Autumn 2013 Volume 10, Number 3
www.caba.org/ihomesandbuildings
CABA Intelligent Buildings & Digital Home Forum
Intelligent buildings and the bid specification process
will bring together leading organizations involved in the integration of intelligent building systems and connected home technologies.
Lose the Complexity, Move to the Cloud CABA to Examine Connected Home Monetization The MCI Standard for Energy Management
CABA’s Intelligent & Integrated Buildings Council (IIBC) focused on areas of research that address the needs and priorities of high performance and intelligent buildings. The IIBC identified two key areas of exploration in its 2011 Landmark Research study - the impact of smart grid development on intelligent buildings, and the progression of intelligent buildings towards net zero energy. There is a growing marketplace outlook that achieving energy sustainability and the growth of building intelligence are interdependent and exert a collective influence in the progression of high performance intelligent buildings. Consequently, CABA’s IIBC members focussed the research study on an investigation and assessment of the impact of the smart grid on the commercial buildings sector. Though still early in development and deployment, the research also examined the relationship of smart grids and the progression towards net zero energy output in intelligent buildings. The purpose of this study was to identify, define and size the principle business opportunities presented by the growth of smart grids, in relation to “intelligent buildings”. An examination of smart grid should yield immediate value to all stakeholders in the intelligent building industry, as smart grid and auto demand response holds more relevance in the industry today - with opportunities in existing buildings and new construction. Energy capacity/supply problems need to be addressed in the short-term, and made available in emerging technology. This will serve to add to market education and understanding, and address market knowledge gaps. As well, open and interoperable communication between energy suppliers and commercial energy users is an eventuality - which was further explored in relation to smart grid development and intelligent buildings. The purpose of these initiatives is two fold – an educational and validation exercise for industry participants and a means to drive public opinion and facilitate policy decisions at industry stakeholder, public authority and government organization levels. The study was funded by these CABA members:
RUBY SPONSOR
EMERALD SPONSORS
DIAMOND SPONSORS
The research was undertaken by research and buildings technology consultancy, BSRIA, on behalf of CABA.
Your Information Source For Home & Building Automation www.CABA.org
To purchase this and other available research reports or explore new research opportunities contact: George Grimes CABA Business Development Manager 613.686.1814 x226 or grimes@caba.org
More Information available at: www.caba.org/estore
Autumn 2013, Volume 10, Number 3 Contents Features Large Building Automation
Intelligent buildings and the bid specification process by Lindsey McCaffrey......................................................7
Home Systems
Lose the Complexity, Move to the Cloud by Scott Burnett................................................................................... 12
Columns CABA President & CEO’s Message.................................................................................................................................3 CABA Research Briefs
Demand Response White Paper: Integrated Intelligent Lighting Controls.............................................................5
The Connected Consumer Challenge: Extending The Electronics Experience Through Services....................... 6
Research Viewpoints
CABA to Examine Connected Home Monetization by Erin Mills........................................................................... 13
Ken Wacks’ Perspectives
The MCI Standard for Energy Management........................................................................................................... 15
Opinion
Building Automation and Cyber security by Marc Petock..................................................................................... 19
Departments New Members.................................................................................................................................................................. 4 Industry Trends.................................................................................................................................................................8 Networking and Events.................................................................................................................................................. 19 Upcoming Events........................................................................................................................................................... 21
CABA NewsBrief
Please go to the CABA Web site at www.caba.org to learn how to freely subscribe and sponsor
EDITORIAL ADVISORY BOARD
MANAGING EDITOR
CONTRIBUTORS
Dr. Kenneth Wacks Ken Wacks Associates (Chair)
Ronald J. Zimmer, CAE
George Grimes
Steven Brown CSA Group
Erin Mills
Labib Matta NeXgen Advisory Group FZ-LLC
EDITOR
Robert Knight Environmental Systems Design
Rawlson O’Neil King
Harshad Shah Eagle Technology, Inc. Association Office Continental Automated Buildings Association 1173 Cyrville Road, Suite 210 Ottawa, Ontario, Canada K1J 7S6 Tel: 613.686.1814; 888.798.CABA (2222) Fax: 613.744.7833
Further editorial use of the articles in this magazine is encouraged. For subscriptions, circulation, and change of address enquiries email caba@caba.org. For editorial and advertising opportunities: www.caba.org/ihomesandbuildings
The views expressed in this magazine are not necessarily those held by the Continental Automated Buildings Association (CABA). CABA shall not be under any liability whatsoever with respect to the contents of contributed articles. The organization reserves the right to edit, abridge or alter articles for publication.
CABA BOARD OF DIRECTORS CHAIR
VICE-CHAIR
Dr. Satyen Mukherjee Philips
Dr. Morad Atif National Research Council Canada DIRECTORS
Laurie Actman Penn State University
Michel Dostie Hydro-Québec
Grant Kroeger Qualcomm Incorporated
Scot Adams Cadillac Fairview Corporation
Daniel Drolet PNC Technology, Inc.
Stephen Nardi RealView, LLC
Jerine Ahmed Southern California Edison Company
Larry Ehlinger Pella Corporation
Barry Rogers SecurTek Monitoring Solutions
Scott Burnett IBM
Eric Fournier WattStopper/Legrand
Tom Semler Hydro One Networks Inc.
Brian Casey Honeywell International, Inc.
Bob Gohn Navigant Research
Mark Trayer Samsung Electronics, Co. Ltd.
Jonathan Cluts Microsoft Corporation
Jeff Hamilton Ingersoll Rand
Hélène Vaillancourt CSA Group
Xavier Datin Schneider Electric
Elizabeth Jacobs Siemens Industry, Inc.
CABA PRESIDENT & CEO’S MESSAGE Ron Zimmer As CABA continues to celebrate its 25th Anniversary, it is a great time to reflect on the early days of the home and building automation industry. When five organizations launched CABA, there were far fewer organizations and people involved in the sector. Standard groups like X-10, CEBus, BACnet, LonTalk were only beginning to emerge, and some moved onto thrive.
The industry has changed dramatically in the last 25 years,
with many new organizations, protocols and people. The transition from analog to digital technology saw the emergence of IP-based and cloud services, and even interfaces that react to gestures. Some research indicates that devices will soon react to thoughts!
In the 15 years that I have been with CABA, it has been
staggering to see many industry developments. The one common element has been the great visionaries that lead and succeed and yes, occasionally fail. However, product, service or company failures are lessons learned for the industry.
CABA has also undergone many changes in the last 25
years, with a modest start in 1988, growth continues internationally. CABA now reaches 300+ member organizations and
CABA has brought together numerous industry leaders since the late 1980s. Please plan to attend CABA’s Home & Building Automation Networking Forum this November.
20,000+ industry professionals with research and information, like the CABA NewsBrief. While continuing to be “Your Information Source of Home and Building Automation”, CABA boasts about having the largest “connected home and intelligent buildings” research library in the world.
The industry is changing rapidly and growing with cablcos, telcos and security firms joining the already strong
players in this sector. New technology, markets and customers from nearly every corner of the globe have enlarged the market and make it easier to succeed than 25 years ago. Having said that, people still need access to quality research that validates, informs and illuminates product development, marketing and sales strategies.
So even if you work with the 20+ research organizations that are now CABA members, you should still utilize
cost-effective CABA research and information to augment your resources and budget. If you are not utilizing “connected home and intelligent building” research, what are you basing your decisions upon?
We thank the many visionaries and volunteers over the last 25 years that have given time, money and resources to
help CABA and the industry grow and succeed. To help celebrate, CABA will invite industry to come to The Franklin Institute on November 19 in Philadelphia. Attend the CABA Forums, building tours, Council meetings and the last official CABA 25th Anniversary Reception and Dinner.
There isn’t another group like CABA!
CABA iHomes and Buildings Autumn 2013
3
NEW MEMBERS The Continental Automated Buildings Association is a not-for-profit industry association that promotes advanced technologies for the automation of homes and buildings. CABA members benefit from timely, competitive intelligence on the integrated systems industry. Here is a sampling of our latest members.
Anaren
Facio Corporation
Anaren is a major innovator of standard products and custom microwave and RF technology. With five facilities worldwide, the company is organized into two operating groups: Space & Defense and Wireless. Anaren’s highfrequency electronics products are the result of innovative engineering, design, materials processing, and world-class volume manufacturing.
Facio Corporation has over 100 years of cumulative experience in the energy management, automation and systems integration fields. The Toronto-based firm has the buildings systems knowledge and controls application expertise to help solve demanding operational challenges.
Darnell Group
Darnell Group is a leading source for worldwide strategic information covering the full spectrum of power electronics. The firm provides primary research, news services and original, proprietary information. Darnell Group specializes in the economic/business analysis of emerging power electronics markets and technologies. EnerCare Inc.
EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
Lowe’s LLC
Lowe’s is the second-largest home improvement retailer in the world. The Fortune 100 company serves approximately 15 million customers a week at more than 1,750 home improvement stores in the United States, Canada and Mexico. RF Connect RF Connect is a recognized leader in the design, deployment and support of high performance unified wireless systems, mobile solutions and applications. Robert Bosch, LLC
Robert Bosch, LLC is the North American division of the multinational engineering and electronics company. Bosch’s core products include industrial products, consumer goods and building products.
A complete CABA member listing with both product and service information and Web links is available at: www.caba.org
Connect with us at www.caba.org
4
CABA iHomes and Buildings Autumn 2013
CABA RESEARCH BRIEFS CABA Research Briefs provide a condensed synopsis of specific research papers available in the organization’s research libraries. CABA research libraries provide industry intelligence to the home and large building automation and integrated systems sector.
DEMAND RESPONSE WHITE PAPER: INTEGRATED INTELLIGENT LIGHTING CONTROLS This report from Kiwi Power examines the demand response on integrated intelligent lighting controls and their ability to increase efficiency and reduce costs. Demand response is a means by which demand on an electrical distribution network can be dynamically managed to meet movements in supply. Integrated intelligent lighting controls provide the opportunity for dimming based demand response strategies. The mature U.S. demand response market has shown light control as a DR strategy to be reliable. Using integrated intelligent light controls brings additional benefits: • Greater level of control achievable compared to manual switching • Makes DR available in virtually every building application • Great ease of control • Easy to predict the results compared to other DR strategies • Load reductions are highly repeatable • Amount of lighting load can be reduced rather than completely eliminated, thereby preserving productivity. Non-generation based demand response is still in its infancy in the UK. As such, large energy consuming buildings will be the first to be integrated into a program, as they offer the greatest financial rewards. It is also more likely that these buildings have a comprehensive building management system in place. Integrated intelligent light control systems provide the ability to interface with these existing building management systems – providing a single platform through which to execute demand response strategies across multiple technologies, such as lighting and air conditioning in an office application. Indeed, lighting based demand response strategies can complement HVAC strategies – as internal lighting gains make up about 30 percent of total internal heat gains experienced in a typical office environment. Reducing the internal heat gains from lighting will in turn require less cooling to be delivered to maintain comfort levels during a demand response event. While the financial benefits of DR are proportional to the quantity of electrical load that can be managed, DR participation and energy efficient lighting are not mutually exclusive. In fact, an optimally energy efficient lighting installation with enhanced controls makes demand response all the more possible. Integrated intelligent lighting controls creates the opportunity for dimming-based demand response strategies – especially where control at ballast level is available. Research carried out by the National Research Council Canada – Institute for Research in Construction have found that in non-day lit commercial applications, 80 percent of deskbased workers accepted short-term reductions in their lighting levels by approximately 20 to 30 percent – when
CABA iHomes and Buildings Autumn 2013
5
CABA RESEARCH BRIEFS
the reduction was carried out gradually (two percent per minute) with no adverse effect activity. Demand response is a future mechanism by which integrated intelligent lighting controls can deliver financial benefits for customers – strengthening the business case for their installation over and above the utility bill savings made.
THE CONNECTED CONSUMER CHALLENGE: EXTENDING THE ELECTRONICS EXPERIENCE THROUGH SERVICES Today’s consumers expect to do more with their connected devices, demanding high performance and integrated device experiences. To provide this experience, electronics companies must expand their traditional focus on quality product manufacturing to include new capabilities for service excellence. This white paper from IBM looks at these new areas of service excellence, which include: open collaboration, customer insight, service operation, software development and flexible infrastructure.
Customer Insight Electronics companies need to take a fresh look at consumers, viewing them through a new lens that reflects their evolving role. The consumer is no longer simply a buyer, payer and user of a product. Today’s consumers can also serve as designers and co-creators of experience, as well as ambassadors and quality control experts. Electronics manufacturers that offer services have the opportunity to interact directly with end users and, as a result, gain more visibility into their experiences. Service offerings open the door to more consumer interaction, as well as the ability to continuously gather data throughout the lifecycle – from purchase through usage.
Pre-sale
Sale
Product research
Product only
Post-sale
Purchase
Set up
Use
• Product information (registration) is optional
Upgrade/ replace
Get help • Basic user information • Usage issues
• More types of data on users and usage • More and deeper interactions • No time lag in collecting data
Product and service
• Product information • Basic user information • Purchase history
• Installation information • Billing information
• Usage data (e.g. purchase, location, usage duration, frequency, etc.)
• Usage issues
• Product upgrade data
Source: IBM Institute for Business Value analysis
Companies offering both products and services have more opportunities for consumer interaction and data collection.
Companies can then use analytics to turn the data into valuable insights and integrate these insights into their strategies and business processes. For example, understanding when and how consumers use a product and what services they use can lead to new product and service innovation, as well as timely end-of life decisions, which can be extremely important in this fast-paced industry. In addition, customer insight can also help companies better target their marketing tactics and campaigns to the right audiences, as well as assist in budget and resource allocation using techniques such as optimization of the customer portfolio.
6
•
CABA iHomes and Buildings Autumn 2013
LARGE BUILDING AUTOMATION Intelligent buildings and the bid specification process Lindsey McCaffrey describes how contractors can add technology to new buildings through the bid specification process. Though still in its early adoption stages, North America’s intelligent building industry is showing distinct signs of a gradual move upward in the market life cycle. Slowly but surely, building owners and managers are realizing the many financial benefits associated with intelligent technologies: including lower energy costs, lower maintenance costs, and lower repair and replacement costs. Take Greater Vancouver’s Kwantlen Polytechnic University as just one example: since installing an intelligent building automation system (BAS) across its Cloverdale campus, the school has seen an operational cost savings of $2.7 million over the last decade, an energy savings of up to 45 percent annually, a yearly savings in natural gas by up to 25 percent, and an estimated reduction in GHG emissions by 20 percent over the next 10 years. Given the many opportunities available to building owners, it is therefore surprising that the incorporation of building intelligence is not more widespread or occurring more quickly. In fact, where building specification processes are concerned, technology integration is often either postponed indefinitely, or not considered at all. But why? A disconnected industry
A 2013 study commissioned by the Continental Automated Buildings Association (CABA) recently identified a few reasons that might help explain the slow widespread adoption of intelligent technology in North America. Titled Intelligent Buildings and the Bid Specification Process, the Frost & Sullivan study looked specifically at the key aspects of the bid specification process, how decisions are made in that process, and the role of key influencers in such decisions. The state of the industry landscape is heterogeneous,
CABA iHomes and Buildings Autumn 2013
fragmented, and increasingly complex with the incorporation of new technologies, functionalities and applications into buildings. Key players in the “bid spec process” include vendors and service providers from established technology, product and solution segments, as well as those offering smart and energy-efficient alternatives. Any number of these stakeholders may be involved at any time of any given project delivery process. Ultimately, the report identified a disconnect among various value chain partners that led to the process being used sub-optimally, with little scope for incorporation of intelligent building solutions. Lack of understanding
Findings from the report show that building owners consider technology integration to be important; however, they do not have a clear idea of the actual benefits of buying these products and solutions. Instead, end-users surveyed were said to mainly rely on consulting specification engineers and design build organizations – those responsible for completing a final project design and providing detailed construction drawings, technology specifications and supporting – to make the “right” technology selection. The report also found that while engineers and design build organizations had significant influence on the building owner’s decision making process, not all engineers appear to understand the technology or value associated with intelligent buildings, either. Consequently, the end result obtained from the bid spec process did not often mirror the original project vision – particularly when it came to procuring the most optimal technology or service solution. Instead, in most cases, cost was the sole determinant for procurement, no matter what the original schematic
7
HOME SYSTEMS
design recommended. In fact, the study found that lowcost technology, with quick payback, was often favored over smart controls and automated solutions – the latter of which may have a higher upfront cost, but could potentially lead to measurable returns in the long-term. Improving the bid specification process
Currently, the distinctively disjointed and transactional model leads to low technology adoption. Yet engineers and design build organizations – already cited as a key player in the value chain – can do a few things to increase widespread usage. • Take a unified view: It makes sense for ultimate owners/operators of a building to have better and smarter technologies in the building, and for buildings to be looked at as an ecosystem rather than a series of systems or contracts. • Collaborate more: Getting to know more about intelligent building technologies can also be done by working with more vendors and associations like CABA, to determine where to situate new partners into the value chain. One important – and fairly new – partner in the bid spec process is that of the technology integrator: an expert who understands how different technologies can
be integrated into a building to make it smarter, and who is involved in the procurement process. • Educate the end user: Engineers’ role is not just to deploy and specify what goes into a building; they must educate the building owner or operator about considerations apart from budget. For example, many advanced components that go into a building will enhance its performance and value as an asset. Engineers must be able to demonstrate to building owners the value of implementing smart technologies from the very beginning of the project. The future of intelligent buildings
Despite the challenges facing the industry, CABA and Frost & Sullivan believe that the acceptance and awareness of sophisticated bid spec modules may increase favourably – particularly as more strategic alliances are formed and stakeholder initiatives are brought together.
•
Lindsey McCaffrey is a freelance journalist. This article first appeared in Canadian Consulting Engineer magazine’s August-September 2013 issue. The magazine is available online at www. canadianconsultingengineer.com.
INDUSTRY TRENDS Building Automation According to a recent ABI Research, over the next five years the building automation services market will grow to $43 billion, up from $35 billion this year.
Home Automation A study from the Consumer Electronics Association (CEA) found that 67 percent of consumers want professional home automation installation, but that they do not want home control that requires them to launch multiple individual apps for each subsystem. The study also shows security (not audio, video, climate control or lighting) is the most important impetus for the purchase of a home control system.
Smart Devices Shipments of smartphones with screens of five inches or larger will jump to 60.4 million units this year, compared with 25.6 million units shipped last year, IHS iSuppli forecasts. These “phablets,” which fill a market niche between smartphones and tablet computers, are especially popular in Asia, the market research firm reports.
8
CABA iHomes and Buildings Autumn 2013
The Continental Automated Buildings Association, through its Intelligent & Integrated Buildings Council and CABA Research Program, designed the “Intelligent Buildings and the Bid Specification Process” Landmark Research study to greatly improve the understanding of the commercial bid and product specification process throughout the intelligent buildings industry value-chain and related decision-making process. The broad purpose of the study was to greatly improve the understanding of the market imperfections and the inconsistencies that exist in designing and implementing intelligent building projects, as well as making investment decisions on intelligent technologies. To this end, the research identifies and assesses critical areas and importance factors to enable project sponsors to: further product/services market development; unify stakeholder decision-making processes; establish vertical partner strategies and strategic alliances, identify opportunities/ needs for training and coaching to remove obstacles from the process, and to provide product demand information to parallel market segments and other business areas. The “Intelligent Buildings and the Bid Specification Process” Landmark Research investigated the current state of the intelligent buildings bid specification process by major participants, market and type of technology and delivery mode. The research detailed market opportunity identification, in terms of the desired market approaches and the opportunities for implementation.
Other key objectives guiding the research were as follows: to improve participant vision and understanding of the Intelligent Buildings market; identify the primary drivers and barriers of adopting intelligent technologies; identify market demand and growth areas for new and existing products; compare competing strategies, needs and communications of building control systems commissioners, IT engineers, buildings developers, facilities managers, architects, and other stakeholder and supply chain partners; determine optimal messaging and rationales for various target audiences; define critical success factors to expand product offerings to end-user markets; establish a market approach and a foundation for inclusive strategic decision-making efforts; identify key internal and external challenges to create a strong position for participants in the market; and to create the foundation for next steps by participant organizations.
For a copy of the Executive Summary or to order the full report contact: George Grimes, CABA’s Business Development Manager, at 613.686.1814 x226 or Grimes@CABA.org Your Information Source for Home and Building Automation www.CABA.org
CABA’s Intelligent Buildings & Digital Home Forum Tuesday, November 19, 2013 The Franklin Institute, Philadelphia, PA Register today at: www.caba.org/caba-forum Forum attendees obtain discounted hotel rates CABA’s Intelligent Buildings & Digital Home Forum will be held at The Franklin Institute in Philadelphia on Tuesday, November 19, 2013.
Sponsored by
Held at
The Forum will be held just in time for USGBC’s Greenbuild 2013 event. The Forum will be an opportunity to attend the CABA Connected Home and CABA Intelligent & Integrated Building Council meetings and network with the CABA Board of Directors.
The Forum will feature informative sessions on: The Future of Intelligent Building Retrofits
Life Cycle Costing and Intelligent Buildings
The Cyber Secure Home
Monetization of Connected Home
Cybersecurity and Intelligent Buildings
The Connected Home on Wheels
Telcos and Integrated Systems
CABA IIBC and CHC Councils As an added bonus, delegates to CABA’s Intelligent Buildings & Digital Home Forum can experience an integrated systems tour of the Philadelphia Museum of Art, the Barnes Foundation, Lincoln Stadium and other facilities.
The Forum will also feature a networking lunch, 25th Anniversary CABA reception and dinner for all attendees. For more information and for sponsorship opportunities contact George Grimes, CABA Business Development Manager: 613.686.1814 x226 or Grimes@CABA.org
Speakers
Dr. Satyen Mukherjee Philips
Jonathan Cluts Microsoft
Elizabeth Jacobs Siemens
Scott Burnett IBM
Darlene Pope CoR Advisors
Tommy Russo Akridge
Chris Larry exp US Services
Fred Dougherty Liberty Property Trist
Barry Rogers SecurTek Monitoring Solutions
Eric Fournier Legrand/WattStopper
Bob Gohn Navigant Research
Marc Petock Lynxspring Inc.
Melissa Simpler AFFINEGY
Je Hamilton Ingersoll Rand
Ram Sastry Samsung Telecommunications America
Grant Kroeger Qualcomm
Jim Talty General Motors
Bob Allen The Siemon Company
Zouheir Mansourati TELUS
Tim Woods POCO Labs
HOME SYSTEMS Lose the Complexity, Move to the Cloud Scott Burnett describes how the cloud will reduce complexity for consumers in homes in the near future. The consumer electronics industry is in the grips of massive transformation. All driven by a proliferation of Internet enabled devices offering new intelligence and connectivity that rivals the ubiquity of electricity. Consumers are showing an insatiable appetite for the latest and greatest in technology, and as a result companies are working to transform their business models or risk being left behind. Despite an impressive track record of pioneering technology, today’s consumer electronics industry finds itself in a chaotic state, emphasizing the need to create innovative products with services faster and at lower cost than ever before. The demand for more content and services, coupled with aggressive new entrants and innovators applying enormous cost and profit pressures to incumbents, are driving electronics companies to search for new and sustainable growth opportunities as they set course to ride the next wave of the new Internet of things. The solution for companies to increase relevance and flexibility lies in the increasing possibilities of data analytics and cloud technology. With billions of people connected by nearly a trillion devices by 2015, untapped data will create a wealth of value that is just starting to be understood by both the consumer and those that make and sell devices and services. While building smart devices that connect to the Internet, consumer electronics companies should also anticipate developing devices that capture and convert data into insights for action --- to deliver new experiences. With billions of Internet-based devices poised for release, a service infrastructure to support those devices will be absolutely necessary and companies are discovering new ways to build bridges to innovative services. With power and economics on their side, successful consumer electronics companies are employing a cloud-based service delivery approach utilizing mobile applications and analytics capabilities to bring new value to people. Manufacturers that
12
deploy devices already connected with a service delivery platform in common, will better serve their consumer by exploiting new Web development tools for new applications that will collectively realize the promise of a smarter home. This year at IFA in Berlin, IBM is showcasing ways to help consumer electronics companies generate new revenue streams, enhance customer experiences and increase operational efficiencies. Consumers are beginning to see
IBM attended IFA 2013 in Berlin, Germany in September
the value of companies collaborating together within smart ecosystems, whereby the value of the Internet of things is realized, in essence, to serve people. After all, it’s not all about shiny new things but how these things make life easier. A good example is the Smart TV Alliance, where a group of companies, is building open solutions technology with open standards and systems to enhance the customer television viewing experience. Other examples being demonstrated at IFA this week include: Continues on page 20
CABA iHomes and Buildings Autumn 2013
RESEARCH VIEWPOINTS
CABA to Examine Connected Home Monetization & Building Life Cycle Cost By Erin Mills
The Continental Automated Buildings Association (CABA) is an industry association dedicated to the advancement of intelligent homes and intelligent buildings technologies. CABA is an international association, with over 300 major private and public technology organizations committed to research and development within the intelligent buildings and connected home sector. Association members are involved in the design, manufacture, installation and retailing of products for home and building automation. CABA’s Research Program
Each year, and as part of CABA’s on-going commitment to the production of quality and timely knowledge and products, members of CABA’s Councils – the Connected Home
Council and the Intelligent & Integrated Buildings Council – collaborate to identify priority research areas of interest and relevance to the industry. As a result of these discussions, two landmark studies are tendered to the research community each year and supported through the generous efforts of CABA members. These landmark research projects fall under the rubric of CABA’s Research Program, which is considered to be a leader in initiating and developing cross-industry, collaborative research. All proposals received are reviewed and evaluated by members of each council according to rigorous screening
CABA iHomes and Buildings Autumn 2013
criteria which includes a thorough examination of project scope, methodology, timeliness, cost-effectiveness and strength of the research team. Once a research vendor has been selected, a CABA Landmark Steering Committee is formed. This committee is comprised of members who have expressed interest in participating and who have committed to providing additional project support. Importantly, CABA Steering Committee members do more than guide the study. Members can voice their opinions, share their industry experiences, and provide feedback and direction on the methodological process and approach proposed by the research vendor, and work to ensure that a quality report is produced. Monetization of the Connected Home
Rapid transformation continues to shape the connected home market in North America. Shifting technologies; intense competition; and growing consumer expectations have placed increased demands across the industry – this includes designers, manufacturers, installers and retailers. In response to these challenges, the CABA Connected Home Council (CHC) is conducting a landmark research project called the ‘Monetization of the Connected Home’. Data collection for this project is currently in progress. Highlights of the report will include an in-depth look at: • What North American consumers ‘really want’ in home automation. What are they are willing to pay for? How much are they willing to pay? • What are current attitudes towards home automation? • What home automation features appeal to consumers? What are consumer expectations? What about future interest? • How connected are consumers?
13
RESEARCH VIEWPOINTS
• What features of home automation are considered unique by the industry? Why? • How can we increase the value placed on home automation by consumers – both users and non-users? How does this vary by age, income, education level? • What are growth expectations for companies? • Who are the new entrants to the market? What is the impact on competitors? • How does industry meet challenges such as increased competition or enhancing consumer adoption? • What business models do companies currently use? Why? What are current implementation strategies? The report’s results will be tabulated from a large scale on-line survey conducted with 1,000 North American respondents and interviews with a wide range of industry participants. The following CABA members are confirmed sponsors of the study: Alarm.com, American Honda Motor Co., Inc., Arrayent, BOSCH, fifthplay, Hydro One Networks Inc., Hydro-Québec, IBM, Lowe’s Companies, Inc., Pella Corporation, Qualcomm Incorporated, Samsung, Schneider Electric, SecurTek Monitoring Solutions and TELUS. This landmark research project should be completed by October 31, 2013. Life Cycle Costing and Intelligent Buildings
In late 2012, members of the Intelligent Integrated Buildings Council (IIBC) highlighted the need for more understanding and greater adoption of life cycle costing (LCC) as a viable costing method. They noted that increasingly, end-users in the intelligent buildings industry, such as architects, building owners, tenants, and builders are seeking ways to improve the cost efficiency of buildings and building-related systems and components. Life cycle costing is one measure used to evaluate cost effectiveness and takes into account all costs of acquiring, owning, and disposing of a building or building system. LCC is particularly useful when making comparisons to maximize net savings. This goal of this research is to help educate end-users with strategies to improve their competitive edge. Data collection for this project is currently in progress.
Highlights of the report will include an in-depth look at: • benefits of using LCC as an efficient costing method; • a scan of alternative costing methods used by industry participants; and rationales for use; • training efforts currently available; • identification of challenges posed by using LCC; • efforts required to increase greater adoption of LCC; and • recommendations for moving forward and fostering improved collaboration among industry partners. One key feature worth noting, of CABA’s Life Cycle Costing and Intelligent Buildings report, is a series of case studies conducted with CABA members. These case studies offer CABA project members: • Increased company visibility and opportunity to showcase key products and services; • Opportunity to demonstrate industry leadership and expertise; • Evaluation of your project initiatives undertaken via use of LCC (or similar tools) and/or validating data from projects through independent LCC modelling to demonstrate the benefits derived via use of LCC techniques; • Key opportunity to better understand the importance of using LCC for project success, value maximization and maintaining a competitive edge; and • Wide distribution of report to industry. The following CABA members are confirmed sponsors of the study: building SMARTAlliance, Cadillac Fairview Corporation Limited, Consolidated Edison Co. of New York, Inc., CSA Group, Hydro One Networks, Hydro-Québec, Honeywell, International Facility Management Association (IFMA), Ingersoll Rand/Trane, Johnson Controls, Microsoft Corporation, PCN Technology, Inc., Philips, Public Works and Government Services Canada, Siemens Industry, Inc., The Siemon Company and WattStopper/Legrand. This landmark research project should be completed by October 31, 2013. CABA’s Life Cycle Costing and Intelligent Buildings report will be made available to the industry without cost.
•
Erin Mills is CABA’s Research Director.
14
CABA iHomes and Buildings Autumn 2013
KEN WACKS’ PERSPECTIVES
The MCI Standard for Energy Management By Ken Wacks
On July 26, 2013, the New York Times published an article, “On Rooftops, a Rival for Utilities,” that portends the direction of electric power. Even though solar rooftop panels generate less than 1% of the power consumed in the United States now, the Times reported:
National Standard for a flexible, but practical, communications interface called the “Modular Communications Interface for Energy Management.” I chaired the committee that developed this standard and will provide an overview in this article.
For years, power companies have watched warily as solar panels have sprouted across the nation’s rooftops. Now, in almost panicked tones, they are fighting hard to slow the spread.
MCI objective The Consumer Electronics Association (CEA) is authorized by the American National Standards Institute (ANSI) to develop standards for consumer electronics and home systems. In January 2013, the “Modular Communications Interface for Energy Management” was approved as both a CEA and ANSI standard. This standard is officially named ANSI/CEA-2045, and informally called the MCI standard. The specification document was published in February 2013 and is available for purchase at www.techstreet.com. This standard specifies a modular communications interface (MCI) for energy management signals and messages to be exchanged among customer devices. These devices might include consumer products such as sensors, thermostats, and appliances; and energy-related equipment such as an energy management hub, an energy management controller, an energy management agent, a residential gateway, and an energy services interface. An Energy Management Agent is described in an international standard (ISO/IEC 15067-3) that was published in 2012 and illustrated in Figure 1. Utilities worldwide are investing heavily in smart grid infrastructures to ensure a reliable supply of electricity and to accommodate new technologies for power production. Smart grid programs are being offered to consumers for energy conservation and for energy management to align demand for power with available supplies. Consumer devices equipped with ANSI/CEA-2045 interfaces can participate in energy management programs such as demand
Alarmed by what they say has become an existential threat to their business, utility companies are moving to roll back government incentives aimed at promoting solar energy and other renewable sources of power. At stake, the companies say, is nothing less than the future of the American electricity industry. As hydraulic fracturing has begun to deliver new sources of fossil fuels, short-term energy prices have stabilized. Nevertheless, the growth of renewable sources will likely continue because of tax and rate incentives worldwide and concerns about greenhouse gas emissions. As I explained in the 2013 summer issue of iHomes & Buildings, the proliferation of renewables requires the adaptation of customer loads to supply fluctuations. The Department of Energy, with the technical guidance of the GridWise® Architecture Council, is developing Transactive Energy techniques that combine market and control methods to achieve grid balance. For loads to participate in Transactive Energy, they need real-time communications with supplies and service providers on the grid. Device communications is provided by an electronic interface module embedded in end-devices or in controllers that manage such devices. The consumer electronics industry recently completed work on an American
CABA iHomes and Buildings Autumn 2013
15
KEN WACKS’ PERSPECTIVES
Figure 1 – Energy Management Agent
response and can interconnect with distributed energy resources including local generators (wind and solar) and energy storage devices. What is MCI?
The MCI specifies a plug-in module that includes a physical wired connection into a residential device plus external communications. Communication links may be provided for power line carrier (PLC) and radio (RF), depending on the home area network installed or the connection to the access network of an energy-management service provider. The MCI plug-in module may be user-installable into a consumer product marketed as smart-grid ready. Figure 2 presents the plug-in MCI module for adapting the communications interface in a thermostat. Provision for an MCI in a new water heater is shown in Figure 3. Two physical form factors are defined. One provides a low-voltage DC supply and a serial peripheral interface (SPI). This option might be attractive in cases where the end-device has no AC power source or when a smaller socket size is required. The second form factor provides AC service (120/240V) and an RS-485 serial interface. This option might apply where the end-device does not provide a DC power supply or where PLC communications is desired.
16
For both form factors, the communication messages across the socket interface are the same. The standard specifies a base and an intermediate message set for demand response. The MCI is also capable of simply passing through application messages from ClimateTalk, Echonet, generic IP (Internet Protocol), KNX, LonTalk, Open ADR, SEP, and USNAP between the communications module and the end-device. The choice of message set depends on the program offered by the energy and equipment suppliers. Message sets may be added to accommodate future protocols. This standard affords manufacturers, consumers, and service providers flexibility to select the best solution for the local environment. MCI development
The CEA cooperated with a U.S. government smart-grid committee on the development of ANSI/CEA-2045. The need for this standard was identified by the Home-toGrid Domain Expert Working Group (H2G DEWG), which I chair. The H2G DEWG was established in 2008 by the GridWise Architecture Council (U.S. Department of Energy) and the National Institute of Standards and Technology (U.S. Department of Commerce). We invited various organizations to present interface proposal for the
CABA iHomes and Buildings Autumn 2013
KEN WACKS’ PERSPECTIVES
H2G DEWG. The Electric Power Research Institute (EPRI) and the USNAP (Universal Smart Network Access Port) Alliance offer similar concepts. At the suggestion of the H2G DEWG, they combined their specifications into one document, which was then reviewed in detail by the H2G DEWG members and offered to CEA for consideration as an American National Standard. The CEA R7 Home Networks Committee created the R7.8 committee to focus on MCI and appointed me as the chair. MCI extensions
CEA R7.8 is now considering companion standards for smaller interface form factors and device profiles, including message sets, for: • Thermostats • Lighting control • Distributed energy and storage resources • Solar inverters • Energy management controllers and agents • User interface devices • Stationary and portable appliances • Sensors and actuators Figure 3 – MCI Module for a Water Heater
MCI adoption
ANSI/CEA-2045 provides consumer electronics companies and appliance manufacturers with flexibility to adapt products for smart grids by reducing the risks and costs of using proprietary communication technologies. Manufacturers can focus on competitive product features and applications while incorporating standard interfaces. This approach should expedite product design and encourage product innovation, while facilitating energy management and conservation features in a wide range of consumer products.
•
Figure 2 – MCI Options for a Thermostat (Courtesy of Comverge)
CABA iHomes and Buildings Autumn 2013
Dr. Kenneth Wacks has been a pioneer in establishing the home systems industry. He advises manufacturers and utilities worldwide on business opportunities, network alternatives, and product development in home and building systems. In 2008, the United States Department of Energy appointed him to the GridWise Architecture Council. For further information, please contact Dr. Wacks at 781.662.6211; kenn@alum.mit.edu; www.kenwacks.com.
17
NETWORKING & EVENTS Over the past 25 years, CABA has brought together industry and thought leaders at numerous workshops and events.
Left: CABA President & CEO Ron Zimmer (right) in conversation with delegates at the Guangzhou International Lighting Exhibition (GILE) and Guangzhou Electrical Building Technology (GEBT) event held in China in June 2013.
Below: CABA President & CEO Ron Zimmer welcomed with other dignitaries at the Guangzhou International Lighting Exhibition (GILE) and Guangzhou Electrical Building Technology (GEBT) event held in China in June 2013.
Left: CABA President & CEO Ron Zimmer addresses the 4th Annual Affordable Housing Projects Conference held in Kuala Lumpur, Malaysia in June 2013.
18
CABA iHomes and Buildings Autumn 2013
OPINION
Building Automation and Cyber security By Marc Petock
As business people, we hate spending money on things that don’t help our businesses operate better and more efficiently, perform at maximum levels or improve the products and services we deliver to the market. And yes, we know there are necessary expenses in business that require funding. The thought of spending money on things that are only used in a worst-case scenario and risk management are not attractive options when it comes to the allocation of our important resources: funds. They are however, a must. So what do we do? We look at things such as what is the payoff going to be. Are there risks? What are the risks and where do they exist? How likely is our business and operations going to be affected? What is the potential impact? These are questions that need to be answered. The bottom line, we want a solid business case as to why the risk or reward to the business warrants the expenditure. We make purchasing decisions everyday based upon need over want. We recognize that the failure to do so puts our company, our business, our operations, our customers and even our fellow associates in an unacceptable position of risk. We don’t like it, but we understand it. There are things that we hate spending money on but to do so in order to protect our business. Looking at the rationale for spending money in these areas can help you make the case why cyber security prevention and protection of your building automation systems and network needs to be a priority today. For example, there is insurance – in business and in our personal life, insurance is a check we don’t want to write; but we do. We understand that protecting our critical assets against a catastrophic event is a necessity. Failure do so would be putting our business and our operations at risk of serious harm. And when the day comes around and you need it, you are relieved you have it. How about attorneys? Yes I said it, that nine letter word. While I personally respect and appreciate our attorneys and
CABA iHomes and Buildings Autumn 2013
the value they provide us, let’s face it, life would be much simpler without the legal wrangling over contracts and other complicated legal issues. But to try to do it alone would be crazy. Being protected is a must and it’s well worth the expenditure to have these experts on your team. How about the huge investments and dollars we spend each year on data storage and yet we still get those annoying alerts (it seems like weekly), telling us that our email box is over the size limit and contact your administrator. The reason we hate spending money in this area is because we know that a large percentage of what is being stored does not contain critical data tied to the success of the business. However, we can’t take the chance that this data is not accessible or may be needed some day, so we make the additional investment. Then there is disaster recovery – again, worst-case scenario expenditure, but one that is absolutely necessary. In today’s market where we depend on data and information so much, for it to be unavailable is something we don’t want to experience. Hopefully you are noticing a common theme here. We don’t like to spend money on these types of things, but do anyway. We have to and should. In each case, the potential cost to the business of not making the investment far exceeds not making the investment. These are all critical to our business and are necessities not choices. While cyber security has always been a concern when it comes to protecting traditional systems and devices such as computers, routers, servers and our business operation IT networks, our building automation system devices such as thermostats, HVAC equipment, access control, elevators and lighting controls seemed to escape protection and are “living below the poverty line”. Today however, cyber security protection and risk prevention for building automation systems is a necessity.
19
OPINION
Building automation networks and IT networks should not be treated differently when it comes to cyber security and threat protection. Just like an IT network (you invest in its cyber protection), building automation networks should have multiple layers of defense and protection as well as policies and procedures that are continuously addressed. A comprehensive cyber security program includes a defense-in-depth strategy and leverages industry standards and best practices to protect systems, devices and the networks they run on and detect potential problems, along with processes to understand current threats and enable timely response and recovery. Cyber security should be an integral part of the design of the automation system and its deployment, not an afterthought. From a business perspective, the negative consequences that BAS-initiated cyber incidents can cause are disruptive and potentially catastrophic. Such events can impact occupant productivity and personal safety, disrupt critical processes, and shut down business operations entirely. Then there is the potential theft and loss of intellectual property. Threats and breaches to building systems can be entry points
into the company’s network and become a pivot point that can bypass many existing network defenses. A hacker can use a BAS device as a jumping off point to get onto other devices and systems, introduce malware, viruses and worms or engage in other detrimental activities. The social implications can be as equally devastating with negative publicity and loss of customer confidence while the financial ramifications may be compounded with lawsuits and equipment replacement and repair. And there is more. While numbers are important, it is the business case that is important and the critical role cyber security protection of building automation systems plays in the operation of our businesses. The operational, financial and reputational impact to a business is tremendous.
•
Marc Petock is Vice President, Marketing for Lynxspring. Petock leads corporate and product marketing strategy and execution, brand management, public relations and communications to support the company’s strategic and growth initiatives. This article first appeared in AutomatedBuildings.com
HOME SYSTEMS continued from page 12
• IBM is working with Texas Instruments to show how connecting appliances to the Internet can help manufacturers get closer to their customers, and build a better consumer experience. Using the pervasive presence of Wi-Fi networks in homes, household appliances such as a washing machine connect to the cloud where Big Data techniques are used to analyze the wealth of the data that is now becoming available. For example, it is now possible to make the appliances more reliable through predictive maintenance, alerting consumers when a filter needs to be cleaned or changed. Also, by understanding for the first time in detail how the appliances are used, the manufacturers can improve the designs of the next generation. • In a Smart Home project with Tatung, Shaspa and IBM, consumers have the ability to manage a variety of convenience, comfort and safety activities such as controlling security and lighting systems – using any device capable of running apps.
20
• Silicon Valley start-up NexStep, Inc. is working on a mobile solution that is making it easier for consumers to install and connect home devices while also helping them to solve technical with a few clicks. Connecting household appliances to the Internet and the cloud opens up entirely new opportunities to understand how consumers use the appliances, and to help them to get the most out of them, and to build even better ones in the future.
•
Scott Burnett is Director, Global Consumer Electronics at IBM and a CABA Board member.
CABA iHomes and Buildings Autumn 2013
UPCOMING EVENTS Need information on upcoming industry events? Go to: www.caba.org/events
Shanghai Intelligent Building Technology (SIBT 2013)
ETA Education Forum October 14 -18, 2013
September 25-27, 2013
Greencastle, IN
Shanghai, China
www.educationforum.info
www.messefrankfurt.com.hk
High Tech Building 2013 CEDIA EXPO
October 29-31, 2013
September 25-28 , 2013
Moscow, Russia
Denver, CO
www.hitechhouse.ru/en/hthb
expo.cedia.net
ISA Automation Week CCTT National Technology Conference
November 5-7, 2013
September 26-28 , 2013
Nashville, TN
Winnipeg, Manitoba
www.isaautomationweek.org
www.cctt.ca
Interlight Moscow powered by Light+Building FTTH 2013 Conference & EXPO
November 5-8, 2013
September 30 - October 2, 2013
Moscow, Russia
Tampa Bay, FL
www.interlight.messefrankfurt.ru
www.ftthcouncil.org
CoRETECH2013 2013 European Big Data Conference
November 6-7, 2013
October 1, 2013
Redmond, WA
Brussels, Belgium
www.realcomm.com/coretech-2013
bit.ly/15xydZ8
13th Annual International Conference for Enhanced Building Operations
CABA’s Intelligent Buildings & Digital Home Forum November 19, 2013
October 8-11, 2013
Philadelphia, PA
Montreal, Quebec
www.caba.org/caba-forum
icebo.tamu.edu
Energy Harvesting & Storage USA 2013 Security Canada Central
November 20-23, 2013
October 23-24, 2013
Philadelphia, PA
Toronto, Ontario
www.energyharvestingusa.com
www.securitycanadaexpo.com
CABA iHomes and Buildings Autumn 2013
21
The Continental Automated Buildings Association, through its Connected Home Council and new Research Program, conducted the 2012 “Impact of Smart Grid on Connected Homes� Landmark Research study to greatly improve the understanding of residential Smart Grid development and deployment throughout the industry value-chain. The broad purpose of the research study was to identify market demand and growth areas for new products; compare competing product strategies and communication of competitors; determine product preferences for end users; develop messaging that resonates with the target audience; define critical success factors to expand product offerings to end user markets; and to establish a market approach and foundation for future strategic decision-making efforts.
The Impact of Smart Grid on Connected Homes Landmark Research investigated the current and future direction of the market and the opportunities smart grid represents for participants in the value chain. The study examined the concept of connected home desirability for consumers and the perceived benefits of controllability and energy savings that homeowners may derive. Other key objectives guiding the research were to identify future opportunities within grid-enabled energy efficiency, device and systems integration, and the development of a universal platform within the home. Further to this, the research gauged the
impact of future smart technology adoption rates, the desirability of quantifying energy savings and reducing operating costs, and the types of solutions likely to be developed to serve emerging needs over the long run. Ultimately, the research provided the foundation for potential next steps for industry participants in terms of: product/services research and development, business decision recommendations, optimal vertical market strategies and strategic alliances, education and training, and providing information on product demand into other parallel market segments and other business areas.
For a copy of the Executive Summary or to order the full report contact: George Grimes, CABA’s Business Development Manager, at 613.686.1814 x226 or Grimes@CABA.org Your Information Source for Home and Building Automation www.CABA.org