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"GreenTips" is a monthly Kiplinger Recommends feature from Greener World Media Inc., which writes environmental news and advice for business in a variety of Web-based publications, including GreenBiz.com, GreenerComputing, ClimateBiz and GreenerBuildings. Scott Boutwell is a former architecture, engineering and construction (AEC) executive of URS Corp. and Oracle, providing technology commercialization and strategy services to IT and clean tech firms as well as to global AEC firms. His blog covers anecdotes and growth strategies in the sustainability and engineering design sectors.The terms "cleantech" or "green technologies" have been applied to a wide array of processes, technologies and services. Within this overall market space, there exist a number of specific target market segments for green technologies -- transportation, energy development and manufacturing are just some examples -- that are undergoing an innovation boom as a result.
The buildings and facilities segment ranks as one of the largest potential markets for cleantech, and shows the kind of changes that new technologies can bring about, changes both beneficial and disruptive. Given the size and projected growth of the market for green buildings around the world, there are plenty of opportunities and potential players seeking ways to leverage new technologies for use in new construction and renovations.
The building and facility industry is undergoing radical change today as owners demand more project visibility, lower costs, better risk management (scheduling and costs), and increased use of these new technologies in projects. The potential from these changes are overall highly beneficial: They will allow for less waste, more efficient energy consumption, and ultimately lower costs over the lifecycle of the facility, from design and construction to operations.
The changes occurring are quite similar to the changes that the aerospace and manufacturing industries went through approximately 25 years ago: Disparate and isolated work groups and "point solution" technologies were not efficient. The introduction of external market drivers in the form of international competition forced dramatic efficiency improvements via new technology adoption, and spawned new collaborative work processes.
The Basics of "BIM"
The rapid, if uneven, adoption of Building Information Modeling (BIM) in the buildings industry has changed the way facilities are designed, constructed, and even operated. Simply put, BIM is a digital rendering of the physical and functional characteristics of a facility. More than just the lines and arcs associated with traditional computer-assisted drawing (CAD) tools, BIM includes the "intelligent objects" of a structure, such as spatial data (3D), unstructured data (text), and structured data (databases, spreadsheets), as well as new views like scheduling and cost information (termed 4D and 5D, respectively).
This type of technology, with its associated benefits of visualization, built-in intelligence and simulation is a dramatic step forward from 2D CAD, the current technology used for design and construction. Patrick Suermann, a testing team leader for the National Building Information Modeling Standards Committee, describes BIM as "the next evolution of CAD maps," explaining that it allows for the design of a fully functioning, virtual model of facilities of all sizes.
Why is the BIM adoption trend important for green technology companies to understand and incorporate into their market strategies? The use of BIM -- both the technology and changes in increased collaboration -- allows for significant exchange of information by all stakeholders involved over the lifecycle of the facility: owners, architects, engineers, contractors and operators. This information includes that associated with green technology adoption: efficiencies in energy use, increased emphasis on environmental health and the drive to generate less waste.
"Not only can BIM optimize building performance via less waste generation during construction, and improved energy management during operation," it can accelerate certification as a green facility, explains Buddy Cleveland, senior vice president of applied research at Bentley Systems, a leading technology provider in the architecture, engineering & construction (AEC) market. Such independent certification is becoming an increasingly important PR and marketing tool, since many businesses are seeking out vendors who provide environmentally friendly products and services.
BIM and Green Tech Benefits
To Building Owners & Operators
BIM provides the following benefits to stakeholders, with opportunities for green technology to add value:
• Risk Management: BIM may provide more visibility into projects and allow owners to manage risk through a collaborative and inclusive process. The inclusion of green technologies allows stakeholders to collaborate as well in this process.
• Materials Management: Developing bid quantities and verifying them in a BIM process allows for more efficient material use, as well as opening opportunities to use more energy efficient and environmentally friendly materials. BIM may align scheduling and material quantities for better cash flow analysis as well.
• Marketing & Branding: BIM provides a visual representation of a facility, and encourages collaborative review and discussion by stakeholders and public alike. Inclusion of green tech furthers the visual representation, by illustrating energy saving concepts and adherence to key green certifications, such as LEED. Green branding is thus improved as well.
• Portfolio Management: For owners of multiple facilities or enterprise level owners, BIM allows for the re-use and purposing of models to standardize design and construction, thus driving down material use and costs, as well as technology applications across a portfolio.
• Optimization of Building Performance: BIM allows for integrated facility management, so that energy use, occupant health and comfort, and space planning may be monitored and improved upon.
According to the 2007 Green Index Study conducted by Autodesk and the American Institute of Architects, 44% of architects surveyed are already using BIM in projects. The report went on to state that architects incorporating BIM are more likely to adopt green building design software practices such as HVAC energy analysis, energy modeling, and also the evaluation of more environmentally friendly building materials.
But across the AEC industry, the general interpretation, use, and even terminology of BIM are still in an early phase. BIM training, cultural acceptance (in the AEC sector), and business process modifications are all unique challenges that companies will have to overcome for continued adoption in the marketplace.
Strategies to Leverage BIM
BIM is not just the adoption of new technology, but also incorporates new collaborative workflow. There is more emphasis on collaborative design and planning in the beginning phases of a project, so that costs and risks in later stages like construction and operations (where most of the costs are incurred) may be managed and contained. Green tech vendors should be involved in these early planning stages, so that a realistic assessment of cost savings and improved environmental performance is identified. Also, they can add value to the optimization process (conducting "what if" scenarios), which may lead to additional savings and benefits that may not have been readily apparent.
International markets are proving to be quite viable for BIM deployments and green tech as well. Increasing awareness of global warming, greenhouse gas emissions, and sustainability has driven significant market opportunities in international markets of Europe and Asia Pacific as well. John Kennedy of Green Building Studio concurs, and provides advice to green tech start-ups: "Look outside the U.S. to both the [European Union] countries as well as to Australia."
Buddy Cleveland mentions that the U.K. facilities market is farther advanced than the U.S. market, in terms of green certification tools. "New regulations for improving building performance require quantitative assessment of carbon emissions; not just a qualitative assessment," he explained. In this market, it is conceivable that green technologies may assist to "pull" the growth and adoption of BIM, given the regulatory climate.
"Go to Market" strategies should also reflect the importance of leveraging established companies in the AEC space for sales, branding, and deployment channels. A key component to this strategy: identify a technology partner who may bring brand awareness, marketing, and channels access. "Plan to partner in order to scale your business," says Kennedy, who has partnered with a number of leading AEC software companies.
It should also be noted that the "exit strategy" for successful green tech start-ups could be acquisition by a larger established software provider in the space. Kennedy's Green Building Studio was recently acquired by Autodesk, and Bentley Systems acquired a smaller software firm last year that it had partnered with called Hevacomp, which provides MEP (Mechanical, Electrical & Plumbing) and energy analysis modeling. Both Autodesk and Bentley are advocates of BIM adoption, and one would assume that these new acquisitions will allow them to integrate green technologies into BIM software platforms.
Similarly, green technology start-ups should evaluate partnering opportunities with leading AEC firms, especially those with prominent BIM practices. These companies are consistently searching for competitive differentiators, as well as identifying new business lines, especially those that may generate higher profit margins. Some global firms are also creating sustainability consulting practices, which can be separate from their building design practices. A potential strategy for green techs in this case may be identifying client and market opportunities where both BIM and sustainability practices may be utilized; driving more revenue to the AEC firm, and thus more opportunities to partner with them.
While targeting larger AEC firms to partner with, Kennedy also feels that the small, niche AEC firms should be approached as well. "Smaller AEC firms are transitioning to BIM more easily than the larger firms," he mentions. "Bigger AEC firms have some built-in redundancy in terms of 2D and 3D tools; many rely upon 3D for modeling and design, but use 2D for actual construction."
This summary was drawn from a longer piece by GreenerBuildings.com. To read the entire article, including a discussion of how federal government construction is driving innovations in BIM and how BIM can increase use of green technologies, click here.
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