green Building Council (USGBC) office worker productivity increases between 2-18% on average in green buildings, and occupants are more willing than ever to participate in making their buildings more environmentally responsible. their buildings more environmentally responsible. Other sources: US National Science & Technology Council, "Federal R&D Agenda for Net Zero Energy, High Performance Green Buildings." 30 September 2008, pg 7, Continental Automated Buildings Association, "Convergence of Green and Intelligent Buildings." 2008, pg 7, 33.) See CABA Bright Green Bldgs.pdf or US Federal Green Buildings Agenda 0930208.pdf And for a glimpse of what is possible through a smarter building approach, consider the how Smarter Buildings help people think and be more productive. The number of EPA Energy Star buildings growing 30% each year. This growth is expected to continue as reported by McGraw-Hill. A recent study of LEED & Energy Star buildings conducted by the Burnham-Moores Center for Real Estate at San Diego University and The CoStar Group found significant advantages. This study of multitenant buildings shows an increase in rental & occupancy rates and sale price compared to Non-rated buildings. http://www.costar.com/josre/ A variety of studies have demonstrated productivity benefits in commercial and industrial settings. For example, according to the U.S. Green Building Council, office worker productivity increases between 2-18% on average in green buildings. http://w3.ibm.com/connections/files/app?lang=en#/person/5ca21fc0-8f0a-1028-8107-db07163b51b2/file/d35fc97d-21dd-4a57-84c7-82019e26bd2b See page 10. Statement: 65% of building occupants are willing to help redesign their workplace to make it more environmentally responsible. Source: IBM Smarter Buildings survey (2010) http://www-03.ibm.com/press/attachments/IBM_Smarter_Buildings_Survey_White_Paper.pdf
Let’s look at the current situation in buildings today. Today many buildings have embedded technologies and buildings processes that are capable of self-communicating status, problems and issues. The unprecedented proliferations of smart sensors and control systems over the last decade can detect and sense various conditions and emit alerts or responses of many disparate systems. These data feeds insights into the management and process of each of these systems. But how do you use this siloed information to provide operational and improved performance in the building? On the left we see all the various systems we see in many buildings. Not all are present in every building. But what you see is how embedded technologies and new levels of interconnections of buildings processes have been deployed in the last few years, all capable of self-communicating status, problems and issues. Think of it as a kind of digital sign language. The unprecedented proliferations of these sensors and control systems over the last decade are now being used in buildings to detect or sense various conditions and emit alerts or responses of all the interconnected systems you see in the center. But the fact is these building systems on the left operate independently, through a mix of vendors, and have different protocols and transport mechanisms. These different systems technologies have also been advancing and maturing at different rates. Add to that, the sheer volume of data and real time alerts, especially when your focus is at a campus or portfolio level, you can see why the task of interconnecting this information can be daunting. Finally, understanding a building from a holistic point of view requires collaboration between facilities and IT organizations at new levels and creates the need for new transformational skills in your organization or business. The ability to stream, sift, and sort lots of data quickly is key to achieving real-time energy and performance optimization. To put this in perspective, IBM has a current project that involves a 3.3M square foot manufacturing site in Minnesota, USA. We had over 250,000 sensor points we could obtain information from. So we began by gathering about one third of theses sensors, approximately 80,000 data points on a routine basis. From these we learned that only about 10,000 changed status often enough that that needed to be prioritized and sampled every 15 minutes for performance and energy optimization. This meant we were collecting 2,150,000 point of information on a monthly basis. All these l needed to be resolved by selected automated actions and dashboard alerts. As you know, aggressive urban growth in both new and remediated buildings has increased energy conservation programs and the amount of investment in sustainability. People are demanding environmental responsibility in the places they work. We all have the expectation to be able to work in a fully networked world. We have come to expect full integration across all systems, we expect to be able to work collectively in a pervasive, fully available and safe workplace and social environment. On the right is a vision for how Buildings need to interact with their externalities while at the same time, heighten their security and services. T he externalities around a building are things like the current weather predictions, alerts from emergency systems, demand management from the utilities, transportation or traffic events, or community service communications like AMBER alerts or severe weather warnings. A smarter building takes all this information to provide a predictive analyst of its surroundings. Add to this the fact building are being looked at as future full potential of Smarter Building must be viewed in the light of them as sources of co-generation power plants, reservoirs for water, and even roof top farms. So Smarter Buildings are not just data sources they also need to be intelligent two way communicators with the EXTERNALITIES like weather patterns, Utility Smart Grids, communication services , and even the occupants in them.
The ability to really understand buildings at this level best practices, key performance indicators and a combination of skills that span both facilities knowledge you need to get the pulse the of a facility and improve building performance means following a few basic best practices listed here. First you need to understand the facility and where energy is being used – the type of facility, the type of equipment in the facility, the age of the equipment, how the facility is being operated, and a historical look at the energy bills so you can see how the building has performed over time. Once you have those parameters in your database, then an energy assessment and facilities assessment is necessary – traveling to the site, looking at the equipment, understanding the equipment, data logging in real time the energy being used at the area where it’s being used, and talking to the people working there. Once that data is captured, analyzed, trended, and put into a format you can look at, you’ll understand where the energy is being used and why. Then you can set the characteristics of the facility, and how it should operate. This will allow you to put together performance-based criteria for how it should run. Going to facility, making sure that everything works, setting the performance factors, and commissioning the building to operate the way it was designed to run – all these steps can be taken by outside contractors, building analysts, or corporate management.
To reiterate once more, smarter buildings are managed comprehensibly to provide optimal occupancy services in a Reliable, Cost Efficient, and sustainable manner. A few examples of how our customers have made their buildings smarter can be seen here: Tulane University is located in the heart of New Orleans and is the largest employer in the city. As you all know it was devastated by Hurricane Katrina a few years ago. The School of Architecture located in Richardson Hall is 100 year old building that has implemented the IBM Intelligent Buildings Management solution. The project overlays the disparate building controls for heating, cooling, electrical and water equipment, enabling them to act more holistically rather than against each other. With greater visualization of building data and energy analytics, the school aims to expend only a fraction of the resources it currently uses. After this first phase, Tulane plans to deploy the IBM Smarter Buildings Solutions to all its 70 buildings across campus. IBM teamed with Johnson Controls on this project, which is helping Tulane to connect to its existing building systems to collect metered data, then incorporating that data to enable advanced analytics that uncover sub optimal conditions. The second example is the IBM Rochester, Minnesota campus. This campus was established in 1956; it has 36 buildings that contain 3.1 million square feet which is equivalent to about 300,000 meters. It is a multi-use campus which includes manufacturing, warehousing, development labs, office space and a data center. The local building management team has been implementing building enhancements for the past 7 years such as improving the insulation and the roof material, and has achieved an impressive 5 to 8% energy reduction per year. But the facilities managers were running out of physical enhancements to do, and since Rochester is one of the highest energy consuming campuses for IBM, they decided to implement the IBM Intelligent Building Management solution, implemented by IBM Global Business Services, IBM Software Group and Global Alliance Partner Johnson Controls . The solution collected 10,000 measurements every 15 minutes, and recorded and analyzed operational performance against a set of rules. If a variance was detected, a service request was automatically generated and the appropriate personnel were notified via a service request. For example, if the outside air temperature is above 78 degrees and a heat valve is open on one of the air handlers, heating a building unnecessarily, maintenance staff got an alert and were dispatched to resolve the issue. This resulted in an 8% decrease of energy consumption of the monitored equipment since the solution was implemented. It is important to note that the new savings are just due to the data driven approach and they are over and above the savings that resulted from the physical enhancements to the building. Berufsgenossenschaftliches Unfall Krankenhaus Hamburg
Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Networks DONG Energy, Oestkraft, the Technical University of Denmark, Siemens, Eurisco and the Danish Energy Association
The Innovators of tomorrow who are in this room require a new mix of skills to manage complex systems of systems producing BIG DATA. Data Analytics can extract unprecedented insights from BIG DATA, and within a decade will become as common a “tool” as the pocket calculator. We, the Information Technology industry, and our partners in its use, have a responsibility to enable solutions for Smarter Buildings and Smarter Grids with all the societal benefits that entails.
Ibm smarter buldings 2012 short overview
A smarter way to manage your real
estate and facilities