Green Tech Market Trends, from the American Climate Values Survey

I had a chance to attend a briefing by EcoAmerica, which sponsored the American Climate Values Survey (ACVS), concerning climate change. Psychographic research was conducted by SRI to fully understand what motivates the American public to act on global warming.

This briefing was conducted with the purpose of sharing messages, defining specific population segments, and provide positioning information to foundations and policy groups (and perhaps 'green' product & solution companies that wish to influence (or sell to) consumer and commercial populations).

One area of interest to me was the opportunities for green technologies to influence public perception and consequently, policy making. The ACVS revealed that GreenTech is viewed favorably by those individuals who are "Onboard" (aware and motivated to act) as well as those who are "Agnostic" (those who are aware but have not engaged or acted).

The positive messages for greentech are:

• New source of jobs (very important given today's market climate)
• Americans' hope for climate rescue without having to make significant lifestyle changes
• Attraction to novel solutions

The ACVS also points out that greentech still requires 'dramatic' positioning (i.e. technology leadership, much lower costs and energy use, large economic benefit) to overcome any 'discounting' (the perception that greentech is accepted and expected).

While the 'high level' messages may not be new to those in the greentech business, I do think that the market segmentation, specific messaging themes, and strategies for overcoming global warming doubts (and associated greentech adoption) would be very valuable to greentech companies.

The ACVS is targeting foundations and policy groups to best utilize the results, but I would think that any company that seeks to launch a solution leveraging greentech would be very interested. Electric utilities, consumer product companies, retail, and professional services companies might benefit from review of the study and incorporation of key messages and themes.

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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!

Building Effective Alliances for Cleantech start ups

Have been working with a wide range of start ups recently (CSR, water treatment, asset management, AEC design services); developing and validating 'go to market' strategies'. In the initial or early phases of maturation (both for the company and most times, the market segment itself), direct sales by the founders and other 'visionary' staff (both internal as well as advisors / directors) is critical to get early successes: pilot projects, demonstrations, regulatory review & approval (if appropriate) and brand awareness.

But as the start up begins to grow, the markets for the technology solution (that is: the product, team expertise, company vision, and solution roadmap) will require that the solution most likely be integrated into a larger business solution (think of a new roadway; wastewater treatment & distribution system, environmental remediation, etc). This is particularly the case for those cleantech start ups that are targeting industrial clients as well as governmental clients. At this stage, start ups need to build partner 'ecosystems" consisting of complimentary technology and services firms; which requires the development of an alliance & partnership strategy.

Some insights are provided here:

Position yourself to allow your partner to lower the cost of their customer acquisition efforts & identify 'up-selling' opportunities
For the larger and global AECs, the real opportunity for growth is to continue to develop their existing accounts and user bases; providing more value to them (such as incorporating energy modeling solutions, or facility management services). Case in point: can your solution allow the AEC firm tap into other technology or operating budgets in the clients' organizations, that the AEC would typically would not be able to access?

Don't be the obnoxious sales guy when representing your company
CEOs of start ups need to focus on the partner's business model; how can they assist in driving more value and solutions of the partner through the partner's channels? (so: don't go in to a discussion with executives at an AEC firm saying: " I would love to get access to your clients so I could sell my stuff to them".......not a good idea)

If you have something special, they will find you...although it may take some time
Most of the global AECs have executives whose roles include responsibilities to constantly survey the cleantech / green landscape: interview companies, and make recommendations on strategic alliances and acquisitions. Chances are, if you are making headway in your market sector and are building brand awareness and a sustainable client base, that the AEC firm already knows about you. Your alliance strategy should take into account how you can leverage these sales channels to build relationships with the AEC practice leaders as well as with the alliance executives at larger complimentary technology companies. In many cases, a great way to begin the development of an alliance is to focus on specific key end - user accounts where both your company and the AEC may provide a joint solution.

If thinking of being acquired, it's better to develop a strong alliance first
Much of the acquisition activity during the IT growth period of the last 10 years has been a result of demonstrated joint customer success, alignment with product strategies, and some synergy between corporate cultures and goals of the start up and acquiring company. I think this trend is quite applicable to cleantech start up growth and maturation. There is no question that building strong relationships within an AEC firm (or larger technology company) allow for increased awareness of the start up company, and allows for constructive M&A dialog at the appropriate time.

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Article on Greenbiz.com: "How BIM and Green Tech Will Change the Construction Industry"

Just published an article for Greenbiz.com titled How BIM and Green Tech Will Change the Construction Industry. This article is reprised in three earlier posts here on my blog; covering the basics of BIM, benefits of BIM and greentech, role of the federal government & owners, and strategies for greentech companies in leveraging BIM for growth.And here is the rest of it. 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.
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