Winter 2014 Volume 11, Number 4
www.caba.org/ihomesandbuildings
Everyday Excellence: A New Way to LEED CABA Board member Debra Gondeck-Becker from Honeywell International shares insights about the new LEED Dynamic Plaque.
INSIDE: Home Security: Your Foot in the Door to the Smart Home Energy Efficiency and Building Automation Market Growth with APIs How Do You Assess Real Estate Today? Improving Performance with Integrated Smart Buildings The Connected Car: Lifestyle Impact on Consumers and the Ecosystem
CABA’s Intelligent Buildings & Digital Home Forum April 14-16, 2015 The Renaissance Hotel, Austin, TX Register today at: www.caba.org/caba-forum-2015 Forum attendees obtain discounted hotel rates CABA’s Intelligent Buildings & Digital Home Forum will be held at The Renaissance Hotel in Austin, TX, from April 14-16, 2015.
Collocated with
The Forum will be held in conjunction with Broadband Communities Summit 2015. 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: Security and Privacy (Cybersecurity)
Healthcare and the Connected Home
Connected Automotive and Homes
Commissioning of Buildings Through Data Analysis
Interface and Speech Recognition
New Zero Buildings
Adaptive Automation and Permission
Wireless Advances with Intelligent Buildings
As an added bonus, delegates to CABA’s Intelligent Buildings & Digital Home Forum can experience an integrated systems tour of AT&T Labs and IBM Labs. Through planned tours, workshops, keynote presentations, networking events/receptions, and an exhibit hall, the CABA Forum is being collocated with the Broadband Communities Summit. Join and meet 1,000+ industry professionals at these events. For more information about speaking and sponsorship opportunities, or to attend, contact Bill Saunders, CABA Business Development Manager: 613.686.1814 x229 or saunders@caba.org
Winter 2014, Volume 11, Number 4 Contents Features Home Systems
Home Security: Your Foot in the Door to the Smart Home by Karl Gustafson........................................................7
Large Building Automation
Energy Efficiency and Building Automation by Omar Talpur................................................................................. 12
Columns CABA President & CEO’s Message.................................................................................................................................3 CABA Research Briefs
Improving Performance with Integrated Smart Buildings.......................................................................................5
The Connected Car: Lifestyle Impact on Consumers and the Ecosystem............................................................. 6
Research Viewpoints
Everyday Excellence: A New Way to LEED by Debra Gondeck-Becker..................................................................10
Ken Wacks’ Perspectives
Market Growth with APIs......................................................................................................................................... 14
Opinion
How Do You Assess Real Estate Today? by James Carlini...................................................................................... 19
Departments New Members.................................................................................................................................................................. 4 Industry Trends.................................................................................................................................................................8 Networking and Events.................................................................................................................................................. 17 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
Bill Saunders
Steven Brown CSA Group
Greg Walker
David Labuskes RTKL Associates, Inc.
EDITOR
Labib Matta NeXgen Advisory Group FZ-LLC
Rawlson O’Neil King
Robert Knight Environmental Systems Design Ken Sinclair AutomatedBuildings.com 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-CHAIRS
Dr. Satyen Mukherjee Philips
Scot Adams Cadillac Fairview Corporation
Dr. Morad Atif National Research Council Canada
Jerine Ahmed Southern California Edison Company
Larry Ehlinger Pella Corporation
Zouheir Mansourati TELUS Corporation
Debra Gondeck-Becker Honeywell Building Solutions
Noah Goldstein Navigant Research
Christopher Martin Robert Bosch LLC
Fabrice Hoerner Qualcomm Incorporated
Jeff Hamilton Ingersoll Rand
Stephen Nardi RealView, LLC
David Claridge Texas A&M University
Raphael Imhof Siemens Industry, Inc.
Tom Semler Hydro One Networks Inc.
Xavier Datin Schneider Electric
Dawn Mortimer American Family Insurance
Eric Simmons Rogers Communications, Inc.
Michel Dostie Hydro-Québec
Elizabeth Jacobs Intermatic Incorporated
Hélène Vaillancourt CSA Group
DIRECTORS
CABA PRESIDENT & CEO’S MESSAGE Ron Zimmer, CAE As an international trade organization, CABA has managed to grow significantly in the past 26 years. This can be attributed to many reasons, but the main reason is that CABA has been governed by strong Boards since its inception. So what has CABA been doing lately to help the industry grow and mature?
At the recent CABA Board meeting and CABA Annual General Meeting hosted by TELUS in Toronto, there was a
traditional yearly review. Here are several highlights of what CABA has provided members and the growing industry: •
The CABA Board has expanded and includes 22 great organizations and representatives (featured on page two
•
There are now over 300 organizations that are CABA members, with offices in nearly every country in the world.
•
The CABA NewsBrief has a growing subscription of 15,000+.
•
The CABA Intelligent & Integrated Buildings Council (IIBC) is comprised of over 180 member representatives
•
The IIBC and CHC oversee the new White Paper Program, where any member can bring forth new white paper
of this magazine).
and the CABA Connected Home Council (CHC) has over 140 people. Both groups are active and meet quarterly. concepts to be developed complimentary with a Working Group. •
The CABA Members’ Library now features over 800 research reports and includes $4 million worth of research
•
Non-CABA members can access the CABA Public Library with over 700 research reports from the period
that is reviewed by the CABA Information Council before it is added. 2004 – 2010 complimentary. •
In the past year, the CABA Research Program saw the completion of two major CABA Landmark Research
•
CABA Ambassadors, Speakers, and Staff attended 25+ industry events internationally to share CABA research
Reports and the launching of four new research projects in 2014! and industry info. •
There are over 2,000 industry professionals on the CABA LinkedIn group and as CABA President & CEO it is
•
The CABA YouTube Channel provides free exposure for members to promote their company, products and
great to be linked to 7,100+ industry professionals. services. •
The newly formatted CABA Intelligent Buildings & Digital Home Forum has expanded and will collocate with the Broadband Communities Summit, such that 1,000+ people will gather in Austin, TX from April 14 – 16, 2015.
The CABA Board, volunteers and staff are not resting on their laurels celebrating all of these recent accomplishments, but have been working hard to develop the next CABA Strategic Plan. This new Plan will provide CABA with a “Roadmap” to continue growing the industry and organization. On that note, there are two opportunities for CABA members to serve on the CABA Board. Let me know if you are an industry leader! All the best in this Holiday Season, Ron Zimmer
CABA iHomes and Buildings Winter 2014
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.
Arizona Public Service (APS)
Arizona Public Service Company is the largest electric utility in Arizona and the principal subsidiary of publicly traded S&P 500 member Pinnacle West Capital Corporation. APS serves more than one million customers in 11 counties throughout most of the state, but is mainly concentrated in northern and central Arizona. APS is one of the two suppliers of electricity to the Phoenix metropolitan area. Building Robotics Building Robotics develops intuitive occupant-facing, optimized controls that sit on top of existing HVAC and management systems in commercial buildings. The firm’s first product, Comfy, improves office comfort and productivity, while simultaneously achieving energy savings. EcoOpera Systems Inc.
EcoOpera Systems Inc. is an engineering software company supporting operation and maintenance optimization practices for buildings and industrial processes. Edison Global Circuits LLC
Edison Global Circuits is a leading-edge pioneer in electrical safety and diagnostic systems. The firm provides proprietary solutions for safety, diagnostics, fire prevention, smart meters, green adaptations and home and business gateways. Technicolor
Technicolor is a worldwide technology leader in the media and entertainment sector. The firm’s world-class research and innovation laboratories and its creative talent pool enables it to lead the market in delivering advanced services to content creators and distributors. The firm also leverages an extensive intellectual property portfolio focused on imaging and sound technologies, and also licensing.
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 Winter 2014
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.
IMPROVING PERFORMANCE WITH INTEGRATED SMART BUILDINGS This white paper, provided by Siemens Building Technologies, provides an overview on how to implement an integrated building automated system (BAS). Topics include: what makes a smart building; smart building strategies being used by specific buildings; benefits of integration; how existing buildings are using integration to become smarter; and challenges to creating smart buildings. This paper provides a good overview of how companies can better manage their energy costs utilizing a BAS. To some facility executives, the term “smart building” may conjure up images of a building of the future from a science-fiction movie. But the reality is smart buildings exist today, and their number is growing. There are smart office buildings, smart health care facilities, smart hospitality complexes, smart educational facilities and many other types of smart buildings. What these smart buildings have in common is integration. By using sophisticated building automation systems (BAS) to integrate individual building systems, facility executives can take full advantage of the power available in today’s building systems. Seamless integration based on building automation systems brings a range of benefits to both the facility executive and the larger organization, all the way up to the C-suite. These benefits range from energy savings to productivity gains to sustainability. And once building systems have been integrated, the building automation system can be tied to enterprise business systems to add another level of intelligence to enhance decision-making and improve building performance. Smart buildings depend on intelligent building automation systems to seamlessly integrate and manage a facility’s core systems, such as HVAC and lighting, among others. But there is no single set of capabili-
In the Duke Energy Center in Charlotte, N.C., 16 separate building systems, including three building automation systems, are integrated on one network.
ties that defines all smart buildings. Rather, the smart building concept is a dynamic process that enables an organization to use integration to tap the power of systems that are in a building today, while also providing a path to future improvements.
CABA iHomes and Buildings Winter 2014
5
CABA RESEARCH BRIEFS
THE CONNECTED CAR: LIFESTYLE IMPACT ON CONSUMERS AND THE ECOSYSTEM CABA recently published a white paper, authored by Compass Intelligence and a CABA working group, on the connected car market. The paper found that an increasing number of vehicles are coming to market with the capability to support communications of various sorts. In 2013 more than one billion sensors were sold to the auto industry, more than doubling 2009 levels. While tethered and integrated solutions have dominated car connectivity to date, embedded connectivity solutions began appearing in 2014, with the number of such vehicles projected to increase by 2015 and beyond. The connected car is forging a new realm of connectivity and it is yet unclear which aspects of the connected car capabilities that consumers will demand and value most. According to initial research on the subject, it appears that consumers intend to use vehicle connectivity in a significantly different way than other connectivity devices. Popular activities on smartphones and tablets, including app usage and social networking, appear to appeal to relatively few consumers. Consumers appear to gravitate more toward safety, vehicle diagnostic and maintenance features as well as navigational capabilities. In 2014, Compass Intelligence conducted an end-user survey on the connected car. Some of the preliminary results are displayed below. Question: On a scale of 0 (not interested at all) to 5 (extremely interested in the service), please rate your level of interest in the below services.
•
Sample Size = 618 5 – extremely interested
4
3
A car that predict a potential accident and automatically avoid it.
2
1
0 – not interested at all
A system that will allow your car to find the closest parking space to your destination.
23%
32%
The ability to have your vehicle parallel park automatically.
23%
31%
A system that will notify drivers of upcoming speed changes. A device that sets your insurance rates based on your driving habits.
18%
23%
A car that can drive itself from one destination to another safely without a human driving it.
17%
23%
An alert that lets the driver know there are too many distractions in the vehicle.
16%
Interest level in having wireless communications sponsored, e.g., by a major sponsor such as Ford or Coca-Cola.
15%
25%
The ability to have your vehicle communicate with other vehicles to share information.
15%
26%
A device that monitors and records teen driving habits.
14%
24%
22%
12% 14%
19% 9%
21%
9%
12%
17%
18%
9% 5% 10%
21%
7%
3% 7%
13%
23% 26%
12%
6%
11%
17%
28%
18%
10% 5% 8%
23%
33%
21%
9% 2% 6%
16%
37%
30%
18%
9% 7%
16% 18%
9% 30%
Source: Compass Intelligence, 2014
6
CABA iHomes and Buildings Winter 2014
HOME SYSTEMS Home Security: Your Foot in the Door to the Smart Home According to Karl Gustafson at CMG Partners, the prime mover in the security market will be the smart home. For many years, the home security market was just that — secure. For over a decade, home security has maintained a 25 percent penetration rate in U.S. households — mostly made up of an upper-class clientele. Recently, smart home innovations and the emerging Internet of Things have stirred the pot, creating a recipe for a shakeup. Not only in the area of mobile apps and do-it-yourself (DIY) solutions, but also speculation about Google’s purchase of Nest Labs, talk of Apple iHome, and the entrance of big cable and telecom players to the market. As the automated home environment evolves, home security is transitioning from being a complete, discrete system into being one app among many in a multifunctional ecosystem. With all this in play, it’s a critical time for established home security providers to strengthen and expand their position in home security as a foot in the door to the smart home of tomorrow. Home security has held fairly steady at 20-25 percent market penetration over the years, and is expected to grow two to three percent annually through 2016. By contrast, the smart home market — which will include products for automated and remote control of energy, entertainment, health and lifestyle — is expected to grow by double-digits. A study by Parks Associates forecasts that as soon as 2017, more than 11 million households will have some type of smart home controller, up from an estimated two million in 2013. In its current state, the home security segment has an unmatched leader in ADT, which corners a fourth of the market. The other top players are Protection1, Monitronics and Vivant, which make up the next nine percent. The remaining two-thirds of the market include bigger companies like Comcast XfinityHome and Time Warner Cable IntelligentHome, along with a crowd of smaller regional
CABA iHomes and Buildings Winter 2014
players and DIY solutions. Until recently, there hadn’t been much disruption in this market and the established order ruled. New Players and New Models Disrupt What has complicated this picture recently is a flurry of new competitors entering the market from all sides. There has been an increase in DIY solutions, such as Lowe’s Iris, that are sold with varying levels of monitoring support or no monitoring at all. Telecom and cable companies have added security services to their portfolios with varying degrees of success. And lastly, mega corporations like Google, Microsoft and Apple are investing heavily in various aspects of home automation. All of this activity signals that like its forebear the Internet, the looming ‘Internet of Things’ will be a disruptor that prompts transformation. We’ve seen it before. Think of Amazon.com, smartphones, and streaming video just to name a few. Another example is the U.S. auto insurance market and the disruption caused by two upstart companies making a bold change in strategy and valuation. In the mid-nineties, GEICO and Progressive shifted to direct sales via Web sites and toll-free numbers. This enabled lower pricing, convenient 24/7 shopping, and a bigger budget for advertising. State Farm Insurance, the commanding market leader, was slow to adapt in the areas of direct service and pricing. As a result, the landscape of the auto insurance industry has changed considerably since 1995. GEICO, which had been a distant sixth in the market then, is now second with nearly 10 percent of the market. GEICO has largely maintained its model of direct sales, while State Farm was gradually forced to evolve to more direct, around-the-clock services and value pricing. ADT,
7
HOME SYSTEMS
today’s commanding market leader in home security, could be looking at the same sort of losses if they aren’t faster than State Farm to adjust to changes in technology and customer behavior. On the bright side, home security may be the best foundation from which to build a smart home business. Of today’s smart home offerings, security is the most established option and also seems to be the most appealing to untapped households. Nearly 60 percent of U.S. broadband households claim some level of interest in the safety, security and convenience benefits gained from security and smart home products — more than double the size of the market served today. Automobile Insurance Market Share From 1995 To 2013 State Farm
Progressive
Geico
STEPS TO SUCCESS IN THE SMART HOME MARKET 1. Develop strategy to broaden customer base beyond current demographics by exploring new value propositions and pricing options that appeal to the unserved security market (middle class, DIY and Millennial households). 2. Establish positive customer relationships that protect your current base while positioning your products and services at the center of the new smart home. 3. Proactively manage customer life cycles by segmenting target markets, understanding need states and delivering value propositions that will evolve them into new aspects of the smart home.
25
21.6% 20
17.8%
15
9.2%
10
5
0
9.9%
2.6% 2.5%
1995
2013
What should incumbents do?
With the current jockeying for position — and the huge potential of the smart home market — it’s a critical time for established players to develop strategies for more aggressive growth while setting up an advantageous position in the future smart home. Given the size of the unserved market, home security providers should seek to expand beyond their existing customer base to increase market penetration, providing a first mover advantage within the larger smart home market. At the same time, they should begin to proactively manage the customer lifecycle to nurture adoption of additional components of the smart home ecosystem.
8
The first objective of this two-pronged strategy is to increase your basic market share by developing stronger value propositions and flexible pricing structures to address a broader market. The current security customer is an upper-middle class family who views security as a necessity. Research on new potential consumers would provide insight into need states and fee structures that will motivate adoption for this large unserved market. The market segments most primed for this category are middle-class families and Millennials who are just getting started as renters and owners. Adjustments to the product offering itself may also help to appeal to a broader market. There are a wide variety of offerings on the market today ranging from traditional equipment installation with 24/7 monitoring to DIY sensors linked to mobile apps. Market testing should reveal a happy medium that will appeal to middle-class and Millennial targets without cannibalizing the upper-tier customer. Getting a broader base of customers into home security will pave the road to broader adoption of smart home products and services as they are launched. The second part of the strategy is to proactively manage the customer lifecycle — supporting the evolution of home security customers into active smart home consumers. Similar to increasing penetration in the unserved market,
CABA iHomes and Buildings Winter 2014
HOME SYSTEMS
there is a need to segment potential targets, understand need states, and develop compelling smart home value propositions for existing customers. As an example, older customers may have a significant interest in health-related smart home solutions while younger customers may have more interest in energy savings or entertainment. As established providers pursue this strategy they should consider: 1. Leveraging strengths — Security players’ core strength is their service. What are the most valued, compelling smart home services that will justify incremental monthly service fees? 2. Addressing legacy models — Take steps to consider not only what customers want to buy, but also how they want to buy it. Having an open product ecosystem may enable growth and flexibility for the long term.
3. Marketing strategically — Apply agile marketing principles to target new consumer segments with a propensity to enter the smart home market via home security. Be sure to continually test and adjust marketing strategies to stay ahead as this market evolves. The recent activity and major investments by Google, Microsoft and Apple illustrate a consensus that the smart home is a highly promising market. Today’s home security providers — who quite literally have a foot in the door — will get ahead of the competition if they take action now to address this emerging market. By broadening their customer base and opening their product ecosystem, they have the opportunity to build the relationships and credibility that will translate to a considerable advantage in the evolving smart home.
•
Karl Gustafson is a senior director with CMG Partners.
INDUSTRY TRENDS Building Automation MarketsandMarkets forecasts the intelligent building automation technologies market will grow from $58.9 billion in 2014 to $74.8 billion by 2019. In terms of regions, North America and Europe are expected to be the biggest markets in terms of revenue contribution, while Asia-Pacific, Middle East and Africa, and Latin America are expected to experience increased market traction, during the forecast period.
Energy Consumption Although the number of gadgets in U.S. households grew by nearly one billion devices between 2010 and 2013, their consumption of electrical power declined by 12 per cent during that time frame, according to a study by Fraunhofer USA, commissioned by the Consumer Electronics Association. Televisions and PCs led the trend in using less energy, the study found, thanks to the TV shift to LCDs and fewer desktop PCs in use.
Communication Nodes According to Navigant Research, worldwide shipments of communications nodes for building automation system will reach 387 million annually by 2021. Integrated building management and building automation systems rely on networks of sensors, switches, fans, alarms, and other devices, along with powerful software tools to provide a real-time view of the current state of a building.
Lighting Controls Memoori estimates that in 2013 wireless controls accounted for around 10 percent of the total value of lighting controls products and that this will grow at a CAGR of 28 percent to $934 million by 2020; by which time it will account for some 23 percent of the lighting controls market.
CABA iHomes and Buildings Winter 2014
9
RESEARCH VIEWPOINTS
Everyday Excellence: A New Way to LEED By Debra Gondeck-Becker
Sustainability initiatives drive tangible cost savings that can impact the bottom line. As a result, many public and private organizations are committing to aggressive environmental goals, which influence how their facilities operate, spurring the growth of high-performing, energy-efficient buildings. The primary benchmark for excellence in sustainable construction is Leadership in Energy and Environmental Design® (LEED) certification. However, there is still a need to make sure facilities continue to perform at their peak — and deliver the expected return on investment — once they’re verified to meet Certified Silver, Gold or Platinum LEED status. And that task is difficult without a simple way to measure and manage a building. Evolving Building Conditions Guidelines and standards are helpful in ensuring a new, high-performing facility is built to operate to exacting levels. And LEED is the world’s most recognized and prolific green design and construction standard. To date, the U.S. Green Building Council (USGBC), which manages the LEED rating system, has certified nearly 3.3 billion square feet of building space globally and continues to add 1.7 million square feet to that total each day. However, even the most sophisticated building experiences factors that affect performance over time, such as system degradation and design changes. Organizations may lose sight of ongoing sustainability and operating efficiency. As a result, performance can drift. For example, heating and cooling technology will naturally become less efficient due to the rigors of daily use. Improperly controlled or degrading equipment can account for 10 to 30 percent of energy used in commercial buildings per CABA’s Life Cycle Costing for Intelligent Buildings research. Additionally, building interiors are often redesigned as
10
business needs evolve and these changes can impact performance levels if not properly managed. A property management firm may adjust the layout of an office to accommodate tenants wanting a more open design. The new layout could require more or less heating or cooling, which can affect the HVAC system’s maintenance needs and energy efficiency. The way building occupants engage with the facility can also greatly impact the performance of a building. It’s important to reinforce sustainable practices such as powering down devices, shutting off lights even when occupancy sensors are installed, and proper recycling habits. Maintaining High Performance
Facility managers and owners need insight into a building’s operation and overall sustainability so the investment made to fine-tune performance at the outset is realized. The LEED Dynamic Plaque™ from USGBC is enabling facility managers, building owners and occupants to track current performance in LEED buildings on a near real-time basis. The LEED Dynamic Plaque displays an up-to-date LEED performance score that indicates how the building is performing in categories that impact LEED certification, including energy, water, waste, transportation and human experience. It consists of powerful back-end software that enables facility managers and staff to better manage building data and view global benchmarking information, and a front-end digital display with a simple and beautiful design. The LEED Dynamic Plaque works best placed in a prominent space, such as a lobby, where its animated display allows tenants, visitors and employees to quickly evaluate and understand current performance, encouraging them to continue to interact with the facility and surrounding space in a responsible manner. Integrating this tool with a building management system can enable continual tracking of utilities and indoor
CABA iHomes and Buildings Winter 2014
RESEARCH VIEWPOINTS
air quality. Honeywell and USGBC recently announced a collaborative effort to enable the company’s Enterprise Buildings Integrator (EBI) to feed trend data to the LEED Dynamic Plaque — as often as every 15 minutes. This window into operations can help facility personnel identify dips in performance, quickly pinpoint the cause and make plans to rectify any issues. For instance, the LEED Dynamic Plaque can draw attention to a spike in water consumption over a given month, helping uncover faulty plumbing equipment. Alternatively, facility managers may work with tenants to create a communications plan to highlight the importance of conserving water. And the dynamic view helps occupants connect their behaviors to a building’s score. Currently, the USGBC headquarters in Washington, D.C. and DPR Construction’s newly built office in San Francisco have the LEED Dynamic Plaque integrated with EBI and Honeywell’s cloud-based monitoring technology. So far, the system has helped USGBC verify and maintain its building’s LEED Platinum status and is aiding DPR Construction in achieving net-zero status. Tools that show real-time building performance may seem like a simple concept but the impact on an organization can be immense, helping assure a building is meeting
CABA iHomes and Buildings Winter 2014
its lofty performance expectations. Sustainability and LEED certification are not just one-time commitments, but are ongoing and require daily participation from building owners, employees and guests. These displays can provide immediate information for a facility manager to act on and serve as an important reminder to occupants that they play a critical role in helping improve their environment — both in the building and far beyond. For more information on the LEED Dynamic Plaque, go to www.leedon.io. And for additional detail on how Honeywell systems connect to the plaque, go to http://hwll. co/leed.
•
Debra Gondeck-Becker is Americas Construction Industry Leader at Honeywell Building Solutions and a CABA Board member. Gondeck-Becker is also Vice-Chair of the CABA Intelligent & Integrated Buildings Council.
11
LARGE BUILDING AUTOMATION Energy Efficiency and Building Automation Omar Talpur explains the centrality of data to increasing energy efficiency in intelligent buildings. One of the main issues of the 21st century is how countries will be able to cut carbon emissions and move toward sources of renewable energy. Since the output of energy from renewable sources remains much lower than that of traditional oil, gas and coal, adjustments must be made to reduce consumption. One way to reduce consumption is to make buildings more energy efficient. To avoid higher energy costs due to increased taxes, building owners have begun looking at building automation systems to regulate one of the largest consumers of energy: heating, ventilation and air conditioning (HVAC) units. Why is automating HVAC systems important? The need to regulate HVAC units has become more apparent with each passing year. For example, in 2012, the United States used more energy for air conditioning than all the other countries in the world combined. This is an enormous amount of power and there are many factors which are only going to further contribute to the use of air conditioning in the United States and elsewhere around the world. For example, over the past 70 years in the United States, in concurrence with the invention of air conditioning, there has been a shift in where people live. In 1961, 54 percent of the U.S. population was found in the Northeast and Midwest. This has dwindled to 39 percent in 2010 and the trend has continued to accelerate over the past few years. With the population moving to warmer regions, increasing the need for air conditioning during the much warmer summer months. Outside of the U.S., in developing countries like India, China and Brazil, the main reason air conditioning isn’t used is because of poverty. As populations become wealthier, it is assumed that they will try to emulate the climate control
12
needs of developed nations. This will only further increase the amount of energy needed. In Europe, due to climate change and the desire to curtail carbon emissions, many governments have increased taxes related to energy usage which has forced buildings to continually find better ways to manage consumption. How does building automation make for more energy efficient buildings?
Building automation systems work by taking a variety of different measurement, set points and programs and using them to maintain a comfortable environment. These different data points are central to a building automation system because they allow the system to maintain a certain climate while minimizing waste. One way this is achieved is by strategically placing sensors throughout a building. In this way, a building automation system works much differently than a thermostat which adjusts comfort in a room based solely on temperature. While temperature remains a crucial part in building automation, systems are using more advanced sensors to measure humidity and air quality as well as light, occupancy and motion, to gain a more complete picture of a buildings’ climate. One sensor which is becoming more common is the carbon dioxide monitor, which is a type of air quality sensor which measures the concentration of CO2 in a room. Since each human breathes out roughly the same amount of CO2, the measurement can be used to determine if air quality in the room is uncomfortable or unhealthy. One of the effects of high CO2 concentrations is that it can make people feel drowsy which can affect productivity in an office building. Currently, many ventilation systems do
CABA iHomes and Buildings Winter 2014
LARGE BUILDING AUTOMATION
not perform effectively as they may run only when the AC kicks on, at certain times or even all day long. By adding CO2 sensing capability as part of a building automation system, the system can be programmed to run only when CO2 concentration reaches a certain level. In addition to the high energy consumption of ventilation systems and AC, waste can also be attributed to light fixtures. There has been a movement to integrate lighting with HVAC controls through the use of sensors, such as light, occupancy and motion sensors. Monitoring the use of lights in vacant areas can greatly reduce the amount of energy consumed. Regionally, IHS believes lighting control to be more prevalent in Western Europe than North America. This is believed to be the result of higher energy costs, which means buildings in Western Europe have more incentive to automate lighting. An interesting trend with light, occupancy and motion is that some installations have begun using CO2 sensors to regulate lighting. For example, presence measurement can be associated with the amount of CO2 in a room; and turning lights off and on, based on occupancy. How are building automation systems improving on energy efficiency?
Perhaps the most important item for a building automation system is information. With the right information, building automation integrators are able to design robust systems. The more information an integrator can use, the more robust and unique the system integrator can make the building automation system. One example of how information can be used to make a system more efficient is how energy prices can affect when a system runs. In most places around the world, the price of electricity fluctuates based on what time of the day it is. Price of energy is usually higher in the afternoon when the outside temperature is at its hottest than in the middle of the night when temperature is at its coolest. Currently, integrators are interested in developing ways to read energy prices and use it to run the systems during better hours. Currently, there are systems which are programmed with a general bell curve on how energy prices fluctuate, but more precise data could make the systems more efficient. This is especially the case in Europe where more energy is now produced by wind farms and other renewable sources. One problem with wind sourced energy is it can come in gusts
CABA iHomes and Buildings Winter 2014
and the energy created cannot be stored very efficiently so it has to be given away. If building automation systems could learn about cheaper, or even free energy, they could use the energy to cool a building down to a lower than normal temperature and then allow the temperature to coast up over a given time frame. This would save the building money and also make sure that energy would not be going to waste. Furthermore, companies have been able to use data gathered from sensors and other sources to make buildings more efficient. The MGM Grand Casino in Macau is a prime example of poor commissioning and how data analysis can promote efficiency. Despite only being three years old at the time in February 2009, the energy costs surpassed $1.3 million each month. A team was then sent to investigate the issue and over an 11 month period managed to save $3.1 million in energy costs through meticulous commissioning. A more well-known use case is the Microsoft campus in Redmond, Washington. The 500-acre, 125 building campus developed over the past several decades. Over time, different building systems from various manufacturers have been used. In 2009, Microsoft began to unify the disparate systems by developing software which was used to string together building sensors spread across the company’s campus. These sensors, which track the HVAC system as well as other items like fans and lights, allows the facility management team to collect billions of data points per week. This data has allowed them to spot and correct inefficiencies in their buildings which let them cut down the amount of energy used. The hope at Microsoft is that smart buildings will be a stepping stone to smart cities. What is the future of building automation?
As countries, companies and individuals try to curtail CO2 emissions and further reduce the consumption of energy, building automation systems continue to increase in importance. While the overall products in the building automation industry, such as controllers and sensors, are not expected to change much in the coming years, this does not mean the value of these products will remain static. As integrators find new ways to analyze the data available to them and add supplementary data sources, building automation systems will become even more robust and make energy usage more efficient.
•
Omar Talpur is an Analyst for Security & Building Technologies at IHS Inc. 13
KEN WACKS’ PERSPECTIVES
Market Growth with APIs By Ken Wacks
The phenomenal growth of the personal computer and smart phone industries has been fueled by applications. Most applications (“apps�) have been developed by third-party companies who had no role in building the hardware or operating systems. Traditionally, companies such as makers of consumer electronics sell a self-contained closed package that includes the electronics, firmware, and user interface for autonomous operation. The idea of providing access to outside developers for add-ons was considered a threat to product integrity and a likely dilution of the potential market for the product. Social media have shown that customers can get passionate about good products and can offer constructive suggestions for enhancements. The apps business is now benefiting customers, making some developers wealthy, and helping product makers to sustain a market and enthusiasm for the product. For apps to work the product designer must provide hooks into the product so the apps developer can observe the operating state, access users inputs from keys, touchscreens, or voice prompts, and control the device. Access for observing and controlling the internal functions of the device electronically must be carefully managed and limited in order to preserve stable operation of the device. To accomplish this goal of constrained access, designers create Application Programming Interfaces (APIs). The Origin of APIs
APIs originated with computer operating systems to provide a consistent interface for developers of application programs. Using APIs, application programmers could write generic code that accessed computer features without directly querying or controlling the hardware, such as the keyboard. Such low-level access would require code specific to the hardware, which usually varies from machine-to-machine
14
and might interfere with the operating system. With APIs the operating system is responsible for managing the interface to the computer hardware. APIs allow a company to extend the capabilities of a product by encouraging third-party developers to enhance the product. For these third-party developers to invest in application development they need the prospects of revenues without costly technical complexity. APIs have been very much tied to specific operating systems such as Windows, Apple, and Android. The industry is considering standardized APIs. I have been chairing an international standards committee where we are committed to growing the market for home systems through standardized interfaces. We operate as a voluntary collaboration among experts from member nations under the aegis of ISO/IEC. IEC (International Electrotechnical Commission) does electric standards; ISO (International Organization for Standardization) covers most other technologies; ISO and the IEC collaborate on information technology or IT. The missions of ISO and the IEC are to promote international trade with the goal of lowering costs through competition. I will describe the benefits of APIs for consumer electronics, including products for home systems, and propose where we can make APIs more cost-effective with standards. APIs to Extend Products We start with a base-level product developed by a manufacturer. An example base-level product shown in Figure 1 is launched with three functions supplied by the developer. Since most consumer electronics include a programmable processor, it is possible to add functions to the existing product. The developer may not have the resources or time to create a large library of applications so may encourage outside companies to help with apps. The developer decides
CABA iHomes and Buildings Winter 2014
KEN WACKS’ PERSPECTIVES
Base Product from Manufacturer
• Function 1 • Function 2 • Function 3
Figure 1 – Base-level Product Developed by a Manufacturer
what aspects of the product outsiders may access through an API. These other companies are encouraged to develop and to sell additional functions that enhance the base product. An API provides limited information about the product without publishing the complete product specification. In programming terminology, APIs are like procedure calls versus open-source code where the entire machine is exposed. APIs offer business benefits by encouraging the addition of production functionality, as illustrated Figure 2 where the supported functions have been expanded from three to seven. APIs can enhance the product user interface, add new logical functions, and can offer new data processing. The
Home System Standards Home Electronic System (HES) is the name of a standards committee of ISO/IEC that I chair. About 90 countries can vote on our standards. Our goal is to lower costs for product manufacturers and to create a worldwide market for home and building automation systems. Initially we sought a uniform command set and a single interface that was network-independent. Because of market pressures, we are now focusing on a gateway to interconnect dissimilar networks and on interoperability among applications designed for these networks. Standards for product interoperability make it possible for devices from different companies to work together. These products support a diversity of applications such as entertainment, lighting, networked appliances, and energy management.
API
Base Product from Manufacturer
base product developer expands the market for the product and extends the product life by encouraging cooperation from other companies. These outside companies can profit from supporting a common product. They might complement the developer of the base product with unique engineering skills and access to content, to distribution channels, and to methods for product promotion. That is why the developer is creating what I call a “virtual company” that extends their engineering and marketing to companies that might otherwise be competitors.
Company B Function 4 Company C Function 5
• Function 1
• Function 4
• Function 2
• Function 5
• Function 3
• Function 6 • Function 7
Company D Function 6 Company E Function 7
Figure 1 – Additional Functions Offered on the Base-level Product with APIs
CABA iHomes and Buildings Winter 2014
15
KEN WACKS’ PERSPECTIVES
ISO/IEC 18012
N...Network Node IWF...Interworking Function
7 Translators / Node
IWF
1 IWF Translator / Node
Figure 3 – A Standard for Interoperability
Options for Product Interoperability We identified two fundamentally divergent methods for achieving interoperability among systems designed for different communication protocols with different message sets. As shown in Figure 3, each node may be on a separate incompatible communications network. On the left a message translation between each pair of nodes is required for interoperation. So each node needs to understand different message sets from seven other nodes. On the right each message is translated to a single common message set we call the Interworking Function for interoperation. This concept is now embodied in a series of international standards approved by the member nations and published by ISO/IEC in Geneva, Switzerland. These standards are designated ISO/IEC 18012, Guidelines for Product Interoperability and are available in North America from the American National Standards Institute (ANSI) at http:// webstore.ansi.org and from Standards Council of Canada (SCC) at http://www.standardsstore.ca. These standards, based on a proposal from IBM, specify a common method to classify and to describe key functions using XML schema. Each product maker complying with this standard programs their devices, using the Interworking Function message set. They may also include a proprietary message set if they wish to exchange private information among their own products. The interoperability standards have direct applicability to APIs. The Interworking Function could be the basis for a standard API incorporated into products.
16
Simplifying APIs with Standards A standards-based approach for APIs can benefit companies in the apps business. These companies have identified business opportunities for developing clever applications that can be installed in a variety of products. However, as illustrated in Figure 4, each target product requires a custom API. This is because products are designed using a variety of operating systems, communication protocols, and interfaces.
Product 1 API 1 Encoder Product 2 Application Developer Function
API 2 Encoder
API n Encoder Product n
Figure 4 – Custom APIs for Each Targeted Product
CABA iHomes and Buildings Winter 2014
KEN WACKS’ PERSPECTIVES
Benefits of APIs for Home System Products APIs can expand business for consumer electronics companies, developers of home system products, and for API add-on developers. All can benefit by adopting standard APIs. The manufacturer and the third-party developers become invested in the product success by maintaining customer attention with new features. Ultimately this can keep customers focused on the product, extend the product life, and expand the brand and the market.
Product 1
Product 2 API-IWF
Application Developer Function
•
Product n
IWF...Interworking Function Figure 5 – Common API using the Interworking Function
The international standards we developed for interoperability can be applied to achieve standard APIs. We can use the concept of an Interworking Function to create a common API as shown in Figure 5.
100%
65% 88%
73%
55%
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.
CABA has completed an in-depth analysis of the growing North American market for integrated and converged intelligent building control systems.
42% CABA and the following CABA members funded this research project:
CABA and the following CABA members funded this research project: ®
®
NETWORKING & EVENTS Over the past 25 years, CABA has brought together industry and thought leaders at numerous workshops and events.
Greg Walker, CABA Research Director, attended both the Guangzhou International Lighting Exhibition (GILE) and Guangzhou Electrical Building Technology (GEBT) conference in June 2014, where he presented market research on intelligent building technologies.
18
CABA iHomes and Buildings Winter 2014
OPINION
How Do You Assess Real Estate Today? By James Carlini
This article is an excerpt from James Carlini’s new book LOCATION LOCATION CONNECTIVITY. The self-published book examines next-generation real estate, intelligent infrastructure and global platforms for commerce. The book is available for sale on Amazon.com at: http://amzn.to/11YVwPQ.
Today, you must look at real estate projects as a complex endeavor. It is not enough to understand real estate, you need to recognize it is converging with other large elements: infrastructure, technology (both communications and information systems architecture) and regional economic development. Incorporating and energizing every element is important in insuring success of the project and providing a facility that can support 21st century business. Each element’s specific attributes will determine the shape and outcome of the project: Real Estate: What and where is the land that the project will be on? Is it the best use of the land? Are there any issues/ obstacles to be aware of? What government incentives are connected with the land parcel? Infrastructure: What is in-place/available/accessible to that piece of land? Access to transportation? Rail? Airports? Access to power and network communications access (broadband connectivity — both wired and wireless)? Also find out if anything is planned for the near and long-term future. Technology: What extra intelligent amenities have been added onto the infrastructure to make it more desirable? Redundant network carriers providing multi-gigabit connectivity? Redundant power suppliers? Wireless networks to hand high capacities of smartphones? Other cyber/connectivity intelligent amenities?
CABA iHomes and Buildings Winter 2014
Economic Development: How is this project being positioned within the region? How is it being packaged and promoted to prospective corporate tenants? How is it being funded in both its initial and operating phases? Who is selling its viability, not only for the region but for the people themselves? Elements
Attributes
Real estate
Land
Infrastructure
Improvements (within & surrounding the land)
Technology
Intelligent amenities
Economic development
Marketing / promotion / financing / packaging
Building Connectivity: Five Ways to Tell if Your Building is Obsolete
Some will argue about the dual connection to two separate telephone company central offices being necessary, but when you look at the growth in mission critical applications, you need to have this diverse connectivity to support the redundancy of the network. Today, one out of every three applications are considered mission critical with the amount growing to one out of every two application within several years — or less. My questions to the “experts” are: • If you engage mission critical applications in your organizations, how can you still be connected to the central office via one route? • How can you run the electronics from only one power source? (Forget battery back-up for a couple of hours, the design concept should be “business continuity” not “disaster recovery”) You need to implement separate and
19
OPINION
Here is a quick checklist to assess a building’s network infrastructure: What to check
What you may find
What it should be
Connectivity to the central office (connection)
A single connection to a single central office
Two separate connections to two separate central offices
Connectivity to the central office (Type of transmission media used)
Copper
Fiber optic
Wireless capability (Any Wi-Fi or DAS?)
Standard network carrier coverage.
Multiple network carrier coverage. (Plus – capacity, not just coverage)
Cabling
A single central office connection with a small amount of spare capacity in it as well as the vertical riser system (or maybe no spares).
It should have spare capacity both to the central office as well as the vertical riser system and be able to handle gigabit speeds.
Firestopping
Many penetrations where cable is pulled through the floor or wall that is NOT fire stopped (covered with flame retardant material to stop smoke from spreading across the building).
All penetrations between walls and floors should be fire stopped with materials made for that purpose. It is more a life/safety issue than a connectivity issue, but you should be aware of it.
diverse power sources along with separate and diverse routes into the network infrastructure if you are going to support mission critical applications. Anything less, is unacceptable. • What about your applications running on your enterprise network? • Are you getting the speeds you need to compete in the 21st century? Or, are you stuck with 20th century connectivity because no one knows how to upgrade the building’s network infrastructure? Or does no one want to make an investment to upgrade the existing infrastructure because it is an investment? • How receptive is your building to all the new connectivity technology exploding onto the market? This is a question becoming more common to those trying to make sure they lease the right space for their organizations. • Do you have your smartphone with you? Does it work well in your building? Can you download streaming videos and get a good video, or is the picture choppy? If not, most will opt out and check out another property. This is happening today.
more than just which one has the nicer lobby or the faster elevators. Buildings which do not support access to broadband connectivity or redundant power sources are becoming technologically obsolete. If you don’t have separate connections to the central office, your network is your single point-of-failure within your enterprise application. The same applies to power. Having two separate sources for these intelligent amenities makes a building more attuned to what is needed today and tomorrow. Otherwise, how can it be considered to be able to support “mission critical” applications? A single connection to the building from a single central office was the approach for over a century. It was literally since we had stagecoaches, but we are beyond that if we concerned with supporting mission critical applications. Horse-and-buggy rules-of-thumb for communications cannot be applied in 21st century applications.
•
James Carlini is President of Carlini & Associates. Carlini can be contacted at 773.370.1888 or james.carlini@sbcglobal.net.
These are some of the questions you must answer when you begin to assess the intelligent amenities available within an existing building. Comparing buildings is becoming
20
CABA iHomes and Buildings Winter 2014
UPCOMING EVENTS Need information on upcoming industry events? Go to: www.caba.org/events
CONNECTIONS Summit January 6, 2015
IWCE (International Wireless Communications Expo)
Las Vegas, NV
March 16-20, 2015
www.parksassociates.com/events/connections-summit
Las Vegas, NV www.iwceexpo.com/iwce2015
CES International 2015 January 6-9, 2015
2015 Building Energy Summit
Las Vegas, NV
March 25, 2015
www.cesweb.org
Washington, DC 2015.buildingenergysummit.com
2015 Compass Intelligence Awards January 7, 2015
CABA Intelligent Buildings & Digital Home Forum
Las Vegas, NV
April 14-16, 2015
www.compassintelligence.com/?q=CI-Awards
Austin, TX www.caba.org/caba-forum-2015
SmartBuilding Conference@ISE February 9, 2015
Broadband Communities Summit
Amsterdam, Netherlands
April 14-16, 2015
www.smartbuildingconference.com/sbc2014
Austin, TX www.bbcmag.com/2015s
International Builders Show January 20-22, 2015
Lightfair International
Las Vegas, NV
May 3-7, 2015
buildersshow.com
New York, NY www.lightfair.com/lightfair
AHR EXPO 2015 January 26-28, 2015
Realcomm 2015
Chicago, IL
June 9-10, 2015
www.ahrexpo.com
San Antonio, TX www.realcomm.com
Smart Energy Summit February 16-18, 2015
IBCON 2015
Austin, TX
June 9-10, 2015
www.parksassociates.com/events/smart-energy-summit
San Antonio, TX www.realcomm.com/ibcon-2014
GANA Annual Conference March 5-8, 2015
Guangzhou International Lighting Exhibition
Las Vegas, NV
June 9-12, 2015
www.glasswebsite.com/events
Guangzhou, China bit.ly/1k1yPLJ
CABA iHomes and Buildings Winter 2014
21
The Continental Automated Buildings Association through its Intelligent & Integrated Buildings Council conducted a Landmark Research Project called the “Life Cycle Costing (LCC) of Intelligent Buildings”. 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. The study, completed November of 2013, has great relevance for CABA Members and for end- users in the Intelligent Buildings industry – by broadening our understanding of the benefits and viability of using LCC as an effective costing method. LCC 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. For a complimentary copy of this report, email: CABA@CABA.org
Highlights of the report 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; • recommendations for moving forward and fostering improved collaboration among industry partners; and • a wide cross-section of case studies as illustrations of best practices.
For more information and pricing contact: Bill Saunders, CABA’s Business Development Manager at: 613.686.1814 x229 or saunders@caba.org Your Information Source For Home & Building Automation www.CABA.org