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The Surprising Economics of Smart Water Networks


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The Surprising Economics of Smart Water Networks

  1. 1. SWANonomicsThe unexpected economics of Smart Water NetworksHaggai ScolnicovChief Technology Officer, TaKaDuMay 2012
  2. 2. TaKaDu in one slideSensor data Event detection Analyst action Field repairs• 12 utilities• Millions of sensor-days of data processed• Tens of thousands of actionable events reported• Thousands of invisible leaks detected 2
  3. 3. Smart monitoring changes everythingNew light on real conditions and existing processes• Evidence on fault lifecycles• System KPIs and where all the money goesNew opportunities to take action• React before major failure – requires new tools• Reprioritise across the utility, using new insight and data 3
  4. 4. Good news: smart monitoring drivesspending increase on field crews Less false alerts, greater accuracy More early warning More leakage fixed per field crew hour Point of diminishing returns is at much larger field workforce Save OPEX by hiring crews (Economic Level of Leakage changed!) 4
  5. 5. The five stages of new KPIsTime to awareness of leaks was weeks, not days(and users don’t always recognise leaks after getting the alert)Sensor availability is 75%, not 90%(and the 15% difference is misleading data, not just missing)Denial: “That’s not leakage” or “you added up wrong”Anger: “You’re ruining my report” or “so I should fire Joe”Bargaining: “Can we call it something else? Split the difference?”Depression: “So now we’re worse off than 5 years ago”Acceptance: “Let’s start a new team or process for that” 5
  6. 6. Better leakage reduction meansless Ml/day repaired• Many leaks grow (gradually or suddenly)• Fixing larger leaks may be a sign of inefficiency April 7th May 1st 1 l/s 4 l/s 6
  7. 7. The value of water loss reduction isnot (just) the cost of water loss reduced Lost water Damage and (production  Repairs fines distribution) Interruptions Asset Water quality to service longevity Supply Public capacity of relations network 7
  8. 8. And other shockers…• That meter sample is worth 10¢ (or much more) Raw data costs money and creates value• Leak detection least helpful during peak leakage Visible bursts are most urgent, and field location/repair may be a bottleneck• Vast majority of leakage repairs are insignificant due to “random” targeting + location incentive• OPEX can be “smart money”! SWAN services economy, from sensors to analytics 8
  9. 9. So is SWAN adoption very complex?• First take the basic gains from each component• The new facts were true before we knew them• Opportunities to rethink established practicesTechnology has already disrupted this industry: staying behind is a losing proposition 9