IBM Smarter Buildings: Buildings As Power Plants

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IBM Smarter Buildings: Buildings as Power Plants03 DEC 2013NCSL ENERGY SUPPLY TASK FORCEJoe Phillipsjoe.phillips@us.ibm.comDirector, Smarter Buildings / Smarter Cities1IBM Confidential 2013 IBM Corporation

IBM Smarter Buildings: Buildings as Power Plants03 DEC 2013NCSL ENERGY SUPPLY TASK FORCEJoe Phillipsjoe.phillips@us.ibm.comDirector, Smarter Buildings / Smarter Cities2IBM Confidential 2013 IBM Corporation

Enable and Accelerate Application of Information to Decisions INSTRUMENTED INTERCONNECTEDBillions ofSignals aYear INTELLIGENTSMARTERMeaningfulActionsfrom BigData & DeepDataAnalyticsLower CostHigher EfficiencyMore ProductiveLonger LifeHigherPerformanceOpen DataArchitectureIntegrateExternalSources3IBM Confidential 2013 IBM Corporation

Why is IBM Smarter Analytics unparalleled in the industry?Broad and integrated portfolio of information and analytics capabilities Largest investment in analytics software and solutions with over 16B in acquisitions since 2005Enterprise Class Big Data Platform as part of a comprehensive Information Management FoundationAnalytic Capabilities that scale from personal to enterprise to next generation systems that reason and learnDecision management solutions that embed predictive analytics into business processesProven experience accelerating time-to-value and delivering breakaway results Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe Proven solutions & use cases across industries and functions, from 1000’s of client engagements Thought leadership and practical insights from the IBM Institute for Business Value Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started World’s number 1 IT captive financier. (IBM Global Financing)Comprehensive delivery options to compliment capabilities and lower TCOBroad range of implementation models, including: System Integration, Consultancy, Transformation Application Management Services Appliance, Hardware, Cloud, MobileAdvanced technology and expertise applying innovation to real world problems4 First-of-its-kind breakthrough innovations, including IBM Watson World’s largest math department in private industry since 1960 Nearly 600 analytics patents per year and first in patent ranking 2012 IBM Corporation

Citizens are placing increasing demands on leadersEvolution of DeliverBuildings,RoadsWater,EnergyFor the first time in human history the majority of the world’s populationlives in urban areas.WorldBank.org3 billion people – half theworld’s population – live in cities5Almost 180,000 peoplemove into cities each dayTwo-thirds of all peoplewill live in cities by 2050 2012 IBM Corporation

Smarter Cities solution portfolio is expansivePrioritized IndustriesPublic rSolutionsPlanning and ManagementInfrastructureHuman Operations insight Transportation management Social program management Law enforcement andpublic safety Water management Citizen health and safety Utility Network management Educational outcomes Building management Asset ManagementIndustry Partner SolutionsSmarter City OperationsConsulting and Services, Advanced Research, Workload Optimized Systems and Flexible Delivery Models6 2012 IBM Corporation

Real results are being achievedCity ofDubuquereal-time monitoringpilot achievesdecrease inwater consumptionover 9-week period6.6%MetropolitanPolice (UK) utilizedsocial network analysisto dismantle anorganized crime group,making over 140arrests with 70%conviction rateSingapore LandTransport Authoritycan forecast trafficconditionsup to 60 minutesinto the future to helppreventtraffic congestionRio de Janeiro,automated alerts ofchanges in flood andlandslide forecast toreduce reaction times inemergenciesAnalyzing data toperform proactivemaintenance,DC Water &Sewer Authorityachieves ROI ofin 2 months629%Las VegasMetro Police turnedto IBM for help inimproving public safetythrough analyzing datato recognize patternsPatterns for Leveraging Information, Anticipating Problems, Coordinating Resources7 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetHow Can Buildings Connect & Operate More Effectively & Efficiently?The challenge is getting the right information to the right people at the right timeEnergyPortfolioWaterReal Estate MgmtSmart Meters,Use / Flow SensingAsset MgmtTenant ServicesHelp DeskWaste MgmtFacilities Management BusinessSpace MgmtFunctionalitychecks,Detector serviceEnvironmental reportsUser SpecificHealth, Logistics, etc.HVACFans, Variable AirVolume, Air QualityPublic SafetyCommunications,Alerts, ActionsOccupants & eComplianceWeatherCurrent, PrecisePredictionsSensors, HVACAutomationDemand MgmtOccupancyFacadeActive andPassiveExternalitiesAir QualityEnergy Lifecycle OperationsBuilding ServicesSmart Meters,Generators,Demand Response24/7 MonitoringOccupancySensingBadge in,Cameras, IntegrationPerimeter, Doors,Floors, OccupancyUtilitiesDemand Mgmt,Cost Control,Grid , EventsCommercialPotentialCondition Monitoring,Parking Lot UtilizationAdvertisementBuilding SystemsBuilding & Communications Services 2012 IBM Corporation

Evolution of ‘Green’ to Financially Beneficial ModelThe Challenge: Transparency, Accessibility, and Relevancyto Varied Stakeholders in Real Time Evolution of Better Information Drives New Actions Practices Comparative Ratings Metered & Verified Performance Action Based on Analytics and Transparency ASHRAE 90.1, 170, etc. Life Cycle Cost / Total Cost of Ownership ENERGY STAR Portfolio Manager EO 13327, 13423, 13514 ‘ if cost effective’9IBM Confidential 2013 IBM Corporation

Smarter Buildings on a Smarter PlanetIntegrated Buildings – Emerging Course of the IndustryThe Convergence of IT, Building Management and the EnterpriseITIntegration Interconnected Portfolio &Challenge Captive Customer ModelConvergenceBM 2012 IBM Corporation

IBM Optimizes Enterprise Controls From Real Asset InformationIntegrated CMMS toOptimize O&M Procedures Prioritize and initiatecorrective actions Monetize energy & laborsavings Automated Work Ordertracking ONSO&M Process andOperational RulesSustainable Enterprise Management Optimize real asset’s support of enterprise mission Harvest valuable BI from facilities data warehouse New controls from correlated enterprise activities Asset class performance evaluationsBig Data EDWAREHOUSEREPORTING& ANALYTICSCOLLECTBUILDINGALERTSExisting Engineering& Physical Device IT Connect building assets Targeted data points Automated fault reportingAggregation of Sub System Data11Wrap Around aState of the ArtGraphic UserInterface & UserExperienceIBM ConfidentialDIFFERENTIATED IBM CUSTOMER VALUEIBM Connects ProprietarySystems, AggregatesUnprecedented Volume,Velocity and Variety ofData, and AppliesAnalytics to Deliver NetNew Value from RealEstate and Facilities DataIntelligent:Apply business intelligenceoperations to enterprise datawarehouse, formingunprecedented correlatedsustainability information andcontrols.Interconnected:Enables prioritized,monetized actions for workflow and processmanagement resulting inreduce energy and laborcosts.Instrumented:Automap connections acrossproprietary data sources.Analytics from comprehensiveevent correlation yields missedsavings from undetectedwaste. 2013 IBM Corporation

Case Study: General Service Administration - Building AnalyticsChallenge Reduce energy and mechanical operations costs Refine building operations to meet President Obama’s mandate to makebuildings 30% more energy efficient by 2015 General Service Administration manages 354 million square feet of real estate in8,603 buildings – given this scale, the savings opportunity is high (as is the costof inaction)Solution - GSAlink A building analytics system designed, built, and operated by IBM GlobalBusiness Services (GBS) and comprised of: IBM TRIRIGA Skyfoundry SkySpark Tridium Niagara GSAlink is integrated with GSA’s BASs, GSA’s smart meter system, the GSAbusiness intelligence system, and a GSA Region’s CMMSIndustry: GovernmentProfile: GSA is the government’s landlord,providing office and other workspaceservices for the federal government.GSA helps federal agencies build andacquire office space, products, andservices by contracting with federaland commercial sources.Featured Products & Services: IBMGlobal Business Services, IBMTRIRIGA, Skyfoundry SkySpark,Tridium NiagaraCustomer Value GSAlink collects and analyzes building sensor data to gain intelligence andprovide insights that were previously unavailable, enabling buildingmanagement teams to reduce energy consumption and optimize facilityoperations GSA is targeting annual energy and mechanical opex savings of 15 milliondollars by deploying the solution to 30M square feet of real estateStatus12 55 buildings ( 33M square feet of building space) are currently integrated andlive on GSAlink GSA is realizing substantial energy and mechanical opex savings by takingaction on the operating faults that GSAlink is detectingIBM Confidential 2013 IBM Corporation

Smarter Buildings on a Smarter PlanetIBM Energy Optimization Analytics and Feedback Loop:The Basis of Real Time Commissioning1. Condition MonitoringEnterpriseReporting2. Data Store- Near real time data capturefrom BMS- Sensors / feeds across domains- Asset level performance monitoring- Trending analysis- Data warehouse- Meta data and business rulesTargeted data acquisition5. Report Transparency- Enterprise & Operational Dashboard- Drilldown capability- Alert Summary- Work Order Management- Maintenance of optimizedposition (no back sliding)PhysicalSystemMeta-data model Contextualization InterrelationshipsRole Based AnalyticsHuman& VisibilitySystem4. Corrective Actions- Optimized base-line energy use- Maintenance and operations activity- Operational cost savings- Capital cost avoidance- Reduced energy use- Client . AnalyticsStatistics/Modelsfor Improvement- Alerting- Business Rule Trends- Computationalmodeling- Creation of insightsthat feed decisionsand actionsFeeds to other systems:Work Orders, Excel,Browser, Planning 2012 IBM Corporation

IBM Expands and Validates Monitoring Based Commissioning BaselineEnergy SpendEnergyUseTypical Industry Reductions 7-20% w/Physical and Periodic Service ECM’sBuilding SystemsEnvelopeUtility DistributionPeriodic Retro-Commissioning:Occasional re-tuning to recover fromsystem changes and errors over timeDrift after CommissioningGoalUnclaimed Energyand Labor SavingsNew Goal14TimeIBM ConfidentialAdditional 15 %Savings fromMonitoring-BasedCommissioning(MBCx) enabled byIBM Analytics andReal Time DataPersistenceMetering and TrendingContinual NewLearning of PreviouslyHidden ECMOpportunities PostCommissioningInitial PerformanceAssessment Lessons 2013 IBM Corporation

Smarter Buildings technology generates significant returns85% higher75% lower40% lessoccupancywork ordercostsenergyFacility utilizationincreased by up to85% with 210%higher annualsavings in Total Costof Occupancy.Cost of a single workorder reduced up to88% — a savings of62% from theindustry average.Energy usagereduced by upto 40% andmaintenancecosts by up to 46%.Aberdeen GroupAberdeen GroupWorld Business Council forSustainable Development; IBM 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetBuilding a Smarter Energy FutureNCSL ENERGY SUPPLY TASK FORCEJoe Phillipsjoe.phillips@us.ibm.comDirector, Smarter Buildings / Smarter Cities16 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetThe Evolution of the Energy Value ChainTRANSFORMEDENERGY VALUE CHAINTRADITIONALENERGY VALUE CHAINCoal/Natural GasSolarEnergy Natural GasHydroelectricSolarEnergy StorageNuclearWindSolarEnergy StoragePlug-in VehicleConsumerPower FlowPeriodic Information FlowContinuous Information FlowWindDrive transformation ofPolicy and Business models 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetOur customers are exposing us to their greatest challenges 2012 IBM Corporation

Transform the utility networkParticipatory networkTransform electric grid, gas, and waterinfrastructures from rigid, one-waysystems to dynamic, automated, andreliable information networksGain observabilityover the utilitynetwork, andautomate controlfunctionsEnable participation andinteraction between allparticipants in the utilitynetworkIntegrate and analyzeinformation, includingdata on real-timeconditions, and act oninsights to balancesupply with demandUse rules,constraints andintelligent agents tooptimize thenetworkContinuouslyorchestrate thenetwork and all itsparticipantsNetwork optimizationOne-way flowNetwork responsivenessParticipant integration and collaborationNetwork visibility and automationBasic FunctionalityAdvanced FunctionalityProgress/maturity over time 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetEnergy Grand Challenges @ IBM Research 2012 IBM Corporation

21Smarter Analytics for Energy and UtilitiesIndustry Imperative21Smarter Analytics OutcomeTransform CustomerOperations- Align organization and processes to deliver theright products and solutions to each customer- Enable more efficient customer sales andservice interactions- Minimize fraudImprove GenerationPerformance- Improve generation efficiency and reduceoperating expenses- Maximize power generation uptime throughpredictive maintenanceTransform the UtilityNetwork-Reduce outages and downtimeOptimize maintenance and operational activitiesTime of use pricing flexibilityComply with information privacy and retentionregulationsWhere We’ve Done ItReduced energyconsumption by ananticipated 20%; controlcosts using real timemonitoringDecreased productioncosts by 1-2% resultingin a savings of 50,000- 100,000 per dayReduced frequencyand duration of poweroutages 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetSmarter Energy Research – IBM Core Competencies 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetCentralized Decision making via Model-Driven Control Centers 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetSmarter Energy in Practice – Model-Driven optimization enablessubstantial electricity ( 20%) generated through renewable energy 2012 IBM Corporation

Smarter Buildings on a Smarter PlanetThe Utility of the Future : The Role of Data, Analytics, Modeling,Simulation, Optimization and Advanced Computing 2012 IBM Corporation

Q&A26IBM Confidential 2013 IBM Corporation

Why is IBM Smarter Analytics unparalleled in the industry? Broad and integrated portfolio of information and analytics capabilities Largest investment in analytics software and solutions with over 16B in acquisitions since 2005 Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation