The challenge of demonstrating Return on Investment (ROI) in smart buildings is complex, extending far beyond simple financial metrics. As a market engagement specialist, I consistently facilitate crucial dialogues that aim to clarify and broaden this understanding, often defining new strategic focus areas for industry collaboration.
As part of the Digital Buildings Council’s (DBC) event partnership with PropTech Connect in September, I curated and moderated the panel ‘A Holistic Approach to Maximising ROI in Smart Buildings’. This pivotal discussion was integral to our ‘Project Costing and the Business Case’ Working Group, which launched at the show, and represented a foundational step in redefining how we measure success in intelligent buildings.
The panel brought together diverse experts from across the smart building industry:
- Mike Hook: Owner/Director, LMG
- Emilia Cardamone: Associate Director, Real Estate Digital, Turner & Townsend
- Jonathan Treece: Director – Digital Lead, The Design House, Barclays
- Johan Wiksell: Head of smart homes and buildings, JM
- James Kendall: European Regional Director, SwiftConnect
The conversation explored the multifaceted challenges of quantifying ROI, moving beyond traditional metrics to embrace a holistic view encompassing user experience, well-being, and alignment with broader business outcomes and ESG goals. Panellists highlighted the need for user-centricity, defining clear use cases, and designing pilot projects with future scalability in mind. Collaborative efforts and identifying internal champions within client organisations were also stressed as crucial for success.
Key insights revealed that while quantifiable benefits like energy savings are apparent, “softer” benefits (e.g., talent retention, productivity) remain harder to measure despite being key value drivers. The panel reinforced that technology is merely a tool, and true value lies in enhancing user experience and fostering innovation. The discussion also touched on concepts like holistic area-level thinking and the power of data visualisation for impact.
Ultimately, demonstrating ROI in smart buildings demands a shift from a narrow focus on cost savings towards a comprehensive approach. This requires embracing user-centricity, fostering collaboration, and leveraging data visualisation to unlock the full potential of smart building technology. The panel underscored that significant work remains in bridging the gap between construction and operation, a challenge that requires continued industry-wide attention.
You can listen to a 10-minute AI podcast summary of this panel that I posted on LinkedIn here.
