consumers, start-ups & the future of utilities
TRANSCRIPT
Consumers, Start-Ups & The Future of Utilities
Pat Tindale, CEO and FounderJanuary 2105
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agenda
Part I The odd couple – Start-Ups & Utilties
Part II The future of the Utility business model
the AlertMe story
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An Internet of Things pioneer
2010B2C hardware
VC funded200 end customers in
UK
2015B2B software
Acquired by British Gas (US$100m)
>3m end customers in UK /US /NL
UX by Hive/Tech by AlertMe
began with a ‘Consumer Panel’
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Noise sensor
Camera ThermostatReal time energy
monitoring
LampSmart plug
Connected products in test 2009/10
Button
3,000,000+ homes using derivative products today
we grew with our customers
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A journey for the customer & the product!
2010
AlertMe Home security
monitoring
2011
EnergySmartHome energy
monitoring
2012
HiveSmart
thermostats
2013
MyEnergyPersonal energy
analytics
2014
Omnia cloud-based IoT platform
success through partnership
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Playing to each other’s strengths
‘Smart Heating’ 2012 ‘Hive’ 2015
UX & thermostat by Hive/Tech by AlertMeEverything by AlertMe
lessons learned
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For Utilities• skunk works vs VC type investment• separate ‘digital’ business unit & C(EO) sponsor• develop a template for partner on-boarding
For Start-ups• product, product, product• your company, your roadmap• understand your role in the eco-system & optimise accordingly
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agenda
Part I The odd couple – Start-Ups & Utilties
Part II The future of the Utility business model
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a revolution in energy supply …
1880’s 2010’s
centralising power generation :new ‘central stations’ aggregated
demand & supply
de-centralising power generation :connectivity offers network efficiencies
without co-location
Pearl St Station, NY
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… but not the business model
CostTransparency & simplicityControlEnvironment
Customer bug-bears 3 phase product evolution to solve
DigitalHard-
ware in loop
Soft-ware in
loop
What was liberating in 1882 is showing it’s age today
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pathfinders
Digital
Simple tariffs & switchLow overhead = cheaper
‘Agent’ positioning
P2P community energy plan
Sharing the savings
Hardware in loop
Pay as you Use solar plans
Giving you control
Software in loop
Solving customer pain points
the ‘New Utility’ model
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The New Utility
Hardware
Financing
Grid distribution & supply
Alternate supply
Install & maintain
P2P software
SAAS back-end
• Product • Marketing
• Digital UX • Commercial
partner eco-systemheterogeneous customer base
Gravity shift – the future is about Service not Supply
end
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As the energy value chain becomes more complex the opportunity is to make it simpler for consumers
Make it cheaper by harnessing the zero marginal cost of solar & the connectivity of distributed assets
Service not Supply