IoT Customer Centric Smart Applications offered by Utility Companies within the UK

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July 2016

Internet of ThingsWhat is IoT?

Connecting any device with an on and off switch to the Internet (and/or to each other). This includes everything from mobile, coffee makers, washing machines, headphones, lamps, wearable devices and almost anything else you can think of.

•Devices•Equipments•Data

Smart

•White goods•Brown goods•Apparels •Pets

Home•GPS / Fuel•Safety Equipment•Roadside equipment

Cars

•Wearables•Smart-devices•Vehicles

Outdoors•Building •Factory •Infrastructure

Office

Device Network Cloud Application

Internet of ThingsGrowth by 2020s

Utility

1.9 billion connected home devices by 2019, bringing in $490 billion in revenue (CMO)

Industry

The value of IoT technology in manufacturing is estimated to be $2.3 trillion by 2025 (Intel)

Infrastructure

90% of cars connected to the internet by 2020 (CMO)

Retail

26 billion smart retail units by 2020 (Gartner)

Healthcare

the value of IoT technology in healthcare is estimated to be $2.5 trillion by 2025 (Intel)

Internet of Things UK IoT Growth

17%21%

UK

France

ItalyGermany

Rest of Europe 62%

In Western Europe Internet of Things (IoT) will grow at 21.8% compound annual growth rate (CAGR) from $113.5 billion in 2015 to nearly $250 billion in 2019, representing 16% of the Worldwide IoT Spending in 2015 (19% in 2019).

UKUtility

Industry

Infrastructure

RetailHealth

Source: https://www.idc.com/getdoc.jsp?containerId=prEMEA40958015

Spend in Europe

Internet of ThingsIoT within Utilities

Utility companies; from generation through to transmission, distribution and retail will invest an estimated £151 billion by 2018 globally.

Source: http://energyconferencenetwork.com/iot-for-utilities/ https://www.sap.com/bin/sapcom/ko_kr/downloadasset.2014-10-oct-28-03.ceo-perspective-the-internet-of-things-for-utilities-pdf.html

Internet of ThingsBig 6 UK Energy Companies

British Gas15 million

EDF Energy5.6 million

E.ON UK5.3million

npower6.5 million

Scottish P.5.3million

SSE9.1 million

Source: https://www.ukpower.co.uk/the-big-six-energy-companies

IoT spend is mainly distributed amongst the the big 6 in the UK with varied customer numbers

Internet of ThingsIoT within Utilities

Source: http://energyconferencenetwork.com/iot-for-utilities/ https://www.sap.com/bin/sapcom/ko_kr/downloadasset.2014-10-oct-28-03.ceo-perspective-the-internet-of-things-for-utilities-pdf.html

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Intelligent Assets

• Physical assets are

connecting to other

machines, systems, and

people. And becoming more

intelligent via embedded

software and analytics

Industrial Internet of

Things • OT (Operation Technology)

and IT (Information

Technology) convergence to

the Industrial Internet of

Things (IIoT) 3D Visualization and

Augmented Reality

•Operators see tem

peratures,

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•work orders. In the

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Customer Centric Industry

Centric

Internet of Things Utility Companies IoT Approach

Long term Strategy

Entry level Strategy

Smarthome Ecosystem

Building a Startup Ecosystem

In-house Development

Team

Installing Smart meters

Outsource Development

Utility companies strategy for IoT can be divided into two: Long term and Entry level

Internet of ThingsCompany Specific Approach

Smartmeters

Outsource Development

•SSE•Scottish Power

In-house Development EDF

Startup or Customer Ecosystem

•British Gas•Npower •E.ON

•All ‘Big 6’

British Gas is at the top of the pile with it’s All In IoT strategy. While SSE and Scottish Power are still exploring the potential.

Customer Centric Smart Applications

Internet of ThingsSmart Meters

Energy Companies

British Gas

EDF

E.ON

Others

Install 30 million Smartmeters 2020

A smart meter is an electronic device that records consumption of electric energy and communicates that information to the utility for monitoring and billing. The official national smart meter roll-out across England, Wales and Scotland will start in April 2016 and finish in 2020. But the big 6 have already started to install smart meters even though they don't meet the final smart meter specifications.

Internet of ThingsOutsource Development

Scottish PowerUsing the Intamac platform and working with a hardware manufacturer, ScottishPower launched the Unifi proposition which helped their customers save money on their energy bills and allowed them to control devices remotely via smart plugs.

SSESSE has a tie-up with Tado, a German maker of smart thermostats that is the leading brand on the Continent. SSE said it will offer customers free installation of the £200 Tado device to encourage take-up.

Source: http://www.telegraph.co.uk/finance/11403096/Energy-giant-SSE-enters-smart-thermostat-battle-with-Tado.html http://www2.intamac.com/case-studies/scottish-power.html

Internet of ThingsIn-house Development

npowernpower are providing secure connectivity through a Vodafone Global SIM to install a smart meter anywhere in Britain. The smart meter can send a monthly or daily reading and 48 half-hourly profile readings where consent is given. All updates, along with a map of the daily usage, can be seen via the customers’ In Home Display.

EDFEDF Energy is currently installing smart meters region by region, helping them test and refine the installation experience for their customers. They expect to increase the number of installations in the second half of 2016, in line with industry readiness.

Source: https://www.edfenergy.com/for-home/energy-efficiency/smart-meters http://www.vodafone.com/business/m2m/case-study/npower-smart-meters-shine-a-light-on-energy-use

Internet of ThingsStartup Ecosystem

A startup ecosystem is formed by people, startups in their various stages and various types of organizations in a location (physical and/or virtual), interacting as a system to create new startup companies. Utility company’s are focusing on Agile and Lead Methodology to develop this ecosystem.

NpowerRWE npower is running an Internet of Things incubator within Innovation Birmingham’s £8m iCentrum® building

e.one.on’s German branch launched proprietary LoRa™ network technology. Alongside, digimondo, a Hamburg-based startup nurtured as part of E.ON’s :agile innovation program, has begun setting up its low-energy, long-range communications network in cities across Germany. Conventional networks like WLAN, Bluetooth, and LTE often lack sufficient range and solid-objection penetration or are simply too expensive for many small applications. Enabling smart devices to talk to one another across distances of several kilometers requires a system that is significantly less expensive to set up and operate.

Source: https://www.innovationbham.com/2015/11/13/rwe-npower-to-run-internet-of-things-incubator-within-innovation-birminghams-8m-icentrum-building/ http://www.eon.com/en/media/news/press-releases/2016/2/17/eons-digimondo-startup-helps-cities-join-the-internet-of-things.html

Internet of ThingsBritish Gas’s Connected Home

Hive is British Gas’s Lean Startup to control customer’s home.

Connected HomeConnected devices like Hive drives back to its parent company, Connected Home, an explosion of data. The business unit was launched by British Gas in 2012 to operate along lean, start-up principles. Connected Home is already processing 40TBs of static data across 30 large nodes, according to head of data engineering Josep Casals. This includes 30,000 messages a second on the publish-subscribe message broker Kafka, with the main source of these reads and writes coming from Hive.

Internet of Things British Gas’s Proposition

Customer Ecosystem

Hive smart lights, plugs, heating and sensors

Smart Meters

Protection

Home Services

Gas and Electricity

Internet of ThingsSummary

New Products

Increase Loyalty

Upsell

Collect Data

Better Service

• Via IoT Utility providers can offer new services at a later date and increase bottom line

• By offering custom IoT products utility companies can increase retention

• Selling services alongside gas and electric increases profit margins and opportunities to cross-sell

• Collect data on usage, waste, consumption and more, for analysis and improvement

• Offer customers a high quality integrated service, which reflects the advancements in technology

Advantages of integrating IoT for utility companies

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