IBM Case Competition Slide Deck (Smart Meters)
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Transcript of IBM Case Competition Slide Deck (Smart Meters)
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Intro Solution Meters Marketing Conclusion
Key Issues
Consumer Habits
Implementation Cost
Payment Inaccuracy
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Objectives
Low Cost Easy
Implementation Customer Interaction
Intro Solution Meters Marketing Conclusion
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Two-Step Plan
Smart Meter Customer Engagement
Intro Solution Meters Marketing Conclusion
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Smart Meter
Utility X Home
CENTRON Meter
Intro Solution Meters Marketing Conclusion
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Utility Benefits
Efficient Electricity Distribution Inefficient Electricity Distribution
Intro Solution Meters Marketing Conclusion
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Customer Benefits
Efficient Electricity Usage Inefficient Electricity Usage
Intro Solution Meters Marketing Conclusion
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Marketing Challenges
No Customer Left Behind
Historically Poor Relationships
Campaign that Divide Customer
Customer Illiteracy
Intro Solution Meters Marketing Conclusion
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Marketing Solutions
Tech Enthusiast (10%)
Value Buyer (20%)
Traditional Consumer
(10%)
Cost Conscious (41%)
Green Consumer (19%)
Value Bargain Premium
Eco
- A
war
enes
s
Intro Solution Meters Marketing Conclusion
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Marketing Solutions
Tech Enthusiast (10%)
Value Buyer (20%)
Traditional Consumer
(10%)
Cost Conscious (41%)
Green Consumer (19%)
Value Bargain Premium
Eco
- A
war
enes
s
Intro Solution Meters Marketing Conclusion
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emPowering America
79
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Agree
Willing to Change Energy Consumption if it Affects America's Energy Challenges
88
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agree
Need to Spend Money on Energy Infrastructure
88
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agree
Motivated to use a Smart Meter to Make a Difference for Future Generations
Intro Solution Meters Marketing Conclusion
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Marketing Solutions
Tech Enthusiast (10%)
Value Buyer (20%)
Traditional Consumer
(10%)
Cost Conscious (41%)
Green Consumer (19%)
Value Bargain Premium
Eco
- A
war
enes
s
Intro Solution Meters Marketing Conclusion
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Q1# Q2#
2015 Month 1 Month 2 Month 3 Month 4 - 18 2016
Technicians Install Smart Units Analyze Data & Savings
Week 1 Week 2 Week 3 Week 4
Notification of Pilot Member Pilot Response
Pilot Timeline
Intro Solution Meters Marketing Conclusion
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Conclusion
Utility Revenue
Customer Savings
Easy Implementation
Bear Case of $120k in Revenue Over 4 Years
Bear Case of $1.8M in Pilot Savings
Customer Engagement
3 Month Implementation Plan
Over 80% Engagement Expected
Intro Solution Meters Marketing Conclusion
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Appendix A Smart#Meter#
Unit%Cost% %$35.00%%Bulk%Discount% 10%%
Base%Units%Purchased% %10,000.00%%Safety%Units% %500.00%%Total% %10,500.00%%
Discounted%Cost%Per%Unit% %$31.50%%Total% %$330,750.00%%
At#Home#Display#Rainforest+EMU/2+Energy++
Unit%Cost% %$60.00%%Bulk%Discount% 20%%
Base%Units%Purchased% %10,000.00%%Safety%Units% %50.00%%Total% %10,050.00%%
Discounted%Cost%Per%Unit% %$48.00%%Total% %$482,400.00%%
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Appendix B Specialized#Technician#
Technician%Daily% %$200.00%%Unit#Install#Time#Frame# Technician%Hourly% %$25.00%%
Installed%Per%Tech%Per%Day% 14% Misc.%Daily%Costs% %$40.00%%Technicians%Per%Day% 20% Technician%Cost%Per%Unit% %$14.29%%Units%Installed%Per%Day% 280% Daily%Cost%Per%Unit% %$0.35%%Days%Till%CompleLon% 37% Total%Install%Cost%Per%Unit% %$14.64%%Weeks%Till%CompleLon% 7.4%
Total%Units%Installed% 10360% Misc.#Daily#Costs#Gas%Per%Day% %$30.00%%
Training# Daily%Fixed%Cost%(Truck/%Wear%and%Tear)% %$10.00%%Supplies% %$1,000.00%%(20%meters)% Total% %$40.00%%Trainers% %$600.00%%per%day/%2%trainers%300%a%day%Technicians%Daily%Wage% %$200.00%% Net#Cost#Per#Smart#Meter#Technicians%Trained% 20% Unit%Cost% %$31.50%%Technician%Total%Training%Cost%Daily% %$4,000.00%% Install%Cost%Per%Unit% %$14.64%%
Daily%Labor%Cost% %$4,600.00%%4%week%X%5%days%a%week% Total% %$46.14%%
Month%Total%Labor%Cost% %$92,000.00%%Total#Cost# #$93,000.00##
Overall#Cost#Total%Install%Cost%(Smart%Meter)% %$477,966.00%%Total%Display%Cost% %$482,400.00%%Total%Training%Cost% %$93,000.00%%
%$1,053,366.00%%
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Appendix C
Electriciy#Usage# Electricity#Usage# Electricity#Usage# Electricity#Usage#Standard+Meter+ Smart+Meter+ Smart+Meter+and+Display+ Smart+Meter,+Display+and+Applica
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Appendix C Connect#and#Disconnect#Cost#
Standard+Meter+ Smart+Meter+Customer%Base% %10,000.00%% Customer%Base% %10,000.00%%Percentage%that%need%service% 20%% Percentage%that%need%service% 20%%Cost%per%service%charge% %$25.00%% Cost%Per%Srevice%Charge% %$1.00%%Total%Cost% %$50,000.00%% Total%Cost% %$2,000.00%%
Savings% %$48,000.00%%
Monthly#Fee#Revenue#Customer%Base% 10,000%Percentage%that%change%habits% 90%%Customers%that%change%habits% %9,000%%Average%Bill% %$110.00%%Average%Savings% 13%%Average%Bill%Savings% %$14.30%%Average%charge% %$3.50%%Total%Prot%per%month% %$31,500.00%%Billing%periods% 18%Total%Revenue%per%two%years% %$567,000.00%%
Monthly#Fee#Revenue#Customer%Base% 10,000%Percentage%that%change%habits% 95%%Customers%that%change%habits% %9,500%%Average%Bill% %$110.00%%Average%Savings% 13%%Average%Bill%Savings% %$14.30%%Average%charge% %$3.00%%Total%Prot%per%month% %$28,500.00%%Billing%periods% 18%Total%Revenue%per%two%years% %$513,000.00%%Total%Revenue%per%four%years% %$1,080,000.00%%
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Appendix D Cost#Savings#Analysis##
#Smart#Meter#ImplementaMon#/#MarkeMng#Overall%Cost%of%InstallaLon% %$1,053,366.00%%MarkeLng%Budget% %$70,000.00%%IBM%% %$200,000.00%%Total#Cost## %$1,323,366.00%%
Cost#Savings##Connect/%Disconnect%Program%Cost%Saving% %$48,000.00%%Meter%Reading%Cost%Saving% %$216,000.00%%Outage%Avoidance%Costs%Saving% %$100,000.00%%Revenue%Generated%% %$1,080,000.00%%Total#Savings#and#Revenue# %$1,444,000.00%%
Dierence# %$120,634.00%%
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Appendix E
Electricity#Usage# Savers#Smart+Meter,+Display+and+Applica
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Appendix F
#Value#of#outage#avoidance:##
%Customer's%Value%of%Lost%Load:%%%Customer%per%Year:%%
%Hours:%% 5%%Average%Cost/kWh%% $0.10%%%Value%of%Lost%Load%%% 0.5%%Annual%Demand%% 4125.86%
%Power%Outages%Avoided%with%Smart%Meters%% 99%%%Total%Value%of%Outage%Avoidance%%% %20.84%%
Total%Value%of%Outage%Avoidance%for%All%Customers% %208,355.93%%
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Appendix G Cost%Saving%Benets:%
Metering%Costs:%Cost%of%InspecLon%per%Technician:%
Total%Number%of%Customers% %10,000.00%%Checks%per%Month/%Customer% %1.00%%
Total%Checks%/Month:% 10,000.00%Time%Required%to%Check%Meter% 5%minutes%Meters%Checked/%Hour% %12.00%%Technician%Hours/%Day% %7.00%%Meters%Checked/Day% %84.00%%
Total%Days%Needed%to%Check%Total%Meters:% 120%days%Number%of%Technicians%Employed% %6.00%%
Days%per%Month%to%Check%Meters%(%per%Technician):% %20.00%%Technician%Cost/%Day% %$150.00%%Technician%Cost/%Hour% %$13.00%%Total%Cost%of%Technician%per%Month% %$3,000.00%%
Technician#Cost/#Unit# #$1.05##Total#Cost#of#All#Technicians/#Month# #$18,000.00##Total#Cost#of#All#Technicians/#Year## #$216,000.00##
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Appendix H
Federal%CommunicaLons%Commission%(FCC)%standards%for%intenLonal%and%unintenLonal%radio%emissions,%and%safety%related%to%RF%exposure,%parts+1+and+2+of+the+FCC's+Rules+and+Regula
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Appendix H