EDM case study. Vodafone Global M2M Vodafone achieves energy savings of up to 40% with Energy Data Management solution. Vodafone Power to you

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1 EDM case study Vodafone Global M2M Vodafone achieves energy savings of up to 40% with Energy Data Management solution Vodafone Power to you

2 EDM case study Vodafone achieves energy savings of up to 40% with Energy Data Management solution Since its inception, Vodafone has grown rapidly to become one of the biggest communications companies in the world. Faced with rising global energy costs, and determined to fulfil its obligation to minimise its carbon footprint, Vodafone decided it needed a solution that would manage the way it consumes energy more proactively. To get the intelligence and global scale that it needed, Vodafone soon discovered it would need to build the solution itself.

3 3 The need Vodafone has come a long way since making the first mobile call in the UK in Today more than 403 million customers around the world choose Vodafone to look after their communication needs. The company operates in more than 30 countries and has network partners in more than 50 others. An operation this size requires a lot of buildings. Having a large physical presence around the world is crucial to providing local services and infrastructure delivered by local people. However Vodafone also recognises that this presence can come with considerable environmental and financial costs especially in terms of energy consumption. Eric Estrade, Principal Category Manager Energy, Vodafone Group Supply Chain Management, explains the conundrum: We have around 240,000 buildings across the world, that consume energy in very different ways from radio base stations to data centres, he says. These buildings are important for our operations, but like any organisation we also want to minimise the day-to-day cost of running them. Equally, we have a responsibility and commitment to minimise our carbon footprint. Estrade and his team set about finding ways to control the cost of the energy the company uses after witnessing spiraling energy costs. Initially the company focused on using smart meters. But as Estrade explains, this only took them so far. Smart meters are very good but they only provide a view of overall consumption for each site, explains Estrade. We wanted to go much further. We wanted to get a real time granular understanding of the factors that influence our consumption and then use that information to manage the way we consume energy much more proactively. Vodafone needed a solution that would provide it with the extra data it wanted, but was also capable enough to be delivered globally. wafter surveying the market, Estrade and his team soon concluded that the company best placed to service that requirement was Vodafone itself.

4 EDM case study The solution The solution that Vodafone created is called Energy Data Management. It is comprised mainly of data logging devices known as Vodafone Green Boxes that sit alongside the main load meter that utilities use to determine overall building consumption. Each Green Box can take input from up to ten different sources. Typically these sources will include utility power circuits, multichannel circuit boards and sensors that might be monitoring anything from footfall in the building to temperature and humidity. The beauty of Energy Data Management is that it is very easy to customise to each environment, taking feeds from a wide variety of sources, says Estrade. It means you can track exactly how and where you re using energy across your whole estate. You can really start to learn how different site systems such as heating and lighting are contributing to overall energy consumption. You can also use it to see how external factors such as weather and humidity are affecting usage. Smart meters and Green Boxes send the data they gather securely through Vodafone s global wireless M2M network to an online portal. Vodafone s global M2M capability means SIMs can be provisioned easily for each site, and each country is using Vodafone s own Global M2M Platform to order, provision and decommissions SIMs as required. Vodafone has also developed an easy to use dashboard that managers can use to monitor consumption and make decisions based on rich intelligence. For example, Vodafone s facilities managers are now able to check the number of people in a building at any given time, track those figures over a period of time, and make a judgement on whether it would be more efficient to keep that building closed at certain times of the week. During the Proof of Concept we immediately saw an energy cost reduction of up to 40% at one site. On average, we achieved a saving of 29% across all 200 sites that participated in the trial. Eric Estrade, Principal Category Manager Energy, Vodafone Group Supply Chain Management

5 5 The impact Currently, Vodafone is operating its Energy Data Management solution in 8 countries covering around 35,000 sites. Already, it is making some huge savings. During the Proof of Concept we immediately saw an energy cost reduction of up to 40% at one site. On average, we achieved a saving of 29% across all 200 sites that participated in the trial, says Estrade. Vodafone has made similar savings at other sites around the world. It has also seen a number of benefits, including reduced maintenance costs. In Italy we have configured our system to monitor the cooling systems in our radio base stations and trigger an alarm when they are not working properly, says Estrade. This means we carry out preventative maintenance rather than having to fix a chain reaction of faults caused by cooling failure. We estimate this is saving us a further 200,000 a year. In the UK, where Vodafone s global HQ plays host of up to 3000 employees and visitors at any one time, the Energy Data Management system is also about to be used to measure the impact of a number of CAPEX investments designed to make the company s office facilities more efficient. We re buying a number of new systems that will benefit our energy consumption in the long run from carbon filters in the air handling units to a new lighting system that we will be installing across the HQ campus, says Estrade. We ll be using Energy Data Management to monitor the results and demonstrate that our new systems are delivering the right returns. Used in this way, the EDM solution is excellent for managing CAPEX projects. As the programme moves forward, Vodafone will be using the intelligence it receives from its Energy Data Management solution to make further refinements to processes. It will also be looking to educate users on ways that they can help to save energy. To this end it has developed a clever smartphone app that allows anyone at Vodafone to see how their site is performing. Energy Data Management is much more than a piece of technology, Estrade adds. Ultimately it will help to change the way we work and help us to significantly reduce our impact on the planet. We definitely want to see company-wide engagement in what we are doing, and it s great that we have an easily accessible means of showing everyone the results.

6 EDM case study The future Energy Data management for all? Vodafone says that it is has already seen a Return on its Investment (RoI) within 12 months. Building on this initial success, it will be extending the use of Energy Data Management to more sites and countries across the world. In addition, Vodafone is also now selling Energy Data Management as an enterprise offering to other large international organisations. Goran Naslund, Global Business Development Manager, Vodafone, has been responsible for developing the solution as a commercial proposition: In many ways this is very simple concept, says Naslund. Energy cost and sustainability is on top of our customers agenda and they are looking for solutions. When we researched the market for our own needs we found plenty of specialists that could help on a local level, but none that can provide an end-to-end service on global scale. To support the rollout of Energy Data Management as a product, Vodafone has also developed a process that supports customers every step of the way. First we start with an audit to build a business case for Energy Data Management. We ll run a data gathering exercise to see where the customer buys energy from, how they monitor it, how they negotiate tariffs and we ll also inspect their sites. Following that we install smart meters and Green Boxes at a few locations a mixture of offices, warehouses and retail sites all depending on the customer to estimate potential savings and identify the best way to move forward. Vodafone is also offering to work closely alongside its customers during the deployment and optimisation of the service. Ultimately this will help those customers to achieve the same RoI that Vodafone has been able to record in such a short space of time alongside more long-term, sustainable benefits. This technology really does reap immediate rewards, not just in the renegotiation of tariffs but through the change in staff behaviour driven by the available information at shop floor level. Controlling energy usage is an on-going process, says Naslund. There are always ways in which you can use power more efficiently. Energy Data Management enables you to understand that and put ambitious energy strategies in place. Our dedicated team of experts will always be on hand to help our customers and give advice when they need it.

7 7 Executive summary Business need: Determined to reduce its energy consumption, Vodafone wanted to get a better idea of how it consumes energy in a wide variety of premises across the world. Not satisfied with the basic consumption information it receives from smart meters, Vodafone decided to get the additional data it needed by designing its own Energy Data Management solution. Energy Data Management is much more than a piece of technology. Ultimately it will help to change the way we work and help us to significantly reduce our impact on the planet. Eric Estrade, Principal Category Manager Energy, Vodafone Group Supply Chain Management Solution: The Vodafone Energy Data Management solution uses specially developed Green Box data loggers that work in conjunction with smart meters. The boxes gather data on how different site systems such as heating and lighting are contributing to overall energy consumption. The meters and Green Boxes send data through Vodafone s secure wireless M2M network to an online portal creating an end-to-end solution that is now available as a Vodafone service for other large international enterprises. Business benefits: With the ability to how and where it s wasting energy, Vodafone has been able to change processes, educate staff or upgrade facilities. As a result, some companies within the Vodafone Groups have reduced energy bills by up to 40% Armed with new intelligence, Vodafone can also reduce inaccurate estimates, challenge bills and negotiate better tariffs from its utility suppliers Overall, EDM is driving Vodafone towards more long-term sustainable use of energy with lower carbon emissions helping it to reduce its impact on the environment and hit government regulation target.

8 m2m.vodafone.com Vodafone Group This document is issued by Vodafone in confidence and is not to be reproduced in whole or in part without the prior written permission of Vodafone. Vodafone and the Vodafone logos are trademarks of the Vodafone Group. Other product and company names mentioned herein may be the trademarks of their respective owners. The information contained in this publication is correct at time of going to print. Such information may be subject to change, and services may be modified supplemented or withdrawn by Vodafone without prior notice. All services are subject to terms and conditions, copies of which may be obtained on request.