“Driving Future Innovation in FM
Responding to Key Megatrends and Uncovering Opportunities in a
Collaborative Way to Gain Competitive Advantage”
Steven Gladwin; Director
Nodus Solutions UK Limited
Non Executive Director: BIFM
Past Chair: Global FM and FMA Australia
Agenda
Driving Future Innovation in FM
Responding to Key Megatrends and Uncovering Opportunities in a
Collaborative Way to Gain Competitive Advantage
1. What is Innovation?
2. What are Key Megatrends?
3. Who is Gaining a Competitive Advantage?
What is Innovation?
The Conundrum!
“FM Service Providers just aren’t innovative”
“Clients always talk about wanting innovation;
we suggest lots of ideas;
but nothing ever changes!”
What is Innovation?
“Innovate – bring in new ideas; make changes”
Oxford English Dictionary
Derives from the Latin word innovatus, "to
renew or change“
“New combinations that are economically
more viable than old ways of doing things”
Schumpeter 1934
What is Innovation?
“Innovation is the process by which new ideas
are successfully exploited to create economic,
social and environmental value”
Department of Business, Innovation and Skills
What is Innovation?
Key words from this definition..
Innovation is the process by which new ideas
are successfully exploited to create economic,
social and environmental value
•
•
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Process – “a series of actions or functions bringing about a result”
Exploit – “use or develop for one’s own ends; take advantage of”
Create – “bring into existence; originate”
Value – “worth, desirability, or qualities on which these depend”
Types of Innovation
• Two types of innovation:
1. product innovation
2. process innovation
• Product innovation: bringing something new to market that
improves the range and quality of products
– Apple iPod is an innovation compared to the Sony
Walkman
• Process innovation: new way of delivering services
– Going to a building and recording that you have arrived for
your appointment by touching a screen instead of talking
to a receptionist
So - Why is there a Conundrum?
“Service Providers just aren’t innovative”
“Clients always talk about wanting innovation;
we suggest lots of ideas;
but nothing ever changes!”
1. Common understanding and education
2. Recognition of Innovation diffusion
3. Innovation collaboration
Innovation Diffusion
Innovation Collaboration
Supply (Service Providers)
•Leadership & Management
•Ideas
•Concepts
•Proposals
•Research
Collaborative Innovation
Strategy
Demand (Client)
•Leadership & Management
•Ideas
•Concepts
•Proposals
•Research
• Clients specify innovation…
• Suppliers give examples of innovation…
• There must be a collaborative process to drive innovation
Where are we going?
Where are we going?
PwC 16th Global CEO Survey
Megatrends Driving Innovation
The Next Generation?
Gaining Competitive Advantage
1. The market for outsourced facilities
management will become broader
2. The market for outsourced facilities
management will grow internationally
3. Property Management and Facilities
Management will merge
4. Contracts will become more performance
based and collaborative resulting in new skill
sets for contract management
Megatrends
Collaboration - Everything as a Service
The market for outsourced facilities
management will become broader ……
because FM will lead (or be incorporated
into) a more holistic support services
market
FM or Support Services?
FM or Support Services?
FM or Support Services?
FM or Support Services?
Megatrends
Collaboration - Everything as a Service
• The market for outsourced facilities
management will grow internationally in the
next 10 years
• This will be driven because of the lower levels
of FM market maturity (outside UK & Ireland)
Suppliers Going Global
Who Competes in Europe and Globally
Market Leaders and Followers
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Sodexo
ISS
Vinci
Johnson Controls
• Jones Lang La Salle *
• CBRE *
Ones to Watch
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Spie Matthew Hall
Cofely
United Group
Aramark
Compass
United Group *
Megatrends
Collaboration - Everything as a Service
Property Management and Facilities
Management will no longer exist….
because they will become aligned
Megatrends
Collaboration - Everything as a Service
Megatrends
Collaboration - Everything as a Service
CBRE Group, Inc. Announces Definitive Agreement
to Acquire UK-Based Norland Managed Services LTD
Tue Nov 12, 2013 5:00pm EST
• CBRE Group, Inc. Announces Definitive
Agreement to Acquire UK-Based Norland
Managed Services LTD
• Norland’s Engineering Expertise Significantly
Advances CBRE’s Corporate Outsourcing
Platform in EMEA; Adds Strong Capabilities in
Managing Critical Environment Facilities
Megatrends
Collaboration - Everything as a Service
Contracts will become more collaborative with
more emphasis on:
1. Cultural fit
2. Performance driven outcomes
3. Expertise in contract and relationship
management
Megatrends
Collaboration - Everything as a Service
Megatrends
Collaboration - Everything as a Service
Project Case Study
Challenge
Were seeking a TFM model.
As a result of a strategy review and gap analysis
it was concluded that separate Bundled Hard
and Soft service contracts under a collaborative
NEC 3 Framework were most desirable.
Solution
• Collaboration model through BS11000
• Quantified technical support from bundled
hard service provider
• Customer service driven by soft services
bundled partner
Project Case Study
Challenge
• 5000 Trading Properties throughout UK
• 500 suppliers
• Limited contracts in place
Solution
• 3 year agreements
• 3 hard service contracts and 2 soft service
contracts
• formal collaborative arrangements using
BS11000
• Solution development workshops to assess
cultural fit
• 20% Cost reductions
• Consistent approach to collating compliance
records
• Journey of improvement over 3 years
Collaborative Commercial Models
Client Needs
1.
2.
3.
4.
5.
Reduce risk (eg; compliance; safe working)
Asset management (Life cycle models)
Improve service (eg; client segmented SLA’s)
Reduce cost (eg sustainable year on year savings)
Cultural change (eg proactive and innovative)
Service Provider Needs
1.
2.
3.
4.
5.
Commercial risk mitigation
Make profit (4-6%)
Get paid on promptly
Long term secured forward order book
Demonstrate performance through references
Solution to “Self Interested” Needs
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Commercial model that drives outcomes for both parties
Basic contract deliverables linked to monthly payment (CPI’s)
Risk and Reward mechanism with profits linked to performance KPI’s)
The Principal Agent
Challenge
Collaborative Cultural Fit
Selecting the Right Service Providers
Solutions For…
1. Mobilisation
2. Contract Management
Final Proposition
Survival of the Fittest
Global Megatrends will drive a paradigm shift in
what customers demand from support service
providers
Nodus Solutions
Nodus; Latin for “knot”
No-dus (NOH-duhs) n.pl “A complicated situation or problem”
Questions?
steve.gladwin@nodussolutions.co.uk
+44 7753 244 685
Linked In
Twitter @STEVENGLADWIN
Solving your facility puzzles