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BPE24703 INTERNET OF THINGS (I0T) IN REAL ESTATE Prepared by: DR. NORALFISHAH SULAIMAN REAL ESTATE + TECHNOLOGY * TECHNOLOGY is changing the most fundamental — truth about real estate sector/commercial oo real estate (CRE)-that value_is based solely INTERNET Sap, eines * While it still matters, of course, that a ay, BD! space be close to customers, employees, 7) F and/or suppliers, information-based a =420 AGE = applications have the POTENTIAL TO ADD NEW WAYS for the RE sector to create value for customers, differentiate from competitors, and even find new sources of revenue. INTERNET OF THINGS (IOT) “Smart commercial buildings will be the highest user of Internet of Things (IoT) until 2017, after which smart homes will take the lead with just over 1 billion connected things in 2018” INTERNET OF THINGS (IOT)- DEFINITION “a suite of technologies and applications that equip devices and locations to generate all kinds of information—and to connect those devices and locations for instant data analysis and, ideally, “smart” action.” INTERNET OF THINGS (IOT)- DEFINITION IoT - “Implies physical objects being able to utilize the Internet backbone to communicate data about their condition, position, or other attributes..” INTERNET OF THINGS (I0T)- Building Eg./ Various types of sensors can track E> features such as 7 motion, air pressure, E=> Ez] » [EEE] light, temperature, and water flow and then— with the Trtan th the Internet backbone—enable the laa Building Mgt System ae ness | | : (BMS) to autonomously iwc Listing [ fs Enesy | acces nd sense, communicate, analyze, and act or oa | react to people or E> other machines in a nonintrusive manner Source: jin Young, “BloT—BUILDING internet of Things™," Realcomnm, January 23,2014; Dot Center for Financia Services analysis “HVAC retest eating, verison, and a-condtoning, (see Figure 1). Graphic: Deloitte University Press | DUPress.com a ae IoT technology has huge potential in CRE: Sensor deployment in the sector is likely to grow at comeound annual @ compound annual growth rate of 78.8 percent between 2015 & 262 (see Figure 2) to nearly 1.3 billion. 1,302.1 2015 2016 2017 2018 2019 2020 Source: Chart created and analysis performed by the Deloitte Center for Financial Services based on Gartner research: “Forecast: Internet Things, endpoints and associated services, Worldwide, 2015,” Gartner Inc., October 29, 2015. For more information on categories and sensor types included in the graph, please refer to appendix 1 Graphic: Deloitte University Press | DUPress.com NFORMATION VALUE LOOP Realizing the IoT’s full potential motivates A FRAMEWORK that captures the series and sequence of activities by which organizations create value from information: the INFORMATION VALUE LOOP* (FIGURE 3) *a structure, series, or process the end of which is connected ta the beginning Figure 3. CRE Information Value Loop ‘The deep insights and advanced machine-to-machine (M2M) interfaces can enable 8M to take automated and informed ‘ecsions dua to enhanced inteligence. Different types of sensors that track features such 2 motion, pressure. ight Temperature, and flow car collect vast amount of a ‘bout building function, ‘Operations, and use, ‘The aggregated Information can be analyzed through different analical tools for descriptive, prescriptive, and predictive Insights for building operations. Structured and unstructured data from“ fifret intemal and extemal systems SG cSramen ptoom andor ssetch Cay, 08 Various pars of the 8M can communicate interopersble standards €

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