Billions (in Canada) and Trillions (around the world) of dollars are being spent each year on the development and renewal of our infrastructure. Roads, bridges, homes, and [commercial, industrial, and institutional] buildings make the physical fabric of our communities. A small, yet growing portion, of this global spending goes to the systems that make this infrastructure work; such as security, mechanical, electrical, and transportation systems.

These systems have always been part of the DNA of the underlying infrastructure for our communities (nothing new there). However, the difference is that they are becoming smarter and more capable to have a profound impact on the performance of the infrastructure. Where historically these systems were subservient to the bricks, beams, and concrete they were housed in; it now seems they are being elevated in importance. The intelligent systems have now the ability to make our infrastructure come to life - and provide greater value to those that depend on it.

The great enabler of this shift is the world of information and communications technology (ICT), and more specifically the Internet and IP networks. Networks become the new addition to the DNA of our infrastructure. We have seen already numerous examples where connected and smarter infrastructure has the ability to positively impact economic, social, and environmental sustainability. My blogs have covered several of these examples, and please keep reading them as there are more to come.

The trend of smarter and more connected infrastructure is unstoppable as every sensor, device, system (and user) will become a node on the Internet and its worldwide networks. We [as in leaders in the construction, design, development, ICT industries, and many other stakeholders] have now the stewardship to channel this transformation into a direction that is repeatable and sustainable. Together we have the ability to (re)build the fabric of our communities through the intelligent use of technology and innovation. As we see this technology and innovation converge with bricks and mortar, we will end up with infrastructure that meets our, and our children’s, rapidly growing expectations in a resource constraint world.

At Cisco Plus in Canada on Wednesday May 16^th, a selected group of leaders in the infrastructure industry (architects, engineers, developers, builders) will gather to discuss the implications of “clicks and mortar”, and the opportunities it will provide to all that are interesting pursuing them. The future is here, let’s now optimize and monetize it, together.

When you are visiting Cisco Plus, please attend also the Business Session “Managing Unprecedented Change with Business Transformation” by Sandy Hogan (Cisco Vice President of Americas Business Transformation) on Wednesday May 16^th at 11am EST.

Canadian Construction Leaders meet with John Chambers on Productivity, Innovation, Opportunity, and Transformation.

There is no doubt we all agree on the uncertainties in life: economic struggles, political instability, environmental challenges, rapid technology advancement, quality of healthcare and education, urbanization, globalization and subsequent competition, productivity, job security and prospects, and on and on. It seems that we’re amidst more market transitions than ever before. This is challenging, especially for those that merely seek to survive. What is making some of us very nervous is turning into opportunities for others.

Yes; the construction industry has been struggling with declining productivity for years. Yes, the new workforce in construction and real estate is bringing iPad’s to work and are expecting to use them for business also. Yes, no construction project is alike and—at the surface— requires customized processes. Yes, the construction industry is one of the world’s most fragmented industries…it’s hard work to get millions of companies in the construction value-chain to think alike and embrace transformation like we do. Yes, it is probably one of the few industries left standing that has defied the possibilities of technology to drive innovation, transformation, and productivity opportunities. But, maybe it’s time to move beyond the excuses [we’ve heard them all before].

It was the ‘let’s do it‘ attitude that was clearly noticeable during a CEO roundtable discussion last week at @CiscoCanada between Cisco’s President and CEO John Chambers, and nine distinct leading executives of the Canadian construction and real estate industry representing property managers, contractors, architects, engineers, and developers. There is no better time to spring into action then NOW. The innovation is happening today and the proof points are resounding: one participant talked about his 600,000 SF commercial tower that will demonstrate the latest in thinking and capabilities that provides a true 21^st Century environment for its tenants; another participant talked about her new addition to a large campus whereby IP has become the new fourth utility and will impact the business of education that takes place in the new building; a third participant illustrated how the Network is driving cost from his developments while starting to provide new and exciting opportunities for the operator and clients in his buildings.

With technological (r)evolutions in collaboration, video, and cloud as the building blocks for the construction and real estate transformation—the industry itself needs to get behind it and lead by example, lead by scale, and lead by fear. The market is forcing the construction and real estate to wake up and change its gears. Maybe it’s true that doing so 3 or 5 years ago was too early; but it is also understood that waiting 2 or 3 years may be too late. So, what do we need (and it’s all out there already, let’s repackage it if necessary): COLLABORATION – rethink how the conventional industry works; there are many industries we can learn from that have embraced 21^st century technologies to support 21^st century collaboration, teaming, and productivity. STANDARDS – the LEED standard, despite its flaws, has been able to move a market; possible adjustments in MasterFormat. BENEFITS – is everyone really aware of the benefits for CAPEX, OPEX, operators, tenants (etc) of smarter and connected buildings. METRICS – clear and consistent ways of measuring impact and success. TRAINING – certification for industry professionals and incoming workforce. PARTNERSHIPS – new, innovative, and unconventional relationships that jointly move the ball forward and start the transformation machine. LEADERS – we don’t have to wait for broad industry consensus: we need leaders… and I saw nine sitting in our office last week.

It’s time to lead, follow, or get out of the way. If you’re just seeking to survive…you may as well get out of the way…or follow. Just don’t get left behind !

For more, visit www.rickhuijbregts.com

According to unpublished estimates from the International Energy Agency [IEA], greenhouse gas emissions have increased by a record amount last year to the highest carbon output in history. Last year, a record 30.6 Giga-tones of carbon dioxide poured into the atmosphere, mainly from burning fossil fuel, a rise of 1.6 Gt on 2009 [IEA estimates]. Emissions from energy fell slightly between 2008 and 2009, from 29.3 Gt to 29Gt due to the worst global economic recession in 80 years. The IEA has calculated that if the world is to escape from most damaging effects, annual energy-related emissions should be no more than 32 Gt by 2020. If this year’s emissions rise by as much as 2010’s, that limit will be exceeded nine years ahead of schedule [the Guardian, June 9].

Take into the consideration the status of the supply (generation) side of energy: 80% of power stations like to be in use in 2020 are either already built or under construction. These account for 11.2 Gt emissions (out of 13.7 Gt in the electricity sector) that are “locked in”; and thus savings will have to be found elsewhere. Also, the world is changing its mind on nuclear power after the Tsunami damage at the Fukushima power plant in Japan. As a result, Germany already halted its reactor program, and other countries are reconsidering nuclear power. Nuclear is one of the major technologies for generating electricity without carbon dioxide.

These are glooming facts; especially if you take into consideration the mass urbanization of the rapidly growing world population. More than 70% of all energy today is consumed in cities; and it is expected that in the years to come more than 500 M will migrate to cities to seek economic and social prosperity. The American Institute of Architects [AIA] has predicted that of all the functional real estate that we require in 2030 to accommodate such dramatic shifts , more than 70% does not exist today. The anticipated build-out that we require to support the growing and urbanized global population will even further jeopardize chances to salvage our environmental predicament.

Now, I happen to work for a company that has a strong vision and available capabilities to address or impact many of the problems in front of us: from generation to distribution with smart grids, to consumption and supply with smart buildings. And we’re certainly not alone: our partners show no less impressive innovation and capability to contribute towards the solution. What’s truly missing is the coming together of industry, institutions, and government, and the alignment of investment and focus to get stuff done—leadership, ownership, policy, direction. It’s time for the “Urban Electronic Nervous System” as Martijn Moerbeek calls it, to assist in monitoring, managing, controlling, optimizing, and minimizing the flow of everything: people, electrons, water, traffic, etc. The will and innovation is there. Technology is the foundation. Let’s put it to work.

In a stunning event last month (at least, to me), Ontario had to pay Quebec and the US more than $1.5M to have them take excess energy that was produced. The extreme “warm” weather was blamed for the over-production and reduced demand of energy in Ontario. Really, what are we doing? This $1.5M of our tax payer’s money could have been put to better use in education, healthcare, or even energy reform.

Clearly, once again, this demonstrates that the system is broken; both the supply and the demand side. Why was the system not able to anticipate the change in consumption? Consequently, why was the production of energy not adjusted to take this reduction into consideration and thus only produce what we actually need?

You would think that all the information one needs to make such decisions is readily available. There is weather information (we knew it would warm up); there is consumption and demand information (we have trending data of the buildings and others that use energy—at least, so you’d think); aren’t there analytics out there smart enough to see the correlation and trigger a signal to the producers of energy? Of course there are.

Surely, this is a topic that warrants many conversations—so let’s just focus on the demand side. The buildings that we build and occupy consume their fair share of energy, more than 40% of all consumption to be precise. They’re also known to be not effective in optimizing its energy performance. It won’t be the first time that we seen baseboard heaters trying to heat up a space while at the same time air-conditioning systems are trying to balance it out in order to make for a comfortable environment. This (among much other inefficiency) is proving to waste 20% to 30% of our energy in buildings. Now, if we would like to control this, we need to monitor it 24/7, thus measure it in real-time, and consequently we will need to have ubiquitous access to energy and usage information in our buildings.

Convergence and integration allows us to tap into the wealth of information that is currently being stored in disparate systems that make our buildings work. Once we have consistent access to all this information (regardless of its source and regardless of its protocols) we can add analytics to the opportunity in front of us. It is this intelligence that makes our buildings smarter and more dynamic part of its environment. Building information can correlate with data from the weather channel as well as real-time utilization data. Combined, we can add policy to our built environment that will automatically optimize the energy performance and productivity of the building and the people and systems in it.

Turn lights off if nobody is using the space and adjust the thermostat accordingly. Lower blinds if the sun glares into a floor and results air-conditioning to work overtime. Optimize lighting levels based on day-light harvesting and the appropriate temperature levels based on occupant preferences. Inform the users of the space of their individual contribution to the buildings’ energy consumption and consequently trigger behavioral change that will even further reduce the energy demand. All this and more can be reactive as well as pro-active. Predictive modeling can actually recommend environmental settings that will even further drive optimization in the built environment.

All this, and much more is possible if people, systems, and devices become connected over one open and common infrastructure: the building information network, or the ‘fourth utility’. Let’s have them all speak the same language and give them the ability to interact with one another as they collectively contribute to the optimization and productivity of our spaces.

Now, how does this resolve the problem that Ontario faced last month: having to “beg” our neighboring provinces and country to buy our excess energy?  Well…simple: you make the demand side of the equation smart enough that it can intelligently inform the supply side as to when and how much energy needs to be delivered to meet its performance requirements. The capabilities and technologies that enable this two-way communication are largely available today. Then, what is it that prevents this from happening?