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Copyright © 2012 Accenture. All rights reserved. Accenture, its logo, and Accenture Innovation Delivered are trademarks of Accenture. March 2013 Business Service Overview: Accenture Smart Building Solutions (ASBS)
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Contents Executive Summary Business Context Why is ASBS an important aspect of retail and worth giving attention to? Why Accenture? Why should a client partner with Accenture to implement this capability rather than building it in house? Components of the Service What capabilities does ASBS enhance or enable? Identifying a Fit What signs indicate that ASBS would be make valuable improvements at a client, and what questions should be asked? Value Proposition What hard and soft benefits does ASBS provide? Service Implementation What approach, timeline, team, and deliverables would be involved in implementing ASBS? Client Credentials Where has ASBS been implemented before, and what results were achieved? 1 Copyright © 2012 Accenture All Rights Reserved.
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Executive Summary Accenture Smart Building Solutions (ASBS) uses advanced data analytics to provide enterprise energy management services to commercial building owners, helping them reduce energy usage and maintenance costs, while improving occupant comfort. ASBS leverages the convergence of IT and Building Technologies to provide a suite of data-focused services to reduce building operating costs by up to 30%. The continuous analytics improves equipment performance that results in a number of tangible and intangible benefits for building owners and occupants. Lower utility bills (decreased consumption and demand) Lower carbon emissions Lower maintenance costs (parts and labor) Increased equipment life Lower risk of catastrophic equipment failures Improved tenant comfort, retention, and leasing rates 2 Copyright © 2012 Accenture All Rights Reserved. Energy Carbon Maintenance Comfort
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Business Context Energy is a growing cost item and a mission-critical commodity for many organizations today, therefore its efficiency is a critical component of our client’s sustainability strategy whilst offering favorable business benefits. 3 Copyright © 2012 Accenture All Rights Reserved. Client Challenges & Opportunities Energy consumption is a significant operational expense item for most industries and buildings making up about 20% of overall operating costs. While there is a growing need for energy efficiency, most organizations: Do not have a strategic approach to energy management Do not understand their most energy consuming assets Do not actively manage energy efficiently or effectively Do not understand what technologies are available to drive energy efficiency Why Buildings? Buildings consume ~40% of the world’s energy – far more than what is used in other areas such as transportation Regardless of age, nearly every building wastes energy. Why Information Technology? IT enables unprecedented efficiencies for many core business functions and the real estate portfolio is no exception Building systems and solutions are the last to migrate to IP, yet are instrumental in controlling energy spend Analytics enables the analysis of millions of data points per day from existing equipment to identify improvements to building operational efficiency
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Inside track on industry-leading solutions: We have strategic relationships with leading technology providers such as Schneider Electric, Microsoft, and Siemens. Because we know our partners and their technology inside-out, we can rapidly tailor solutions to each client’s specific needs Leadership in sustainability: Accenture is at the forefront of delivering value from sustainable development. Accenture’s 1600+ sustainability professionals have completed 200+ projects in the past 18 months. We have a broad view of the interrelated issues in the sustainability agenda and are experienced managing change, and driving employee engagement and cultural transformation Gainshare approach: We are committed to partnering with you to maximise the value realised from this project. We have a number of flexible approaches which incentivise continual performance improvement over the lifetime of the contract and maximise energy savings Technology know-how: Accenture excels at understanding how technology drives the sustainability agenda and how analytics can help companies become more transparent, better understand their risks and create sustainability benefits across the value chain High quality team ready to deploy: We are committed to delivering value for our clients; our global network of staff and assets across 54 countries enables us to deliver world class results for our clients’ global programmes. Our Global Delivery Network provides clients with high-quality solutions, lower costs and quicker results Energy management results delivered: We have a proven track record for complex, end- to-end transformational projects in energy management. Our experience ranges from a 1900 store roll-out of the advanced analytics platform for a US retailer to delivering $1.1 million annual savings across 6 buildings for a major telecom firm Holistic sustainability leadership Holistic sustainability leadership Flexible contracting approach Flexible contracting approach Proven delivery excellence Proven delivery excellence Global network of high quality people Global network of high quality people Strategic relationships Strategic relationships Leading edge technology solutions Why Accenture? 4 Copyright © 2012 Accenture All Rights Reserved.
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Components of the Service Accenture Smart Building Solutions & Energy Services 5 Copyright © 2012 Accenture All Rights Reserved. Enterprise Energy and Carbon Manager Provide client with an energy and carbon management coordination function that will initiate, implement and manage energy procurement, efficiency projects, ASBS and carbon management. Utility Incentive Program Management Manage the application for utility incentives for clients to reduce the cost of initiatives and to improve ROI. Program Coordination Facility Benchmarking and Energy Audit Help organizations design, implement and execute an energy audit program across their facilities and/or members. Accenture Smart Building Solutions Use open-IP and advanced data analytics to provide enterprise energy management services and enable commercial building owners to cost- effectively reduce energy usage while improving occupant comfort. Demand Response Reduce client operation cost for energy by generating a revenue stream from utility-driven demand side management programs. Demand Side ManagementSupply Side Management Energy Procurement Provide essential foundations, managerial clarity and best practices for a sustainable and cost-effective energy procurement program that minimizes energy costs, enables verifiable demand side management, carbon foot- printing and environmental sustainability management. Energy Bill Verification Provide the analysis, context and tools for recovering funds that have been paid to utilities as a result of the errors and inconsistencies often found throughout the billing process.
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Components of the Service Accenture Smart Building Solutions & Energy Services 6 Copyright © 2012 Accenture All Rights Reserved. Retro Commissioning (RCx) Accenture Smart Building Solutions (ASBS) / Continuous Commissioning (CCx) A building’s performance deteriorates due to its age, usage, or functional adaptation to new uses Traditional approaches, like Retro Commissioning (RCx) and/or energy audits, are point-in-time, stop-gap measures that are ineffective in sustaining a high level of building energy efficiency Accenture Smart Building Solutions, leveraging Fault Detection and Operational Guideline Monitoring, enables Continuous Commissioning (CCx), thereby helping the building to reach or exceed its original efficiency
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Components of the Service Accenture Smart Building Solutions & Energy Services ASBS is based on 8 years of research and development which led to analytics and trending capabilities far beyond those of traditional building management systems. Persistent Savings: ASBS continuous commissioning maintains savings through changes in seasons, operational strategies, building use, and equipment condition 7 Copyright © 2012 Accenture All Rights Reserved. Capital “Light”: Instead of expensive retrofits, ASBS optimizes existing equipment to run more efficiently Non-Disruptive: Since there is no equipment to replace, the building does not need to be taken “off-line” and tenants are not impacted Quicker Payback: ASBS produces savings much faster than traditional RCx, leading to quicker ROI
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Components of the Service Accenture Smart Building Solutions & Energy Services ASBS provides a comprehensive range of powerful energy management reports is available to building engineers to systematically track and optimize building energy performance over time. 8 Copyright © 2012 Accenture All Rights Reserved.
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Identifying a Fit 9 Copyright © 2012 Accenture All Rights Reserved. Questions to ask…Why we are asking…Client who would know… 1.Do you have an energy management program in place? It’s beneficial to understand how mature the client is when it comes to energy and sustainability initiatives. C-Level Corporate Responsibility Officer VP of Facilities / Director of Facilities 2.Does this program address energy efficiency in your facilities? It’s beneficial to know if any program they have also includes managing energy in their facilities and not simply sourcing from green energy providers C-Level Corporate Responsibility Officer VP of Facilities / Director of Facilities 3.What initiatives are being pursued to manage energy in your facilities? (e.g. Basic operations scheduling, energy management dashboarding, predictive analytics, participation in demand response programs) It’s important to know what the client is already doing at their facilities and how advanced that work is. Many clients believe their building management systems (the computer brain that controls HVAC operations) are equivalent to smart building analytic solutions, but they are not. We are also curious as to what other programs they participate in such as utility incentive programs, etc. Corporate Responsibility Officer VP of Facilities / Director of Facilities 4.[a] Do you own your facilities or is the spaced leased? [b] Do you perform the maintenance in your facilities or do you contract the work out to a facility maintenance company? If a client owns the building they are in (“owner-occupied”) and also manages the maintenance, implementing recommended energy conservation measures is much easier. However, this is not all that common and we are still able to provide our analytics solution to clients who are leasing space and where maintenance is performed by a 3rd party. Corporate Responsibility Officer VP of Facilities / Director of Facilities 5.[a] How old are the facilities in your portfolio? [b] Do your facilities use pneumatic controls or direct digital controls? Older buildings use pneumatics to control equipment while newer buildings (~10-20 years old) have direct digital controls (DDC). ASBS requires facilities to have DDC. Note, an older building may have been converted to DDC so age is not the only qualifier. VP of Facilities / Director of Facilities
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Value Proposition Existing facility BASs are not designed to optimize facility operations and minimize energy consumption. 40% of BASs save less energy than they are capable of saving, on average producing less than 55% of the expected savings 10 Copyright © 2012 Accenture All Rights Reserved. Design IntentCurrent BAS Facility Performance Smart Facilities BAS Optimization Operational Guidelines & Fault Detection Savings Opportunity Source: “Achieving energy savings with building automation systems” www.automatedbuildings.com Existing BAS Capabilities Operations based on strategies that may be flawed Static alarms that go off too late Limited trending (number of points and time period) Single facility view Smart Facilities Capabilities Optimal operating strategy Dynamic alarms based on an energy model Predictive analytics/maintenance Prioritized list of recommendations Enterprise/portfolio view Supervisory control
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Value Proposition Continuous data-driven analytics improves equipment performance that results in a number of tangible and intangible benefits for building owners and occupants, including reduce building operating costs by up to 30%. 11 Copyright © 2012 Accenture All Rights Reserved. Retro and Continuous Commissioning (CCx) Energy Saved: 15 – 35% Energy Saved: 15 – 35% Carbon Reduction: 10 – 20% Carbon Reduction: 10 – 20% Optimization and Monitoring Improved tenant comfort and productivity Fewer sick days / Enhanced client comfort Fewer sick days / Enhanced client comfort AFDDI 1 for Predictive & Preventative Maintenance Maintenance costs reduced: 5 – 15% Maintenance costs reduced: 5 – 15% Spares inventory reduced: 20 – 45% Spares inventory reduced: 20 – 45% Energy Star Certification Rent premium and improved tenant attraction and retention Increased asset value: $5-10 / Sq. Ft. Increased asset value: $5-10 / Sq. Ft. Key Services Benefits / Value Delivered
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Service Implementation Following the initial installation, our phased approach delivers value over a 5-7 year period 12 Copyright © 2012 Accenture All Rights Reserved. Assessment Integration & Data Collection Analysis & Recommendations Corrective Actions Measurement & Verification 1 wk 2-6 wks6-8 wks2-4 wks3-5 wks Project Management Office EEMS reportingInterval Data AnalysisSolution Report Full optimization and monitoring covers a multi-year period. Beyond initial installation and analysis, Accenture continues to optimize the system, providing continuous monitoring for each integrated facility, with options for further integration of enterprise systems. A gain sharing agreement allows Accenture to share both the up-front cost and the continuing benefits. This enables a long-term relationship that leads to continuously increasing benefits. OGs & AFDD AnalyticsEnergy Bills
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Service Implementation Client support in engaging stakeholders, setting expectations, and facilitating internal approvals and 3rd party involvement is critical Joint ASBS-Client sub-teams will collaborate to complete specific On-Boarding tasks to achieve economies of scale 13 Copyright © 2012 Accenture All Rights Reserved. Client led team ASBS team ASBS led & Client-supported Measurement & Verification Corrective Actions Assessment Integration & Data Collection Analysis & Recommendations
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Brochures & White Papers: Energy-Smart Buildings White Paper http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Energy-Smart-Buildings.pdf Accenture Smart Building Solutions Brochure https://microsite.accenture.com/sustainability/business_solutions/Pages/smart_buildings_solution.aspx Additional Information
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