Institute for Regulatory Policy Studies Technology as a driver of Innovation October 23, 2014

Transcription

1 Kevin Lauckner Director Business Development Smart Grid Solutions Institute for Regulatory Policy Studies Technology as a driver of Innovation October 23, 2014

2 Business Overview Great Positions In Good Industries Honeywell developed the first autopilot flight controller (1914), first commercial weather radar system (1954), first business jet turbofan engine (1975), and is still the leader in developing revolutionary technology for aerospace today. Honeywell pioneered automotive turbocharging 60 years ago and remains the industry leader launching, on average, 100 new turbo applications globally each year. (2013 Sales, $B) Honeywell is the leader in gas detection, fire systems, personal protective equipment, building controls, home comfort and security, and scanning and mobility. Honeywell s technology is used to produce more than 60% of the world s gasoline, 67% of the world s paraxylene (a precursor for polyester), and 85% of the world s biodegradable detergents. Highly Diversified, Technology Driven Industrial Company 2

3 Energy Efficiency and Clean Energy Generation 3

4 Future utility customer service model Strategic issues Segmentation/marketing reflecting changing expectations Information/advanced metering- expect information and services to be provided anywhere and anytime Culture more flexible more customer focused Sourcing/Labor- changing utility workforce demographics Cost recovery cost-benefit analysis will be rigorous and more intensive than ever Standardization - lot of room for standardization eg. developing greater plug and play product and capabilities across utilities Source: Energycentral, Dec 06 4

5 Customer service trends According to JD Power Satisfaction among business and residential customers are increasing but many of those utilities that face flat or declining scores face challenges with customer service Customer 1. expectations Super storms are increasing, particularly residential as they interface 2. Increasing with other regulatory service providers complexity Satisfaction 3. is More lowest data among and analysis small-business customers 4. Proliferation of mobile devices and smart grid 5. Utility technology changes Source: JD Power 2014, ifactor consulting 5

6 For consumers, technology on their mind for a long time! Family Technology Ownership of Home Management Devices and Systems Programmable thermostat Outside motion detectors Home security system Zone temperature control In-ground sprinkler system Programmable Light controls Electronic door strikes Weather sensore Home automation system Other None 19% 18% 11% 15% 18% 10% 6% 9% 11% 8% 10% Total market (weighted) 18% 17% 23% 22% 30% 38% 43% 48% 49% 43% Primary market 0% 20% 40% 60% 80% 100% Q84 (n=153/100). CABA % A majority of primary market consumers own a programmable thermostat. Outside motion detectors, home security systems, zone temperature control and in-ground sprinkler systems were also commonly mentioned. While no single home management device is owned by a majority of total market consumers, outside motion detectors and programmable thermostats were mentioned most often. 6

7 Lot of interest in HEM and smart thermostats Source: Navigant, Smart Grid Consumer Survey

8 More interest Source: 2014 Poll CleanEdge 8

9 Lot of connectedness Lot of interest in HEM and Smart Thermostats Source: TigerDirect 9

10 Some things are changing, maybe?!? Wifi 10

11 Some things we are pretty certain on This year, mobile Internet usage will take over desktop Internet usage ~70% of homes already have Wi-Fi 63% of homes have smartphones and that number grows daily 11

12 and if we can deliver on the 3 Cs COMFORT ENERGY EFFICIENCY CONVENIENCE CONTROL 12

13 Developed a broad platform for different needs All are Wifi 13

14 A great customer experience at all touch points 14

15 What connected owners do One thermostat equals as many as 4 smart phone or tablet downloads = 15

16 What connected owners do Over 80% of the interaction is through the app 16

17 Homeowners want Comfort, Convenience and Control Consumers rapidly adopting Wi-Fi Thermostats Driven by comfort and control NOT energy Over 80% of interactions via the mobile app App is the highest and most rated thermostat app on itunes and Google Play and Energy Efficiency is coming along for the ride Honeywell Wi-Fi stats TWICE as likely to be in schedule mode Demand Response enabled out of the box 17

18 Energy Savings for U.S. 25% Percentage energy savings and annual cost savings per home for US normal weather 20% 19.4% 15% 10% 5% 4.5% 6.6% 0% Heating Cooling Total Source: Cadmus study 18

19 Future Increased grid complexity Empowered customer that is not confined by traditional rules Leveraging technology and customer intimacy Changing business models Impacting traditional go to market strategy New market entrants Increased data and immediacy New opportunities behind the meter, distributed grid 19

20 Convergence between Building Systems and IT Systems Source: CABA s North American Intelligent Buildings Roadmap

21 Convergence for consumers HON 21

22 Future Millennial Generation Young adults expect to be not only engaged with their utilities in the future, but also look to the utility to support a seamless mix of consumer technologies, devices and interactions on the customer s terms. The glue of the future customer experience is a focus on design aligned with customer lifestyles. In other words, for the millennial generation, the future customer experience represents the digitization of the utility customer experience, and ultimately, a very different relationship between the customer and the utility from today. DEFG 22

23 Thank you Kevin Lauckner, Director Business Development