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Editorial

Figure 2. Rank the following potential barriers to adoption for smart building solutions – Rank #1

while only about one-third of market participants charac- decision makers prioritize across their organization. The
terize themselves as experts on the concept, over 60% same solution that can measure operational improve-
believe adopting a smart building strategy is a competi- ments that help facilities teams be more efficient in their
tive differentiator. The decision makers in the commercial repair and maintenance approaches, tracks space use
office segment are even more bullish, with 74% reporting to help real estate executives save on leasing and build-
the competitive advantage of a smart building strategy. outs, and monitor energy and demand management to
These results indicate there is room for continued market help sustainability leads meet their corporate climate
education and outreach to support the majority of the goals.
market who understand there are significant benefits
associated with these solutions. From Navigant Research’s ongoing work, we recognize
the challenges of managing the investment, deployment,
Commercial Office Leadership and Opportunities to and use of smart building solutions because of the shift
Push the Market Forward in expectations from human capital. For years operational
You are a part of the leading edge in smart buildings—you technology (OT) teams and IT teams have worked in
are reading this article and joining the forward-thinking isolation. As smart building approaches became familiar,
conversations at IBcon 2019. You will hear the promise we saw these silos break down. For many customers, the
of smart building investments from innovators and early process of integrating IT and OT remains daunting, if not
adopters in real estate and explore the benefits of these impossible. Smart building solutions providers have rec-
investments. Our research validates this assumption, rec- ognized this challenge and introduced a host of managed
ognizing that the commercial office segment is leading services and offerings to partner with owners looking to
the charge to transform facilities into smart buildings, as begin the journey.
is illustrated in Figure 1.
Pathway for Partners to Accelerate the Transformation
Navigant Research has tracked an evolution of the smart of Commercial Offices to Smart Buildings
buildings market: there has been a significant shift in Smart building solutions providers see the benefits of
supply-side focus from technology to business cases new customer engagements built around managed ser-
that will help drive customer adoption. For years, energy vices and subscription offerings—recurring revenue is a
efficiency was the primary value proposition because of big win for the bottom line. Figure 2 shows the additional
the clear-cut and straightforward ROI tracked by smaller considerations to initiate these deeper, ongoing smart
monthly utility bills. Today, customers expect more. As building customer engagements.
they become more familiar with the idea of smart build-
ings—the benefits of data-driven insight, connected sys- The survey respondents ranked the barriers they face
tems, and automated system optimization—the narrative for adopting smart building solutions. The results show
is shifting to broader business justification. that while business disruption for installation/integration
commonly ranked as the most significant barrier, 75% of
The data, insights, and operational changes smart customers are grappling with other significant barriers.
building solutions deliver translate into metrics that key This finding underscores the confusion in the market and

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