VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD Location obscured: How information technology may change the building and construction sector CIB World Building Congress Tampere, 31 May 2016 Matti Kokkala, Prof., Senior Advisor VTT Technical Research Centre of Finland @MattiKokkala, @VTTFinland
Outline Information and Communication Technology (ICT) in the core of societal transitions ICT business ecosystem structure ICT business model transitions What if the building and construction were to change Examples Conclusion 01/06/2016 2
Big Picture: Why smart is smart? Societies have always tried to find solutions which would bring the highest benefit, to be most efficient etc. (for those who decide) Traditionally the optimum solution has been to centralize - large power plants - predetermined bus schedules along main routes - central archives - central administration in governance NOW: A distributed solution often provides a better option - distributed energy - mobility on demand - search over the internet - participative governance ICT enables all this! 01/06/2016 3
The Change: Change of Work Information technology allows work to be done from any location or to be automated completely; local only if direct face-to-face interaction needed What is done now may not be needed in the future at all Demands emerge and strengthen when something becomes possible Consequences Work flows are going to change Business models are going to change Current usage of space may become obsolete but new needs may emerge Unexpected societal consequences, e.g. taxation, education 01/06/2016 4
Structure of the ICT ecosystem CONTENT planning, facility management, traffic flows (=processes) NETWORK road, waste&water, power networks CONSUMER DEVICE linings, spaces, rooms, vehicles, machinery, home appliances IDENTITY, SERVICE use, life style, purchase habits, health, comfort, social connections where privacy and identity matter sensors, robots, automation, telecom, displays Platform economy databusiness 01/06/2016 5
From independent entities into a networked system GSM OPEN INTERNET CENTRALIZED 3 10 y 3 mo 1 y DECENTRALIZED MONOPOLY INDEPENDENT CLOSED 01/06/2016 6
Business in digital economy is based on benefits and needs as before! Minimal investments - when making use of investments made by others Lower operation costs when making others to pay Higher utilization rate when hiring resources to others Lower environment impact - when avoiding repetiton and paperwork Increasing health, safety and comfort when you know more Saving time when everybody is informed immediately whatever (legal) way to earn! 01/06/2016 7
Parking garage in residential area in Espoo on a September afternoon Most of the space vacant during the day Significant part of the space vacant during evenings, but still difficult to find a parking place for visitors Expensive to build, expensive to buy, significant monthly cost How about an airbnb of parking? 01/06/2016 8
Apparent business case, because BUT would provide more efficient use of existing resources would make possible to reserve less space for parking in the future visitors would pay for the operation costs? Decision making in an existing car park with multiple owners may be difficult One parking space at a time or the whole lot at once? Copying or global scaling shall we have another U.S. based platform operator to control all parking lots in the world? Will the car park business turn from a local facility management business to international platform business? When? 01/06/2016 9
From independent entities into a networked system GSM OPEN INTERNET CENTRALIZED 3 10 y 3 mo 1 y DECENTRALIZED MONOPOLY INDEPENDENT CLOSED 01/06/2016 10
Unmanned cranes? Why should you have a man up in the cabin? Beautiful scenery but a lot of waiting loneliness? swaying back and forth Mining machines under remote control, doctors operating remotely is lifting of construction products more difficult? 01/06/2016 11
Why not a (global) crane control room? One operator can take care of several construction sites => savings in workforce Deputizing quicker and easy => better redundancy Comfortable working conditions => more attractive work and one day everything can be automated 01/06/2016 12
Virtual environment is quite realistic! Virtual cabinet of a mining machine at VTT in Tampere One may easily move from one machine to another self-learning robotics developing fast More info: Kai Helin, VTT, Kai.Helin@vtt.fi 01/06/2016 13
From independent entities into a networked system GSM OPEN INTERNET CENTRALIZED 3 10 y 3 mo 1 y DECENTRALIZED MONOPOLY INDEPENDENT CLOSED 01/06/2016 14
Confirmation of compliance: GSM OPEN INTERNET From independent entities into a networked system CENTRALIZED competitive; certified inspectors local authority online; automated; blockchain? selfinspection DECENTRALIZED MONOPOLY INDEPENDENT CLOSED 01/06/2016 15
Somebody is thinking to take over your business Technologies for sensors, robotics, telecommunication etc. developing fast and lowering the barrier to radical business model innovations Old jobs disappear but new ones will emerge Organization s digital competence is like literacy for a man: it does not make you smart but makes it easier to become smart! 01/06/2016 16
But where? In more and more businesses part of the value creation takes place so that you do not know where You will know where the building is located, but you do not know where it was designed or made and from where it will be operated..and who will have the right to participate in decision making? Loss of the role of location is a challenge to the society while, e.g., taxation has traditionally been location based CHANGES ARE NO MORE LINEAR OR MARGINAL: EVERYTHING MAY CHANGE AT ONCE 01/06/2016 17
Bill Gates We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten 01/06/2016 18
TECHNOLOGY FOR BUSINESS Thank you! With special thanks to Thomas Casey of VTT & Timo Ali-Vehmas of Nokia