http://www.ohmlife.net

Final Presentation

Amit Kanda

Raghu Kopalle

Joel Minton

Michael Ruehlman

hmLife

Simplify Home Energy Management

Home energy management

is complicated and

confusing…

Our service-based approach is

easy and convenient

hmLife

Massive Market

Opportunity

50 M Residential

Customers

(of 130 M total US

households)

$750 M market

opportunity by

2015

Amit Kanda

Product Manager, Brocade

•Product alignment with emerging trends,

penetrating high impact growth markets

•Business Development, Product

Management and Marketing

Raghu Kopalle

Product Development,

and Program Management, Juniper

Networks Inc.

•Enterprise branch office products that

integrate routing, switching, WLAN and

security features

•Product Development, Technical marketing

and Global management in

telecom/networking markets

Joel Minton

Director of Fashion

Technology at eBay Inc.

•Data driven platforms driving extensive

value across eBay Inc.

• Internet Marketing, SEO, Big Data, and

data driven optimization.

Michael Ruehlman

Co-founder of BrightGrid Renewable

Energy Finance

•Channel strategy and structured finance

•Traditional and emerging distributed energy

and power markets

Team Members hmLife

Business Model Canvas Version 1 hmLife

Energy efficiency

rating agencies,

auditors and utilities

Household equipment

manufactures

Data analytics

algorithm

development

Software platform

Alliances to get initial

data set.

Energy efficiency

awareness leading to

cost savings and

value appreciation.

Pre-qualified and

searchable target

market segment.

Mass proliferating of

energy scores.

Privacy, community,

ease of usage.

<Two Sided

platform> Home

owners (non paying

customer)

Business side

customers (Paying

customer)

Providers/retailers of

energy efficient

goods/service

Sources of energy

usage/efficiency data

Platform equipment

and management

Human resource

Home owners - Direct

via internet

Business side – Direct

or indirect

Platform development costs

Channel development and advertisement costs

Incentives to the retailers, energy auditors, builders etc

[Business side] Origination/transaction fees, search fees

Target advertisement on the website

What We Did hmLife

Goal: Verify Initial

Hypothesis

• Consumer and Contractor

Value Proposition

Action: Survey Residential Customers

• Online survey

• Face-to-Face interviews

Action: Survey Contractors and Distributors• Inbound calls

• Surveys

Action: Survey the Market for Existing Algorithms

• Berkeley Energy and Resources Collaborative LBNL

• Home Energy Saver

• Home efficiency scoring algorithm homeenergysaver.com

• Not well informed energy consumers

• Motivated by net savings, esp. when making “big ticket” purchases

• Driven by social networking, monetary and social incentives

Initial

Customer

Hypothesis:

Maximum Payback Time Horizon

Customer Buying Preference

Customer Value Drivers

What We Found hmLife

Residential Homeowners:

Do not understand their energy bill

Incented by monthly ~25% savings

Do care about environmental impact

Skeptical about enhanced home values

Distributors and Contractors:

Will pay for pre-qualified homeowner leads

Do not spend on advertising

Value brand, convenience and quality of

support

Business Model Canvas Version 2 hmLife

What We Did hmLife

• Selected US DOE’s Home Energy Score (HES) ✔ as a proven energy scoring

methodology piloted in thousands of households!

• Continued talking to remaining players in Energy Efficiency Market value chain -

Partners (5), Contractors (12), Distributors (15), and our mentor from clean energy

industry to understand

• Customer segmentation based on energy scores and the value of a pre-qualified

customer base

• Consumer perception and spending preferences for energy efficiency

upgrades

• Retail channels through which customers prefer to evaluate and upgrade

• Channel relationships and partnerships in the green technology industry.

• Built Ohmlife.net website that shows energy heat map and drives excitement among

customers

What We Found hmLife

• Customers do not like to answer long questionnaires as part of their home profile

creation. They would like to the energy saving experience to be a simplified 3-

step process:

• Step 1) Analyze – Gives their current energy usage, along with a energy score

comparison with neighbors

• Step 2) Upgrade – Provides recommendations for improving efficiency and

price-based options

• Step 3) Realize – Allows customers to monitor their reduced bills over time to

realize their $$$ savings

• Increased home values and significant cost savings (>25%) continue to be

drivers in investment of time and energy.

• Neither customers or distributors want to pay subscription or upfront service

fees

• Building a financial model is critical to understand our value prop to respective

consumer segments

Where We Ended Up hmLife

• Ohm-life, instead of being a 2-sided intermediary platform or a platform with a subscription-

based revenue model, will have much better acceptance as a one-stop affiliate platform and

provide a seamless experience to customers.

• Providing an end-to-end experience is vital.

• Collaboration with other established channels (Zillow, Amazon, Lowes) can really help

• Consumers love to do energy analytics with easy-to-use web interface and healthy “competition”

between consumers by leveraging social networks (Facebook, Google+).

• Consumers are comfortable with online purchasing and financing, but must be reliable

What we learned

Is this a viable business?

• Viable business in under served market

• Significant market capture opportunity. Question becomes: when does mass adoption occur?

Will pursue after class?

• We fundamentally believe in our product and want to pursue this opportunity

• Will require “taking the big leap”

Business Model Canvas Version 1 hmLife

Energy efficiency

rating agencies,

auditors and utilities

Household equipment

manufactures

Data analytics

algorithm

development

Software platform

Alliances to get initial

data set.

Energy efficiency

awareness leading to

cost savings and

value appreciation.

Pre-qualified and

searchable target

market segment.

Mass proliferating of

energy scores.

Privacy, community,

ease of usage.

<Two Sided

platform> Home

owners (non paying

customer)

Business side

customers (Paying

customer)

Providers/retailers of

energy efficient

goods/service

Sources of energy

usage/efficiency data

Platform equipment

and management

Human resource

Home owners - Direct

via internet

Business side – Direct

or indirect

Platform development costs

Channel development and advertisement costs

Incentives to the retailers, energy auditors, builders etc

[Business side] Origination/transaction fees, search fees

Target advertisement on the website

Business Model Canvas Version 2 hmLife

Business Model Canvas Version 3 hmLife

Auditors

Affiliate Providers

Manufacturers and

distributors of home

hardware

Contractors

specializing in

energy retrofits

Analyze: Calc

energy score

Upgrade:

Recommend

upgrades

Realize: Monitoring

Simple Experience

Mass proliferation of

energy scores

Net zero cost for

energy

improvements

Positive

environmental

impact

An end-to-end

energy saving

experience over time

Home owners

Renters

Ohmlife employees

Public Resources -

Energy Star, Utility

companies, LBL

Home Energy Score

Paid Marketing

Direct Web Traffic

Email

Social Websites

Platform development costs

Channel development and advertising costs

We take a small affiliate cut of every energy efficient

appliance and hardware purchase.