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Final Report Vodafone Competition


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The purpose of this project was to develop a B2B2C business model for “Vodafone Smart Home” concept.

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Final Report Vodafone Competition

  1. 1. Vodafone Smart Home Project OutOfTheBox Team Dossena Erica 1733229 Fratti Annalisa 1504331 Girardi Giulia 1731769 Korkusuz Egemen 1708032 Matteoda Michelangelo 1729227 Scala Francesco 1731082
  2. 2. ü  Executive Summary ü  Vodafone Company ü  Methodology Used ü  Opportunity Identification ü  Concept Generation ü  Concept Testing ü  New Product Launch ü  Market Sizing Agenda
  3. 3. The purpose of this project was to develop a B2B2C business model for “Vodafone Smart Home” concept. In order to reach our aim we firstly analyzed the current Italian market, and we noticed a contradiction: while the Italians’ patterns of consumption, habits and the overall system are still significantly backwards, there is a considerable interest in everything that involves technology development and environmental sustainability that results in the corresponding trends. We therefore combined this starting point with the results of our quantitative and qualitative research and with our managerial intuition. The result was the creation of a concept that would parallel these market trends with an additional added value: an innovative platform to manage home utilities aimed at making consumers’ life more comfortable. Executive Summary
  4. 4. Vodafone Italia aims at being the country’s most admired telecommunication brand, confirming its leadership in the mobile market and strengthening its position of reference as alternative operator for the home services. Vodafone Company The Mission
  5. 5. Since 2001, Vodafone is part of the Vodafone Group, that with its 391 millions customers is one of the world’s biggest mobile communication groups. Thanks to a constant growth throughout the past 15 years, Vodafone is today the leader in the Italian mobile market with over 31,7 millions customers, counting for around 19% of the overall profit of the Vodafone group. The contribution of the company, direct and indirect, for family,firms and public administration accounts 6,6 billions of euro, contributing to the Country GDP for 3 billions. Vodafone is the first operator in the mobile phone market in term of market share, however in the landline sector it ranks fifth with 2,5 millions of customers. Some Results Vodafone Company
  6. 6. Innovation has been the driver of Vodafone strategic choices throughout its whole history, and it was the element that led to its success. As consumer-centered company, since their first promotional campaign “Vi diamo ascolto”, this element has been the distinctive trait of this company. Vodafone investments on inovation It has spent around 900 million euro in technology, in fact it is the first mobile operator offering the 4G even on Smartphone (January 2013). In April 2013 the company launched its service of Optic fibre in Milan with the objective to cover 25% of the entire city by 2015. On the Smart Technology Vodafone is investing to test and create new solutions focusing on the personalization of the smartphone’s apps and web based services. Moreover Vodafone has tried to sustain the development of the multimedia service without leaving the core business. Vodafone Company Vodafone has invested a lot in the radio electric line through the AMR (Automatic Metric Reading) to monitor its electric consumption. Through these data Vodafone in fact can check and limit carefully the 48% of its energy’s expense and if they are in line with the data provided by the suppliers. The aim is to extend the line up to 700 appliances. Core Values
  7. 7. Identify and develop a product/service within the concept of smart home by adopting the perspective of private and public services: Vodafone2Enterprise The Brief
  8. 8. Methodologies Used
  9. 9. Methodologies Not Used Human Factor Research It was not possible for us to use the Gap analysis methodology (neither the AR nor OS one) because of the impossibility to find direct competitors in the market for our product. It was therefore impossible to ask people to rate its attributes and to compare brands. Furthermore, even if we asked questions about the similar existing products (e.g. the smart plugs, those without the app with the different functions or the inclusion of the internet ADSL and fixed telephone), only few respondents (the current innovators and early adopters) could have answered, since the are not mass market products yet. Even if the interface is not always convenient and simple, we didn’t apply the human factor research because our user segments’ profile are not poorly understood and there was no particular need to find which types of people and in which settings interact with our offering. Gap Analysis
  10. 10. Of course we would have had more results if we had applied Compositive and Decompositive tools in order to test our concept, but taking into consideration the aim of this project and the limited time resources we opted at this stage to focus more on the results of two other concept testing methods: focus group and questionnaire. Moreover, since our concept opens up new value trajectories we preferred to focus on the opportunity identification stage. Compositive & Decompositive Tools ATAR model was not used for market sizing because our product doesn’t exist in the market yet. Therefore the four variables could not be calculated. Bass and Rogers was used instead. Market testing No methodology from the market testing phase was applied because of the impossibility of producing the actual product in question and the related app. ATAR
  12. 12. Focus Technological Dimension: Technology strengths include Vodafone’s high level of connectivity, innovative products, application and services. Market Dimension: Vodafone focuses on developing innovative products and services to be part of people’s everyday life by making life easier. Goals Developing innovative products and services gives Vodafone the ability to achieve its goal of global reach, while continuing to grow its business at the same time, by developing commercially viable, scalable services that support sustainable growth. Guidelines : Vodafone aims to be a selective innovator in the services with cost efficient solutions. Product Innovation Charter In order to keep focused and asses in the best way which was the idea to pursue, we found the need to draw a PIC.
  13. 13. SMART PARKING VODAFONE HUB SMART CLOSET GAMING STATION We Started out by considering several Ideas…
  14. 14. Even if it concerned a “smart life”, did not belong to the Smart Home framework. It would have been difficult to implement due to several factors involved (people wear many different brands which is hard to optimize for an app, it would have implied mass-suggestions, etc.) We thought about this idea starting from the consideration that in general consumers have a high willingness to pay for entertainment products and this would have potentially granted us a double digit growth. The reason why we abandoned it was that each game producer already has an agreement with game console companies, furthermore this project would have need a huge amount of R&D investments despite the fact that the games market is already saturated and has its established players. … and eliminated the ones we didn’t believe were appropriate for the following reasons:
  15. 15. After evaluating different possibilities, and always having in mind the aim of reaching a double digit growth, we opted to pursue an idea that would help the utilities company to track better their clients’ consumption and obtain more data about their services’ usage. On the other side we wanted to simplify life of consumers, and at the same time to be eco friendly. The key word at this step of the project was WASTE, specifically for what concerned the following spheres: - Electricity and gas - Water - Food - Internet ADSL and home phone Our initial idea was therefore an app inside the Vodafone station, through which consumers could see the consumption and take the bookkeeping of all the before mentioned elements. Managerial Intuition We then decided to carry on with the idea of the Vodafone Hub, because it had several financial and strategic strength points.
  16. 16. MICROENVIRONMENT ANALYSIS Home automation Landline and ADSL Electricity and gas The food issue Secondary Data . We therefore started making an online research of secondary data in order to verify that this is actually a significant problem in the actual Italian market and the results were the following: 1 2 MACROENVIRONMENTAL ANALYSIS PEST
  17. 17. MACROENVIRONMENTAL ANALYSIS POLITICAL FRAMEWORK •  Complete liberalization of the gas & electricity market in the last years. Before it was a national monopoly controlled by Enel. •  Implementation of measures aimed at reducing energy consumption of the Italian buildings through the “Certificazione energetica degli edifici”. •  55% tax detraction in case of energetic requalification of the existing building was implemented in 2007 SOCIAL •  Paramount imortance of the house for the average italian as vital core of the family TECHNOLOGICAL •  The number of families that owns a personal computer has grown (+ 1,2 %) as well as the ones that have internet access (+ 2,1 %) and broadband connection (+ 2,4 %) ; still 4/10 italians do not benefit from digital technologies, even if it would make them save money in numerous fields. •  The market for smart home systems and services in the Italy is set to become a major market opportunity for technology and service providers over the next five years. •  2% of homes in Italy can now be classified as "SMART", and revenues from related hardware, services and installation fees will grow at a 27% CAGR 2017. ECONOMICAL •  High level of income taxes leads italian people to seek for ways to cut their expenses and regenerate their consumption habits. •  Italian unemployment rate is running at 12 per cent and expected to increase to even higher levels in 2014 •  Policies to reduce wastes :10% energy savings target for 2016 through the National Energy Efficiency Action Plan in order to save up to 126.3 TWh in buildings, transport and small industries. 1PEST
  18. 18. The HOME AUTOMATION The home automation market in Europe is living a great phase of development, with yearly growth trends(CAGR) of 5,1%. Italy currently is ranking 3rd after Great Britain and France in the European home automation market. Even if automation systems are still perceived as expensive products, prices are decreasing at a global level due to the competition coming from various operators of the sector, a better communication on the advantages of the systems and the high penetration of tablet PCs in the Italian houses. 0% 20% 40% 60% 80% Tren-no Alto Adige Valle d'Aosta Veneto Lombardia Piemonte 78% 63% 61% 60% 55% -20% -10% 0% 10% 20% 15% -7% -11% Sicilia Basilicata Sardegna Top and worst performers in the construction of buildings provided with automation systems Source: elabora-ons on a study 2MICROENVIRONMENTAL ANLYSIS
  19. 19. Landline & ADSL For what concerns the landline &ADSL market the undisputed ruler is Telecom Italia, the major telecommunication company of the country, with 70% market share. Fastweb and Infostrada only retained respectively 9% and 8% of the market. In a global landscape where the telecommunication companies have seen their revenues and volumes increase substantially, the Italian operators have had a decrease in revenues of 4,3% in this sector. This was mainly due to the lower purchasing power of consumers and the increased competitive dynamics among the main actors triggering price wars. While the landline access sector had a 4,2% decrease, the broadband access registered a 1% increase from the previous year. The broadband penetration in the Country is still low compared to the EU5 average due to a structural backwardness.In conclusion, the commercial strategies carried out by the various operators didn’t result in an increase of the market but in a continual change among operators by the consumers. 2MICROENVIRONMENTAL ANLYSIS
  20. 20. MICROENVIRONMENTAL ANALYSIS ELECTRICITY & GAS The Electricity market is dominated by Enel with more than 27 % market share, followed by Eni and Edison. Eni Enel Edison Gdf Suez Iren E.On Hera Royal Dutch Shell Plc A2A In the Gas market Eni is the leader with 28 % market share, but even in this case Enel and Edison follow after. Source: Federazione Italiana per l’uso razionale dell’energia In spite of the liberalization of the sector, only 1 consumer out of 3 has switched his operator for the electricity and for what concerns the gas, this happened only in the 23% of the cases. 2 Source: Autorità per l’energia elettrica il gas e il sistema idrico Market Share in the Italian market
  21. 21. Final prices of Electricity for domestic use Final prices of Gas for domes1c use In Italy the price for electricity has steadily increased while for what concerns gas, a reduction in most of the European Countries has been observed. c c 2MICROENVIRONMENTAL ANALYSIS Electricity & gas Source: Autorità per l’energia elettrica il gas e il sistema idrico
  22. 22. Electricity consumption in TWh Source: Elaborations of Autorità per energia elettrica e gas based on data GRTN/TERNA On the consumption side, the yearly trend shows a constant but flat slowdown due in part to the economical downturn and in part to the policies of energy savings adopted by the Italian Government. 2MICROENVIRONMENTAL ANALYSIS ELECTRICITY & GAS
  23. 23. The FOOD ISSUE Separate collection on a regional basis Notwithstanding a significant difference between the North and the South, in all Italian regions a continual increase has been observed in the separate collection in the last years, reducing year after year the amount of Per capita food losses and waste, at consumption and pre-consumptions stages, in different regions According to the Food and Agricultural Organization every year 1,3 billion tons of food are wasted, equal to 1/3 of the total production destined to consumption. In Italy 149 kg of food are wasted annually per capita but the Economical crisis has caused a 57% reduction. Source: Global food losses and food waste by FAO Source: NoiItalia 2014 by Istat 2MICROENVIRONMENTAL ANALYSIS
  24. 24. Target: Italians, 18-60 y.o. At the initial stage we thought that our target could have an age range from 18 to 60 years old. The reason of our decision is that we believed the needs and perceptions about waste characterized this whole range. However, from the next step on, we decided to separate this wide range into 2 groups: one made of people from 18 to 30 and the other of people from 30 to 60. The logic behind this choice is that, even if needs for saving money and not wasting energy are the same, their life style and habits for what concerns this topics are really different. In order not to loose focus and to be effective we therefore carried on 2 separate focus groups. We furthermore needed more specific quantitative data directly from the side of the consumers and therefore we launched an online survey. Online Survey
  25. 25. They believe that on average: 19,71% of their electricity bill 13,71% of their gas bill Is DUE TO WASTES THEIR WASTE PERCEPTION % of respondents that strongly believe (top 3 boxes) that the following issues are important: Electricity waste: 58% Water waste: 72,8% Food waste: 77,8% Gas waste: 54,3% FIDELIZATION % of respondents that never changed their supplier: - Electricity: 60,5 % - Gas: 60,5 % - ADSL: 33,3% % of the respondents that switches ADSL supplier every 2-3 years is 40% 24,7% don’t own a landline telephone
  26. 26. HOME EXPENDITURES MANAGEMENT SYSTEM % of our respondents behaviors about monitoring utility expenditures -Don’t monitor : 35,8% -Monitoring irregularly : 51,8% -Monitoring monthly : 12,3% - Average level of satisfaction with current system : 6,12/10 - 42% believe they need a personal adviser to manage home expenses For 53% of our respondents, managing the bookkeeping of the house is a significantly annoying task. (top 4) 70,4% would like to spend little time on the management of the house (top 4) 73,5% would like to spend the least amount possible on bureaucracy 69% pays a lot of attention to always save as much as possible
  27. 27. The most significant results are: Keeping all the bills to check for expenses, occupies unnecessarry space in home. It is hard to find the bills of the previous months, because consumers need to look for in their archives. The necessity of swithcing all the lights off is an annoying task, specially when consumers want to relax at home and are in comfortable situations, as for example before going to sleep. Please find in the appendix the videos of the most relevant and significant moments of our empathic design Emphatic Design The reason why we applied the technique of the empathic design is that our customer population is defined and the usage is embedded in the environment but the usage/ experience of managing home expenditures is very complex and therefore difficult to articulate in all it aspects. Thanks to the fact that we were able to observe consumers in their native surroundings, we were capable of more deeply analyzing the problems of the potential user population. Tracking the expenses for people is very time consuming and a big problem.
  28. 28. The first insights were about the amazing product experience of the consumers. “The comfort of leaving the house with the lights on is something unbelievable” Giorgio (45). Besides the high level of technology of the products and difficulty to understand their usage in the very beginning, once the customers were able to set the application in a proper way they were able to exploit all the benefits of the service. Most of them declared to be very satisfied about their purchase’s decision. Customer Case Research The reason why we used this technique is that we wanted to clarify the full process of energy consumption in consumers’ homes. In addtition, it was useful to us in order to see hidden decision makers, unintended uses and unseen obstacles to purchase or consumption of the product/service. We decided to start from the stores and the channel through which products similar to our potential concept are bought. Through the retailer we managed to obtain contacts of some customers willing to take part in our research. We choose Belkin as a proxy firm for our service, as producer of general purpose elettrical devices and connectivity solutions. The biggest obstacles emerged at the level of the purchase decision. The service and the product was able to rouse a lot of interest among different types of consumers, but all of them though carefully about their final decision of purchase. Only after a careful research and comparison about the prices and benefits they decided to buy Belkin.
  29. 29. Moreover they were extremely worried about the settlement of a smart plug cause they considered the lights as a “very sensible part” of their house. Only one of them was expressing its problem, and he needed to call the company’s technicians to fix the plug due to certain problems with the energy supplying line of his home. Customer Case Research The awareness of the company in the high tech sector was really important to them as they stated that just the name and the reputation were able to influence them in their choice.
  30. 30. Date: 06/05/2014 – From 7 to 9 p.m Location: Röentgen Building Room SR01 Technical support: videocamera and audiorecorder Target population: 18-30 y.o. Projective techniques and methods applied: ü  Interpretation and completion task ü  Metaphorical elicitation Focus Group Complementary to our survey, a focus group was carried out in order to have a direct contact with consumers first of all to gain insights and opinions about their way of consumption in house and their approach with the waste. The final aim was to observe and to test the perception about smart home and our innovative service. This technique was specifically selected because of its appropriateness when it comes of gathering ideas for the introduction of new product and services.
  31. 31. . CRITICAL FINDINGS The first things consumers think about when someone talks about smart home are concerning environment, sustainability, energy and electricity consumption. “When I think about smart home I think about a house which cares about the enviroment” Smart home was also connected to kitchen, such as smart fridge, oven. The aspect of monitoring the house, the smart light and the control were also mentioned several times, where smartphone was imagined as a possible device to manage the house. Please find in the appendix all the collages produced by our respondents Focus Group We found the need to explore and study what smart home means to current consumers. We believed that it was paramount to understand what consumers believe a smart home is, what they think about it and moreover what are their expectations from it TAT
  32. 32. We asked to our respondents ‘’what do you think these people are thinking or saying?’ Through these images we wanted to understand how do people feel about managing the expenses and effects of it to their lifes. Please find in the appendix all the images used. “I guess they have got wrong the bill” She is probably checking the counter because she thinks that the estimation the electric or gas provider has done are not right. They are probably wife and husband discussing the bill and comparing each other with the previous expenses of the last month. Thanks to this methodology we were first of all able to probe attitudes and feeling of individuals deeply and systematically in relation to our subjects. We specifically chose this methodology because of the fact that it is used in situations in which breakthrough or unconventional offerings are desired, as in our situation. Focus Group Metaphorical Elicitation
  33. 33. Through this image we wanted to understand the feelings of respondents about waiting in a line for payments. “Such a mess. There is the number 20 and I am like one hundred..Is it possible that there is not an easier way to do that..” She is probably a girl annoyed by the huge queue of the post office. Focus Group Metaphorical Elicitation
  34. 34. Focus Group In general, they are aware, planned, organized and careful about their expenses, but for most of the respondents the care for the house is perceived as a disturb and a waste of time. Moreover for the bills there is an approximate check and the control was done in comparison with the last month, but without spending large amount of time doing it. The reason behind it is to save money on expenses for both economical and environmental reasons. For the same reasons, they check the lights and energy consumption expense because it is an easy task. For the food they care about offer and promotions of the retailers and they tend to save money leveraging on the quantity purchase. Moreover, they were more careful about the food’s waste (just 5-10€ out of total expenses of the month). They have never purchased food with e-commerce due to lack of trust. All our participants live apart from their families; alone or with flatmates they have to deal with the management of the house and above all its expenses. Utilities Food
  35. 35. In the last part of the focus group, we explained our idea. Some of them were sceptical about its value, for several reasons: •  In a smart home everything should be controlled but too many variables involved could lead to many threats and management problems. We assessed that our idea was too complex, since it involved many different factors (electricity, gas, water, food), and difficult to deliver and communicate. It was difficult to express it in a focused way and it was difficult for them to understand and most of all remember all the features of our concept. •  Their willingness to spend was in general really low, partly because of their lack of financial resources (they mostly get funded by their parents), partly because The concept and its following benefits were difficult to deliver and communicate, therefore most of the consumers do not perceive its value and finally because it was strictly dependent on how much they will be able to return from their investments “Nice, but I would rather offer this to families” This was a turning point on our concept generation phase. We decided that this age range could not be our target. Focus Group •  Some were not interested in having objectives for their expenditures because they are already used to avoid wastes. They preferred suggestions on how to save money. •  This target usually moves in/out houses very frequently, therefore the isn’t willing to sign up middle-long term contracts for the house. Clarissa, 22
  36. 36. OUR NEW TARGET Families and in particular parents for instance, want to have the control on their expenses and moreover they want to control the devices which their kids use. Simply they want a control over the whole devices at home. Moreover the families who own middle-big houses can be more willing pay since they have a lot of devices in house they need to control. According to our insights, we deduced that the young families moving into the new house are more willing to try new offer; in addition to this the generation Y is much more sensible towards the environmental issues and they are more willing to reduce the wastes. We also think that part of Generation X is interested in buying our service due to their higher willingness to pay but on the contrary a barrier for this target can be the usage of the smart devices, since they have lower penetration of the digitalization regarding smartphone and application in general, but our app is thought to be extremely easy and simple. After deciding on our actual targets, we decide to test our idea with a second focus group,to see if our project can really work or no. We therefore decided to test this intuition with further analysis.
  37. 37. DECISIONS TAKEN We also decided to eliminate the food aspect of our initial idea, in order to have a more focused and effective offer. This is the reason why it will not appear in the next focus group. SMART PLUG/ SWITCH + APP
  38. 38. We therefore refined our concept, also through the use of the Product Templates. More specifically, we opted for task unification: Taking into consideration an already existing product, smart plug and smart switches, we decided to add the additional task of bookkeeping: no other product present in the market has the possibility, apart from the monitoring of the kW consumption, to see the bills related.* Furthermore, through our idea not only we unified the task of bookkeeping in such a device, but we also include the expenses for the internet ADSL and home telephone. *This feature will be described in detail later Product templates TASK UNIFICATION
  39. 39. See appendix for detailed exchange of information We contacted a total of 2 lead user through specialized forums and discussions with the topic “Smart Home, yes or not?” such as: - - Moreover, we contacted a journalist that wrote several articles about smart home and smart home devices on the website We decided to use lead user analysis because of the importance of this methodology when it comes to high technology product. It was important for us to understand the trends in the markets, and get information on the reasons why they adopted a smart home technology, together with the obstacles they currently face. Still, after unlocking this sticking information we needed to asses if their opinion was applicable to typical users, reason why we carried on questionnaires and focus groups. SPECIFICATION OF LEAD USERS INDICATORS IDENTIFICATION OF SAMPLE OF LEAD USERS We appointed lead users as Italian consumers that are significantly interested in high technology products, to a point that they actively engage in this field (for example through forums, newspaper articles, etc.). Furthermore, since the Italian smart home market is still not well developed, we also decided to consider lead users those consumers that currently own an automated home system. Lead User Analysis
  40. 40. CONDUCT CONCEPT GENERATION WORKSHOP (i) See appendix for detailed exchange of information The communication was carried out by email and by telephone. The main results from the exchange of information were: Benefits that lead people to install a Smart Home system, and more in particular a smart plug/switch one are: •  The possibility to take control over your house, from wherever you are. In this way you can avoid damages or waste (e.g. the fridge that switches off while you are on holiday, lights left on, ect.) and manage it as you find it more appropriate. •  A series of small but important comforts when you are inside such as possibility of turning off with one click all the lights before going to sleep or waking up with the light getting into the room because the shutter opens automatically Obstacles that prevent people from installing such a system are: •  Costs: consumers don’t trust the economical returns they can get from such a system, therefore are not motivated to invest on them. •  Level of digitalization of Italian consumers: not everybody in Italy is able to deal with applications and advanced technology systems.
  41. 41. CONDUCT CONCEPT GENERATION WORKSHOP (ii) See appendix for detailed exchange of information In general, they confirmed the results we got from previous researches: the Italian market is still little but has great potential, because there is interest. They really appreciated our idea and underlined the needs for a marketing campaign to educate consumers. Two of them even suggested us the inclusion of the possibility to recognize when the kW consumption goes over the limit set by Enel after which the cost per kW would increase and there is a risk that the electric system shuts down. In these cases the system automatically switches off devices according to priorities set by consumers on the app. TEST CONCEPT WITH ORDINARY USERS Carried out throughout concept testing online survey and focus group (see next slides).
  42. 42. While before we were planning to focus our concept on the savings consumers could derive from such a system, we understood at this stage that it would be more effective to focus on the control and comfort benefits of it. These aspects are in fact significantly valued by current consumers, whereas at this market stage (such systems are not yet in the mass market) it wouldn’t be effective to stress on savings of both financial resources and environmental waste because consumers are still sceptical. CONSEQUENT DECISIONS TAKEN In fact, all our our primary data researches (focus group, online survey, etc.) confirmed this. But most of all, under a strategic marketing point of view, focusing on control and comfort instead of savings would allow a higher price in the market.
  44. 44. An innovative platform to assist the management of household utilities and control of its devices. APPLICATION SMART PACKAGE +
  45. 45. Most of the services and product concerning the light are extremely descriptive, but we need something original and innovative to attract our customers. We want an evocative name which stimulate curiosity. That is, a kind of scientific name which can remind the high tech sector and the electric one.   Ergon reminds both sectors for “er” and “on” inside which recall the energy sector. Why ? The prefix “Erg”due to its ancient remind to a lot of scientific terminology. The same word energy comes from the combination of “en”= inside and “ergon”= action, work. Through our service we want to give order to the actions and tasks people do inside their house. Moreover ergo is a term currently used in the formal italian vocabulary and it will be easy to remember.
  46. 46. OUR CLIENT 1°In the extremely liberalized Italian Market 2°In Europe by market capitalization 4°Italian group in terms of turnover 31 Million customers in Italy 40 countries globallyOperating in ENEL is an Italian electric utility company. It is now partially privatised with the Italian government control: the largest shareholders are the Italian Ministry of Economy & Finance ENEL is always adapting itself in term of sustainability and battle against the climatic change.
  47. 47. WHAT ARE THE SMART PLUGS ABOUT?The smart plug allows you to measure the power consumption of the connected device and can be used for energy saving purposes. The plug holds a microprocessor which enables it to identify connected equipment, track the energy consumption and to be controlled by an application. The smart switch is a device replaced with old fashioned light switches and it is basically new generation of light controlling system of your house. With a microprocessor it enables you to control your lights either touching or remote with your application. WHAT ARE THE SMART SWITCHES ABOUT? THE SMART PACKAGE
  48. 48. WHAT IS THE APP ABOUT? BOOKKEEPING SWITCH ON/OFF MONITOR From this “all in one” platform, you can accomplish in a clear and user-friendly way the following tasks:
  49. 49. MONITOR The app shows the energy consumption for each and every device and plug present in the house. In this way it is possible to know which device consumes more in order to be able to use resources in the most efficient way. It furthermore recognizes when the kW consumption goes over the limit set by Enel after which the cost per kW would increase and there is a risk that the electric system shuts down. In these cases the system automatically switches off devices according to priorities set by consumers on the app.
  50. 50. BOOKKEEPIN G In one section of the app it will be possible to see black- on-white all the expenses concerning electricity, gas, internet ADSL and house telephone. This offers great benefits to consumers, such as: •  Compare bills without wasting time to look for them in the different paper versions •  Set objectives of expenses and get notifications that gives you personalized advice to reach them (thanks to the information collected through the smart switches and plugs) •  Manage expenses “all in one”, a feature very much appreciated by our respondents
  51. 51. SWITCH ON/OFF Consumers will be able to switch on and off devices and light from everywhere: • when they are away from home (ex: light forgotten on) • when they are on holidays in order to avoid unnecessary annoyances (ex: fridge that accidentally goes off, as several our respondents mentioned) • when they are comfortably relaxing in their houses (ex: switch off all lights at once before going to sleep) They will also be able to regulate the temperature and plan it according to when they will be home. But not only consumers will be able to benefit from this added comfort to their life, they will also eliminate unnecessary energy consumption and save money, behaving at the same time in a eco- friendly way.
  52. 52. REVENUE MODEL Vodafone makes a company manufacture the smart plugs and smart switches and develops an app that works with it. Then sells them the smart plugs and smart switches to ENEL, at the price necessary to cover their costs: 8€* ENEL will provide the app for free to consumers and sell them a package of 15 between switches and plugs at a price of 15€ per month. In exchange, in order to benefit from the service and the app they will have to sign a minimum 2 years contract with both Enel and Vodafone. *See slide on price for the details. 8€*15 switches/plugs= 120€ 120€/24 months of the contract (see next step)=5€ Of the 15€ paid by consumers: - 5€ go to Enel to recover costs - 5€ go to Enel as profit - 5€ go to Vodafone as profit for the app 1 2 3 4 5
  53. 53. A NEW VALUE TRAJECTORY SEASONAL CONVERSION ME-TOO LINE EXTENSION NEW TO THE FIRM NEW TO THE WORLD 0% 10% 20% OPENING UP NEW VALUE TRAJECTORIES GOVERNING EXISTING VALUE TRAJECTORIES First of all, our concept is new-to-the-firm for both for Vodafone and for Enel because none of them offer yet this product. Although the set of smart plug and smart switch with the respective app is already present in the market, we believe that our concept is a product that opens up new value trajectory and it is new to the world for the following reasons: - They don’t exist if considered together with the possibility of managing the accountability side of it and together with the Internet ADSL and house telephone. - It is an innovation on the current market: no other utility company offer such a service and direct competitors are not to be found. - There is no current product that satisfies all these needs together, even if the single needs are present in the mind of the customer as well their solutions are inside the market
  54. 54. • It is in line with Vodafone strategy: sustainability, innovative and highly technological products, being customer-centred by making consumers’ life easier. • Vodafone will reinforce its presence in the home of its customers becoming a fundamental element o  Vodafone becomes synonym of home o  Vodafone gains/improves ‘’technology and innovation’’ brand associations. BENEFITS FOR VODAFONE • Revenues’ double digit growth • Expansion of its consumer base leveraging on Enel’s ones … AND UNDER A STRATEGIC POINT OF VIEW: IN TERMS OF IMAGE AND BRAND: • This project can be a good starting point for Vodafone to enter the smart home market, a market that is forecasted to grow exponentially. • This idea opens up new opportunities for Vodafone because it can allow the company to launch line extensions for later periods. • Vodafone will become a strategic hub • Customer “lock-in” through the 2 years contract • Fixed monthly revenues granted • Opportunity to create a loyal customer base
  55. 55. BENEFITS FOR ENEL •  ENEL will be able to collect huge amount of information about their customers: they can track all the consumption habits and even monitor which devices they use most, at what time, in which days •  Opportunity to set personalized offers to consumers according to the new information •  No competitor currently offers this system and no competitor has already this kind of information: strong competitive advantage •  Increase in consumer base through the new offer •  As for Vodafone, this project can be a good starting point for Enel to enter a smart home market, a market that is forecasted to grow.
  56. 56. A new app to enhance brand awareness and image in a sector with low trust Enel will have associations as: •  A smart and technologically advanced company •  User friendly •  An eco-friendly firm, caring about waste reduction Therefore it will be perceived not just as an electric provider but more. AND ABOUT ITS IMAGE...
  57. 57. After browsing through the on-going projects of the firm, we assessed that this concept is perfectly in line with Enel strategy. In 2012 the firm launched its own application ‘’ComeConsumo’’ for their consumers to check their consumption. Moreover we find out that “In order to help increase energy efficiency and meet European medium and long-term targets (2030-2050) for reducing CO2, Enel is developing innovative technologies to be made available to customers in order to optimize and rationalize energy consumption, so that the end user can play an active role through the use of digital devices that increase the THE MEET OF INTERESTS transparency of consumption, encourage participation in the energy market, and promote a more rational use of energy.” As a result we can say that we are on the same direction of Enel and thanks to the existing knowledge of Vodafone about technology and R&D , an agreement for our project would be very suitable for both sides. Because we are suppliying Enel what they are looking for, lowering their R&D cost Enel will be the first in the market with such an offer among energy companies.
  59. 59. Date: 13/05/2014 – From 7 to 9 p.m Location: Röentgen Building Room SR01 Technical support: videocamera and audiorecorder Target population: 30-60 y.o. Projective techniques and methods applied: ü  Interpretation and completion task ü  Stimuli design: Stripped concept testing; Pictures Focus Group Apart from the second-round online survey especially dedicated to concept testing, we believed we have the necessity to assess our concept also benefitting from a focus group, because in this way we would have the opportunity to better explain our concept and therefore gain direct and qualitative valuable feedback.
  60. 60. We decided to explain our idea through a stripped concept description, due to the fact that this type of technology is really new and complex and we wanted to be as clear as possible with our respondents. Furthermore, we agreed on the fact that the use of pictures was necessary because of the newness of the product and the awareness barrier we find out in the first focus group. In order not to influence our consumers and not to have a bias derived from the participant judging the layout of the image and not the concept per se, we provided different images. Stimuli Design Stripped concept description and pictures
  61. 61. Insights For what concerns the families, first there is less division of the task and only one or two people in general is in charge of tracking all the bills. For the individuals instead, the way to understand the expenses is not through checking how many kw they consumed, but simply by comparing the prices in different bills. Kw means nothing for them, to understand level of consumption they have to see actual price. The electricity was the type of consumption they care most about because it was the one where they are mostly wasting. Moreover people were also extremely careful in choosing the electric operators, and they tend to be more loyal to them. High loyalty was also meaning low elasticity to switch, and changing was often associate with problems and risks for consumers. Most of them use to pay their bills automatically through their bank account, even if some risk was included. “I have changed operator, but then I went back to Enel because somehow the name gave me security.” (Edy 45)
  62. 62. Insights (i) •  Overall we assessed that our idea has a space in the market and that there is interest for it, we therefore decided to carry on with it. •  We confirmed our strategy to leverage on the control of the bills and the comfort of the remote control, instead of on saving possibilities and the easy payment. FINAL RESULTS AND DECISIONS •  They monitor more or less precisely their utilities expenditures, and they were aware of the presence in the market of applications to do so. •  Firstly they were interested in the economy of the operators included in our service. •  They are willing to pay for having stability in costs but were moderately willing to change internet providers for having our service. Overall speaking, people are more flexible to change internet service than electricity service. •  They consider it as an innovative product but they are unfamiliar with its usage. •  They will be really interested in having them with a loan for use system.
  63. 63. After the focus group results we wanted to find out if our results could have been generalized. Concept Testing Online Survey We developed a short and effective survey to test our concept with our potential target 30-60. We assume that especially from the age of 30, people are used to set up family unit together; on the other side we did not want to overpass the 60 years old consumers because of their average technology abilities. In the survey we introduced our concept through an embellished explanation and visual images to help them to visualize it. We tested above all: ü  Interest ü  Overall Liking ü  Uniqueness ü  Purchase intentionsWe furthermore included questions about personal data with the aim to divide our target according to income and personal traits. Moreover, we tested their perceived innovativeness, the amount they will be willing to pay, which operators they have and their attitude toward the switch of operators.
  64. 64. Results The willingness to pay for the service decreases to the average of 6,6/10 with more dispersion in the data. In a scale from 1 to 9 the interest for the product is similar to the overall liking with a mean and median around 7. The standard deviation is around 2 points with a more dispersion for what concern the likeness. The concept testing survey confirmed what arised from the focus group. Enel is well established in the market and the consumer tend to trust it. Due to the fact that the consumers are more sensible for what concerns energy and electricity, they are also less likely to switch operators in comparison with the internet providers. The amount of money people are willing to pay concentrate on the average value of 300€. (For further data see the appendix) However the dispersion of data is much higher for the other answers. However, only 21 people out of 101 are willing to pay 360€ or more, our set price for the package (that is, in 2 years: 15*24)
  65. 65. Bass and Rogers Model We decide to use Bass and Roger to segment the market because it was a new to the world product. This model is able to forecast very precisely as far as concerns the opening up of new value trajectories. Assumptions •  We forecast the sales of our product focusing on the number of consumers first according to the results of our qualitative and quantitative analysis. •  In fact since it was not feasible to develop a cluster analysis with the results of our concept testing survey due to reduced number of variables inserted* we decided to segment the •  We use our concept testing survey to derivate the different features of our target and their approach to the product. However we are aware that in the long term the reliability of our concept testing survey made at the time t can vary and we try to adjust especially in the last periods market using the Roger and Bass model which identify 5 targets according to the percentage of customers acquired and the period of launch of the product.
  66. 66. 0 100000 200000 300000 400000 500000 600000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Numberofcustomersperyear Years Roger and Bass model forecast
  67. 67. FIVE TARGETS (I) Consumers which already have both a Vodafone and an Enel contract. Why? They will have no switching costs if they want to buy Ergon and a pre-existing relationship with both companies. To sum up they have very low barriers to adoption. Did we consider all of the innovators? No, in fact we just selected a fraction of those by analyzing our questionnaire and taking into consideration only those with an higher propensity to buy a certain commercial innovation, that is the ones who according to our questionnaire show more enthusiasm towards our service (likeness, interest and willingness to buy all over 7). They are the ones who buy our product for the comfort it offers. First phase: year 1 INNOVATORS 37.400
  68. 68. FIVE TARGETS (II) In the second period the innovation will spread significantly. Through Enel’s marketing investments and tested usage of innovators who will influence the others (q), the customers start perceiving the value of our offer. In this segment we estimate the presence of consumers who might have subscribed a telephone contract with another company different than Vodafone and would be willing to switch to Vodafone thanks to their high propensity to innovate. According to our questionnaire data, the customers of both Enel and Vodafone’s competitors willing to switch to Vodafone for a better offer it’s equal to 40%. So, we assumed that 40% of Ergon buyers are not yet a Vodafone client and those will be our new subscriber. They are the ones who will buy our product for both the control and comfort opportunities. Second phase: years 2-4 EARLY ADOPTERS 251.630
  69. 69. FIVE TARGETS (III) They are a considerable amount of consumers but have a lower willingness to pay and less interest and likeability than the previous groups but still quite high (more than 6). According to our estimate, part of them are still both Enel and Vodafone consumers (20%), the majority are Enel’s clients switching internet provider (68%) and the rest are the ones who change both electric and internet provider. Among these there will be consumers who will buy our product also to save money. In the third phase we assume that the features of our product will be well established. These are the consumers who change especially because of the opportunities of saving. In fact they have lower income than the others, less interest and likeness but still an average willingness to purchase (more than 5). We deduce that the percentage of the people willing to switch both electric and internet will increase significantly in this phase (around 30%). Third phase: years 5-9 EARLY MAJORITY 309.897 Fourth phase: years 10-14 LATE MAJORITY 400.317
  70. 70. The laggards of our model are similar to the late majority and they will purchase for the same reason. However, among them there could be wealthy people, with house management problems. These can have understood the big opportunity of control for our service. However according to the increased interest towards the smart home more and more consumers from different targets will be convinced to purchase our service as a first “smart home” product. FIVE TARGETS (IV) Fifth phase: years 15-17 LAGGARDS 122.05 5
  71. 71. 2015 2016 2017 2018 2019 ERGON USERS 37400 203889 425666 714696 1080409 of whom new Vodafone subscribers 0 81555,6 170266,4 285878,4 432163,6 ANNUAL REVENUES PER ERGON USER 60 60 60 60 60 ERGON REVENUES 2244000 12233340 25539960 42881760 64824540 ANNUAL REVENUES PER SUBSCRIPTION 420 420 420 420 420 REVENUES FROM NEW SUBSCRIPTIONS 0 34253352 71511888 120068928 181508712 TOTAL NEW REVENUES 2244000 46486692 97051848 162950688 246333252 TOTAL FIXED LINE REVENUES 676600000 723086692 820138540 983089228 1229422480 % increasing revenues 0,30% 7% 13% 20% 25% According to our forecasts, Ergon users will raise from 37.400 in 2015 up to 1,08 mln in 2019. By assuming that only 40% of them will be also new customers of Vodafone ADSL, the revenue stream can be divided in 2 part : 1.  Some initial revenues will come from Ergon service itself , since its users will pay to Vodafone an annual subscription of 60 euro for using the Ergon app. 2.  The others will come from new Vodafone ADSL ‘s customers which will subscribe in order to be able to us Ergon. As a result, our estimations show how the launch of Ergon will have a strong impact on fixed line revenues; in fact they will increase by 0,3% , 7% , 13% , 20% and 25% in the respective years of our budget. FORCASTED REVENUES
  72. 72. YEAR 2015 2016 2017 2018 2019 FIXED LINE OPERATIVE COSTS 2013 402500000 402500000 402500000 402500000 402500000 for new employees 0 1382714,568 2886740,23 4846855,743 7327012,558 supplying costs 0 22123433,08 46187843,7 77549691,89 117232200,9 administrative costs 0 4148143,703 8660220,7 14540567,23 21981037,67 TOTAL COSTS FOR NEW SUBSCRIPTIONS 0 27654291,35 57734804,6 96937114,87 146540251,2 TOTAL OPERATIVE COSTS 402500000 430154291,4 487889096 584826210,9 731366462 In the computation of operative costs, we have divided them in 2 categories : the ones due to the new subscriptions and the ones due to the launch and the management of Ergon service. To compute the first, we assumed they will increase proportionally with revenues, so we have applied the same growth rate of revenues to the operative costs of fixed line we derived by “Vodafone income statement 2013”. A second assumption regards how these costs are splitted : we came out with 3 categories (employees costs, supplying costs and administrative costs) with weight respectively the 5% , the 80% and the 15% of total operative costs. OPERATIVE COSTS ERGON 775000 1000000 1550000 2000000 2450000 forn new employees 675000 900000 1350000 1800000 2250000 for manager 100000 100000 200000 200000 200000 As said before, also Ergon entails operative costs due mainly to hiring new employees which will manage the promotion activities, post-sale assistance etc. This team (of 50 people in 2019) will be supervised by 2 new managerial figures.
  73. 73. MARKETING EXPENSES 44355000 44325000 44325000 44325000 44325000 ADVERTISINIG 44325000 44325000 44325000 44325000 44325000 produzione spot 1000000 1000000 1000000 1000000 1000000 via tradi>onal media 38325000 38325000 38325000 38325000 38325000 via social media 5000000 5000000 5000000 5000000 5000000 APP DEVELOPMENT 30000 0 0 0 0 As stated in our B2B relationship , Vodafone will also participate in the promotional investments sustained by Enel . These are mainly composed of advertising expenses which will permit Ergon to be communicated to via traditional and new media. In fact we aim to promote this new service through a TV-based promotion with some daily commercials to be launched in the prime time slot. Furthermore, we want to manage also a social media campaign in order to reach the most “innovation inclined” customers and the younger target.
  74. 74. YEAR 2015 2016 2017 2018 2019 ERGON USERS 37400 203889 425666 714696 1080409 of whom new Vodafone subscribers 0 81555,6 170266,4 285878,4 432163,6 ANNUAL REVENUES PER ERGON USER 60 60 60 60 60 ERGON REVENUES 2244000 12233340 25539960 42881760 64824540 ANNUAL REVENUES PER SUBSCRIPTION 420 420 420 420 420 REVENUES FROM NEW SUBSCRIPTIONS 0 34253352 71511888 120068928 181508712 TOTAL NEW REVENUES 2244000 46486692 97051848 162950688 246333252 TOTAL FIXED LINE REVENUES 676600000 723086692 820138540 983089228 1229422480 % increasing revenuese 0,30% 7% 13% 20% 25% FIXED LINE OPERATIVE COSTS 2013 402500000 402500000 402500000 402500000 402500000 for new employees 0 1382714,568 2886740,23 4846855,743 7327012,558 supplying costs 0 22123433,08 46187843,7 77549691,89 117232200,9 administra>ve costs 0 4148143,703 8660220,7 14540567,23 21981037,67 TOTAL COSTS FOR NEW SUBSCRIPTIONS 0 27654291,35 57734804,6 96937114,87 146540251,2 OPERATIVE COSTS ERGON 775000 1000000 1550000 2000000 2450000 forn new employees 675000 900000 1350000 1800000 2250000 for manager 100000 100000 200000 200000 200000 TOTAL OPERATIVE COSTS 402500000 430154291,4 487889096 584826210,9 731366462 FIXED LINE EBITDA 273325000 291932400,6 330699444 396263017,1 495606018 FIXED LINE EBITDA (%) 40% 40% 40% 40% 40% MARKETING EXPENSES 44355000 44325000 44325000 44325000 44325000 ADVERTISINIG 44325000 44325000 44325000 44325000 44325000 produzione spot 1000000 1000000 1000000 1000000 1000000 via tradi>onal media 38325000 38325000 38325000 38325000 38325000 via social media 5000000 5000000 5000000 5000000 5000000 APP DEVELOPMENT 30000 0 0 0 0 NMC -42886000 -26492599,4 -6557956,64 19688573,13 53018000,85
  75. 75. STRENGHT S OPPORTUNITIES THREATS WEAKNESS ES - Consumers’ possible feeling of “lock- in” - Not all Italian people are able to use high technology systems - Not trust on the benefits that this system could lead to - Highly imitable concept - Reaction of competitors - Double digit growth for - Vodafone - Positive image conveyed - Environmental friendly trend - Italian economic situation leads to needs for savings - Only a starting point of a possible process of managing all house expenses (included water and food) through an app - In line with technological modernization of the country trend (ex: from analogical to digital counters, etc.) - Strong brand equity and image - Vodafone Italian market is one of the most profitable at a global level. - Possession of big data, financial and technological resources and know-how. - Vodafone internet ADSL is not a leader in the Italian market -  The competitors moved first to the fiber technology and emphasized that with their communication. -  From our research emerged a bad perception of Vodafone internet ADSL SW OT
  76. 76. ü  Increase REVENUES by a double-digit especially from the fixed line sector, up to +21% in 2017 and +80% in 2019. ü  Focus on families and professionals (house- owners and not) with a sensibility for technology ü  Increase the AWARENESS toward smart devices ü  Become the market LEADER MARKETING GOALS AND OBJECTIVES
  77. 77. PRODUCT Our offer represents a BRAND EXTENTION for Vodafone. The product offered to the consumers will be branded ENEL, as well as the app, but the sentence “powered by Vodafone”, together with the Vodafone logo must be included every time the product is presented. BASIC PRODUCT: the App by Vodafone, the smart plugs and smart swithces produced by a third party on behalf of Vodafone. EXPECTED PRODUCT: Characteristics of current smart switches and plugs on the market, that is: the possibility to monitor kW of consumptions and to switch on/off lights and devices remotely AUGMENTED PRODUCT: bookkeeping in general and inclusion of Internet ADSL and home telephone in the bookkeeping POTENTIAL PRODUCT: possible future inclusion of all the home expenses, as initially thought with our “Vodafone Hub” (but then left because too complex to communicate to consumers considered the early stage in the market of our current product category)
  78. 78. PROMOTION B2B promotion strategy: it will consist in public relations between the two firms through sales manager force, agreements for the future co-development of the platform and post-sale assistance. B2C promotion strategy: Enel will be in charge for the main advertisement of the platform within its main communication channels (tv spots, radio, billboards and magazines). However, Vodafone will assist the promotion with displays inside the website, flyers in the Vodafone stores and promotional SMS to its clientele. The total costs of the campaign will be split between the two companies. Contingency Planning: in case the level of expected awareness coming form the customers it is not satisfactory withing 4-6 months we suggest to establish Enel corners inside the Vodafone stores and the main shopping centers so to allow customers to try the platform and enjoy its benefits.
  79. 79. Since it is a B2B business the placement for Vodafone will have a relatively low importance The distribution channel used by Vodafone will make use of couriers companies for the distribution of the products to Enel wharehouses. PLACEMENT For what concerns the B2C strategy, Enel will sell the packages through its vendors. The App instead will be available on the Apple Store and Google Play.
  80. 80. *For details about the price calculations please see appendix Vodafone is a worldwide known and respected brand which has a huge bargaining power. Moreover prices in the Europe are very high for our products, as competitors like Belkin are selling one smart plug+app in İtalian market for 49,99€. With our agreement, we are giving Enel opportunity to acquire a very low cost product and service (considering smart plugs,smart swithces and app), which is actually sold for very high prices. Vodafone has an existing technology and strong R&D in terms of applications/ smartphone services. Thereforeo with this purchase they are not only buying the smart plugs/swtiches but also a Vodafone supported App. To sum up, they are not only buying a physical product but also experience and knowledge of Vodafone in terms of technology. According to our revenue model, we are not charging Enel any extra cost from the smart plugs and switches, we are simply recovering the cost of purchase and transportation to the warehouse. Cost of a smart plug or a smart switch is the same = 7.30€ (cost of production in China)* Shipping cost for 20 foot container from Genova to Milan= 2000$= 1.459,80 € Transportation cost from Genova to Milan approximately = 250€ Also we can inlude variable costs like warehousing cost, labor cost and other expenses. In total we can say that, we will deliver the price 8€ per smart plug or smart switch PRICE Considering this PRICE, Why would ENEL buy from us instead of a direct purchase ?
  81. 81. WORK CONCLUSIONS We believe that our idea could seriously have space in the actual Italian market both because it satisfies actual and felt needs that consumers currently have and because they are not yet met in the market by any competitor. We are at the same time aware that it presents challenges not to be under evaluated and to be dealt with, including the backward patterns of Italian consumption and the lack of awareness of the benefits that these smart systems could lead to, with the consequent low willingness to pay for them. However, we believe that thanks to the strong and positive image of both Vodafone and Enel, and their financial and know-how capability to implement cooperative and effective marketing efforts, consumers can be educated on the matter in order to overcome these obstacles.
  82. 82. Our concept is implemented relying on the results of our qualitative and quantitative techniques. We are aware that the data deduction might not be statically reliable because results are based on a limited sample, that might not be sufficient to estimate the entire population’s behaviour. LIMITATIONS I We have estimated that a smart home concept will spread in the Italian market in the short-medium term (6 months- 1 year). As a matter of fact, we might consider that the digital sector in house is still very backward. For instance the digital devices in house are still very. In fact a big part of the electrical counters are still not digitalized due to recent Italians regulations (see secondary data).
  83. 83. The financial success of our concept is in biggest part due to high margins, rather than a significant increase consmer base. Moreover, we are aware that the financial results are not significantly impressing, but we had as priority the feasibility of the product, and still we forecasted a double digit growth. No market testing technique was applied, due to the scope of this project. During the process of opportunity identification a switch of target and a change of concept as occured. This has led us to a best idea, but it may also have complicated the understanding of its development from the point of view of readers. We are aware that the cost of developing an application could be costly investment for Vodafone but we are really convinced that the firm has the know how and the capabilities sufficient to implent that. In addition it must take into account that it is an existing the technology that it should be only adapted for the specific features mentioned above. LIMITATIONS II
  84. 84. But most importantly, thanks to the information acquired about the consumption habits of the Italian consumers Vodafone will have the possibility to create smart devices for the house in the future and became symbol of the smart home in Italy. The Beginning of a new Path In our vision Enel Ergon is the just first step forward towards a series of new strategic opportunities for Vodafone. Vodafone could first of all develop this concept until becoming a real home hub, by simply adding other expenditures to this existing system.
  85. 85. “Innovation is taking two things that already exist and putting them together in a new way” Tom Freston
  86. 86. Thanks for the Attention Team