Connected Buildings and the IoT – How Will You Change Your Business?

1. Connected Buildings and the IoT
How will you Change your Business?
Roger Woodward - VP & MD Tridium EMEA
FMP Event Celtic Manor
5th April 2017

2. IoT in Buildings
- Market Trends
- Connected Buildings
The Internet of Things
- Introduction
Agenda
How to position your business?
- Servitization
Q&A

3. What Does Tridium and the Niagara Framework Do?
•Software frameworks allow you to preserve legacy system investments, save on development costs and reduce your time to market
One Tool

4. Niagara Global Community
12,500 Views a month
150 Products & Services
50,000+ Conversations
18,000+ Members
6,000+ Articles Published
18,000 members
ApplicationsDrivers Appliances
Open Platform - Developer Support & Training
Domain Knowledge

5. THE INTERNET OF THINGS
AND BUILDINGS

6. Cloud Big Data
Analytics Mobility
Connectivity

7. Smart buildings supplier landscape
It’s time to collaborate

8. Even faster adoption of new technology
Telephone 60 years
Smart phones 7 years
Don’t do it on your own—collaborate

9. Lighting Control
Fire Alarm System
Energy &
Power Metering
UPS Monitoring
Access Control
CCTV
BMS
Supervisor
Network
Controllers
Network
Controllers
Chilled
Beams
Water
Treatment
VSD
Pump Sets
VRF
CCU
AHU
VAV
FCU
Chillers
Boilers
Hardwired
Serial
Network
Dedicated
PC
Traditional Controls Structure
Heat
Pumps

10. Lighting Control
Fire Alarm System
Energy &
Power Metering
UPS Monitoring
Access Control
CCTV
BMS
Supervisor
Network
Controllers
Network
Controllers
Chilled
Beams
Water
Treatment
VSD
Pump Sets
VRF
AHU
Chillers
Boilers
Heat
Pumps
Emerging Controls Structure
VAV
FCU
CCU

11. Lighting Control
Fire Alarm System
Energy &
Power Metering
UPS Monitoring
Access Control
CCTV
BMS
Supervisor
Chilled
Beams
Water
Treatment
VSD
Pump Sets
VRF
AHU
Chillers
Boilers
BACnet/LON/Modbus (MSTP)
BACnet/LON (MSTP)
BACnet/LON (MSTP)
BACnet/LON/Modbus (MSTP)
BACnet/LON (MSTP)
BACnet/LON (MSTP)
Modbus/M-Bus (MSTP/Wireless)
DALI/KNX (MSTP / IP)
BACnet/LON (MSTP)
BACnet (MSTP/ IP)
Onvif (MSTP/ IP)
BACnet/LON/KNX/Modbus (MSTP)
BACnet/LON (MSTP)
BACnet/LON/Modbus (MSTP)
BACnet/LON/Modbus (MSTP)
BACnet/LON/Modbus (MSTP)
oBIX
Web Access
Legacy
BMS Systems
Heat
Pumps
BACnet/LON/KNX/Modbus (MSTP)
Retrofit/Refurbishment
- Partial retrofit
- Web enables
BACnet/LON (MSTP)
POE (Power Over Ethernet)
Wireless
Emerging Controls Structure
MOBILITY
VAV
FCU
CCU
Proprietary

12. The IoT & M2M isn’t coming
It’s here

14. Years
Speed
of
Development
Start
Now Agile
Development
On-Going
Cyber Security
Integration
Dashboards
Collaboration
No one can do it alone anymore
Mobility Apps
Analytics

15. Life Safety/
Security
Environment/
HVAC
Energy Lighting Refrigeration
Fuel
Pumps
Food
Preparation
Car Wash
Facilities /Business
Management
Energy Management Facilities / Equipment
Management
Maintenance and
Operations
The Enterprise
Energy analysis | Remote service & support | Corporate management | Fuel management
Improved customer service | Improved resource management | Integration of sub-systems
Customer and Supplier Engagement

16. Data centres Monitor, Manage, Maintenance, Billing, Capacity Planning
• Individualized GUI
• Dashboards
• Multi-site management
• Alarm Console
• Drill Down Navigation
Management tools
• Floor Plan Views
• Electrical Monitoring
• Mechanical Monitoring
• Maintenance Manager
• Tenant Billing
• Rack Manager
• Asset Manager
• Capacity Planning with “what if” scenarios

17. Integrated Network - IT Convergence
Associating people with building demands and management

18. Smart buildings and cities

19. Platforms and integration needs to support partnerships
Citywide shared network infrastructure Wi-Fi Mobile network Ethernet
Smart parking
management
Water
management
City street light
management
Waste
management
Air pollution
Monitoring
City surveillance
management
Intelligent traffic
management
Transportation
management
Emergency
service mgmt
Event
management
Smart grid and
energy mgmt
Dispatch
management
…Application
domain
services
Common /
shared
services
Machine
learning &
Analytics
Stream
Analytics
Machine
Learning
Big Data
Analytics
GIS
Location
Workflow
Management
Dashboard
Platform
Monetization
Common
Alerting
Cognitive
Service
Authentication&
Authorization
Device
Management
Social
network feed
Data
Management

20. Niagara Forum
Dubai

21. Data analytics…
What is it & who cares?
• A world of connected devices results
in an ever-flowing torrent of Big Data
• Data by itself is not valuable
• It needs a tool that can “shrink,”
analyse and optimise data using a
set of rules to make it actionable
information that empowers users to
make better decisions

22. Analytics
Responsive analytics with business intelligence in real-time
Make sure Analytics are:
• Designed for your industry—not generalised
• Provided at the plant, site and cloud level
- ‘Real time’ time Analytics on the equipment,
as well as ‘historian’ level
• Ability data-mine previous historical information
• Ability to take actions on analysed data
• Extensive HTML user visualization
• Alerts, algorithms, dashboards and reports
• Delivered natively (easily engineered)
• No new programming skills required
• Included in the products you select

23. Businesses are being shaped by

25. Hotel Room Key

26. Dematerialization

27. Do you need to worry?
ONE—Dollar Shave Club
5 year old startup took on Gillette and sourced 8% North America market share

28. • No Factory - Outsourced to DorCo, Korea
• No Distribution system - Out Sourced to Kentucky
• No R&D - Outsourced to DorCo
• No Sales force - Social media
• No Marketing budget - Social media, Youtube
• No IT infrastructure - Amazon web services
Gillette focused on product and not the customer
Made possible by the Internet, mass transportation, globalisation & viral marketing
Unilever paid $1bn for Dollar Shave Club in 2016
- men don’t like to shop!
Dollar Shave Club
Low fixed, high variable costs

29. We are in a World where:-
• The largest hotelier in the World owns no hotels
• The largest taxi company owns no cars
• The largest Travel Agent has no shops
Things are changing!

30. Finance: banking
Things are changing!

31. How to change your company?
Products are probably already “Smart.”
How can you get them to work for you?

32. Servitization:
Is a transformation journey
It involves firms (often manufacturing firms)
developing the capabilities they need to provide
services and solutions that supplement their
traditional product offerings
Making Things Providing Services

33. Differentiation of a high cost product - Lighting

34. Lighting is ubiquitous,
LED lighting is inherently
digital, widespread
transition to LED will be a
key enabler for the IoT.
LiFi?

35. Creating a different business model
Using connectivity to provide dynamic pricing
Could also be:
• Product updates
• Remote diagnostics
• Energy efficiency
• Operational improvements
• Additional optional features

36. Creating a different business model
To provide additional revenue streams
• Provided free
• Only pay when you use it
• Health & Safety report
(Vibration, Duration, etc.)
• Location
• Customer access
• Service schedule
• Spare parts

37. Cloud based services
Software as a Service—SaaS
There are new additional services that
are/can be provided in buildings by Saas
• Proactive Remote Maintenance
(know–before-you-go)
• Energy Reporting and Control
• Demand Response
• Facility Management
• Desk & Meeting room scheduling
• etc. . . . . . + + +
New revenue opportunities
powered by the Internet

38. Connected services

39. How easy is it to deploy? Product Updates
Fault Analysis
Analytics
Maintenance
Know-Before-You-Go
Remote Diagnostics
Technical Support
Location Services
Energy Efficiency
R&D Feedback
MTBF - Statistics
Benchmarking
Minimise Downtime
Asset Management
Environmental Compliance
Staff Efficiency

40. How easy is it to deploy? Product Updates
Fault Analysis
Analytics
Maintenance
Know-Before-You-Go
Remote Diagnostics
Technical Support
Location Services
Energy Efficiency
R&D Feedback
MTBF - Statistics
Benchmarking
Minimise Downtime
Asset Management
Environmental Compliance
Staff Efficiency

41. How easy is it to deploy? Product Updates
Fault Analysis
Analytics
Maintenance
Know-Before-You-Go
Remote Diagnostics
Technical Support
Location Services
Energy Efficiency
R&D Feedback
MTBF - Statistics
Benchmarking
Minimise Downtime
Asset Management
Environmental Compliance
Staff Efficiency
Technology itself is
only an enabler
The key is what to
do with the data and
how to analyse it

42. Direct customer contact throughout the product lifecycle
During a products lifecycle the costs are more than
5x the original value though Service and Spares
CAPEX OPEX
Connected

43. GENERATION X & THE MILLENNIALS
(WILL) RULE
GENERATION Z ARE COMING

46. A Blue Print
for the IoT?
IoT is fundamentally changing the way companies will do business
Products
Smarter
Products
● Embedded & enhanced processing power
● Greater data capabilities
● Bi-directional communications
Isolated Connected
● Pervasive coverage & greater bandwidth
● Multiple technologies to the Edge
● Real time communications
Operational
Technology
OT + IT
Convergence
● Applications and data
● Integrated/advanced analytics
● Shift in traditional product design
Service
Innovation
“Servitization”
● Products designed with integrated services
● Cloud Services
● New business models
Competitive
Advantage
Source: Machina Research, 2015
Key Takeaways – Industry Trends

47. Gartner Hype Curve
We always over estimate what will happen in the next two years
and under estimate what will happen in the next 10 years

50. CONNECTING BUILDINGS
& SMART CITIES

51. Key takeaways - Industry trends
1
IoT is a game-changing opportunity for smart building participants. It enables them to provide integrated
solutions to maximize operational and energy efficiency, enhance innovation, develop remote services more
easily, and create new and valuable insights for end users.
2
The past 5 years have seen huge levels of technology innovation in the energy and environment industry
with smart technology re-defining the landscape.
The next 5 years will be the era of business model innovation as suppliers fight to maximize the real benefits
for customers.
3
X-as-a-service will become customers’ preferred business model and suppliers will need to develop service
capabilities or partner with integrated asset service companies or energy service providers in order to play in the
most dynamic part of the market.
4
Innovation of low power and low data-rate connectivity devices and the adoption of common standards for
data security and privacy and communications are influential factors in the acceptance of the IoT value
proposition by end users.

55. Google’s self-driving cars (58) have passed 1,725,000 miles
1 accident (at 15mph), 13 + accidents not its fault

58. one open
solution
Roger Woodward
VP & MD Tridium EMEA
roger.woodward@tridium.com
Questions?