Technische Universität München Fakultät für Architektur ... · Members of the LoHaS Lifestyle...

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Technische Universität München Fakultät für Architektur ISBN 978-3-941370-45-6

Transcript of Technische Universität München Fakultät für Architektur ... · Members of the LoHaS Lifestyle...

Technische Universität München Fakultät für Architektur ISBN 978-3-941370-45-6

smartTES  Innovation in timber construction for the modernisation of the building envelope

Book 1                       Innovation & Marketing  

Anja Thessenvitz (Editor)Stefan Thessenvitz THESSENVITZ MARKETING Leipzig, Germany  

           

10.03.2014

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Acknowledgements “smartTES – Innovation in timber construction for the building modernization” is a transnational research project under coordination of the WoodWisdom-Net and funding distributed by national funding agencies. Duration 2010-2013 Partners Germany

- Technische Universität München - Hochschule Rosenheim - B&O Wohnungswirtschaft - Gumpp & Maier GmbH - Ambros GmbH - Funding: BMBF

Finland - Aalto University - Finnish Real Estate Federation (Suomen Kiinteistöliitto ry) - Finnish Wood Research Oy - Metsä Wood - Puuinfo Oy - PAK RAK Oy - Funding: TEKES

Norway - SINTEF - NTNU Norwegian University of Science and Technology - Funding: The Research Council of Norway

Project coordination: Dipl.-Ing. Frank Lattke www.tesenergyfacade.com Publisher Technische Universität München Fakultät für Architektur Arcisstr. 21, 80333 München www.ar.tum.de, [email protected] ISBN 978-3-941370-45-6 Public funding by

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Content 1. Introduction  5 

2. Market Research  13 

3. Trend Research  18 

4. Scenarios  21 

5. Mission  24 

6. Definition of and decision for a probable Business Model/s  31 

7. Conclusions and recommendations  47 

8. Appendix  48 

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Preamble - The sources of Marketing Marketing is NOT science.

Marketing uses the findings of mathematics to obtain bases for decisions using statistical methods.

Marketing uses the insights of psychology to get answers about motivation structures.

Marketing uses the findings of sociology to get answers about social movements.

Marketing means1: consistent, market-oriented management of the company. Marketing is a management concept that designs all company activities towards the market.

1 THESSENVITZ MARKETING: definition of Marketing

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1. Introduction

The Evolution of Building Materials

19th Century of Steel Since the mid-19th century there was an erratic increase of steel production. That led to a comprehensive support of technical inventions like steam engine, railway and steam navigation. Steel production always was politic-driven, because it was of national question of prestige.

Photo: The Eiffel Tower, THE steely monument for technical progress on the World Exhibition in Paris 1889.

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20th Century of Concrete opus caementitium was the perfect building material of the 20th century. Nearly universally usable for houses, factories, bridges, streets, tunnels, bunkers, reservoir dams, art work. The realization of mega-projects became possible within shortest time. Concrete led to a manifested creative will in politics, society and ideologies.

Photo Brasilia: In 1956, Juscelino Kubitschek - the president back then - started a plan to build a new city for Brazil's government. With the goal to plan and execute the construction were Oscar Niemeyer, the mind who would give forms and curves to official buildings, and Lucio Costa, the man with the 'airplane shape' urbanist plan. And incredibly, in only 4 years, the city was inaugurated.

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21st Century of Wood Wood incorporates the idea of the sustainable economy; therefore it is the perfect building material of the 21st century. It stands for responsible handling with resources. From the technical, aesthetical and political point of view wood is the basic material for endless innovation: it has the potential to incarnate the vision of sustainable welfare.

Photo © Copyright by Reiulf Ramstad Arkitekter: The Norwegian Barents Secretariat wants to materialise the role of the High North with the building of a signature building in the Arctic border town of Kirkenes. The building will be the highest wooden building ever constructed, and made in line with the best possible environmental standards.

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The Psychology of Building Materials 1. Beside their substantial attributes building materials have always been an expression of political and social AGREEMENTS. Building materials are ideological manifests and as such children of their time – they reflect beliefs, they give security and orientation. Wood has the potential to incarnate the 21st century – the only missing things are SYMBOLS and MONUMENTS. The Worst Case: Wood is technologically and intellectually outstanding, concerning production, regional creation of value, and sustainability, but loses the fight for the hearts.

Central Hypotheses A. Emotion prior ratio Besides the outstanding rational advantages wood has to be set up in a positive way. Architecture and Design are keys beyond the sustainability business model. The fight for interpretational sovereignty will be won by emotions; by leadership of pictures and by sympathetic authority in dialog.

Our communicational crash barriers:

80% EMOTION – added benefits like Architecture, Design, Haptics, Status, Intelligence, Avant-garde and Pleasure – Sensible, alive, valuable, creative and inspiring

20% RATIO – basic benefits like Mind, Science, Logics, Money and Time – series, verifiable proofs, rational arguments, innovative, healthy and sustainable

B. The Climate Change Religion The Climate change – discussion adopts more and more religious perspectives. It works with biblical dimensions and connotations: Flood victim, catastrophic drought, climate sin. The Climate Change is becoming a cultural agreement, to do penance for sinful consumption and misconduct in the past. People try to minimize their ecological footprint with buying CO2-certificates, climate-neutral or climate-protecting products and services. It is fashionable to do climate-fasting, to build with climate-wood, to do climate-trekking etc.

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C. Caution: LoHaS! Members of the LoHaS Lifestyle of Health and Sustainability (especially in Germany) delegate responsibility to the companies. The LoHaS-consumption is emotional and conflict-free. The LoHaS try to generate a World-Saving-Convenience and stands for responsibility-free cosy-consumption2. Consumption is more and more regarded as a sin. The LoHaS are consumption affine, they enjoy consumption. Ecologically correct consumption is immaculate. But: Ecological consumption is still consumption. At the same time consumption is an expression of a life-style, it’s an attitude and a habitus. With consumption habits people state membership to a certain milieu of society. The LoHaS-Consumption … • is distinction from SoMa*3-Consumption, • is low-risk, it is socially accepted, • doesn‘t need to be justified, • the LoHaS-Consumption is NOT sustainable, • is ideology driven / not enlightened, • is without alternative (in the sense of: there is no room for alternatives), • is completely emotional & irrational, • sustainability requires a new life-style, • Sustainable = Leading a good life instead of possessing a lot.

4. Sustainability = Creation of Value The idea of sustainability has changed fundamentally. As part of the left-ecological dogmatism of the 1980s (one world, global justice etc.) it moved into the centre of value of the society. „Sustainability is good and I can contribute to that“. Today sustainability is a European business model in the first place to stay on top of technological development worldwide.

5. Résumé The market-drivers mainly act irrational. The political will decides on success, for now. In the end a smart combination of FACTS (technical facts and measurable results) and EMOTIONS (good feelings and a clean conscience) will be decisive for the successful market entrance of smartTES.

2 LoHaS: is an acronym for Lifestyle of Health and Sustainability, a fixed term in sociology. Sources: Sinus-Institute Heidelberg, Zukunftsinstitut (Future Institute) Kelkheim, et al. 3 SOMA = social market and is a consumer market for itself. SoMaS are users of second hand stores, feeding the poor-buffets, cheap-discounter-markets like in Germany Aldi, Norma, Netto, Lidl etc. The LoHaS ranks itself among winners. SoMaS are taken as losers. The LoHaS-Consumption is modern sale of indulgence and prayer likewise: „Oh Lord, please shelter me as long as I act correctly (also from social decline)“

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Creation of Value with smartTES If smartTES seriously wants to get from RESEARCH TO BUSINESS, it has to position itself as a comprehensive solutions provider. Therefore the still remaining gaps in the creation of value (from Consulting to Maintenance) have to be closed. smartTES wants positioning as solutions provider, to be the first (and only) counterpart for the target groups. smartTES seeks for the highest Creation of Value level possible. The control over the whole process chain stands for control over quality.

If smartTES wants to position the circuit-model <from cradle to cradle> RELIABLY, it will have to communicate the performance appropriately.

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The know-how becomes available by thinking in circuits: smartTES enables and delivers know-how and research results for Consulting (consulting and concept), for Technology (measurement and design), for Crafts (production and assembly) and for facility management (maintenance). Reciprocally smartTES generates input for Innovation and Learning.

The Creation of Value - chain can be designed in an optimized way.

Conclusions for the Marketing of smartTES • smartTES positions as solutions provider = Branding • smartTES is emotionally loaded = Communications Concept • smartTES is brought to the people = Distribution Concept

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Source: word-frequency-analysis of www.tesenergyfacade.com with www.wordle.de

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2. Market Research The BIG tasks 1 - 5 1. A well lead company deduces its purpose from its environment. 2. From environment arise chances to be valuable for customers. 3. A wise company realizes and defines the Creation of Value to

differentiate from the competition. 4. The company is aware that from environment constantly arise new

chances and risks. 5. A durably successful company grows along possible futures.

Markets The BIG task 1 - A well lead company deduces its purpose from its environment. To get a picture of the markets in Norway, Finland and Germany a comprehensive survey and data analysis on secondary material was made. See summaries below. For further details, see the appendix. Chances | Norway4 (~5 Million inhabitants) Norway wants the energy turnaround. The political will is strong. Norway creates stimuli for the energy turnaround. The private households invest into the energy turnaround. The acceptance for energy-friendly solutions exists. The market potential is 2.1 million buildings. The public sector is our most important counterpart. Risks | Norway • „Cheap “renewable” energy • Lack of qualified human resources and know-how Chances | Finland5 (~5.5 Million inhabitants) The issues of energy generation, dependence on mineral oil and energy efficiency attract a wide public attention. There is an active subsidies policy in energy efficiency. The potential of saving energy in industry and buildings is enormous. The market potential is 2 million buildings. Building in the existing stock will increase over average. Risks | Finland • Property relations • Lack of qualified human resources and know-how • One main barrier is pure economics: no financial incentive – no renovation

4 Source: FACT-SHEET NORWAY, DIHK und AHK (German Chamber of Commerce, Foreign Chamber of Commerce), 2011 5 AHK - Deutsch-Finnische Handelskammer (German – Finnish Chamber of Commerce), 2011 | current data at the time of the research. The first directive on holistic energy efficiency of buildings came into force 2012, the first statutory regulation on energy efficiency in the context of renovation and alteration works of existing buildings was published in 2013

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Chances | Germany6 (~80 Million inhabitants) The political will in Germany presents itself in the Energy Saving Act (EnEV), the CO2-Building-Modernization-Program of the KfW-Banking Group, the Heating Costs Regulation and the Energy Concept with target-horizon 2050. The Energy Turnaround as a main political task. The market potential is 16 Million buildings older than 25 years Risks | Germany • Clammy communal funds • Lack of qualified personal

6 Umweltbericht 2010 des BMU - Bundesamt für Umwelt und Reaktorsicherheit (Environmental Report 2010 BMU - Federal Office for the Environment and Nuclear Safety)

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Target Groups The BIG task 2 From environment arise chances to be valuable for customers. A profound secondary research and analysis was made via the Western European Meta-Milieus of the Sinus-Institute7, Heidelberg on one hand. On the other hand the German Data of TdWI (Typology of Wishes) Intermedia8 was specified for the smartTES case and the relevant criteria were analysed. Please see further details in the appendix.

Summary Private Target Groups 85% of the EU-citizens think that politicians should give the same importance to environment as to economy and social policy. Public authorities serve as model for private companies to change their consumption attitude and life-style. • Between 1% and 71% of the people are easy

to reach for out smartTES-issues. • Median = 19% • 13. Mio people in Germany (of 70.5 Mio) The more specific and rationally imaginable the sustainability issue gets, the merrier acceptance it gets. The more commonly and emotionally the sustainability issue is comprehended, the more acceptance it gets. Men rather prefer technique, prestige and investment. Women rather prefer well-feeling, doing the right thing and consumption.

The Private Target Group bracket The over all spanning Target Group bracket is <Sustainability>. It is relevant for people at the age of 30 years and older with a high formal education, in a demanding profession, with a high income. For this target group applies: Emotion PRIOR Ratio. The biggest barriers for market entrance are a low formal education and a general discomfort with environmental issues.

7 http://www.sinus-institut.de/uploads/tx_mpdownloadcenter/Informationen_Sinus-Milieus_042011.pdf

8 German Survey: Computer-aided interviews based on a fully structured questionnaire and household account book; Main unit: German population starting 14 years (70.51 Mio.); Trend wave III/2011: 20,129 cases

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The Institutional Market potential This Market potential – the building stock of institutional operators – will exceed the production capacities of the market actors in energetic modernization for a long time. The Institutional smartTES-Target-Groups are: • Country, Federal States, Communities (Multi-storey-building construction,

schools, administration buildings, hospitals, retirement- and care homes) • Cooperative Building Societies • Real Estate Associations and Management

The Business Market potential The Market potential – the building stock of the business operators – will exceed the production capacities of the market actors in energetic modernization for a long time. The Business smartTES-Target-Groups are: • Companies with big space requirements (Factories, Trading, Logistics,

Hospitals) • Private Builders (Private and institutional building) • PPP – Public Private Partnership

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Competition The BIG task 3: A wise company realizes and defines the Creation of Value as difference to the competition. The Market of energetic modernization is very attractive, politically favoured and grows dynamically. An exact prognosis of market development is not possible. In general a frame story for the development of young markets can be described • Market entrance of many actors • Testing of many alternatives (Procedures, Cooperation …) • Market adjustment and domination by few big companies smartTES faces the current competitive situation: • International actors with profound competence of the industry in buildings are

established on the market. • International actors with profound system competence (in energy) exploit new

business areas. • A lot of small national / regional actors are developing energetic modernization

methods and are pushing into the (new) business fields. • The competition for Science to Crafts does not exist. The special know-how is

bound to the smartTES project members. The know-how will be spread by the smartTES-project members.

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3. Trend Research The BIG task 4: The Company is aware that from environment constantly arise new chances and risks.

Mega Trends9 European Mega Trends are the changes and developments in politics, economy and society that influence on our work. It is important to know which trends are relevant to the market entrance of smartTES and how they can be dealt with. Mega Trends describe broad social,

economical, political and technological changes. They develop slowly and once in force they have a long-term influence. Mega Trends change our lives, our way of thinking and acting, noticeably and durably.

The fields of research contain all things, that people design and how they have influence upon their environment – in society, economy and as a community.

Which cultural agreements do we make that influence our present and our future?

9 Mega Trends: since 1997 THESSENVITZ MARKETING has done a profound research and analysis on various secondary sources and material: such as Sinus-Institute Heidelberg, Future Institute, GfK Consumers Research, Shell-Studies 2002, 2006, 2010, GDI Research Institute et. al. The Mega Trends here are a summary of the research in secondary material.

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Relevant Trends

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Summary relevant European Mega Trends

Material- and Micro-Technologies smartTES uses all materials and micro-technologies, which are useful to the idea of energetic modernization.10 Energy Turnaround smartTES wins on the rational level in all areas of content and subject-specifics. Europeanization The ideal: smartTES considers itself a European Company. Public Private Partnerships smartTES has a reasonable economical PPP-model. Ecologicalization smartTES wins on emotional & rational level for significant advantages to the competitors. smartTES needs reliable calculation models. Learning Organization smartTES integrates knowledge-management as basic working principle for long-lasting quality enhancement and control of process chains. Clean – Transparency Radical control on the production process. Resilient calculation of the sustainable creation of value. Convincing arguments – also to work with changing perspectives (time horizons, inter- and externalized costs). Convergence of different branches and markets smartTES plans and coordinates services/performances for different branches, and promotes interaction (in creation of values). Trading-Up – Excellence smartTES-excellence = design, architecture, communication, argumentation, solution minded, work- and business processes Safety smartTES = Safety in EVERYTHING and proof for EVERYTHING: results from practice, references, quality labels, certificates, statements of customers and partners, laboratory testing Demographic Change A mature, consumption-experienced and –affine society demands for ergonomic, functional and aesthetic products, services and systems.

10 Here: The answers that smartTES COULD respectively HAS TO give to the Mega Trends | Source: THESSENVITZ MARKETING: Summary of own research since 1997. | For further Mega-Trend details please see the Appendix.

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4. Scenarios The BIG task 5: A durably successful company grows along possible futures. By using the Scenario-Technique we try to estimate in systematic way the quantitative and qualitative evolution as well as its impact on future. The Scenario-Technique can be regarded as work on a screenplay to describe a future reality. Thereby the Scenario-notes contain several imaginable future developments. Guidelines for the development of Possible Futures • Define your position • Observe the evolution / development • Pursue the flight course = Definition of probable futures Scenario = frame work of action 1. Influencing variable 2. Strongest extreme development 3. Weakest extreme development 4. Most probable development 5. The biggest chance 6. The highest risk 7. The consequence thereof The benefit of Scenarios • Sensitization of decision makers • Structured up-dating of future trends • Support for strategic decisions • To have alternative plans up one‘s sleeve in cases of disturbances.

External Risks for smartTES Lack of qualified human resources Know-how-deficits in crafts Climate change is always an urgent problem. There are ALWAYS more current issues than climate protection that push forward (like the Euro crisis).

Internal Risks for smartTES • smartTES is directed too much inward. • smartTES differentiates itself too much. • smartTES doesn‘t get the innovation on the road • Innovation by itself doesn't serve for anything. It is crucial to get innovations

started on a regular basis.

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Central results for smartTES Market Research – Trend Research – Scenarios In the first place the successful market entrance from the marketing point of view is a psychological challenge. The market potential tends to endless. People understand and desire sustainable solutions. The enormous and fragmented competition offers an intransparent variety of solutions. Trends are the strong tail winds for smartTES. Result: The future of smartTES is successfully mouldable: • Clear positioning as solution provider „the specialist for comprehensive

solutions“ • Concentration on attractive target markets „work hard and choose the easy

way“ • Simplicity wins„keep it short and simple“ • Sovereignty by trenchant arguments „say it loud and say it clear“ • Mediation of values „it’s the psychology, stupid“

Résumé: It is worth developing a scalable business model for smartTES.

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5. Mission

What defines smartTES11? – Sense, Identity, Values

smartTES is sustainable • Economic aspects: the high level of prefabrication allows the minimization of

time and costs on the buildings itself. smartTES combines effectiveness, efficiency and productivity.

• Ecologic aspects: Short regional distances as well as the overwhelming use of sustainable raw materials allow the use from cradle to cradle.

• Social aspects: in crafts the creation of value ensures and generates more qualified work places. The purchasing power remains in the region.

smartTES is regionally value-creating The transferability and scalability of smartTES-solutions promotes its regional application, production and dissemination through crafts, and therefore its intensive regional use. smartTES combines the advantages of reliable industry standards with the advantages of decentralized value-creation.

smartTES is reliable quality • The scientific expertise enables consistently high and reliable quality. • Very good transferability of the process in a variety of building conditions (from

small and simple to large and complex) • Precise definition of building requirements (regulations, types of facades, fire

protection) and multiplication of know-how for a variety of projects • The marginal costs of know-how go to zero - once planned, endlessly

implemented • Highest precision by an integrated workflow: measuring up - planning -

construction - assembly

11 Please note: These mission aspects SHOULD respectively HAVE TO be generated by smartTES to

be a competitive and successful product on the market.

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Analysis of smartTES Benefits For the successful market entrance of smartTES, it is less relevant, what smartTES is and can. What matters are the BENEFITS, that smartTES products and services offer. The key questions are: • What is the contribution of smartTES that the world - the clients, users and

stakeholders - is better off? • What does smartTES do / solves smartTES better than others? • Why is it worth to choose smartTES - specifically, practically and measurably? Therefore a precise and objective evaluation of the benefits for each stakeholder group was made for the development of alternative business models for smartTES. Definition: Stakeholders are ALL those who are confronted with the effects of smartTES - economically, ecologically and socially.

Analysis of smartTES Stakeholders12 • Institutional client – Municipal buildings, community hospitals, (high-) schools,

clerical organizations (retirement homes, nursing homes), charitable organizations

• Business / Industrial Clients – Housing associations, housing cooperatives, crafts, industry, trade, logistics

• Private Clients – Homeowners, particularly multi-storey buildings • Timber Manufacturers – Carpentry, middle class, which can survive only with

outstanding quality as a distinguishing feature (low numbers per year imply quality as a surviving criteria No. 1 for a reasonable gross margin)

• Residents / Users of the building • Society – Residents, direct and surrounding neighbours, district • Politics – communal society, state, federation, Europe • Environment – Air, water, soil, people, animals, plants – regional and global

consideration

12 The stakeholders were defined by THESSENVITZ MARKETING; the 101 stated benefits were a result of a survey through secondary material provided by the smartTES project-members

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Analysis of Benefits and Motives Besides the technical, material and aesthetical features of smartTES the specific and immediate benefits count. These benefits differ very much because each stakeholder group has different motives.

Motives of the Stakeholders • Institutional Clients: Low cost, high reliability, acceptance by the residents /

users • Business Clients: Optimal cost-benefit ratio, high reliability, robust solutions,

image improvement • Private Clients: Preservation of substance, value enhancement, higher cold

rents, image improvement • Timber manufacturers: Attractive / large orders, high gross margin per order,

reliable systems, secure calculation • Residents / Users: Minimal disturbances, smooth operating procedure, no

additional costs, good sense of life • Society: Nice environment, good sense of life in the neighbourhood, stable /

affordable prices in the rental market • Politics: Doing good, to be well protected on decisions, present good solutions,

get majorities • Environment: The environment does not need people Hypothesis: What

protects the environment, helps the people

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Which Benefits are significant to whom?

Source for the listing of benefits is the analysis of the available secondary material. For 101 statements (in German) an Excel sheet has been developed to illustrate the specific meaning of each Benefit and Motivation for each stakeholder. Each Benefit was weighted on the basis of the motives of each stakeholder.13 Example:

0 Not significant 1 Partially significant 2 Mainly beneficial 3 Primarily applicable 4 Fully relevant

13 For economical reasons the analysis was done in German. The data can be forwarded by THESSENVITZ MARKETING on request. Please send an eMail to: [email protected]

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Benefit groups (Rank of Order) • Disturbances (32) • Time (30) • Costs (25) • Technique (24) • Environment (23) • Quality (20) • Values (20) • Architecture (19) • System (17) Result of the Benefits Analysis

The system of smartTES is outstanding. It is leading in the number of Benefits as well as in Total of the benefit group. The Benefits present themselves differently in the view of the weighted Total. The main Benefits of smartTES

• Minor disturbances to the residents / users • Significantly reduced manufacturing and assembly time • Costs of smartTES solutions

Summary • The Benefits <Technique, Environment, Quality, Values, Architecture and

System> only have a supportive function. From market perspective this makes smartTES comparable.

• The significant difference arises from substantial time and cost advantages. • With <Time> and <Costs>, we will have the Institutional ~, Business~, Private

clients, Timber Manufacturers and Politics on board.

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Consequence

smartTES consists14 of these materials • Time • Costs • Precision The core of marketing of smartTES has to be developed: Time • Rapid manufacturing and assembly • Low disturbances in the operating procedure • Reliable deadlines • Calculation security Costs • Calculation security • Return on Investment within a reasonable time Precision • Reliable • Systematic • State of the art

For all this smartTES has to generate PROOFS. Time-Proofs • Documented references from order to key hand over • Transparent, understandable and reliable project plans • Interviews with clients and residents / users (in terms of disturbances) Precision-Proofs • Scientifically based and comprehensive expertise • Proof of the practicability • 50 years shelf life • Give clear guarantees Cost-Proofs A computable model that calculates the economic benefits of smartTES-solutions accurately is not available yet. The dilemma starts with a financing period of 6 to 10 years that faces the refinancing beginning the 14th year (depending on calculations also up to 30 years). It is advisable to call an experienced financial mathematician to work out a financial-mathematical-model.

14 Respectively SHOULD respectively HAS TO consist of these materials

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smartTES needs answers e.g. • for economically reasonable payback in a reasonable time • Performance of the object • Feasible increases in income (especially rents) • Feasible additional revenue from Benefit-extensions and –changes • Feasible energy savings • Return on Investment (Investments / break even)

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6. Definition of and decision for a probable Business Model/s

1. Politics | We have the good solutions smartTES orientates towards politics: the Local Authorities, the Counties, the Countries, the Federation and Europe. Politics is the announced main client. The investment costs are always accompanied by the values for society and environment. Sales will focus on political lobbying. smartTES = We have the good solutions. 2. Crafts | We impart useful know-how smartTES builds up a European network with suitable carpentries and provides them with know-how. The main tasks are qualifying, quality management and marketing. smartTES is a learning platform for practical knowledge-transfer. smartTES generates its revenue from training, licensing and quality certificates. The main clients are middle class timber manufacturers. At least in the initial phase supporting funds can be generated through politics. smartTES = We impart useful know-how. 3. Market | We conquer defined markets smartTES concentrates on buildings from the 1950s to 1980s, especially on steel- and reinforced concrete skeleton buildings and replaces the exterior walls. smartTES concentrates on ONE product, ONE solution and ONE market segment. The upcoming 10 years it works on a Europe wide market penetration. Every further innovation directly encourages marketability. Sales concentrates on institutional~, business~ and private clients. smartTES = We conquer defined markets.

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4. Science | We develop useful know-how smartTES develops most different models for energetic building modernization and provides the main clients with the results: European Union, Federal Governments, State Governments, smartTES acts in European knowledge-networks of universities and acquires more and more research fields all around the issue “energetic turnaround in relation to modernization in the existing building stock”. Sales concentrate on networking. smartTES = We develop useful know-how.

Analysis | Business Models and Mega-Trends

The main Mega-Trends for smartTES are • Energy Turnaround: smartTES convinces on the rational level in all areas,

content wise and technically. • Clean – Transparency: Radical Testability of all production processes.

Reliable calculation of the sustainable creation of value. Convincing arguments – even with changing of the perspective (Time and Costs).

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Decision | Business Model 2012+X

Central questions | BUSINESS MODEL • What do we understand best? • What is the most easy to realize? • What can lead to the biggest success?

Workshop

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Decision of the project-partners Business Model “Science to Crafts”

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Mission Science | draft smartTES develops most different models for energetic building modernization and provides the main clients with the results: European Union, Federal Governments, State Governments, smartTES acts in European knowledge-networks of universities and acquires more and more research fields all around the issue “energetic turnaround in relation to modernization in the existing building stock”. Sale concentrates on networking. smartTES = We develop useful know-how.

Mission Crafts | draft smartTES <Science to Crafts> builds up a European network with suitable carpentries and provides them with know-how. The main tasks are qualifying, quality management and marketing. smartTES is a learning platform for practical knowledge-transfer. smartTES generates its revenue from training, licensing and quality certificates. The main clients are middle class timber manufacturers. At least in the initial phase – supporting funds can be generated through politics. smartTES = We impart useful know-how.

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Workshop Results

Workshop 1 | Mission Describes the organization <Science to Crafts> from the markets point of view • We are … | What we do | what unites us • We stand for … | Our “eternal” order | our mission • We promise to our clients and to our partners … | Our core services | where we

are provably better | the central value • We promise to our colleagues … | Our cooperation | our rules | our common

challenges

Mission smartTES Norway <Science to Crafts> smartTES Norway stands for applied research and development for the building sector. The core is knowledge transfer. smartTES Norway develops knowledge and provides technical approvals to actors in the building sector.

Mission smartTES Finland <Science to Crafts> smartTES Finland stands for a network of Research and Technological Development (RTD) and for the organisation in association with the wood industry partners. smartTES Finland promotes research, development and dissemination work for the scientific community and public interest groups. SmartTES Finland gives excellence in scientific exchange, education and sharing of the state of art experiences.

Mission smartTES Germany <Science to Crafts> smartTES Germany stands for the development of new ideas, methodical structuring, solution work out of general solutions (like windows). smartTES Germany makes proposals for standardization and requirements and independent investigations on facts for the general public. The university’s neutrality of smartTES Germany allows acting as a connection between the planning offices and the manufacturers. To clients and partners smartTES Germany promises • Direct implementation and usefulness of the results from the executing

manufacturers (carpenters and designers (architects, TWP) • Publication of working solutions (proven by a certain process of evaluation

within the research project (= pilot projects)) • Definition and identification of risks • Proof, that it works Assertion : proof building trust

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Workshop 2 | Preview for a claim The claim makes the core idea of <Science to Crafts> easy to understand. For example SINTEF: Technology for a better society

Preview for a claim smartTES Norway <Science to Crafts> • smartTES Science to Crafts - knowledge and solutions for retrofitting • smartTES Science to Crafts - solutions for building renovation • smartTES Science to Crafts – technology for (better) building renovation

Preview for a claim smartTES Finland <Science to Crafts> • We know how!

Preview for a claim smartTES Germany <Science to Crafts> • Science to Crafts - Produceability, Mountability • Science to Crafts - Communication and understanding. • Science to Crafts - Education and sensitization for an interdisciplinary thinking

in the planning process. • Science to Crafts - Provide knowledge and ensure quality. • Science to Crafts - We develop and impart useful „applied knowledge”.

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Workshop 3 | Scaling Input concerning <Time, Costs, Precision>. This is absolutely necessary for the further planning of measures for the business model. Central question: How do we design our product/s under the proviso Time - Costs - Precision for the (big-) series-production?

Scaling smartTES Norway <Science to Crafts> by • Standardized, documented and verified solutions • Minimize the number of variants/variations • Flexibility within certain limits (time-cost)

Scaling smartTES Finland <Science to Crafts> by • Collaboration with industry consortiums • PR-organisations / services • a desired RTD partner

Scaling smartTES Germany <Science to Crafts> by • As a turnkey modernization measure in timber • Range, target corridor, definition of parameters (measurement accuracy) • Focusing on a limited number of variants • Product system standard • Simplicity of the system • Fixed definition of the process • Consideration of the whole of the process (design-planning-execution) • Fixed prices

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Workshop 4 | Qualifying Crafts We need a defined product / system / method / service for which the concept can be developed Central question: How do we enable timber manufacturers in Europe to produce smartTES solutions on their own? • What knowledge do the manufacturers need? • What abilities do the manufacturers need to be able to produce

TES Energy Façade in terms of Time – Costs – Precision? • Where do the manufacturers need support from smartTES? • Are licenses or quality labels useful to them?

Qualifying Crafts smartTES Norway • A well developed cooperation with main contractor (total entrepreneur) in large

scale projects • Or the main contractor is also the TES manufacturer • Qualifying; • Consulting to manufacturers • Technical Approvals for TES-elements (application area : renovation) (for the

Norwegian Market)

Qualifying Crafts smartTES Finland • Collaboration with and between technology partners for end-user and business

oriented holistic renovation services

Qualifying Crafts smartTES Germany • Manufacturer need process knowledge • Mechanical equipment • Exemplary illustration of a corporate structure: "Who can do what how?" • Clear definition of the services to be provided (-> announcement?) • Build upon an existing quality- and external-monitoring for producing closed

walls, e.g. by a certification of the assembly. Goal: safety for the client. Therefore willingness to invest more.

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Workshop 5 | Qualifying Science Central question: How can the role of your university as a consultant towards industry / politics be strengthened? • Data base of timber manufacturers with adequate capacities. • Data base of ...

Qualifying Science smartTES Norway How can the role of your university as a consultant towards industry / politics be strengthened? • List of Approvals • Give courses and seminars • Research based consultancy

Qualifying Science smartTES Finland Excellence in • scientific exchange • education and • sharing of state of art experience.

Qualifying Science smartTES Germany

• TES information service affiliated to the external-monitoring. • Preparation of the knowledge for industry and politics. (Research report as an

audio book) • Offering of trainings • Individual care • A type of process accompanying technical monitoring (like TÜV) • Continuous quality-monitoring • Interdisciplinary, process oriented TES certificate • Certification Authority CA. like project managers (financial maxim). Certification

cf. passive house standard • Definition of clear rules / limits • Objective: safety for all involved in the process

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Workshop 6 | Who needs it?

Résumé All project-partners in Finland, in Norway and in Germany have comprehensive experience in bringing knowledge to practice via seminars, conferences, workshops and courses. This work is established and successful. Therefore the project-partners want to continue their work this way.

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Workshop 7 | Country Specifics • Manpower: Who will join the core team Science to Crafts and who is

responsible? • Where would you like to continue your work for science to crafts? • What are your / your organizations specific strengths for science to crafts? • What ran so far successfully? • What misses definitely? • In your opinion, what might function successfully?

Country Specifics smartTES Norway

Manpower: Who will join the core team Science to Crafts and who is responsible? • Berit and Holger Where would you like to continue your work for science to crafts? • SINTEF What are your / your organizations specific strengths for science to crafts? • See previous slides What ran so far successfully? • Quite a few possible producers (see list of technical approvals) What misses definitely? • Projects, contractors, acceptance of cost level, Development of Application of

TES-elements in renovation In your opinion, what might function successfully? • Conducted projects (Risør and Fredrik Selmersvei) have worked well

Country Specifics smartTES Finland

Manpower: Who will join the core team Science to Crafts and who is responsible? • Who will join the core team Science to Crafts and who is responsible? Kimmo

Lylykangas et al., PAKRAK, FWR, Koskisen, WoodPrime, Paroc/Lujatalo, SRT, Teerikolmio etc.

Where would you like to continue your work for science to crafts? • Continuing the work: Follow-up research and continued R&D services. Public

buildings, urban renewal and infill development What are your / your organizations specific strengths for science to crafts? • Strengths: Finland uses the most wood per capita and has the largest forests

in Europe. We are big fishes in a small pond. What ran so far successfully? • Success: Winning the hearts and minds. (Dissemination and influence) What misses definitely? • Missing: Early adopters, holistic project management. In your opinion, what might function successfully? • Future success: TES to BES (replication potential in building renovation).

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Workshop 8 | Local & Network Power

Local & Network Power smartTES Norway Project Management | What can everybody solve for himself? Local education • YES Interdisciplinary knowledge transfer • YES Dissemination, Public relation especially in special interest media for architects, crafts, enterprises, etc. • YES What can we do in common / transnational networking? Joint website (Editing? / Financing?) • YES, if funding available Team Meeting 1 x p.a. “What’s new about TES?” • YES, if funding available Trainings Crafts to Crafts • From foreign craftsmen to Norwegian Craftsmen. In Norway; from Associations

to Crafts Trainings Architects to Architects • from foreign architects to Norwegian architects. In Norway from associations to

architects e.g. NAL Ecobox

Local & Network Power smartTES Finland Project Management | What can everybody solve for himself? • Excellence in scientific exchange, education and sharing of state of art

experience What can we do in common / transnational networking? • TES product R&D is ready enough to move on to the market. • Aalto Wood as networking contact point of Finland and knowledge sharing.

Local & Network Power smartTES Germany • Knowledge broken down into understandable bites • Adapted specific information

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Workshop 9 | Science to Crafts - Design Wanted: Trainer/s, Training Team, Calculator, Training location Qualifying Crafts - What we have – what we need • Training model for crafts in technical education • Training model for crafts in argumentation methods (better arguments) in

comparison to other renovation methods • Crafts need valid calculations for convincing argumentation - who shall do

that? • Definition of location/s (e.g. German regional training centers South / West /

East) • With local training teams on site: e.g. scientists, economists, architects,

craftsmen, marketing-specialists

Design <Science to Crafts> smartTES Norway

Training model for crafts in technical education • Yes, possible (e.g. Byggskolen) • We can promote schools to build up courses • We can propose courses for architects, engineers and technicians /

craftsmen to the NTNU With local training teams on site: • Trough development projects courses; training on site (RTD) can be initiated

Design <Science to Crafts> smartTES Finland

Qualifying Crafts | What we have – what we need • Continued education for professional designers to become professional

wood designers • Industry R&D actors • Nordic TES networking and cooperation

Design <Science to Crafts> smartTES Germany

Recipe: outstanding carpenters + good engineers + good architects (get them together, mix them) = TES-Academy

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Workshop 10 | Science to Crafts - Processing We need to know the role of the project partners in the business processing Structure of order processing from request to conduct: Description of the processing for a training order in each country.

Processing <Science to Crafts> smartTES Norway

The processing for a training order in Norway • On voluntary basis • A craftsman, an engineer or architects apply for "further training" • See also Workshop 9

Processing <Science to Crafts> smartTES Finland

The processing for a training order in Finland 1. Learn Finnish 2. Puuinfo (Marketing) 3. AaltoPRO (Sales) - - -

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7. Conclusions and recommendations The smartTES project group decided on the business model “Science to Crafts“ as the frame story for the market entrance of smartTES. The partners are well experienced in courses, lectures and seminars; the dissemination of knowledge is established and can be easily focused and expanded. The future work of the smartTES partners concentrates on the implementation and ensuring of the smartTES Creation-of-Values "Costs – Time – Precision” from the Marketing point of view. This will lead to the main arguments for the stakeholder to choose the sustainable smartTES-system.

<Science to Crafts> into action in Norway, Finland and Germany The core teams are defined. The mission variants for each country have been worked out.

Mission smartTES Norway <Science to Crafts> smartTES Norway stands for applied research and development for the building sector. The core is knowledge transfer. smartTES Norway develops knowledge and provides technical approvals to actors in the building sector.

Mission smartTES Finland <Science to Crafts> smartTES Finland stands for a network of Research and Technological Development (RTD) and for the organisation in association with the wood industry partners. smartTES Finland promotes research, development and dissemination work for the scientific community and public interest groups. SmartTES Finland offers excellence in scientific exchange, education and sharing of the state of art experiences.

Mission smartTES Germany <Science to Crafts> smartTES Germany stands for development of new ideas, methodical structuring, solution work out and general solutions (like windows). smartTES Germany make proposals for standardization and requirements and independent investigations on facts for the general public. The university’s neutrality of smartTES Germany is a connection between the planning offices and the manufacturers. To clients and partners smartTES Germany promises • Direct implementation and usefulness of the results from the executing

manufacturers (carpenters and designers (architects, TWP) • Publication of working solutions (proven by a certain process of evaluation

within the research project (= pilot projects)) • Definition and identification of risks • Proof, that it works Assertion : proof building trust

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8. Appendix

Markets

Data Base | Norway15

With a BIP/GDP* ~ 63.000 € per capita p.a. Norway is one of the richest states of the world. The issue of energy efficiency gains in importance. Political and economical actors pull together. Subsidy programs, binding directives and regulations for more energy efficiency increase. The domestic energy consumption is almost exclusively generated by hydro- and wind power. Oil and gas are exported. The crucial obstacle for more energy efficiency is the low energy costs from sustainable energy sources. With increasing energy costs more and more house owners and clients are interested in energy efficient measures.

Political will | Norway Norway wants the energy turnaround. It intends to use the potential of energy savings in public, private and commercial buildings in a more efficient way and as fast as possible. With governmental funds Norway invests in energy efficient new- and re-construction projects. Norway has associated to the EU-directive for renewable energy as of June 2009. By starting further subsidy programs Norway creates stimuli for the energy turnaround. There are upcoming binding directives and regulations, e.g. • the Low-energy house standard for complete refurbishments starting 2015 • the Passive house standard for complete refurbishments starting 2020 and for

new buildings starting 2015. • the Zero-emission standard for new buildings starting 2020 • Use and operation of energy efficient components and construction parts for all

building projects starting 2015. • Individual monitoring/ measurements and billing for single flats starting 2015 • Indication of expected costs for energy efficient renovations at real estate sales • Landlords shall adjust running rental contracts (…) if this is necessary because

of energy efficient renovations (…).

15 Source: FACT-SHEET NORWEGEN, DIHK und AHK (German and Foreign Chamber of Commerce), 2011 *GDP = gross domestic product

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Market Potential | Norway The private households invest into the energy turnaround. Norwegians like to invest into their properties. In 2011 the total sum for renovations adds up to 3.000 € per household (total approx. 6.4 billions €). Approximately 6,8% of the private expenditures run into maintenance and renovation of flats and houses. With this Norwegians are number one in Europe. The acceptance for energy-friendly solutions exists. More and more consumers are interested in energy-friendly and energy-efficient measures. Within energy efficiency Norway is oriented towards German, as well as other European examples.

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Public Sector | Norway The public sector is the most important counterpart as a smartTES client and business partner. The local authorities own 25% of the non-commercial buildings which consume 1/3 of energy. A lot of the buildings are older than 20 years. Public building projects add up to 30% of the investments in the Norwegian building sector. In 2010 more than 2.6 Mio m² building space were spread over more than 1.500 buildings in the public sector (a. o. universities, courthouses, cultural buildings and embassies). The solid financial condition of the public households on national as well as on local level will probably lead to further increasing expenditures into infrastructural projects. There are few counterparts with a big leverage effect. That means a maximum productivity for smartTES distribution.

Risks | Norway • Cheap“ renewable energy • Lack of qualified personal

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Data Base | Finland16

The high energy consumption results of the special climate in Finland, long transits, high living standard, the heating systems (electric heating) and the energy-intense industrial structures. The issues energy generation, dependence of mineral oil as well as energy efficiency attract a wide public attention. Constantly increasing energy costs lead to a strong sensitization of private and industrial consumers. Climate protection is a significant issue to the Finnish people. A highly promoting factor for the energy turnaround especially is the open mindedness for modern technologies.

Allocation of primary energy consumption by energy carrier

Energy carrier import quota

Finland intends to perform as a pioneer in the field of energy efficiency. In energy efficiency Finland is very active and has developed a multitude of realized and planned eco- and energy-political concepts and measures. The potential of energy efficiency in the industry- and building-sector is significant.

Political will | Finland Subsidies policy in energy efficiency of buildings: In January 2008 the energy efficiency directive for buildings was introduced in Finland. The directive contains • Legal regulations for the energy certificates that became effective in 2009 • Minimum requirements for energy efficiency • Regular surveys on heating-boilers and air-conditioning systems • Cities and communities are embedded into the agreements and are requested

to implement the guidelines. Subsidies policy in energy efficiency of buildings in the existing building stock: Financial support of 10% -15% for maintenance and renovation of the building stock under energy efficiency criteria. A maximum takeover of 40% for approved costs of an energy-audit. Since 2009 certification duty applies to the sales and renting of buildings.

16 Source: German-Finnish - Chamber of Commerce - AHK - Deutsch-Finnische Handelskammer, 2011

– current data at the time of the research. The first directive on holistic energy efficiency of buildings came into force 2012, the first statutory regulation on energy efficiency in the context of renovation and alteration works of existing buildings was published in 2013

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Energy regulations for construction components • Far-ranging regulations starting in 2010 and up to 30% - 40% tightening of the

existing regulations: Heat insulation of exterior walls and of the upper floors, tightness of buildings windows and doors and a more efficient heat recovery rate of air ventilation systems

Upon agreement with experts of the Finnish Communal Association and selected communities, Finnish communities especially support (politically): • The basic renovation of suburbs (Building stock of the 1960s-1980s); • multi-storey buildings of concrete elements; • the completion of the existing building stock in the suburbs, • old, historical and valuable buildings • Zero-/Plus-energy houses (design, realization, utilization), components from

Germany (walls etc.); energy efficient timber construction

Market Potential | Finland Low-energy houses and passive houses exist only occasionally. Finnish constructors are confronted with the upcoming requirements and have announced to use appropriate technologies within the next years, in parts almost exclusively. Therefore partners and know-how are still wanted.

Specific property relations Approximately ¾ of the residential units in multi-storey-buildings are private property. ¼ are rented apartments. The property relations have a direct impact on renovations financing. Owners of multi-storey-buildings do not have home ownership. They dispose at shares of the housing association. These shares allow them to live in the particular flat. The housing association with 50 flats has 50 shareholders with equal rights17. Decision making is far more difficult than with a single owner. Starting in the 1960s multi-storey-buildings were typically built of prefabricated elements. This construction method made it more difficult for smaller constructors to build multi-storey-buildings. Most of the buildings were built by the biggest construction companies of their days. These companies had their own building types, which they could change easily for new surroundings. Buildings of one region and built by one constructor look identical. In most cases these houses have an identical heating, air-conditioning and installation system. Most of these buildings are in need of renovations. To these often belongs the renovation of the facade as well as the water supply system. • 2,7 Mio. Flats • 2,5 Mio. buildings (residential and non-residential buildings) • 35% of the Finland's buildings were built between 1960 and 1980 and 40%

after 1980.

17 rights dependent of square meters of the apartment

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• Indeed the building stock is young, but because of bad technical and constructional conditions and a common renovation cycle of approx. 40 years, renovation of the existing building stock will increase over time.

Essential impulses for growth and investments can be expected from the private sector. Leading strategy of the public sector are = PPP-Projects (Public Private Partnership).

Public sector | Finland Yet few activities have been conducted to increase energy efficiency in Finnish communities. One main reason is the low level of knowledge concerning solutions for energy efficiency. The relevance, respectively the potentials for energy savings are generally present to the communities and there is a large interest to such solutions. The communities are searching for financial releases.

Risks | Finland18 • National debt • Clammy communal funds • Lack of know-how • Lack of qualified personal • Property relations

18 AHK - Deutsch-Finnische Handelskammer (German – Finnish Chamber of Commerce), 2011

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Data Base | Germany Despite all hesitation Germany being part of the leading group of industrialized countries is on its way to a sustainable society. The efforts contain the private, industrial and public sector – they range from moral consumption to investment incentives.19

Political will20 | Germany The Energy efficiency in buildings is on the political agenda. The Heating Balance 2000 to 2009 shows, the private sector energy consumption for spatial heating decreased by 20% temperature-adjusted, with a simultaneous 7% increase of living space. Accordingly energy consumption for spatial heating per square meter living space decreased 25% from 2000 to 2009.

19 Source: www.destatis.de 20 Source: Umweltbericht 2010 des BMU - Bundesamt für Umwelt und Reaktorsicherheit (Environmental Report 2010 BMU - Federal Office for the Environment and Nuclear Safety)

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Energy Saving Act (EnEV) With the revision of the Energy Saving Act becoming effective on October 1st, 2009 climate protection for buildings got an additional boost. The energetic requirements for new buildings and for the renovation of old buildings increased over 30%. Singular retrofit duties were extended so far as they could be realized economically. For example walk able highest ceilings have to be insulated until the end of 2011 and storage heating systems have to be disabled step by step starting 2020. Executing is strengthened. This is conducted by declarations of entrepreneurs who confirm observing legal regulations for building renovation, as well as by visual controls of heating-systems by the district-master of chimney-sweepers. CO2-Building-Modernization-Program Besides the regulations of the EnEV the CO2-Building-Modernization- Program of the KfW-Banking Group (promotional bank) is the most important instrument for climate protection in the building sector. The Program was renewed on April 1st, 2009. Thereby promotion of energy efficient new buildings and energetic renovation for existing buildings was concentrated in two programs: „Energy efficient building“ for new buildings and „Energy efficient renovation“ for existing buildings. Heating Costs Regulation The consumption depending part of the chargeable heating costs were increased by January 1st, 2009 for specific buildings. With this users should get motivated to an economical heating behavior. The duty of energy consumption monitoring is no longer required for passive houses; likewise for new buildings and energy renovation in existing buildings. Energy Concept The Energy Concept formulates guidelines for environment protection, reliable and affordable energy supply and describes the road map into the age of renewable energies – objectives to reach until 2050. In addition to that the Energy Concept contains a long-term strategy for the century task building renovation.

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Market Potential21 | Germany • 39,5 Mio. Flats • 18,1 Mio. residential buildings • More than 80% of the buildings are older than 25 years. • There is a big restoration potential.

21 Source: :www.destatis.de

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Risks | Germany • Lack of qualified people • Financial market crisis / national debt • Clammy communal funds • “The world shall recover the German way” ~ Ideological overlay of the issue

sustainable society

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Target Groups

The BIG task 2 From environment arise chances to be valuable for customers.

Private Target Groups West European Meta-Milieus by Sinus-Institute, Heidelberg22

22 Western European Meta-Milieus of the Sinus-Institute22, Heidelberg

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TdWI – Private Target Groups23

23 TdWI (Typology of Wishes) Intermedia: Survey in Germany: Computer-aided interviews based on a fully structured questionnaire and household account book; Main unit: German population starting 14 years (70.51 Mio.); Trend wave III/2011: 20,129 cases

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Business and Institutional Target Groups

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Competition Research

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European Megatrends24 Changes and developments in politics, economy and society and their influence on our work – Which trends are relevant to our market entrance and how can we deal with it? Definition Megatrends: • Mega-Trends are broad social, economical, political and technological

changes. They develop slowly and once in force they have a long-term influence.

• Developments that change our lives, our way of thinking and acting, noticeably and durably.

The fields of research contain all things, that people design and how they have influence upon their environment – in society, economy and as a community. Which cultural agreements do we make that influence our present and our future?

24 Source: THESSENVITZ MARKETING: Summary of own research since 1997.

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Scenarios

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