Pilgrim Beart's presentation to CIR conference 23 June 2011

1. How Consumers are driving the Smart Home
Pilgrim Beart
Founder, AlertMe
Smart Grids & Cleanpower 2011
23-24 June Cambridge UK
www.cir-strategy.com/events/cleanpower

2. Today
• State of the Market
• What do we know?
• The big picture
• Latest market research results
• State of the Art
• The Smart Home
TODAY

3. State of the Market

4. State of the Market
• Climate change and energy security raise significant
challenges for everyone:
• Government
• Energy utilities & Networks
• Consumers
• Challenges include:
• UK committed to 50% CO2 savings by 2025
• DECC estimates that Smart Meters will drive only 2% savings in the home
• Utilities caught in pinch of maintaining profits while selling less energy
STATE OF THE MARKET
• Network operators facing increasing variability of supply
• Consumers seeing more pain as energy prices rise, particularly in these
tough economic times

5. Consumer can be a big part of the solution
• 30% of all consumption happens in the home
• Cost increasingly MOTIVATES consumers to save energy
• Now if we can just EMPOWER them, they can be a big
part of the solution.
Motivation – Empowerment = Frustration
STATE OF THE MARKET
Motivation + Empowerment = Action!

6. 3 Steps to Empowering the consumer
• Show where the energy is going
Inform • Towards itemised energy bills
• Turn off consumption when house is empty
Control • Easy-to-use controls (e.g. online)
STATE OF THE MARKET
• Reduce management burden
Automate • It just works: saves money, increases comfort

7. Evidence from market
• Specific interventions studied by academia & commerce
• In-home displays, intelligent heating controls, bill messaging etc.
• But mainly only at small scale (qualitative)
• If testing 15% saving in home energy…
• then studying e.g. 30 homes gives error bars larger than the effect
• (even though the effect is ~£4.6bn/year nationally!)
• So need more studies at the scale of 1000+ homes
• With control homes alongside
• DECC, LCN fund etc. now planning scale trials
STATE OF THE MARKET
• Biggest-scale so far is CERT funding for in-home displays
• Has so far pushed ~1.5m real-time displays into homes
• 6% of households
• Evidence that they do drive some behaviour change
• But how many are still in use?

8. Consumer market generally
• What do consumers want?
• Online is huge enabler
• Be where consumers already are (e.g. social)
• Appearance of Smart devices in the home
• Back to simplicity
… so the Consumer is going in a particular direction: go with it
• Analogy:
• We used to sit back and passively consume whatever was broadcast for
our delectation.
STATE OF THE MARKET
• Now we:
• Actively participate in choosing what to watch
• Can do so wherever we want
• Even generate content ourselves, e.g. YouTube, Facebook etc.
• Likewise Energy and the Smart Home

9. Evidence from market
• Evidence from AlertMe B2C customers
• Every AlertMe customer is online
• Rich, engaging dialogue with them:
• Analysing how they use the service
• Day-to-day customer service
• Engaging in surveys and focus groups for deeper understanding
• To achieve quantitative rigour, we commissioned a large
piece of market research by Critical Research.
STATE OF THE MARKET

10. Market Research
Latest results

11. Consumer Market Research - May 2011
• Sample size: 1224 UK Homeowners
• Sampling errors on a single sample
• For 95% Confidence Intervals:
10% / 90% +/- 1.5 percentage points
25% / 75% +/- 2.2 percentage points
50% / 50% +/- 2.5 percentage points
MARKET RESEARCH

12. Awareness of Terminology
“Do you know what is meant by the phrases
„Home Energy Management‟ & „Home Monitoring‟?”
Yes 51
No 22
Not sure 27
(%)
Base: 1,224 panel members

13. Awareness of Terminology
Definition:
• Home Energy Management provides visibility, control, and
automation of home energy (electricity, gas, and heating)
online anytime, anywhere. It uses real time two-way
communication allowing consumers to manage and control a
wide range of activities in the home over the internet and via
their Smartphone. Users would save up to 20% on their energy
bills, reduce their carbon footprint, and provide greater
efficiency and convenience.
• Home Monitoring provides security tools such as cameras,
motion sensors, door sensors, and window sensors with
automation and „presence‟ for immediate notification by text
MARKET RESEARCH
message of activity in your home to give you peace of mind.
• The two products together form the Connected Home.

14. Awareness of Terminology
“Do you now understand what is meant by the phrases „Home Energy
Management‟ & and „Home Monitoring‟ and „The Connected Home? “
Yes 94
No 2
Not sure 4
(%)
Base: 1,224 panel members

15. Rank Order of the Key Attributes
“Please rank the following attributes of the „Connected Home‟ system in
terms of appeal”
% Ranking % Ranking
First Last
Helping save money 75 42 1
In control of your home 59 15 3
Peace of mind 46 17 7
Convenience & simplicity 34 6 8
See and understand 32 6 11
Reduce carbon footprint 25 5 29
Latest technological innovation 13 3 36
0 20 40 60 80 100
%’age giving Top
Three Ranking
Base: 1,224 panel members

16. Which Connected Home benefits do consumers value?
Safety/Fire Convenience
Notification Other
Heating
Easier to use
Save Money
Security
notification
Save energy
Peace of
Control
mind Anywhere
Accurate &
More
Live Info
Control
Base: 1,224 panel members

17. Home Energy Management
• See a live view of your home electricity and gas consumption
• See it on an in-home display, on the web, your PC, or on your Smartphone or tablet
• See how much your electricity and gas is costing you, and predict your bill
• By identifying where appliances waste money, this could save you £120 per year on your utility bill

18. Home Energy Management - initial interest
“Having read / looked at the information,
how interested are you in the idea of Home Energy Management?”
Extremely Interested 16
Very interested 27
Fairly interested 36
Not that interested 12
Not at all interested 7
DK / No opinion 3 (%)
Base: 1,224 panel members

19. 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.

20. Energy Monitoring – Offline or Online?
Given the choice, which one would you choose?
Option 1 - Display 40
Option 2 - Online 40
Depends 12
Neither 8
(%)
Base: 1,224 panel members

21. Web or SmartPhone?
“Given the choice, would you prefer online access to your „Connected Home‟
system via a Smartphone or through the Web?”
Smartphone 16
Web 33
Both of these 38
Don't know 12
0 10 20 30 40 50 60
(%)
Base: 1,224 panel members

22. State of the Art
The Smart Home today

23. What is AlertMe?
AlertMe is a single HAN solution for the SmartHome, providing an affordable, expandable and open
platform that gives consumers:
Microgeneration • Visibility and personalised information
Management
• Remote control anytime, anywhere
• Intelligent automation to suit their lifestyle
Safety &
Security
Applications
Wireless
Control
Heating OSGi HAN *
messaging
Control
Data Home Energy Audit
processing
Appliance Hub Gateway Real-time
Control
Broadband data capture
Smart
Meter
Data
Open API
EV Charging
& Management
Partners
* OSGi Gateway enabling multiple Home Area Network (HAN) wireless protocols

24. How it works
• AlertMe provides an OSGi gateway using multiple communications protocols to connect and control a
broad range of devices in the home, both from AlertMe and 3rd parties. Using broadband connectivity
via the AlertMe platform, users can access a wide range of cloud based services
• The platform also allows further device and service innovation such as Telecare and Smart Metering
• Multiple device drivers from the „Device Store‟ and services through the „Applications Store‟
Sensors
Cameras
Detectors
Intelligence / awareness
Thermostats through Device Abstraction
Appliances Driver
Smart Plugs
‘DEVICE STORE’
download
Driver Repository
Device Personalisation
Management & Rules Setting
to partner
OSGi SDK
Smart Meters
Smart Grid
AlertMe OSGi Gateway
STATE OF THE ART
‘APP STORE’
AlertMe and Partner apps
E – Health Application Device Customisation
Devices download
Other 3rd
Party Devices

25. Services: SmartEnergy
Easy to use applications that enable consumers to take
control of their home
• Tracks home energy use in real time
• Bill prediction and budgeting
• Home internal & external temperature
• Analytics for personal advice to reduce bills
• Appliance level tracking
Washing
Machine
Dog heater
STATE OF THE ART

26. Services: SmartHeating & SmartControl
• SmartHeating - Easy remote control of home heating
• Simple understandable control of home heating system
• Control from anywhere – mobile, online, in the home
• Save energy – only have the heating on when you need it
• SmartAppliances - Remote control of home appliances
• Schedule switch on/off times for appliances
• Presence-detecting key fobs control appliances
automatically
• Monitor energy cost & consumption of major home
appliances
Home Energy services & potential consumer Savings
STATE OF THE ART
Awareness (near real-time use & cost) between 5-10% saving
Automation (climate control, lighting etc.) up to 40% saving
OnWorld Smart Energy Homes Q4 2010

27. Services: SmartMonitoring
• Self–install home monitoring system for peace
of mind
• Simple to install and use
• Secure: battery & GPRS backup
• Motion & contact sensors
• Video monitoring: fixed, pan & tilt, outdoor
• Safety applications: Smoke, Gas, CO, flood detectors
• SMS, call & email alerts
• Option to link with professional monitoring centre
STATE OF THE ART

28. Routes to Mass Market
In addition to selling direct to consumers, AlertMe partners with companies with large customer bases
to deliver maximum awareness and engagement. Telecommunications companies, utilities, OEMs and
retailers all have motivations for competing in the smart home arena.
STATE OF THE ART
UTILITY CHANNEL TELCO CHANNEL RETAILERS DIRECT
External pressure to meet Looking to next value added Big box and home Early adopters -
challenging targets services for ARPU growth improvement stores moving consumers who want
into energy saving and to take independent
From a necessity into an An explosion of data opens Smart Home technology control of their
opportunity for customer e-commerce opportunities
loyalty energy use

29. Smart Home evolution in 2011 & 2012
• Openness = Standards
• Bringing it all together
• Giving consumers choice
• Allowing innovation
• Ecosystem emerging
• IP, OSGi, ZigBee, …
STATE OF THE ART

30. The Smart Home: Sandpit for the Internet of Things?
Open HAN Open WAN Open Platform
Open Open Cloud User
Things in home Gateway Services Experience
From a standalone proof of concept … to standards-based open platforms
• Many „smart‟ devices in the home • Platform-based
• Becoming internet-enabled, but 1:1 & M2H • Open standards, 1:many and M2M
STATE OF THE ART
IoT

31. How Consumers are driving the Smart Home
Pilgrim Beart
Founder, AlertMe
Smart Grids & Cleanpower 2011
23-24 June Cambridge UK
www.cir-strategy.com/events/cleanpower