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The Top Three Recommendations from Navigant’s Smart Home Data Analytics Report

As smart home device adoption increases, more information about what is going on in the home is becoming available. Smart home solutions are creating new possibilities for generating revenue and providing consumers with more value. Data analytics drive those solutions, and according to Navigant Research’s 2017 Smart Home Data Analytics report, market participants have only begun to scratch the surface of possibilities. While smart home data analytics most often feed the development of mobile apps and web portals today, applications will go beyond the smart home to include monitoring and awareness, demand response, energy efficiency, and DER integration—which is why utilities need to get more involved.

In its report, Navigant Research identifies best practices for various participants in the market. We’ve cherry-picked the top three recommendations that utilities can take action on today:

1. Innovate with analytics to progress the market. Navigant Research stresses the importance of pushing the market forward proactively, rather than waiting for market consolidation and risk being left behind. This is especially important for utilities as large, third-party players like Google and Amazon continue to penetrate the home energy management space. 


Taking action: Smart home data analytics allows for an innovative approach to DSM known as Continuous Demand Management (CDM). With CDM, utilities can integrate with DERs and smart home devices to incorporate demand-side intelligence into resource planning, identify trouble spots and determine opportunities and strategies for non-wires alternatives. CDM adds value to consumers by offering an automated way to manage and optimize energy use, resulting in lower bills and happier customers.

2. Use data to create new revenue streams. Data analytics can certainly enhance existing solutions, but Navigant Research claims that the real value lies in new data-based services and applications. 


Taking action: Utilities can build partnerships for products and services like smart thermostats and HVAC maintenance, using analytics to find and target the customers most likely to engage with each offer. For instance, with analytics capabilities a utility can know that a customer has a HVAC system that is 10 years old and has had higher than average energy bills this summer. This individual would therefore be a perfect candidate for a HVAC service offer and a smart thermostat rebate that includes an opportunity to sign up for a demand management program like demand response (DR) or CDM.

3. Create open and interoperable solutions: The smart home market has been riddled with devices operating on closed networks, creating issues for vendors and consumers alike. Vendors are challenged to analyze data from various device networks in order to deliver value. Consumers end up needing multiple apps for multiple devices. The future of the smart home relies on an open ecosystem, where devices can freely communicate with each other to provide the most value to consumers.


Taking action: Navigant Research stresses that cloud-based solutions are the future of smart home data analytics, as they help solve the interoperability challenge. Cloud integration allows devices to communicate using application programming interfaces (APIs) in software, eliminating the need for devices to have the same set of radios embedded within hardware to communicate. Make sure you are working with vendors who understand the need for interoperability and the benefits of cloud computing, and have built their platforms accordingly.

Utilities are in a great position to bring smart home data analytics solutions to the public. They may not be seen as being as powerful as Google or Amazon in this space, but utilities have the customer and home envelope data needed to power the cloud-based solutions that Navigant says will be the real future of smart home data analytics.

If you’d like to further discuss this Navigant Research report, or examine where smart home data analytics may take your business, please do reach out.

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Categories

Tags

  • Continuous Demand Management
  • Customer Ops & CSAT
  • DERs
  • DSM
  • Data Analytics
  • Demand Response
  • Disruption
  • Energy Efficiency
  • HERs
  • High Bill Alerts
  • Privacy & Security
  • Real Estate
  • Smart Home
  • Solar

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