Another twist on social networking....

I read a blog by Maguerite Manteau-Rao, who provides some thought provoking questions around whether 'social networking in green is dead' in a recent Cleantech blog post.

(At the personal or individual level this is probably true, but not necessarily at a business / corporate level). In particular, she also asks: "what type of behavioral strategies are needed in sustainability"?

I think that there is far too much pressure on individuals to be sustainable; there are certainly specific opportunities out there (saving energy, minimizing GHG impacts), and there are those people who will serve as thought leaders and take it upon themselves to drive change. But for the mass of people (i.e. to 'cross the chasm'), daily life and getting by are the key drivers of day to day behavior. There are regulatory, brand mgt, revenue generation, and production cost drivers that need to evolve, until individual behaviors evolve.

So, from this standpoint, 'behavioral strategies' should be reviewed and modified (if necessary) by those groups (industry, government, education) who want to modify manage behavior (i.e. buying products, getting involved in social initiatives etc) on the part of individuals.

From a 'professional' standpoint (that is: those individuals who will make their living in the sustainability field), there are ample opportunities to change behavior; if for no other reason than to live a lifestyle of choice (and to satisfy intellectual and moral needs). I just wrote a column on TriplePundit on this opportunity. Read more!

Article on 'AEC Bytes' for Green Technology Trends in Buldings / Facilities

I contributed to AEC Bytes, a leading source for AEC technology trends, and edited by Lachmi Khemlani. This article follows up on past articles and blog posts I have written on the transformation of the buildings industry and influence of key market drivers such as BIM and virtual modeling. I incorporate new insights I have gained to provide additional market strategies for both AEC tech firms as well as 'cleantech' firms in the energy efficiency, energy modeling, CSR reporting, health & safety, and lifecycle assessment segments.

Link: http://www.aecbytes.com/viewpoint/2008/issue_39.html Read more!

Blog post on TriplePundit.com

I contributed a recent post to TriplePundit; topic is how the major market drivers such as BIM (Building Information Modeling) in the AEC sector are allowing for growth opportunities of green technologies. (click on this blog post title to get to the 3P post).

I will follow up next month on TriplePundit with some strategies for cleantech growth, and incorporate some new insights from tech firms I have been working with. Read more!

Comments on the recent Cleantech SF Panel on Information Tech Opportunities

At the recent Cleantech Forum in San Francisco (link), there was a panel discussion on the opportunities in software and information technology, specifically those applications in the energy efficiency of data center operations.

Software and information technology for energy efficiency in data center operations is certainly a big market opportunity, but I think there are significant other markets for info tech as well:

- Energy modeling and analysis for facility operation and optimization; taking advantage of intelligent objects in 3D modeling

- Visualization technology that allows more stakeholders to view, collaborate on, and optimize green technology use

- Lifecycle assessment and PLM for ‘green - friendly’ product launches (associated with REACH and RoHS regulations in the EU and Asia, for examples)

- Sustainability technology platforms for assessing and reporting on compliance (government and NGO) on an enterprise level

- Carbon Emissions Inventory Assessment and Reduction

This is just a broad view of IT markets in cleantech, but does include the markets that I believe are poised for significant growth.
Read more!

Building Information Modeling & Green Technology Opportunities

I have been working on BIM (Building Information Modeling) strategy for the past month, and have also had the chance to interview a number of leading professionals in the green building technology area, as to how BIM might be leveraged to drive growth of green building technologies. A summary of this overview is provided here, with follow up posts on specific market opportunities.(A column covering these topics will be published in early March on a leading green technology web site).

The terms ‘cleantech’ or ‘green technologies’ have been applied to a wide array of processes, technologies, and services. Within this overall market space, there exist a number of specific target market segments such as transportation, energy development, and manufacturing, as examples. The buildings & facilities segment is a large target market segment for green technologies, given the size and projected growth around the world and opportunity to leverage a disruptive new technology for adoption of green technologies.

The building & facility industry is undergoing radical change today, as owners are demanding more project visibility; lower costs, better risk management (scheduling & costs), and increased use of technologies that will allow for less waste, more efficient energy consumption, and ultimately lower costs over the lifecycle of the facility (from design and construction to operations).

What is Building Information Modeling (“BIM”)

The rapid (but uneven) adoption of BIM in the buildings industry has changed the way facilities are designed, constructed, and even operated. The National Institute of Building Sciences (NBIS) defines BIM as “a digital representation of physical and functional characteristics of a facility, serving as a shared knowledge resource of information”. This knowledge or database contains the ‘intelligent objects” of a structure; not just lines and arcs typically associated with traditional CAD or drawing tools. As such, BIM can represent multiple, dynamic, and collaborative views of information such as spatial data (3D), un-structured data (text), and structured data (databases, spreadsheets), as well as new views including scheduling and cost information (termed ‘4D’ and ‘5D’, respectively).

This type of technology, with its associated benefits of visualization, built – in intelligence, and simulation is a dramatic step forward from the current technology used for design and construction: 2D CAD (computer assisted drawings). Patrick Suermann is a Testing Team Leader for NBIMS (National Building Information Modeling Standards Committee, a part of NBIS), and has led a number of BIM deployments for the US Army Corp of Engineers (USACE). “BIM is the next evolution of CAD maps, and allows for the design of a virtual model” states Suermann.

Why is the BIM adoption trend important for green technology companies to understand and incorporate into their market strategies? The use of BIM (both the technology and changes in increased collaboration) allows for significant exchange of data & information by all stakeholders involved over the lifecycle of the facility: owners, architects, engineers, contractors, and operators. This information includes that associated with green technology adoption: efficiencies in energy use; increased emphasis on environmental health; and the drive to generate less waste.

BIM and GreenTech Benefits to Owners & Operators

BIM allows provides the following benefits to stakeholders, with opportunities for green technology to add value:

Risk Management: BIM may provide more visibility into projects, and allow owners to manage risk through a collaborative and inclusive process. The inclusion of green technologies allows stakeholders to collaborate as well in this process.

Materials Management: Developing bid quantities and verifying them in a BIM process allows for more efficient material use, as well as opening opportunities to use more energy efficient and environmentally friendly materials. BIM may align scheduling and material quantities for better cash flow analysis as well.

Marketing & Branding: BIM provides a visual representation of a facility, and encourages collaborative review and discussion by stakeholders and public alike. Inclusion of greentech furthers the visual representation, by illustrating energy saving concepts and adherence to key green certifications, such as LEED. Green branding is thus improved as well

Portfolio Management: For owners of multiple facilities or enterprise level owners, BIM allows for the re-use and purposing of models to standardize design and construction; thus driving down material use & costs, as well as technology applications across a portfolio.

Optimization of Building Performance: BIM allows for integrated facility management, so that energy use, occupant health & comfort, and space planning may be monitored and improved upon.


“Not only can BIM optimize building performance via less waste generation during construction, and improved energy management during operation, it can accelerate certification for LEED status”, said Buddy Cleveland, SVP of Applied Research at Bentley Systems (www.bentley.com) , a leading technology provider in the architecture, engineering & construction (AEC) market. LEED (‘Leadership in Environmental and Engineering Design’) is a highly accepted rating system for the design and construction of green buildings.

According the 2007 Green Index Study (conducted by Autodesk and the American Institute of Architects), 44% of architects surveyed are using BIM currently. The report went on to state that architects adopting BIM are more likely to adopt green building design software practices such as HVAC energy analysis, energy modeling, and also the evaluation of more environmentally - friendly building materials.

But across the AEC industry, the general interpretation, use, and even terminology of BIM are still in an early phase. “People are defining BIM as whatever they want it to be” commented Buddy Cleveland. BIM training, cultural acceptance (in the AEC sector), and business process modifications are all unique challenges that must be overcome for continued adoption in the marketplace.

Green Technologies in the Buildings & Facilities Industry

General categories of green technologies that apply to the buildings and facility market have been documented in many periodicals; for the building & facility industry, the key technologies of interest are:

Energy & Resource Efficiency (HVAC systems, day-lighting, water management & re-use)

Alternative Energy Development (self - contained solar, wind, and other power sources)

Advance Material Use (for insulation, walls, windows, structural)

Information Management (energy modeling, sensors, life cycle assessment)

Environmental / Health (occupant health & comfort, waste reduction, carbon emissions management)


Next up: the role of federal owners in driving BIM & Greentech growth, and some recommended strategies for greentech start ups.
Read more!

Column on Cleantech.com: "Driving Cleantech Growth via Engineering & Environmental Channels"

I authored a column on Cleantech.com this week, link is here; column is below.

Don't reinvent the wheel — cleantech startups should engage E&Cs.

The cleantech sector and its subsectors is now reaching a critical mass, in terms of investment momentum, public awareness and numbers of viable prospects. A number of segments, such as solar, are already in a land grab mode, where participants believe rapid client acquisition is the primary activity to ensure company success.

The current market dynamics are similar to those from the early growth & maturation phases of Information Technology a few short years ago. There are a number of lessons we can take away from the growth demands and strategies experienced in that sector, including the value of the Environmental Consulting and Engineering & Construction (E&C) channel in accelerating the adoption of technologies.

Similarities to the software/tech start up market?

There are a number of similarities between the cleantech industry and the software/tech start up industry. They include:

- Founders: Like many software start ups, cleantech start ups are usually founded by strong engineering and academic individuals, who are not necessarily strong in market strategy and sales.

- Investor experience: While there are a handful of investors with deep domain expertise in specific technologies, many new investors do not have that same level of expertise. We have seen evidence of this with the rapid influx of capital into this nascent sector.

- Need for reference accounts: Creating demand in the market requires the identification of strategic accounts where successful referenceable pilot projects can be deployed.

- Go to market strategy: Demand fulfillment may be met via a direct sales force, or via indirect sales & deployment channels, dependant upon a number of factors, including the complexity of solution, the role of the technology in a business solution, and degree of access to markets & decision makers.

- Alliances and partnerships: when the technology and team are an integral part of a larger solution (such as engineering design & construction of a desalination plant, for example), the development of a partnership ecosystem is required, in order to integrate and deploy solutions across key sectors.

The environmental consulting and engineering & construction channel

Cleantech start ups may build their own sales forces to sell solutions, but most of the time their technology is just one part of an overall infrastructure or building/facility solution. Another sales approach is to build indirect sales & deployment channels.

I suggest the key to success for many cleantech start up companies is to effectively leverage the environmental consulting and engineering & construction channel (that is, the services firms that provide consulting, design, construction management and facility operations) to sell and deploy solutions, thereby accelerating cleantech adoption.

Here’s why:

- Solution requires a range of engineering expertise: Clean technologies in most cases will require specialized engineering that can be provided by the services team in the cleantech company, but will also require traditional engineering design & construction management expertise.

- Target customers already work with E&Cs: Target verticals that may adopt cleantech include process and discrete manufacturing, transportation, telecom, government, real estate and infrastructure. Companies in these verticals rely upon global E&C firms to build business cases, develop conceptual and detailed designs, manage construction operations, and in many cases, actually operate facilities as well; E&Cs are 'trusted advisors' for capital expenditure projects.

- E&Cs are already engaged with cleantech: E&Cs have vetted a number of clean technologies, especially in waste-to-energy, green building and wind and solar power. But projects, training, and alliances with cleantech vendors are scattered at this point, creating opportunities for new vendors to step in. Cleantech execs should familiarize themselves with key strategic initiatives at global E&Cs today in order to build an ecosystem of focused and trusted partners.

- E&Cs are actively seeking new technologies to leverage: Why? The desire to capture higher margin consulting projects (which could include cleantech due diligence consulting, for example) in what is traditionally a low margin business, as one reason. Driving more growth and market share in core markets of water, building design (including building information modeling, or "BIM'), IT (for ‘green’ supply chain management, for example) and energy development, is another reason. Their question is: can cleantech serve as a ‘catalyst’ for more E&C growth?

Sales strategies

What are some key takeaways for sales and growth strategies for cleantech companies?

- Business development and strategy should focus on building a partner ecosystem and driving sales from these channels, especially with larger engineering & construction firms. The business development team should have strong domain experience in core tech areas, but should also possess a very good background in developing a go to market strategy with a significant alliance/channel component, possess a good rolodex or set of relationships with a broad array of E&C business unit executives and certainly have a consultative sales approach.

- The alliance & partner development process will involve roadmap & technology discussions with key E&C practice leaders. Within most global engineering & environmental firms there are thought leaders (individuals and groups) that take the lead in developing and disseminating technology for new business opportunities within the company.

- Target key executives within E&Cs. The corporate strategy executive (in itself a relatively new role for the E&C industry) is chartered to leverage internal expertise and nurture emerging growth opportunities across the enterprise, and as such, is a natural ‘executive sponsor’ for a cleantech partner.

- Develop a network of investors and key advisors that have relationships both within E&Cs as well as at their target client accounts

Leveraging the E&C channel should facilitate more rapid growth and quicker profitability for cleantech companies. Keep in mind that the E&C industry can be conservative at times and is focused on the total engineering solution, of which cleantech plays a part. Your objective should be to communicate the value your technology (and expertise) provides to both the E&Cs and their target accounts.

Read more!

Integrated Tech / Services business models

Recent blog postings (link is here) in the greentech media have highlighted the investment opportunities for clean technologies integrated with downstream services. These services may include traditional consulting such as strategic planning and auditing, as well as more engineering design, construction, and especially operations or asset management services.

Discussions with executives at global Engineering & Construction and Environmental Management companies indicate that some firms are now positioning service lines in energy efficiency to take advantage of new technologies, as well as integrating new water treatment technologies into their water treatment and distribution practices.

Licensing relationships are currently being employed with the larger energy mgt and water treatment equipment manufacturers (think GE, Honeywell, Siemens, et al), but the real opportunity is discovering the start up or privately held cleantech companies; those that may not have the brand and marketing horsepower as the larger aforementioned equipment companies, but have innovative clean technologies, and also may be easier to work with (and license technologies from).

Looking at the water market, a good example could be new advances in filtration technology for water treatment. An E&C may position itself in the planning stages of a project to perform technology due diligence, and then also integrate newer technologies into the downstream engineering phases, thus driving additional value from optimizing (and possibly re-engineering) plant & facility design.

These business (and investment) opportunities reminded me of the real estate site evaluation market that was hot in the late 80s and 90s. Service providers (particularly E&Cs) had a great business in providing site evaluations for buyers who needed due diligence and perhaps extra negotiating power for acquiring commercial and industrial properties. The evaluations (or audits) allowed the service providers (engineering & construction, environmental) to then drive follow - on work: HVAC, environmental assessment & remediation, structural engineering, etc. While new and innovative technologies were not necessarily part of this business model, the use of front end audits and due diligence services allowed E&C firms to position themselves for downstream engineering and consulting services / revenues.
Read more!

Scaling Solar tech.....quickly.....

Read an interesting post in Earth2Tech about the challenges in scaling solar technology businesses to a large (and hopefully ready) market; link is here.

Solar is now in a "land grab" mode; with the race to grab as many customers as quickly as possible. Makes me think that if demand is there, then the key to scale is to build out your channels as efficiently and effectively as possible.

The key channel to leverage? Correct: the engineering & construction (E&C) industry.

Many of the solar tech vendors have focused on smaller buyers (i.e. residential owners, smaller real estate companies). While those entities have served as thought leaders, the market itself has moved mainstream. The challenge is to secure larger clients (corporate real estate and facility owners, and builders & owners in heavy industry). I think the key here is to leverage channels that can both sell and help deploy solutions across key verticals; and get your technology out to a large audience as fast as possible.

Clearly, the E&C industry is poised to sell such solutions, although culturally, it is not their mindset to do so; this is a very conservative industry that has traditionally not driven additional revenues from technology sales (unlike the system integrator industry).

But, there is a strong desire on their part to provide thought leadership to their clients around emerging technologies, including those in solar and energy development. E&C's can leverage this knowledge to provide a valuable differentiator for business development purposes in competitive 'bake-offs'. Also, it may provide a mechanism to drive higher margin consulting and engineering design services; which are certainly welcome in what is a low margin services industry. Read more!

E&C Strategic Initiatives: keys to partnering & selling

Have had discussions with strategy executives at two global environmental consulting firms recently, around some of the key initiatives that they are funding:

• Capturing higher margin businesses, from organic growth as well as M&A efforts
• Growth in targeted markets of water (CSO, distribution systems) and energy mgt
• Identifying and investing in emerging business lines of revenue

Of particular interest to both execs was the ability to leverage technology, both information technology as well as 'cleantech', to drive new revenue streams. As with most global engineering & environmental firms, there are 'pockets' of expertise, design centers, or practice groups that take the lead in developing and sharing IP around leveraging technology for new business opportunities. The corporate strategy executive (in itself a relatively new role for the E&C industry) is chartered to leverage that internal expertise and and nurture growth opportunities across the enterprise.

What does this mean for IT and cleantech start ups that wish to sell into and partner with the global E&Cs? I believe business development and strategy at these firms should focus on building a partner ecosystem and driving sales from these channels, especially with larger engineering & construction firms, who serve as the 'trusted advisors' to end user industries (such as gov't, process mfg, and discrete mfg). The sales process will involve roadmap & technology discussions with key practice leaders, as well as development of corporate strategy executives who may provide executive sponsorship.

The cleantech & IT start up business development team should have strong domain experience in core tech areas, but should also possess a very good background in developing a market strategy with a significant channel component; a good rolodex or set of relationships with a broad array of E&C business unit executives; and certainly a strong consultative sales approach. Read more!

Accelerating adoption of Cleantech through the Engineering & Construction channel

Thinking through some of the key issues facing the cleantech industry, it would appear that as a whole, this industry (or sections thereof) will need to rely upon established channels in order to evangelize and deploy solutions across key sectors.

The engineering, environmental & construction industry (that is: those services firms that provide consulting, design, construction mgt, and facility operations) is an industry that could be leveraged effectively to accelerate adoption:

• Multitude of cleantech: solar, nano, intelligent energy mgt systems, biofuels (requiring a range of domain expertise, but consistent engineering design expertise)

• Target industries to adopt are traditional verticals: process and discrete mfg, transportation, telecom, government, infrastructure

• These industries rely upon the global Engineering & Construction firms to build business cases, develop conceptual and detailed design, manage construction operations, and in many cases, actually operate facilities as well

• E&Cs have invested in specific 'cleantech' projects, usually around biofuel design - build; wind and solar power, BUT: projects, training, and alliances with cleantech vendors are scattered; no consistent strategy

• Opportunity exists to foster relationships, invest in training, and build alliances with E&Cs; specifically business units that are targeting specific verticals or those that are focused on new energy technologies

I would be interested in hearing from those in the cleantech industry (entrepreneurs, investors) as to their thoughts on this channel strategy.

Read more!