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Customer Experience: Enhancing customer experience with the Internet of Things (IoT) BY Jukka Helin AT VAPO


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Slides from Jukka's workshop at J. Boye's Aarhus16 conference in Aarhus on Wednesday 2-Nov-16.

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Customer Experience: Enhancing customer experience with the Internet of Things (IoT) BY Jukka Helin AT VAPO

  1. 1. BETTER CEX BY MAKING THINGS BECOMING SMARTER Jukka Helin J. Boye Aarhus 2.11.2016 1
  2. 2. Sisäinen | Internal2
  3. 3. Vapo - fuel and energy supplier with exciting growth opportunities Strong Nordic presenceVapo in figures (FY 2016) Group revenue EUR ~390m (FY 2016) EUR ~20m EUR ~290m Kekkilä Group in Norway and Russia EUR ~5m Group revenue EUR ~390m Amount of personnel ~800 Hectares of land in peat production over 50,000 Annual fuel sales 14 TWh Annual energy sales 1,6 TWh Power- and heating plants 153 EUR ~75m
  4. 4. Vapo’s business areas Fuels Kekkilä Group • Provides domestic solid fuels, such as fuel wood, peat and pellets • Related added value services • Solutions based on delivery reliability, local and responsible operations, as well as expertise in fuels and energy production • Offers tailored heating solutions, district heating and remote operation services for plants • Turnkey solutions according to customers’ individual needs • Owns 7 power plants, 146 heating plants, 29 district heating networks • Develops, produces and markets high-end garden substrates, plant fertilisers and mulches as well as home garden and yard construction products • Customers include hobby gardeners, professional growers and landscapers Net sales: EUR 250m EBITDA: EUR 37m • Vapo Clean Waters Oy Solutions for controlling and treating natural waters • Vapo Fibers Ecological peat fibers with unique characteristics to be applied in various industrial purposes • Vapo Carbons Technical carbons incl. activated carbon, carbon fiber and carbon black. Net sales: EUR 88m EBITDA: EUR 6m Net sales: EUR 95m EBITDA: EUR 18m Heat and Power Vapo Ventures
  5. 5. Heat and power production value chain Fuel production Fuel procurement Fuel processing Transport Power production Energy distribution Energy services (sales / retail) Energy consumption Big centralized power plants Coal Gas Biomass Nuclear Wind Distributed consumption
  6. 6. AFTER BEFORE BEDDING PEAT Smarter and easier
  7. 7. Sisäinen | Internal7
  8. 8. Base for automation. Special interest in logistics optimation. Customer promise ”We make sure your storage is always full.” Business value ”We have better control over the whole process and logistics” Notes Issues with reliability, expensive. Work in outdoor conditions (when they work). Average customer orders a delivery or a pick-up 1-2 times per month by phone. Customer promise ”One less thing to take care of. Just press the button.” Business value ”Happier customers, better retention, more orders.” Notes Easy to start with, fairly cheap. Some reliability issues. Need to be placed inside. ORDER BUTTONSLEVEL MEASUREMENT
  10. 10. Vapo’s powerplants in Finland Silo level measurement key to successful logistics. Transportation is a big part of the total cost. Step 1. Get data from our own silos Step 2. Plan logistics based on data Step 3. Add sensors to customers silos Problems • Still too expensive and unreliable • We need to get price per silo to under 1000 € • Dusty environment challenging for current technology.
  11. 11. Easy step 1. screen-capture plants control screens Lot of remote, independently operating pellet plants. Normally work just fine, but in fault situations maintenance crew had to drive hundreds of kilometers to operate the control panel inside the plant. Simple solution: screen capture software to the control panels. Now they can be operated from anywhere. No real automation software needed.
  12. 12. We had cameras for security in the silos. Only internal access to them. We opened the camera feeds to internet and gave our partners access to them. Now truck drivers can check the silo levels on their mobiles and decide independently when to fill the silo. Zero cost because we were able to use existing equipment. Easy step 2. Opening the cameras
  14. 14. Automated fuel orders for large customers By combining different data eg. – Weather – Plant size – Fuel metrics – History data We think we are able to automate fuel ordering for our big customers. Dashboard is there to show that everything works. Project starting now. MVP out in March-April 2017.
  15. 15. Automated offers for consumers By using marketing automation that combines different data sets eg. • Purchase history • Weather data • Storage size We are able to send perfectly timed sales offers to existing customers. Logic is being build into Salesforce Launch at the end of 2016. p.s. Our dream is to automate this as well using sensors or buttons.
  16. 16. Continuum of automation Order buttons Remote- controlled screens Cameras Silo monitoring Automatic ordering Controlling energy streams
  17. 17. Our goals with IoT and becoming smarter Better customer experience • Easier buying • Less work for customers • Better reliability • Eventually cheaper prices Better business • Improved logistics • Better control of the whole value chain (which is changing drastically).
  18. 18. New energy value chain …in a two- way market meets… Distributed production… …distributed consumption Customer becomes a user and a producer Prices are pushed down. Huge strain on traditional production that is still needed as reserve. Focusing on customer experience is essential in the future value chain. Owning production plants doesn’t bring advantage. I IIIII
  19. 19. @yuccis