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INTELLIGENT BUILDINGS

What Digital Transformation Really Means

for Commercial Real Estate

Casey Talon
Principal Research Analyst
Navigant Research

avigant Research recently published a white paper, 10 of the intelligent building concept. More specifically, IoT is a
Trends for Intelligent Buildings in 2017 and Beyond , framework to provide a pathway for the digital transformation
1
Nhighlighting the benefits of digital infrastructure and of buildings. Wireless devices, the data communications, and
analytics. This kind of intelligent building design gives stakehold- software analytics that are the foundation of an intelligent
ers direction for cutting significant costs, attracting and retaining building technology are increasingly positioned as IoT solutions.
tenants, and boosting bottom lines. The real estate industry faces There is an opportunity to leverage the cross-industry discussion
a crossroads in which technology will differentiate the leaders of the topic to help promote adoption in the real estate industry.
from the competition. In particular, intelligent building tech- Many businesses are exploring how IoT helps reshape customer
nologies can help the real estate stakeholders redefine relation- transactions, but it is also redefining facilities management.
ships—facilities management and leasing can be transformed Diving into the technology, the issue of cybersecurity is
from a source of periodic contention to a source of trusted, important for the real estate industry to prioritize because the
ongoing partnership. cost-effective wireless devices and communications infrastruc-
While the intelligent building technologies market is not new, ture that feeds intelligent building analytics to deliver new
Navigant Research asserts that the compounding results of business insight must be secure. The new threat of network
evolution in technology, delivery, and demand have set a tipping security breach via intelligent building technologies puts facilities
point for the digital transformation of commercial buildings. Here management in a new spotlight in the board room.
are examples of how the three forces driving digital transforma-
tion will affect commercial real estate (CRE). #2 – Delivery: Explore the Path Toward Deeper Engagement
The real estate industry can see IoT and the trend toward
#1 – Technology: Deploy Solutions that Hedge Security Risks the digital transformation of facilities as a threat or as an
while Amplifying the Bottom Line opportunity. There are multiple layers of threat from new
The Internet of Things (IoT) conceptualizes the integration of competition for services to new metrics defining the value
data, communications, and information in a way that changes of commercial buildings, but the opportunity is bigger. The
decision-making. IoT is a horizontal concept that can be applied size of the commercial market and the requirements for IoT
to many industries, and can be thought of as a new articulation intelligent building solutions suggest that no one vendor will

Summarizing Cybersecurity Threat Vectors and Countermeasures
Vector Description Action
Physical Connected devices (gateways, controllers, sensors) represent a Isolation provides a parallel rather than joint network in the building to protect
potential point of entry throughoutw the IoT platform. sensitive business data from the breach risks via operational systems.
Organizational Intelligent building systems are designed to support a broader set of Authentication rules ensure users access the aspects of the solution intended.
stakeholders; and therefore there can be more gaps via process and Requirements for passwords and login protocols can help minimize risk of breach
personnel. from unauthorized personnel.
Application BEMS, and specifically the analytics, provide the value for IoT in Adding new applications to the building network can create unexpected security
buildings by delivering the actionable insight. The applications that risks, which demonstrates the importance of including IT management in the
drive the business improvement are often integrated with building intelligent building investment process. When IT is involved, it ensures the
systems and IoT infrastructure for critical data. applications are monitored and tested (even on a regular testing cycle) as other
business applications on the network.
Processing The servers onsite or the data center that hosts the intelligent building The same security requirements and protocols for other business processing solutions
analytics is a potential source of risk. should be investment criteria when evaluating intelligent building solution options.
(Source: Navigant Research)

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