Case Study: Making Building Operations Sustainable with PropTech delivered through a Managed Services Model

Case Study: Making Building Operations Sustainable with PropTech delivered through a Managed Services Model

According to the World Green Building Council, Buildings are currently responsible for 39% of global energy related carbon emissions, with 28% from operational emissions, from energy needed to heat, cool and power them. Given the high contribution to emissions, the need for sustainable building operations is becoming increasingly important. It was a big focus at COP27 too. Businesses will have to support governments by making their building operations more energy efficient.

There are a number of PropTech solutions in the market that focus on energy efficiency, and they keep evolving with the capabilities of technology. However, it is not enough to simply purchase and install the solutions. The solutions need to be applied to match the context of the business' operations, and the change they bring needs to be managed, to achieve the set goals. There is complexity of dealing with PropTech solutions (hardware/software) providers, the facility team that will use them and equipment maintenance service providers who work with equipment these PropTech solutions connect to. Businesses can overcome the challenges and ensure the potential of the solutions are realized, by deploying the managed services model.

The application of the managed services model enables businesses to meet not only energy reduction goals but also others, such as enhancing occupant comfort. The following is a short success story of a retailer adopting a managed services model to deploy cutting-edge PropTech to optimize building operations.

The Client

A large home improvement retailer with over 2,000 stores across North America. Their stores are integral to their business and with each store averaging over 100,000 square feet of indoor retail space, with a number of energy consuming equipment, the retailer realized it needed to deploy PropTech to achieve its objectives.

The Objectives

With a commitment to sustainability, the retailer aimed to identify make store operations more energy efficient and reduce their environmental impact. This involved

1. Integrating New Technology
2. Reducing Demand Charges
3. Enabling Remote Support

The PropTech Solution, delivered as a Managed Service

The retailer selected the managed services by EcoEnergy Insights, a global leader in AI and IoT solutions for building and equipment operations, to tackle these challenges. Their integrated solution – comprising an AI and IoT platform called CORTIX™, and remote operations centers called BluEdge™ Command Centers – was designed to address the retailer’s objectives comprehensively. The program managers in the command centers implemented the best practices of delivering the managed services. They would support the retailer throughout the year, managing tactical requirements and strategic as well – such as ensuring technology updates were delivered – making store operations future-poof.

Initially, the retailer's Heating, Ventilation and Air-Conditioning (HVAC), Lighting and other store equipment, from across the store portfolio, were onboarded onto the CORTIX platform, transforming the entire network into an intelligent connected ecosystem. The platform predicted equipment behavior and offered actionable insights and corrective recommendations, which are acted upon in 3 ways:

1. Autonomously, by the platform.
2. Remotely, by the teams at the BluEdge Command Centers.
3. In the field, where required actions were collated by the team at the command centers to be addressed at a store, so that multiple fixes could be attended to in one visit.

The Results

In terms of energy savings, the retailer has saved over 3 billion kWh. To put it in perspective, this is equivalent to carbon sequestered by more than 35.1 million tree seedlings grown for 10 years. In terms of performance, the managed services delivered an increase in energy savings per year, from less than 5% in the first year of the engagement to over 24% in the 10th year.

In addition to energy savings, in one of the recent years of the engagement, the retailer also achieved the following:

1. Enhanced Occupant Comfort: The retailer maintained an exceptional average of over 95% temperature compliance against policy setpoints, ensuring a comfortable shopping experience for customers and working environment for employees.
2. Peak Demand Management: The retailer experienced an average of over 8% reduction in peak demand charges for target stores, leading to further optimization of energy costs.
3. Remote Resolution: An average of 92% of work orders and service calls were resolved remotely, streamlining maintenance processes and reducing downtime. This enabled reducing the number of field technician visits and the associated emissions from the maintenance trucks.

In terms of recognition, this case study was a winner of a 2017 Environmental Leader Top Project of the Year award. It also was a finalist at the 2022 Annual Global OPEX awards in the Best Digital Transformation Project category.

Managed Services is a proven way forward to deploying PropTech

This case study exemplifies the power of using PropTech delivered through Managed Services to achieve target outcomes. Through a multi-year services engagement – that smoothened the adoption of advanced technologies and new ways of working – the retailer reduced its carbon footprint, met business goals and set new benchmarks in operational efficiency.

As businesses worldwide embrace technology-driven solutions, the Managed Services model for implementing PropTech has emerged as a key element to consider. This will enable them to not only thrive in a competitive market but also contribute to a greener and more sustainable world.

Figure: A representation of the digital transformation of the building operations

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