Bringing disruptive innovation to the energy industry Charles Delalonde Head of Digital Innovation - EDF Energy R&D UK Centre

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1 Bringing disruptive innovation to the energy industry Charles Delalonde Head of Digital Innovation - EDF Energy R&D UK Centre

2 "We used to write this down by saying, 'move fast and break things.' And the idea was, unless you are breaking some stuff you are not moving fast enough. - Mark Zuckerberg

3 Key Our Learnings context Accelerating innovation at EDF Energy R&D UK Centre: new ways of working for a customer-centric digital strategy - 5th November IGNITE Conference 2014

4 Le About marché EDF de Group l énergie UK : concurrentiel et digital EDF Group - 40 million business and residential customer accounts - 160,000 employees in the world EDF Energy (UK) - Largest producer of low-carbon electricity - 6 million business and residential customer accounts - 15,000 employees across the UK EDF Energy R&D UK Centre - 70 energy / digital experts (including 10 PhDs) - 5 strategic university partnerships: UCL, Imperial College London, University of Bristol, University of Manchester and University of Strathclyde

5 Le The marché UK energy de l énergie market: fragmented UK : and competitive concurrentiel et digital SWITCH 2015 : 28 days 2018 : same day RESIDENTIAL CUSTOMERS 50 million Big 6 + new entrants British Gas : 20 million SSE : 10 million EDF Energy : 6 million NEW ENTRANTS 4 million of customers in 5 y. First Utility 1Mo customers AVERAGE BILL 1,264

6 The utility sector: from conventional to digital MANDATORY IN HOME DISPLAY 6 million displays Opportunity: CAD - real time data - cross-platform SMART METER Must be deployed by the supplier how to reduce this cost? Risk: 400 data access to DCC CONNECTED HOME British Gas: 200K hive clients Opportunity: Energy services

7 Digital is Great (Britain)! UK digital economy 269,695 companies around 14.4% of all UK companies Internet economy as a percentage of 2016 GDP 12.4% of UK GDP from Internet economy compared to 3.4% in France 27% of job growth in London 42% comes from the digital sector The UK accounts for one third of EU app revenues

8 Le EDF marché R&D UK de Digital l énergie Innovation, UK : the WHAT and HOW concurrentiel et digital EDF Energy R&D Built a dedicated Digital Innovation team formed of data scientists, developers and designers HOW Digital Factory An internal innovation process to accelerate the rollout of digital products and services 1 Digital Immersion An environment to transfer digital skills and practices for EDF Group and the wider digital community 3 Digital Accelerator A framework to engage with the UK startup ecosystem and reduce time to market for innovation 2 WHAT

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14 Delivering value from the generation to the customers Simple access to daily safety messages Automated meter reading Design EV charge points and receive a quote Visualising upcoming wind farms with augmented reality Training evaluation and feedback Monitor electric and gas consumption. Generation Employees Customers

15 One example: seeing is believing! reinventing infrastructures acceptability

16 Acceptability in 1886 Fixed design or scenario Weather effects absent Predefined viewpoints An overall impersonal experience Paris 1886

17 Acceptability in 2015 Fixed design or scenario Scotland 2015 Weather effects absent Predefined viewpoints An overall impersonal experience

18 What is augmented reality? AR Superimposes graphics, video, 3D objects onto real time environments adjusting to device orientation and perspective

19 Demo time Bringing disruptive innovation to the energy industry Charles Delalonde Source: - EDF Energy R&D UK Centre

20 Augmented reality to reinvent infrastructures acceptability WORLD PATENT PENDING WO A1 Users: Residents near proposed offshore wind farm and project stakeholders Value proposition: Step change in visual impact assessment and infrastructure project visualisation Test weather conditions and different design Technology: Cross Platform (Adobe AIR) Remote CMS for 3D models Challenges: Combining geolocation, accelerometer and wind farm position data.

21 #Everyone #Everywhere #Everything WORLD PATENT PENDING WO A1 Presentation CAFFEET EDF Energy R&D UK Centre

22 Augmented reality to reinvent infrastructures acceptability Cost Daily Safety Message Daily Energy Message Daily Training Message Projects / Value

23 Le EDF marché R&D UK de Digital l énergie Innovation, UK : the WHAT and HOW concurrentiel et digital EDF Energy R&D Built a dedicated Digital Innovation team formed of data scientists, developers and designers HOW Digital Factory An internal innovation process to accelerate the rollout of digital products and services 1 Digital Immersion An environment to transfer digital skills and practices for EDF Group and the wider digital community 3 Digital Accelerator A framework to engage with the UK startup ecosystem and reduce time to market for innovation 2 WHAT

24 Startup accelerator another model for digital innovation EDF Energy gets Rapid innovation government funded pilot: Augment the in-home display 6,000 startups receive a brief 60 answers 3 pitchs 1 winner Startup gets Data Capital 35K Mentoring Accelerators: open, competitive, fixed-term programmes

25 Learnings from our digital journey Internally with Apps Express In-house tech skills are indispensable for pushing (incremental) innovation Minimum viable products and iterative developments are hard to sell Industrialisation of trials to enduring solution is costly and challenging Well intentioned processes stifle digital projects and innovation Don t underestimate IT Ops/governance time and cost in digital projects total cost of ownership! Externally with startups Define your IP boundaries at the start Facilitate the interaction between the business and the startups Leverage public funding (IC Tomorrow, Innovate UK, H ) You get the end result but you don t get the journey Ensure the digital transplant actually works internally!

26 Le EDF marché R&D UK de Digital l énergie Innovation, UK : the WHAT and HOW concurrentiel et digital EDF Energy R&D Built a dedicated Digital Innovation team formed of data scientists, developers and designers HOW Digital Factory An internal innovation process to accelerate the rollout of digital products and services 1 Digital Immersion An environment to transfer digital skills and practices for EDF Group and the wider digital community 3 Digital Accelerator A framework to engage with the UK startup ecosystem and reduce time to market for innovation 2 WHAT

27 Next step: how to inspire the next generations? Deliver innovative hackathons to promote STEM subjects to teenagers

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29 Bringing disruptive innovation to the energy industry 1 The energy market is evolving from conventional to digital 2 Digital transformation must be internally led yet connected to academia and startups 3 Digital innovation happens with relevant tools & expertise Charles Delalonde Head of Digital Innovation charles.delalonde@edfenergy.com

30 Emulate the startups world: culture, tools and skillset Experts: UI, UX, augmented reality, machine learning and big data Pair Coding R&D HACKSHOP Proofs Of Concepts New skills + team building ios development Project management Collaboration Communication

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