Between 5 and 10 per cent of the budget for greenfield projects such as hotel and office towers, rail and power or industrial facilities are accounted for by electronic low voltage (ELV) and information technology (IT) systems.

The more iconic or critical the infrastructure is, the higher the budget allocated for these systems, which are now usually referred to by suppliers as smart technologies.

These systems are designed to make the buildings more efficient by using advanced security and access systems, broadband data connectivity, and by monitoring energy consumption, part of which is usually generated from renewable sources.

Typically these include cabling, cellular radios, data centre infrastructure, networking equipment, security and access, alarms, unified communications, building energy management systems (BEMS), and to a lesser extent photovoltaic (PV) panels, among others.

Generally this capital expense still excludes specialised hardware and software such as process control and automation systems and enterprise resource planning (ERP) solutions that the project owners or tenants require once they start operating.  

The concept of IoT (internet of things) goes beyond making buildings and facilities and those who work or live in them more efficient. More importantly, IoT, wherein every foreseeable device from electric meters to air conditioning systems are equipped with sensors and connected to the internet, which enables them to receive and transmit data about the user’s consumption and other behaviour patterns, is a potential game changer, particularly on how product and services development and delivery will be conducted in the not-so-distant future.

The ability to capture massive data from IoTs, and the potential of big data analytics to turn this data into useful and practical knowledge, among others, could lead to what Hitachi CEO Hiraoki Nakanishi called mass customisation during the company’s recent Innovation Forum in Japan.

The concept seems to imply that consumers will no longer have to pay for features they do not need or spend extra funds to customise a product – be it a software or an industrial cooling system – they have bought.

In theory, this could mean the heating, ventilation and cooling (HVAC) system that is shipped to Dammam in the Eastern Province of Saudi Arabia can accommodate higher ambient temperature compared with those shipped to Jeddah, where summer temperatures are lower. A similar level of customisation could span consumer products such as mobile phones to industrial products such as switch gears and automation control systems.

Based on these scenarios, IoT and big data analytics, advocates argue, will result in major cost and operational efficiencies for project clients and suppliers.

Major barriers for execution and implementation remain, however. These include higher investments in research and development, which could lead to high costs.It would also require an unprecedented degree of openness and collaboration between partners, suppliers and competitors. Agreeing on standards will also be a major barrier, requiring time, expertise and resources.

Chances are the adoption of all things smart will be gradual and will require a lot of risk-taking, especially from project owners and developers. Like most technologies or innovation that preceded IoT and big data, their widespread implementation could only usually take place once the chatter and hype subsides, and stakeholders begin to see concrete benefits for their investments.