Developing a Cost Framework for Smart Building Adoption

Abstract

This research explores the various costs associated with smart building adoption, with particular focus on Internet of Things (IoT) enabled building automation systems (BAS). Through a comprehensive literature review and qualitative interviews with industry professionals, the research identifies and validates cost categories from various perspectives, including across the building lifecycle. Three cost frameworks are presented, each offering a unique underlying structure: categorization by building phase, by nature and scope, and by timing and visibility. The final integrated framework presents costs in terms of 1) upfront and visible, 2) hidden and long-term, 3) lifecycle and strategic, and 4) organizational and societal considerations. Central cost themes visible in all the developed frameworks include sensor deployment, data management, cybersecurity, and organizational efficiency. The research addresses gaps in the existing literature, such as the lack of comprehensive cost frameworks. Through an expressed commitment to conducting research in academic and industry partnership, this research develops cost frameworks to be leveraged by industry and researchers alike in the consideration of smart building adoption efforts. This research implements a robust methodology, grounded in literature and sound research practice, to overcome various limitations of this research such as limited sample size and the continually evolving nature of smart building technologies. Further research is encouraged to expand upon the results of these findings to further enhance understanding of BAS cost and develop the quantifiable aspects of smart building adoption and their associated business cases.