Brand and Design Thinking Innovation: Using DSM as a...

www.esource.com February 2017

Brand and Design Thinking Innovation: Using DSM as a Springboard

AESP Conference

Bill LeBlanc

Chief Instigation Officer

© 2017 E Source | www.esource.com 2

How do utilities gain relevance and

brand strength in consumers’ minds

despite the fact that electricity is in

the background of their lives?


Where the Brand Lives: In the Mind of the Customer

3


Source: http://ourenergyllc.com/help-tools


Audience Question

Name a brand that has failed

or heavily degraded in the

recent past.


1

2

3

Current Program Design and Marketing Strategy TYPICAL METHOD

Load-shape goal /

cost-cutting goal

Target customers

Sell and bribe


1

2

3

Target customers

Incorporate

attractive attributes

Blend in

utility goals

Fundamental Shift in Program Design and Marketing Strategy CUSTOMER-FIRST METHOD

“Only on the hottest days”


“Your demand-side management

programs are a customer

experience and branding gift

from regulators.” —Bill LeBlanc, Chief Instigation Agent,

E Source (September 12, 2016)


DSM as the Perfect Innovation and Product/Service Catalyst

DSM

Planning

Marketing

Product development Implementation

Consumer behavior


DSM as the Perfect Innovation and Product/Service Catalyst

DSM

Solar

Low income

Electric vehicles

Revenue- generating products

Connected home


Industries Tend to Have Nondifferentiated Business Models

Hotels (branded levels of service/luxury/economy)

Taxis (roaming or on-call cars with set tariffs)

Rental car companies (reservations, service offices)

Home loans (banks, lenders, amortization schedules, 30- or 15-year loans)

Electricity (central stations, cost-plus pricing)


Product Development Open Spaces

“_________ as a service”

FLASH INNOVATION: Think of as many logical “as-a-

service” offerings a utility would be positioned to provide

“… as a service (aaS) is driving growth and

market change”


Product Development Open Spot

“_________ as a service”

Solar

Efficiency

Productivity

Reliability

Autonomy

Rate optimization


Design Thinking: Discovering New

Solutions to Old—and

New—Problems


Innovation Doesn’t Come Easily to Many Industries and Products

Courtesy: iStock Courtesy: iStock

Source: Wikipedia


—David Kelley

IDEO

Deep empathy for people

makes our observations

powerful sources of

inspiration. Being human-

centered is at the core of

our innovation process.”


We’ve washed other

people’s clothes by hand in

their sinks, stayed as guests

in housing projects, stood

beside surgeons in operating

rooms, and calmed agitated

passengers in airport

security lines—all to build

empathy.” —David Kelley

IDEO


Human-Centered Design

Source: ZD Net


The Design-Thinking Process

Inspiration Ideation Implementation

Understand Observe POV Ideate Prototype Test Storytelling Pilot Business

model


The Design-Thinking Process

Understand Observe Define

POV Ideate Prototype Test


Three Shortcuts to Customer Empathy

Try

Immersion:

Immerse yourself

in the experience

of others

Look

Observation:

Observe what

people do

Ask

Engagement:

Capture what

people say

they do


Have You Heard These Phrases?

“We tried that x years ago and it didn’t work.”

“That wouldn’t get approved by y.”

“There are too many hurdles to jump over.”

These are all

“why we can’t” statements.


Design Thinking Uses …

Point of

View

“How might we …” statements

Best of PowerWalking: https://www.youtube.com/watch?v=dff8qAK1vcI


Discovery and Insight by Looking at Extreme Users

Courtesy: http://weunleash.co/blog/2015/01/22/extreme-user-research-the-case-of-nintendos-wii/

Non-users Pros

Extreme

users

Extreme

users

Main target customers


Research into Extreme Users and Outliers Can Reveal New Solutions

Researchers:

Found a woman who

was really stretching to

save

Watched her actions:

balancing her

checkbook

Designed a whole

program around that

INSPIRATION

Bank of America:

Design Discovery

Source: Bank of America


Smart Meter Rollout


Discoveries Come from Unexpected Places

From super efficiency + solar guy: “Then I

walk outside, every evening, all year, to see

how much energy I used today and how

much solar I got.”

[Unstated] point of view: “I wish it was much

easier for me to know what my energy use

is.”

Crazy solution idea from marketer who knows

nothing about meters: “Let’s put the meter

inside!”


Something Simple … Yet Necessary and Powerful

Smart meter

rollout

Choice: visible

or invisible?

Choice: new

or traditional?

Utility’s or

customer’s?

Yello Sparzähler online


Source: http://99percentinvisible.org/article/least-resistance-desire-paths-can-lead-better-design


Research into “Work-Arounds” May Help Discover New Solutions

www.ideo.com

Courtesy: iStock


Source: IDEO


Source: Amazon




experience and branding gift from

regulators.”

—Bill LeBlanc, Chief Instigation Agent,

E Source (February 13, 2017)




from regulators.” —Bill LeBlanc, Chief Instigation Agent,

E Source (February 13, 2017)




from regulators.”

Remember This Quote?


Design Thinking: Using Customer Empathy

Issue:

Boulder County/City Energy audit/

whole-house program has an

8 percent conversion rate to investment in energy upgrades

Objective:

To increase conversion

rates and investment

in upgrades

www.energysmartyes.com


POLL

Generally, how is the customer experience

with DSM programs?

a. Excellent

b. Good

c. So-so/spotty

d. Frustrating


Barriers: What They Said They Were

First

cost

Lack of

knowledge

Contractors

Technology

confusion


Barriers: What They Actually Were

Confidence

Trust

Easy to

drop out

No penalty

for contin-

uing the

status quo


Point of View!!

“How might we help Jenny and her family be

more efficient, understanding that she’s very

busy and needs help through the journey?”

ww

w.e

nerg

ysm

art

yes.c

om


New Service Design

Introducing the EnergySmart Advisor

Independent (overcomes wariness of

contractors)

Knowledgeable confidant

Cuts through the paperwork and rules

Doesn’t give up


Did It Work? It Sure Did

Conversion rate to investment went from

8% to more than 50%

But: It’s expensive

So: Give up? No

Redesign: Phone Advisor,

Virtual Advisor, Email Advisor

What Design Thinking Provides….

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2

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5

DSM

Empathetic perspective, customer’s viewpoint

Cross-functional design process

“Edge” discoveries of problems

Rapid prototyping, fail fast

Start encouraging an innovation culture


Bill LeBlanc

Chief Instigation Agent, E Source

303-345-9142 [email protected]

For More Information

CONTACT US

1-800-ESOURCE (1-800-376-8723)

[email protected]

www.esource.com

mailto:[email protected]

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