| Submission Entry: | 1.) Given that buildings consume 40% of global energy, within which at least 40% is consumed by HVAC systems, how has the goal of 1.5 C additionally impacted your project opportunities? What specific products have you supplied or incorporated to support the 1.5 goal? (213)Answer: Nordatec is an IOT company focused on energy savings. Sustainability goal resonate deeply with the business strategy as we focus on:
- Buildings that consume a large amount of energy (legacy buildings with EUI of 480 kWh/year/m2, 100% above the UAE average)
- Develop IOT centered solutions to 1) control the buildings to be more sustainable and 2) monitor the building operation to further improve sustainability
- In 2024 we have designed, manufactured and deployed a highly popular IOT controlled replacement for legacy Window AC.
- The IOT controlled inverter window AC installs in 45 min and generates 65% savings.
- We served three major customers in 2024 spanning 15 buildings, sold 2050 units for cooling about 30 000 square meter.
- serving an end user population of more than 16 000 persons.
- Furthermore we delivered inverter split AC control solutions with 519 units serving 2000 end-users
2.) Describe the bigger picture you see as an IoT service provider. How do socio-economic and sustainable development initiatives in the country, or countries, you are operating impact/influence you as a manufacturer, supplier or service-provider? (214)Answer: The market for staff accommodation has below specific characteristics:
- a large set of legacy buildings in GCC still run window AC. Due to architecture and building structure (lack of refrigeration pipe and electrical conduit), it is difficult or nearly impossible to transition to other forms of cooling including split AC or worse VRF. Window AC is still the only reasonable compatible form of cooling.
- Non collaborative end user behavior contributes to significant energy waste: AC running in empty rooms and setpoints set at lowest possible values. Facility managers spend considerable effort to mitigate unfortunately to low success.
- The MEP / HVAC maturity of operators is low and accordingly simple solutions to buy and install are needed.
- Commercial staff accommodation operators face an economic challenge to remain profitable, especially when running heavily consuming outdated legacy window AC.
3.) How has the global drive towards AI impacted your business in terms of sales cycles, conversion rates of prospects to contracts and improved profitability? (215)Answer: To my surprise the customer base is hardly receptive to ‘offer mails’, is not actively searching for solution on the web, are not participating to trade fairs nor is active on social media. The main approach to customer remains ‘old style’ physical meetings and search for prospects.
Fortunately the drive towards AI has democratized a revolution towards computer-driven environment with tangible benefits. This mindset evolution helps prospects approve IOT controlled ‘smart’ solutions.
4.) To what extent do you believe you have the scope to feel concerned about, and to contribute to, the socio-economic and sustainable development of the country, or countries, you are operating in? How frequently are you able to precisely meet the specific needs of consultants and of developers/builders (clients)? (216)Answer: The proposed IOT controlled Inverter Window AC is well received by facility managers and building owners due to unique IOT features:
- Central setpoint lock: building manager selects and enforces the setpoint.
- Central flexible switch-off: unit stops on profile timer. Unusual users can still re-start the unit.
- Presence sensor further reduces cooling in no-occupancy case.
- Totally hidden solution remains invisible to end-user,
- end user can use standard remote and physical panel, except for setpoint.
- 3D monitoring of key HVAC parameters support facility managers: running time, temperature, kWh consumed unit by unit.
- Installation of product is simple and typically done by existing site team.
- 30% lower purchase cost than split AC, more efficient than uncontrolled split AC
The product is easy to try and buy: kWh meters demonstrate the sustainability benefits in less than a week beyond any doubt and without consultant analysis.
5.) What steps have you taken to ensure cyber security, so that customers’ personal or business data are not compromised? (217)Answer: Solution is secured by industry-standard technology every step of the way:
- End to end VPN from device to cloud: not even wifi operator can view the data
- Usage of unique X-509 certificate ensure banking-level authentication for legitimate remote control
- Controlled SW upgrade
- HTTPS/SSL towards the cloud service. Standard IT solutions keep customer data safe.
- No physical access to device control from end user (button or display)
- Standard IT security solution on public high performance cloud
6.) As manufacturer, supplier or service-provider, what specific actions do you take in terms of handholding on installation and training on operation, plus ensuring availability of aftersales support? (218)Answer: We are worked hard on the installation process to make it as straightforward, simple and error free as reasonably possible. In most cases the configuration is totally screen-free paper-only.
The obvious AC installation process is supported by our partner Taqeef, importer and seller of Midea Window AC in UAE. Taqeef ensure the support to installation and troubleshooting of actual AC-unit functions.
Nordatec IOT controller has the form of a USB-stick and installs in less than 2 minutes during the AC installation process. The site wifi credentials are provisioned before delivery, thus removing the need for configuration on site.
The list of installed controllers is listed on pre-printed commissioning sheet. Using a simple pictures, customer team send setup using what’s app.
This totally removes screentime for installation. This reduces error rate and ensures end-user acceptance.
We require customer to nominate a ‘key user’: we then engage with this user only.
7.) What pricing policy do you follow as a manufacturer, supplier or service-provider of IoT products or services? What are you doing to attract customers - innovative commercial contracts, project financing, etc.? (219)Answer: We propose a standard freemium model : premium support for the first year, payable for subsequent years with a return to basic tier features.
As initial price is the main purchase criteria, we do everything to keep the initial price low yet feature rich. The main selling point remains the energy efficiency of the solution along with capacity and scalability.
8.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as a manufacturer, supplier or service-provider, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (220)Answer: As a manufacturer of physical hardware, we can use physical delivery against physical payment only. This helps collect main payment. Furthermore our distribution partner collects the payment on our behalf against delivery of the solution. This is the established norm for HVAC material to be delivered and paid.
Payment of advance features or maintenance is done on advance basis, if needed on quarterly basis as it is difficult to collect full yearly payment.
9.) What do you envisage the future of IoT to be? What futuristic scenario are you working towards the supply of IoT devices and software? Are you providing completely cloud-based solutions on a recurring revenue model or on-premises installation of software for a one-time fee? (221)Answer: There are as many service models as customers, mainly depending on the maturity of the customer.
The cloud-based freemium solution is the most easy and reliable. The customer is rarely willing to pay for maintenance or premium features no matter how low the fee, unless extraordinary features can be demonstrated that reduce his cost or enhance his operations.
The one-time fee setup is fit for advanced customers that have maintenance and capable IT organization. Yet, apart from the in-house software and maintenance effort, simply cooling, electrical and infrastructure cost of an IT server do generally not make it attractive to run.
We advocate for standalone cloud and further for collaborative cloud-to-cloud model. In 2024, we deliver configuration and maintenance of 1800 IOT device in 3 buildings while delivering data for analysis to partner cloud through our secure API. This helps customer expand feature while keeping control of their data.
|