Smart buildings should be the driving force behind the real estate sector’s Net-Zero goals. Instead, they are hampered by a disconnected value chain, decades-old entrenched practices, and a stubborn resistance to change. This has turned an industry primed for transformation into one weighed down by inefficiency and low productivity.

The smart building value chain is the end-to-end process of designing, building, and operating a smart building. A Disconnected value chain delivers poor value and performance.

The Consequences:

Failing to fix the value chain comes at a cost:

Increased Cost & Risk:

Disconnected and inefficient systems and processes make projects more expensive and error-prone.

Underwhelming Performance:

Most smart buildings barely scratch the surface of their potential.

Innovation Gridlock:

Legacy approaches stifle progress, preventing the industry from evolving.

Poor ROI:

Instead of delivering long-term value, smart buildings become a missed opportunity.

Achieving the Full Potential of Smart Buildings:

A fully integrated, streamlined smart building value chain isn’t optional if you want to deliver high-performance smart buildings. Every stage must connect seamlessly. Design must align with procurement to ensure systems are built for integration. Engineering and commissioning must work in sync. Commissioning should enable a fast, frictionless handover to operations. And operations should be intuitive, efficient, and easy to manage - without the technology complexity that holds back adoption.

A fully integrated and streamlined value chain delivers compound value and high-performance smart buildings.

The Singapore Building Construction Authority’s Integrated Digital Delivery (IDD) initiative is a step in the right direction, championing a broadly applicable digital approach to transforming built environment value chains. By eliminating manual processes, reducing miscommunication and errors, and establishing a single source of truth, IDD fosters seamless collaboration across all stakeholders- architects, engineers, contractors, and facility managers. When fully realised, IDD can drive efficiency, improve project outcomes, and create high-performance smart buildings that are easier to operate and maintain. However, despite its potential, IDD adoption for smart buildings remains poor, held back by several key barriers:

1) Skills Gap & Complexity

Many industry professionals lack the necessary digital skills, and existing tools are often too complex, creating resistance to adoption.

2) Limited Awareness of ROI

The industry has yet to fully grasp the cost-benefit of a fully integrated and digitalised value chain. Without clear business cases and tangible success stories, many stakeholders perceive IDD as an unnecessary expense rather than an investment.

3) Need for a Suitable IDD Platform

For IDD to succeed, it needs a digital platform that seamlessly integrates across the entire value chain - from design to procurement, construction, and operations.

The Path Forward

For digitalisation of the smart building value chain to reach its full potential, the industry must address these challenges head-on. Simplifying technology, upskilling the workforce, and demonstrating clear financial value will be key to accelerating adoption. Equally important, the industry needs an end-to-end IDD platform - one that eliminates silos, enhances efficiency, and turns digital delivery from an aspiration into a reality.

Pioneering a Sustainable Future from Singapore

About Eutech Group

Eutech, headquartered in Singapore, is an investment holding company dedicated to incubating and scaling next-generation technologies for a more sustainable and productive world.

Our Mission

To accelerate the transition to a low-carbon economy by making technology more accessible.

Our Mission in Numbers

Eutech invests in startups developing synergistic foundational technologies and capabilities for the low carbon economy.