Most of us have only seen the very beginnings of the Internet of Things. When our cars sense us approaching and light up or we can adjust our homes’ temperature from our smartphones, we’re only taking baby steps into an increasingly connected world.
“I would say it’s probably happening far faster than anyone realizes,” said Daniel Burrus, a futurist, blogger, bestselling author and noted commentator on all things digital.
“The opportunities and disruptions are coming faster than anyone realizes. The curve is a straight vertical line.”
For owners and managers of commercial and industrial properties the implications and possibilities are enormous.
In simplest terms, the Internet of Things refers to a web of connectivity between machines, between sensors and machines and between it all and people. It’s about automation. It’s about real-time analytics.
It’s about saving money, saving time and,
in some cases, saving lives.
It goes far beyond automatically closing blinds or tinting windows when the sun comes out.
“I think we are only scratching the surface,” said Himanshu Khurana, director of global innovation for Honeywell Building Solutions.
Khurana sees immense possibilities in helping property managers run, market and maintain their buildings. And some of his and Burrus’ ideas are offshoots of today’s typical security cameras, as well.
Consider: today’s security systems use cameras connected to monitors and recording devices. If a security guard isn’t watching the right monitor at the right time, the best you can hope for is a recording after the fact to try to see a perpetrator’s face.
Yet, what are the possibilities if nobody needs to be watching the video for you to know a crime is underway? Think that would be of interest to a high-value retail tenant experiencing a wave of shoplifting?
Burrus said combining wireless cameras with cloud-based computing allows for applying analytics in real time to security footage. First off, such a system could easily include profiles of known criminals, using facial recognition to tip off security. Secondly, such technology could also determine patterns of suspicious behaviour and alert security to take a closer look.
“It changes security from just capturing images to use after the fact to real-time analytics you can use for prevention,” Burrus said.
It’s not all about doom and gloom, however. Such analytics can also be employed to maximize the value of a particular retail display, for instance. Burrus said cameras could watch patrons as they pass the display. Does it catch their eye? Do they buy an item or only pick it up to look at it and put it back? With such analytics, stores wouldn’t have to wait a week to find out a display didn’t move any product.
Khurana takes it a step further; envisioning systems that let property managers and their tenants enhance the experiences of their customers.
Let’s assume your property is an airport, with millions of passengers each year. Facial recognition technology could help your airline tenants know when high-value clients have entered, offering the opportunity to reach out to those clients and help them with baggage, directions, concierge services or check-in. Automatically.
“You might send him a text saying ‘Welcome to the airport. Just so you know, the lounge is across from Gate 9,’” Khurana said.
Sensors in the Internet of Things can include everything from cameras to devices that can detect plumbing leaks, electrical faults, the location and movement of people, temperature, water levels — particularly in areas water shouldn’t be — gas leaks and unexpected movement in a structure.
Imagine a system that detects and then kills power to a particular electrical wire on the verge of shorting out, that your building’s plumbing is leaking before it causes millions of dollars in damage or your gas line has sprung a leak before there’s an explosion.
In such an instance, the gas could be shut off and preventive measures, such as accelerated ventilation, could be implemented.
Why light an entire hallway if nobody is walking there? With Internet of Things technology, sensors could turn on lights to match a person’s progress through the space. “The city of Lansing, Mich., was able to save 70 per cent on energy costs by using this smart lighting,” Burrus said.
Khurana says such sensors could also identify which areas of a building are being used, and where a manager might find and book an empty conference room to host a meeting. The Internet of Things can also be used to direct people arriving at your business.
“Google Maps might do a great job getting me to the office building, but once I open the front door, I’m lost. IoT can help me find where I need to go.”
Perhaps more importantly, sensors could be invaluable in case of an emergency. Imagine an evacuation system where staff can use their smartphones to find the safe way out, or where rescue personnel know exactly where individuals are trapped.
For Surabhi Kejriwal, the real estate research leader at the Deloitte Center for Financial Services in Mumbai, India, the biggest benefit of the Internet of Things is measured in dollars.
“The real value of the data lies in using it to generate new sources of revenue,” she said. “For example, data on people moving within a building can potentially be sold to advertisers or urban planners to help them
in their decision making.
“In another instance, commercial real estate companies can sell building performance information to institutional investors to allow them to make informed investment decisions.”
She also sees benefits on the human side.
“You can increase staff convenience by designing more comfortable and customizable workspaces, backed by insights on staff interaction and movement captured through sensors,” she said. “You can also help improve workplace efficiency by automating redundant tasks, such as swiping access cards at several places.”
The technology can also be an important marketing tool, helping property managers attract high-tech anchor tenants, providing a competitive edge in marketing to potential retail tenants, both from the security possibilities and from the data on foot traffic, Khurana said.
All these possibilities are not onerously expensive, either. Burrus pointed out the technology is now driven by secure, cloud-based computing, and the sensors and cameras can all be wireless — using even cheap 3G cellular technology or WiFi-like routing — eliminating what was often a costly labour bill to run wires and opening these possibilities to owners of existing buildings.
“When you pull out your smartphone, the capability isn’t in the power of the chip inside your phone, it’s in the intelligence in the cloud,” he said. Cloud-based computing uses storage, bandwidth and computing power far beyond what a typical landlord could own, but spreads those costs out over many clients.
Cybersecurity is a constant consideration, but Burrus said advances in security are helping to combat hacking.
“In today’s world of cybersecurity, the systems getting hacked are actually the older systems,” he said. “If we could get rid of the old systems, we would make it far more difficult — notice I didn’t say impossible — to hack systems.”
Meanwhile, Khurana’s approach is, in a sense, very humanistic. Instead of looking at the technology, he asks, “How can this technology help us reimagine the experience” of work, of living, and of managing commercial properties.
Most interesting, he sees the technology itself not only driving that reimagination, but setting its course, as well. Those sensors, cameras and machines that power today’s buildings can also be used to gain a clear understanding of how people actually use those structures.
“You reimagine those experiences based on the personas of the people,” he said.
The many possibilities of cameras and facial recognition carry with them some important ethical issues, said Prof. Arthur Schafer, an ethicist at the University of Manitoba.
“In each case, the issue of knowledge and consent seems relevant,” Schafer said. “In other words, do these people know they’re being singled out, either for surveillance or VIP treatment? Do they have an opportunity to consent?”
In the case of “known criminals,” Schafer asks: “If they have paid their debt to society, are merchants or building managers entitled to treat them prejudicially once they are living again in society?”
Questions also arise over how much information is being compiled, how it is used, whether it expires, who has access and will it be used to exploit individuals, Schafer said.
“You are describing what some would call a ‘surveillance society,’ in which private corporations or governments hold vast amounts of data about individuals,” he said. “Critics sometimes label this the ‘Big Brother Society.’
For those in property management and construction, a growing demand for the Internet of Things technology means planning infrastructure to accommodate almost constant change.
Fortunately, much of the connectivity in the future will be wireless, but to maximize flexibility, consider installing the fastest and most broadband Internet connection available and design mechanical rooms, electrical service panels and wiring and communication networks to allow for future upgrades.