Xempla

Tag: sustainability

  • What’s Missing From the Technology Stack of ESCOs and RESCOs?

    What’s Missing From the Technology Stack of ESCOs and RESCOs?

    In an effort to start sustainable growth and implement strategies to achieve net-zero emissions, many countries around the world have recognized energy efficiency as a key component of the plan. By implementing a plan around netzero for enterprise asset management, organizations can achieve their Net Zero targets while also reducing energy costs and improving the efficiency and sustainability of their facilities. For businesses prepared to take on EE initiatives, Energy Service Companies (ESCOs) and Renewable Energy Service Companies (RESCOs) provide appealing possibilities. 

    Without having to oversee how objectives are accomplished, facility management companies can concentrate on the desired results. ESCO adds experience to a project as energy efficiency is its primary focus. However, in some countries, ESCOs are still unable to tap into the possibility and provide energy savings to businesses. It is expected to grow and become more significant, which will need ESCOs and RESCOs to eventually take bolder steps and work on projects other than the usual ones involving energy efficiency.

    Our Founder & CEO, Umesh Bhutoria shares his observations, stating that the Middle East is a prime example of a region where a top-tier FM company acquired the majority stake of a fully-fledged ESCO service provider. Similar instances have occurred in other regions, and a similar situation is taking place in the energy, retail, or utility industries.

    ESCOs and RESCOs Primarily Focus on Two Areas

    A deeper understanding of the role that technology would play throughout the life cycle of the projects that ESCOs and RESCOs ultimately undertake, as well as a better understanding of how your companies’ technology stacks actually look, are necessary to complement the aspirations and growth prospects currently existing in the industry. Now we get to the two areas that ESCOs and RESCOs have conventionally focused on.

    Customer Acquisition

    Over the past few years, ESCOs have been active in their customer acquisition efforts, using appropriate strategies. Better performance and the quest for cost-effective solutions have emerged as key components of an ESCOs and RESCOs business model as competition for both existing and new customers intensifies. And thus, they are clearly focused on measurement and verification once the customer has been acquired and the project is near completion.

    Measurement & Verification (M&V)

    In the context of ‘Measurement and Verification’, risk refers to the apprehension that anticipated savings won’t be achieved. Both ESCOs and customers are usually hesitant to take accountability for variables over which they have no control, and having some criteria defined in the M&V plan can help meet those contractual obligations.

    When the projects become slightly more complex and involve integrating with the operations of several types of facilities, such as manufacturing plants, data centres, or IT parks. It gets impossible to ignore the interconnection between energy, operations, and maintenance.

    Assume for a moment that you are an energy retailer who provides services on a yearly contract basis for a set price. You propose installing and maintaining a solar rooftop panel.

    In this situation, the company would require workforce for solar rooftop operations and maintenance as well as installation. Therefore, they bear the performance risk.

    On the other hand, you are an energy service company (ESCO) suggesting upgrades and improvements in AHU that will result in guaranteed savings. 

    In this situation, ESCO is considering energy-saving investments in AHU and other components.

    As a result, both have a substantial risk of guaranteed performance. And at this point, your technology stack needs to be quite similar to that of a facilities management or an asset management company.

    Need to be Added to the Technology Stack of ESCOs and RESCOs

    In ESCO’s tech stack, there is currently no such process in place that addresses full risk. Your main concern should be selecting solutions that will improve asset performance — while empowering your teams to deliver energy cost savings and carry out measurement and verification tasks to determine the energy savings post the set-up of energy-efficiency projects. 

    1. Adding a data-driven customer success platform and leveraging data points to deliver customer success across the entire life cycle of a project.

    2. Implementing an important process (Operations and maintenance) throughout the life cycle in a standardised manner.

    • Internal teams bring in a suitable digital stack.
    • Vendors or Installers bring their own technology or a services app.

    In order to effectively manage risks, it is necessary to connect the dots from the point at which a customer is acquired to the point at which services are being provided. And you must consider taking a 360* view of an entire asset performance management stack rather than focusing only on measurement and verification.

    What does your Energy service company’s technology stack look like? What do you observe in your country, and are they willing to take on the challenge of upgrading their digital stack? Is there any other strategy to cover the risks? Send us an email at [email protected] with your thoughts.

  • How FM Teams Can Demonstrate the Impact of Every Proactive Measure

    How FM Teams Can Demonstrate the Impact of Every Proactive Measure

    Facility managers are responsible for a diverse range of tasks. They are expected to achieve more with less, meet customer expectations, as well as make a proactive impact.

    How do they demonstrate the impact of the measures they take?

    Through measurement and verification, which are absolutely an important component of energy efficiency.

    With a bit of commitment and an understanding of the small yet proactive measures they take to deliver exemplary asset performance, they’ll be proactive in no time.

    So now we’re asking every FM team to press the pause button and dedicate a certain amount of time to being proactive.

    Our Founder & CEO Umesh Bhutoria spoke about the “black box” technique, which he first presented in his early consultancy days, to show how facility managers can cut costs and drive savings while putting the idea more in the context of facility management.

    Here are six steps facility managers can follow to demonstrate the outcomes of the proactive measure they take at the asset level.

    #1 Keep it simple. Every saving matters!

    Often, facility managers encounter several challenges in order to efficiently maintain their facilities, equipment, and infrastructure. If you’re working on a project to add value, it can be a change in the maintenance schedule, putting in place proper operation standards, or performing any energy-efficiency assessment. Keep it simple, as every savings you make matters.

    #2 Define the localised boundary

    The second step, which is actually quite easy, impacts your overall planning. Hence, you must define the localised boundary of your project. Let’s suppose, you are working on Air Handling Unit (AHU) maintenance. At that time, selecting a Fan Coil Unit (FCU) or chiller for the facility should come first. You should not consider it as a component of a huge facility; instead, consider it at the localised level.

    This would be quite beneficial if you do not have downstream flow metering solutions at your availability. Although your chillers would have BTU metres, it’s unlikely that every AHU or FCU would. Therefore, the majority of the facilities we have seen—roughly 70%—fit this description.

    #3 Establish a baseline

    Depending on the type of data available, you could use one of the three methods listed below even in the absence of metered data.

    1. Tick off crucial numbers using operational data from the BMS.
    2. Utilise measured data obtained from clamp-on metres or power analyzers.
    3. If data cannot be measured, refer to manuals or standard operating procedures once more.

    While having metered data is considered to be the best approach, not every FM company has it. And you must consider the other available alternatives that could uphold the engineering principle.

    #4 Time to make a proactive impact

    How can you be certain that you are taking proactive measures? 

    Repeating the process you did in step three will give you the opportunity to make a proactive impact on the current project. By being proactive, you can minimise downtime and maintain the asset for a longer period of time. 

    #5 Evaluate the difference from all perspectives

    Without a doubt, you cannot be proactive if you cannot demonstrate the impact. Here comes our fifth step which is slightly linked to the third and fourth steps. 

    If you do not have metered data employ all three methods so that you have multiple references, not just one which is likely the ideal situation to be in. As a result, it will be easier for you to establish the difference from all perspectives.

    #6 Amplify the process for all proactive measures

    Amplifying is really important in the long run. You just need to access the data you require and accelerate the process across the site. At the end of the day, you will make a significant impact, which is visible to all. And, having a plan and process in place will undoubtedly help you with that.

    The idea is always to add the small numbers up because they will eventually pave the way to creating a huge impact. 

    Let’s do a quick recap of all the steps we discussed above. 

    Whether or not you currently have a set of methods and processes in place to demonstrate the impact of small proactive measures to customers or stakeholders, use this blog as a guide to assist you in taking each small step toward making a big difference.  

    Even if it takes time, the savings you have made will show up. And although proper downstream metering is essential, it shouldn’t be the last thing that prevents your team from making a proactive impact.

  • State of Asset Management in Australia

    State of Asset Management in Australia

    A lot of significant focus has been going around Asset Management. Similar to any other component, technology is playing a vital role in the transformation of asset management enterprises in Australia which are required to control portfolio risk, perform ESG practices, reduce operational costs, and meet net-zero targets on time.

    The widespread technology’s influence on the reduction of maintenance costs and added value for the customer is rapidly gaining traction. The Cost savings factor is a no-brainer – all organisations had to leverage technologies to decrease their operational cost with digital transformation, driving the customer experience.

    Setting up and maintaining short to medium-term goals may appear to be a daunting challenge for new businesses, but it is not entirely impossible. In this article, I’ve outlined the key trends and drivers around enterprise asset management and the built environment from the podcast episode with Umesh Bhutoria and Jeff Sharp.

    Emerging Trends In Asset Management Industry In Australia Compared To Those Worldwide.

    #1 Ageing Workforce 

    In the next seven to eight years, 60% of O&M workers will retire. Without a doubt, the ageing workforce is a major challenge, and there will be a need to replace them with the institutional knowledge.

    The realities of the future of the workforce cannot be avoided, but there are several ways to prepare, among which is through upskilling and leveraging data, and many asset management organisations in Australia have already begun to use more and more data to enable them to make better decisions.

    #2 Use of Technology

    If you’ve ever wondered, “How can you use asset data to make a difference in this industry?” or “Can asset management companies leverage this data to deliver better solutions?” Then, Keep on scrolling!

    During the Podcast session, Jeff Sharp of EY shared how he is working with his team in Australia and they’re integrating data to make real change. 

    Organisations now collect an incredible amount of data sets from multiple sources and have access to more data than ever before. In Australia, it is becoming more common to combine multiple data sources to create a single source of truth while layering one data source over another to generate better solutions.

    Key Drivers Influencing Change In The Enterprise Asset Management Markets In Australia

    #1 Cost Savings

    Asset management companies often underestimate the amount of cost reduction measures which are available. Identifying the highest expenditures related to operations & maintenance is the easiest way to uncover cost-saving options. Determining what and where are you spending the most on and considering these expenditures from both costs and a value perspective.

    The possibilities of reduction in operational costs, the introduction of newer technologies, and leveraging data into this industry have made room to extend asset life – span.

    #2 Sustainability

    When it comes to the environment, the decisions we take now have a long-term impact later. Sustainability and Net Zero is no longer a “trending topic,” but rather, there is an immediate need to reduce the pace of the changing climate. 

    Various sectors have started ESG practices and taking steps towards transitioning to a net-zero emissions future because of the impact it has on tenants and the entire contract. And in that sector, asset performance management has a significant role to play.

    Watch the video to discover more about how we assist O&M teams in being cost-effective and meeting customers’ ESG goals —>

    The Real Estate Or Built Environment’s Playbook To View Enterprise Asset Management In A New Light.

    There is a real divide between design and construction versus operations and maintenance which must be bridged. Organisations must have a pipeline in place so that data from the design and construction phase can move to the operational phase. 

    In order to maximise value and avoid losing information during the process, it is, therefore, necessary to utilise existing data from the development stage from which sensitive information, such as pictures, etc., can reach the operations & maintenance side.

    Despite the fact that some players are ahead in the market. Other organisations can take their time and focus on finding one solution at a time. Then can begin to work on data structures for the entire facility, allowing them to leverage existing data and do away with data silos. A data foundation should be built gradually, so try not to rush.

    Our blog provides succinct summaries of the key trends, and drivers influencing Asset Management Industry in Australia. To learn more, listen to our podcast episode!

    According to us, the sectors with the most potential for transformation are mining, utilities, and real estate. Which sectors, in your opinion, have begun their transformation journey? 

    To share your thoughts, Get in touch with Umesh Bhutoria or Jeff Sharp via LinkedIn. 

  • State of Facilities Management in the UK

    State of Facilities Management in the UK

    In today’s world of global competition, facilities management in the UK is under growing pressure from clients to maintain facility portfolios with uncompromising targets for value, energy savings and environmental impact.

    During cop26 last year, sustainability in Facilities Management as an approach gained a lot of attention, with very clear goals established for energy efficiency, resource usage, and carbon emissions. Since most of these objectives are within the traditional scope of FM services, shifting from a cost-centric to a people-centric approach is not as challenging, and the UK market is positive of transformation. 

    There is only one action left to take. Acting on these trends is something that FM leaders in the UK should focus on, particularly common trends and major sectors which would see massive movements.

    Umesh Bhutoria, the founder and CEO of Xempla, seized the chance to delve deep into the movements that will take place over the next 24 months. He walks you through the current situation of facilities management in the UK in a 10-minute podcast, starting with the context of digital transformation, data movements, and asset performance management. 

    For a more detailed explanation listen to the podcast at the end of this blog to keep up on all the action.

    Let’s get started!

    The facility management market in the United Kingdom is extremely diversified due to the existence of multiple competitors of all sizes in a fiercely competitive environment. In addition, this market in the UK has three major talking points in terms of what is going on in the FM space, digital transformation, and hard services.

    Common Trends in the UK
    1. Reliability 

    Predictive technology or analytics are not only the sole topics of conversation. FM companies are also considering reliability-centred maintenance as a highly focused end result. This distinguishes the end job that must be completed from the technology that the company wishes to invest in. 

    2. Energy

    Energy has been a subject of growing interest. Businesses in the UK experienced a cost increase of 54% since April, and they can anticipate seeing another one later in the year. Therefore, FM firms are putting a lot of emphasis on how their clients may cut costs, and there is a strong connection between operations, maintenance, and energy.

    3. Sustainability

    The majority of commercial real estate has made sustainability a top priority, but in industries like data centres and healthcare, sustainability and net zero was not the primary objective of using a lot of technology.

    Key Discussion Points

    Performance Based Contracts

    Contractually, FM agreements haven’t progressed to the point where they might consider performance-based contracts, but there’s a lot of discussion going on about being proactive versus reactive, which is mostly linked to risk or reputation management.

    It would be wise for FM companies to start preparing now so they can be ready for performance-based contracts over the following 12 to 24 months. This is a good time for businesses to start planning. Additionally, FM businesses are thinking about focusing on two aspects.

    1. Winning Rebids
    2. Avoid getting Market Tested
    Beyond Discovery, the UK

    There are very few FM companies still in the discovery stage in the UK market. Most of the FM companies in the UK have an approximate 40–50% understanding of what their end state will entail and have a long term-focus, which is a great spot to be in. One great difference between the UAE and UK is that UAE is still looking at the discovery phase.

    Build Vs Buy

    Most facility management companies, aside from the usual larger ones that operate on decentralised facilities like retail, are more inclined to build their own suite of application platforms, but those that manage huge facilities like hospitals, data centres, or airports clearly have a roadmap. They are focused on building the data lake and then selecting a suite of applications that are best in the market.

    They are therefore using a combination build plus buy, however the buy is really strategic as they are basically partnering rather than taking over a vendor-driven approach.

    Sectors that will experience massive movement

    Healthcare, data centres, and infrastructure facilities are the sectors that will experience massive movements. In these sectors, the shift from a reactive to a proactive approach is essential since maintenance aspects and cost factors are significantly more critical. The commercial real estate market will undoubtedly experience tremendous movements, but the above sectors will outgrow them.

    What is going to happen over the next 24 months?

    Everyone has likely heard the word ‘R’, Recession. Even if the world had to enter a recession, there would still be a huge opportunity since use of technology in the FM space would only experience a 10X boost in macroeconomic levels.

    FM companies in the UK will be prepared with a parallel business model far earlier than in some other regions. Therefore, there is a strong anticipation of a parallel business model versus a business usual scenario. 

    As far as asset performance management, operations, and maintenance are concerned, the UK will be more than prepared to transition into a data-first environment.

    Which sectors, in your opinion, would see significant changes? If you’ve been paying close attention to the markets and you have a slightly different perspective, do share it with us.