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@WATERNOMICS_EU www.waternomics.eu
Project co-funded by the European
Commission within the 7th Framework
Program (Grant Agreement No. 619660)
THE IMPACT OF ADOPTING A WATER INFORMATION PLATFORM
ON A UTILITIES BUSINESS MODEL
SANDER SMIT
www.bm-change.nu
@WATERNOMICS_EU www.waternomics.eu
2
WATERNOMICS PROJECT
www.bm-change.nu
▶ Timeline: February 2014 – January 2017
▶ Consortium: 9 partners
▶ Countries: 4
▶ Pilots: 4
▶ Part of the ICT4Water cluster
▶ Co-funded by the European Commission
@WATERNOMICS_EU www.waternomics.eu
3
WATERNOMICS PROJECT
Question: How can ICT help households, companies and
cities manage water more efficient?
www.bm-change.nu
Waternomics: Provide personalised and actionable
information on water consumption and water availability
to individual households, companies and cities in an
intuitive & effective manner at relevant time-scales for
decision making
@WATERNOMICS_EU www.waternomics.eu
4
WATERNOMICS PROJECT
www.bm-change.nu
@WATERNOMICS_EU www.waternomics.eu
5
WATER INFORMATION PLATFORMSupport
Services
Sources
Applicatio
ns
Water Analysis
Model
Complex Events
Usage Model Water Dashboards
Entity
Management
Service
Decision Support
Systems
Linked
WaterData
Data
Catalog
Complex Event
Processing
Engine
Prediction Search &
Query
Adapter Adapter Adapter Adapter Adapter
▶ Applications
▶ Information Services
▶ Data linkage and analysis
▶ Sensor networks
www.bm-change.nu
@WATERNOMICS_EU www.waternomics.eu
6
REGION
WATER UTILITY BUSINESS MODEL
www.bm-change.nu
VALUE
PROPOSITION
PARTNERS CUSTOMER
SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
CHANNELS
RELATIONSHIP
COST STRUCTURE REVENUE STREAMS
WATER BILL
DOMESTIC
BUSINESS
PAY PER M3 or FLAT FEE
FIXED COSTS:
Network, staffing
VARIABLE COSTS:
Energy, non-revenue water
GOVERNMENT
(local, national, EU)
TECHNOLOGY
PROVIDERS
NETWORK
MANAGEMENT
METERING & BILLING
@WATERNOMICS_EU www.waternomics.eu
7
REGION
IMPACT OF WATER INFORMATION PLATFORM
www.bm-change.nu
VALUE
PROPOSITION
PARTNERS CUSTOMER
SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
CHANNELS
RELATIONSHIP
COST STRUCTURE REVENUE STREAMS
WATER BILL
DOMESTIC
BUSINESS
PAY PER M3 or FLAT FEE
FIXED COSTS:
Network, staffing
VARIABLE COSTS:
Energy, non-revenue water
GOVERNMENT
(local, national, EU)
TECHNOLOGY
PROVIDERS
NETWORK
MANAGEMENT
METERING & BILLING
Network -> Smart network
(smart meters, smart
pipes, sensors, databases)
Staff: + data analysts
+ Data collection
+ Data analysis
+ ICT
providers
+ Costs for sensors and meters
+ Costs for staffing
- Decrease non-revenue water & energy
- Lower investment in capacity expansion
@WATERNOMICS_EU www.waternomics.eu
8
REGION
IMPACT OF WATER INFORMATION PLATFORM
www.bm-change.nu
VALUE
PROPOSITION
PARTNERS CUSTOMER
SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
CHANNELS
RELATIONSHIP
COST STRUCTURE REVENUE STREAMS
WATER BILL
DOMESTIC
BUSINESS
PAY PER M3 or FLAT FEE
FIXED COSTS:
Network, staffing
VARIABLE COSTS:
Energy, non-revenue water
GOVERNMENT
(local, national, EU)
TECHNOLOGY
PROVIDERS
NETWORK
MANAGEMENT
METERING & BILLING
INCREASED
OPERATIONAL
EFFICIENCY
@WATERNOMICS_EU www.waternomics.eu
9
REGION
IMPACT OF WATER INFORMATION PLATFORM
www.bm-change.nu
VALUE
PROPOSITION
PARTNERS CUSTOMER
SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
CHANNELS
RELATIONSHIP
COST STRUCTURE REVENUE STREAMS
WATER BILL
DOMESTIC
BUSINESS
PAY PER M3 or FLAT FEE
FIXED COSTS:
Network, staffing
VARIABLE COSTS:
Energy, non-revenue water
GOVERNMENT
(local, national, EU)
TECHNOLOGY
PROVIDERS
NETWORK
MANAGEMENT
METERING & BILLING
No changes
+ Customer dialogue
+ More customer touch
points No changes,
except for
new value
added
services
+ Enables flexible pricing schemes
+ Revenues from new services
+ Reputational gains
- Increased awareness = less direct sales
INCREASED
OPERATIONAL
EFFICIENCY
New services:
- Consultancy
- Water Data
Analysis
- Recommendation
@WATERNOMICS_EU www.waternomics.eu
10
REGION
IMPACT OF WATER INFORMATION PLATFORM
www.bm-change.nu
VALUE
PROPOSITION
PARTNERS CUSTOMER
SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
CHANNELS
RELATIONSHIP
COST STRUCTURE REVENUE STREAMS
WATER BILL
DOMESTIC
BUSINESS
PAY PER M3 or FLAT FEE
FIXED COSTS:
Network, staffing
VARIABLE COSTS:
Energy, non-revenue water
GOVERNMENT
(local, national, EU)
TECHNOLOGY
PROVIDERS
NETWORK
MANAGEMENT
METERING & BILLING
INCREASED
OPERATIONAL
EFFICIENCY
IMPROVED SERVICE
LEVELS
and/or
NEW VALUE ADDED
SERVICES
@WATERNOMICS_EU www.waternomics.eu
11
UNBUNDLING STRATEGY
www.bm-change.nu
INFRASTRUCTURE MANAGEMENT
SERVICE INNOVATION
CUSTOMER RELATIONSHIP
water
water
technology
providers
network maintenance
Installed
customer
base
water network
operations &
maintenance
TECHNOLOGY PROVIDERS
UNBUNDLED WATER UTILITY
WATER SERVICE PROVIDERS
new
products &
services
water
@WATERNOMICS_EU www.waternomics.eu
12
CONCLUSION
Adopting a Water Information Platform can drive:
• Increased operational efficiency
• New value added services and revenue streams
www.bm-change.nu
But there is no “one size fits all”-solution
@WATERNOMICS_EU www.waternomics.eu
THANK YOU
For more information:
www.waternomics.eu | info@waternomics.eu | www.ict4water.eu
sander@bm-change.nu

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Impact of Water Information Platforms on Utility Business Models

  • 1. @WATERNOMICS_EU www.waternomics.eu Project co-funded by the European Commission within the 7th Framework Program (Grant Agreement No. 619660) THE IMPACT OF ADOPTING A WATER INFORMATION PLATFORM ON A UTILITIES BUSINESS MODEL SANDER SMIT www.bm-change.nu
  • 2. @WATERNOMICS_EU www.waternomics.eu 2 WATERNOMICS PROJECT www.bm-change.nu ▶ Timeline: February 2014 – January 2017 ▶ Consortium: 9 partners ▶ Countries: 4 ▶ Pilots: 4 ▶ Part of the ICT4Water cluster ▶ Co-funded by the European Commission
  • 3. @WATERNOMICS_EU www.waternomics.eu 3 WATERNOMICS PROJECT Question: How can ICT help households, companies and cities manage water more efficient? www.bm-change.nu Waternomics: Provide personalised and actionable information on water consumption and water availability to individual households, companies and cities in an intuitive & effective manner at relevant time-scales for decision making
  • 5. @WATERNOMICS_EU www.waternomics.eu 5 WATER INFORMATION PLATFORMSupport Services Sources Applicatio ns Water Analysis Model Complex Events Usage Model Water Dashboards Entity Management Service Decision Support Systems Linked WaterData Data Catalog Complex Event Processing Engine Prediction Search & Query Adapter Adapter Adapter Adapter Adapter ▶ Applications ▶ Information Services ▶ Data linkage and analysis ▶ Sensor networks www.bm-change.nu
  • 6. @WATERNOMICS_EU www.waternomics.eu 6 REGION WATER UTILITY BUSINESS MODEL www.bm-change.nu VALUE PROPOSITION PARTNERS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES CHANNELS RELATIONSHIP COST STRUCTURE REVENUE STREAMS WATER BILL DOMESTIC BUSINESS PAY PER M3 or FLAT FEE FIXED COSTS: Network, staffing VARIABLE COSTS: Energy, non-revenue water GOVERNMENT (local, national, EU) TECHNOLOGY PROVIDERS NETWORK MANAGEMENT METERING & BILLING
  • 7. @WATERNOMICS_EU www.waternomics.eu 7 REGION IMPACT OF WATER INFORMATION PLATFORM www.bm-change.nu VALUE PROPOSITION PARTNERS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES CHANNELS RELATIONSHIP COST STRUCTURE REVENUE STREAMS WATER BILL DOMESTIC BUSINESS PAY PER M3 or FLAT FEE FIXED COSTS: Network, staffing VARIABLE COSTS: Energy, non-revenue water GOVERNMENT (local, national, EU) TECHNOLOGY PROVIDERS NETWORK MANAGEMENT METERING & BILLING Network -> Smart network (smart meters, smart pipes, sensors, databases) Staff: + data analysts + Data collection + Data analysis + ICT providers + Costs for sensors and meters + Costs for staffing - Decrease non-revenue water & energy - Lower investment in capacity expansion
  • 8. @WATERNOMICS_EU www.waternomics.eu 8 REGION IMPACT OF WATER INFORMATION PLATFORM www.bm-change.nu VALUE PROPOSITION PARTNERS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES CHANNELS RELATIONSHIP COST STRUCTURE REVENUE STREAMS WATER BILL DOMESTIC BUSINESS PAY PER M3 or FLAT FEE FIXED COSTS: Network, staffing VARIABLE COSTS: Energy, non-revenue water GOVERNMENT (local, national, EU) TECHNOLOGY PROVIDERS NETWORK MANAGEMENT METERING & BILLING INCREASED OPERATIONAL EFFICIENCY
  • 9. @WATERNOMICS_EU www.waternomics.eu 9 REGION IMPACT OF WATER INFORMATION PLATFORM www.bm-change.nu VALUE PROPOSITION PARTNERS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES CHANNELS RELATIONSHIP COST STRUCTURE REVENUE STREAMS WATER BILL DOMESTIC BUSINESS PAY PER M3 or FLAT FEE FIXED COSTS: Network, staffing VARIABLE COSTS: Energy, non-revenue water GOVERNMENT (local, national, EU) TECHNOLOGY PROVIDERS NETWORK MANAGEMENT METERING & BILLING No changes + Customer dialogue + More customer touch points No changes, except for new value added services + Enables flexible pricing schemes + Revenues from new services + Reputational gains - Increased awareness = less direct sales INCREASED OPERATIONAL EFFICIENCY New services: - Consultancy - Water Data Analysis - Recommendation
  • 10. @WATERNOMICS_EU www.waternomics.eu 10 REGION IMPACT OF WATER INFORMATION PLATFORM www.bm-change.nu VALUE PROPOSITION PARTNERS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES CHANNELS RELATIONSHIP COST STRUCTURE REVENUE STREAMS WATER BILL DOMESTIC BUSINESS PAY PER M3 or FLAT FEE FIXED COSTS: Network, staffing VARIABLE COSTS: Energy, non-revenue water GOVERNMENT (local, national, EU) TECHNOLOGY PROVIDERS NETWORK MANAGEMENT METERING & BILLING INCREASED OPERATIONAL EFFICIENCY IMPROVED SERVICE LEVELS and/or NEW VALUE ADDED SERVICES
  • 11. @WATERNOMICS_EU www.waternomics.eu 11 UNBUNDLING STRATEGY www.bm-change.nu INFRASTRUCTURE MANAGEMENT SERVICE INNOVATION CUSTOMER RELATIONSHIP water water technology providers network maintenance Installed customer base water network operations & maintenance TECHNOLOGY PROVIDERS UNBUNDLED WATER UTILITY WATER SERVICE PROVIDERS new products & services water
  • 12. @WATERNOMICS_EU www.waternomics.eu 12 CONCLUSION Adopting a Water Information Platform can drive: • Increased operational efficiency • New value added services and revenue streams www.bm-change.nu But there is no “one size fits all”-solution
  • 13. @WATERNOMICS_EU www.waternomics.eu THANK YOU For more information: www.waternomics.eu | info@waternomics.eu | www.ict4water.eu sander@bm-change.nu