NUS Case Competition Slide Deck

Singapore Power Group: A Sustainable Future
Rubicon Consulting Group
Kathryn Corasaniti, Cody Hodge, Ryan Owens, Emily Fordice
September 8th, 2017

SITUATION STRATEGY IMPLEMENTATION BOTTOM LINE
Agenda
Risks and Mitigation
Financials
Marketing Plan
Timeline
Project SPARC
Strategic Plan
Goals
Problem Identification
Internal Analysis
Operating Landscape
Implementation
Strategy
Situation
Bottom Line

Power Generation
Non-Contestable
Customers
Contestable
Customers
1.3 Million More Contestable Customers
By 2019…
Electricity Retailers
Market Support
Service Licensee
SP Group Power Grid
Liberalizing Market Increasing Energy Demand
37%
Total consumption
in the last 10 years
31%
Population in
last 10 years
Current Situation

Core Competencies
Scope
Experience
Data
Reliability

Reality Check
How do we evolve with the energy market?
Need to pivot out of
retailer role
Cannot ignore long
term demand needs
Embrace changes in
sustainability
Opportunity to act as
connection point

Executive Summary
Generate
Revenue
Build a sustainable
future
Objective Remain relevant long-term and improve the lives of Singaporeans
Key Issues
Goals
Liberalization of the
market changes our role
Rapidly evolving
technology
Increasing demands on
the power grid
Improve Lives of
Singaporeans
Strategy Connect customers & retailers with value-add services

Our New Role in a Liberalized Market
Strategy: Connect customers & retailers with value-add services
RetailersCustomers

Project: SPARC
Connect and engage digitally
Develop a comprehensive app to meet
customer needs and deliver services
Sustainability solutions
Push energy reduction and use household
energy consultants as an additional service
Connect
customers &
retailers with
value-add services
Provide reliability and security
Increase and maintain security of digital
data and power grid
Sustainable Power And Reliable Connection

Engaging Customers
Customer Retailer
• Chat-bot
communication
• Request and track
maintenance
• Gamified energy goals
• Request energy audit
• Recommend energy
saving products
• FindYour Perfect
Retailer
• White label version for
the retailer
• Details through Find
Your Perfect Retailer
• Integrated data direct
to retailers
• Prevents retailers from
developing their own

Digital Application Improvements
What do our
customers want?
Our App
• Easy and personal log-in
• Seamless integration between SP Group and retail provider
• Add Find a Retailer at the bottom for those not looking to
log-in but just want more information
• List of retailers and filterable options to help customers
search and sign-up
• Create a white labeled interface for interested retailers
Log-in Usage & Billing Customer
Services
Retail
Connection
Save&Sustain

• Ease of payment, consistency, integration with retailer
• Savings
• More engagement
• Add Save onYour Next Bill
• Redirect to marketplace for buying energy efficient
appliances and installation services
• Give personalized savings of how your bill will look like
in the future if consumption stays flat but you install
products
• Add Request an Energy Audit
Services
Retail
Connection
Save&Sustain
What do our
customers want?
Our App

• Meter readings in context, user-friendly language
• To engage with their meter
• Add SetYour Energy Goals
• Allow customers to set their monthly goal and track
their progress throughout the month
• Goals can be cost conscious or sustainably focused
• Incentives through discounts on green appliances
• Add Green Scorecard
• Add Cost Cutting Suggestions based on where they use the
most energy
• Gamify app by adding achievements, missions, incentives
Services
Retail
Connection
Save&Sustain
What do our
customers want?
Our App
AchieveGoals
Decrease energy use by 25%
Lower bill by 10 daollar
You
earned the
energy
saver
medal!

• 24/7 access to help when they need it
• To feel like an individual, and not just another number
• Introduce Chat Now service that utilizes chat bot for
frequently asked questions and has the option to direct chat
a representative
• Request Maintenance and track fulfillment of
request through a ServiceTracker
• Maintenance representatives can update
tracker using their tablets
Services
Retail
Connection
Save&Sustain
Chat Now
Request
Received
Maintenance
On the Way
Request
Completed
What do our
customers want?
Our App

• Transparency on the retailer market
• To make a personalized choice
• FindYour Perfect Retailer
• Complete list of retailers
• Filter by preferences
• Links to their service app/page
• Set Up instructions to switch retailers
Services
Retail
Connection
Save&Sustain
What do our
customers want?
Our App
Retailer

Engaging Retailers
Customer Retailer
• Chat-bot
communication
• Request and track
maintenance
• Gamified energy goals
• Request energy audit
• Recommend energy
saving products
• FindYour Perfect
Retailer
• White label version for
the retailer
• Details through Find
Your Perfect Retailer
• Integrated data direct
to retailers
• Prevents retailers from
developing their own

Application Serving Retailers
• Flexibility and differentiation
• Lower start-up costs
• White labeling
• Fully developed customer interface
• Option to use our maintenance platform
and customer care services
Log-in
Customer
Services
What do our
retailers want?
We Offer
Usage & Billing Save&Sustain
Retail
Connection
Retailers DevelopRetailers Develop RetailersUseSPApp
Annual
Licensing Fee
Annual
Maintenance
Development
Cost
$1.2 M
$1 M
$1.5 M

Acquire an Energy Audit Company
Extensive market influence and brand in
Singapore
Able to implement large scale energy consumption
reduction systems
Generates sales and revenue for SP
Wisely invests in a company that is already
successfully implementing sustainable solutions
SP Group acquires a competency without
starting from scratch
BBP gains better recognition and more business
Singapore Power has an interest in
promoting sustainable investments
in Singapore to help customers.
Barghest Building Performance
(BBP) wants to deliver energy
consultation in Singapore
SP Group Has the Market Presence BBP Promotes Sustainability

Staying Secure
Securing Our Digital App Securing Our Infrastructure
Shield
between
internet and
IT network
Shield
between IT
network and
critical
infrastructure
Critical data is
stored as
“Islands”
• Proven track record: previously worked with
UOB and the UOB MightyApp
• Vital to protect our customers against cyber
threats and to maintain our reputation of
reliability
Three layers of soft
factor
authentication for
more secure login
Protects payments
using a cloud
based system
Protects identity
and personal data

SPARC Operational Needs
HR Additions
• Hire 40 more
developers over three
years
• Five key marketing
specialists to carry out
plan
ITTeam
• Outsource cyber
security toV-Key
• Upgrade tablet
software for
maintenance to
interface with app
tracker
Customer Service
Representatives
• Delegate customer
service representatives
to each white labeled
app
Consultants
• Acquiring BBP will
precipitate an influx of
energy consultants
• Must employ change
management strategies

SPARC Branding
Connectivity Reliability Sustainability
Connecting customers and
retailers in a changing market
Reliably managing billing
and delivery electricity
Discovering and investing
in new technologies
Improving the quality of life for Singaporeans through

Brand Implementation
Outcome:
Developing our brand will help the SP Group to evolve with the changing landscape of the energy
market in Singapore
Social Media Expansion
• Use Instagram to tell
rich stories of SP
Group‘s sustainability
initiatives
• Engage key
influencers
• Write a blog to discuss
new topics in energy
sector
Word of Mouth
• Enhance the
ownership experience
of customers
• They will tell their
friends to stay with SP
Services
Earned Media
• By investing in green
initiatives, SP Group
will gain media
coverage
• Implementing new
cooling systems in
major event spaces
• Producing industry
reports
A clear brand message facilitates a strong presence in the minds of the customer.

Marketing to Customers
Re-Focusing Our Message to Address Specific Audience
Message: “Customers are our priority and we want to foster a
positive relationship.”
Channel: Distribute feedback mechanisms such as ratings,
surveys, and customer service representatives.
Tactics: Providing feedback opportunities creates a dialogue
and drives insights for potential improvements.
Goal: Create an environment where customers feel valued and
SP can gather feedback data.
Step 2: Engaging Retailers
Step 1:
Engaging
Customers
Step 3:
Promote
Sustainable
Energy
Step 1: Engage customers and inspire brand loyalty
Engage and
Electrify
Putting the Power inYour Hands

Step 2: Engage Retailers
Step 1:
Engage
Customers
Engage and
Electrify
Step 3:
Promote
Sustainable
Energy
Marketing to Retailers
Message: “We want to continue to help you grow your
business”
Channel: Sales directors will introduce licensing agreements
for customer service centers and app development
Tactics: Focusing on the costs new retailers can save and the
improvement of their customer’s experience
Goal: Increase competition in the energy sector and to
improve the quality of service for the final customers
Step 2: Develop relationships with retailers
Power the Nation,Together

Step 2: Engage Retailers
Step 1:
Engage
Customers
Step 3:
Promote
Sustainable
Energy
Marketing Sustainability
Message: “We care about finding smart, sustainable solutions
to that will lead to a better future”
Channel: Primarily through social media marketing, earned
media, and sponsorships/investments
Tactics: Making smart investments in promising technology
research and lead by example
Goal: Establish SP Group as a major player in the search for
sustainable living solutions
Step 3: Promote our brand by investing in sustainability
Engage and
Electrify
#ElectrifyInnovation #SaveAndSustain

SPARCTimeline
Enter into talks with BBP
Value Add Services
Change Management
Implementing marketing, application, value added services, and security into one key plan
2017 2018 2019 2020
Marketing
Begin personal selling of licensing to retailers
Implement social media marketing and continuous analyze
data and adapt
Plan a clear
branding
message and
compile content
Collect data on
brand perception
and current
strategies
Train sales staff
Train SM
staff
Implement V-Key
securities
Security
Draw up contract
with V-Key
Prepare for smart
meter implementation
Upkeep andmaintenance of security
Integrate cyber security
into smart grid
Application
Collect ratings
feedback for the app
Develop new features
of our application
License/white label application to retailers
Implementation of
licensed apps
Continuous maintenance of licensed application
Acquire BBP Begin expanding energy consultations
Develop pricing model and new
development processof licensing
Enter into talks with BBP
Value Add Services
Change Management
Acquire BBP Begin expanding energy consultations
Develop pricing model and new
development process of licensing
Application
Collect ratings
feedback for the app
Develop new features
of our application
License/white label application to retailers
Implementation of
licensed apps
Continuous maintenance of licensed application
Implement V-Key
securities
Security
Draw up contract
with V-Key
Prepare for smart
meter implementation
Integrate cyber security
into smart grid
Implement V-Key
securities
Marketing
Begin personal selling of licensing to retailers
Implement social media marketing and continuous analyze
data and adapt
Plan a clear
branding
message and
compile content
Collect data on
brand perception
and current
strategies
Train sales staff
Train SM
staff

SPARC Budget
$ 23,280,500 is a relatively inexpensive way to pivot our business
Budget Considerations
Total Net Working
Capital
$ 582,800,000
Total Cash & Cash
Equivalents
$ 1,630,200,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2017 2018 2019
Application Sustainability Marketing SecurityTotal Upfront Needs
Application
Development
$ 6,445,000
Sustainability
Consultants
$ 10,000,000
Marketing $ 3,325,500
Security
Improvements
$ 3,600,000

What does success look like?
Number of Licensed
Retailers
15%
Half of retailers will use our licensed and billing
services post-liberalization
Households Receiving
Energy Consultations
Growth % in
Equilibrium
By marketing and investing in sustainable power,
we will see new appliances installed in homes
Population Growth and
Energy Growth
5%
Through data analytics, we will determine if energy
growth decreases to equal population growth
SP Services Revenue
0
SP Services revenue will increase due to the
licensing and consulting services we are adding
KPI Metric Description
Number of Data Breaches
50%
By implementing stronger security measures we
hope to see zero serious security breaches

New Revenue Streams
Generate $39 million in profit by 2021
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2018 2019 2020 2021
Licensing App Fee from Retailers Installation of Sustainable technology

Risks and Mitigations
Risks Mitigation Significance
1
The acquisition may fail
Given the high failure rate of private acquisitions,
there is a risk that we may waste efforts trying to
acquire BBP.
• Explore other options such as mutually
beneficial partnership or equity stake
• Launch our own energy saving consultancy
2
Retailers prefer to create their own apps
Retailers may opt for autonomy from SP Services and
our plan to white label our may fall flat.
• Develop strong personal selling relationships to
build trust.
• Keep prices low to persuade retailers
3
Cyber security breach
As much as we can prepare, there is always a chance
that there could be a cyber security hack.
• Develop a contingency plan so we are prepared
to recover quickly from a breach.
• Create a strong brand image that it won’t affect
our sales.
4
Energy costs could increase
If If energy costs increase, then we will face
dissatisfaction among our customers.
• Continuing to extract ourselves from the retail
market will disassociate our brand from the rise
and fall of energy prices.
Probability
Impact
Probability
Impact
Probability
Impact
Probability
Impact

Additional Considerations
Government ownership interest
Limited power capacity for a growing
population
New technologies disrupting the market
Which new energy sources are important to the government that we invest in?
How can we convince people to use less energy during peak times?
Which technologies will affect the market and which will fade?

Index
Introduction
• Cover
• Agenda
Situation
• Current Situation
• Core Competencies
• Reality Check
Strategy
• Executive Summary
• Our Role in a Liberalized Market
• Project: SPARC
Implementation
• Engaging Customers
• Digital Application Improvements: 1
• Engaging Retailers
• Application Serving Retailers
• Acquire an Energy AuditCompany
• Staying Secure
• SPARCOperations
• WhoWe Are
• Brand Implementation
• Marketing to Customers
• Marketing to Retailers
• Marketing Sustainability
• SPARCTimeline
Bottom Line
• SPARC Budget
• KPIs and Metrics
• Financial Outcomes
• Risks and Mitigation
• Additional Considerations
Backup
• Alternatives
• SWOTAnalysis
• Detailed Budget
• Cost Structure of Retail Licensing
• Data Analytics
• Operating Landscape Analysis
• What Does Sustainability Mean for SP?
• Acquire and Energy AuditCompany:
Details
• Energy Consulting Service Process
• Market Share for Electricity Retail
• Total Consumption of Energy in
Households
• Electricity Consumption by Sub-Sector
• Annual ElectricityTariffs by Component
• How Energy Moves:Generation to
Customers
• The Product Lifecycle
• Technology Product Lifecycle
• RGU PerformanceAnalysis
• Sources

Recapture Retail
Market Share
- Minimize losses
- Not feasible
- Not in line with
long-term
sustainability
- Cannot compete
with low prices
- No longer the
“go-to” for
consumers
Launch In-house
Consultation
Service
- Produce new
revenue stream
- Accomplish
sustainability
- Expensive
-Take a long time
to receive return
on investment
-Create more
competitors
Develop New
Apps for Retailers
-More
customization for
the retailer
- Generate more
revenue
- Opportunities
for add-on
services
-We already have
the infrastructure
in place, so we
should use it
Focus on Electric
Cars
- Sustainability
buzzword
- High cradle to
cradle
environmental
destruction
- Require new
infrastructure
- Low revenue
generation
Alternatives
PRO
CON

Detailed Budget

Cost Structure for Retail Licensing

DataAnalytics
App Ratings
Strategic
Investments
App Approval
Developmental
Changes
Meter Readings
and Industrial
Data
Consumer
Surveys
Brand Perception
Social Media
Collection
Decisions

Operating LandscapeAnalysis
Customer Needs Our Changing Role in Liberalization
• Market size in 2018: 1.3 million non-contestable
• What do they care about?
• Affordable prices
• Options- specializing for their needs
• Customer service help when needed
• Sustainable solutions for improving society
Increasing Energy Demand EvolvingTechnology
• Sustainability initiatives
• Improved digital services
• Increasing use of electric cars
• Transition to more energy efficient lighting and
appliances
• Potential of implementing blockchain networks
• Growing popularity of natural gas and solar power
37%
Total consumption
in the last 10 years
31%
Population in
last 10 years
0
5
10
15
20
25
30
2013 2014 2015 2016 2017 2018
Number of Competitors
Decrease in SP
market share
since 2011
6%

What does Sustainable mean for SP?
Enhance the quality of life
Renewable energy sources
Goal:
Provide electricity
to enhance life of
Singaporeans
long-term Health and activeness
Invest in sustainability

Acquire an Energy Audit Company: Details
SP Group Barghest Building Performance
Market New
Service
Facilitate
Retraining
Rebrand BBP
under SP
• Earned demand and press
releases
• Market to high energy
consumers
• Retrain BBP employees to
educate them on SP Group’s
corporate profile, values, and
procedures
• We will call them SP Savers
• Rebrand them under SP Group
official logo
savers

Energy Consulting Service Process
savers
Step 1
•Receives request for service
•Can be in a household or in a business
Step 2
•Visit house or business and conduct full consumption analysis
using meter data and construction inspection
•Make recommendation on energy saving measures
Step 3
•Once agreed upon energy saving measures, customers have the
ability to request financing
•Financing is allocated
Step 4
•Installation of energy saving systems

SWOT
SWOT
WeaknessesStrengths
Threats
• Take advantage liberalization
• Introduce new revenue streams
• Acquire an energy consultancy
• E-commerce and social media
trends
• Experienced business units
• Strong existing partnerships
• Own the infrastructure
• Multiple subsidiaries throughout
the energy industry
• Good brand recognition
• Inflexible infrastructure
• Dependency on power generators
• Must adhere to government
regulations
• Competition
• Market liberalization
• Rapidly changing technology
• Environmental and cultural groups
Opportunities

Market Share for Electricity Retail

Total Consumption of Energy in Households

Electricity Consumption by Sub-Sector

Annual ElectricityTariffs by Component

How Energy Moves: Generation to Customer

The Product Lifecycle

Technology Product Lifecycle

RGU Performance Analysis

Sources
http://www.tembusupartners.com/en/index.php/singapore-energy-services-startup-barghest-building-performance-secures-seven-figure-mezzanine-funding-from-pe-firm-tembusu-partners/
https://www.spgroup.com.sg/mobile-apps
https://www.infosys.com/data-analytics/verticals/Pages/energy-utilities.aspx
http://www.straitstimes.com/singapore/environment/how-will-singapore-power-the-future
https://www.ema.gov.sg/cmsmedia/Publications_and_Statistics/Publications/SES%202015%20Chapters/Publication_Singapore_Energy_Statistics_2015.pdf
https://www.spgroup.com.sg/what-we-do/electricity-and-gas
https://www.ema.gov.sg/electricity_market_overview.aspx
http://www.straitstimes.com/singapore/electricity-tariffs-to-increase-from-april-1
http://www.temasekreview.com.sg/downloads/ins-and-outs-of-temasek.pdf
https://www.spgroup.com.sg/about-us/corporate-profile
https://www.ema.gov.sg/cmsmedia/Licensees/Electricity_Licensing/Retailer/Guide_for_Prospective_Retailers.pdf
https://www.spgroup.com.sg/wcm/connect/spgrp/ea560383-d6d8-4a92-9925-
af27cce9462b/SP+Group+Annual+Report+FY1516.pdf?MOD=AJPERES&CONVERT_TO=url&CACHEID=ROOTWORKSPACE.Z18_M1IEHBK0MOUJ20ABQK7Q593U32-ea560383-d6d8-4a92-9925-af27cce9462b-
lINZpPn
https://www.mypower.com.sg/about
https://www.spgroup.com.sg/what-we-do/billing
https://www.ema.gov.sg/cmsmedia/Licensees/Electricity_Licensing/Transmission/SP_powerassets_licence.pdf
http://www.businesstimes.com.sg/energy-commodities/potential-for-competition-electrifies-power-market
http://www.sgc.org.sg/fileadmin/ahk_singapur/DEinternational/IR/diffIR/Electricity_market_in_Singapore_2014.pdf
https://www.spgroup.com.sg/wcm/connect/spgrp/d6b37192-d4c0-4d06-a53d-7a8cb6b09630/%5B27062017%5D+SP+Group+poised+to+transform+into+power+sectors+Uber.pdf?MOD=AJPERES&CVID
http://www.reddotpower.com.sg/customer-portal-payments-user-guide/
https://www.ema.gov.sg/cmsmedia/Handbook/NEMS_111010.pdf
https://play.google.com/store/apps/details?id=sg.com.singaporepower.spservices&hl=en
https://bbp.sg/what-we-do/
https://www.glassdoor.co.in/Salaries/singapore-software-developer-salary-SRCH_IL.0,9_IM1123_KO10,28.html
http://www.itworldcanada.com/article/israels-guide-to-securing-the-national-grid/390343

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