who will own the smart home?
TRANSCRIPT
PowerPoint-Prsentation
Who will own the Smart Home?Dr. Holger Schmidt FOCUS Magazine Netzoekonom.de1
Is There a Demand for Digital Smart Home/ Energy Saving products? 2
Importance of Home Energy ServicesHow important are services allowing you to manage selected energy settings in your house, e.g. change heating/AC levels via smartphone/tablet at home or when you are away. (Answers in percent, 1504 respondents)Source: Accenture Spring 2014 3
What Customers expect from Energy Provider?Along with a smart meter, PercentSource: Accenture, Survey4
Willingness to Pay for Home Energy ServicesRespondents who consider Home Energy Services as important or very important. 562 Respondents, Euro per MonthSource: Accenture Spring 2014 5
6The Techs Are Entering the Smart Home Market
The Heat is on for Hardware
Category killer in software markets are invincible.
VCs think: Internet of Things is the next big thing.
Nest acquisition by Google was the starting point
Its easier for tech companies to enter marktes with non-innovative incumbents as to compete against other tech firms. Much venture capital is flowing into finance und energy.
Smartphones penetration is high. The infrastructure to control hardware is available.7
Google: Money for Landgrabbing are Earnings 2001 2003 2005 2007 2009 2011 2013Net Income and Strategic Acquisitions/InvestmentsSource: Google
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How Tech Firms intend to disrupt traditional sectorsSoftware-InnovationConvenienceSaving MoneySave Time19942010Better Products to give customers:ConvenienceMore MoneyMore TimeBetter DesignHardware-Innovation** Apple started 2001. +9
Saving Money, Convenience, More TimeSoftware related disruptionsCustomerFaster Loans, Easy Access (Choices, Time) Convenience, Saving TimeSaving Money (Free SMS), More OptionsTime Saving, ConvenienceConvenience, Saving Money, Saving TimeTravelBanksTelcosTaxiCommerceEducation10
Convenience (More Functions)Hardware related disruptionsCustomerDesign, Convenience, More ChoiceSave Money, More Comfort, DesignSaving TimeConvenience (More Functions)Save Money, Save TimeWatchesMusicCarsClothingLogisticsSmart Home- Energy11
Who is Coming?
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Smart Home Wild West
Nest is comingSource: The Verge The UK launch is only the start and the company will continue to aggressively expand throughout Europe.Matt Rogers, Nest Co-founder
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Nest-Approach in UKCooperation with RWE npower
Offer: A bundle of a Nest Thermostat and a long-term electricity contract
Good opportunity for npower to differentiate from large competitors like British Gas
Risk for npower: Become a replaceable provider as soon asNest is a household name.
dump pipe doom15
Apple is coming
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Apple HomeKit
Good NightSmart Home Devices
Energy-Supplier17
Tado is already there
>1000 Installations per month18 month on the marketRaising fresh money right now
Strategy:Nice ProductRegular digital customer contact
In a few years, customers will have forgotten the name of their energy supplier
Christian Deilmann, CEO Tado18
Tado Cooling (Kickstarter Project)Source: Kickstarter
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Neurio (Kickstarter Project)
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Is the Energy Industry prepared? 21
Unique Users of Energy Websites GermanyThousandsQuelle: Comscore
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Users of Energy Websites in EuropeSource: Comscore
Unique Visitors (Millions), April 201423
Downloads of Energy /Smart Home AppsSource: Priori DataAll-Time Downloads, selected AppsVery high Marketing Expenditures24
Monthly Active Users of Energy /Smart Home AppsSource: Priori DataApril 9 May 9 2014, selected Apps25
Strategies for Energy Incumbents?26
Preferred Provider of Home Energy ServicesRespondents who consider Home Energy Services as important or very important. 562 Respondents in Germany, Percent, Source: Accenture Spring 2014 27
Preferred Provider of Home Energy ServicesRespondents who consider Home Energy Services as important or very important. 562 Respondents in Germany, Percent, Age groupsSource: Accenture Spring 2014 28
Digital To Do List:29
Build Products for the Digital Age30
Design matters
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Build Customer Relationships for the Digital Age32
Digital To Dos:Content-Marketingto boost traffic and to improve your reputation(Look at NewsCred)Learn about customers behaviour to offer good tailor-made products(Look at Opower)Listen to your customers. Learn. Interact.But: Social Media is a tool for communication and relationship management, not for sales. 33
Examples to boost customer loyalty by buildung regular digital relationships
Submit gas and electricity meter readingsShow bills and account detailsBook an appointment with an engineerProvide customers with advice on consumptionProvide customers with targeted offers. (Give them a better tariff)Incentivising customers to reduce consumption in high demand periodsGamification for energy saving. Be the energy provider for the smartphone generationPossibility to share billsOffer relocation services34
Organize Your Companies for the digital Age35
Organisational Structure
Source: Alex Pentland SociaL PhysicsPersonal Face-to-Face CommunicationElectronic Communication (E-Mail, Chat...)Problem36
Organisational StructureSource: Alex Pentland SociaL Physics
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Team StructureSource: Alex Pentland SociaL Physics
Asymmetric Communication PatternsSymmetric Communication PatternsUnproductive TeamProductive Team38
Questions?
39Contact:
Dr. Holger [email protected]/HolgerSchmidtwww.netzoekonom.de