The Smart Home (or Connected Home) market is starting to mature, with an ecosystem of multiple vendors appearing. The consumer is ultimately paying for all Smart Home services, so how do we deliver real value to them. Introducing CEDIG, Smart Heating and Smart Data.

1. Realising the Value in Smart Homes
Pilgrim Beart
November 2011
AlertMe.com Ltd
www.alertme.com
Tel: +44 (0)207 993 9500

2. Today
• Introducing AlertMe
• Where’s the Value in Smart Homes?
• Market is maturing into an ecosystem
• Introducing new products available on our
platform:
– Smart Heating
– Smart Data

3. Market is maturing
• Previous CIR events focussed on:
– How consumers are driving the Smart Home
– Releasing the full potential of Smart Meters/Grid
– Smart Home management platforms
– Coopetition in an emerging market
• Now the market is maturing
• So today, focus on value

4. Introducing AlertMe
• A mass-market platform for the Smart Home
– Keeping us all connected to our homes
• We’re a service provider
– with Products and Apps too
• 75% have broadband, 50% have Smart Phones
• Smart Home Killer Apps are:
– Home Monitoring
– Home Energy Management
– Smart Heating

5. Where’s the Value?
• The consumer’s perception of value
is what drives value for everyone else
• The Consumer judges value when they pay:
– Directly
• buying X for full price (up-front, or monthly)
– Explicitly bundled
• choosing a service option because it contains X
– Surcharges and Taxes
• accepting that X is a common good

6. What do consumers value?
Insights from delivering to UK consumers for 4 years
Consumers’ top three goals are:
1. Saving money
2. Control
3. Peace of Mind (Relax)

7. Energy Monitoring – Offline or Online?
OPTION 1: A Free Energy Display
Your energy supplier gives you a colour display which you can put
somewhere convenient in your home, such as on your kitchen
worktop. It shows at a glance how much electricity you’re
consuming right now, and gives you a running total of spend so far
this week or month.
OPTION 2: Free Online Energy access
Your electricity supplier gives you a service which lets you check
your household energy use any time you want on the internet,
using your own computer, or your computer at work, or your
mobile phone or tablet – all for free. It helps you budget by
predicting your bill, and gives you specific advice on how you can
save energy, for example by showing you which appliances are using
the most energy, and how to use them more efficiently. You get
more detailed information than Option 1, but you do need to log on
to your computer or use an application on your Smartphone to
access the information.

8. Energy Monitoring – Offline or Online?
Given the choice, which one would you choose?
Option 1 -
40%
Display
Option 2 -
40%
Online
Depends 12%
Neither 8%
UK market survey by Critical Research, May 2011. Sample size; 1,224

9. CEDIG
CEDIG: Consumer Energy Display industry group
• Comprises majority of UK energy display manufacturers
• “Energy Display” includes:
• In Home Displays (IHD's)
• Real-time online user interfaces (UI's)
• Smartphone Apps
• Goal : Turn real time energy data into value for the consumer

10. What do channel partners value?
Why do channel partners want to deliver the Smart Home?
• Utility:
– Maximise benefits of smart metering
– Sell Smart services (energy & other)
• Telco:
– Stop being the dumb pipe Smart
– Create an ecosystem to sell services Home
• Retailer:
– Launch smart platform
• Before being disintermediated by manufacturers
• Appliances getting connected 1:1
• All this benefits consumer (unified solutions)
Wildcard: When will a big b2c player like
Apple or Google enter the Smart Home?
iPod music player Nest thermostat
by Tony Fadell by Tony Fadell

11. The Smart Home – towards simplicity
1. Visibility
2. Control
3. Automation
Unburdened customers
Early-majority market
Maximised revenue

12. Ecosystems

13. The emergence of an ecosystem
• Early players built end-to-end platforms
– Platform + Devices + Gateways + Apps + UX
• Now an ecosystem is emerging:
– Specialists focussing on their areas
– Some grid-centric, some consumer-centric
• Ecosystems need platforms
• Platforms need standards

14. Ecosystem Connectivity
TV STB
Router
ZigBee HA IP
et al
Heating
Hub
Gateway
In-home
Devices Energy
SMHAN: Service
ZigBee SE Platform User
et al Experience
Monitoring IHD
Smart Data
Analytics
Meter

15. Ecosystem architecture
Devices Apps
Keyfobs Home
API API Monitoring
Motion
PV
Heating
Home user
Energy
experience
EV
IHDs
Smart
Smart Heating
Meter
Home Cloud

16. AlertMe Smart Heating
WattBox acquisition

17. The opportunity
• UK heating controls
of all UK
energy is
are in the dark ages
consumed in
homes
of home • They don’t optimise:
energy goes
on heating & – Efficiency
hot water
– Comfort
– Consumer empowerment
• (too complicated)
• 8m homes don’t even have a
room thermostat
• Modern programmable
thermostats too hard to
understand (like 1980’s VCR)
Ref: TACMA and the EST study http://www.publications.parliament.uk/pa/cm201011/cmpublic/energy/writev/m32.htm

18. The solution: WattBox™
More Hot Water Less Heat More Heat
User instructions
Step 1: Ignore it
Step 2: Press one of 3 buttons (exceptionally)

19. WattBox ™ Smart Heating
Modern programmable SAVINGS
20
thermostat (fixed time &
temp pattern)
WattBox learns and
15
reacts to occupancy
and your physiological E
G
and psychological N L V N
E
needs 10 I U E I
T
G N N G
H C I H
U T
T H N
P
G
5
Outside air temperature
WattBox
improves
all three

20. AlertMe Smart Data
Platforms are intrinsically about data

21. Extracting Value from Data
Data Information Value
(of many types) Inferred from the data Driving revenue
Live, and stored in
data warehouse
e.g. House Temperatures … are cooling fast at night … so buy (sell) insulation

22. AlertMe Smart Data
• We approach data bottom-up
– We don’t just collect a mass of data, then look for correlations
– We DO understand what real consumers want, as individuals
• Leveraging our 5 years of deep consumer insight
– Extract the most relevant insights Sell Data
• Using patent-pending statistical algorithms
– Take customer through engagement journey
• Gas analytics as well as electricity Behaviour Behaviour
Change Analytics
– Leverages WattBox intelligent heating IP personal, simple, actionable
• Fully managed, turnkey solution
– On scalable platform (already managing billions of datapoints)
• Deliverable through legacy means, as well as modern:
– Offline (paper bills and Email)
– Online (web & SmartPhone)
– Interactive (e.g. alerts)
• Team hails from Autonomy and Lysanda

23. Smart Data
Energy data Smart Data Engine Customer Value
Pre-smart meter
OCCUPANCY
and Smart meter MODEL
In-home data
THERMAL
LOSS MODEL
Customer-supplied data
GAS
ANALYTICS
APPLIANCE
MODEL

24. Data is a strategic asset
Convert it to tangible value to boost Brand, sales,
retention and acquisition - and reduce OpEx too
Value from Data Benefit to customer Benefit to channel
Personal energy advice New opportunities to save Customer values your
money and regain control offering
Spotting opportunities to Improved household Increased sales
cross-sell and up-sell efficiency
(e.g. insulation, or more efficient appliances)
Hardware Diagnosis Quicker time-to-fix Reduced call-outs
(pre-emptive)
Service issue resolution Self-serve Reduced propensity-to-call
Remote Support Better care Lower cost-to-serve

25. Smart Data in action
You spent £200 heating an empty home last
winter
Automatic heating gives 20% savings on your gas bill by only
heating the home when you are there.
You can save £220 by insulating your home.
Your house loses heat very quickly when your boiler is
off. Check and see if you are eligible for free
insulation, to help cut your gas bill.
Your boiler needs servicing
Your boiler is taking too long to turn on which is a sign
it needs to be serviced. Take our ThermaCare service
and leave it to us.

26. Realising the Value in Smart Homes
Pilgrim Beart
November 2011
AlertMe.com Ltd
www.alertme.com
Tel: +44 (0)207 993 9500