IBM Tririga nástroj preReal estate portfólio manažmentDruhá strana mince facility managementuJuraj Polák, Cloud & Smarter Infrastructure [email protected]

Agenda eFocus 2013 – lesson learned Why to care about FM and who should care? Tririga – what is it? (not easy to say) IBM – partner in FM – Gartner position and proposal to help you Customer case10.04.2014FM Camp 2014 - IBM Tririga nástroj pre Real Estate portfólio manažment2

eFocus 2013 – lesson learned Facility manager – no access to C level Focus on Facility maintenance Budget forecasting FM providers – preferred if have some SW support IBM Maximo key offering Thanks for last year rating at feedback form10.04.2014FM Camp 2014 - IBM Tririga nástroj pre Real Estateportfólio manažment3

FM Strategies to reduce operating costFM Benchmark Actions – what to do tobecome a leader? Integrate FM with othersystems Leverage energymanagement solution Standardize processes tomeasure FMperformance

Why to care about FM and who should care?23 3Real estate is the second largest In most organizations the realexpense on the incomeestate portfolio is on the balancestatement for most companies.sheet as the third most valuable orexpensive single asset.202542 percentBy 2025, buildingsworldwide will becomethe top energy consumers.Worldwide, buildingsconsume 42% of allelectricity – up to 50% ofwhich is wasted.30 percentFacilities investments andoperating costs can be morethan 30% of corporate annualspending.1Buildings are the number 1contributor to global CO2emissions.

Tririga – what is it?10.04.2014FM Camp 2014 - IBM Tririga nástroj pre Real Estate portfólio manažment6

Key Value PropositionsIWMS AreasRE PortfolioManagementUnderstand real estaterequirements due toexpansion or M&AActivitiesVisibility to lease/rentaltransactions events canallow opportunities tosecure below market ratesor vacate underperforming locationsIncorporate demographicsinto real estate locationdecisionsCapital ProjectsAbility to identify prioritiesfor fundingUnderstand project risks andfinancial benefits ofpotential investments forbetter decision makingSpace ManagementUnderstand and Improvefacility utilization bygeography, location, andorganizationImplement a mobilitystrategyView performance metricsTrack locks and keysUnderstand payback periodsand annual savingsImplement streamlinedmove, add, changeprocessesImprove project delivery byaccelerating schedulesAccurate costing informationby connecting to RSMeansCapture paper CAD baseddocumentation in anelectronic repository forbetter accessOperationsEnergy &EnvironmentalSustainabilityReduce response times torepair requestsUncover viableenvironmental projectsReduce inspection violationsProvide data to assist inproject prioritization concrete analysis offinancial andenvironmental benefitsMinimize lost productivityresulting from facilitydowntimeImprove funding visibility forbetter funding decisionsMaximize maintenance staffutilizationContain maintenance costsIncrease the frequency ofdeficiency reportingFocus on long-termplanning analytics toidentify trends andenable comparisons overtimeTrack financial andenvironmental progressof the projects againstdefined targets.

TRIRIGA improves performance inthree key areasImproves Real EstateOperations Pre-built business applications Automated workflow processes Critical action alertsIncreases Return onFacility Assets Pre-built performance metrics Embedded industry benchmarks Multi-dimensional analysisReduces Energy Useand Carbon Emissions Award winning energy andenvironmental software Energy, Water!!!, Waste and Carbontracking Environmental investment analysis

TRIRIGA’s solutions deliver proven value REAL ESTATE Operational Performance (BC Hydro) FACILITIES PROJECTS OPERATIONS Improve RE transactioncycle time Eliminate penalties& overpayments Reduce vacancy rates Improve project cycle time Eliminate budget over-runs Remove resource bottlenecks Improve spacemanagement Reduce churn rate Increase occupancy rates Improve response time Reduce facilitydown-time Improve facility conditionindex Increase return on assets Reduce real estateexpense Increase revenue Reduce project costs Accelerate store delivery Eliminate costly changeorders Reduce occupancy costs Increase utilization rate Reduce move costs Reduce cost of operations Reduce service costs Reduce maintenance costs Select sustainable sites Eliminate inefficient highcost buildings Achieve LEED-NC Implement sustainablebuilding design andconstruction Achieve LEED-NC Reduce energy costs offacility operations Reduce emissions offacility operations Implement Commissioning Achieve LEED-EB; LEED-CI Achieve Energy Star Rating Financial Performance(GE) Environmental Performance (Nokia)Reduce vacant spaceIncrease space utilizationAchieve LEED-EBAchieve LEED-CI

TRIRIGA Workplace Solution – One Technology Platform, OneCommon User Experience Role/Process-based Navigation Simple-to-Use Interface Adapts to User Needs Reminders Quick Links My Bookmarks Performance Management and Reporting Pre-built Metrics Crystal Reports Time-trends CAD Reports My Reports Award-winning Applications Real Estate Projects Facility Operations Sustainability Single Technology Platform Enterprise-class Database Document Repository Web-based Configuration Upgrade Management Interoperability TRIRIGA Business Connect TRIRIGA Off-line TRIRIGA Data Connect ESRI GIS Server AutoCAD MicroStation

TRIRIGA Workplace Enterprise-Class Applications TRIRIGA Real Estate TRIRIGA Facilities TRIRIGA Projects TRIRIGA Operations TRIRIGA Environmental Portfolio Planning Program Management Space Management Contact Center CO2 Emission Tracking Site Selection Fund Management Space Chargeback Service Management Utility Tracking Transaction Management Scope Management Space Requests Warranty Management Waste Disposal Lease Administration Cost Management Strategic Planning Preventive Maintenance Water Consumption Lease Accounting Schedule Management Move Management Facility Assessment Green Opportunities Tracking AR Tenant Tracking Resource Management Reservation Management Security/Key Mgmt LEED/BREEAM Certification Payment Processing Quality Management Personnel Provisioning Inventory Management Energy Star Integration Client Requests Vendor Engagement CAD Management Capital Planning Resource Planning Procurement TRIRIGA Core Components Geographies People Receiving Customer Self Service Reporting Locations Specifications Invoicing News WPM Metrics Organizations Assets Requests Graphics GIS Mapping Vendors Contracts Tasks Document Management GANTT Schedules

Why to care about FM and who should care?23 3Real estate is the second largest In most organizations the realexpense on the incomeestate portfolio is on the balancestatement for most companies.sheet as the third most valuable orexpensive single asset.202542 percentBy 2025, buildingsworldwide will becomethe top energy consumers.Worldwide, buildingsconsume 42% of allelectricity – up to 50% ofwhich is wasted.30 percentFacilities investments andoperating costs can be morethan 30% of corporate annualspending.1Buildings are the number 1contributor to global CO2emissions.

IBM TRIRIGA is named in Leaders quadrant forIWMSIGartner, “Magic Quadrant for Integrated Workplace Management Systems” by Rob Schafer, June, 2013This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from IBM.The Magic Quadrant is copyrighted 2013 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace,as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meantto be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

IBM TRIRIGA is a leader in the “Leaders” quadrant of theGartner IWMS Magic Quadrant“IBM’s global financial and human capital resources areamong IBM TRIRIGA’s core long-term strengths.”– Gartner, Integrated Workplace Management Systems, 2013IBM TRIRIGAKey Findings: Ranked highest in “Completeness of Vision” IBM TRIRIGA delivers a robust suite of IWMS applications “Customer feedback indicates that IBM has brought rigor and a morestructured approach to IBM TRIRIGA’s upgrades and enhancements.”

TRIRIGA leads commercial market and publicPublic Sector –7 of the 15Federal ExecutiveBranchesLarge Commercial - 6 of theFortune 10Mid-sized Commercial – All MajorIndustriesPartial TRIRIGA customer list

Customer Case Study – Operational Performance One of the largest electric utilities in Canada, BC Hydro generates hydroelectricpower and distributes that power to 4.2 million customers in British Columbia. Owns over 4,000 properties and 122,000 agreements Owns and manages 18,200 kilometers of transmission lines, 56,000 kilometersof distribution linesBusiness ChallengesImplementation Completes over 1,100 property contracts per year and 1,700moves per year Use 11 different systems to manage their portfolio results ininaccurate and inaccessible information Delayed reporting of acquisitions and disposals and timeconsuming to generate rents or validate rent charges Difficult to manage projects Phase 1- Market planning, deal management,portfolio management and project management Phase 2- Lease and transaction management,facilities management Implementing single solution to support multi-brands; allowinformation segmentation by and across brands Integration into Oracle financial systemKey Results : Properties located in a single repository provides comprehensive, reliable data “One Hydro" View of Properties and Assets Standardized processes across province Reduced project cycle time and service delivery costs

Customer Case Study – Financial Performance General Electric’s 15 businesses require one of the largest real estateportfolios in the world Global portfolio of 385 million square feet in 13,000 sites across 102 countries Manage 8,500 leases and 1,300 owned facilitiesBusiness ChallengesImplementation Ad hoc and non-standardized processes – want to consolidateand standardize real estate operations Missed real estate opportunities due to decentralized REoperations Inaccurate or missing data due to 15 different data sources Phase 1 – Transaction management Phase 2 – Portfolio planning, lease administration, financialmodeling, advanced decision support Phase 3 – Operations and maintenance, facility management Phase 4 – Asset Management, Service Management (viarequests and call center), Preventive Maintenance, Move andSpace Management, CAD IntegrationKey Results : Reported 198M in savings over first two years through portfolio right-sizingReduced transaction cycle times from request to final approvalReduced risk by consolidating into a single, global process for executing transactionsReported 1 Billion in Cost Savings to date

Customer Case Study – Environmental Performance Nokia is a global telecommunications and wireless services organization with 2006 revenuesof over 41 billion euros, operating profit of 5.5 billion euros, an employee base of 68,000employees, and operations in 130 countries worldwide. Nokia’s extensive real estate portfolio consists of 480 buildings comprised ofover 22 million square feet of office, R&D, production and warehouse space.Business ChallengesImplementation Average occupancy costs of 104 per square foot 50% annual churn rate that resulted in over 28,000moves per year Over 65 disparate, decentralized systems located in fivedifferent regions used to manage real estate lifecycle No consistency in operating processes, standards orperformance metrics Phase 1 – 6 months: interfaces, data migration, portfolio andlease management Phase 2 – 8 months: transaction management,project management, document management Phase 3 – 9 months: space management, operations andmaintenance, self service Environmental SustainabilityKey Results : Reduced Reduced Reduced Reducedelectricity energy consumption by 7% in 2006real estate portfolio by 3 million square feetannual occupancy costs by 500 million eurosglobal workplace organization staff from 480 to 127 employees

Partial TRIRIGA customer listGovernmentStateLocalHigher EducationTRIRIGA leads public sector

TRIRIGA leads commercial marketPartial TRIRIGA customer list