Why is Smart Technology Difficult to Scale?

We interviewed Joe Aamador as part of our podcast series. We discussed smart technology adoption and scale in smart buildings. You can listen to the episode in full, here.

Joe has spent most of his career working within the smart building space; he started out in consulting and then spent a number of years at Johnson Controls; he now has his own business working with different stakeholders within the industry.

He states that he “tends to think of a smart building as being one where there’s more of data-driven or data-informed approach. Data is collected through sensors, IoT technologies, and integration with existing systems; it is then used to deliver a better environment”. 

He believes “it’s all about moving to a condition-based approach as opposed to a schedule-based one. In the past, we might have changed the air filters every three months 'just in case’, but now data gives us the ability to change it at the appropriate time and be more efficient with our resources”. 

80% of buildings that will be in use in 2050 have already been built; therefore, the adoption of smart buildings will be attributed more to retrofits and our ability to upgrade existing technology and infrastructure. 

“Over the past 5-10 years, I’ve seen real estate developers investing more in smart buildings; they’re getting publicity for them and showing good success from various metrics. They’re not using as much energy per square foot; they’re creating better occupant comfort, improved occupant survey data and even better space utilisation.

However, Joe goes on to state that he believes a big challenge regarding adoption is a lack of focus on building outcomes.

“Certain technology might be amazing, an incredible game-changer, but it might not be connected to a direct problem that a building owner or operator needs to solve. Vendors need to clearly state what the value proposition is and what the expected ROI could be”. 

Another challenge with the adoption and scaling of technology is data silos in buildings. “It can be very difficult and costly to pull data out of different systems. Part of the hallmark of a smart building is bringing multiple streams of data together and integrating technology. But, it’s not like these are problems that haven’t been solved. It’s just those problems can be more expensive than what somebody is willing to pay”. 

Lastly, Joe explains that he believes there will be more movement towards open protocols. “I have also seen a trend of companies who can unlock data in buildings, instead of selling an entire tech stack, or a product, these companies are just focused on integration. They are web-connected or cloud-enabled and aim to get the data into a central source. Most of these companies approach data as a service. Clients might pay a little bit upfront to commission the solution, but generally, there will be a cost over time which is per point per month. I think it’s probably a more compelling model, as once the software is installed, it becomes easier to deploy more technology in the building over time, and there’s more certainty that the building will be future-proofed”.

You can listen to previous episode of the podcast, here.

amBX Ltd