From our CRE Service Delivery and Outsourcing Thought Leader Contributor, EY.

Ernst & Young LLP (EY US) has transformed its US headquarters, at One Manhattan West in New York, NY, with an industry-leading building operating system (BOS) that streamlines operations and enhances the workplace by centralizing real estate management and using advanced analytics, AI (artificial intelligence) and ML (machine learning) for strategic decision-making. 

Three questions for corporate real estate leaders to consider:

1. How can organizations use a BOS to transform their facilities into intelligent, sustainable environments?
2. What outcomes can be expected from the successful implementation of a BOS in terms of building performance and user experience?
3. Which strategic principles are crucial for the effective deployment and use of a BOS to achieve organizational objectives?

 How can a BOS support the transformation to intelligent buildings?

EY US, a global leading organization in advisory services, has taken a significant leap in its digital transformation journey by implementing an industry-leading BOS from KODE Labs in its US headquarters at One Manhattan West in New York, NY. This strategic move is aimed at enhancing building operations, improving sustainability while elevating the workplace experience through the deployment of several key capabilities.

The BOS serves as a central hub, eliminating isolated point solutions and fostering a unified approach to real estate operations. By harnessing the power of advanced analytics, AI and ML, the BOS processes and integrates raw data from a multitude of building systems. Due to the open architecture design of the KODE Labs platform, EY US will be able to “plug and play” new technologies as they emerge, preventing the organization from being locked into a single solution or provider. These combined features empower EY US to manage large volumes of data for strategic decision-making, leading to positive outcomes relative to:

• Reduced energy consumption and operational costs
• Extended lifetime of mechanical systems
• Improved space efficiency
• Enhanced employee experience

“Buildings have evolved from static structures to dynamic, technology-driven ecosystems,” says Jeff Chulick, EY Corporate Real Estate Consulting & Technology. “We’re seeing that organizations are allocating portions of their building management budget to invest in technology to move toward more connected and intelligent buildings.”

Key outcomes associated with successful implementations

The BOS leverages internet of things (IoT) sensors, building systems and data integrations to manage buildings more efficiently and sustainably. Tangible benefits delivered by the EY BOS include:

1. Proactive maintenance:

   Fault detection and diagnostics, along with functional testing, help validate that equipment is optimally maintained, preventing downtime and enhanced performance.

2. Optimal start and stop:

   The BOS intelligently predicts mechanical run-time and automates set-points, which results in reduced energy consumption and operating costs, while preserving occupant comfort.

3. Automated functional testing:

   Through automated functional tests, the BOS detects mechanical issues, maintaining systems at peak efficiency and quickly addressing any irregularities.

4. Digital continuous commissioning:

Real-time, performance-driven analytics enable proactive identification of performance drift and early-stage fault/failure.

“The power of AI and ML integrated into the BOS unlocks tremendous opportunities for organizational efficiency,” says Chulick. “The capability to absorb vast data sets, derive insights and suggest actionable measures is a transformative leap forward for the industry.”

Organizations can typically achieve the following near-term results from a successful BOS implementation:

20%-30%	30%-40%	1-2 years	30%-40%
Energy savings	Operational savings	Asset lifetime extension	Space efficiency
Source: Kode Labs (2024), Use Case Handbook; EY-Parthenon analysis

Guiding principles for successful BOS deployment

To help achieve these outcomes, EY US emphasizes several guiding principles:

• Strategic planning: Develop a clear vision for BOS integration that aligns with the company’s goals and the needs of its users.
• Training and support: Offer comprehensive training and support to help ensure users are well equipped to leverage the BOS effectively.
• User engagement: Foster active participation from all stakeholders to increase the BOS’s potential and realize its full benefits.
• Continuous improvement: Embrace a culture of continuous enhancement to keep the BOS up to date with the latest technological developments.
• Performance monitoring: Establish robust monitoring to track system performance and the impact of the BOS on building operations.

The EY and KODE Labs collaboration brings together the strategic value of the EY corporate real estate team’s knowledge and experience and the technological innovation of KODE Labs BOS. The BOS is designed to streamline operational processes, improve energy consumption and enhance occupant experiences. By incorporating the BOS into the EY suite of capabilities, the collaboration offers real estate teams a comprehensive approach and a robust solution that can empower their organizations to effectively meet their strategic goals.

The views expressed in this article are those of the author and do not necessarily reflect the views of the global EY organization or its member firms.