Remote Management of People Flow Systems in
Buildings
Olli-Pekka Varis
Supervisor: Heikki Hämmäinen, Professor of Networking Business
Instructor: M.Sc.(Statistics), Jukka Salmikuukka
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Thesis Seminar on Networking Technology / Olli-Pekka Varis
Agenda
1.
2.
3.
4.
5.
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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?
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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
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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
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Value Creation Trends – Smart Services
Framework
Opportunities
in adjacent
services
Platform provision and common resources usage
Integration
Optimization
higher
Customer’s
potential
willingness to
pay extra from
smart services
Information Services
Opportunities
in own
products
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lower
Basic Products and Maintenance
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, ZigBee,…
• Wide Area Communication
• Wireless vs. wired communication
• Information Security
• Proprietary vs. open solutions
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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
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Thesis Seminar on Networking Technology / Olli-Pekka Varis
Results
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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
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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
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PFM Scenarios
PFM Driver
Services
Probable
Provided under Scenario
PFM Framework
Open
Management
Platform
(Scenario 1)
Facility
Management
(Scenario 2)
System
(Scenario 3)
New buildings
Network (integrated
solutions through
network management)
Office buildings (with
IP-based core
networks)
Central management
with open user
interface
Information
FM outsourced office
buildings
Cost savings
(Optimization)
Large housing
companies
Central management
interface
Upscale residential
sites
People flow systems
(additional services
through shared
features)
Smart services
Smart services
Modernizations
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Emphasis on
R&D
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
Revenue
Revenues
from adjacent
services
OPEX
RM OPEX
RM system
investments
Service and
maintenance
costs
CAPEX
Economic
results
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RM system
cost
Integration
services
Regulatory
effect
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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
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Thank you
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Appendices
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Buildings Businesses in Finland
Elevators a)
Volume of total
Business (Meur)
Service Business
Share of Total
Business (%)
Annual Growth
Typical System or
Service Price (eur)
Fire Safety
Systems b)
Access
Control
Systems b)
Intrusion
Detection
Systems b)
Video
Surveillance
Systems b)
180
20
20
20
20
300
810
33 %
30 %
25 %
10 %
15 %
100 %
100 %
medium
low
medium
medium
medium
high
high
35000
15000
25000
5000
10000-50000
na
2 eur/m2
safety and
maintenance
regulations
safety
regulations
time and
attendance
systems
integration to
access control
very low
product
lifecycle
increased
focus on
security,
government
mandates
outsourcing of
detached
activities and
real estate
investments
slowly
consolidating
fragmenting
consolidating
fragmenting
fragmenting
consolidating
consolidating
70 %
30 %
50 %
small
30 %
na
53 %
high
(maintenance
business:
medium)
high (strong
supplier
dependency)
medium
medium
high
low e)
medium
Business Drivers
Consolidation
Trend
Residential
Apartments' and
Office Buildings'
Share of Total
Business
Customer
Purchasing Power
Table references:
a) Interview: Vesa Leppänen
b) Interview: Ari Mårtensson
c) Tuomela et al. (2001)
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7/24/2016 d) Finnsecurity: Turvallisuusalan
Thesissuhdannetutkimus
Seminar on Networking
e) Pekka Lith:
Security
Facility
Services c,d) Management
c,d)
Kiinteistöpalvelut Suomessa
- yritystoiminta, markkinat ja keskeiset kehityslinjat
Scenario 1: Management Platform Driven
Model
Open
Standardsbased Building
Network
People Flow
People X
Flow
System
People X
Flow
System
System X
Building
Automation
(HVAC, lighting,
etc..)
Network
Management
Gateway
Voice/Data/
Video
InterIntersystem
system
network
network
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Public Network
Remote
Remote
Management
Remote
Management
Center
Management
Center
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
FlowX
System
n (HVAC,
People
Flow
System
System X
X
lighting, etc..)
FlowX
System
System X
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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
Service
Provider
Service
Provider
Provider
Scenario 3: System Driven Model
People Flow
System (with
remote
management
connection)
People Flow
System X
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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)