Tag Archives: services

www.infosysblogs.com

Utilities need to do their Starbucks transformation

www.infosysblogs.com

www.infosysblogs.com

Historically, our economy focused on extracting raw materials (gold, wood, cow and so on). Willing to transform these raw materials for some end-use purposes (luxury, transport, feed and so on), firms started selling goods as more or less differentiated products (jewels, boats, steak and so on). Then, firms move to services (fit jewels and clothes, offer mobility, serve hamburger in your favourite fast-food restaurant and so on). The natural evolution is to provide experience to end consumers (feeling pretty, enjoying a nice trip in a train where you can dance like in a club, enjoying tasty food in a very practical environment).

SmartEnergyEfficiency_HardGraft

Nobody wants to pay for smart home stuff

SmartEnergyEfficiency_HardGraft

Hard Graft

Citing Jesse BERST, “utilities could get sucked into the smart appliances trap just as several of them fell for the in-home display idea. It doesn’t make sense for utilities to subsidize products that consumers don’t want. And consumers don’t want smart appliances.” Indeed, everybody talk about smart stuff, dozens of startups try to break into the smart home market, and no smash hit is coming.  Why?

As Beth BUCZYNSKI said, “are smart appliances worth the big investment?” It seems that the industry hasn’t yet provided a killer app everybody would be happy to pay to have it.