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TESCO’s New Market Space By the Pyjama Party: Lara, Robin, Mia, Claudia, Andres

HYPER ISLAND × TESCO: NEW MARKET SPACE

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TESCO SmartMove is an eco-system facilitating home energy management with a twist. On household electrical outlets and appliances, it connects affordable wifi-sensors to talk to a social platform.

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Page 1: HYPER ISLAND × TESCO: NEW MARKET SPACE

TESCO’s New Market SpaceBy the Pyjama Party: Lara, Robin, Mia, Claudia, Andres

Page 2: HYPER ISLAND × TESCO: NEW MARKET SPACE

Let’s start with my friend Sara

Perfect boyfriend

Deals

Everything green

Green petitions

Vegetarian

Updated about green energy

Tips to optimize energy

Unnecessary advices

Cooking

Kittens

Vegetarian

Pushes me to get up in the middle of the night to turn the router off...

Page 3: HYPER ISLAND × TESCO: NEW MARKET SPACE

Time to compare

Tangible advantage

Difficult to compare

Automated

Ridiculous saving tips

Wasting my energy

I obviously would like to be like herBut most of the time I feel like this...

Page 4: HYPER ISLAND × TESCO: NEW MARKET SPACE

TESCO can help towards that outcome

OPTIMIZE HOUSEHOLD RESOURCES

MAXIMIZE QUALITY of LIFE

Page 5: HYPER ISLAND × TESCO: NEW MARKET SPACE

Reshaping the User Experience

Page 6: HYPER ISLAND × TESCO: NEW MARKET SPACE

From

Page 7: HYPER ISLAND × TESCO: NEW MARKET SPACE

From

Page 8: HYPER ISLAND × TESCO: NEW MARKET SPACE

To

Page 9: HYPER ISLAND × TESCO: NEW MARKET SPACE

Defeating Sara

SMART MOVE

Page 10: HYPER ISLAND × TESCO: NEW MARKET SPACE

TESCO SmartMove

SmartMove Platform

TESCO

+ +

SmartMove Sensors

Page 11: HYPER ISLAND × TESCO: NEW MARKET SPACE

Pre: Synched bills SmartMove Platform

Eliminated Waste• Waste of time • Many bills to manage• Time to enter

expenses• Different bills and

accounts• Tips differ

Added customer value• Do more good with

less work• Smarter energy

choices

Page 12: HYPER ISLAND × TESCO: NEW MARKET SPACE

Eliminated Waste• Set up• No foreseeable goal• Expensive

Added customer value• Compatible with

old appliances• Affordable• Tangible, precise goal• Visible, actionable• Seeing increase in

quality of life in action

During: SmartMove sensors in action

Page 13: HYPER ISLAND × TESCO: NEW MARKET SPACE

Eliminated Waste• Set up• No foreseeable goal• Expensive

Added customer value• Compatible with

old appliances• Affordable• Tangible, precise goal• Visible, actionable• Seeing increase in

quality of life in action

During: SmartMove sensors in action

Page 14: HYPER ISLAND × TESCO: NEW MARKET SPACE

Eliminated Waste• Different bills• Difficult life decisions• Expensive upgrades

Added customer value• Future consumption

predictions• Remote tracking• SmartMove house

index• Informed choices• Educating• Motivation

Post – facilitate evaluation & maintenance

Page 15: HYPER ISLAND × TESCO: NEW MARKET SPACE

Eliminated Waste• Different bills• Difficult life decisions• Expensive upgrades

Added customer value• Future consumption

predictions• Remote tracking• SmartMove house

index• Informed choices• Educating• Motivation

Post – facilitate evaluation & maintenance

Page 16: HYPER ISLAND × TESCO: NEW MARKET SPACE

SmartMove Sensors

TESCO SmartMove

Beat Sara!TESCO

+ =+

SmartMove Platform

Page 17: HYPER ISLAND × TESCO: NEW MARKET SPACE

Business Case for TESCO

Page 18: HYPER ISLAND × TESCO: NEW MARKET SPACE

Why is SmartMove strategic for TESCO?

Experienced in using automated data collection software to:• Market products based on shopping

choices. • Improve operational efficiencies• Create new-business opportunities by

diversifiying new markets (mobiles, financial services)

Has been using Big Data since 2006 to:• Improve supply change• Inventory management systems• Tesco’s new supply chain optimization

program helped SAVING up to 16 MILLION pounds anually.

Tesco is already an expert in Big Data Analytics

Page 19: HYPER ISLAND × TESCO: NEW MARKET SPACE

Predictable Data

Historical Buying Data Expected temperature trends

Customer shopping habits based on context

+

• Predict what customers will want to buy in a specific area/time of year & stock accordingly

• 97% chances that customers will find what they want in stores compared to competitors

=

Page 20: HYPER ISLAND × TESCO: NEW MARKET SPACE

Predictable Data

By tracking customers energy habits, TESCO can give accurate recommendations and predictions about when and how they can use energy in an effective way.

Page 21: HYPER ISLAND × TESCO: NEW MARKET SPACE

Edimax +Rasberry Pi

Strategic Partners

Energyproviders

Smart appliancecompanies

TESCO’scompetencies

+ + +

Page 22: HYPER ISLAND × TESCO: NEW MARKET SPACE

Edimax & Rasberry Pi

Low user entry costCompared to

Nest$249 / unit$119 / installation

Wemo$49 / switch

Ultra affordable network solutions

Edimax$11 per Wifi adaptor$25 per rasberry pi

$110 / 10 switches$36 / sensor plug

Page 23: HYPER ISLAND × TESCO: NEW MARKET SPACE

RevenueStream

Page 24: HYPER ISLAND × TESCO: NEW MARKET SPACE

What may we enter?

Time

Industries

ENERGY COMPANIES

SMART APPLIANCES

FINANCIAL PLANNERS

ENERGY CONSULTING

SMART HOMES

REAL ESTATE

Page 25: HYPER ISLAND × TESCO: NEW MARKET SPACE

Behavioural experiment

• Neighbors were told to turn off their air conditioning and turn on their fans to save $50/month during the summer.

• Different people were told different messages

• Only the last group turned off the air conditioner

Page 26: HYPER ISLAND × TESCO: NEW MARKET SPACE

What about your perfect neighbour?The human component ensures that our solution will work

Individuals are motivated much more by their perceptions of what other people do and find acceptable than they are by other factors such as saving money or conserve resources

Page 27: HYPER ISLAND × TESCO: NEW MARKET SPACE

Customer Value• TESCO enters the home space to help with better energy consumption behaviour

using data to track, predict and recommend• We can really enter other markets once customers trust us• Simplified bill and payments • Smart energy choices• Automate all the tracking, optimisation and reduce energy spending• Affordable energy monitoring service• Easily adapt normal appliances • Better energy consumption behaviour• Visible and actionable recommendations that lead to better quality of life

Page 28: HYPER ISLAND × TESCO: NEW MARKET SPACE

Thank You

Page 29: HYPER ISLAND × TESCO: NEW MARKET SPACE

Questions?