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Re-orienting real estate - Technology: building smart - EY - India

Re-orienting real estate

Technology: building smart

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A smart building is an integration of building, technology and energy systems.

The use of innovative technology could help reduce costs through energy saving, alternative materials and innovative construction methodology. It could also help a business gain a competitive edge by allowing automation and the use of information technology.

Smart buildings


A smart building is an integration of building, technology and energy systems. These systems may include building automation, life safety, telecommunication, user systems and facility management. In smart buildings, all the systems of the building run over ethernet or IP to allow people, systems and objects to interact innovatively.

Our perspective on Ecosystem - Deployment of Information Communications Technology (ICT)


To ensure the successful deployment of ICT in real estate, technology providers work with real estate developers at each stage ranging from idea generation to execution. The technology providers leverage vertical solutions built on the network as an open, integrated platform, a broad ecosystem of partners and innovative business models to change how communities are designed, built, managed and renewed. Steps in this process include:

  1. Initial feasibility
  2. Concept design
  3. Schematic design
  4. Detailed design
  5. Construction
  6. Launch
  7. Operation

These steps are carried out in a phased manner throughout the ICT deployment cycle.

EY perspective on Ecosystem- Deployment of Information Communications Technology (ICT)
EY perspective on Ecosystem- Deployment of Information Communications Technology (ICT)

Real estate developers are open to adopting a managed services model to leverage the expertise of the technology provider and the SI to deliver an S+CC solution set. However, they are faced with the following challenges:

  • Threat of SI/technology provider not adhering to terms of SLAs
  • Relaxed attitude of the SI/technology provider over time
  • Weak perception of automation systems
  • Technology obsolescence
  • End users not equipped to handle automated systems
  • Integration challenges
  • Deciding extent of automation and number of features
  • Price sensitivity
  • Challenges in selling new experiences and technology

Model for managed services play
Model for managed services play

Take away for India


Based on the managed service model envisaged, we, along with Cisco, have conceptualized an operating model. In this model, the technology vendor and the SI will collaborate to establish a managed service entity. The suggested model will also help address challenges faced by RE developers in the deployment of such solutions and allow the necessarily support after deployment.

Given the trend towards RE firms looking for additional revenues both from value add to properties and recurring revenues from services, it is expected that S+CC type services will grow and become integral to every real estate development in the near future.

 


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