Presentation om "Digitaliseringen förändrar driften av fastigheter – vilka möjligheter och risker medför detta?" av Niclas Elfström EY.

1. Page 1
Niclas Elfström

2. The better the question. The better the answer.
The better the world works.
Digitaliseringen förändrar driften
av fastigheter – vilka möjligheter
och risker medför detta?
OfficeInsights, 9 februari
Niclas Elfström, EY Advisory services

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Three ”mega trends” will radically change how we are
working with RE & FM
Digital RE & FM New Sourcing
Business Models
New ways of working
within core business
Source: EY Advisory, Workplace Solutions

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Of senior executives
agree that data should
be at the heart of
decision making,
Gartner, 2014
81%
Increase in
operational efficiency
through effective
collaboration,
Information Week, 2013
131%
Of business relationships
managed without human
interaction by 2020,
EY, 2016
85%
Digital trends are changing the way we
work
Future RE &
FM
Environmental
impact
Asset
control
Flexibility
Productivity
Employee
satisfaction
Globalization of companies
requires a workplace that
is designed to facilitate
knowledge sharing and
virtual company
collaboration
Digitalization trends
such as mobility,
Internet of Things,
analytics, cloud and
robotics
Increasing speed of digital
transformation and
disruptive technology both
to drive growth and
internal efficiency
Cloud solutions for
better knowledge and
information sharing
50 billion connected things
will be in use by 2020 in e.g.
buildings, on wrists etc. The
vast amount of data can
significantly improve the
business
Increasing number of
virtual meetings. 100% of
video conference users
say video conferencing
helps them accelerate
decision-making
Reduction of energy
consumption through
updated automation
and sensing
technology by 2020
EETimes, 2014
20%

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Similarly, processing costs have declined by nearly 60X over the past 10 years, enabling more
devices to be not just connected, but smart enough to know what to do with all the new data
they are generating or receiving.
Smartphones are now becoming the personal gateway to the data, serving as a remote control
or hub for the connected building, connected car, or the health and fitness devices consumer
are increasingly starting to wear
With Wi-Fi coverage now ubiquitous, wireless connectivity is available for free or at a very low
cost.
As voluminous amount of unstructured data will be generated, the availability of big data
analytics is a key enabler.
Scalable, flexible software through cloud solutions is a key enabler.
The cost of bandwidth has also declined precipitously, by a factor of nearly 40X over the past
10 years.
Sensor prices have dropped to an average 60 cents from $1.30 in the past 10 years
Affordable sensors
and Microcontrollers
Affordable bandwidth
Drop in compute and
storage cost
Smartphones
Ubiquitous wireless
connection
Big data technologies
Proliferation of cloud
infrastructure
The rapid technology development has made is cheaper
to invest in Internet of Things (IoT)
Source: EY Advisory, 2016

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Data
Analytics
&
Big data
Overview to the digital solutions within workplace –
many are already established in mature organizations
IT applications
Knowledge
Management &
Collaboration
Communication from
anywhere at any time
Internet of thingsASSET CENTRICPEOPLE CENTRIC
BENEFITS
• Cost reductions
• Increased employee
engagement
• Workforce efficiency
• Decreased m2 per
employee
• Services when needed
• Enhanced meeting
room utilization
• CO2 reduction
• Increased asset
control
Robotics process
automation
AI
Artificial intelligence
Robots
Virtual reality
3D printers
Cyber Security

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Suppliers are knocking on the door to sell Digital
Workplace solutions

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Communication,
Robotics,
Collaboration & IoT
were the most common answers to the
question of which area is of highest priority
within digital workplace
What do Head of RE & FM from some of the largest
companies in the Nordics say about Digital Workplace?
Do you have a Digital Workplace
strategy?
71%
25%
We have a
strategy and it
is implemented
4%
We have a
strategy but it is
not implemented
We do not
have a strategy
27%
60%
13%
Create a more
cost efficient
workplace
Other
0%
Increase
employee
satisfaction
0%
Increase the
attractiveness
as employer
Increase
employee
efficiency
The biggest reason to develop our Digital Workplace is to…
34 companies from across
the Nordics participated in the
survey during two EY events.
Source: EY HoFM Sweden Nov 11-12 2016
EY HoFM Norway Nov 16-17 2016
Examples of participants:
73 % of the participants plan to initiate
a project connected to Digital Workplace
during the next 12 months

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IoT offers significant benefits within RE & FM
Source: http://www.nrel.gov/continuum/homes_buildings/sensors.html
http://www.eetimes.com/author.asp?section_id=36&doc_id=1323036
Inform users where vacant locations are to be
found in buildings, analyze effective
occupation patterns of buildings
Occupation
sensors
Register energy consumptions and analyze
patterns to avoid waste
Connected
meters
Monitor asset behavior (ie: elevator, escalator)
and warrant maintenance in a timely manner,
reducing risks of safety and avoiding failure
situations
Critical Asset
Sensors
► Cameras and sensors to measure workplace
utilization in real-time
► Service on-demand, for instance cleaning of
toilets based on usage instead of frequency
► Sensors in buildings to adapt e.g. ventilation
and lighting to actual needs
► Smart meters that accurately analyze energy
consumption to be able to reduce it
► Monitor usage of e.g. elevators and
escalators to conduct preventive
maintenance in a timely manner
► Track equipment through connected assets
The Internet of Things (IoT) is the network of physical devices, vehicles, buildings and other items -
embedded with electronics, software, sensors, actuators, and network connectivity that enable these
objects to collect and exchange data.
Area Function Examples

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Cyber attacks on facilities and digital systems are
increasing
Hackers were able to change the levels of
chemicals used to treat tap water during an
attack on the outdated IT network of the
plant
Source: http://www.wateronline.com/doc/water-wastewater-utilities-high-risk-cyberattack-0001
http://www.infosecurity-magazine.com/news/water-treatment-plant-hit-by/
http://www.computerworld.com/article/2487452/cybercrime-hacking/target-attack-shows-danger-of-
remotely-accessible-hvac-systems.html
US based retail firm Target suffered a cyber attack. The HVAC firm had
access rights to Target's network for carrying out tasks like remotely
monitoring energy consumption and temperatures at various stores. The
Target data thieves used the remote access rights to gain a foothold on the
retailer's network and subsequently leapfrog onto the company's payment
systems stealing 40-million credit and debit cards

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5 practical ways RE & FM function can help strengthen
cybersecurity
1. Protect your building management system
► When choosing external vendors that use your networks for certain purposes, make sure you're aware of the information they have
access to, how they are using the information and that they too have security measures in place.
2. Create a strict password/ID policy
► Having simple user IDs and passwords creates a weak link that hackers can exploit. It’s important to create a policy for both
password and ID creation.
3. Monitor and protect easy access points
► a good idea to inspect your building for any easy access DSL points you might not even know exist. Sometimes these lines will be
installed by facility staff in order to simplify maintenance, but an unprotected line can create an entry point for hackers.
4. Consistently update your company software
► Most software development is reactionary — meaning updates to the codebase usually occur after certain entry points are found.
Failing to regularly update your software is essentially the same as leaving your front door wide open.
5. Encrypt your network and limit certain access
► Make sure that your WiFi network and any internal networks you use for information sharing are encrypted and password
protected. Setting up basic web filters will help prevent employees from visiting non-secure websites that might install malware on
the local network.
When explaining to employees why their access is restricted, frame your reasoning as a need to protect company software and
data. It’s not a limitation of staff freedom; it’s a preventative measure for their security and the company's.

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Through Robotics Process Automation (RPA) a “virtual
workforce” is engaged to perform rules-based tasks
Robots and People – a powerful combination
► Robots deliver repetitive, deterministic, high-volume tasks
efficiently
► People build relationships, provide subjective judgement, deliver
low-frequency and exception tasks, and manage change and
improvement
The definition of a robot is a mechanical or virtual
artificial agent. Within RPA a robot is a non-
physical software robot
The robots can be seen as a virtual workforce –
its capacity can be used to work with whatever
tasks you decide.
The software robots sit alongside existing
infrastructure, governed and controlled by IT
One robot can work on one computer – thus you
need as many computers as robots in the virtual
workforce. The computers can be located
anywhere.
A robot replicates human actions in a stable and
robust way but much quicker and can work 24/7
What is RPA?
► Administer leases
► Manage lease accounting and requirements
► Manage portfolio data and documents
► Error reports
► Develop operational budget
► Manage customer relations
► Manage chargebacks
► Withdraw reports and standard perform generic
analyses
► Maintain workplace data and documentation
► Manage and control projects
► Perform closeout
REFM processes with RPA potential

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New demands for collaboration and agile functionality
increasingly drive the market for workplace IT systems
► Total cost of ownership on full portfolio of real
estate and facilities
► IT strategy links more tightly to the RE & FM
strategy, many organizations in process of
investing best-of brand visavi best of breed
► Increased focus on implementing fit-for purpose
IT solutions within RE & FM, however still data
quality and handling of master data in many
cases unsatisfactory
► The best advancement will be for IT platforms to
connect information seamlessly and visually to
navigable 3D drawings of the buildings they
support
► SaaS represents the significant (and growing)
majority of IT deployments.
► Cloud based solutions – “anywhere, anytime”
access to data via portal interfaces
Sample of system providersMarket outlook

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To sum up
Digital and IoT solutions are
available in the market place
Risks and threats need to be
controlled
A strategy is needed to set direction
and establish priorities
Results potential is large
Environmental impact
Employee
satisfaction
Productivity
Flexibility
Innovation
Cost savings Collaboration
Company brand
Phase
Lay the foundation for a
Digital Workplace strategy
Analyze current
Digital Workplace
experience and
capabilities
Build insights in the
Digital Workplace
market
Develop To-be state
Develop final Digital
Workplace Strategy
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Tack för uppmärksamheten!
Niclas Elfström
Head of Workplace solutions Nordics
Executive Director EY Advisory Services
Stockholm Office
0703-189093
niclas.elfstrom@se.ey.com