1. Remote Management of People Flow Systems in Buildings
Olli-Pekka Varis
Supervisor: Heikki Hämmäinen, Professor of Networking Business
Instructor: M.Sc.(Statistics), Jukka Salmikuukka
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

2. Agenda 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
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

3. 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?
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

4. Scope Residential apartment buildings and office buildings
Systems that enable or control the movement of people in buildings
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

5. Methods Literature study Interviews Constructive modeling
Technical data
Interviews
Finnish business environment
Constructive modeling
Stakeholder analysis
Scenarios
Techno-economic modeling
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

6. Value Creation Trends – Smart Services Framework
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis
Source: Allmendinger & Lombreglia 2005, Harward Business Review

7. 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
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

8. 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
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

9. Results
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

10. 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
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

11. People Flow Management Framework
Intelligent ICT-based solutions need a framework
People flow management is a clear entity for customers and end-users
Security and safety trends push system integration
Technology trends enable integration of separate solutions
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

12. PFM Scenarios
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

13. Techno-economic Model of Remotely Managed People Flow Systems
Revenue
OPEX
CAPEX
Study period
Discount rate
Economic results
Customer retention rate
Competition level
Regulatory effect
Market Positioning
Switching costs
Market size
Market share
Product quality
Contract price
Revenues from adjacent services
Number of contracts
Information services
Optimization
Integration services
Platform provisioning
Service and maintenance costs
RM OPEX
RM architecture investments
RM system investments
Number of PFS
RM system cost
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

14. 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
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

15. Thank you
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

16. Appendices
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

17. Buildings Businesses in Finland
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

18. Scenario 1: Management Platform Driven Model
Network Management
Gateway
Public Network
Open Standards-based Building Network
People Flow System X
Building Automation (HVAC, lighting, etc..)
Voice/Data/Video
Inter-system network
Remote Management Center
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

19. Scenario 2: Facility Management Driven Model
Facility Management Center
Remote Management Gateway
Service Provider
Building Owner
People Flow System X
Building Automation (HVAC, lighting, etc..)
Buidings with different systems
Provides a total facilities management service packet
People Flow systems are monitored or controlled through service management gateway
Service providers are responsible for upgrades and maintenance of people flow systems
Facility manager orders the services from maintenance subcontractors
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis

20. Scenario 3: System Driven Model
Public Network
Remote Management Center
People Flow System (with remote management connection)
People Flow System X
People Flow System Z
Inter-system network
Common resource usage and integrated services
People Flow System Y
Systems can use common resources remotely (e.g. databases and call centers)
9/21/2018
Thesis Seminar on Networking Technology / Olli-Pekka Varis