Business Models & Procurement Schemes

WP Leader: BAM

Participants: City of Valladolid, ESB, HSG Zander, SIRUS, UTRC-I

Objective

CAMPUS-21 will develop, deploy, and test ICT Service Platform for the integration of existing ICT building subsystems including Building Management Systems (BMS) and Energy Management Systems (EMS), occupancy monitoring and external context systems (e.g. weather information, power grid congestion) in a single integrated control system.
WP1 addresses the Scientific and Technological Objective STO-1 defined on Creation of concepts for new Business Models and Procurement Schemes for Development and Deployment of the Integrated Energy Management Platform.
The objective of this work package is to find out what kind of novel business models can allow robust risk-benefit-sharing resulting from the integration of previously isolated/ stand-alone energy management, control, monitoring, and security systems. Obstacles in the procurement process of integration components will be identified and documented.


This work package will work in close collaboration with WP2 (Evaluation and Monitoring Concept) and WP3 (Use Cases & Guidelines for Integrated Energy Systems Management).

Approach

WP1 will analyse and evaluate existing business models for the Integrated Energy Systems Management at the campus level in several European Regions, such as Spain, Germany, The Netherlands and the Ireland. It will also identify the benefits from advanced systems integration of data from building and energy ICT systems (such as Access Systems, Weather forecasting Systems, Energy Management Systems, and Building Management Systems).
WP1 will finally propose novel business models for successfully introduction of integrated ICT systems on the campus level. This work will be done by executing three tasks and delivering three documents.

Task 1.1: Analysis of Existing Business Models and Procurement Schemes
In Task 1.1, existing business models and procurement schemes will analysed for Total Facilities and Energy Services Management with an emphasis on the Operation of the different Demonstration Campuses.

A literature study will be conducted on existing business models and procurement schemes. The objective of this step is to provide:

  1. a theoretical business model framework that will be used to compare and analyse existing business models, and
  2. a description of theoretical business models that can be relevant for successfully introduction of advanced systems integration of data from building and energy systems.

The suggested business model framework will be used to design a questionnaire for collecting data from the three campuses (UCC Campus, Commerzbank Arena and Valladolid Sport Complex). Collected data will be then analysed and discussed resulting in an identification of barriers to diffusion of an advanced systems integration of data from building and energy ICT systems in the existing business models. And finally, initial proposal will be introduced for the three campuses.

Task 1.2: Development of New Business Models and Procurement Schemes
Based on the analysis of existing business models and procurement schemes, as described above, new business models will be developed for advanced integrated energy management of the three campuses
New business models will take into account: 

  • integration of previously stand-alone energy management, control, monitoring, and security systems
  • obstacles in the procurement process of integration components,
  • involvement of new project partners e.g. suppliers of BMS/EMS, security companies or local weather agencies,
  • disjointedly and ted tradition-driven contracts and,
  • limitations of energy procurement regulations.

Entirely new business models will benefit from a holistic view of energy and a life-cycle costs approach based on relevant and objective key performance indicators.

Task 1.3: Validation and Consolidation of Business Models and Procurement Schemes
In this task, BAM will evaluate business models and procurement schemes as developed during T1.2. Required adjustments and improvements on energy procurement regulations in the selected European regions will be suggested and documented. Lessons Learned and recommendations for up scaling and broad adoption of new business models for holistic energy management for building and public spaces will also be developed and documented.

References: Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (1st edition), John Wiley & Sons, Hoboken, New Jersey

Achievements
The following Deliverables document the achievements of this work package:

D1.1: Analysis of existing Procurement and Business Models. 
D1.2: Initial Proposals on new Procurement Schemes and Business Models.
D1.3: Final Evaluated Business and Procurement models.

Conference Paper: Abdalla, G., (2013), Energy Efficiency Using Integrated ICT Systems: Business Challenges and Opportunities, SB13, Graz, Austria.
Conference Paper: Sirr, S., Abdalla, G. and Menzel, K. (2013), Business Models to Facilitate Building Renovation for Integrated Energy Systems, IEEE ITMC & 19th ICE Conference. The Hague, the Netherlands.

Work Package Leader

Dr. ir. Gaby Abdalla
Royal BAM Group nv
Bunnik, the Netherlands
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