Ohm life final
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Transcript of Ohm life final
http://www.ohmlife.net
Final Presentation
Amit Kanda
Raghu Kopalle
Joel Minton
Michael Ruehlman
hmLife
Simplify Home Energy Management
Home energy management
is complicated and
confusing…
Our service-based approach is
easy and convenient
hmLife
Massive Market
Opportunity
50 M Residential
Customers
(of 130 M total US
households)
$750 M market
opportunity by
2015
Amit Kanda
Product Manager, Brocade
•Product alignment with emerging trends,
penetrating high impact growth markets
•Business Development, Product
Management and Marketing
Raghu Kopalle
Product Development,
and Program Management, Juniper
Networks Inc.
•Enterprise branch office products that
integrate routing, switching, WLAN and
security features
•Product Development, Technical marketing
and Global management in
telecom/networking markets
Joel Minton
Director of Fashion
Technology at eBay Inc.
•Data driven platforms driving extensive
value across eBay Inc.
• Internet Marketing, SEO, Big Data, and
data driven optimization.
Michael Ruehlman
Co-founder of BrightGrid Renewable
Energy Finance
•Channel strategy and structured finance
•Traditional and emerging distributed energy
and power markets
Team Members hmLife
Business Model Canvas Version 1 hmLife
Energy efficiency
rating agencies,
auditors and utilities
Household equipment
manufactures
Data analytics
algorithm
development
Software platform
Alliances to get initial
data set.
Energy efficiency
awareness leading to
cost savings and
value appreciation.
Pre-qualified and
searchable target
market segment.
Mass proliferating of
energy scores.
Privacy, community,
ease of usage.
<Two Sided
platform> Home
owners (non paying
customer)
Business side
customers (Paying
customer)
Providers/retailers of
energy efficient
goods/service
Sources of energy
usage/efficiency data
Platform equipment
and management
Human resource
Home owners - Direct
via internet
Business side – Direct
or indirect
Platform development costs
Channel development and advertisement costs
Incentives to the retailers, energy auditors, builders etc
[Business side] Origination/transaction fees, search fees
Target advertisement on the website
What We Did hmLife
Goal: Verify Initial
Hypothesis
• Consumer and Contractor
Value Proposition
Action: Survey Residential Customers
• Online survey
• Face-to-Face interviews
Action: Survey Contractors and Distributors• Inbound calls
• Surveys
Action: Survey the Market for Existing Algorithms
• Berkeley Energy and Resources Collaborative LBNL
• Home Energy Saver
• Home efficiency scoring algorithm homeenergysaver.com
• Not well informed energy consumers
• Motivated by net savings, esp. when making “big ticket” purchases
• Driven by social networking, monetary and social incentives
Initial
Customer
Hypothesis:
Maximum Payback Time Horizon
Customer Buying Preference
Customer Value Drivers
What We Found hmLife
Residential Homeowners:
Do not understand their energy bill
Incented by monthly ~25% savings
Do care about environmental impact
Skeptical about enhanced home values
Distributors and Contractors:
Will pay for pre-qualified homeowner leads
Do not spend on advertising
Value brand, convenience and quality of
support
What We Did hmLife
• Selected US DOE’s Home Energy Score (HES) ✔ as a proven energy scoring
methodology piloted in thousands of households!
• Continued talking to remaining players in Energy Efficiency Market value chain -
Partners (5), Contractors (12), Distributors (15), and our mentor from clean energy
industry to understand
• Customer segmentation based on energy scores and the value of a pre-qualified
customer base
• Consumer perception and spending preferences for energy efficiency
upgrades
• Retail channels through which customers prefer to evaluate and upgrade
• Channel relationships and partnerships in the green technology industry.
• Built Ohmlife.net website that shows energy heat map and drives excitement among
customers
What We Found hmLife
• Customers do not like to answer long questionnaires as part of their home profile
creation. They would like to the energy saving experience to be a simplified 3-
step process:
• Step 1) Analyze – Gives their current energy usage, along with a energy score
comparison with neighbors
• Step 2) Upgrade – Provides recommendations for improving efficiency and
price-based options
• Step 3) Realize – Allows customers to monitor their reduced bills over time to
realize their $$$ savings
• Increased home values and significant cost savings (>25%) continue to be
drivers in investment of time and energy.
• Neither customers or distributors want to pay subscription or upfront service
fees
• Building a financial model is critical to understand our value prop to respective
consumer segments
Where We Ended Up hmLife
• Ohm-life, instead of being a 2-sided intermediary platform or a platform with a subscription-
based revenue model, will have much better acceptance as a one-stop affiliate platform and
provide a seamless experience to customers.
• Providing an end-to-end experience is vital.
• Collaboration with other established channels (Zillow, Amazon, Lowes) can really help
• Consumers love to do energy analytics with easy-to-use web interface and healthy “competition”
between consumers by leveraging social networks (Facebook, Google+).
• Consumers are comfortable with online purchasing and financing, but must be reliable
What we learned
Is this a viable business?
• Viable business in under served market
• Significant market capture opportunity. Question becomes: when does mass adoption occur?
Will pursue after class?
• We fundamentally believe in our product and want to pursue this opportunity
• Will require “taking the big leap”
Business Model Canvas Version 1 hmLife
Energy efficiency
rating agencies,
auditors and utilities
Household equipment
manufactures
Data analytics
algorithm
development
Software platform
Alliances to get initial
data set.
Energy efficiency
awareness leading to
cost savings and
value appreciation.
Pre-qualified and
searchable target
market segment.
Mass proliferating of
energy scores.
Privacy, community,
ease of usage.
<Two Sided
platform> Home
owners (non paying
customer)
Business side
customers (Paying
customer)
Providers/retailers of
energy efficient
goods/service
Sources of energy
usage/efficiency data
Platform equipment
and management
Human resource
Home owners - Direct
via internet
Business side – Direct
or indirect
Platform development costs
Channel development and advertisement costs
Incentives to the retailers, energy auditors, builders etc
[Business side] Origination/transaction fees, search fees
Target advertisement on the website
Business Model Canvas Version 3 hmLife
Auditors
Affiliate Providers
Manufacturers and
distributors of home
hardware
Contractors
specializing in
energy retrofits
Analyze: Calc
energy score
Upgrade:
Recommend
upgrades
Realize: Monitoring
Simple Experience
Mass proliferation of
energy scores
Net zero cost for
energy
improvements
Positive
environmental
impact
An end-to-end
energy saving
experience over time
Home owners
Renters
Ohmlife employees
Public Resources -
Energy Star, Utility
companies, LBL
Home Energy Score
Paid Marketing
Direct Web Traffic
Social Websites
Platform development costs
Channel development and advertising costs
We take a small affiliate cut of every energy efficient
appliance and hardware purchase.