World Water Congress 2015 - Impact of ICT on water utility business model

@WATERNOMICS_EU www.waternomics.eu

Project co-funded by the European Commission within the 7th Framework Program (Grant Agreement No. 619660)

THE IMPACT OF ADOPTING A WATER INFORMATION PLATFORM ON A UTILITIES BUSINESS MODEL

SANDER SMIT

www.bm-change.nu

@WATERNOMICS_EU www.waternomics.eu2

WATERNOMICS PROJECT

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▶ Timeline: February 2014 – January 2017▶ Consortium: 9 partners▶ Countries: 4▶ Pilots: 4▶ Part of the ICT4Water cluster▶ Co-funded by the European Commission

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WATERNOMICS PROJECT

Question: How can ICT help households, companies and cities manage water more efficient?

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Waternomics: Provide personalised and actionable information on water consumption and water availability

to individual households, companies and cities in an intuitive & effective manner at relevant time-scales for

decision making

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WATERNOMICS PROJECT

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@WATERNOMICS_EU www.waternomics.eu5

WATER INFORMATION PLATFORMS

up

port

S

erv

ices

Sou

rces

Ap

plic

ati

on

s

Water Analysis Model

Complex Events

Usage Model Water Dashboards

Entity Management

Service

Decision Support Systems

Lin

ked

W

ate

r D

ata

Data Catalog

Complex Event Processing

Engine

Prediction Search & Query

Com

mer

cial

Met

erin

g

City

Met

erin

g

Colle

ctio

n an

d

Catc

hmen

t Mgm

t

Met

eoro

logi

cal

House

hold

M

eter

ing

Adapter Adapter Adapter Adapter Adapter

▶ Applications

▶ Information Services

▶ Data linkage and analysis

▶ Sensor networks

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@WATERNOMICS_EU www.waternomics.eu6

REGION

WATER UTILITY BUSINESS MODEL

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VALUE PROPOSITION

PARTNERS CUSTOMER SEGMENTS

KEY RESOURCES

KEY ACTIVITIES

CHANNELS

RELATIONSHIP

COST STRUCTURE REVENUE STREAMS

WATER BILL

DOMESTIC

BUSINESS

PAY PER M3 or FLAT FEEFIXED COSTS:Network, staffing

VARIABLE COSTS:Energy, non-revenue water

GOVERNMENT(local, national, EU)

TECHNOLOGY PROVIDERS

NETWORKMANAGEMENT

METERING & BILLING

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REGION

IMPACT OF WATER INFORMATION PLATFORM

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VALUE PROPOSITION

PARTNERS CUSTOMER SEGMENTS

KEY RESOURCES

KEY ACTIVITIES

CHANNELS

RELATIONSHIP

COST STRUCTURE REVENUE STREAMS

WATER BILL

DOMESTIC

BUSINESS

PAY PER M3 or FLAT FEEFIXED COSTS:Network, staffing

VARIABLE COSTS:Energy, non-revenue water

GOVERNMENT(local, national, EU)

TECHNOLOGY PROVIDERS

NETWORKMANAGEMENT

METERING & BILLING

Network -> Smart network (smart meters, smart pipes, sensors,

databases)Staff: + data analysts

+ Data collection+ Data analysis

+ ICT providers

+ Costs for sensors and meters+ Costs for staffing- Decrease non-revenue water & energy- Lower investment in capacity expansion

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REGION

IMPACT OF WATER INFORMATION PLATFORM

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VALUE PROPOSITION

PARTNERS CUSTOMER SEGMENTS

KEY RESOURCES

KEY ACTIVITIES

CHANNELS

RELATIONSHIP

COST STRUCTURE REVENUE STREAMS

WATER BILL

DOMESTIC

BUSINESS

PAY PER M3 or FLAT FEEFIXED COSTS:Network, staffing

VARIABLE COSTS:Energy, non-revenue water

GOVERNMENT(local, national, EU)

TECHNOLOGY PROVIDERS

NETWORKMANAGEMENT

METERING & BILLING

INCREASED OPERATIONAL

EFFICIENCY

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REGION

IMPACT OF WATER INFORMATION PLATFORM

www.bm-change.nu

VALUE PROPOSITION

PARTNERS CUSTOMER SEGMENTS

KEY RESOURCES

KEY ACTIVITIES

CHANNELS

RELATIONSHIP

COST STRUCTURE REVENUE STREAMS

WATER BILL

DOMESTIC

BUSINESS

PAY PER M3 or FLAT FEEFIXED COSTS:Network, staffing

VARIABLE COSTS:Energy, non-revenue water

GOVERNMENT(local, national, EU)

TECHNOLOGY PROVIDERS

NETWORKMANAGEMENT

METERING & BILLING

No changes

+ Customer dialogue+ More customer

touch points No changes,except for new value added services

+ Enables flexible pricing schemes+ Revenues from new services+ Reputational gains- Increased awareness = less direct sales

INCREASED OPERATIONAL

EFFICIENCY

New services:- Consultancy- Water Data Analysis- Recommendation

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REGION

IMPACT OF WATER INFORMATION PLATFORM

www.bm-change.nu

VALUE PROPOSITION

PARTNERS CUSTOMER SEGMENTS

KEY RESOURCES

KEY ACTIVITIES

CHANNELS

RELATIONSHIP

COST STRUCTURE REVENUE STREAMS

WATER BILL

DOMESTIC

BUSINESS

PAY PER M3 or FLAT FEEFIXED COSTS:Network, staffing

VARIABLE COSTS:Energy, non-revenue water

GOVERNMENT(local, national, EU)

TECHNOLOGY PROVIDERS

NETWORKMANAGEMENT

METERING & BILLING

INCREASED OPERATIONAL

EFFICIENCY

IMPROVED SERVICE LEVELS

and/or

NEW VALUE ADDED SERVICES

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UNBUNDLING STRATEGY

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INFRASTRUCTURE MANAGEMENT

SERVICE INNOVATION

CUSTOMER RELATIONSHIP

water

water

technologyproviders

network maintenance

Installed customer

base

water network

operations & maintenance

TECHNOLOGY PROVIDERS

UNBUNDLED WATER UTILITY

WATER SERVICE PROVIDERS

new

products & services

water

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CONCLUSION

Adopting a Water Information Platform can drive:• Increased operational efficiency• New value added services and revenue streams

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But there is no “one size fits all”-solution

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THANK YOU

For more information: www.waternomics.eu | info@waternomics.eu | www.ict4water.eu

sander@bm-change.nu