Smart Buildings Enable Smart Cities - wipro.com

FUTURE THOUGHT OF BUSINESS, 2016A W I P R O T H O U G H T L E A D E R S H I P I N I T I A T I V E

Smart BuildingsEnable Smart Cities

Table of Contents1. Introduction

3. What is a Smart City?Smart Cities arise from the shift that is occurring in the

ICT industry to a new technology platform for growth

and innovation.

Similar to Smart Cities, the concept of Smart Buildings is

rapidly emerging in the Gulf region. A variety of

technologies must successfully interact to transform a

normal building into a Smart Building.

A nation's economic and social development are often

an aggregate result of the development of its cities.

4. Why Smart Cities?

IDC de�nes a Smart Building as a facility that utilizes

advanced automation and integration to measure, monitor,

control, and optimize operations and maintenance.

6. What are Smart Buildings?

8. Stakeholders of Smart Buildings

The goals of building owners and city administration in

regard to sustainability and business sector development

are the same in most areas, and these common goals

serve as the basis for discussions among stakeholders

within the urban Smart Building ecosystem.

Developing an issue-based innovation ecosystem

involves building relationships among stakeholders that

are involved in various aspects of city functioning but are

often outside of city government.

10. Goals and Motivations of Smart Building Stakeholders

13. Emergence of Smart Buildings in the region

16. Challenges for Smart BuildingsShifting towards Smart Buildings is easier said than done.

Making incremental investments without a clear view of

the ROI and breakeven period is a major challenge and

inhibitor of Smart Building adoption.

City planners in the Gulf face exponentially increasing

urban populations, which are straining the existing

infrastructure, even while governments look to attract

new businesses and industries to support their

economies beyond oil.

Wipro is an Indian multinational IT consulting, systems

integration, and business process outsourcing (BPO)

services provider headquartered in Bangalore, India.

18. Wipro's approach to Smart Cities and Smart Buildings

As is the case with many other things, the push for

the development of Smart Buildings will have to come

from governments.

19. Essential guidance

International Data Corporation (IDC) is the premier global

provider of market intelligence, advisory services, and

events for the information technology, telecommunications

and consumer technology markets.

21. About IDC

Setting up a Smart Building is different from managing it.

Regulations and administrative bodies can push the

agenda of setting up Smart Buildings, but if the buildings

are not managed properly, cohesively, and intelligently -

i.e., using ICT platforms and technologies - then it is

practically as good as not having one.

12. Role of IT services providers

Similar to Smart Cities, the concept of Smart Buildings is rapidly

emerging in the Gulf region. A variety of technologies must successfully

interact to transform a normal building into a Smart Building. These

technologies enable the optimization of facilities and generate

economic and environmental bene�ts, which are the key objectives for

developing sustainable Smart Cities. Smart Building initiatives are

generally developed and orchestrated independently from the larger

city or municipal efforts relating to energy management and

sustainability. Investing in Smart Buildings is a critical foundation that will

enable Smart Cities of the future.

In the Gulf region, Dubai and Abu Dhabi have the most mature and

ambitious plans for Smart Cities, as well as for Smart Buildings. That said,

Saudi Arabia and Qatar are quickly catching up as they continue to

advance along the learning curve. From a stakeholder's perspective,

local and federal governments are looking to meet goals relating to

carbon emissions, while simultaneously ful�lling citizens' expectations.

Provisioning better services within a given residence will improve

tenants' satisfaction levels and will ultimately attract premium

customers, and businesses that will generate greater economic value,

which represents the most tangible bene�t for planners and developers.

Meanwhile, utilities companies bene�t by reducing CO2 emissions and

curbing energy wastage. Additionally, Smart Buildings enable utilities to

improve their demand management and demand-based resource

allocation, contain their staf�ng costs, speed up their responses, meet

their corporate social responsibility (CSR) targets, and, most

importantly, improve their levels of customer satisfaction.

A smart start

02

Smart Building initiatives for publicly owned buildings are often developed without including the larger ecosystem of players.

Collaboration between stakeholders is likely to maximize the economic and environmental bene�ts for both private and public

building owners, which will extend to the larger Smart City ecosystem as well.

The key �ndings of this IDC white paper are outlined below:

• Governments should encourage collaboration between stakeholders in order to drive engagement levels. Those cities that

have meticulously developed ecosystems aimed at ensuring sustainability in buildings have been able to effectively promote

Smart Building technology adoption and maximize their progress toward attaining their Smart City energy, sustainability, and

private development goals.

• Governments, private and public building owners, and technology vendors share common objectives for driving facility cost

reductions, operational ef�ciencies, and sustainability improvements. As such, close collaboration among stakeholders is critical

to the successful development of Smart Buildings in the region.

Produced by Wipro Marketing team with featured research provided by IDC, a preferred knowledge partner.

What is a Smart City?

Smart Cities arise from the shift that is occurring in the ICT industry to a

new technology platform for growth and innovation. As cities operate in

a globally competitive environment - or workers, tourists, and

businesses - the ultimate goal of Smart City initiatives is to attract

businesses and citizens to ensure a vibrant city economy. To do this, cities

must tackle a wide range of urban challenges (growing demand for

power, waste management, traf�c management, etc.) through

coordinated and focused investment. Smart Building technologies

represent one such area of investment that cities need to consider as

part of the wider Smart City ecosystem.

IDC's de�nition of a Smart City or Smart City project is one that uses

intelligent devices, ICT, and instrumentation technologies to achieve the

explicit goals of sustainable economic development and quality-of-life

improvements for citizens. These goals are achieved via improved

service delivery, more ef�cient use of resources (human, infrastructure,

and natural), and the implementation of �nancially and environmentally

sustainable practices. Central strategic themes for Smart Cities include:

• Sustainable economic development/revitalization

• Sustainability

• Citizen, community, and business engagement

The vision of Smart Cities is to provide more inclusive, secure, ef�cient,

and effective services to citizens, thus ensuring the livability and

sustainability of the wider city community. Smart City solutions integrate

information and operations within and between city systems and

domains and engage with citizens, businesses, and the broader

community in new ways. In this context, engaging with city planners,

private developers, corporate building owners, and property managers

that have a portfolio of facilities becomes an essential aspect of

sustainable economic development, not only in the context of managing

public facilities more ef�ciently and sustainably, but also by encouraging

the more rapid adoption of Smart Buildings technologies in private

commercial properties.

A smart way

Why Smart Cities?

A nation's economic and social development is often an aggregate result

of the development of its cities. In addition to being places to live, cities

are platforms where companies run their businesses and provide a

variety of services - they are, in short, the centers of resource

consumption. As a driver of global economic and technological changes,

cities are challenged to combine competitiveness and sustainable urban

development in parallel. This challenge is likely to have a broader impact

on housing, economy, culture, and the social and environmental

conditions of the urban population. According to the United Nations

(UN), the global urban population surpassed the global rural population

in 2007, and it predicts that 70% of the world’s population will be urban

by 2050, with many cities having more than 10 million inhabitants. Surging

growth in demand for resources will make greater ef�ciency critical, and

governments and other public administrators will inevitably have to

evolve their city management models.

The continuous and exponential increase in urban populations will

translate into rapidly growing demand for new buildings, which will

ultimately lead to incremental challenges in managing both the existing

and the imminent infrastructures. For example, ten years ago there were

2.9 billion urban residents worldwide who generated about 0.64 kg of

municipal solid waste (MSW) per person per day (0.68 billion tons per

year). Today, these amounts have increased to about 3 billion residents

generating 1.2 kg per person per day (1.3 billion tons per year).

A smart move

By 2025, this is likely to increase to 4.3 billion urban residents

generating about 1.42 kg/capita/day of municipal solid waste

(2.2 billion tons per year). Similarly, with the number of street

lights around the world likely to hit 350 million by 2025, local

governments and utilities companies will be challenged to

generate suf�cient energy and simultaneously meet the

carbon emission mandates. Pollution, clean water and

air, traf�c, parking, and transportation problems will

represent additional woes to those currently experienced by

city stakeholders.

Smart Cities are expected to solve problems beyond the

basic issues related to power, water, and transportation.

Pilot projects are attempting to improve issues such as

asset utilization, energy conservation, quality of life for

citizens, healthcare, ease of transportation, and response

time for emergencies. Some interesting examples are

outlined below:

• Smart bins in Barcelona: Sensors on bins to test the

possibility of optimizing the routes of refuse collection

vans by only sending them to full bins. Approximately

10% of current costs could be saved this way.

• Intelligent streetlights in Glasgow: A pilot is underway to

test if sensors can save energy by allowing lights to

automatically turn on and off when people walk past

them at night.

• Traffic management in Singapore: Electronic road

pricing (ERP) and sensors attached to taxis to enable

mapping of traf�c conditions have also helped to

reduce the number of journeys undertaken by private

cars.

• Citywide sensing in Santander: Santander has one of

the largest citywide sensing pilots in the world, with

more than 12,000 sensors collecting data on everything

from parking space availability to air quality.

• Smart Buildings in London: Canary Wharf Group

launched the Cognicity Challenge to identify and pilot

Smart City technologies on the Canary Wharf estate. It

is currently testing technologies like Demand Logic, which helps

businesses to reduce their electricity costs by intelligently

monitoring electricity usage.

If planned, implemented, and managed well, Smart Cities are

capable of addressing many, if not all, of the problems facing

citizens within growing urban environments. The above examples

clearly indicate that Smart City technologies can address a

variety of complex problems to improve quality of life for citizens.

It is to be noted that, directly or indirectly, Smart Buildings will

become a part of many of such initiatives (or already are)

because many utilities services are deployed within them. The

bene�ts of Smart Cities are beyond the 'experience', and

provide signi�cant economic value in the long term. The current

pilots and work in progress projects across the globe have

potential to provide sizeable cost reduction and monetization

opportunities to the stakeholders. According to a recent industry

report1, cities can bene�t from up to 30% energy savings and up

to a 20% reduction in water losses. Up to 30% reduction in street

crime from CCTV security cameras can be delivered. Travel time

and traf�c delays can be reduced by up to 20%. Other major

non-environmental bene�ts include improved safety and higher

quality of life, which in turn drives job creation and increases the

talent pool, leading to higher tax revenue. If a city faces water

availability or disruption issues, implementing Supervisory

Control and Data Acquisition (SCADA) systems to manage

water �ow can bring 30% savings on the energy used to manage

the water systems, 20% reduction in water loss, and 20%

reduction in water outage. A recent project to bring energy

ef�ciency to four water treatment plants in Beijing, China

delivered a remarkable 52% reduction in energy usage, allowing

the project to pay for itself in less than 18 months, and create

long-term cost savings that can be applied to other Smart City

initiatives. Another programme at Europe’s largest water

treatment plant in Budapest, Hungary allowed for the effective

treatment of 95% of wastewater - up from 54% before the

project. The results of these Smart City initiatives save money,

but just as important, they help to ensure the availability of

water for years to come. If cities have to be converted into Smart

Cities, then buildings too will have to be transformed into

Smart Buildings.

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What are Smart Buildings?

IDC de�nes a Smart Building as a facility that utilizes advanced

automation and integration to measure, monitor, control, and optimize

operations and maintenance. The enabling technologies are

characterized by a convergence of information technology and building

automation. Smart Building solutions give building owners, operators,

and other key decision-makers unprecedented visibility into equipment

operations and building use courtesy of the real-time data generated by

the sensors, monitors, and controls in a Smart Building solution

con�guration.

The development of a Smart Building is a process of investment and

transformation in facility management. The process is framed by the

integration of advanced controls and automation technologies that

utilize analytics and data management within an IT architecture. There is

no off-the-shelf deployment of technologies in a Smart Building. In

existing buildings, technologies are deployed as retro�ts or extensions to

existing infrastructure to increase the sophistication of the energy

management equipment in the facility. The most common problems

within traditional buildings include lighting, parking, lack of processes and

controls, poor services delivery, complex and redundant processes, high

energy consumption/costs, and improper waste management - to name

just a few. As these facilities are transformed into Smart Buildings, they

become increasingly instrumented, controlled, and automated, and

operators and key decision makers rely more heavily on the analytics and

data management aspects of Smart Building solutions to make the

information from the building systems actionable. The idea is that the

smarter the building, the more ef�cient its operations and maintenance.

This, in turn, drives down costs, energy consumption, and the facility's

environmental footprint. Figure 1 illustrates the process of transforming

an existing facility into a Smart Building.

A smart part

Information technology has a key role to play in the

development and operations of dynamic Smart Buildings.

Analytics and data management are fundamental to

enabling a real-time response to the ever-increasing stream

of data from the network of devices that manage building

equipment. These IT-enabled solutions become the bridge

to the Smart Grid and Smart City infrastructure.

From an energy perspective, Smart Buildings become an

important asset for the Smart Grid and help support the

Smart City goal of improved ef�ciency, in terms of reducing

energy consumption and increasing energy reliability. Smart

Building technologies create adaptive facilities that operate in

new ways by automatically responding to both internal policies

and schedules and external signals such as demand-response

events. By participating in utility programs such as

demand-response, building owners increase the value of their

properties and can thus charge premium rents from tenants.

Hardwareand Software

Building InfraManagement Platforms

Analytics & DataManagement

IT Security &Surveillance

Devices andMobile Apps

NetworkConnectivity

Sensors andControllers

Distributed EnergyResources Plug Loads

HVACSystems

Fire Alarmsand Systems

PhysicalSecurity Lighting Power

IT Components Non-IT Components

Building Management System

Figure 1 - Source: IDC, 2015

Smart Building Solution Components

07


Stakeholders of Smart Buildings

Developing an issue-based innovation ecosystem involves building

relationships among stakeholders that are involved in various aspects of

city functioning but are often outside of city government. The aim of

developing an ecosystem around Smart Buildings is to bring diverse

stakeholders together to develop common goals and language and to

discuss how creating new processes, policies, and �nancing mechanisms

for new technology adoption can bene�t the whole community. Simply

put, an innovation ecosystem brings multiple viewpoints to the table with

the goal of creating 'win-win' solutions.

As is often repeated when talking about building Smart Cities, no one

stakeholder can do it alone. To meet city sustainability goals, the city

government cannot do it without the efforts of private building owners

and developers, technology vendors, environmental nonpro�ts, and

other levels of government. Input from the business community and

citizens is also essential.

A smartcollaboration

Developing a team-like approach to innovation across these

groups, and focusing on a targeted topic like Smart Buildings,

frames the discussion in a more manageable way. The

objective is to get commitment in terms of time and

resources from stakeholders, and to provide a forum for

them to share their unique expertise and perspectives. This is a

�rst step in tackling a systemic and interconnected city issue like

sustainability and de�ning actions that will reduce emissions or

energy consumption. Figure 2 shows the major stakeholders in

the urban Smart Building ecosystem.

Local Government

City, county, statePolicies, standards, coordination, incentives,

permitting/licensing

Technology and Domain Suppliers

ICT, HVAC, lighting, plug loads, �re and security, distributed energy resources,

analytics and data management

Utilities

Electric, water and gas utilities: city, municipal and private

Federal Government

DoE, energy policy, grants and other funding

Partnership Ecosystem

Public/privare partnershipsNew engagement models

Planners and developers

Urban planners, real estate developers, building owners

Individuals and Communities

Citizens, nonpro�ts, local businesses and environmental associations

Figure 2 - Source: IDC, 2015

Smart Building Stakeholder Ecosystem

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A smart visionGoals and Motivations of Smart Building Stakeholders

The goals of building owners and city administration in regard to

sustainability and business sector development are the same in most

areas, and these common goals serve as the basis for discussions among

stakeholders within the urban Smart Building ecosystem.

Table 1 highlights the shared goals of stakeholders in the context of their

motivators. IDC believes that it is these motivating factors - and the

decision makers who enact them - that determine the path to achieving

Smart Building goals. It helps all stakeholders to understand what is

driving each player in the ecosystem. This is especially important for city

decision makers who need to create the right �nancial and policy

incentives to drive urban sustainability.

Table 1 also generalizes how key stakeholders perceive a variety of

economic and environmental goals and can be used to identify

opportunities for the coordination of policy, strategy, and investment.

Smart Building technologies change how facilities operate, with a view to

reducing energy consumption and improving energy and business

ef�ciencies. Smart technologies change how maintenance and

engineering staff run their facilities and how equipment is operated.

These changes are measured, monitored, and veri�ed against the goals

outlined in Table 1 as an aspect of Smart Building solution functionality.

For example, a Smart Building HVAC system can

automatically precool a building or change when or how a

rooftop unit operates. These changes are monitored, and

the impacts are quanti�ed in the analytics layer of the smart

solution. Those changes in equipment operations lead to

reduced energy demand and/or a shift in energy

consumption to a time when there is less demand overall on

the electricity grid. The quanti�able cost savings may be

realized as lower utility fees, a reduction in the facility's carbon

footprint, or support for grid reliability through demand

response. In other words, the operational changes to the HVAC

system enabled by Smart Building technology can address the

goals and motivations across the stakeholders identi�ed in Table

1. Coordination of policy development, investment strategy, and

technology deployment can lead to greater use of Smart

Building solutions by building owners to magnify the bene�ts

generated by these energy management innovations.

Goals and Motivations of Smart Building Stakeholders

Goal Planners andDevelopers

Individuals andCommunities

Local/FederalGovernment Utilities Technology and

Domain Suppliers

Reduce CO2 emissions Attracting premium tenantsSustainability reportingand cost reduction

State, federal directives;citizen demands

Tied to �nding alternativesources of energygeneration driven by policy

Corporate socialresponsibility

Reduce energy usageChallenge for splitincentive, can overcomewith green leasing

Social responsibilityand cost savings

Cost reduction,resource conservation

Demand management toallocate resources tohigh-demand areas

Corporate socialresponsibility

Improve maintenanceresource deployments

Enhance tenant experience;increase satisfaction levels

Cost containment; avoid orreduce capital expenditures

Staf�ng cost containment;faster response timesto problems

Staf�ng cost containment;faster response timeto problems

Long-termmaintenance contracts

Improve predictability ofenergy and resource needs

Reduce downtime andtenant dissatisfaction

Reduce downtime andminimize business disruption

Better budget accuracyand �nancial andresource planning

Improve grid reliabilityfor customers

Enabling automation andanalytics platforms tosupport predictive analytics

Visibility into operationsPredictive maintenance;ef�cient use of maintenanceresources

Predictive maintenance;ef�cient use of maintenanceresources; identifyopportunities for spaceutilization

Process improvements formore ef�cient operations

Process improvements formore ef�cient operations

Opportunity to upselltechnologies, streamliningprocess and procedures, andmanagement of buildings

Quantify energyef�ciency efforts

Comply with city mandates,showcase commitments toattract/retain tenants

Comply with citymandates for disclosure

Meet citizen demandsand city targets

Meet energy ef�ciencyresource standards andimprove customersatisfaction

Monitor progress towardsCSR/sustainability goals

Increase value of building Asset value for portfolio assets Added value of portfolio assets Increase city revenue NA NA

Meet broader sustainabilitygoals and initiatives

Appeal to green tenants,green real estate brand

Showcase achievement ofsustainability goals,employee engagement

Gain political capitalon environmental issues

Meet corporateresponsibility goals

Showcase CSR

Table 1 - Source: IDC, 2015

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A smart playRole of IT services providers

Setting up a Smart Building is different from managing it. Regulations and

administrative bodies can push the agenda of setting up Smart Buildings,

but if the buildings are not managed properly, cohesively, and intelligently

- i.e., using ICT platforms and technologies - then it is practically as good

as not having one. The role of IT services providers or systems

integrators is one of the most critical in this entire value chain. Systems

integrators carry a holistic view of Smart Buildings, and are well

positioned to consult and collaborate with organizations from inception

to delivery, and the post-delivery operational management phase.

Systems integrators are quali�ed to deploy and manage devices,

communications, networks, and NoC, all of which are critical

components of Smart Buildings.

The key differences between a normal building and a Smart Building are

the collaboration, automation, and intelligence aspects that are integral

to the latter. Underlying these differences is a core IT layer. The idea is to

have a single, integrated view of a variety of electrical, mechanical, civil,

and IT components. IT platforms enable this, supporting smooth

management of the above component’s performance. There are multiple

examples of IT services providers deploying and managing sophisticated

platforms to manage Smart Buildings. Many of these management

platforms are complex third-party applications, for which the systems

integrators have developed speci�c skills. In certain cases, they have

developed their own intellectual property in the form of these platforms.

One of the other major factors distinguishing systems integrators from

their civil and electrical counterparts is their ability to convert or

transform a normal building into a Smart Building. At the end of the day,

software and automation is what makes any infrastructure intelligent.

There are multiple examples in Eastern and Western markets where

systems integrators have deployed platforms to smartly manage the

existing IT and non-IT infrastructure. In summary, systems integrators

have a critical role to play throughout the life cycle and value chain of

Smart Buildings.

A smart trendEmergence of Smart Buildings in the region

City planners in the Gulf face exponentially increasing urban populations,

which are straining the existing infrastructure, even while governments

look to attract new businesses and industries to support their

economies beyond oil. Additionally, the urban tenants too are becoming

aggressively demanding in terms of the expected services, experience,

and at least basic smart services. Governments are increasingly looking

to Smart Cities to provide the answer. The Gulf Cooperation Council

(GCC) has one of the fastest-growing populations in the world.

According to an Economic Intelligence Unit2 report, by 2020 this

population is forecast to increase by one-third, to 53 million people. The

vast majority will be under 25 years of age. The rapid growth and the

relative youth of the population both present serious challenges.

According to UN �gures, 85% of the population of the United Arab

Emirates, for example, already live in cities. This is expected to increase to

91% by 2050. City dwellers consume over three quarters of all the

world's energy production and are responsible for 80% of CO2

emissions. To help manage energy and other resources in these urban

environments, governments in the Middle East have started looking to

Smart City and Smart Building technologies.

The Gulf region is a massive open space for Green�eld Smart

Cities and Smart Building opportunities. IDC interviewed

different stakeholders to understand the relevance of Smart

Buildings in the Gulf region and found that Smart Buildings

are gaining signi�cant momentum in the region. Given the

rapid change in the demographics and demand patterns for

citizen services, the need for better services — as well as a

revamp of service delivery culture — is inevitable. These,

along with a strong emphasis on enabling green energy,

improving energy conservation, reducing carbon emissions,

and providing better services to citizens, will drive the

adoption of Smart Building technologies. The UAE has been,

by far, the most active country in terms of Smart City

initiatives — Masdar, DIFC, and DSO being some prominent

examples. Other Gulf countries are likewise ramping up their

Smart City efforts, which will subsequently increase traction

for Smart Building initiatives. The policy and decision makers

will have to prepare themselves to embrace this change, with

the identi�cation of opportunities to transform buildings into

Smart Buildings being a critical �rst step.

Smart Buildings in the region largely fall under the broader

umbrella of Smart Cities. Most of the Gulf countries are in the

early stages of Smart City technology adoption, but are

quickly ramping up their initiatives and pushing the Smart

Building agenda. Although there are numerous global

examples of new Smart Buildings, it is important to note

that Smart Building technologies may also be a component

of a retro�t. Here are some of examples of both from the

Gulf region.

• Private equity bank in Bahrain: A private equity

bank invested in a state-of-the-art Smart Building

solution for its headquarters. The building is run

economically and sustainably with the aid of a solution

that integrates all its maintenance and

engineering-related ELV systems. It gives the facility

management team �exibility to monitor and operate

the system from any device, at any time, and from

anywhere using a single, real-time GUI. It also includes a

smart datacenter solution that interlinks sophisticated

security and surveillance capabilities over its IT network.

The system is strengthened further by emergency response and

crisis management features that provide best-in-class IT and

physical security. The building is highly energy ef�cient, with

automated energy saving strategies that keep track of

carbon emission and energy consumption through

user-friendly dashboard capability. Maintenance teams are

automatically noti�ed of faults, and, in many cases, the

system can identify adverse operating conditions in advance

and �x problems before they occur. Maintenance and

engineering is able to benchmark suppliers using

service-level agreements that are linked to comfort and

safety standards. This allows facility management to measure

service standards against key performance criteria. The

system can automatically sense the presence of people in a

room and control blinds, lighting, and air conditioning.

Accessing Smart Building services via their desktop IP

telephones or PCs, tenants can control their surrounding

environment.

• Ministry of Higher Education in Riyadh: The Ministry

of Higher Education (MoHE) was recently certified by the

Smart Buildings Institute, a non-pro�t organization aimed at

promoting Smart Building technology. The MoHE integrated

all its systems onto a single platform, enabling users to

bene�t from its services, simultaneously creating a

comfortable work environment that re�ects positively on

all employees, while signi�cantly reducing energy

consumption. Through this central system at the MoHE's

headquarters, HVAC and building management are

interlinked with one another, along with an internal and

external monitoring system that is supported by CCTV

cameras and access controls. Integrating these systems into

a single platform allowed the building operators and

occupants to have better control and accurate real-time

information on how the building and all subsystems are

functioning, therefore enabling a 'smart' environment. The

building is equipped with advanced applications and

middleware with an open-vendor integration platform that

seamlessly integrates IP, lighting controls, �re alarm system,

computerized maintenance management system, elevator

controls, digital signage, and energy-pro�le tracking

applications.

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• The Saudi Sinnovate Smart Technology Hub in

Jeddah: The facility required a robust ICT

infrastructure to support the project goals for a smart

and �exible facility. The project includes four specialized

buildings on an integrated campus. A convention center,

innovation center, and joint-development center are

dedicated to support IT collaboration and lecture

spaces for student and business use. They include spaces

for classrooms, meeting rooms, knowledge incubators,

an auditorium, and a technology showcase. The fourth

building is a datacenter, with traditional and module

spaces, as well as an auditorium and business-tour route

for marketing purposes. The facility-automation systems

are all integrated onto a converged Ethernet network.

Monitoring of the facility-automation systems occurs in

dedicated building-management system (BMS)

monitoring rooms in both the joint-development center and

datacenter. The lighting controls, HVAC, leak-detection, and

water system controls were consolidated into hubs and

controllers that support Ethernet with devices that were

not Ethernet-capable. The power-monitoring system allows

most of the devices to use Ethernet to communicate directly

with the associated system server. Performance-monitoring

applications on kiosks in lobbies provide feedback on

metrics (e.g., energy-use intensity (EUI) in the Innovation

Center and power usage effectiveness (PUE) in the

datacenter). The IT network is converged and includes

common enterprise IT systems as well as integration with

the facility automation, security, and datacenter

infrastructure. Integration of the systems will become

economical and �exible as they evolve and require minimal

manual interference in the building spaces.

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A smart revolution Challenges for Smart Buildings

Shifting towards Smart Buildings is easier said than done. Making

incremental investments without a clear view of the ROI and breakeven

period is a major challenge and inhibitor of Smart Building adoption.

Additionally, it is still considered to be 'a good thing to have' rather than

essential by most planers and developers, because there are no clear

mandates to push the Smart Building concept. Some of the other

challenges are covered below.

• Readiness of the ecosystem: The Gulf region is quickly

catching up on the technology adoption curve. However, the

ecosystem of Smart Buildings that requires collaboration between

stakeholders, formation of consortiums, and close integration

between the public sector and technology providers is still quite

weak compared to more mature markets. Most of the stakeholders

are still operating in silos while trying to drive the overall agenda.

• Signi�cant capex investment: Given the general

aspirations of the regional developers to construct

state-of-the-art and eye-catching buildings, the civic

work investments are always signi�cant. Additionally,

regulating authorities are not pushing builders to

invest in technologies for Smart Buildings. Investing in

technologies to enable Smart Buildings within the

existing budget is always a challenge. The prospect of

incremental investments that lack immediate and clear

returns are a major inhibitor.

• Cost of connectivity or bandwidth: Network

connectivity remains a key enabler and critical success

factor for Smart Buildings. Despite the continued

correction in bandwidth prices, the cost of

connectivity in the region is still higher than in most

mature markets. Regional telcos are working closely

with the concerned authorities to tap into the Smart

Buildings opportunity. In the long run, the cost of

connectivity is expected to come down further. If it

does not, the adoption of Smart Building technology

could be adversely impacted.

• Monetization and ROI: From a stakeholder's

perspective, the idea is to provide better services to

tenants and then monetize the services in the long term.

However, one of the major challenges for investors is to

get a clear view of the breakeven period and eventual ROI.

Additionally, the lack of immediate returns and the

long-term monetization cycle are major challenges

for investors.

• Intangible immediate bene�ts: As with Smart Cities,

the majority of services delivered in Smart Buildings

enhance the 'experience' of building users, something that

is often intangible and extremely dif�cult to quantify. There

are no proven models to put a dollar �gure on this metric.

The immediate intangible bene�ts exist in the form of

quality of service, quality of life, enhanced productivity, and

so forth; however, the challenge is that this experience

comes at a signi�cant capex and opex investment, and the

ROI cycle is often quite long.

• Motivating the stakeholders: Given the above

challenges concerning investments, lack of collaboration,

delayed ROI, and monetization models, the major

challenge is to motivate the stakeholders to push the

Smart Building agenda. And in the absence of a centralized

body or an industry consortium, there is no clear owner to

drive that agenda.

17


Wipro's approach to Smart Citiesand Smart Buildings

Wipro is an Indian multinational IT consulting, systems integration, and

business process outsourcing (BPO) services provider headquartered in

Bangalore, India. The company has more than 150,000 employees

servicing over 900 of the Fortune 1000 corporations and boasts a

presence in 67 countries. Wipro's portfolio of services includes managed

infrastructure and applications services, systems integration, application

development and maintenance, and a variety of enterprise solutions

areas such as cloud, enterprise mobility, big data and analytics, Smart

Cities, Smart Buildings, digital, information management, Internet of

Things, open source, and engineering services.

In the Gulf region, Wipro has been serving customers across the banking,

telecommunications, transportation, retail, manufacturing, education,

healthcare, and other industries for over a decade. Wipro has multiple

offices in the UAE, Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait. Its

most sizeable presence is in the UAE and Saudi Arabia.

Wipro has completed multiple Smart City projects in Asia and the

Middle East through the implementation of end-to-end IT infrastructure,

network implementation, and building automation systems. From a

capability perspective, Wipro has a strong Smart City practice that is

capable of delivering solutions across core Smart City, infrastructure and

automation, and energy management pillars. Some of the key Smart City

solutions provided by Wipro are intelligent building management

systems, voice, data and video services, digital entertainment, site and

facility management, highway traf�c management, roads and toll

management systems, parking management systems, citywide network

infrastructure, and security, surveillance, and access control.

Over a period of time, Wipro has invested in developing a robust pool of

skilled professionals who are trained and certi�ed on a variety of

platforms and technologies. Additionally, Wipro has established

partnerships with all the leading vendors offering solutions in the Smart

City and Smart Building spaces. Key partners include Schneider Electric,

Honeywell, GE, Siemens, ABB, Rockwell Automation, National

Instruments, IBM, SAP, Oracle, and EMC.

A smart idea

A smart strategy Essential guidance

As is the case with many other things, the push for the development of

Smart Buildings will have to come from governments. Policies,

regulations, and mandates will be critical to increasing the adoption of

Smart Building technologies. Additionally, setting up a consortium

wherein stakeholders can collaborate, exchange ideas, and contribute to

driving the uptake of Smart Building technologies will be a good starting

point. Other recommendations are offered below:

• Invest in building an innovation ecosystem around Smart Buildings:

The inclusion of energy ef�ciency in sustainability programs has

always been a part of Smart Cities, but very few cities have

established a formal process for collaboration between different

stakeholders in the Smart Building discussion. In order to drive the

Smart Building agenda, the incorporation of Smart Buildings into

larger sustainability efforts is critical. Additionally, it is important to

extend the focus beyond publicly owned buildings to privately

owned ones.

• Influence C-level decision makers to enhance their

focus on private buildings: Improving the management

and operations of public buildings has become a key

focus of cities, and some cities in the region are

establishing programs for reducing energy use in these

buildings. Since these buildings fall directly in the

purview of government control, there is a higher focus

on these efforts than on in�uencing private owners.

This requires a different mode of in�uence; it is a

higher-level discussion with more senior decision

makers and involves regulations, policies, compliances,

and incentivizing/rewarding both the owners and the

tenants of private buildings.

• Incentivize retrofits: Most of the existing and upcoming

initiatives and regulations have been targeted towards

new constructions of Smart Cities and Smart Buildings.

This leaves a wide policy gap for existing or older

buildings. The policy makers need to take a balanced

view of models to encourage the adoption of green

and Smart Building technologies in older buildings, as

well as the long-term sustainability targets for cities.

• Reach out to citizens and foster education: There is a

signi�cant opportunity for city governments to reach

out to citizens by collaborating and partnering with

technology vendors. Budgeting for educational

materials to promote recycling and reducing usage of

energy, water, or other resources is common in many cities. Most

of the technology providers have sizeable marketing

budgets, which can be leveraged in coordination with city

governments to target building owners and citizens/tenants.

• Use city efforts as proof of concept for private building

owners: There is a reasonable number of successful Smart

City examples in the region. Policy makers and government

authorities should promote these to private builders by

positioning them as case studies or as proof of concepts.

Organizations tend to be more strongly in�uenced by

regional or local success stories than global ones.

Smart Buildings can address a variety of issues for citizens,

governments, and construction companies. These can range from

physical security, parking problems, and energy conservation to

climate control, general services, and quality of life. The key

bene�ts of Smart Buildings are experiential in nature, which is

dif�cult, if not impossible, to quantify in terms of a direct ROI in

absolute dollar terms. Currently, the main focus for Smart

Building initiatives should be on improving the overall user

experience by generating greater value for all related

stakeholders. This 'value' may take on many forms, including

improved services, better facilities and asset management, and

reduced carbon emissions. While the ultimate aim will be to

monetize this value in order to drive tangible �nancial returns,

this should be regarded as a longer-term goal.

20


21


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