Elisa Roenkae with Siemens

On this week's Industrial Talk we're talking to Elisa Roenkae, Global Head of SaaS Sales – Digital Building at Siemens about “Digital Trends in the Building Industry”. Get the answers to your “Building X” questions along with Elisa's unique insight on the “How” on this Industrial Talk interview!

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Industrial Talk is brought to you by Armis. Yes, you were in the digital transformation game. Yes, you need to find trusted companies, trusted individuals to help you along with that journey. The Armis platform delivers complete asset intelligence, you know what that means, insights into your connected assets, you're in the digital transformation game, you have to have that insights into what is connected, go to Armis.com Find out more, you will not be disappointed. Also Industry IoT Consortium. At Industrial Talk, we always talk about education, we always talk about collaboration, we are always talking about innovation. And if you're a business that has any desire to be resilient to the future, you need to be able to educate, collaborate, as well as innovate with other industry professionals. That's a must. Industry IoT consortium brings that all together, you need to be a part of this community, you need to be connected with these leaders that are all apart the Industry IoT Consortium, go out to iiconsortium.org. Find out more again, you will not be disappointed, you're just going to be happy.


Welcome to the industrial talk podcast with Scott Mackenzie. Scott is a passionate industry professional dedicated to transferring cutting edge industry focused innovations and trends while highlighting the men and women who keep the world moving. So put on your hard hat, grab your work boots. And let's get


around once again, thank you very much for joining industrial talk a platform that is completely dedicated to you, industry professionals all around the world because your story needs to be told. And you are bold, yes, brave. Yes, you dare greatly. You're solving problems, you collaborate, you're making lives better, you're making communities better, and therefore you are making the world a better place. That's why we celebrate you. That's why you are heroes on this particular platform, right? Elisa Roenkae with Siemens is in the house, SaaS. She is the Global Head of SaaS sales. And we're talking building, we're talking Building X, we're talking all of the great things that are taking place at Siemens, to truly change the world. Let's get cracking. So, so because I've been in this sort of role, have been doing this, what's been great, is just being a part of the journey, right? And you're a part of the journey. If you're on industrial talk, you're part of the journey. But the journey has been so exciting. And this whole digital transformation, what a company is doing, how do you create a business that is resilient, I mean, it never ends. And companies like Siemens, and others are doing everything they can to be able to make sure that the future is bright. you're leveraging the innovation, you're leveraging the technology that's available out there. And it just is going like crazy. And it's a lot of fun. Now, one of the things that we were talking about Elisa and I were, you know, chirping about, and that is just buildings, right? How many buildings are out there in the world? Nope, I don't either. Not I have no clue. I'm sure I'm sure Siemens does. But I have no clue. And I have no clue of the square meters or the square footage. what that represents. I don't, Siemens probably does. And I have no idea of how the level of inefficiencies that exist out there. So if you're in this world of sustainability, if you're saying as God, we need to be more sustainable, don't you think the low hanging fruit in this particular solution outside of all the other stuff, our buildings, and being able to make buildings more efficient? I, I think it's a no brainer. And that is a technology and that see, it's a collaboration challenge. And it is a technology challenge. But I think it's more of a collaboration and, and the owners of these buildings and whatever it might be, I mean, different categories across the board. Don't get me wrong. But there, there are incredible opportunities to definitely make it better. Also, here's a cool, here's a cool stat. So you know, Siemens has been around for a long time. You know, how long? 175 years 175 years when I found that out? I just said holy cow. How about a company that has really truly transformed the world? Siemens right, their 175 years started in 1847. Right? They're celebrating at 47 with 10 employees and look what they are today. Yeah, yeah, you can go out there you can find the financials 62 point 3 billion euros per year on monster, but what's incorrect Trouble about Siemens is a simple fact that they are big, they are transformative. They, but they're able to sort of bring in the the, the collaboration, sort of spirit into this big, they're nimble. And that's what just fascinates the heck out of me is the fact that here's this big company doing who knows how much and and they're still retained that sort of entrepreneurial, nimble spirit within that organization. Kudos to them. Congratulations on 175 years. Okay, one last thing, okay,


we've got events, we're going to Fabtech, we're going to be there at Fabtech, we're going to be broadcasting from Fabtech go out there, and it's going to be at Atlanta, this is the first part of November. And again, we're going to be highlighting great technology, great innovation, great people that are just passionate about that. The other thing that we're doing here at industrial talk is we're, we're and if you've ever been through this, you know, there's some challenges, however, we are doing a are lifting up a new website. So we're going through all that process. So be on the lookout, you're gonna get a broadcast communication out there and say, Hey, new new website, and then again, it is a website that is truly, truly elevates and highlights and amplifies what what everybody in industry is doing. And it is really about the human side. And the technology, the innovation and the community involvement. It's an it's all about, let's just be candid, it's all about entertainment. And because of that, personally, me, I am just absolutely dazzled and happy about what's going on what we're going to be doing at the new industrial talk.com website. So check that out. Get involved, reach out, say Scott, I want to be a part of it. So that's it, industrial talk new website, so that we can do a better job at amplifying the great messages like Alisa is going to be bringing to you in just a few seconds. So we're talking buildings, we're talking buildings, building X, they have this accelerator at Siemens. And it is all focused on that that digital approach to assets to solutions. So building acts, Elisa brings to the lumber incredible conversation. Enjoy. Alisa, welcome to industrial talk. Thank you very much for finding time in your busy schedule to talk to the best listeners in the world. How you doing?


Thanks for having me, Scott. I'm doing fine. How are you today?


Thank you very much. I'm doing well. I like it when people ask me how I'm doing. All right. We're gonna be talking Digital Trends, building industry, which is interesting, which I think is pretty cool, FYI. And then. But before we get into that topic, at least give us a little 411 Or sorry, you're from? You're from Finland. It's not 411. There. It's 411 here for the information. Anyway, some background it to you, Elisa.


Yeah, sure. So I work for Siemens Smart Infrastructure and the digital buildings, segment of the building products unit, we're a complex organization, as you can hear, and I lead this sauce sales globally. So I'm very much deep diving into what digital buildings are all about, and especially how we can create value with them. So not only happening about technology, but actually hyping about that value for users and for businesses.


See, and that's interesting, because there are a lot of buildings around the world. And and, and I would imagine there's a lot of inefficiencies that can you can make them more efficient and gain value out of those assets. How long have you been with Siemens?


So I've been with Siemens for 10 years now, I never thought I would last this long. But here I am on going strong. So let's see how long ago so yeah,


there's just a lot going on with Siemens. I mean, there is every time I speak about Siemens or talk to somebody at Siemens, there, you're definitely moving and shaking and constantly moving forward, which is really a it's exciting for me who someone who can't maintain attention worth a lick. So it's always exciting to talk to somebody from Siemens. Now let's let's dive into this this whole smart infrastructure defined find for the listeners that What do you mean by that? There's a building there's a hotel, there's a parking garage, what is a smart infrastructure?


So smart infrastructure spans actually further than just building buildings are of course a big big part. I mean, if we look around look outside of the window, chances are you see a lot of buildings, right. So it's a big contributor to to all the different values that we can create in society as a whole but at side of that also we look at the electrification, the grid connectivity, you know, how can we ensure that also all of that ties together? So even beyond individual buildings, how can we actually create Smart Cities even going forward? So infrastructure really goes further than just buildings. But what I like to hype about is definitely the building side.


See, I don't know how, and when you start talking about smart infrastructure, the ability to be able to have all of these assets communicating in such a way that, that you're gaining efficiencies that I always struggle with, where do I start? Like, that's like, what's the value? Where do I start with that said, Why is this important? Why why is this whole SaaS thing important?


Yeah, I mean, it's important, because in the end, you know, we have a, as I said, a lot of buildings, and they are not very efficient. They are big contributors to co2, unfortunately, still today. And they aren't really catering for the users within either. So you know, we really need to look at at buildings, and how can we become more efficient, more sustainable, more user centric? And I believe that will result in a happier society as a whole. So this is this is why we have to look at it. And then to answer your question on where to start. I mean, if you look at look at it, from the digitalization perspective, it's really all about connectivity. How can you actually connect these buildings? Because a lot of them are old, I mean, even decades old? How can you create that connectivity that you can actually harvest data, and then with that data, to actually create some value and some some useful out of it, potentially in a sauce model in which I represent that. But overall, if you don't have the connectivity, all good intentions basically fall flat.


So if I was, and because of my utility background, I really liked that smart grid and that conversation. And it's easy, FYI, it's easy for me to get overwhelmed. And I would imagine there's a lot of there's a human component to this, and which is absolutely part of it. How do you take? How do you begin the journey? How do you look at all of these communities around the world? Yes. Where do you even begin, like, help us on that journey?


Yeah, so I mean, I think the first thing is just to create transparency on the status quo, because if you want to, you know, increase efficiency, or increase user Centricity or sustainability targets and meet those better, you need to know where you stand, and even that is sometimes are very often lacking. So how can you create that, that status quo today, and then you can start defining measures and where to go and you can use optimization measures then to get where you need to be but But how, how do you know what to do if you don't know where you are. And I think that is where we need to get started. And again, I get back to that point of connectivity. Because if you don't connect and get that data, you will not know where you actually stand today. And you will not know how to improve and where to go.


See the owners of the assets, whatever they might be, it could be Tillet ease, it could be business, you know, a building owners, whatever, they have to have that desire to do that. Is it. How do we educate these entities to say, yes, it's important. Yes, we can get a baseline which we need. And therefore we can then improve upon that. What how do we how do we begin that conversation?


Yeah, I think there are many ways. So first of all, Money talks. So if you can reduce costs, you usually get people to listen that it's very, very, you know, effective. So that's, of course, one way to look at it, like operational efficiency, definitely cost is a factor. If we talk about sustainability as a value, then of course, regulatory pressure more and more, especially here in Europe, we see a lot of regulatory regulatory pressure on having to report co2 emissions and also then reduce. And then if we look at user centricity, which is kind of the third bucket of values in the built environment, I mean, there it's you know, people vote with their feet, if you look at a hospital is that an efficient hospital for healing, if you look at a office, is that actually a productive office for creating more business? You know, you people actually start to vote in terms of what they choose as a building to do whatever it is that they are meant to do in that building. So So I think there are, you know, different pressures. But in the end, I mean, cost is a huge driver. Let's, let's be honest.


So, to recap, those are great points, and you're absolutely we have, does it put money in my pocket? Does it save money, does it does it benefit my business financially, then there's the regulatory component, and that varies from state to state on our end, country by country so that has a really interest same dynamic to it. And then of course, there's the are the users. So with that, let's sort of dive into the costs. So if I'm a business, right, you can, can you just from like, hey, owner, you got this building, and I hate to just I, let's just keep it at the building, I don't want to go anywhere beyond the building, you have this building, we know that you have these type of units, H. H backs, and this, that and the other all of the components associated with it. We think you can save X, if you do this, right. Can you do something like that for a building? Owner?


Yes, of course, we have a lot of those conversations. It might be in terms of maintenance, so asset maintenance, fault detection topics, that how much could you potentially save there? Or it could be about the energy consumption? How much could you potentially save on that side, if that was optimized? If you find anomalies, or detect anomalies and are able to act upon those, these kind of topics, we definitely talk a lot with building owners and occupiers as well about and then what can be done, and how much could potentially be saved. And it's actually quite interesting, how much can be saved when you start looking into whether the systems are functioning as they should. And whether you are doing the maintenance in a way that is most efficient. So it's, it's really an interesting, interesting conversations. Yeah,


I love the conversation around maintenance, and of course, energy efficiency, just in a typical, and I know, it varies, don't get me wrong, it there's, it's quite variable. If I make this investment, if I say, Hey, I'm, I hear what you're saying, I like it. What do you think my payback would be?


So very, very good question. Because, of course, this always depends on where you stand, you know, how old is your building? How much have you already been optimized? How much do we need to connect? How much is already connected? Or what kind of data can we use? You know, it's, it's so multi dimensional, that it's really difficult to say, but in general, it's very easy to start small and create already impact with that. So, you know, I think when it comes to these kinds of sauce solutions and platform solutions that I also represent in the markets, it's not a huge upfront investment at all. So you can really start from from small things, creating that, as I said, the connectivity and the transparency so that you can even act upon it. And there, we are not really talking about a long return on investment. So these are not like the typical investments that are made into buildings, which are, you know, big, heavy, expensive systems. These are really more lightweight, off the shelf solutions, if you may, that you can then you know, quickly, quickly make changes and kind of evolve with your building and evolve with your optimization. It's not like a one off shot. It's really an evolution.


See, and I like that approach where you're gaining little victories. And and it's not as if, and I would imagine, if you were to audit, for lack of a better term, and audit a building and say, Oh, here's some low hanging fruit, let's just, let's target that. And that and, and, and prove the viability of what that is. I think that that that is an absolutely exceptional approach. And especially for me, as a business owner, owner of the building, don't ask me to incur more pain, right? You know, if I have occupants, and if there's yelling at me, because something's not working, right? That's a pain. Don't do that to me.


Yeah, exactly. Sometimes, it's also the reassurance that everything's running smoothly as it should, and everything is optimized already. And I'm not losing money. I'm not throwing money out of the window all the time. Also, that makes some people sleep better. So, you know, it's really I can't I keep repeating myself, but it's really creating that transparency. And then you can either optimize or you can sleep better, because you are already optimized. And this is not a huge cost to do. So, really worth embarking on that journey. It is


and I if anybody's listening out there, yeah, you better it just has to happen. I mean, you need to do this. It's, it's, you can fight it all you want, but it's happening. Now it would be better probably from my perspective, or if I had a building and it's strictly Greenfield like I'm building it from the ground up, then I could probably begin having that conversation right off the bat. Optimize that, that building and and so on and so forth. Now for the listeners out there. Talk to us, and take us through SAAS from a Siemens perspective. What does that look like?


Yes, actually, SAAS is relatively, I'd say new for the for the building industry. We have traditionally been very much So on premise, no cloud approach, but the industry is really, really shifting. And and I think this is a really good trend. Because, you know, first of all, we can have these scalable solutions. So scalable software, you can manage a portfolio of buildings very easily, you can manage that very flexibly, your maintenance costs are first of all, much more stable, because it is as a service. So you get the upgrades, updates, also from a security perspective. But mostly, I think, where the biggest biggest value really is the fact that you get that visibility across. So you know, there are a lot of building owners who have a portfolio, a fleet of buildings, and they can actually, just from one place monitor, what is going on? Where, where do I have the outliers? You know, where should I focus my attention on instead of who's, you know, calling me and screaming the loudest? Actually, where should I put my focus on so but


I'm also able to start if I have a portfolio of buildings, I can then begin to look at it and roll it up and do it and play around with the data in that way, too.


Yeah, absolutely. Absolutely. And you can utilize that I mean, when when it's a good platform approach as well, which I'm a big fan of. So yes, SOS is one thing, but to have that actually, you know, on top of a platform, this is where really the value starts to come into play. Because if you're a building owner, and you might have a very niche use case that you would want to, you know, utilize from that data, you're able to harvest that from that platform, and maybe combined with other data sources, and then derive whatever your value is. So you know, yes, there are lots of applications and systems that can be, let's say, offered natively on a platform. But then you can also create your own as long as the platform is open. So I think this openness topic is also huge in the in the building industry. And it's new, we've usually had a lot of proprietary technology, it has really been the core problem even of the industry. And now it's really opening up from that technology perspective as well. So I find that also as a great opportunity to do things a bit differently. Maybe now I'm going forward.


No, that's it. One of the things about this whole digital conversation just across the board, I I find there's a greater desire for collaboration, I don't have all I need help, I need to work with somebody. This building down the street is doing something great. Can I do the same thing? Yeah, sure you can, and being able to have that conversation. I like the SAAS model specifically for what you pointed out. But it's it's it's easy, secure, ready to go and scalable, all of the things that are important. And then I don't have to. I'm from the old school when I had on prem type of servers and programs and stuff. And then here comes a battery of individuals with a stack as just, hey, we're giving you an upgrade, and then it's got to be shut down forever. I've always been a big fan of that SAAS model just because it just happens. It just gets I frequently.


Yeah. I mean, you don't have to wait for the year until someone comes and does the upgrade instead, it's continuous. And I think what's really great is the fact that any security concerns, whatever, those are continuously upgraded as well. So I mean, that should create a lot of reassurance, even though there are still a lot of people in the building side of things who believe that cloud is not as secure as on premise. But I would start to argue that really, because you know, it's it's a lot of focus that's being put into this by often the IT people, not only the ones who look at or geek over the operational technology, which hasn't necessarily always, well, it's as secure as the weakest link. Let's put it that way.


Yeah, but it's, let's put it this way, too, is that if you have a compromised cloud, right, that's not good for anybody that's not good for the industry, and therefore the industry wants a secure solution around the cloud. It just makes sense. And it's good business. Because once somebody says, Yeah, I was over here, and this, this farm over here, and I got breached, that's not good. And, and it starts to impede solutions like SAAS and others that need this. So with that said, outside of the, the, it's going to happen to those individuals who are pushing back on Cloud, let them push back and they'll retire and then somebody will come in and all that. So what is the biggest roadblock? There's a gazillion buildings out there just just everywhere, everywhere. And if it's, if it's the reality of sustainability, carbon footprint, all of that stuff well What's the pushback? Why wouldn't I say? Yes?


That's a very good question. I think, honestly, it's just a mindset shift, you know, we need to, we need to look at buildings differently, I think we are under estimating the potential that buildings have, in terms of, you know, as I said, making the world a more sustainable place, or a better place to live, work, perform whatever you need to perform produce things, you know, whatever it is, and I think we're just completely under estimating that potential. And I always call, like, the way we perceive buildings is like human warehouses, you know, it's just this as long as there's a roof and there's walls, that's a building and great, that's enough. But that's not nearly enough. And buildings can do so much more. And I think that's the mindset shift that we need to have to really look at it. Okay, how can I actually derive more, as you said, In the beginning, more revenue out of this, or, or less cost out of this? You know, how can I get those benefits out of this? And buildings can contribute, but you have to start thinking in that direction, and not just as a human warehouse, then, you know, of course, if you just look at the walls and the walls and the roofs, and that's it as a building to you? Well, yeah, there's no, there's not much that can only contribute,


you're touching on some really interesting points. The one point that that I believe is, is super important if I owned a building, and there have been just through COVID, through the changes that have taken place in the past couple of years, a lot more people are working remote. Why do I want to go back to a building when I could be just right here, roll out of bed, boom, and hit it, you have to have a reason for me to want to go to that building. And you have to have that occupant centric type of conversation to make it worth my while or I'm not coming back. So that's that's one area. The second area that I think is critical, is that it has to be simple. They can't have that friction that that so many solutions have like God, this is like a I'm trudging through the swamps here. It has to be easy and smooth. With that said, are these solutions, very complex? Can they be simple for me?


Absolutely can be simple for you. So what we are, you know, representing in the market, which is building x is the product, what we've actually really focused on is that we have consumer grade user experience. So this is something also our industry as a whole hasn't really focused on because, you know, we've always thought that it's the experts, you know, the real experts who know the, the everything about building systems and check and whatnot. And they you know, they don't care in a way what the what the experiences of using, using the systems or the solutions or the software. And and this is now has changed, I think it has changed with the new generation, but also in terms of just expectations as a whole, you know, everyone's expecting consumer grade, frictionless experiences, and we need to be able to provide those as well. So we've put a lot of focus into UX. And I think that will become a critical success factor, I believe for the whole industry.


It's huge. And I see that trend. And that's across the board with industry just as a whole. That simplicity. You crack that nut. There's, there's there's a lot of good adoption out there. A lot of good. Individuals are saying yeah, now I'm ready now. Yeah, you've worked it out over here. So with that said, as we sort of wrap it up a little bit here. Where do you see it going? Where do you see this whole trend? Outside of the simple fact that we've got to do a lot more marketing, saying, Hey, this is good stuff. See, it all works fine. And it's easy. You need to jump on the old train. Where do you see going?


So I think this whole topic of openness, as was kind of mentioned before is really something that will be growing. And this This can ecosystem approach, you know that no single player can create the full value, the end to end value that's needed for almost any building really, it really requires this collaborative effort. And in order to do that, then the technology needs to be open, you need to be able to, to collaborate together. So get out of this kind of egocentric, proprietary mindset and openness, openness, openness. And that means north and south. Everywhere, right? So this I think this openness is a huge, huge topic. And then the other topic, I think, is really the human Centricity that we really need to look at increasingly because that is where the biggest value in the end can be created, even though it's not necessarily always so easy to put that into an Excel you know, how do I calculate the increase in productivity or how do I calculate the decrease in hospital throughput time or you know, whatever it is, those are difficult to put into an Excel but I think once we actually get into have that mindset of actually converting that, at least to some kind of quantitative qualitative metric? I think this industry will be, you know, taking leaps and bounds forward. So I think you know that from a technology perspective, it is this platform approach, openness, ecosystem topic. But then the value needs to be focused on the users and how can they perform their tasks?


Yeah, I do. I love that. And, and that energy that that human Centricity that you mentioned, doesn't stop, it will always because humans, me, I always expect more, once you deliver this, and I like it, I want more. And I want to, and if you ever sort of in that journey, go backwards, I don't like that.


Exactly. So we need to I mean, that's why we need to see it as it's kind of like a both a technology but also an industry evolution, that certainly doesn't stop. And if it needs to be kind of future proof, also, from an investment perspective, that you can keep building upon it, keep building upon it, keep evolving, and it will fit, you know, whatever changes, we had a pandemic, and everything shifted, whatever happens similar to that, hopefully, nothing like that again. But anyway, whatever the change is, you need to be able to evolve, also from a technology perspective. So this kind of future proofing aspect is the way to go. And again, a platform approach is very good.


I was just getting ready, you just lead right on into it. And that's why the platform approach where I don't have to worry about it if the magic just happens, and I'm happy. And that's all I care about. All right. How do people get a hold of you? Elisa? If they're saying boy, she's she's cool. I want to talk to her.


Again, is a good way I'm active on LinkedIn. So feel free to connect with me. Send me a note there or Yeah, any other means of communication. I'm I'm here to always have a discussion about my favorite passion topic, which is digital buildings.


Like that digital building. All right, LinkedIn. Don't worry listeners. I'm gonna have all the contact information for Elisa out there on industrial talk. You gotta follow her. You've got to engage this whole smart conversation around building SAAS. Human Centricity must happen. Make it happen. Reach out to her. Elisa, you were great.


Well, thank you so much. It was my pleasure. You were even better.


Huh? She started out with the salutation that was nice. And then she ended one. I've got the book ins of confidence. Well, God, all right, listeners. Once again, we're gonna wrap it up on the other side. Do not go away. We will be right back.


You're listening to the industrial talk Podcast Network.


Thank you again, for joining industrial talk. I'm living a dream to be able to learn from the very best in industry each and every day. There are heroes out there. Elisa fantastic, Siemens incredible company. And I'm telling you, I don't know what the future holds. I have no clue but Siemens and others. They are blazing the trail into how we can create a better world about that for a noble cause. Reach out to her go out to her LinkedIn stack card, you're not going to be disappointed. And she will she will get engaged and you will not be disappointed. Absolutely not. All right, we're going to Fabtech put that on your calendar first part of November if you're going to be there. Look us up. And thirdly, the website's coming out. We're going to try to do everything we can to amplify it and celebrate industry professionals. It is all about you. And it's about the heart. That's when we bring all right Be bold, be brave, Daring Greatly hang out with people like Elisa and you're gonna change the world. Thank you very much for joining industrial talk. We're going to have another great conversation shortly. So stay tuned.

Scott MacKenzie

About the author, Scott

I am Scott MacKenzie, husband, father, and passionate industry educator. From humble beginnings as a lathing contractor and certified journeyman/lineman to an Undergraduate and Master’s Degree in Business Administration, I have applied every aspect of my education and training to lead and influence. I believe in serving and adding value wherever I am called.

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