WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR JUNE 2014

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1 WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR JUNE 2014 Verdantix Ltd Reproduction Prohibited.

2 WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR June 2014 EXECUTIVE SUMMARY Licensed Content This is one in a series of Verdantix reports that analyses software and energy services designed for a specific energy domain, such as data centres, retail stores or commercial offices. To hear more about Wipro EcoEnergy s proposition for retail stores, Verdantix attended a product demonstration and interviewed members of the Wipro EcoEnergy team. The Wipro EcoEnergy proposition is a suite of energy management services leveraging Wipro s core capabilities in systems integration and data management. It is commercialized as a managed service, and has attracted a core of clients since its launch. Wipro EcoEnergy is currently working with retail stores across Europe, India and North America in sub-sectors such as grocery retail and home improvement. In a competitive marketplace, Wipro EcoEnergy should focus on building and advertising its track record with retailers to prove the value adding potential of technology-led solutions. TABLE OF CONTENTS WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR Wipro EcoEnergy s Retail Proposition Is Based On Energy Data Analytics REFERENCES ORGANIZATIONS MENTIONED Accenture, Deloitte, Elster EnergyICT, IBM, Marks & Spencer, Panoramic Power, TCS, Tesco, Verisae, Walmart, Wipro, Wipro EcoEnergy Wipro EcoEnergy Should Advertise Its Retail Track Record To Stand Out 2014 Verdantix Ltd. All Rights Reserved. Verdantix, Green Quadrant, Total Portfolio and Critical Moments are trademarks of Verdantix Ltd. All other trademarks are the property of their respective companies. Verdantix clients may make one attributed copy of each figure or paragraph contained herein. Additional reproduction is strictly prohibited. Verdantix Ltd Reproduction Prohibited. 2

3 VERDANTIX WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR This report forms part of a series of Verdantix studies that analyses software, services and technologies designed for a specific energy domain, such as data centres, retail stores or commercial offices. To hear more about Wipro EcoEnergy s proposition for the retail sector, Verdantix attended a product demonstration and spoke to Wipro EcoEnergy team members Mohan Gunaratnam, Ravi Meghani and Roy Stevenson. This report also builds on the insights from our analysis of the energy management capabilities of IT service providers, and review of emerging big energy data solutions (see Verdantix Green Quadrant Sustainable Technology Services Global 2013; Verdantix Smart Innovators: Big Energy Data Software). Wipro EcoEnergy s Retail Proposition Is Based On Energy Data Analytics Wipro EcoEnergy formed in 2008 as the energy services business division of $6.9 billion revenue IT services firm Wipro. Its retail customers span home improvement stores, electronics chains, pet stores and grocery chains across Europe, India and North America. Key elements of Wipro EcoEnergy s proposition for the retail sector are that it: Focuses on a growing energy management market. Verdantix analysis on geographies such as Australia, Germany, India, the UK and US finds that energy management for the retail sector will be a growth market over the next half decade (see Verdantix US Energy Management Spend ). The retail sector is increasingly engaging with the energy agenda given the low margins and relatively high energy consumption from assets such as checkout machines, HVAC systems, lighting, ovens and refrigerators. There are also brand pressures for sustainability performance in this sector, demonstrated by the green strategies of large retailers Marks & Spencer, Tesco and Walmart (see Verdantix Innovation: Tesco's Eco-Store Strategy). Makes energy data analytics central to its proposition. Wipro EcoEnergy provides a wide suite of energy services from the identification of energy savings, to the ongoing monitoring and management of energy consuming assets. Central to the proposition is its Energy Management Platform - a big energy data platform that centralizes energy operations data from all retail sites. Through aggregation of energy consumption data and the application of energy data analytics it provides store managers with a consolidated view of energy performance across all stores. It also allows for in-depth drill downs of energy performance of sites and devices through its mapping feature. Integrates data from various assets across retail chains. Leveraging core capabilities in systems integration and data management, Wipro EcoEnergy s Energy Management Platform can pick up energy consumption and performance data from deployed sensors, meters and controls, and integrate with almost all building management systems and SCADA. It can also link with external data feeds such as weather and footfall (customer count). In our 2013 benchmark of IT service firms, Wipro EcoEnergy earned best-in-class marks for IT systems integration solutions across real estate and manufacturing energy systems (see Verdantix Green Quadrant Sustainable Technology Services (Global) 2013). Verdantix Ltd Reproduction Prohibited. 3

4 VERDANTIX WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR Provides remote energy management. Wipro EcoEnergy has a 250+ team of statisticians and energy experts that provide 24/7 energy monitoring to various industry verticals through its Energy Operations Centres (EOCs) in Atlanta, US and Bangalore, India. The EOC communicates with on-site teams, such as store maintenance teams or FM contractors, to direct site interventions as required, based on alerts generated by the Energy Management Platform. In 65% of instances, performance issues can be resolved remotely. This day-to-day monitoring and management helps retailers to avoid performance drift due to rebound effects, lack of organizational awareness or asset degradation (see Verdantix Best Practices For Building Management Systems). Targets energy consumption savings of between 7% and 18%. Wipro EcoEnergy states that its managed services model can help retailers to lower energy costs by between 7% and 18% (kwh per square metre) over a contract period which is typically five to seven years. The level of savings is dependent on the maturity of automation and existing practices. Since 2011 Wipro EcoEnergy has been providing managed energy services to a US-based retail client with more than 1,000 stores targeting 14% of savings on total energy spend, and $70 million in gross savings by Offers a shared savings model. The managed services are delivered through an outcome-based risk sharing model, where Wipro EcoEnergy earns its returns through shared savings. Shared savings are a well-accepted concept in the energy services market (they can overcome barriers such as a lack of internal company funds or customer scepticism concerning potential savings); however, there is uneven maturity across markets when it comes to writing multi-year framework contracts for energy services (see Verdantix How To Finance Corporate Energy Efficiency). Wipro EcoEnergy Should Advertise Its Retail Track Record To Stand Out Wipro EcoEnergy s proposition is a suite of energy management services leveraging Wipro s core capabilities in systems integration and data management. Over the past half decade suppliers from various industry backgrounds such as building controls, energy procurement and FM have also moved into the energy services market. IT services firms, including Accenture, Deloitte, IBM and TCS, have made progress in building up energy management capabilities for energy domains such as commercial buildings and data centres (see Verdantix Established Global Brands Lead Energy Technology Services). In this market, Wipro will need to constantly develop and communicate around its competitive differentiators by: Building and advertising its track record in the retail sector. Our interviews with potential buyers of energy management software finds that customers push for industry track record when deciding whether to contract with a supplier (see Verdantix Green Quadrant Building Energy Management Software (Global)). This is particularly the case when trying to win work in sub-sectors that are more mature in their approach to energy management such as the grocery retail giants in the UK and US. Tesco has achieved a total of 290 million ($495 million) in savings on energy and fuel costs from 2006 to 2013 through various measures. Wipro EcoEnergy is currently managing energy for retailers across more than 3,000 stores, but should consider engaging with some of its high-profile clients to develop named case studies. Verdantix Ltd Reproduction Prohibited. 4

5 VERDANTIX WIPRO ECOENERGY TAPS BIG DATA FOR THE RETAIL SECTOR Leveraging its broad set of technology services for the retail sector. Numerous providers such as energy management software firms Elster EnergyICT, Panoramic Power and Verisae have all gained success in targeting the retail sector (see Verdantix Verisae Unlocks Opportunities In The Retail Market). Wipro EcoEnergy can differentiate itself from other energy services suppliers as it has the capabilities to provide a wide suite of IT solutions for the retail sector from supply chain management to customer relationship management through the Wipro group. In its go-to-market strategy Wipro EcoEnergy should communicate its broad capabilities and understanding of the retail sector which extends well beyond energy management. Accessing board-level decision-makers through the CIO. When positioning large endto-end energy services contracts to customers, suppliers will likely need to pitch to the CFO or finance director. We heard during our interviews with 250 energy managers that large energy management projects may also require sign-off from the CEO or a managing director (see Verdantix The State Of Global Corporate Energy Management). Wipro EcoEnergy can leverage its existing relationships with CIOs to push for introductions at the executive level. Verdantix Ltd Reproduction Prohibited. 5

6 About Us Verdantix is an independent analyst firm. We provide authoritative data, analysis and advice to help our clients succeed in the world of sustainable business. Through our global primary research and deep domain expertise we provide our clients with strategic advice, revenue generating services, best practice frameworks, industry connections and competitive advantage. Our Research Coverage ENERGY EH&S SUSTAINABILITY Building Energy Efficiency Energy Management Software Energy Policy Energy Services Energy Strategy Energy Technologies Industrial Energy Management Renewable Energy Smart Grid Utilities & Infrastructure Arctic Economy Carbon Management Climate Change EH&S Software Environmental Risk Management Environmental Services Product Lifecycle Assessment Resource Scarcity Sustainable Cities Water Management Employee Engagement Social Responsibility Sustainability Assurance Sustainability Communications Sustainability Consulting Sustainability Innovation Sustainability Reporting Sustainability Software Sustainability Strategy Sustainable Supply Chain How Our Clients Benefit Through annual access to Verdantix reports, data and webinars as well as drawing on the expertise of the analyst team, our clients achieve the following: Faster internal sign-off for project funding and annual budgets Improved strategic decision-making on energy and sustainability Enhanced understanding of competitive position Accelerated revenue growth for energy and sustainability offerings Reduced risk in supplier selection Increased brand profile in the energy/sustainability ecosystem Contact Us Verdantix Ltd Reproduction Prohibited. 6

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