Brand and Design Thinking Innovation: Using DSM as a...
Transcript of Brand and Design Thinking Innovation: Using DSM as a...
www.esource.com February 2017
Brand and Design Thinking Innovation: Using DSM as a Springboard
AESP Conference
Bill LeBlanc
Chief Instigation Officer
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How do utilities gain relevance and
brand strength in consumers’ minds
despite the fact that electricity is in
the background of their lives?
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Where the Brand Lives: In the Mind of the Customer
3
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Source: http://ourenergyllc.com/help-tools
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Audience Question
Name a brand that has failed
or heavily degraded in the
recent past.
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2
3
Current Program Design and Marketing Strategy TYPICAL METHOD
Load-shape goal /
cost-cutting goal
Target customers
Sell and bribe
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2
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Target customers
Incorporate
attractive attributes
Blend in
utility goals
Fundamental Shift in Program Design and Marketing Strategy CUSTOMER-FIRST METHOD
“Only on the hottest days”
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“Your demand-side management
programs are a customer
experience and branding gift
from regulators.” —Bill LeBlanc, Chief Instigation Agent,
E Source (September 12, 2016)
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DSM as the Perfect Innovation and Product/Service Catalyst
DSM
Planning
Marketing
Product development Implementation
Consumer behavior
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DSM as the Perfect Innovation and Product/Service Catalyst
DSM
Solar
Low income
Electric vehicles
Revenue- generating products
Connected home
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Industries Tend to Have Nondifferentiated Business Models
Hotels (branded levels of service/luxury/economy)
Taxis (roaming or on-call cars with set tariffs)
Rental car companies (reservations, service offices)
Home loans (banks, lenders, amortization schedules, 30- or 15-year loans)
Electricity (central stations, cost-plus pricing)
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Product Development Open Spaces
“_________ as a service”
FLASH INNOVATION: Think of as many logical “as-a-
service” offerings a utility would be positioned to provide
“… as a service (aaS) is driving growth and
market change”
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Product Development Open Spot
“_________ as a service”
Solar
Efficiency
Productivity
Reliability
Autonomy
Rate optimization
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Design Thinking: Discovering New
Solutions to Old—and
New—Problems
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Innovation Doesn’t Come Easily to Many Industries and Products
Courtesy: iStock Courtesy: iStock
Source: Wikipedia
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—David Kelley
IDEO
Deep empathy for people
makes our observations
powerful sources of
inspiration. Being human-
centered is at the core of
our innovation process.”
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We’ve washed other
people’s clothes by hand in
their sinks, stayed as guests
in housing projects, stood
beside surgeons in operating
rooms, and calmed agitated
passengers in airport
security lines—all to build
empathy.” —David Kelley
IDEO
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Human-Centered Design
Source: ZD Net
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The Design-Thinking Process
Inspiration Ideation Implementation
Understand Observe POV Ideate Prototype Test Storytelling Pilot Business
model
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The Design-Thinking Process
Understand Observe Define
POV Ideate Prototype Test
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Three Shortcuts to Customer Empathy
Try
Immersion:
Immerse yourself
in the experience
of others
Look
Observation:
Observe what
people do
Ask
Engagement:
Capture what
people say
they do
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Have You Heard These Phrases?
“We tried that x years ago and it didn’t work.”
“That wouldn’t get approved by y.”
“There are too many hurdles to jump over.”
These are all
“why we can’t” statements.
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Design Thinking Uses …
Point of
View
“How might we …” statements
Best of PowerWalking: https://www.youtube.com/watch?v=dff8qAK1vcI
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Discovery and Insight by Looking at Extreme Users
Courtesy: http://weunleash.co/blog/2015/01/22/extreme-user-research-the-case-of-nintendos-wii/
Non-users Pros
Extreme
users
Extreme
users
Main target customers
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Research into Extreme Users and Outliers Can Reveal New Solutions
Researchers:
Found a woman who
was really stretching to
save
Watched her actions:
balancing her
checkbook
Designed a whole
program around that
INSPIRATION
Bank of America:
Design Discovery
Source: Bank of America
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Smart Meter Rollout
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Discoveries Come from Unexpected Places
From super efficiency + solar guy: “Then I
walk outside, every evening, all year, to see
how much energy I used today and how
much solar I got.”
[Unstated] point of view: “I wish it was much
easier for me to know what my energy use
is.”
Crazy solution idea from marketer who knows
nothing about meters: “Let’s put the meter
inside!”
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Something Simple … Yet Necessary and Powerful
Smart meter
rollout
Choice: visible
or invisible?
Choice: new
or traditional?
Utility’s or
customer’s?
Yello Sparzähler online
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Source: http://99percentinvisible.org/article/least-resistance-desire-paths-can-lead-better-design
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Research into “Work-Arounds” May Help Discover New Solutions
www.ideo.com
Courtesy: iStock
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Source: IDEO
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Source: Amazon
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“Your demand-side management
programs are a customer
experience and branding gift from
regulators.”
—Bill LeBlanc, Chief Instigation Agent,
E Source (February 13, 2017)
“Your demand-side management
programs are a customer
experience and branding gift
from regulators.” —Bill LeBlanc, Chief Instigation Agent,
E Source (February 13, 2017)
“Your demand-side management
programs are a customer
experience and branding gift
from regulators.”
Remember This Quote?
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Design Thinking: Using Customer Empathy
Issue:
Boulder County/City Energy audit/
whole-house program has an
8 percent conversion rate to investment in energy upgrades
Objective:
To increase conversion
rates and investment
in upgrades
www.energysmartyes.com
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POLL
Generally, how is the customer experience
with DSM programs?
a. Excellent
b. Good
c. So-so/spotty
d. Frustrating
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Barriers: What They Said They Were
First
cost
Lack of
knowledge
Contractors
Technology
confusion
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Barriers: What They Actually Were
Confidence
Trust
Easy to
drop out
No penalty
for contin-
uing the
status quo
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Point of View!!
“How might we help Jenny and her family be
more efficient, understanding that she’s very
busy and needs help through the journey?”
ww
w.e
nerg
ysm
art
yes.c
om
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New Service Design
Introducing the EnergySmart Advisor
Independent (overcomes wariness of
contractors)
Knowledgeable confidant
Cuts through the paperwork and rules
Doesn’t give up
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Did It Work? It Sure Did
Conversion rate to investment went from
8% to more than 50%
But: It’s expensive
So: Give up? No
Redesign: Phone Advisor,
Virtual Advisor, Email Advisor
What Design Thinking Provides….
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5
DSM
Empathetic perspective, customer’s viewpoint
Cross-functional design process
“Edge” discoveries of problems
Rapid prototyping, fail fast
Start encouraging an innovation culture
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Bill LeBlanc
Chief Instigation Agent, E Source
303-345-9142 [email protected]
For More Information
CONTACT US
1-800-ESOURCE (1-800-376-8723)
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