Presentation in the Facilities, Innovation and Technology Theatre at EMEX, The Energy Management Exhibition on 22-23 November 2017

1. 1TCS ConfidentialTCS Proprietary
Copyright © 2017 Tata Consultancy Services LimitedTCS Proprietary
Managing Your Total Energy Cost as an Outcome
Kanishka Misal,
@ TATA Consultancy Services, UK

2. 2TCS ConfidentialTCS Proprietary
Your Energy Bill is not your Total Energy Cost
Unit Price Consump0on
Energy Services Spend: αx Bill Value
Contracts Efficiency
Ʃ
Energy Service Providers
So7ware Partners
Equipment Manufacturers
Consultants
Energy
Wheel
of
Fortune

3. 3TCS ConfidentialTCS Proprietary
Total Energy Cost: The ‘Energy Wheel of Fortune’
+ 7 other cost heads

4. 4TCS ConfidentialTCS Proprietary
Cost Pools Spend per annum*
Electricity & Gas Bill à £3 Mn
Procurement Services à £0.5/MWh à £50-75K
Invoice VerificaKon à £3-5/invoice à £10-15K
Personnel Cost (In house team) à £80-100K (Team of 3)
Metering Survey à £1500/site à £15K
Meter Maintenance/Upgrade à £25K to £40K/annum
Energy Assessments à £ 6K/site à £60K (10 sites)
AM&T SoWware Licences à £100-140/meter à £30-50K
Energy Monitoring (Bureau) à £0.5/Sq Ft à £80-100K
Compliance ReporKng à £25-40K
Market Intelligence à £5-20K (Reports, Events)
CommunicaKons & LogisKcs à £5-20K
FM Response (Energy) à £0.5 to 5K site à Avg. £80K
7 Other Cost Heads à £1K to 5K site à £80-£220K
Total Energy Cost
à £3.5 Mn to £ 3.7 Mn
à α = 0.15 to 0.20
Total Energy Cost: The ‘Energy Wheel of Fortune’
ProcurementServices Strategy&Planning
Text
Consulting fee
Metering Cost
IT Software Costs
Procurement Services
• Procurement
• Budget & Rate Analytics
• Contract Management
Billing Services
IT Hardware Costs
Energy efficiency
Demand Mgmt
Mobility Solutions
Personnel Cost
Reporting Cost
Market Intelligence
Forecasting Services
* Indicative costs for a 3+Mn energy consumer in UK with 80 sites
# Data from iON Calculator
Accuracy: P82.7

5. 5TCS ConfidentialTCS Proprietary
q Target Savings of £ 100K
q Savings as a % of Total Energy Cost
q Comfort Index for Employees
q Purchased Unit Rate
q Cost as % of Competitors Cost
q Service level 98%+
q 20% Renewable Sourcing
q A mix of the above
q Reduction in CRC penalty
q 98% Bill Accuracy
Define the Outcome!
& It could be all of the above!

6. 6TCS ConfidentialTCS Proprietary
An example of how we defined the Outcome at the start of the Program
Rajesh Gopinathan
CEO & MD, TATA Consultancy Services
"TCS’ vision should be to decouple
business growth and ecological footprint
from its operaEons to address the
environmental boFom-line”
“With energy cost amongst top 5 cost
drivers, we need to manage this resource
intelligently by driving efficiency and
opEmisaEon without compromising on
employee comfort”
We linked this outcome to
20
Key Performance Parameters
N Chandrasekaran
Chairman TATA Sons (TATA Group)

7. 7TCS ConfidentialTCS Proprietary
A 3 Year Program Designed to Meet the Outcome
TCS
Live Case
2.5% of Total
Energy Cost
iCommand
Center
AI Systems
Insights &
Analytics
Due Diligence
Strategy &
Planning
+
IoT Plaborm
Data
ManagementSensors Infrastructure
à Decision Support à Operating Efficiency à Capital Prudence à Managed Service à OUTCOME
à à à à
q α of 1.1
q 145 Sites
q 35 Mn Sq. Feet
q 10,000+ Energy Meters
q 6,000+ Occupancy Sensors
q 1.5 Mn Observations per day
q Team of 22 (24x7)

8. 8TCS ConfidentialTCS Proprietary
Managing Comfort as an Outcome
Comfort 1
Temperature
Comfort 2
Humidity
Comfort 3
Lighting
Comfort 4
Activity
Comfort 5
Location
Comfort 6
Occupancy
Lever 1
BMS Control
Lever 2
J L App
Lever 3
Log Incident
Lever 4
Communications
Ac0on
q Adjust BMS (automated sites)
q Inform Site Admin to Adjust BMS Cooling Level (manual)
q AcKvate J L app on all computers at site
q Call Site FM – Inform About VIP Event at Site
24°C 15% ON - LOW EVENT TIER 1 NORMAL

9. 9TCS ConfidentialTCS Proprietary
Cap on Total Usage as an Outcome
Usage 1
Time of Day
Usage 2
Day of Use
Usage 3
Start Time
Usage 4
Cost Index
Usage 5
Daily Variance
Usage 6
Data Availability
Ac0on
q Log Incident with Medium Severity in Command Center
q Email Site FM about spike
q Adjust BMS (automated sites)
q Check Advanced AnalyKcs Reports for High Usage
q Inform Metering Partner to check for Data Loss
Lever 1
BMS Control
Lever 2
Advanced
Analytics
Lever 3
Log Incident
Lever 4
Communications
SPIKE WEEKDAY +1HR +5% 98%

10. 10TCS ConfidentialTCS Proprietary
Managing Total Cost as an Outcome
Cost 1
Avg. Rate
Cost 2
Bill Error
Cost 3
Budget
Cost 4
Usage Index
Cost 5
Comfort Index
Ac0on
q UKlise surplus budget to buy day ahead
q Report opportunity loss due to data loss – impacts partner’s SLA
q Check Advanced AnalyKcs Reports for High Usage
q Inform UKlity Service Provider – Billing Errors!
Lever 1
Buy/Sell
Lever 2
Bill
Analytics
Lever 3
Resolution
Desk
Lever 4
Communications
+5% £30K 90%

11. 11TCS ConfidentialTCS Proprietary
q ConsumpKon Insights
q Comfort Index
q Billing DeviaKons
q Budget Variance
q DeviaKon Management
q EscalaKon Matrix
q Automated AcKons
q Asset Tuning
q Security Management
q ISO 50001 Audit
q ISO 140001 Audit
q Sustainable ReporKng
q Financial ReporKng
q Budget Tracking
q …
Levers in a Command Center

12. 12TCS ConfidentialTCS Proprietary
The operating model behind such a program
INPUT 3RD
PARTY
RESOLUTION
ResoluKon Services
(Managed Services Mode)
ß LEVEL 3 à
INSIGHTS
iCommand Center
ß LEVEL 2 à
PROCESSING DEVIATIONS
Advanced IoT System
ß LEVEL 1 à
AM & T System
Apps
Support Services
BILLS
CONTRACTS
USAGE
METERS
OPEARTIONAL
DATA
WEATHER
BUSINESS
INFO
BUILDING
SOFTWARE
EMPLOYEES
BUDGET
NFO

13. 13TCS ConfidentialTCS Proprietary
Three possible ways for sell this within your organisation
IoT
Platforms
@ CFO/CEO
Level
Savings Linked
Program
(3-5 years)
ConsulKng
Engagement
Track 1:
By an
Energy
Manager
Products
Services
Track 3:
B2B Apps Hub
AM&T +
Command
Center
@ Head of
Facility
Level
Measurement &
Analysis
ConKnual Monitoring &
ReporKng
Track 2:
Track 1
Outcome
Based

14. 14TCS ConfidentialTCS Proprietary
Recap - 5 Steps to an Outcome Based Model
§ Step 1 à Define the outcome & payback window
§ Step 2 à Select the services from the ‘Energy Wheel’
§ Step 3 à Calculate maximum capital and operating outlay
§ Step 4 à Define an investment for the service
§ E.g. Number of new meters, loads to be monitored
§ Step 5 à Keep aside a monthly operating budget to manage the program to the
Outcome by adjusting the levers
You can’t play a symphony alone, it takes an orchestra to play it
Navjot Singh Sidhu, Former Bowler, Indian Cricket Team

15. 15TCS ConfidentialTCS Proprietary
Welcome to the changing landscape
Interlinked Demand & Supply,
.... (holisEc approach)
…. Data Centric ….
(operaEng Expenses drive Capital Outlay)
.... through Enterprise Level Analy0cs …
(top down approach)
.... with Select Partners
(collaboraEon between players)
Consump0on Led, ....
(energy efficiency)
…. Asset Based ….
(capital outlay)
…at Facility Level ….
(boFom up approach)
.... with Mul0ple Vendors
(complex contracts & SLAs)

16. 16TCS ConfidentialTCS Proprietary
Copyright © 2017 Tata Consultancy Services LimitedTCS Proprietary
Thank you