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TESCO’s New Market Space
By the Pyjama Party: Lara, Robin, Mia, Claudia, Andres
Let’s start with my friend Sara
Perfect boyfriend
Deals
Everything green
Green petitions
Vegetarian
Updated about
green energy
Tips to optimize energy
Unnecessary advices
Cooking
Kittens
Vegetarian
Pushes me to get up in the
middle of the night to turn
the router off...
Time to compare
Tangible advantage
Difficult to compare
Automated
Ridiculous saving tips
Wasting my energy
I obviously would like to be like her
But most of the time I feel like this...
TESCO can help towards that outcome
OPTIMIZE
HOUSEHOLD
RESOURCES
MAXIMIZE
QUALITY of LIFE
Reshaping the User Experience
From
From
To
Defeating Sara
SMART MOVE
TESCO SmartMove
SmartMove
Platform
TESCO
+ +
SmartMove
Sensors
Pre: Synched bills
SmartMove Platform
Eliminated Waste
• Waste of time
• Many bills to manage
• Time to enter
expenses
• Different bills and
accounts
• Tips differ
Added customer value
• Do more good with
less work
• Smarter energy
choices
Eliminated Waste
• Set up
• No foreseeable goal
• Expensive
Added customer value
• Compatible with
old appliances
• Affordable
• Tangible, precise goal
• Visible, actionable
• Seeing increase in
quality of life in action
During: SmartMove
sensors in action
Eliminated Waste
• Set up
• No foreseeable goal
• Expensive
Added customer value
• Compatible with
old appliances
• Affordable
• Tangible, precise goal
• Visible, actionable
• Seeing increase in
quality of life in action
During: SmartMove
sensors in action
Eliminated Waste
• Different bills
• Difficult life decisions
• Expensive upgrades
Added customer value
• Future consumption
predictions
• Remote tracking
• SmartMove house
index
• Informed choices
• Educating
• Motivation
Post–facilitate
evaluation&maintenance
Eliminated Waste
• Different bills
• Difficult life decisions
• Expensive upgrades
Added customer value
• Future consumption
predictions
• Remote tracking
• SmartMove house
index
• Informed choices
• Educating
• Motivation
Post–facilitate
evaluation&maintenance
SmartMove
Sensors
TESCO SmartMove
Beat Sara!
TESCO
+ =
+
SmartMove
Platform
Business Case for TESCO
Why is SmartMove strategic for TESCO?
Experienced in using automated data
collection software to:
• Market products based on shopping
choices.
• Improve operational efficiencies
• Create new-business opportunities by
diversifiying new markets (mobiles,
financial services)
Has been using Big Data since 2006 to:
• Improve supply change
• Inventory management systems
• Tesco’s new supply chain optimization
program helped SAVING up to 16
MILLION pounds anually.
Tesco is already an expert in Big Data Analytics
Predictable Data
Historical Buying Data Expected temperature trends
Customer shopping habits based on context
+
• Predict what customers will want to buy in a specific
area/time of year & stock accordingly
• 97% chances that customers will find what they want
in stores compared to competitors
=
Predictable Data
By tracking customers energy habits,
TESCO can give accurate recommendations
and predictions about when and how they
can use energy in an effective way.
Edimax +
Rasberry Pi
Strategic Partners
Energy
providers
Smart appliance
companies
TESCO’s
competencies
+ + +
Edimax & Rasberry Pi
Low user entry cost
Compared to
Nest
$249 / unit
$119 / installation
Wemo
$49 / switch
Ultra affordable
network solutions
Edimax
$11 per Wifi adaptor
$25 per rasberry pi
$110 / 10 switches
$36 / sensor plug
Revenue
Stream
What may we enter?
Time
Industries
ENERGY COMPANIES
SMART APPLIANCES
FINANCIAL PLANNERS
ENERGY CONSULTING
SMART HOMES
REAL ESTATE
Behavioural
experiment
• Neighbors were told to turn off their air
conditioning and turn on their fans to
save $50/month during the summer.
• Different people were told different
messages
•Only the last group turned off
the air conditioner
What about your
perfect neighbour?
The human component ensures that our
solution will work
Individuals are motivated much more by
their perceptions of what other people do
and find acceptable than they are by other
factors such as saving money or conserve
resources
Customer Value
• TESCO enters the home space to help with better energy consumption behaviour
using data to track, predict and recommend
• We can really enter other markets once customers trust us
• Simplified bill and payments
• Smart energy choices
• Automate all the tracking, optimisation and reduce energy spending
• Affordable energy monitoring service
• Easily adapt normal appliances
• Better energy consumption behaviour
• Visible and actionable recommendations that lead to better quality of life
Thank You
Questions?

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Business Transformation: Tesco

  • 1. TESCO’s New Market Space By the Pyjama Party: Lara, Robin, Mia, Claudia, Andres
  • 2. Let’s start with my friend Sara Perfect boyfriend Deals Everything green Green petitions Vegetarian Updated about green energy Tips to optimize energy Unnecessary advices Cooking Kittens Vegetarian Pushes me to get up in the middle of the night to turn the router off...
  • 3. Time to compare Tangible advantage Difficult to compare Automated Ridiculous saving tips Wasting my energy I obviously would like to be like her But most of the time I feel like this...
  • 4. TESCO can help towards that outcome OPTIMIZE HOUSEHOLD RESOURCES MAXIMIZE QUALITY of LIFE
  • 5. Reshaping the User Experience
  • 8. To
  • 11. Pre: Synched bills SmartMove Platform Eliminated Waste • Waste of time • Many bills to manage • Time to enter expenses • Different bills and accounts • Tips differ Added customer value • Do more good with less work • Smarter energy choices
  • 12. Eliminated Waste • Set up • No foreseeable goal • Expensive Added customer value • Compatible with old appliances • Affordable • Tangible, precise goal • Visible, actionable • Seeing increase in quality of life in action During: SmartMove sensors in action
  • 13. Eliminated Waste • Set up • No foreseeable goal • Expensive Added customer value • Compatible with old appliances • Affordable • Tangible, precise goal • Visible, actionable • Seeing increase in quality of life in action During: SmartMove sensors in action
  • 14. Eliminated Waste • Different bills • Difficult life decisions • Expensive upgrades Added customer value • Future consumption predictions • Remote tracking • SmartMove house index • Informed choices • Educating • Motivation Post–facilitate evaluation&maintenance
  • 15. Eliminated Waste • Different bills • Difficult life decisions • Expensive upgrades Added customer value • Future consumption predictions • Remote tracking • SmartMove house index • Informed choices • Educating • Motivation Post–facilitate evaluation&maintenance
  • 18. Why is SmartMove strategic for TESCO? Experienced in using automated data collection software to: • Market products based on shopping choices. • Improve operational efficiencies • Create new-business opportunities by diversifiying new markets (mobiles, financial services) Has been using Big Data since 2006 to: • Improve supply change • Inventory management systems • Tesco’s new supply chain optimization program helped SAVING up to 16 MILLION pounds anually. Tesco is already an expert in Big Data Analytics
  • 19. Predictable Data Historical Buying Data Expected temperature trends Customer shopping habits based on context + • Predict what customers will want to buy in a specific area/time of year & stock accordingly • 97% chances that customers will find what they want in stores compared to competitors =
  • 20. Predictable Data By tracking customers energy habits, TESCO can give accurate recommendations and predictions about when and how they can use energy in an effective way.
  • 21. Edimax + Rasberry Pi Strategic Partners Energy providers Smart appliance companies TESCO’s competencies + + +
  • 22. Edimax & Rasberry Pi Low user entry cost Compared to Nest $249 / unit $119 / installation Wemo $49 / switch Ultra affordable network solutions Edimax $11 per Wifi adaptor $25 per rasberry pi $110 / 10 switches $36 / sensor plug
  • 24. What may we enter? Time Industries ENERGY COMPANIES SMART APPLIANCES FINANCIAL PLANNERS ENERGY CONSULTING SMART HOMES REAL ESTATE
  • 25. Behavioural experiment • Neighbors were told to turn off their air conditioning and turn on their fans to save $50/month during the summer. • Different people were told different messages •Only the last group turned off the air conditioner
  • 26. What about your perfect neighbour? The human component ensures that our solution will work Individuals are motivated much more by their perceptions of what other people do and find acceptable than they are by other factors such as saving money or conserve resources
  • 27. Customer Value • TESCO enters the home space to help with better energy consumption behaviour using data to track, predict and recommend • We can really enter other markets once customers trust us • Simplified bill and payments • Smart energy choices • Automate all the tracking, optimisation and reduce energy spending • Affordable energy monitoring service • Easily adapt normal appliances • Better energy consumption behaviour • Visible and actionable recommendations that lead to better quality of life