Client: Energy Provider
A big six energy provider in partnership with a global manufacturer of condensing boilers and renewable heating technologies for developing a new technology product to launch and commercialise Connected Smart Boilers — well ahead of other players in the market.
This innovative new technology will provide real-time monitoring of connected home devices, deploying a sophisticated analytics engine to deliver optimised performance and maintenance with zero to minimal downtime risks to customers. This will provide customers with a significantly enhanced service experience, making their lives more convenient and helping them to optimise control of their homes.
However, following a year-long product trial based on initial prototype design, senior executives needed detailed and objective evidence on the expected commercial value and cost saving benefits in order to continue to fund and support on-going product development and commercialisation rollout efforts.
Consequently, the head of product development enlisted Intuitrics to deliver expert and objective commercial analysis for the business case, including defining key performance metrics as well as making recommendations for improving the performance and data quality of on-going customer product trials.
Discovery & Analysis:
We undertook the following iterative analysis steps to deliver a robust business case with credible product performance insights.
- Collation of data from multiple sources and across functional teams, including the trial performance data, operational cost data and operational service KPIs
- Development of a cohort analysis model for comparable assessment of performance between the defined trial or experiment subset versus control subset
- Undertaking initial pilot analysis using a small cohort dataset before detailed deep-dive analysis and modelling with a larger dataset, covering at least one year of historical service data by relevant product type for all retail residential customers
- Following the analysis, we compared results of the cohorts, deep-diving into further sub-segments of cohorts to zero-in and quantify the core drivers of value and benefits along several KPI dimensions
- Finally, we developed a cost-to-serve model taking data inputs from the cohort analysis and operational finance planning model to calculate the value of expected cost savings and benefits per customer
Outcome & Impact:
The results of the analysis revealed a better-than-expected positive contribution to the bottom line, indicating a potential double-digit (£m) annual cost reduction and operating efficiency within the residential homecare business unit. This outcome, of course, depends on successful post-launch product adoption and commercialisation rollout.
In addition, we also identified the underlying drivers of performance outcomes based on defined KPI metrics, which further provided evidence to inform, influence and rally support amongst senior stakeholders.
Overall, these findings empowered the head of product development and his team to better engage with senior executives, gaining their confidence and support for more product development funding.