ARM Holdings - Intelligent Buildings for More Productive People - Dec 2016

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    Copyright © 2016 ARM Limited. All rights reserved. The ARM logo is a registered trademark of ARM Ltd. All other trademarks are the property of their respective owners and are acknowledged Page 1 of 9 RJZ44QK4VMSH-2-12 Intelligent buildings: For smarter, healthier, more productive people December 2016    Copyright © 2016 ARM Limited. All rights reserved. The ARM logo is a registered trademark of ARM Ltd. All other trademarks are the property of their respective owners and are acknowledged Page 2 of 9 RJZ44QK4VMSH-2-12 Why buildings matter in the era of the Internet of Things ARM believes that by 2035 one trillion devices will be connected to the internet. We will find a large number of them in the next generation of high performing buildings. According to McKinsey i , half the opportunities for Internet of Things (IoT) vendors are expected to come from the built environment; from homes, buildings, factories and cities. More than 50 percent of the world’s seven billion people already live in cities ii . By 2050 close to ten billion people will inhabit our planet, two-thirds of whom will be urban dwellers. In order to support this rapid urbanization, buildings need to be smarter and more sustainable. Smart buildings will positively impact the health and productivity of these citizens while improving the environment and the economy. However, complex relationships between tenants, landlords, utility suppliers and service providers, who grapple with misaligned incentives, security concerns and complex technologies that deliver poor returns on investment, are hindering the adoption of smart technology in buildings. To inspire the trust and confidence of all the decision makers in this value chain, technology vendors must provide solutions that are low cost, low maintenance, easy-to-use and highly secure. Buildings, our workplace and our home Buildings are where people live, work, learn, meet, heal, entertain and shop. Americans spend 90 percent of their time indoors iii , and companies that employ them spend 90 percent of their building’s total operating costs on people-related expenses iv . Property management firm Jones Lang LaSalle posits a 3-30-300 thumb rule which states that for every $3 per square foot organizations spend on energy, they spend $30 on rent and $300 on their employees’ salaries and benefits v . Addressing the needs of buildings’ occupants is the highest priority for smart building technologies. A recent study by Harvard’s T.H. Chan School of Public Health and United Technologies found that cognitive functions improved with better indoor environmental quality and ventilation vi . These included a 50 percent increase in focus, doubling in crisis response, and a tripling in information usage and strategic thinking scores. A follow-up study found positive impacts on sleep and wellness. Moreover, while the incremental costs of improved ventilation were a mere $40/employee/year, the benefits from increased worker productivity topped $6,500/employee/year. vii  The Internet of Things will help companies enhance the health, comfort, wellbeing and security of occupants, and boost profits through productivity and efficiency gains. Buildings, our weapon against climate change Any conversation about mitigating climate change must start with buildings. The fastest-growing demand for energy comes from commercial buildings and infrastructure viii . In the US, buildings contribute nearly 40 percent of energy use and carbon emissions, and over 60 percent of non-industrial waste and electricity consumption ix . Energy efficiency improvements reduce buildings’ carbon emissions, cut energy and maintenance related operating expenditures, and defer costly capital expenditures. Green buildings could also    Copyright © 2016 ARM Limited. All rights reserved. The ARM logo is a registered trademark of ARM Ltd. All other trademarks are the property of their respective owners and are acknowledged Page 3 of 9 RJZ44QK4VMSH-2-12 reduce absenteeism and tardiness, increase ‘presentism’, and lead to better talent retention and attraction x . The Internet of Things will allow building engineers and facility managers implement cost effective energy efficiency improvements that will reduce the corporate carbon footprint and reduce expenses, while improving employee morale. Buildings, the growth engines of our economy Buildings are responsible for a large portion of a country’s GDP. In the US, building operations contribute around $235 billion to GDP, support 17.5 million jobs and generate $67 billion in new earnings, thereby contributing to around 30 percent of the economy xi . Keeping these engines of growth “well-oiled and humming” makes economic sense. Higher performing buildings have been found to increase lease rates, improve occupancy rates and net operating incomes, and lower capitalization rates thereby leading to higher resale values xii,xiii . The Internet of Things will increase the operational and financial performance of buildings by optimizing building operations and improving productivity. How “Building” Internet of Things will improve peoples’ lives Connectivity enhances a building’s responsiveness to internal changes as well as resilience against external challenges. A few years ago, the only interaction between a building and its wider environment came via utility meters. Today, high performing buildings are expected to respond to a myriad of stimuli from the internal environment (changes in lighting, temperature, humidity, CO2, ventilation and occupancy levels), requirements of Information Technology (structured and unstructured data from the cloud and on premise computers) and demands from Operational Technology (signals from elevators, security apparatus and heating and cooling systems). The building also needs to be responsive to weather events and surrounding buildings in the campus as well as to signals from the electric grid (e.g. demand-response events), the micro-grid (storage and renewable energy generation) and electric vehicles. Consider, for example, a small school building. Indoor environmental quality sensors will measure and regulate temperature, humidity, ventilation, lighting and CO2, thereby providing ideal learning conditions for its students and improving productivity of its staff. Sensors installed throughout the campus will give vital advance warning of earthquakes and pollution levels. IoT systems will predict water and energy leaks, optimize heating and cooling equipment, facilitate renewable energy generation and storage, and manage transactions with the electric grid. This will help the school reduce energy waste, shift peak energy demand and reduce the risk of power outages. Computer vision technology will assist occupancy optimization and security management in real time while machine learning and artificial intelligence algorithms will help the school better manage space, staff and facilities. Smart parking sensors will regulate traffic and alleviate the morning chaos.    Copyright © 2016 ARM Limited. All rights reserved. The ARM logo is a registered trademark of ARM Ltd. All other trademarks are the property of their respective owners and are acknowledged Page 4 of 9 RJZ44QK4VMSH-2-12 Figure 1: What is a Smart Building? The process of implementing “Building IoT” starts with deciding upon the right sensors. Sensors that are low power or energy harvesting, miniature, secure and versatile lead to lower capital expenses, decreased maintenance costs and easier deployments. Data from these devices are translated and transmitted through routers, gateways, nodes, and edge computers through a myriad of proprietary and open protocols. Gateways translate and bridge protocols and enable on premise control of the building through central workstations and mobile devices. They also connect the building to the cloud through cellular or Ethernet connectivity. The cloud enables remote access, higher level analytics and communication with the grid and micro-grid. Figure 2: Building IoT architecture
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