HOT|COOL NO. 2/2023 "AI & Digitalization"

As a reader, you might now wonder how the “passive cus- tomer“ value proposition differs from the current DH cus- tomer value. The difference is that digital solutions have been fully developed and implemented. In 2050, we have solved many issues by automizing processes and systems. We have smart buildings and hardware supporting customers to ad- just to efficient heating and cooling consumption patterns. In 2022, the unique selling point of DH was the security of supply, carefreeness, and comfort at a reasonable cost. An- other positive aspect is that the carbon footprint can be lim- ited. In 2050, the unique selling point can be the carefree delivery: heating and cooling works (without any customer effort) at a high standard (the boundary conditions are taken for granted, so aspects like sustainable heat supply are stand- ard). The cost of the energy service is also competitive with other alternatives. The “passive customer“ value is delivered to most customers as it is assumed that engagement in one’s energy supply will be limited to a minority of the customers: reflecting the cus-

are mature markets, Germany is a growing market, and France is a new market. As a result of the different maturity of DH in unalike markets, it is difficult to identify future DH boundary conditions that will apply simultaneously in various places. The specified boundary conditions should be interpreted as indi- cations of boundaries that DH companies must position them- selves against in upcoming years. In some areas, the conditions will materialize sooner than in others. 1.4 Future business model characteristics Two value propositions were identified based on the literature review, interviews, and the value proposition process. The main difference in these is that they reflect different customer be- havior. What we refer to as the “passive customer“ value prop- osition reflects what most customers will demand: a cost-effi- cient, convenient energy service package that requires a low level of active involvement. The “active customer“ value propo- sition differs and reflects customer involvement: the customers are involved in optimizing the heating system, with maximum transparency of their impact on the system.

Figure 1 Business model characteristics 2050 The black text reflects the situation in 2022, the purple the "passive" model and the green the "active" model.

Key partners Fuel providers

Key activities

Customer Value

Customer Segment

Operation and maintenance

Heat/cool and hot water

Professional building owners

Prosumers  Heat providers

ldentical with the inclusion of the new key resources

Heat/cool- possibly hot water

Professional and private end-users

ldentical with the addition of prosumers and active customers from, for example, industry

Security of supply, comfort, carefree at reasonable cost

Co-creation and  relationship building

Co-creators

Key resources

Customer Relationship

Carefree at reasonable cost

Green energy

Automized

ldentical with the addition of win-win and long-term relati- onship with prosumers

DHN Production Unit Operations system Staff: operations and maintenance

Co-creation of value with energy company

Personal relationship with co-creators

ldentical with the addition of heat pumps, electricity generation, storages and digital infrastructure

Customer Channel lnvoice, campaigns, webpage

Digital with what corresponds to an app in 2050 Personal meetings

Staff dedicated to co-creation and relationship building with co-creators

Cost and income structure Fixed costs (production unit and network) Remains, with addition of heat pumps, PV, storage and digital infrastructure: large scale combustion units phased out additional investment might be needed for co-creation

Staff Remains with addition of staff for prosumer and heat supply arrangements and co-creation

Fuels Combustible to a portfoio of diverse sources (size and temperature) Customer revenue Service package offered, part of it can be linked to a win-win arrangement

26 HOTCOOL no.2 2023

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