Data-Driven Selling and The Value of Data In The Water Industry


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Slides from Peter Gallant's talk at the Feb 18, 2014 Event: Going Beyond The Spreadsheet - A Lunch & Learn co-hosted by WatrHub Inc. and WaterTAP Ontario.

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Data-Driven Selling and The Value of Data In The Water Industry

  1. 1. Data-Driven Selling: How Smart Networks and Big Data Will Transform Sales to Municipal Customers Dr. Peter GALLANT VP Business Development & Regulatory Affairs ENDETEC Sensor Group And Vice-Chair, WaterTAP Board February, 2014
  2. 2. Today’s Challenge… Vast networks of small, inexpensive, embedded sensors are now being deployed by water utilities worldwide. These sensors are helping utilities to better understand themselves and the behaviour of their water distribution infrastructure. What selling opportunities can vendors and start-ups in the water technology sector leverage from smart networks and big data? How is this new knowledge going to change the game? “Seek First to Understand…then to be Understood.” 21/02/2014 Steven Covey, Habit 5 of The 7 Habits of Highly Effective People 2
  3. 3. Our Discussion Today… 1. Seek First to Understand: Utility operations: their challenges in “numbers”. Brief introduction to smart networks in utility distribution systems. “Real World” examples of the unprecedented operational knowledge and insight that big data analytics can provide. 2. Then Seek to be Understood: Leverage big data to understand your customer. 3. Data-Driven Selling: The New Reality Use the utilities’ own information to sell to them / validate your value proposition. 21/02/2014 3
  4. 4. Numbers… 79 Overview 21/02/2014 4
  5. 5. Numbers… 79 Average age (in years) of water pipe in Washington, DC Overview 21/02/2014 5
  6. 6. Numbers… 403,000 Overview 21/02/2014 6
  7. 7. Numbers… 403,000 Number of people made ill by Milwaukee Crypto outbreak (1993) out of 880,000 pop. served Overview 21/02/2014 7
  8. 8. Numbers… 116 / 7,500 Overview 21/02/2014 8
  9. 9. Numbers… 116 / 7,500 Number of drinking water contaminants (116) selected for EPA Candidate Contaminant List out of 7,500 contaminants evaluated Overview 21/02/2014 9
  10. 10. Utilities Face Multiple Challenges Convergence of Forces and Drivers Health Protection 21/02/2014 Aging Economics of Infrastructure Water (Cost/Supply) 10
  11. 11. 1. Seek First to Understand: Smart Networks in Water Utility Distribution Systems Smart Networks will require: Massive networks of cheap sensors. Rapid and easy to install (tap in like a service connection). Little to no calibration/service or reagents (or OPEX will be unsustainable) Smart Sensors will generate: Both “direct” and “indirect” (surrogate) parameters eg. optical detection of organics, etc. Massive amounts of raw data! According to Sensus, Smart Networks could save the world’s 180 biggest utilities up to US $12.5 billion annually 21/02/2014 11
  12. 12. 1. Seek First to Understand: What Smart Networks are Showing Utilities : 3 Examples Example #1: Rapid detection of Adverse Water Quality Events such as zero chlorine residuals – taste/odor and public health protection. Active Chlorine Conductivity 21/02/2014 12
  13. 13. 1. Seek First to Understand: What Smart Networks are Showing Utilities : 3 Examples Example #2: High water demand (firefighting) shows water quality impact sloughing of biofilms and corrosion. . Fire demand (hydrant open) event shows biofilm release and water age changes (conductivity transient changes) 21/02/2014 13
  14. 14. 1. Seek First to Understand: What Smart Networks are Showing Utilities : 3 Examples Example #3: Variable pressure can affect pipe life and lead to water main breaks/premature failure. Jan 31/12 break of a 4” water main detected by pressure drop faster than tank level monitors. 21/02/2014 Source: American Water 14
  15. 15. 2. Seek to Understand: Leverage Big Data to Identify Customer Pain / Selling Opportunities Understand Optimize Operate Early adopters will be “good/best” systems that want to “keep getting better” - partner with them and access public (and possibly internal) data to understand key issues such as: Detection of critical events (water main breaks). Water security and system integrity monitoring. Performance-based underground infrastructure assessment. Potential operational gains: in-plant treatment optimization based on distribution system observations. Applies to both chemical and energy savings opportunities! 21/02/2014 15
  16. 16. 2. Seek to Understand: Leverage Big Data to Identify Customer Pain / Selling Opportunities Utilities required to publish water quality data (increasingly online). Some utilities also publish network monitoring data to the Web (in real time!) Public regulatory data re. violations (adverse water quality events, parameter exceedences). AMR/AMI water metering infrastructure can provide significant amounts of flow/pressure data. US Air Force has issued RFI recently for “real time water quality sensors” to reduce the occurrence of violations of the Total Coliform Rule and other federal water quality regulations. 21/02/2014 Source: WaterWise 16
  17. 17. 3. Data-Driven Selling: the New Reality Advantages: Ease of “problem validation” – the data doesn’t lie! Validated issues (especially potential regulatory, public health or “public nuisance” such as taste & odor) may enable budget prioritization or one-time appropriations. Challenges to Consider: Higher “burden of proof” of impact of new solution. Increased use of data-driven KPIs in performance-based contracts / public-private partnerships. Sophistication required to sell to these customers. Smart Networks and Big Data are going to transform what utility customers know about themselves and their distribution networks – and will also transform the process of selling to municipal customers 21/02/2014 17
  18. 18. Contact Information Dr. Peter Gallant 21/02/2014 18