Tsubouchi: Daikin is a company that has grown by manufacturing air conditioners, but then we started to realize that simply sticking to manufacturing and selling air conditioning equipment (products) might limit the value that we could offer our customers.
This led us to expanding into the BMS field. In developing our own BMS, we believed that we could provide one-stop facility management to customers with Daikin air conditioning equipment in their buildings and offer them solutions (experience) for even greater value.
NEWS
Daikin’s BMS Construction Revolution: Semi Customization Shatters Industry Norms
FEATURE
2026.02.19
We want to provide customers with a simple and easy-to-use building management system at half the cost ―
From small buildings to tall skyscrapers, building owners rely on building management systems (BMS) to automate and streamline the management of essential building systems, including HVAC systems. However, constructing a BMS can be a costly and time-consuming process that is roughly divided into three steps: design, engineering (on-site development), and trial operation. Aiming for greater customer value at half the cost, Daikin engineers devised their own BMS and have succeeded in driving down engineering costs by 50%.
To discover how Daikin revolutionized the industry, we went to the Daikin Technology and Innovation Center (TIC) to ask the people responsible: Senior Engineer Akira Tsubouchi, Yasutaka Narikiyo, and Shinsui Masaki. In this article, they tell their story of shattering industry norms with the "Semi-Custom BMS."
Daikin Stakes Future on a Survival Strategy: Entering Areas Where Other Companies Dare Not Go
――What is the reasoning behind transforming from a company "selling products" to one "selling experiences"?
*BMS stands for building management system. This is a type of system that connects building equipment installed throughout a building or large facility via a network and uses software to centrally monitor and control the various building operations and equipment. At the same time, it collects sensor information from HVAC, lighting, electrical, and other systems.
Narikiyo: For some time now, we've been trying to shift focus to selling experiences, but the road hasn't been easy, and it took our third attempt before the business finally got on track. This project was launched around 2020, and development has progressed in collaboration with overseas bases (in Europe and North America).
――It's been said that Daikin smashed norms with semi customization. Is that true?
Narikiyo: Well, each building differs from the other in terms of floor area, number of floors, and equipment used. For this reason, where other companies have tried to build a BMS, they have opted for a fully customizable BMS incorporating customer demands. However, full customization of a BMS requires many hours of labor, and because you are building from scratch, the process predictably leads to higher costs.
That's why we thought of a semi customizable BMS. Rather than building a fully customizable BMS, parts that could be patterned and packaged were standardized into the building process. For example, we standardized button design and the layout of the management screen (user interface).
On the other hand, some functions can't be accommodated by standardization alone, and when that happens, we use a hybrid method in which our engineers build customer demands into system development. If a customer wants to display a floor plan, our engineers can create that screen and integrate it into the BMS.
――So, how would you describe the underlying development theme?
Narikiyo: I think that "fast and low cost" best describes our concept for our Semi-Custom BMS. As I mentioned earlier, we prioritized reducing the number of work hours needed on-site by the engineer. That shrunk the costs, allowing us to deliver a low-cost BMS to our customers.
However, we initially felt that there was a risk in applying it to buildings of all sizes, so we began first with installation to buildings that were relatively small in scale and had simple equipment configurations.
Standardization Reduces Mistakes and Increases Efficiency: Utilizing Templates and Auto-Links
――How have templates been useful in increasing efficiency?
Database created by combining multiple templates
Masaki: Templates help us to standardize the necessary data, and we combine multiple templates to create a database. The three main templates that we use in standardizing the BMS construction process are station templates, model templates, and device templates.
Station templates consolidate the basic functions required for all building management, including calendars, user management, and alarm management. These templates are also used to classify alarm levels, such as major and minor alarms.
Model templates virtualize and generalize information about equipment used in buildings, such as air conditioners, chillers (chilled water circulation systems), and AHUs (air handling units). For example, regardless of manufacturer, air conditioners have common data such as ON/OFF and temperature.
Lastly, device templates are templates of the information (data points) held by each piece of equipment. For example, for air conditioners, there is one data address for temperature, one for humidity, and so on, with each data point having a different address for each model and information item.
Database created by combining multiple templatesData needs to be passed between templates; however, depending on the manufacturer or model, values may differ, even for the same model. For example, one model may have 0 for heating and 1 for cooling, whereas another may have the opposite settings. Data conversion templates are also used to standardize this.
――What role do auto-links play in linking data?
Masaki: Information received from each device must be linked (bound) between templates. Auto-links perform that work automatically by detecting and automatically binding reference tags (Haystack tag) that are pre-defined for each data point.
A fully customizable BMS requires you to start from zero and create an enormous number of data points. It's an incredibly intricate process, and one in which missing data points can prevent information from being retrieved from devices. Binding is also an elaborate process, but binding to the wrong data point can result in an erroneous retrieval and display of information.
To eliminate these errors, trial operations are performed after engineering. However, the more the errors, the more time and effort needed for trial operations. For this reason, we fully utilize templates and auto-links to prevent errors from occurring in the first place.
Carefully Designed UI and UX by Professionals: Commitment to Simplicity and Ease of Use
――What steps have you taken to globally unify Daikin's design language?
Masaki: The Global Design Guidelines were created by design teams in Japan and Silicon Valley (United States) for use across all Daikin products. These guidelines define standard rules for standard colors, icon and button shapes, and more. While these guidelines will be incorporated into various Daikin products in the future, the Semi-Custom BMS was the first to adopt them for global products.
Global standard design conscious of UI and UX
Masaki: The Global Design Guidelines were created by design teams in Japan and Silicon Valley (United States) for use across all Daikin products. These guidelines define standard rules for standard colors, icon and button shapes, and more. While these guidelines will be incorporated into various Daikin products in the future, the Semi-Custom BMS was the first to adopt them for global products.
Global standard design conscious of UI and UX
Tsubouchi: Professional designers created the guidelines with UI/UX in mind. For this reason, the design is straightforward, easy to read, and simple to use. User interfaces, such as for a BMS, are expected to be intuitive so that they can be operated without having to read the manual. These guidelines meet that demand.
Moreover, Daikin develops products worldwide, and customers benefit from a consistent user interface regardless of when or where (in what country) the product is made.
Narikiyo: With our Semi-Custom BMS, we've also made it easier to use. For example, the hierarchy is shallower, making it simpler for users to return to the standard screen, and we've removed needless graphics and displayed them in a tree structure. Also, only the necessary information and figures are displayed together on one screen. From the perspective of customers who manage buildings, it is important that the system be easy to operate and easy for people to recognize anomalies, so we have created a simple structure that suits that purpose.
Unfortunately, there are some cases where semi customization alone is insufficient. For this reason, we have a system in place that allows us to add (customize) graphics, floor plans, etc., to meet customer needs. However, in those cases, engineers must build the system manually, which is costly and time-consuming, and that negates the advantages of semi customizable products. Incidentally, our Semi-Custom BMS is currently available in Europe and North America. North American customers often customize parts of the system, whereas European customers are generally satisfied with semi customization as it is.
Expected and Better-than-Expected Results: Advantages for Future Technology Succession
――How were the results for reducing engineering work hours? Did you uncover any unexpected benefits?
Masaki: In-house testing during the development phase showed that reductions in engineering efforts by 50% were possible. At actual worksites, we sometimes were unable to reduce work hours as much as expected, but at other times, we were able to achieve even greater reductions. Consequently, in terms of overall results, we were able to decrease on-site engineering work hours by 50%, as we had originally intended.
Narikiyo: The benefits go beyond just reducing work hours. Templates and auto-links eliminate errors, reducing trial operation time, and ultimately improving BMS quality. Also, fully customizable BMSs tend to require higher training costs for on-site engineers.
Conversely, the Semi-Custom BMS does not require the same level of skill as a fully customizable BMS, leading to lower training costs. Another major benefit is that skills are no longer dependent on individuals, making it easier to pass them on in the future.
Reducing Work Hours for Entire Process by 50% and Finding People Who Are Unafraid to Venture Overseas
――How is the Semi-Custom BMS continuing to evolve?
Tsubouchi: While engineering work hours were successfully reduced, there are still many things that must be improved. Within the three processes of design, engineering, and trial operation, we were only able to reduce work hours for engineering. Yes, we reduced the work hours by 50%, but when you consider the entire process overall, the reduction is only between 20% to 30%. That fact motivates us to continue development even further until we reach our goal of reducing work hours by 50% across the board. For example, there are other tasks in trial operations where we can expect to reduce work through automation, such as creating test reports.
Narikiyo: On the other hand, some functions inevitably become limited due to the standardization to reduce work hours. Our sales representatives have told us that customers are requesting specifications that can only be realized through customization, so we will expand the range of areas that can be built through semi customization. We also plan to increase the scale of buildings that we can accommodate.
The current BMS system collects information from each device and performs centralized monitoring and control. However, in the future, AI and machine learning may enable each device to exchange information with each other and operate autonomously. This potential is what makes our Semi-Custom BMS so appealing.
Currently, the Semi-Custom BMS is available only in Europe and North America, but we plan to expand sales in the future to Asia and Oceania, including Japan and China.
――Tell us about how you feel engaging with the customer in product development.
Narikiyo: When our main focus was "selling products," we were focused on wholesalers and retailers rather than the customers who actually use our products. However, when selling services, development requires that you sincerely engage on-site with the customers. While that places a great deal of responsibility on us, it also makes our job even more rewarding.
――Do you have a message for future colleagues?
Tsubouchi: While engineering work hours were successfully reduced, there are still many things that must be improved. Within the three processes of design, engineering, and trial operation, we were only able to reduce work hours for engineering. Yes, we reduced the work hours by 50%, but when you consider the entire process overall, the reduction is only between 20% to 30%. That fact motivates us to continue development even further until we reach our goal of reducing work hours by 50% across the board. For example, there are other tasks in trial operations where we can expect to reduce work through automation, such as creating test reports.
Narikiyo: On the other hand, some functions inevitably become limited due to the standardization to reduce work hours. Our sales representatives have told us that customers are requesting specifications that can only be realized through customization, so we will expand the range of areas that can be built through semi customization. We also plan to increase the scale of buildings that we can accommodate.
The current BMS system collects information from each device and performs centralized monitoring and control. However, in the future, AI and machine learning may enable each device to exchange information with each other and operate autonomously. This potential is what makes our Semi-Custom BMS so appealing.
Currently, the Semi-Custom BMS is available only in Europe and North America, but we plan to expand sales in the future to Asia and Oceania, including Japan and China.
――Tell us about how you feel engaging with the customer in product development.
Narikiyo: When our main focus was "selling products," we were focused on wholesalers and retailers rather than the customers who actually use our products. However, when selling services, development requires that you sincerely engage on-site with the customers. While that places a great deal of responsibility on us, it also makes our job even more rewarding.
――Do you have a message for future colleagues?
Narikiyo: Even as Daikin is changing course to a business model focused on selling experiences, we will continue to operate as a business focused on selling products. I believe that the opportunity to experience both of these development types is a unique characteristic of Daikin. Likewise, development doesn't necessarily mean staying secluded in an office. A certain level of self-assertiveness is also required, such as proactively going on-site and talking with engineers.
Tsubouchi: At Daikin, engineers pursue careers that also allow them to gain extensive international experience. Because we develop products globally, I hope to work with people who are looking beyond Japan and are not afraid of venturing out into the world. Because Daikin is a latecomer to the BMS field, we are not constrained by limitations such as compatibility with existing BMS. This allows us to develop with a relatively free and open mind.
Masaki: Once you join the company and become somewhat good at your job, you may begin to see what you really want to do. At Daikin, we are involved in a wide range of activities, from developing air conditioning equipment to solutions like BMS, so I'm sure anyone can find something that he or she would like to do. I look forward to working with people who have a strong challenging spirit to develop products that will benefit our customers.
※Information and profiles are current at the time of the interview.
Akira Tsubouchi
Technology and Innovation Center, Senior Engineer
Joined the company: December 1, 2018
Hometown: Mie Prefecture
Technology responsible for: BMS and instrumentation
I want to continue taking on challenges without fear of failure.
Technology and Innovation Center, Senior Engineer
Joined the company: December 1, 2018
Hometown: Mie Prefecture
Technology responsible for: BMS and instrumentation
I want to continue taking on challenges without fear of failure.
Yasutaka Narikiyo
Technology and Innovation Center
Joined the company: October 1, 2010
Hometown: Osaka Prefecture
Technology responsible for: BMS, instrumentation, energy savings, and other types of technical planning
I want to continue taking on new challenges on a global stage.
Technology and Innovation Center
Joined the company: October 1, 2010
Hometown: Osaka Prefecture
Technology responsible for: BMS, instrumentation, energy savings, and other types of technical planning
I want to continue taking on new challenges on a global stage.
Shinsui Masaki
Technology and Innovation Center
Joined the company: April 1, 2019
Hometown: Hiroshima Prefecture
Technology responsible for: BMS and instrumentation
I plan to work even harder toward developing sustainable BMS solutions through technological innovations and improvements in reliability.
Technology and Innovation Center
Joined the company: April 1, 2019
Hometown: Hiroshima Prefecture
Technology responsible for: BMS and instrumentation
I plan to work even harder toward developing sustainable BMS solutions through technological innovations and improvements in reliability.
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