Tour of the Microsoft Campus Nov. 14, 2023 - A very green roof
Our Kodak Moment: We Need to Snap Out of It!
Kodak was a billion-dollar company before it invented the first digital camera in 1975, and by 2012, it declared bankruptcy. They could not shift fast enough from capturing Kodak Moments and selling paper and chemicals to capturing those moments digitally. I have used this story for many years to move the building industry forward, but I heard it again this week at the Buildings AI conference in Palo Alto, California, and realized it applies more than ever.
COVID has completely changed real estate. Offices are empty, and working from home and hybrid work have upended the need for space. The dramatic rise of artificial intelligence has also brought new ways to manage the lifecycle of facilities. This is a Kodak moment for the industry, and how will we pivot? More >>
COVID has completely changed real estate. Offices are empty, and working from home and hybrid work have upended the need for space. The dramatic rise of artificial intelligence has also brought new ways to manage the lifecycle of facilities. This is a Kodak moment for the industry, and how will we pivot? More >>
Jay Kline and Kimon Onuma's Reflections
Jay Kline of the National Institute of Building Sciences and Kimon Onuma of ONUMA, Inc. attended the conference and made observations about the building industry and AI.
Day 1: CoRETECH 2023
Jim Young of Realcomm started the conference with a reminder of where we are today and the dramatic changes around us. Years ago we used to drive to different places to do different things, now we do different things all from a device and global network, on our laptops and mobile devices. These technologies have been around for a long time, but we got a crash course during the pandemic.
Snap out of it!
Kay Sargent of HOK:
Kodak should have pivoted their business model to realize that the world is changing. Somebody else is either going to do it to you or you can do it. Are we just gonna sit here and let somebody else do it to us, because we can't figure it out? We might have our supertanker going down the road, and we can't pivot, because we've got so much invested in the way we've always done it. And we have to have some people that really shake it up, really shake it up!
I think there's a fundamental shift. But I really do believe right now that the entire real estate world is being set up for failure. We have got to snap the hell out of it. Realize that there has been a shift. And if we don't do something about it, somebody is going to do it to us.
Kodak should have pivoted their business model to realize that the world is changing. Somebody else is either going to do it to you or you can do it. Are we just gonna sit here and let somebody else do it to us, because we can't figure it out? We might have our supertanker going down the road, and we can't pivot, because we've got so much invested in the way we've always done it. And we have to have some people that really shake it up, really shake it up!
I think there's a fundamental shift. But I really do believe right now that the entire real estate world is being set up for failure. We have got to snap the hell out of it. Realize that there has been a shift. And if we don't do something about it, somebody is going to do it to us.
Real Estate Portfolios and Data Hostages
Edi Demaj of Kode Labs:
There are large real estate portfolios that are still being held hostage by their control companies. Very basic operational things need to get worked out. If we, as an industry, don't come together and demand change from the big four or five, core system companies and not sign contracts for them. Many clients we talk to know it's wrong yet are stuck with it. A lot of companies that want to talk about AI, but their real estate portfolio is not ready for AI.
Emmanuel Daniel of Microsoft:
AI is changing the way we engage with design and build. We are now starting to engage suppliers. If I'm going to buy a chiller from you, I will need your chiller to give me access to these data points. I'd like to see the consumption of these data points. For us, it's about accelerating the speed of delivery. We firmly believe that all data that happens within our facilities belongs to us, there is literally no room for negotiation.
Sabine Lam of Google:
We get the data from the device, it's our data. There's no negotiation
There are large real estate portfolios that are still being held hostage by their control companies. Very basic operational things need to get worked out. If we, as an industry, don't come together and demand change from the big four or five, core system companies and not sign contracts for them. Many clients we talk to know it's wrong yet are stuck with it. A lot of companies that want to talk about AI, but their real estate portfolio is not ready for AI.
Emmanuel Daniel of Microsoft:
AI is changing the way we engage with design and build. We are now starting to engage suppliers. If I'm going to buy a chiller from you, I will need your chiller to give me access to these data points. I'd like to see the consumption of these data points. For us, it's about accelerating the speed of delivery. We firmly believe that all data that happens within our facilities belongs to us, there is literally no room for negotiation.
Sabine Lam of Google:
We get the data from the device, it's our data. There's no negotiation
Data Governance at Stanford
Jacques De Calendar - Stanford |
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Robotics
Day 2: Buildings AI
Some of the starting conversations on day 1 mentioned the lack of data and standards to be useful, but then it shifted toward we have enough data to start, and iterate. There is no reason to wait, it is already happening.
McKinsey & Company |
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McKinsey reports have shown the building industry and real estate at the bottom for innovation. How will we get out of the bottom?
Kimon Onuma
Kimon Onuma
Special Competitive Studies Project
Liza Tobin of Special Competitive Studies Project:
Dr. Kissinger was writing a book with our boss, Eric Schmidt, on AI, and what that meant for the geopolitics of our country and national competitiveness. And Kissinger said to Eric, it's really time to lead another such effort. But of course, instead of the Soviets and nuclear weapons, the challenge we face now is China and technology. We've realized that China is catching up with and racing ahead of the United States in a number of the technologies that really matter for our economy our national security, and our society, like easy batteries.
David Chee of Special Competitive Studies Project:
The technology you can see kind of separated by the leading countries. But there is this contested space in the middle, and AI is squarely up there. We've created a report on generative AI, and also advanced networks.
www.scsp.ai
Dr. Kissinger was writing a book with our boss, Eric Schmidt, on AI, and what that meant for the geopolitics of our country and national competitiveness. And Kissinger said to Eric, it's really time to lead another such effort. But of course, instead of the Soviets and nuclear weapons, the challenge we face now is China and technology. We've realized that China is catching up with and racing ahead of the United States in a number of the technologies that really matter for our economy our national security, and our society, like easy batteries.
David Chee of Special Competitive Studies Project:
The technology you can see kind of separated by the leading countries. But there is this contested space in the middle, and AI is squarely up there. We've created a report on generative AI, and also advanced networks.
www.scsp.ai
So What Does This All Mean?
Conclusion & Next Steps:
- Embrace the Shift: It's time to pivot and harness AI's potential. Don't wait for perfection — start with the data you have.
- Data Architecture: Invest in structured, standardized data practices to fully leverage AI capabilities.
- Cross-Discipline Collaboration: Encourage sharing and linking systems across departments for more integrated solutions.
- Snap Out of Complacency: Like Kodak, we must adapt or risk obsolescence. Embrace new technologies and mindsets.
- Seize New Opportunities: With AI's rapid adoption, now is the chance to redefine value and competitive edge in our industry.
- Engage & Share: Join the conversation. Share your insights, connect with peers, and explore collaborations.
- Watch for future conferences and webinars:
A Tour of Microsoft Silicon Valley Campus
References
CoRETECH2023: https://realcomm.com/coretech-2023/
BuildingsAI: https://realcomm.com/buildingsai-2023/
Realcomm: https://realcomm.com/
Microsoft Silicon Valley Campus: https://www.architectmagazine.com/project-gallery/microsoft-silicon-valley-campus_o
BuildingsAI: https://realcomm.com/buildingsai-2023/
Realcomm: https://realcomm.com/
Microsoft Silicon Valley Campus: https://www.architectmagazine.com/project-gallery/microsoft-silicon-valley-campus_o