From Concept to Execution How to Make IWMS a Reality · proprietary to TRIRIGA, Inc. an IBM Company...

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1 © 2010 TRIRIGA INC. | TRIRIGA PROPRIETARY AND CONFIDENTIAL © 2011 TRIRIGA, Inc. an IBM Company | PROPRIETARY AND CONFIDENTIAL

From Concept to Execution:

How to Make IWMS a Reality

Frank Kayden

Director, Global Portfolio Planning

and Real Estate

Dow Chemical Company

Wednesday, October 19, 2011

Dhruv Jain

Senior Program Manager

Computerized Facility Integration

2 © 2010 TRIRIGA INC. | TRIRIGA PROPRIETARY AND CONFIDENTIAL 2 | © 2011 TRIRIGA, Inc. an IBM Company | PROPRIETARY AND CONFIDENTIAL

Today’s Agenda

• Company Overviews

• Business Drivers and Criteria

• Business Case Development

• Expected Benefits

• Lessons Learned


Dow Overview

• Dow Chemical – $60 Billion in Sales

– Approximately 50,000 employees in

300+ locations & 50+ companies

• Lab and Office Facilities

Management (LOFM)

Global Organization – 200+ employees

supporting 20 million sq. ft. of lab and

administrative office space

• Mission:

LOFM is a recognized, globally

competitive partner delivering world-class

facilities management services and

solutions that enable Dow businesses to

run better, faster and safer.


Dow Overview (Continued)

Value Creation: Implement processes that anticipate changes

in Dow’s workforce and move toward 90%

capacity utilization, lowering the cost per

occupant

•Enable Dow’s business and work

processes by effectively managing office

and lab buildings

•Enable employee productivity and

growth through transition to an open,

flexible work environment

•Define and implement standards to

assure quality and consistency


CFI Overview

• Servicing clients since 1990 • Over 1.5 billion sq. ft. client portfolio

• Exclusive focus is RE / FM

• 4 primary service Offerings: 1. Strategic Consulting

2. Implementation / Integration

3. Support Services

4. Bundled Services

• 18 TRIRIGA-certified resources

• 100+ IWMS professionals

• Dow business partner since 2005


Business Drivers and Criteria



• Centralize and standardize FM and CRE functions for

Dow’s laboratory and office facilities – Global Solution – Regional Implementations

• Assess IWMS solutions to support the strategy – Improve services and efficiencies

through a common platform

– Scalable

– User acceptance / usability

– Benchmarking (internally

and externally)

• Build on successes – TRIRIGA implemented in 2006

to support space cost recovery

– Recover $200MM annually



• LOFM Integrated Workplace Management Solution

(IWMS) Objectives: – Operational Performance - Improves the efficiency of real estate and

facility management functions • Productivity improvement in existing building portfolio & utilization

• Improves the effectiveness of facilities planning & investments

• Technologies transform facilities into enablers supporting workforce mobility

• Productivity gains in building projects

• Time to market integration/divesture of Dow MA&D activities

– Financial Performance - Increases financial return on real estate and

facility assets • Cost effective account management and service provisioning

– Environmental Performance - Reduces energy consumption and green

house gas emissions of buildings and facilities

- Strategic Philosophy: Leverage outsourcing partners such as CBRE to

manage facilities and the TRIRIGA IWMS to manage money



• Technology-related activities in 2010: – Operations Maintenance – RFP to assess tools to support organization

as it centralizes and standardizes

– Real Estate – need for centralized source of market / evaluation

activities

– Strategic Planning – evaluation of SFP to support planning activities

– Project Management – need to standardize forecast and spend

– Executive Reporting and Dashboards – need for centralized reporting

and reduced manual process

– TRIRIGA Upgrade evaluation – significant increase in functionality for

portfolio and space management


Business Drivers and Criteria: Integrated Solution

Momentum Platform

Project Management

Project Management Portfolio Management

Transaction Management

Real Estate Management

Lease Administration Condition Assessment

Operations Management

Operations Management

Inventory Management

Strategic Facility Planning

Facilities Management

Asset Management

Offline Email

Notifications

& Alerts Approvals Reports Portals Security

Business

Connect

TRIRIGA Real Estate Environmental Sustainability (TREES)

Workplace Performance Management– Real Estate, Projects, Facilities, Operations

http://www.tririga.com/products/products-trees


Business Case Development


Business Case Development

Elements of the business case: – ROI analysis - >$9MM over three years

– Program plan:

• Implementation

• Support

– Enterprise software purchase


Business Case: ROI Analysis

• Real-time dashboard metrics – Cost per occupant & square foot

– Utilization rates of facility asset & inventories

• Offices & Labs - high thru put, High Bay, Heavy,

Pilot Plants, Constant Temperature Labs, etc.

– Facility condition classifications

– Improved service revenues – chargebacks

– Improved decision making

– Improved planning & forecasting

• Operations & projects


Business Case: ROI Analysis (Continued)

Analysis of

system

options - Prioritized

implementation

schedule

Best-value

selection - Cost

reduction

- Cost

avoidance

- Improved

productivity

- Scalable

portfolio

planning


Business Case: ROI analysis (Continued)

Data Driven Decisions Modeled From: • Performance management

• Data aggregation

• The right information at the time of decision

• Individual applications


Business Case: Program Plan

Multi-year program plan to encompass all services:

• Cost estimates, timeline, priority for each module:

• Implementation of modules:

- Planning and

Design

- Prototype,

Build,

Transition to

Operations


0 1 2 3 4 5

$9,965,793 $10,040,793 $10,040,793 $10,040,793 $10,040,793

10% 15% 25% 40% 65%

$996,579 $1,506,119 $2,510,198 $4,016,317 $6,526,516

$391,767 $391,767 391,767$

$996,579 $1,897,886 $2,901,965 $4,408,084 $6,526,516

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

$0 $1,307,579 $1,282,579 $740,259 $488,585 $513,585


$0 ($310,999) $615,307 $2,161,706 $3,919,499 $6,012,931

$0 ($310,999) $304,307 $2,466,014 $6,385,513 $12,398,444


$0 $1,233,565 $1,141,491 $621,536 $387,005 $383,780

$0 $940,169 $1,689,111 $2,436,546 $3,491,615 $4,876,992

$0 ($293,396) $547,621 $1,815,010 $3,104,610 $4,493,212

$0 ($293,396) $254,225 $2,069,235 $5,173,846 $9,667,058

6%

$9,667,058

-23.78% 11% 69% 153% 257%

1.51

18.1

212%

Total Capital Savings

Total benefits realized

Costs

Total costs

Cash flow and ROI statement

ROI measures

Internal Rate of Return

Discounted benefit flow

Discounted costs

Payback (in months)

Discounted benefits

Payback (in years)

Cost of capital

Net present value

Return on investment

Total discounted benefit flow

Total cumulative discounted benefit flow

Annual benefit flow

Cumulative benefit flow

YEAR

Benefits

BENEFITS

Annual Cost Savings

Implementation filter

Annual Cost Savings

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Benefits

Costs

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Benefits

Costs

Business Case: Program Plan

Multi-year program plan to encompass all services: • Post-implementation maintenance and planning:

- Application

support

- Drawing &

data

management

- Hosting and

infrastructure

- Improvement

projects


Business Case: Software Procurement

• TRIRIGA Application and Platform

• TRIRIGA Space Management

• TRIRIGA Operations &

Maintenance

• TRIRIGA Projects (Enterprise

Project Management)

• TRIRIGA Real Estate

• TRIRIGA Facilities

• TRIRIGA Move Management

• TRIRIGA Offline

• TRIRIGA SFP

• TRIRIGA WPM – Operations,

Projects, Real Estate, Facilities

• TRIRIGA Facility Condition

Assessment

• TRIRIGA TREES

• Connectors : RSMeans, ESRI


Benefits and Lessons Learned


Current Status

• Software purchase

complete

• Program in place

• V3.1.1 and v10.0 upgrade

complete

• Data exchanges with SAP

• Enterprise Project

Management started in Q2

• Real Estate planned in Q4

• OM implementation started

in Q1, delay until 2012


Expected Benefits

Reduced Costs: • Real Estate Transactions and Portfolio Strategies

• Lease Administration

• Capital Budgets and Project Management

• Enterprise Asset Management

• Space Management (Occupancy, Moves)

• Operations & Maintenance

• Facility Condition Assessment

• Energy Modeling, Sustainability

• Central source of reporting

• Standardized processes and data structure

– Basis for future improvements

– Ability to benchmark – internal and external


Lessons Learned

• Have a plan – Define all the plan components

– Have the business process defined

– Be flexible to allow improvement to process

• Steering Committee – Need executive level oversight on status, issue

resolution, direction

• Understand organizational

requirements – Resources

– Roles / responsibilities are understood

– Integration points with external systems

• Select a great business partner like CFI!


Questions and Answers

From Concept to Execution How to Make IWMS a Reality · proprietary to TRIRIGA, Inc. an IBM Company...

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