© 2011 IBM Corporation Rich Caplow, Director Product Management, IBM May 3, 2011 Smarter Buildings: A smarter way to manage real estate and facilities.

© 2011 IBM Corporation

Rich Caplow, Director Product Management, IBMMay 3, 2011

Smarter Buildings:A smarter way to manage real estate and facilities


Smarter Buildings on a Smarter Planet

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TRIRIGA and Maximo combine facility, real estate and enterprise asset management

Space & Facilities

Management

Real Estate Portfolio

Management

Energy and EnvironmentSustainability

Capital Project

Management

Integrated Workplace Management Systems (IWMS)

IBM Smarter Building Solutions

Maximo

IBM combines two markets - Enterprise Asset Management and Integrated Workplace Management Systems (IWMS) – with IBM Intelligent Building Management to create comprehensive Smarter Building solutions.

Enterprise Asset

Management

• Asset mgmt• Work mgmt• Inventory

mgmt

• Real time operations & energy monitoring• Real-time

analytics• Event

correlation

IntelligentBuilding

Management



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TRIRIGA solutions offer industry-leading capabilities for Integrated Workplace Management Systems (IWMS)

Helping customers meet challenges in real estate portfolio management, capital project management, and energy and sustainability management

Innovative TRIRIGA Real Estate Environmental Sustainability (TREES) solution drives lower energy consumption and emissions; recognized for industry leadership

Over 200 customers across industries with strong success in public sector and financial services

TRIRIGA Solutions



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Integral to IBM initiatives for Smarter Planet and Smarter Buildings– continues the growth and expansion of Smarter Planet solutions

Important component of Tivoli’s Integrated Service Management strategy to provide software, systems, best practices and expertise needed to manage infrastructure, people and processes

– combines with and expands upon Tivoli and Software Group industry solutions

Core to Maximo Enterprise Asset Management for almost two decades– Maximo is a leading provider of solutions for facility maintenance– Key to ‘cross-asset class’ strategy driving competitive differentiation

TRIRIGA contributes unique capabilities that are essential to Tivoli’s strategy

INSTRUMENTED INTERCONNECTED INTELLIGENT

Facilities Facilities InfrastructureInfrastructure

ProductionProductionInfrastructureInfrastructure

TransportationTransportationInfrastructureInfrastructure

TechnologyTechnologyInfrastructureInfrastructure

Communications Communications InfrastructureInfrastructure

++++



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Operations Management

• Asset mgmt• Work mgmt• Inventory mgmt• Supply chain• Contracts• Key mgmt

Space & Facilities

Management

• Space utilization

• Capacity planning

• Move, add, change

• Reservations

Real Estate Portfolio

Management

• Strategic RE portfolio planning

• Budgeting & forecasting RE expense drivers

• Lease & contract admin

Datacenter Infrastructure Management

• Space, power and cooling optimization

• Allocation planning

• Move, Add, Change

• Cable mgmt

Service Management

• Facilities service desk

• Service level agreements

• Contracted services

• Customer billing

Energy and EnvironmentSustainability

• Utility tracking• Environmental

opportunity analysis

• Carbon output measurement

Capital Project Management

• Condition assessment

• Capital planning• Budgeting • Construction

estimates • Project mgmt

Seven closely-connected sets of business functions are needed to reduce real estate costs and improve facilities operations.

Critical business processes address the total building life cycle from construction, design, and project management to leasing, portfolio management, datacenter infrastructure management, maintenance management, energy and environmental sustainability and asset disposition.

With TRIRIGA and Maximo solutions, customers can accomplish these business processes from one suite.

TRIRIGA and IBM solutions address a total view of facilities and real estate management



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Organizations can improve their ability to …

– manage their facilities and facility infrastructure covering the breadth of operations and maintenance

– forecast future real estate requirements, evaluate and prioritize among alternative real estate investments, manage capital projects and assess environmental initiatives

– unite departmental silos, create one consistent view of information and employ seamless business processes that connect multiple functions with an enterprise-wide solution

– deploy a single-vendor solution that eliminates the need for separate vendor products and associated integration investment

Together IBM and TRIRIGA solutions help customers improve building operations, reduce operating costs, lower energy consumption and enhance occupant satisfaction.

Our strategic intent is to combine facility, real estate and enterprise asset management into an overall Smarter Building strategy



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Lease accounting improves lease cash flow and reduces occupancy costs

Project management for plant improvements improves project cycle-times and eliminates budget overruns

Space management for corporate facilities improves space planning and increases facility utilization

Energy and environmental sustainability management reduces costs and risk, while ensuring regulatory compliance

Automated processes for preventive maintenance improve asset reliability, availability and performance

IT and facility help desk and request tracking improves response time and reduces down time

Datacenter and infrastructure visibility, control, and automation ensures critical services are performing to the highest standards in support of operations

Datacenter Operations Facility Mgr, Supervisor

Facilities Engineering

Real Estate VP

Project Mgr

Help Desk Supervisor

Mgr Energy & Utilities

Finance & Acctg

Real Estate Portfolio MgrProcurement

Facility Planner

Facilities Maintenance

Lease Mgr

Corporate Governance

The result is a unified solution for diverse departments and users throughout the organization

CIO



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TRIRIGA Core Components

Geographies

Locations

Organizations

Vendors

People

Specifications

Assets

Contracts

Customer Self Service

News

Graphics

Document Management

Reporting

WPM Metrics

GIS Mapping

GANTT Schedules

TRIRIGA Real Estate

Portfolio Planning

Site Selection

Transaction Management

Lease Administration

Lease Accounting

AR Tenant Tracking

Payment Processing

Client Requests

TRIRIGA Projects

Program Management

Fund Management

Scope Management

Cost Management

Schedule Management

Resource Management

Quality Management

Vendor Engagement

Procurement

TRIRIGA Facilities

Space Management

Space Chargeback

Space Requests

Strategic Planning

Move Management

Reservation Management

Personnel Provisioning

CAD Management

Receiving

Invoicing

Requests

Tasks

Contact Center

Service Management

Warranty Management

Preventive Maintenance

Facility Assessment

Security/Key Management

Inventory Management

Capital Planning

Resource Planning

CO2 Emission Tracking

Utility Tracking

Waste Disposal

Water Consumption

Green Opportunities Tracking

LEED/BREEAM Certification

Energy Star Integration

TRIRIGA EnvironmentalTRIRIGA Operations

Role-based Applications

TRIRIGA Workplace Enterprise-Class Applications



9

IBM intends to deliver a single suite for real estate, facility and enterprise asset management

These plans are subject to change.

AssociationPhase 1

ConnectionPhase 2

ConvergencePhase 3

• Global expansion

• Use IBM channels to expand reach

• Initial language translations

• “Bluerinse” product to IBM branding

• Enhance Maximo EAM with capabilities for capital project management, condition assessment and environmental sustainability

• Additional language translations

• Complete ‘Bluewash” product investment

• Converged platform for EAM and IWMS

• Single suite for asset and service management of enterprise infrastructure including facilities, production equipment, IT, and transportation assets

• Unified business process engine, single repository

Product futures and TRIRIGA integration plans



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Maximo and TRIRIGA Solutions (as of Close)

Core Solutions

Industry Solutions

MaximoAsset

Management

MaximoDatacenter

Infrastructure Mgr

Maximofor

Transportation

Maximofor Utilities

Maximofor Life Sciences

Maximofor Government

Maximofor Nuclear

Maximofor Oil & Gas

TRIRIGA Facilities

TRIRIGA Real Estate

TRIRIGA Operations

TRIRIGA Projects

TRIRIGA TREES

Industry-specific capabilities for the unique requirements of asset-intensive industries.Industry-specific capabilities for the unique requirements of asset-intensive industries.

Stand-alone solutions for asset, facility and real estate management.Stand-alone solutions for asset, facility and real estate management.

IBMIntelligent Building

Management



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Maximo and TRIRIGA Solutions (as of Close)

Add-on Solutions

Additional options, used with core or industry solutions, provide deeper functionality for specific needs.Additional options, used with core or industry solutions, provide deeper functionality for specific needs.

MaximoService Provider

MaximoScheduler

MaximoReal Time Asset

Locator

MaximoMobile

MaximoCalibration

MaximoLinear Asset

Manager

MaximoAsset

Configuration Manager

MaximoEveryplace

MaximoArchiving

MaximoChange &

Corrective Action Manager

MaximoERP Adapters

SMART Mobile (Syclo)

MaximoSpatial

TRIRIGA Energy Star Connector

TRIRIGA CAD Integrator

TRIRIGA Strategic Facility

Planning

TRIRIGA Facility

Assessment

TRIRIGA GIS Connector for

ESRI

TRIRIGA Connector for

RSMeans

Maximofor Energy

Optimization

Integration Adapters

Commercially-supported integration to other enterprise and 3rd party systems.Commercially-supported integration to other enterprise and 3rd party systems.



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Facilities Management Landscape

WORK AND ASSET MANAGEMENT CAPITAL PROJECT MANAGEMENT

INTELLIGENT ENERGY MANAGEMENT ENVIRONMENTAL SUSTAINABILITY

SPACE MANAGEMENT REAL ESTATE PORTFOLIO MANAGEMENT

SHORT TERM/OPERATIONAL LONG TERM/STRATEGIC

* Facilities Management includes assets inside and outside the datacenter



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The need for efficiency in commercial buildings is clear

2nd / 3rd

Real estate and facilities operations is the 2nd largest expense on theincome statement in most companies and 3rd most valuable or expensive single asset.

50 percent

Energy waste in in commercial buildings is a common problem. Up to 50% of energy and water are often wasted in many buildings.

2025

New urban growth is driving demand for commercial buildings around the world. By 2025, buildings will be the #1 consumer of energy in the world.



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The benefits from improving building efficiency are real

18% productivity increase

A variety of studies have demonstrated productivity benefits in commercial settings. Employee productivity increased up to 18% on average in smarter buildings.

91%occupancy rate

LEED and Energy Star green buildings have consistently higher occupancy rates with reduced churn, quicker lease up, and higher re-up rates.

40%savings

Smarter buildings can reduce energy usage by 40% and reduce building maintenance cost 10-30%.



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Something profound is happening in Smarter Buildings

+ + =INTERCONNECTED

Building systemsare interconnecting in entirely new ways.

INTELLIGENT

Intelligent interaction possible with externalities.

SMARTER

Information is shared to improve building

operations and occupant well-being.

INSTRUMENTED

Facilities can be fully instrumented at all

levels.



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What is a Smarter Building?

Smarter Buildings…

Are more cost effective by reducing energy and operating costs.

Use active and designed-in techniques to achieve efficiency and environmental responsibility.

Have the ability to interact with occupants inside them as well as the environment around them.

Maintain a safer and more secure workplace.

Communicate in real-time to supporting infrastructure (i.e. smart grid, broadband, etc.).

Smarter Buildings are well managed, integrated physical and digital infrastructures that provide optimaloccupancy services in a reliable, cost effective, and sustainable manner.



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Smarter buildings enable efficiencies across domains

Energy Management

Energy savings through energy monitoring & management; reduce energy consumption and waste over the lifecycle of the building and increase facility performance in a sustainable manner.


Asset management and performance, utilization, availability and lifecycle management is optimized through asset visibility and operations management across the portfolio of building assets.

Space Management

Space use visibility across the enterprise portfolio of buildings; identify underutilized space and suggest strategies for more efficient use.



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FireFunctionality

checks,Detector service

WaterSmart Meters,

Use / Flow Sensing

HVACFans, Variable Air

Volume, Air Quality

ElevatorsMaintenance, Performance

Access/SecurityBadge in,

Cameras, IntegrationPerimeter, Doors, Floors, Occupancy

LightingOccupancy

Sensing

24/7 MonitoringCondition Monitoring, Parking Lot Utilization

EnergySmart Meters,

Demand response

How does a building become smarter?

Interconnection of Building Systems

Community Services

Transportation, Traffic, Events

Community Services

Transportation, Traffic, Events

UtilitiesDemand Mgmt,

Cost Control

UtilitiesDemand Mgmt,

Cost Control

WeatherCurrent

Predictions

WeatherCurrent

Predictions

Emergency Services

Alerts, Actions

Emergency Services

Alerts, Actions

Commercial Potential

Advertisement

Commercial Potential

Advertisement

Building & Communications Services

Facilities Managem

ent Processes Instrumentation

Inte

lligen

t in

tera

ctio

n wi

th E

xter

naliti

es

PortfolioEstates MgmtPortfolio

Estates Mgmt

OccupancySpace Mgmt

OccupancySpace Mgmt

Waste MgmtTrash/Water/Recycle

Waste MgmtTrash/Water/Recycle

ComplianceEnvironmental reports

ComplianceEnvironmental reports

Tenant ServicesHelp Desk

Tenant ServicesHelp Desk

Asset MgmtLifecycle

Asset MgmtLifecycle

Building ServicesMaintenance

Building ServicesMaintenance

Industry Specific Hospital, hotel, etc.

Industry Specific Hospital, hotel, etc.

Energy UsePassive/ActiveEnergy UsePassive/Active



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Turning thinking into actions

INTERCONNECTED

Efficient Operations Improved ROIDemand Response

Eliminate disparate systems

INSTRUMENTED

Visibility Control Energy savings

Reduce energy waste

INTELLIGENT

Control AssetsReal-time ResponseProductivity

Lower Capex / Opex cost



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Smarter Buildings applications and benefit examples

SMART ISHolistic energy mgmt that enhances the efficiency of buildings and other assets.

St. Regis Hotel:Designed for 4.9% energy cost to revenue compared to average for 5 star hotels average at 8%. Reduced energy cost/revenue 40% vs. similar 5 Star hotels.

SMART ISIntegrated communications and building services that support intelligent operations.

Saint Barnabas Medical Center:Improved asset utilization & staff response times by 90%. Reduced overhead paging by 94%. Enhancing HCAHPS scores by eliminating communication barriers between care teams and patients.

IBM Rochester, MN:A 5% year-over-year incremental energy savings in a facility that has undergone years of energy efficiency improvements, plus 8% annual savings equipment operating costs.

SMART ISIntegration of energy and asset management to lower operating cost.



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Best practices and functions reduce cost and improve operations

Data Center Infrastructure Management

Space and Facilities Management

ENERGYENERGY SPACESPACEOPERATIONSOPERATIONS

Real Estate Portfolio Management

Capital Project Management

Workplace SustainabilityManagement

Real Time Energy Management


Service Management

REAL ESTATE PORTFOLIOREAL ESTATE PORTFOLIO



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Asset deployment, location, specifications, monitoring, calibration, costing and tracking, Preventive, predictive, routine and unplanned maintenance, Labor, inventory and vendor contract management

Automates demand and planned (or preventive) maintenance services and improves service provider management to reduce the cost of maintenance services. Facility assessment tracks and evaluates buildings and assets deficiencies

IBM Maximo Asset Management

IBM Maximo for Service Providers

TRIRIGA Operations

Business OutcomesBusiness Outcomes Solution CapabilitiesSolution Capabilities

Gain visibility in to asset performance, conditions & availability, enhance/improve asset reliability, manage maintenance costs and increase asset uptime

Automate service delivery and maximizes asset investments as part of a total IWMS solution, Facility Assessment uncovers unsafe conditions, aged equipment and cost saving opportunities, Project estimating enhances capital planning and decision making.

IBM SolutionsIBM Solutions

Asset management and performance, utilization, availability and lifecycle management is optimized through asset visibility and operations management across the portfolio of building assets.



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Energy Management

Enables energy investment planning and investment performance tracking

Connects to Building Management Systems, identifies, energy optimization opportunities and established prioritized service requests

Graphical view of heat, power, humidity and other key thermal metrics for better understanding of energy use and thermal conditions

TRIRIGA Trees

IBM Intelligent Building Management

MEO/ITMfEM


Identify the best energy investment opportunities and track results of those investments

Monitor energy systems in real time and prioritize and generate work orders to optimize building equipment energy performance

Improve energy performance of data center equipment and Visualize heat maps in the data center


Energy savings through energy investment planning and analysis, real time monitoring of building and data center equipment; reduces energy consumption and waste over the lifecycle of the building and increase facility performance in a sustainable manner.



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Space Management

Track occupancy, employee and asset data

Create, schedule and execute moves Space Allocations manages space to

cost center relationships BOMA/IFMA proration calculations

insures accurate space accounting and chargeback's

Manage conference rooms and shared resources to improve utilization

CAD Integrator for AutoCAD and Microstation provides bi-directional data updates

Track Executive Order 13327 data requirements and automate OMB reporting

TRIRIGA Facilities

IBM Maximo Data Center Infrastructure Management


Increase space utilization for buildings and data centers

Manage adds, moves, and changes

Internal chargeback based on building usage/occupancy

Reduce Total Cost of Occupancy (an organization’s 2nd largest cost)

Streamline strategic space planning analysis


Space use visibility across the enterprise portfolio of buildings; identify underutilized space and suggest strategies for more efficient use.



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Smarter Buildings is a team sport

Working together to deliver proven solutions for operational efficiency & sustainability

Leverage existing skills, technologies & capabilities across multiple companies to drive practical results and savings

Collaborating on customer projects across many industries

Building Technologies



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Why IBM for Smarter Buildings?

─ IBM’s own global transformational experience

─ IBM Services

Global Business Services has the consulting expertise to bring together business and operational requirements

Global Technology Services has the operational and integration best practices

─ IBM Technology

IBM Systems hardware leadership

IBM Software management and optimization

─ IBM Research

Deep Research Capabilities

Green and Business Analytics Research

─ Partner Ecosystem

Let’s work together to drive real progress in your buildings.


Let’s Build a Smarter Planet:

Smarter Buildings from the Earth Up

Maximo and TRIRIGA offer comprehensive solutions for asset, facility, real

estate and energy management



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TRIRIGA enterprise software and services drive business value

OperationalOperationalPerformancePerformance

Improves the efficiency of real estate and facility management functions

FinancialFinancialPerformancePerformance

Increases financial return on real estate

and facility assets

EnvironmentalEnvironmentalPerformancePerformance

Reduces energy consumption and

green house gas emissions of buildings and facilities

One System, One Truth

© 2011 IBM Corporation Rich Caplow, Director Product Management, IBM May 3, 2011 Smarter Buildings: A smarter way to manage real estate and facilities.

Documents

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smarter way

ibm initiatives

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leading provider of

crossasset class strategy

tivolis strategy

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