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Will Smart Meters Ripen or Rot? Five First Principles for Embracing Customers as Co-Creators of Value
Abstract
In managing the migration of electricity users to the demand response world, five first principles can help with that tricky human element.
... Several studies suggest that energy grid technologies will increasingly require active, two-way involvement whereby users inform the grid network of their energy needs, desires, habits, and plans either indirectly through data or directly via system tools such as smart metres [51,61]. In these ways energy users become "co-creators of value" within the energy network ( [26], p. 2). At the same time, ambitious digital engagement programmes can help test future energy applications at an early stage, and begin normalising two-way dialogue earlier than is strictly necessary to promote a shift in this direction among users [54]. ...
... The literature review indicates that these social processes are likely to be best influenced through dynamic, user-centric social interactions in order to be meaningful in contemporary social and technological contexts, and furthermore, and that these types of interactions will become integral to future energy delivery systems [26,51,69,61]. While some organisations are likely to cite a lack of control in digital and social media as a risk large enough to justify avoiding ambitious, web-enabled communications strategies, the majority of engagement and marketing literature emphasises a greater risk inherent in not engaging with users online [9]. ...
... Considering these challenges, realizing the potential of app-based behaviour change may require more user involvement in the design [52][53][54]. Thus, co-designing behavioural interventions may be a promising approach to tailor an intervention to the potential user's attitudes, motivations and realities, and therefore result in greater energy saving effectiveness [19,28,55]. ...
While reducing individual energy consumption contributes to climate change mitigation, many individuals who share this belief fail to act on it. While behavioural interventions try to address such intention-behaviour gaps, few approaches have worked with consumers to understand the realities of their opportunities and limitations to save energy at home. We argue that co-design is well-suited to address the unique challenges of climate-relevant behaviour change and propose an abductive co-design methodology to develop a behavioural intervention with household members based on the Model of Action Phases (MAP) framework. We implement the methodology to design an energy savings app and behaviour change intervention in Switzerland. The methodology shifts participants into an expert role and elucidates their motivations, real-life challenges, and knowledge gaps to save energy. Through group problem-solving and self-reflection, participants provided design inputs which address the socio-psychological gaps to progress behaviour through the preaction, action and postaction phases of the MAP. We assess the originality and feasibility of the co-design inputs, as well as reflect on the experience of the researchers and participants during the process. We conclude that co-design provided novel inputs relevant for progressing through the behaviour change stages identified by the MAP framework.
... Smart meters are digital electricity meters that allow bidirectional (or two-way) communication between the meter (installed in a home) and an energy supplier through smart metering technology (SMT). To fully realize the benefits of SMT and justify the massive investments it requires, it is critical for the technology to be adopted by consumers (Faruqui et al. 2010;Honebein et al. 2009). ...
Although technologies spurred by the “internet of things” are increasingly being introduced in homes, only a few studies have examined the adoption or diffusion of such household technologies. One particular area of interest in this context is electricity consumption, especially the introduction of smart metering technology (SMT) in households. Despite its
growing prominence, SMT implementation has met with various challenges across the world, including limited adoption by consumers. Thus, this study empirically examines the antecedents of SMT adoption by potential consumers. Using a mixed-methods design, the study first unearths the SMT-specific antecedents, then develops a contextualized model
by drawing on theories from motivational psychology and the antecedents identified earlier, and then tests this model using a large-scale survey of German consumers. Results provide support for many of the hypotheses and highlight the importance of motivational factors and some household demographic, privacy, and innovation-related factors on consumers’ intention to adopt SMT.
... Mack/Tampe-Mai 2016). Honebein et al. (2009) postulieren in ihrer Unter-suchung fünf Prinzipien, die sicherstellen sollen dass die getätigten Investitio- nen in Smart Metering Infrastrukturen nicht ungenutzt bleiben und sich nachhal- tige Geschäftsmodelle, gemeinsam mit den Nutzern und der Gesellschaft, ent- wickeln. Dazu gehört unter anderem ein kundenzentriertes Design, eine Mi- schung aus rationalen und emotionalen Argumenten sowie Customer Engage- ment in kleinen, nachvollziehbaren Schritten (vgl. ...
Seit der Einführung des Konzepts Industrie 4.0 im Jahr 2011 hat das Feld große Aufmerksamkeit auf sich gezogen. Im Mittelpunkt der Überlegungen zur Industrie 4.0 stehen meist deren Anwendungsmöglichkeiten und technologischer Nutzen. Aus der Perspektive der Organisations- und Personalentwicklung ergibt sich ein Forschungsdefizit zu wichtigen Fragen im Rahmen der Umsetzungsmöglichkeiten des Konzepts Industrie 4.0. Ziel des Aufsatzes ist es, eine Zwischenbilanz über den bisherigen Diskurs der Industrie 4.0 zu ziehen, wobei ein besonderes Augenmerk auf die Wechselwirkung zwischen Industrie 4.0 und Organisationsentwicklung gelegt werden soll. Zentral soll hierbei herausgestellt werden, inwiefern die Industrie 4.0 ihren Zukunftsprämissen gerecht werden kann und mit welchen wesentlichen Herausforderungen und Chancen das Konzept zukünftige Organisationen konfrontieren wird. Auch soll an dieser Stelle ein kurzer Überblick über essentielle Aufgabenfelder sowie Maßnahmen und Handlungsempfehlungen der Organisations- und Personalentwicklung im Zeitalter der Industrie 4.0 aufgezeigt werden.
... Vargo and Lusch are wary of the word experience because of the connotations of specialness associated with it arguing that the experience of value is also to be found in the mundane. In addition to this, experiences are perceived on both an emotional and rational level and companies wanting to influence the incidence of positive experience should take both factors into account (Honebein, et al., 2009). ...
This report presents a critical analysis of how recipe delivery service (RDS) companies perceive they are co-creating value with their customers and what the potential benefits to RDS firms may be. An analysis of the industry finds RDS firms lacking many sustainable sources of competitive advantage and proposes value co-creation could be a source of relational advantage. Since these companies are on-line subscription retailers, artificial experience environments need to be developed to facilitate firm-customer interaction. The concept of value co-creation is broken down into its key elements and a number of potentially beneficial co-creative activities are hypothesised. Then semi-structured interviews were conducted with nine RDS and related firms across six countries to observe how they believe they engage with the paradigm. What was found was that a number of these firms thought they lacked the capacity to engage in product customisation; this does not exclude them from co-creating abstract value propositions. Most companies were heavily reliant on social media as their main experience environment which can facilitate some degree of interactivity but is limited in its scope. The perception of the level on customer interaction on social media appears to be higher that what was observed during data validation. There was also evidence of companies starting to construct value constellations to develop an overall consumer experience.
... With goal feedback framed as commitment to a goal (rather than progress)(Zhang, Fishbach, & Dhar 2007).16 For more information on small, actionable steps, see the third principle for embracing customers as co-creators of smart meter value(Honebein, Cammarano, & Donnelly 2009). ...
... Missing consumer acceptance is a major threat. Customers need to become co-creators of value [Honebein et al. (2009)]. ...
An agent-based model simulates consumer demand for smart metering tariffs. It utilizes the Bass Diffusion Model and Rogers's adopter categories to locate demand-side barriers and drivers. Integration of empirical census microdata enables a validated socio-economic background for each consumer. The key performance indicators diffusion-speed and diffusion-level measure the effectiveness of regulatory interventions to induce diffusion. Pricing, promotion and quantity-regulation policies are tested. Scenario results emphasize the impact of both epidemic and probit effects. Speed of adoption is mainly triggered via interactions and consumer awareness. Level of diffusion primarily depends on pricing, willingness-to-pay and cost-benefit-thresholds. Data mining on agent's attributes highlight weaknesses in current regulatory requirements due to disadvantages in consumer acceptance and policy effectiveness. A "cash-for-clunkers" program could tackle major barriers for adoption and boost diffusion through synergies of pricing and promotion interventions.
... Currently available research focuses mainly on the challenges and advantages of smart meters, technological aspects [Depuru et al. (2011)], economics ], cost and bene¯ts [Faruqui et al. (2010)], case studies [Honebein (2010)], policy [Zhang and Nuttall (2011)] and social/consumer aspects [Honebein et al. (2009) [Renner et al. (2011)]. The use of AMI by small and medium enterprises is addressed in aIM 4 SME's [Carbon Trust (2007)]. ...
This paper maps the diffusion dynamics of smart meters in the Central and Eastern Europe (EU10) and develops methodology which assesses the potential drivers of diffusion by the means of thematic analysis. Innovation diffusion theory and the concept of rate of adoption enabled to measure the speed of smart meter diffusion throughout the time in individual countries and the whole region, which is subsequently benchmarked against the market leaders. Results indicate that large-scale rollouts of smart meters are preceded by pilot projects, cost–benefit analysis, regulations, and initiatives. Furthermore, the role of state decreases with gradual development of the market.
... In this role, customers use their knowledge and skill to more effectively and effi ciently release the value embedded in the smart grid. 11 For example, will customers help reduce the need for peaker plants by shifting their energy usage to other times during a critical peak events? 12 Will they help reduce their utility ' s cost-to-serve by performing their own high-bill investigations online rather than calling the utility ' s call center? ...
Can customer relationship management (CRM) prosper in a smart grid world? Although a compelling vision for the CRM and smart grid marriage exists, substantial barriers may derail a successful union. In some utility circles, CRM is a dirty word. Privacy concerns abound. And we are not sure whether customers will actually co-create value.
Feedbacksysteme im Energiebereich, insbesondere zur Auswertung von Verbrauchsinformationen in privaten Haushalten, stellen ein probates Mittel zur Einsparung von Ressourcen dar. Mittelfristig werden Energieversorger durch den Rollout von Smart Metern eine passende Datengrundlage erhalten, welche solche Entscheidungsunterstützungssysteme für einen breiten Personenkreis zugänglich machen und auf aktuelle Trends im Bereich Smart Home einzahlen. Die vorliegenden Untersuchung soll einen Beitrag leisten, zur Konstruktion eines passenden Systems auf Basis von Grundlagen der Business Intelligence mittels der Erhebung eines Status Quo von aktuell bereits verfügbaren Systemen in dieser Domäne sowie der Identifikation von Gestaltungsempfehlungen aus der Forschung. Dazu wird zunächst auf die Grundlagen und Wirkungsmechanismen von Feedback eingegangen. Mittels einer Literaturuntersuchung wurden visuelle und inhaltliche Akzeptanzkriterien sowie der Wunsch des Nutzers nach Individualisierung und Personalisierung der Systeme aufgedeckt, stets mit dem Ziel einer langfristigen Erhaltung der Nutzung.
Based on interviews of users’ experience with current smart-meter technologies the authors propose, implement and evaluate a user-centered design of an energy-use information system that assists private households in making efficient energy consumption decisions. Instead of providing disaggregated data, the envisioned system automatically calculates the monetary savings from replacing an appliance or by changing the operational behavior of an appliance. The information provided is personalized with respect to appliance use and also comprises information from external databases. A prototype is implemented and evaluated in a use case with white goods household appliances. The study concludes with directions for further interactivity improvements and research into the structures of an openly shared appliance database.
Based on interviews of users' experience with current smart-meter technologies we propose, implement and evaluate a user-centered design of an energy-use information system that assists private households in making efficient energy consumption decisions. Instead of providing disaggregated data, the envisioned system automatically calculates the monetary savings from replacing an appliance or by changing the operational behavior of an appliance. The information provided is personalized with respect to appliance use and also comprises information from external databases. A prototype is implemented and evaluated in a use case with white goods household appliances. The study concludes with directions for further interactivity improvements and research into the structures of an openly shared appliance database.
Projekt
Ziel des Projektes war es, sozial relevante Faktoren und die Perspektive der KonsumentInnen in die Diskussion um Smart Metering einzubringen und Politikempfehlungen zu erarbeiten, um eine sozialverträgliche Einführung sicherzustellen. Dafür hat das Projekt Empfehlungen erarbeitet, die eine effektive und sozial akzeptable Einführung von Smart Metern ermöglichen. Ein Schwerpunkt wurde dabei auf die Themen Datenschutz und Privacy gelegt.
Abstract
Bis Ende 2019 sollen laut Verordnung des Wirtschaftsministeriums 95% der österreichischen Haushalte mit „intelligenten“ Stromverbrauchsgeräten ausgestattet sein. Bislang wurde die Diskussion über Für und Wider von Smart Metering in erster Linie von ExpertInnen geführt, die Perspektive der KonsumentInnen blieb unberücksichtigt. Erstmals wurde nun im Rahmen dieses Forschungsprojektes sowohl VerbraucherInnen als auch ExpertInnen in Form von Interviews und Fokusgruppen zu möglichen Einführungsszenarien von Smart Meters befragt. Die KonsumentInnen plädieren für Wahlfreiheit, sowohl was Einführung und Wahl der Zähler, als auch Aspekte wie Datenübertragung und Tarife betrifft. Dies steht im Widerspruch zu den Erfordernissen der Netzbetreiber, die befürchten, dass die Gesamtkosten nicht reduziert werden, wenn Smart Meters nicht flächendeckend eingeführt werden. Smart Metering kann durchaus zu einem Selbstläufer werden, wenn es einen klaren Nutzen für die KundInnen gibt. Dafür wäre eine Verknüpfung mit Ansätzen der Heimautomation und attraktiven Tarifen nötig. Es gibt allerdings einen hohen Informationsbedarf. Die KonsumentInnen können derzeit keine fundierte Entscheidung treffen, weil noch zu viele Aspekte unklar sind. Zum gegenwärtigen Zeitpunkt gibt es keinen dringenden Einführungsbedarf von Smart Meter, die Forschung (sowohl im technischen Sinn, als auch sozio-ökonomische Forschung) sollte intensiv weiter geführt werden. Besonders die Schnittstelle und die Anforderungen im Hinblick auf Smart Grids sollte umfassend analysiert werden. Erst im Anschluss daran sind gesetzliche Vorgaben zur Einführung von Smart Meters sinnvoll.
Implementing smart metering is an important field for energy policy to successfully meet energy efficiency targets. From an integrated social acceptance and customer-perceived value theory perspective we model the importance of customer value of smart metering in this regard. We further shape the model on a choice-based conjoint experiment with Swiss private electricity customers. The study finds that overall customers perceive a positive value from smart metering and are willing to pay for it. Further, based on a cluster analysis of customers’ value perceptions, we identify four customer segments, each with a distinct value perception profile for smart metering. We find that energy policy and management should integrate a solid understanding of customer value for smart metering in their initiatives and consider different smart metering market segments within their measures.
Smart Grid is a novel initiative the aim of which is to deliver energy to the users and also to achieve consumption efficiency by means of two-way communication. The Smart Grid architecture is a combination of various hardware devices, management and reporting software tools that are combined within an ICT infrastructure. This infrastructure is needed to make the smart grid sustainable, creative and intelligent. One of the main goals of Smart Grid is to achieve Demand Response(DR) by increasing the end users' participation in decision making and increasing the awareness that will lead them to manage their energy consumption in an efficient way. Approaches proposed in the literature achieve demand response at the different levels of the Smart Grid, but no approach focuses on the users' point of view at the home level on a continuous basis and in an intelligent way to achieve demand response. In this paper, we develop such an approach by which demand response can be achieved on a continuous basis at the home level. To achieve this, the dynamic notion of price will be utilized to develop an intelligent decision-making model that will assist the users in achieving demand response.
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