IoT Connects Buildings, Machines and People to Improve Performance

The term “Internet of Things” has been around since 1999, when it was used as a title for a presentation describing the use of RFID in the consumer goods manufacturing supply chain.¹

The term now applies to a myriad of new capabilities. Everything from a smartphone application that reads what you pick up from the grocery shelf and automatically charges your credit card (which means no more waiting in checkout lines at Amazon Go stores) and Marriott’s use of Echo speakers (which enable hotel guests to have Alexa order room service, ask for more towels or get restaurant recommendations) – that serve as a personal, in-room concierge. 

The basic definition of IoT is the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data. In facilities management, sensors collect information in areas such as energy use, equipment performance, lighting and temperature management. 

“There is a high percentage of retail FMs using IoT in the broadest definition, with web-based and mobile applications helping to improve efficiencies, but a great deal of the data is siloed – captured and kept separate from other data,” said Tom Kay, Vice President of Sales and Marketing for ENTOUCH. To fully leverage the technology, FMs need to change the traditional perspective of reacting to information and adopt a culture of proactivity, which means combining data from multiple systems to get a holistic view, he said. 

When data is aggregated and analyzed to predict potential breakdowns, increased energy use or maintenance requirements, the data is actionable, and can be used to address issues before they become emergencies or affect the customer experience, Kay pointed out. “This turns the facilities management department into a cost avoidance center as opposed to a cost center,” he said. 

Facilities management has shifted as a result of access to technology that can monitor a building’s systems, said Chris Mendez, Facilities Category Development at Staples. “These days, FMs often manage multiple sites from a home office with technology that captures data about lighting, HVAC equipment, fleet maintenance and more,” he added. “The ability to track how many hours the burnishing machine has been used not only helps an FM predict when maintenance must be performed but also identifies underused machines that might be needed at another location.” Ensuring the right number of machines are at each store helps FMs avoid unnecessarily purchasing extra equipment.

Bathroom maintenance also benefits from IoT, Mendez said. Monitoring paper towel, hand sanitizer and soap dispensers to determine when they need refills allows FMs to schedule resupply trips appropriately. Clean, well-stocked bathrooms are important to retailers, he pointed out. In fact, in the commercial property sector, 73 percent of tenants report that a poorly maintained bathroom equals poor building management, and 60 percent say an unhygienic bathroom lowers their opinion of the entire building.²

There are various solutions that offer sensor technology that relies on predictive analytics to identify when soap and sanitizer dispensers require refills, which supports creation of better service routes and ordering the right levels of inventory at the right time. 

The amount of data collected by smart systems can be overwhelming, which increases the importance of analytics to FMs, Kay said. “Only about 1 percent of the deluge of data collected by smart building systems can be consumed without predictive analytics programs,” he explained. The use of predictive analytics applied to data collected in all systems throughout buildings allows FMs to make intelligent decisions about maintenance, repairs, capital investment and renovations. 

Investing in an enterprise management platform that pulls all of the data into one location in a format that enables the use of analytics software does require capital investment, but the return on investment is tangible and easily demonstrated. “Most FMs are familiar with energy savings programs that predict high periods of use but total building automation systems that rely on IoT technology to control HVAC and lighting systems to reflect actual need can lowers costs,” Kay said. 

It is not just energy costs that can be reduced with IoT technology. “Improving maintenance reduces not just time and labor costs but also improves the overall customer experience, which results in improved results throughout the organization,” Mendez said. Knowing how often to schedule maintenance visits based on store traffic improves efficiency and eliminates unnecessary visits, he said. “For example, after a certain number of people have used a bathroom faucet, it needs to be checked to see if the handles are loose,” he explained. Building that information into predictive models for maintenance checks allows an FM to schedule visits based on store traffic rather than a one-size-fits-all schedule for all stores, which eliminates unnecessary trips and frees staff to handle other calls.

Although IoT is a hot topic right now, Mendez warned FMs to carefully research smart systems. Find out if the technology’s benefits address a gap in information that is needed and if it will improve overall facility management, he advised. “Don’t get caught up in the terminology. Focus on the actual solution and whether or not it is what you need for your situation,” he said. “Be sure the new solution complements other capabilities.”

The continual emergence of new smart technology that can add to information available to help FMs better manage their organizations may be daunting, but Mendez reminds FMs to focus on the savings in time, labor and supply costs that remote management and predictive analytics can provide. 

The emergence of IoT in the FM arena is another example of how the FMs role in retail is changing, Kay said. “FMs also have to fill the role of data scientist and put systems in place to extract data from multiple systems and integrate data to provide a complete picture of the health of the buildings in the retail organization.” 

By: Sheryl S. Jackson