The Role of Technology in Supporting Effective Asset Management

deeper

IBM Global Business Services

© Copyright IBM Corporation 2007

The Role of Technology in Supporting Effective Asset Management……

…… or how IBM manages its estate

OGC Government Asset Management ConferenceTransforming the Estate

2 July 2007

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Our Speakers

Andrew Carey Real Estate & Facilities Lead – IBM UK Asset Management Group+44 (0)7714-708842 [email protected]

Jeff Wilson European Operations Manager – IBM Real Estate & Site Operations+44 (0)7802-454163 jeff [email protected]

Joe Potter Systems Lead – IBM UK Asset Management Group+44 (0)7802-499046 [email protected]

mailto:[email protected]



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The Agenda

Introduction

IBM’s views on the Trends in the Marketplace

How IBM tackled its Property Management Information issues

- The Business perspective

- The Systems perspective

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Plant, Infrastructure& Fleet (PIF)

Asset Management - Context

TRANSPORTATION & FLEET

Tanks

Aircraft

Rolling Stock / Fleet

Ships

INFRASTRUCTURE

Railways

Pipes – gas, water, wastewater

Cables – electricity, telecoms

REAL ESTATE & FACILITIES

LandOffices

Factories & warehousesShops and stores

PLANT & PRODUCTION

Power Stations

Water / wastewater works

Refineries

http://images.google.co.uk/imgres?imgurl=http://www.vietnampix.com/bilder/chinook.jpg&imgrefurl=http://www.vietnampix.com/mach1f.htm&h=469&w=600&sz=35&tbnid=luVnPH9e3RAJ:&tbnh=103&tbnw=132&start=7&prev=/images%3Fq%3Dchinook%26hl%3Den%26lr%3D%26sa%3DN

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Real Estate and Facilities includes

Real estate

• Asset ownership• Real Estate management• Rent payments• Occupancy taxes• Service charges• Acquisitions & disposals

Construction projects

• Lifecycle replacement of assets within buildings

• Business-driven changes to buildings

• Development of new buildings

Facilities management

• ‘Hard’ FM – maintenance (M&E, building fabric, landscape)

• ‘Soft’ FM – services (cleaning, security, catering, office services)

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Trend 1: Integration across the Supply Chain

Construction Facilities ManagementConstruction

Routine Estate Management and Deals

Real estate

Construction projects

Facilities management

Larger scale acquisition and disposal transactions

Larger scale construction projects

Routine, Planned and Reactive Maintenance

Routine minor projects, fit outs and refurbishments

Strategy and Finance Options

Data&

Information

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Trend 2: Increasing sophistication of the supply chain

Local/Business Unit National/Corporation Multinational/Regional Global

IndividualServices

Bundled

Integrated

Specialist services such as hygiene for food / pharmaceutical companies

Companies with strong national management and in second or third generation change

Companies with a high degree of national/business unit empowerment

Companies with a Global / Regional centralised Real

Estate / Facilities Management organisation

Local/Business Unit National/Corporation Multinational/Regional GlobalLocal/Business Unit National/Corporation Multinational/Regional Global

IndividualServices

Bundled

Integrated

IndividualServices

Bundled

Integrated

Specialist services such as hygiene for food / pharmaceutical companies

Companies with strong national management and in second or third generation change

Companies with a high degree of national/business unit empowerment

Companies with a Global / Regional centralised Real

Estate / Facilities Management organisation

POTEN

TIAL FO

R SER

VICE IN

TEGR

ATIO

N

OPERATING MODEL

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Trend 3: Increased complexity in meeting demands for change

Managing C

hange

“A clear rationalefor change”

“A clear directionfor change”

“A clear structurefor change delivery”

• Depth and Breadth of Capability• Supplier Development• Level of Internal Integration• Complexity drives longer

implementation projects

• Cost Pressures• Quality Issues• Service Consistency• Core Business• Cultural Alignment• Environmental Targets• Cycle Time Reduction

• Procurement Strategy• Process & Organisation Strategy• ICT Strategy

Demand forDemand forChangeChange

DeliveringDeliveringChange Change

Strategy forStrategy forChange Change

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What you can do with better data

How many buildings do we have?

How many staff are in each building - today?

What condition are they in?

What is the Total Cost of Ownership?

Greater Supply Chain IntegrationIncreased ability to react rapidly to demands for change

Increased exploitation of supply market capabilities

DA

TA IN

TEGR

ATIO

N

Information Path

INFO

RM

ATIO

NEXPLO

ITATIO

N

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Introduction

Jeff Wilson

European Operations ManagerIBM Real Estate & Site Operations (RESO)

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Global Portfolio

IBM has a global portfolio of 120m sq ft, 1,800 locations in 88 countries housing a population of 450k people.

The IBM European portfolio comprises 20m sq ft, 200 locations, 26 countries and 24k people

The scale of our acquisition, disposal and merger activity ensures that we are constantly updating our knowledge of the market, globally

The unique value that RESO brings to IBM is its global scale and ability to cope dynamically to business change.

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Strategic Outsourcing Model

Strategic Interface

Space Planning

Project Management

M&E Maintenance

Fabric

EnvironmentSafety

Security

Office Svs

Strategic Planning

Landlord & Tenant

FinanceBusiness Control

Facility Management Suppliers

IBM RESO

RESO

FMSDeliver

Supervise

Manage

Strategy

FM Example

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IBM’s Property History

Portfolio Management - Site and country organisations- Country and group of countries- Geographic regions- Global

Iterative outsourcing strategy- Multiple suppliers- Diverse contract models- No standardised reporting and measurement systems- Differing IT system and data ownership criteria

Impact on IT - No Consistency

Application or data definitionApplication & data ownershipData integration

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Our Journey

What data do we need to run our business?- Primary data used for managing RESO core business - Secondary data used for reporting and performance evaluation- Tertiary data used for recording and archive

System and data ownership- RESO - Supplier

Results- Only 50% of our critical data ran on proprietary systems - Only 60% of critical data owned by RESO- Multiple manual interventions in data transfer- Reliance on spreadsheets- Inadequate definition and categorisation of data - Duplication

Resulting Strategy- Own the data not necessarily the application- Obtain data from the originating source- Transfer to RESO Data Warehouse without manual intervention- Develop a system to integrate data for management reporting & decision making - Be Pragmatic

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Overall Concept for IBM Real Estate Operations

Processes

Technology

Organization

Support & Guidance

Strategy and Vision

Applications and DataB

usin

ess

Res

ilien

ce

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IBM RESOBase - Sources & Outputs

RESOBase

AccountsPayable

AccountsPayable

Security(CASI)

Security(CASI)

Space (Archibus)Space

(Archibus)

Estates Mgmt(Read)

Estates Mgmt(Read)

Costs(SAP)

Costs(SAP)

FMS(JCI)

FMS(JCI)

Maintenance(Maximo)

Maintenance(Maximo)

HR(SAP)HR

(SAP)

•No of people entering buildings

•Service level Achievements•Response times•Resolution times

•Real estate costs by 10 categories•Over 8 countries•Over 4 years

•200 locations•9m ft2•50 divisions•CAD

•Insurance•Rent•Rates •Service Charges

•24,000 staff•10,000 suppliers•Distribution by groupActivity, job

•KPI’s•SLA’s•Self Assessment•Dashboard Criteria

•Approvers codes•Suppliers

Space Utilisation& Charging


MaintenanceStrategy

MaintenanceStrategy

SLA / KPIManagementSLA / KPI

Management

Portfolio Analysis

Portfolio Analysis

Asset Management

Asset Management

IncidentManagement

IncidentManagement

EstatesManagement

EstatesManagement

StatutoryObligationsStatutory

Obligations

DashboardDashboard

ProgrammeManagementProgramme

Management

600 Users

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One of the Major IBM Goals - TCO by Location

FM & Projects Estates

Fixed Asset Total

Location Ops Projects Utilities Rent RatesService Charge Ins’ Net Book

Basingstoke Normandy Plan

Actual

Belfast Bruce Street Plan

Actual

Bristol Temple Quay Plan

Actual

TRAMPS SAPMaximo EntechSource Systems:

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Some of the Benefits

The ability to look at the whole portfolio, combining data from all RESO activities (estates, FM and projects); and from elsewhere in IBM (eg HR)

Data definition and ownership is now back in-house, without duplicating suppliers’ activities or systems – we have protected IBM’s intellectual property and critical data

Improved access, common and consistent data and thus improved decision making

Improved visibility and thus tighter Business Control

Improved confidence / acceptance of outputs

Reduced duplication of effort and resource, streamlined processes

Flexibility to alter the supply base and the ability to specify our data exchange requirements in any new contract

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Introduction

Joe Potter

Asset Systems LeadIBM UK Global Business Services

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PLACEHOLDER

Placeholder

For Demonstration of

IBM’s Property Department’s own

Property Performance Management

System

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IBM’s plans for RESOBase

RESOBase

AccountsPayable

AccountsPayable

Security(CASI)

Security(CASI)

Space (Archibus)Space

(Archibus)

Estates Mgmt(Read)

Estates Mgmt(Read)

Costs(SAP)

Costs(SAP)

FMS(JCI)

FMS(JCI)

Maintenance(Maximo)

Maintenance(Maximo)

HR(SAP)HR

(SAP)

•No of people entering buildings

•Service level Achievements•Response times•Resolution times

•Real estate costs by 10 categories•Over 8 countries•Over 4 years

•200 locations•9m ft2•50 divisions•CAD

•Insurance•Rent•Rates •Service Charges

•24,000 staff•10,000 suppliers•Distribution by groupActivity, job

•KPI’s•SLA’s•Self Assessment•Dashboard Criteria

•Approvers codes•Suppliers



MaintenanceStrategy

MaintenanceStrategy

SLA / KPIManagementSLA / KPI

Management

Portfolio Analysis

Portfolio Analysis

Asset Management

Asset Management

IncidentManagement

IncidentManagement

EstatesManagement

EstatesManagement

StatutoryObligationsStatutory

Obligations

DashboardDashboard

ProgrammeManagementProgramme

Management

600 UsersMaximo

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Maximo Property Performance Management Solution Architecture

PPMS Data APIs (SOA)

Archibus SAP Read Tramps CASIEntechTabware … …

Data Load Cartridges

Maximo PPMS Extension

Maximo (Transactional) Core Model

Extended objects & attributes

PPMS Data ModelExisting‘Transactional’

Maximo

New ‘MIS’Maximo

Buildings Databook

Estates

Finance

FM…… etc

PPMS Reports

SampleSource

Systems

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Questions?

Andrew Carey

Jeff Wilson

Joe Potter

The Role of Technology in Supporting Effective Asset Management

Documents

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