The 11th edition of Shanghai Intelligent Building Technology (SIBT) ended on a positive note with a record-breaking number of visitors. The fair was held concurrently with Shanghai Smart Home Technology (SSHT) from 5 – 7 September 2017 at the Shanghai New International Expo Centre. Collectively, the two shows hosted 240 exhibitors from 13 countries and regions which displayed the latest intelligent building and smart home technologies. The 2017 edition also welcomed a record-breaking 27,275 visitors from 54 countries and regions, an 18% increase from last year.

Industry innovations and trends

Ms Lucia Wong, Deputy General Manager of Messe Frankfurt (Shanghai) Co Ltd, said: “The 11th edition of SIBT concluded with great success. We would like to express our gratitude to our industry friends for their generous support. China’s new urbanisation and development of IoT is having a huge impact on the building industry.

Conventional buildings are evolving into intelligent buildings that can provide greater comfort and convenience and it is well understood that IoT will bring sweeping changes to the industry. In addition, a series of thought-provoking forums and seminars were held covering topics including connectivity, IoT, smart hotels, intelligent building and smart home standards. Expert speakers were invited to share information about the latest innovations and industry trends with fairgoers in the hope of fostering cross-sector collaboration and technological convergence.”

"SIBT is an important fair
with strong participation
from leading brands and industry professionals
"

The Intelligent Engineering Branch of China Exploration & Design Association was one of the fair co-organisers. Ms Hu Ping, President, commented on the show as well as on the future development of the industry: “SIBT is an important fair with strong participation from leading brands and industry professionals. As technologies evolve, people demand better living standards. With the application of smart technologies, buildings not only provide safety and shelter for citizens but they make life more comfortable, greener and healthier.”

Comprehensive display receives positive approval

Backed by steadfast support from renowned overseas and domestic companies over the years, the fair is dedicated to presenting innovative solutions. Participating exhibitiors included A-OK, ABB, ANJUBAO, Apollo, AVE-Leelen, Baiwei, CARLO, Dnake, DUEMMEGI, EnOcean Alliance, HDL, Honyar, HUTLON, KNX Association, Rishun, RUI XIANG, SAVEKEY, Security & Fire, SenseAir, Supcon, Systec, T-Touching, Taijeisai, WISTAR and ZF Friedrichshafen.

China Security & Fire IoT Sensing Co Ltd specialises in sensors. Mr Tang Fei, Manager, was pleased with the progress demonstrated by the industry over the past few years: “Although the intelligent building industry takes time to achieve technological breakthroughs, the speed of applying these new ideas into products is always stunning. I am glad to see many theories raised during the previous editions have been put into reality this year.”

Zhejiang Supcon Instrument Co Ltd focuses on design, research and development of intelligent buildings and smart cities. Mr Wang Kai, Chief Engineer, Building Intelligence Division, shared: “Our systems are particularly designed for commerical and public buildings. We exhibit at SIBT on a regular basis as we see the fair as a must-attend industry event. We also participated in the forum this year and the quality of the attendees was impressive. In addition to the integration and introduction of technologies, setting up a uniform standard is also vital to help the smart industry progress.”

"Intelligent buildings involve
a wide range of disciplines including cloud computing, artificial intelligence, building and data communication"

Guangdong Digital Technology Co Ltd was a first-time exhibitor. The company engages in building intercoms, parking, access control systems and smart homes. Ms Zhang Shuming, Vice President and General Manager of Smart Integration Business Department said: “Intelligent buildings involve a wide range of disciplines including cloud computing, artificial intelligence, building and data communication. Only if every enterprise strives to perform at its best will the industry develop further. The visitor flow was far beyond my expectation. Visitors were able to fully experience the products and technologies on display during the show. SIBT is an ideal platform for business promotion.”

Building Internet of Things

Concurrent forums analysed future industry trends with a spotlight on Building Internet of Things (BIoT)

The ever-changing intelligent building market creates an increasing demand for innovative technologies and ideas. This year, SIBT explored future industry trends with a spotlight on Building Internet of Things (BIoT). Influential decision-makers were invited to the fair to share their thoughtful insights:

Intelligent buildings

Organised by Engineering Intelligent Design Branch of China Exploration and Design Association, Engineering Intelligent Design Branch of China Exploration and Design Association Shanghai Expert Committee, and Intelligent Building & Smart City Magazine, the forum “Intelligent Building: Smart Future--Intelligent Building Industry Integrated Development Forum 2017” discussed the technological integration, development and innovation of the industry.

Ms Hu Ping, President, Engineering Intelligent Design Branch of China Exploration and Design Association, stated: “The forum was well-received and fully occupied, some attendees who were not able to get seats had to stand in the seminar area for the presentation. The forum was a great occasion for them to learn from the assembled experts and to learn about innovative technologies. The forum will not only help their individual work, but also assist the industry as a whole to make further progress.”

Connectivity

Continental Automated Buildings Association (CABA) organised a seminar entitled “The Impact of the Internet of Things (IoT) on Intelligent Buildings and Multi-Dwelling Unit Buildings”. Mr Greg Walker, Research Director, CABA, was invited as a speaker. He remarked: “The forum analysed the issue from the perspectives of different stakeholders. I think the content really matched what the industry needs. The questions from the floor reflected the quality of the attendees and their feedback was positive.”

Concurrent forums analysed future industry trends with a spotlight on Building Internet of Things (BIoT)
SIBT 2017 hosted forums and seminars covering topics including connectivity, IoT, smart hotels, intelligent building and smart home standards

Intelligent hotels

Ms Helen Huang, Secretary-General of China Hotel Engineering Alliance, was invited to be one of the guest speakers of the forum “New Thinking on Intelligent Hotel - Increase in service value when hotels become intelligent”. Other speakers were from ABB, Eastsoft, Haier, Lutron, Tridium and VersLink.

Ms Huang said: “The participating companies at the forum represented different sectors including wireless technologies, smart lighting and lighting control. Before applying smart products in homes, a lot of people gain firsthand experience of using these products when staying in hotels. The hotel industry is the pioneer of smart technologies. The attendees raised questions which identified the current challenges we are facing and it was an excellent occasion for information exchange and learning new ideas.”

Intelligent building and smart home communication protocols

A diverse array of forums were organised to enhance the communication and integration among smart system providers. Participating organisations include EnOcean Alliance, KNX Association, LonMark International, Wi-Fi Alliance and Zigbee Alliance. As the speaker of “EnOcean Batteryless Wireless Technology for Intelligent Buildings and IoT - Embracing the Internet of Things in the New Era of Cognitive Buildings."

Mr Graham Martin, Chairman & CEO, EnOcean Alliance, commented: “In commercial buildings, users are not always concious of energy saving. Therefore, property owners are more determined to adopt energy-saving technologies to reduce operation costs. I am glad to see the forum was successfully held and a full-house exceeded my expectations. The forum acts as a highly efficient avenue for industry peers to learn about the latest market intelligence. Attendees can listen to their topics of interest and then go to the booth and talk to the experts in detail after the seminar.”

"The forum was well-attended and feedback from audience was positive"

Seminars and presentations

KNX Association organised “KNX Technical Seminar” to explore future developments in smart homes and smart cities through case studies. Ms Shen Pu, Executive Secretary, KNX China, shared: “In addition to helping audiences better understand our brand, we also provided new angles for the audience to view the industry. For example, the emergence of smart hospitals has allowed us to examine in more detail medical issues related to aging populations. The forum was well-attended and feedback from audience was positive.”

Wi-Fi Alliance elaborated on the application of smart living by presenting the topic “Wireless to Smart by Wi-Fi Alliance”. Mr Jerry Huang, Director, Greater China Region, Wi-Fi Alliance, said: “I would like to provoke new thinking by illustrating case studies related to chips, modules, solutions, strategy and end-users’ market. The forum was in line with the market’s expectation and the audience was highly engaged in the discussion.”

Zigbee Alliance introduced its technologies and illustrated the application through the topic of “Smart Inside, Beauty Outside”. Ms Laura Shang, China Regional Representative, Zigbee Alliance, said: “Most of the attendees were from the smart home sector which meets our expectation. The guest speakers we invited covered a full spectrum of the industry including chips and modules. It was an efficient platform for industry professionals to discuss the latest trends.”

These smart security solutions are able to be applied in many different ways for industrial and
urban planning

Application of Intelligent Open Video Technology Innovation Forum

Organised by a&s, the forum “Application of Intelligent Open Video Technology Innovation Forum” introduced security products and technologies with a wide range of smart features. These smart security solutions are able to be applied in many different ways for industrial and urban planning.

SIBT is jointly organised by Guangzhou Guangya Messe Frankfurt Co Ltd, Shanghai Hongshan Exhibition Service Co Ltd, the China Council for the Promotion of International Trade – Shanghai Pudong Sub Council and the Intelligent Engineering Branch of China Exploration & Design Association. The next edition of the fair will be held from 3 – 5 September 2018 at Shanghai New International Expo Centre in China.

SSHT and SIBT are both headed by the biennial Light + Building event which will take place from 18 – 23 March 2018 in Frankfurt, Germany. Messe Frankfurt also organises a series of light and building technology exhibitions in China including the Shanghai International Lighting Fair, Parking China, Guangzhou International Lighting Exhibition and Guangzhou Electrical Building Technology. The company's light and building technology fairs also extend to markets in Argentina, India, Russia, the UAE and other countries and regions.

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In case you missed it

Enhance traditional security systems within your smart home
Enhance traditional security systems within your smart home

Market dynamics are changing the U.S. residential security market, creating new business models that better appeal to the approximately 70% of households without a security system. Smart home adjacencies have helped revitalise the traditional security industry, and alternative approaches to systems and monitoring for the security industry are emerging, including a new batch of DIY systems. Growth in the residential security market and its position as the channel for smart home solutions have attracted numerous new entrants. Telecoms, cable operators, and CE (consumer electronics) manufacturers are joining traditional security players as they compete to fulfill consumer demand for safety and security. Connected products also provide a layer of competition as consumers must decide whether having category devices such as doorbell video cameras, networked cameras, and other products suffice for their security. Increasingly competitive landscape Smart home services can provide additional revenue streams for the security industry For instance, IP cameras are a highly popular smart home device rooted in security, and Parks Associates estimates 7.7 million standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889M in revenues. Product owners may feel their security needs are fulfilled with this single purchase, as such dealers and service providers are under increasing pressure to communicate their value proposition to consumers. Categorically, each type of player is facing competition uniquely—national, regional, and local dealers all have a different strategy for overcoming the increasingly competitive landscape. Smart home services can provide additional revenue streams for the security industry. In Parks Associates’ 2017 survey of U.S. security dealers, 58% report that smart home service capabilities enable extra monthly revenue. Almost half of dealers also note they have to offer smart home devices and services in order to keep up with their competition. While white-label devices are acceptable in some instances, dealers need to integrate with hero products whenever possible when those exist for a category. For dealers who have added smart home devices and services are all potential benefits and good for business Improved customer engagement That 2017 survey also revealed 36% of security dealers that offer interactive services report security system sales with a networked camera and 16% report sales with a smart thermostat. For dealers who have added smart home devices and services, enhanced system utility, increased daily value, and improved customer engagement with the system are all potential benefits and good for business. Security has served as the most productive channel for smart home solutions, mainly because the products create natural extensions of a security system’s functions and benefits, but as smart home devices, subsystems, and controllers expand their functionality, availability, and DIY capabilities, many standalone devices constitute competition to classical security. Particularly viable substitute devices include IP cameras, smart door locks, smart garage doors, or a combination of these devices. Products that are self-installed offer both convenience and cost savings, and these drivers are significant among DIY consumers—among the 6% of broadband households that installed a security system themselves, 39% did it to save money. Enhance traditional security Self-installable smart home devices may resonate with a segment of the market who want security While many security dealers believe substitute offerings are a threat, some dealers do not find such devices an existential threat but instead view them as another path to consumer awareness. They argue that the difference between smart product substitutes and traditional security is that of a solution that provides knowledge versus a system that gives one the ability to act on that knowledge. A common theme among professional monitoring providers is that a homeowner who is aware of events happening in the home does not necessarily have a secure and protected household. For example, a Nest camera, a DIY product, notifies a consumer via smartphone about events in the home when it detects motion, but only when the notification is opened and identified will a consumer be able to act on the related event. Self-installable smart home devices may resonate with a segment of the market who want security but are unwilling to adopt professional monitoring; however, providers can leverage these devices to enhance traditional security features and communicate the value of professional monitoring. Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth Increased market growth A key counterstrategy for security dealers and companies is to leverage their current, powerful role as the prime channel for smart home devices. Many security dealers now include smart home devices with their security systems to complement their offerings and increase system engagement. For example, as of Q4 2017, nearly 70% of U.S. broadband households that were very likely to purchase a security system in the next 12 months reported that they want a camera to be included as part of their security system purchase. In response, many security system providers now offer IP cameras as optional enhancements for their systems. Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth. Security dealers have an opportunity to become more than a security provider but a smart home solutions provider rooted in safety. Provide status updates Comcast has entered both the professionally monitored security market and the market for smart home services The alternative is to position as a provider of basic security with low price as the key differentiator. Comcast has entered both the professionally monitored security market and the market for smart home services independent of security. It has discovered that monetising smart home value propositions through recurring revenue becomes increasingly challenging as the value extends further away from life safety. Since the security industry remains the main channel for smart home services, security dealers are in a unique position to leverage that strength. Value propositions must shift from the traditional arming and disarming of a system to peace-of-mind experiences that builds off the benefits of smart devices in the home to provide status updates (e.g., if the kids arrived home safely) and monitoring at will (e.g., checking home status at any time to see a pet or monitor a package delivery). These types of clear value propositions and compelling use cases, which resonate with consumer and motivate them to expand beyond standalone products, will help expand the home security market.

What is the value of "free" video management systems?
What is the value of "free" video management systems?

They say that every choice has a cost. It's a basic principle that, economically speaking, nothing is free. If it doesn't cost actual money, it may be expensive in terms of time, attention and/or effort. These are interesting observations to keep in mind as one peruses the various "free" video management system (VMS) offerings available on the market. Some are provided by camera companies to unify their products into a "system", even if it's a small one. Other free VMS offerings are entry-level versions offered by software companies with the intent of the customer upgrading later to a paid version. For more insights, we asked this week's Expert Panel Roundtable: What is the value of “free” video management systems (VMSs) and how can a customer decide whether “free” is the right price for them?

The ongoing challenge of IT and data risk management
The ongoing challenge of IT and data risk management

Managing IT and data risk is a challenging job. When we outsource our IT, applications and data processing to third-parties more and more every day, managing that risk becomes almost impossible. No longer are our data and systems contained within an infrastructure that we have full control over. We now give vendors our data, and allow them to conduct operations on our behalf.  The problem is, we don’t control their infrastructure, and we can never fully look under the hood to understand and vet their ability to protect our data and operations. We have to fully understand how important this issue is, and ensure we have the right governance, processes and teams to identify and mitigate any risks found in our vendors. No longer are our data and systems contained within an infrastructure that we have full control over Today, everything is connected. Our own networks have Internet of Things (IoT) devices.  We have VPN connections coming in, and we aren’t always sure who is on the other end of that connection. It is a full-time job just to get a handle on our own risk. How much harder, and how much larger should our teams and budgets be, to truly know and trust that our vendors can secure those devices and external connections?  For every device and application we have internally, it is very difficult to even keep an accurate inventory. Do all of our vendors have some special sauce that allows them to overcome the traditional challenges of securing internal and vendor-connected networks? They are doing the same thing we are – doing our best with the limited human and financial resources allocated by our organisation. Risk stratification and control objectives  The benefits of outsourcing operations or using a vendor web application are clear. So how can we properly vet those vendors from an IT risk perspective?  The very first thing we need to put in place is Risk Stratification. Risk Stratification presents a few targeted questions in the purchasing process. These questions include – what type of data will be shared? How much of this data? Will the data be hosted by a vendor? Will this hosting be in the US or offshored? Has the vendor ever had a data breach? These questions allow you to quickly discern if a risk assessment is needed and if so, what depth and breadth.  Risk stratification allows you to make decisions that not only improve your team’s efficiency, but also ensure that you are not being a roadblock to the business Risk stratification allows you to make decisions that not only improve your team’s efficiency, but also ensure that you are not being a roadblock to the business. With risk stratification, you can justify the extra time needed to properly assess a vendor’s security.  And in the assessment of a vendor’s security, we have to consider what control objectives we will use. Control objectives are access controls, policies, encryption, etc. In healthcare, we often use the HITRUST set of control objectives. In assessing against those control objectives, we usually use a spreadsheet.  Today, there are many vendors who will sell us more automated ways to get that risk assessment completed, without passing spreadsheets back and forth. These solutions are great if you can get the additional budget approved.  Multi-factor authentication  Even if we are using old-fashioned spreadsheets, we can ensure that the questions asked of the vendor include a data flow and network/security architecture document.  We want to see the SOC2 report if they are hosting their solution in Amazon, etc. If they are hosting it within their own datacentre, we absolutely want to see a SOC2 Type II report. If they haven’t done that due diligence, should that be a risk for you?  Today, we really need to be requiring our vendors to have multi-factor authentication on both their Internet-facing access, as well as their privileged internal access to our sensitive data. I rate those vendors who do not have this control in place as a high risk. We’ve recently seen breaches that were able to happen because the company did not require administrators or DBAs to use a 2-factor authentication into sensitive customer data sources.  In the assessment of a vendor’s security, one has to consider what control objectives to use This situation brings up the issue of risk acceptance. Who in your organisation can accept a high risk? Are you simply doing qualitative risk assessment – high, medium and low risks? Or are you doing true quantitative risk analysis? The latter involves actually quantifying those risks in terms of likelihood and impact of a risk manifesting, and the dollar amount that could impact your organisation.   So is it a million dollars of risk? Who can accept that level of risk? Just the CEO? These are questions we need to entertain in our risk management programs, and socialised within your organisation.  This issue is so important – once we institute risk acceptance, our organisation suddenly starts caring about the vendors and applications we’re looking to engage.  If they are asked to accept a risk without some sort of mitigation, they suddenly care and think about that when they are vetting future outsourced solutions. Quantitative risk analysis involves quantifying risks in terms of likelihood and impact of a risk manifesting Risk management process  In this discussion, it is important to understand how we think of, and present, the gaps we identify in our risk management processes. A gap is not a risk. If I leave my front door unlocked, is that a control gap or a risk? It is a gap – an unlocked door. What is the risk?  The risk is the loss of property due to a burglary or the loss of life due to a violent criminal who got in because the door was unlocked. When we present risks, we can’t say the vendor doesn’t encrypt data. The risk of the lack of encryption is fines, loss of reputation, etc. due to the breach of data. A gap is not a risk.  Once we’ve conducted our risk analysis, we must then ensure that our contracts protect our organisation? If we’re in healthcare, we must determine if the vendor is, in fact, a true HIPAA Business Associate, and if so we get a Business Associate Agreement (BAA) in place. I also require my organisation to attach an IT Security Amendment to these contracts. The IT Security Amendment spells out those control objectives, and requires each vendor to sign off on those critical controls. We are responsible for protecting our organisation’s IT and data infrastructure – today that often means assessing a 3rd-party’s security controls One final note on risk assessments – we need to tier our vendors. We tier them in different ways – in healthcare a Tier 1 vendor is a vendor who will have our patient information on the Internet. Tiering allows us to subject our vendors to re-assessment. A tier 1 vendor should be re-assessed annually, and may require an actual onsite assessment vs. a desk audit. A tier 2 vendor is re-assessed every 2 years, etc. We are responsible for protecting our organisation’s IT and data infrastructure – today that often means assessing a 3rd-party’s security controls. We must be able to fully assess our vendors while not getting in the way of the business, which needs to ensure proper operations, financial productivity and customer satisfaction. If we truly understand our challenge of vendor risk management, we can tailor our operations to assess at the level needed, identify and report on risks, and follow-up on any risks that needed mitigated.