Facility Management

Overview
By
Sandeep Arora

Draft
Basavaraju Nagenahalli 1
What is Facility Management
FIMA defines Facility management (FM) is a
profession that encompasses multiple disciplines to
ensure functionality, comfort, safety and efficiency of
the built environment by integrating people, place,
process and technology.

The International Organization for Standardization

defines FM as the “organizational function which
integrates people, place and process within the built
environment with the purpose of improving the quality
of life of people and the productivity of the core
business.”
Core Competencies in FM (Facility Management)

Real
Real Estate
Estate &
&
Quality
Quality Property
Property Technology
Technology
Management
Management

Emergency
Emergency Environmental
Environmental
Preparedness
Preparedness && Stewardship
Communication
Communication Stewardship & & Human Factors
Business
Business Sustainability
Sustainability
Continuity
Continuity

Finance & Leadership

Leadership &
& Operations
Operations &
& Project
Business Strategy
Strategy Maintenance
Maintenance Management
Key Drivers & Scope of FM
FM as a business enabler ….
Value Creation to
Space and
Business & People
Infrastructure

People and Business Enabler &

FM
Organization Service Delivery

Corporate Mobility & Environmental &

Travel Sustainability

Security, Health &

Safety Operation &
Maintenance
Cost, Budget control &
P&L
FM – Stakeholder Manager

Managem
ent

External
Business
Customers
units
/Visitors

FM

Customers
Supplier
/End
/Vendors
Users

Govt/
Statutory
Bodies
Challenges for the Global FM Industry
Competitive Strategy for Global FM Industry
• Despite the efforts of FM providers, FM Services tend to
be views as commodity type service by many end users
an as such price competitiveness becomes a major
factor
• In developed countries in particular, compliance with
regulatory requirements is often a key decision factor.
• The delivery of FM Services globally will always be only
as good as the staff delivering the. As such, upskilling
of staff forms a key competitive factor in this Industry.
• As the quality of facilities improves world-wide,
particularly in the commercial building segment,
customers are keen on innovative technologies that
improve the overall standard of their workspace.
• Reputation and track record refers not only to general
performance quality, but also vertical expertise
Facility Management Market & Trends
The global facility management market was valued at USD 31.96
billion in 2017 and is expected to reach a market value of USD 64.5 billion
by 2023, registering a CAGR of 12.41% during the forecast period of
2018–2023
Indian facility management market to cross $19B by 2020
Facility management solutions enable efficiency and agility in business
functioning, and they are gaining vital importance in organizations.
The facility management concept comprises of software and solutions that
allow efficient management and use of workspace, real estate, assets,
relocation of offices and buildings, and energy management. It standardizes
services and streamlines processes.
Global Facility Management Trends
Global Trends
Construction Activity
Public-Private-Partnerships
Industry Structure
Green & Smart Buildings
Integrated FM
Large Contracts
Global center of construction activity continues to shift to
APAC, MEA and other emerging countries.
Increased treads across both mature and emerging markets
M&A remains key to growth strategy, But FM market remains
highly fragmented
Trends to benefit FM providers with expertise in energy
management, building automation and controls.
3-7% CAGR in Mature Markets, Double digit percent growth in
emerging markets
Larger contracts increasing due to consolidation in end-user
segments & expansion of contracts across multiple sites and
countries
 Mega trends impacting Facility Management

Transition from FM to IFM, IFM to Digital FM (IOT, AI,

In house
Machine Learning, CMMS, BMS, IWMS)
Services

Integrated Total
Facilities Singe
Facility
Managemen Services FM IFM DIGITAL FM
t (IFM) Manage
ment Building Smart Building Smart Campus

Transition from Building to Smart Building,

Bundled Smart Building to Smart Campus/Tech Parks
Services
 Mega trends impacting Facility Management
Urbanization – City as Customer
The increasing pace of urbanization will lead to integration Innovating to Zero
of core city centred with suburbs and daughter cities, resulting in
expanding city limits. This will have a massive impact on the future of mobility,
working life, and societies. Emergence of mega cities, mega regions, mega Innovating to Zero is the mega vision that reflects the desire for
corridors, and smart and sustainable cities. perfection in modern society; A zero-concept world with a vision
“City as a Customer” is an implication of urbanisation wherein cities are of zero carbon emission, zero crime rates, zero accidents, and
considered potential customers and hubs of investment, wealth creation, and carbon-neutral cities. Although this seemingly perfect world
economic growth. Every city will be Unique in its Infrastructure management sounds almost impossible, governments and companies today are
demands offering micro implications and opportunities for FM Companies. moving towards this picture-perfect vision of eliminating errors,
defects, and other negative externalities by creating for
Smart is the New Green themselves a huge challenge and Opportunity.
Green” is a key ,“smart” products, which are intelligent
Net Zero building is a building with net energy consumption or
connected and have the ability to sense, detect, recognize, identify,
carbon emissions per annual equal to zero. Some of the buildings
analyse, process, report and take correct action.
can be off the grip and can harvest energy on site. As these green
As companies and governments cast their view beyond the confines of their walls,
building continue to gain popularity, FM companies will need to
and take into account the impact of their infrastructure on shared infrastructures
develop capabilities to mange the entire operation of the buildings
such as the city’s eclectic grids and waste streams, they will begin to realize that it is
to ensure its is carbon neutral thorough intelligent systems,
not adequate for a building to simply contain the various system that enable it to the
integration of renewable energy such as solar and wind, and other
function (i.e. lighting, security, power etc)
energy-saving features. FM providers will also need to innovate
Workspace of the future must connect their various systems in an integrated
towards zero security breaches including digital theft in todays
dynamic and functional way, with the end goal being structures that seamlessly fulfil
data dependent connected world.
their purpose whilst keeping energy usage and environmental impact at a minimum.
Basically fundamental services must deliver the fundamental services expected, such
as thermal comfort, air quality, physical security, and sanitation, at the lowest cost
and environmental impact.
FM Industry Growth
Facilities Management is One of the Fastest Growing Industries
Companies across the globe are continually shifting their focus to maximize
their assets, improve customer relations and redefine their workspaces to
be more pleasing, efficient, safe and productive, as well as decreasing their
carbon footprint. At the forefront of these goals is maximizing returns on
investments.

Enterprises are moving beyond the traditional concept of facility

management, to address rapid technology changes and current business
needs, that are helping in the increasing adoption of these solutions.
FM Industry Growth
The FM industries growth over the last twenty years has been led by major
corporate leaders seeking real-world solutions to every day problems.
As a result, they have seen long term financial savings. As the field has grown, so
have the tools, such as software solutions, making it universally beneficial and
affordable for organizations of all sizes.
This continued success, and the sharing of these successes in our information-based
society, has led to the acceptance of facilities management as a staple in the
business community.
Statistics regarding the continued growth in the FM field, FM outsourcing and the
adoption of FM principals, as well as their organization's growth, are irrefutable
evidence that the facilities management industry is a profession that produces
results and is here to stay.
FM Industry – Next Step Forward
• Real Estate Management – Gap in analyzing the strategic requirements & Market
trends.
• Workplace Solutions – Methodology & Measurable mechanism
• Design & Project Management – Aligned to company principles & culture
• Smart Building & Tech parks (Building Technology) & Automation frame work
• Performance as outcome, process, bench marking and standardization
• Vested model in outsourcing business environment
• Cost benefit analysis modelling and TCO
• Strategic alignment to organization in planning and operations
What Industry needs by 2025
• Concept to Market - Industry ready, qualified, certified professionals & SME’s
• Scientific Researched & Methods based facility management, a career choice,
importance, knight core strategic values in business operation in Executive
Council or Board
• Be the Centre for learning and skill building, and consulting.
Global FM workforce
APAC contribute to 85.23% of global FM and India alone contribute 55.71%. This is the market for Training,
Certification and business engagements.
FM Sectors – Not limited to below
Industry Built Environment Segments
IT/BPO/KPO IT Parks IPC
Manufacturing Retail Malls Organizations
Construction Airports Builders
Telecom Metro/Railways Professionals
Oil and Gas CRE Service Providers
Petrochemical Hospitals
Warehouses Govt Buildings
FMCG Data Centers
Hotels
Education Institutions