Remote Management of People Flow Systems in Buildings

Remote Management of People Flow Systems in Buildings Olli-Pekka Varis Supervisor: Heikki Hämmäinen, Professor of Networking Business Instructor: M. Sc. (Statistics), Jukka Salmikuukka 1 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Agenda 1. 2. 3. 4. 5. • • 2 2/20/2021 Research Question, Scope, Methods Value Creation Trends Remote Management System Technical Trends Results Environment of Buildings Businesses in Finland People Flow Management Framework Techno-economic Model and Scenarios Action recommendations Thesis Seminar on Networking Technology / Olli-Pekka Varis

Study Background and Research Question • Traditionally most of the buildings systems have been passive mechanical equipment • Current market environment requires more intelligence from the products • Increasing importance of service business • Emergence of new information technologies • Research question: How to use information and communication technologies productively in changing business environment? 3 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Scope Residential apartment buildings and office buildings Systems that enable or control the movement of people in buildings 4 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Methods • Literature study • Technical data • Interviews • Finnish business environment • Constructive modeling • Stakeholder analysis • Scenarios • Techno-economic modeling 5 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Value Creation Trends – Smart Services Framework 6 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis Source: Allmendinger & Lombreglia 2005, Harward Business Review

Remote Management System • Managed Objects • Management Tools • Status, diagnostics, upgrade, control and automation, profiling and behavior tracking, replenishment and commerce, location mapping and logistics • Data Acquisition System • Sensors, communication links and monitors • In-Building Communication • NFC, RFID, Bluetooth, Ethernet, WLAN, Zig. Bee, … • Wide Area Communication • Wireless vs. wired communication • Information Security • Proprietary vs. open solutions 7 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Technology Trends • TCP/IP-based Wide-Area Control Networks • Centralized monitoring, aggregate load profiling, demand management and performance reports are easy to use compared to old management structures • Web-Accessible Control Systems • The buildings can be monitored from nearly any location, including Web -enabled cell phones and PDAs • Enterprise Data Interfaces • Can be used to further leverage the value of gathered data from the buildings systems 8 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Results 9 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Environment of Buildings Businesses in Finland • Facility management is a growing business in Finland • Currently low outsourcing ratio is changing fast • Most important trends: safety and individuality • Increased division of customers • Cost driven (facility management, government purchasing) • Value driven (individuality for living environment) • Office buildings drive the technology development and the provision of smart services • Residential buildings are usually low tech, but… • Special buildings and facility management use smart services • Remote management is emphasized 10 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

People Flow Management Framework Intelligent ICT-based solutions need a framework • People flow management is a clear entity for customers and endusers • Security and safety trends push system integration • Technology trends enable integration of separate solutions 11 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

PFM Scenarios 12 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Techno-economic Model of Remotely Managed People Flow Systems Switching costs Market Positioning Information services Optimization Customer retention rate Product quality Market share Contract price Platform provisioning Market size Number of contracts Revenues from adjacent services OPEX RM system investments Service and maintenance costs CAPEX Economic results 2/20/2021 RM system cost Integration services Regulatory effect 13 Number of PFS Competition level Thesis Seminar on Networking Technology / Olli-Pekka Varis Study period Discount rate RM architecture investments

Action Recommendations for PFS Providers • Remote management solutions should use open standards • Management over open TCP/IP platform Enabler for smart services and adjacent features • Proprietary platform provision through information security and separated communication channels • Biggest market potential • Wireless in-building communication when Ethernet not provided • Keep customer touch point • Web-based services for end-users and building owners • ERP information provision also for facility managers 14 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Thank you 15 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Appendices 16 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Buildings Businesses in Finland 17 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis

Scenario 1: Management Platform Driven Model Open Standards -based Building Network People Flow System X Building Automation (HVAC, lighting, etc. . ) Network Management Gateway Voice/Data/ Video Intersystem network 18 2/20/2021 Thesis Seminar on Networking Technology / Olli-Pekka Varis Public Network Remote Management Center

Scenario 2: Facility Management Driven Model Building Owner Provides a total facilities management service packet People Flow systems are monitored or controlled through service management gateway Facility Management Center Remote Management Gateway Buidings with different systems Building People Automatio People Flow Building People n (HVAC, People Flow System X Automatio People lighting, etc. . ) Flow Building Flow People System X n (HVAC, People Flow System X Automatio People System X lighting, etc. . ) Flow System X n (HVAC, People Flow System X lighting, etc. . ) Flow System X 19 2/20/2021 Service providers are responsible for upgrades and maintenance of people flow systems Thesis Seminar on Networking Technology / Olli-Pekka Varis Facility manager orders the services from maintenance subcontractors Service Provider

Scenario 3: System Driven Model People Flow System (with remote management connection) People Flow System X 20 2/20/2021 Public Network Common resource usage and integrated services People Flow System Z People Flow System Y Inter-system network Thesis Seminar on Networking Technology / Olli-Pekka Varis Remote Management Center Systems can use common resources remotely (e. g. databases and call centers)