smarter customers smuk jan 2014
TRANSCRIPT
SMARTER CUSTOMERS –SMART METERING AS AN ENABLER
Simon Harrison, Product, Innovation, Technology and TriallingManager, RWE npower Smart Programme
Setthescenefortheday
Whoaresmartcustomers?
Howistheworldchanging?
Whatrolecouldsmartmeteringplay?
Notgoingtoreviewchartsorresearch– thereareplentyofopportunitiestoengagewiththelatestviews
Provokebychallengingsomeoftheassumptionsandacceptedthinkinginthisspace
Notsureifthereareanswerstothesequestions,butI’dliketomeetthepeoplewhobelievetheyhavesome
Mostofthiscontentreflectsmyopinion,andcertainlyshouldn’tbetakenastheofficialRWEnpowerposition
smartcustomer (def):
1. erm,Acustomerwho’ssmart…?2. or,onewithsomesmartstuffintheirhome?
What do today’s smart customers look like?
They could be checking their energy bills...
Everyone uses energy – smart energy should be as accessible as all the other smart technologies
Ifwecan’tdefineasmartercustomerbyworkingoutwhotheyare,canweworkoutwhattheywant?
Smart Energy
Cost
Convenience
Confidence
Comfort
Nobody wants to spend more thanthey should, but it is not the #1 priorityfor all consumers
Cost
Using sensors and controls toautomate the unnecessarily repetitive
Convenience
Is my home safe, is it locked, is itsecure, who’s at home?
Confidence
Is my home warm (or cool)? Is it light?Turn my music on…
Comfort
Weallwantthesamethings– itistheproportionsthatvary
I want my smart home to give me more time
with my family
I’m a gadget snob, I like to
show off
Smart Energy
Cost
Convenience
Confidence
Comfort
Did I switch the iron off?
I don’t trust all this technology, especially
not in my homeI love this stuff, where
do I sign up for a hoverboard?
It’s all boys and their expensive toys, isn’t it?
I like the idea, but how much fiddling will I
have to do?
I don’t trust all this technology, especially
not in my homeI love this stuff, where do I sign up for a hoverboard?
It’s all boys and their expensive toys, isn’t it?
I like the idea, but how much fiddling will I have to do?
ManydifferentcustomerswillliveinthesamehouseWhoorwhatmakesitasmarthome?
I know I said that I didn’t want that gadget, but actually, now I’ve seen it, can I have it? And I’ve told my friends
about it too…
I’m over my 2 month old gadget, what else do you
have that’s new?
Thefutureishereandit’saccessibleandaffordable
Absolutely Pointless
Absolutely Brilliant
Weallknowsomeonewhostillusesthis,andsays– “allIneedaphonetobeisaphone”
Atthesametime,thereareplentyofuswaitingforourGoogleGlassesandthechancetobeTonyStark
Conclusion (or assumption) – people’s taste in smart home technology will be as individual as their taste in home design
smartcustomer (def):
1. Couldbeanyone,iseveryone.2.Hasrequirementsandexpectationsthatevolve.
3.Doesn’tknowthefuture.4.Isunique.
5.Isreadyforchange,expectsanddesireschange
Asmartcustomerisactuallythetechnologyuser– notthecommodityconsumerwe’veknownfordecades.
Thesameperson,butwithverydifferentdrivers
Theroleofsmartmetersinasmarthome
Smartmetersareintendedtobethe
foundationofthenewsmartgrid– providingenergyinsightandcontroltousersand
operators
Butaretheyreallytheheroesofthesmart
home?
2006 2014
Inthebeginning,smartmeterswerethekeytoourenergyfuture– isthisstillthecase8years,
andtoofewmeters,later?
2007 Smart Meter Design begins
2015 Mass Roll Out Begins
2020 50 million meter Roll Out Complete
Asignificantachievement– implementinganewnationalinfrastructuretoeveryhomeandbusiness
–improvingcustomerservice,energyoperationsandfacilitatingmaterialcostsavings
UtilityContext
2007 Smart Meter Design
2015 Mass Roll Out Begins
2020 50 million meter Roll Out Complete
2007 iPhone launch –smart phone <5%
2014 smart phone @75% in GB
2017 smart phone forecast over 80% in GB
2010 –ipad Launch – tablet at 0%
2014 –tablet adoption at 50%
2020 –forecasts unknown!
Howrelevantwillsmartmetersbetothecustomersof2020?Hasthemomentpassedbeforeithappened?
TechnologyContext
Theinstallationof50mmetersisamassive
undertakinginGB,andabiggereffortacrossEurope.Creatingjobs,improvingservice,
buildingoutenormousnetworks.
Butformostcustomers,thesmartmeter
experiencecouldbe…
Smartmetersessentiallydelivertheservicethat21st centurycustomersexpect.
Accuratebills,betterservice,instantfeedback.
ThenoveltyofanIHDdoesnotlastlong
Howmuchfurthercouldsmartmetertechnologydevelop?
Whatwillbefirstforthemajorityofcustomers– smartmetersorthesmarthome?Willweberetrofittingour
metersintoanexistingconnectedhome?
Whatmakesthesmartmetersspecial?Whatcantheirdataprovidethatothersensorscannot?Smartplugs(orcircuitsorsockets)cangivedetailedinsightthatmeterscannot
Whowillcustomerstrustwiththeirsmarthome,smartsensorsandsmartdata?Canweexpecttherighttobetheir
smartpartner?
Onceinstalled,themetersthemselveswillbecomeacommodityagain,oneoftheworkerbeesoftheenergyindustry,ratherthanthecentre ofattentiontheyhave
beenforthepastfewyears
But,providingtheyareaccessible,interoperableandstandardsbased,thedatasmartmetersprovidecansupportsomeveryinterestingpropositions
Energyusageandpricingdatahasakeyroletoplayinthesmarthomeofthefuture– butithastobeavailableand
reliable,smartcustomershavenopatience
CH
Smart Meters in a Smart Home Setting
Scope of Smart Programme
Scope of Smart Innovation
E GSmart Meters
DCC
IHD
Internet
LightHeat
WashClean
Chill SafeSecure
CookFun
CAD ADSL
1
1 The mandated smart architecture provides customers with aggregated information on energy – in real time in the home and at D+1 or later via web or apps
2
2 New smart products will enable Customers to interact with their energy use in a new way
The link to smart metering is not mandatory, but is the unique opportunity for Energy Retailers to own this space.
Insight
Control
Action
AutomaticOn
Demand
At device/circuit level
Rules based - Binary, Scheduled, Responsive
Hardware, Plugs, Sensors
Rules and actions applied to the controls
Savings, Comfort, Convenience, Trust
Outcomes for individuals
3
3
4
4
Products, Services and Partners to help customers understand and control their energy usage.
There is a risk of Customers providing their data to 3rd party service providersAnd an opportunity for npower to provide product and services to non-energy customers
5
5
Wherecanwego?
Areweallsecondguessingwhatcustomerswant?
Whatdoutilitieswant?Dowereallywanttoownthesmarthome?Areweequippedtodeliveragainstthecompetitioninthisspace?
Howdoweusethesmartdatatotellcustomersacompellingstory?Doesthatmakethemmoreorlessinclinedtotreatus
asthecommodityprovidersthatweare?
Thekeywillbefindingtheproductsandservicesadjacenttothecommoditythatengageourcustomersanddelivervalue
CONCLUSION…SUMMARY…InClosing
Issueheremightactuallybetheword‘smart’– itistooeasyalabeltoapplytoeverythingandisindangerof
becomingmeaningless
Smartmeteringisimportant,butneedstobepositionedcarefullyinabroaderstrategythatcoverssmartservices,homes,gridsandcities
Thespeakersthroughouttherestofthedayshouldhelptoprovidesomeinsightintotheroadahead…
