The Rise and Benefits of Smart Buildings
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1 The Rise and Benefits of Smart Buildings
2 Table of Contents Today s core enterprise real estate concerns How smart buildings solve these core dilemmas Case study: 18 York Why you need FlexITy to turn your building into a smart building WHITE PAPER PAGE 2
3 Thanks in part to technology such as cloud computing and mobile devices, the central office is no longer the enterprise hub of communications and connectivity that it once was. Increasingly, some firms see trends like teleworking as being able to dramatically lower office maintenance bills and rent, and are even beginning to abandon the premise of having a company headquarters. However, such an approach is short sighted. It s not that the idea of a central office is becoming outdated, but rather that current models dictating what companies can expect from a structure are insufficient for handling today s global enterprise demands. Businesses do not need a static office that only provides a roof and four walls - the physical infrastructure must be able to facilitate mission-critical tasks and move the company forward. As a result, smart buildings have become the go-to option for savvy corporations looking to gain a competitive advantage. Increasingly, some firms see trends like teleworking as being able to dramatically lower office maintenance bills and rent. Unlike standard office space, smart buildings converge and digitize infrastructure. Instead of using legacy networks and outdated technology to separately manage everything from Internet connectivity and video conferencing equipment to air conditioning and lighting, smart buildings combine these systems into one unified solution. This way, companies can more intelligently control all variables that affect employee workflows, transforming the central office from an empty shell into a value-added proposition that boosts profit margins today and well into the future. WHITE PAPER PAGE 3
4 Today s core enterprise real estate concerns When companies begin the process of looking into commercial real estate space, the first consideration likely relates to cost. Although the global economy has shown signs of recovery, current conditions still dictate that businesses remain conservative and vigilant about investments. This is especially the case with real estate, since this can be one of the most significant non-annual expenditures a company makes. With office space prices in Toronto and other major Canadian cities on the rise, some firms may find it more cost effective to have all employees use the cloud and work from home instead of spending money that could be used elsewhere in the budget. This extends beyond the procurement phase as well, since office space can quickly deplete revenue, even in some unexpected ways. For starters, infrastructure maintenance costs can quickly skyrocket if left unchecked. Corporations that operate larger office spaces can easily spend thousands of dollars keeping the space at an ideal temperature year round and supplying employees with the requisite amount of electricity, as buildings use approximately 50 percent of all of the electricity in the world. In addition, utilizing outdated infrastructure can lead to a number of unintended financial consequences. For example, communication and collaboration has always been key to ensuring profitability. While in the past telephones were the primary technology used to facilitate these endeavors, today that role is increasingly being filled by cloud-hosted unified communication and collaboration solutions. As such, companies need to make sure they can sufficiently support the tools they want to use. In outdated buildings, corporations may find that they lack the resources needed to effectively utilize these solutions, thus leading to narrowing profit margins and diminishing competitiveness down the road. Using too much energy to keep an old office space running can also hurt a brand s public perception. Over the past few decades, consumers have become savvier about the environment and corporate responsibility. These customers vote with their wallets, more frequently choosing to support and partner with firms seen as advancing similar causes. Companies that use exorbitant amounts of electricity to keep aging spaces going may likely earn the ire of this audience. After all, buildings will likely be the largest source of greenhouse gas emissions by WHITE PAPER PAGE 4
5 How smart buildings solve these core dilemmas While many of these problems may seem insurmountable, all of them are resolved in smart buildings. For instance, even though a smart building will not eliminate all of the upfront costs involved in procuring new commercial real estate, the technology helps companies realize a much higher return on investment. For example, smart building infrastructure can facilitate the use of value-added tools like telepresence and advanced conferencing. Voice, UC and data services can significantly boost business productivity, but the right infrastructure and network needs to be in place first to facilitate these endeavors. Smart buildings have features like designated conferencing rooms to make sure businesses are as productive and effective as possible in the space. Smart building systems also help companies dramatically reduce their annual energy expenditure while also bolstering the organization s green image to consumers. By integrating the controls of everything from HVAC and lighting to blinds and access control, businesses are able to make sure that electricity is not wasted, thus making the building significantly greener. As technology becomes more crucial to business success, smart buildings provide companies with the cost-effective infrastructure and solutions they need to be competitive now and remain so for years into the future. WHITE PAPER PAGE 5
6 Case study: 18 York 18 York makes it easier for end users to utilize tools like unified communication and collaboration solutions, one notable tenant was able to increase their amount of collaborative meeting space by 65 percent. A 26-story office building located in southwest Toronto, 18 York is one of the most environmentally friendly high rises in the city, and is a prime example of the type of benefits businesses can expect to realize when occupying a smart building. The LEED-certified structure, transformed into a smart building with technology innovations thanks in part to contributions by FlexITy and Cisco, helps tenants succeed because of a number of notable features: The structure s building automation system (BAS) allows facilities managers to use a Cisco-integrated IP headset to control everything from lighting and blinds to audio/ visual equipment. Computer-controlled automated window roller shading system anticipates when adjacent buildings will shade 18 York and adjust window covering settings accordingly to maximize available sunlight. This reduces the amount of energy used to power light sources and cool rooms. The system also provides reporting features, enabling tenants to look at how they re using resources and determine ways to better allocate them. Data collected throughout the building is now funneled into one central IP network that intelligently delivers data, voice and video communications. A central management system provides data and oversight over all of the systems in the building, including ventilation, heating and cooling. This way, facility maintenance teams can more easily conduct preventative maintenance and address problems before they affect tenants. Because the smart system inside 18 York makes it easier for end users to utilize tools like unified communication and collaboration solutions, one notable tenant was able to increase their amount of collaborative meeting space by 65 percent. WHITE PAPER PAGE 6
7 Why you need FlexITy to turn your building into a smart building Companies have a number of key problems they have to face regarding their building space, and smart buildings address these core concerns. However, installing the necessary hardware and infrastructure to turn a building into a smart building is no easy task. To make the transformation, turn to FlexITy, as they can offer best-in-breed technology and expert know-how to make sure the smart IT solutions put in place are perfectly suited to meet your business needs. SOURCES cisco.com/web/strategy/smart_connected_communities.html pwc.com/ca/en/office-location/18-york.jhtml kpmb.com/index.asp?navid=30&fid1=0&fid2=89#pub triplepundit.com/2013/02/smart-building/ canadablog.cisco.com/2013/02/12/win-win-situation-for-smart-buildings/ newsroom.cisco.com/press-release-content?type=webcontent&articleid= WHITE PAPER PAGE 7
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