Now showing 1 - 7 of 7
  • Publication
    Empowering Local Electricity Markets : A survey study from Switzerland, Norway, Spain and Germany
    (Institute for Economy and the Environment, University of St. Gallen, 2017-10-03) ;
    Greater integration of renewable energy sources constitutes a key priority for successfully achieving agreed-upon climate goal targets. Nuclear phase out, decentralization of supply, liberalization, digital technological innovations, and the sharing economy are only some of the key issues that the energy industry is facing in the coming decade. Notwithstanding some of the associated challenges, a number of tremendous opportunities are also arising, and success can be achieved by introducing radically new business models. We are entering a period of so-called ‘platform revolution’: Platforms connect buyers and sellers in a virtual marketplace. Given the successful growth of platforms like Uber and Airbnb, it is difficult to ignore their disruptive potential for incumbent industries. This study uncovers the drivers of and barriers to developing platform solutions in the electricity market, notably ‘local electricity markets’. In local electricity markets, customers are empowered. They are connected through platforms. They actively participate in the marketplace by selling excess electricity that is produced locally using their own renewable sources, and by buying electricity that is locally produced. Consumers thus have the opportunity not only to consume, but also to produce electricity and to sell it in local markets, thereby, becoming prosumers! Local electricity markets constitute one of the most radical transformations, as they involve integrating renewable energy and selling it at the source. The agenda for empowering consumers and prosumers in such a local marketplace is long and challenging. It requires an adjustment of product and service offerings to better reflect existing and prospective consumer and prosumer needs. Putting existing and prospective consumers and prosumers center-stage is a critical step, if local electricity markets are to be a successful, forward-looking and sustainable solution. We firmly believe that the insights gained from this survey - which was conducted in four countries (Switzerland, Norway, Spain and Germany) - can be shared and acted upon by industry participants, consultants and citizens. The study was conducted by team members of the University of St. Gallen’s Good Energies Chair for Management of renewable energies, within the scope of the EU Horizon 2020 EMPOWER project (www.empowerh2020.eu).
  • Publication
    Business modeling as configuring heuristics : editors C. Baden-Fuller and V. Mangematin
    (Emerald, 2015-04-20) ;
    Hacklin, Fredrik
    While recent research has referred to a cognitive view on ‘business modeling', it remains unclear in specifying the cognitive foundations of how such modeling happens. This paper proposes building on heuristics as models of individual cognition, which have proved effective foundations of adaptive individual and managerial behaviors. By also drawing on gestalt theory to specify principles of modeling as rule-based form giving, we propose business modeling as a managerial cognitive process of configuring heuristics. The paper makes three contributions. First, we introduce heuristics to the business modeling literature, and so provide an established theory of adaptive individual behavior that strengthens the cognitive foundations of business modeling. Second, we conceptualize and theorize on the cognitive activity of business modeling as an iterative process of configuring heuristics by applying gestalt principles. Although the literature on business models has referred to the theories of configurations and gestalt, it has been left to this work to make the theoretical linkages between heuristics, gestalt theory and business modeling explicit. Third, our work contributes to the micro-foundations of the cognitive processes underlying business modeling and thus to broader accounts of adaptive managerial behaviors. --- This article is © Emerald Group Publishing, and permission has been granted for this version to appear here (https://www.alexandria.unisg.ch/Publikationen/240581). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.
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    Scopus© Citations 20
  • Publication
    Customer value of smart metering : Explorative evidence from a choice-based conjoint study in Switzerland
    (Elsevier, 2013-02)
    Kaufmann, Simon
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    Implementing smart metering is an important field for energy policy to successfully meet energy efficiency targets. From an integrated social acceptance and customerperceived value theory perspective we model the importance of customer value of smart metering in this regard. We further shape the model on a choice-based conjoint experiment with Swiss private electricity customers. The study finds that overall customers perceive a positive value from smart metering and are willing to pay for it. Further, based on a cluster analysis of customers' value perceptions, we identify four customer segments, each with a distinct value perception profile for smart metering. We find that energy policy and management should integrate a solid understanding of customer value for smart metering in their initiatives and consider different smart metering market segments within their measures.
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    Scopus© Citations 85
  • Publication
    Generic customer segments and business models for smart grids : Empirical evidence from a cross-European country study
    The implementation of smart grids - one of the urgent goals to meet international policy expectations for energy efficiency and CO2 reduction targets - is not a technological issue alone, as it also requires social acceptance by various stakeholders (Wolsink 2011). It is of particular interest that smart grid products and services provide value to the customer. On the one hand, customer value of smart grid technologies is crucial to customer acceptance. On the other hand, as customer value is a key driver for economic value creation and competitive advantage (DeSarbo et al. 2001; Porter 1985), it is also important for companies and investors and thus will affect market acceptance of smart grid technologies. In the literature, business models address the bridge between customers and company needs and serve as mediators between technology and economic success by providing a value proposition to customers and a revenue model for companies (Chesbrough and Rosenbloom 2002). However, we know from the literature that a one-size-fits-all business model may not lead to the best results as it might fail to address heterogeneous customer value perceptions (DeSarbo et al. 2001; Morris et al. 2005; Ruiz et al. 2007; Wiedmann et al. 2009). Thus, different business models providing different customer value propositions need to be developed to fit the different market segments in an optimal way. On the basis of a cross-European country study, we explore three generic B2C customer segments for smart grid products and services based on different value perceptions (Supporters, Ambiguous and Skeptics). Based on the segmentation we conceptually derive four generic business model designs with different customer value propositions best suited for approaching those segments (Saver, Smart+, Trader, Smart Camouflage). Implications for energy policy, research and smart grid management are derived from the findings.
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  • Publication
    Paying for flexibility - Increasing customer participation in demand response programs through rewards and punishments
    ( 2014-09-03) ; ;
    Cometta, Claudio
    Steering electricity demand will be a crucial aspect for guaranteeing energy system reliability when the share of fluctuating electricity supply from renewable energy increases. Thus, demand response programs (DR) play an important role in future energy systems (Hancher, 2013). However, an open question evolves around the question of how to best help customers to accept these programs (Hancher, 2013; Steg & Vlek, 2009, EU, 2003; He, Keyaerts et al., 2013). It is commonly assumed that customers should be financially compensated when they participate in DR (Hancher, 2013; DOE, 2006). This translates into understanding "Paying for flexibility" as rewarding DR participants for the provided flexibility. However, "Paying for flexibility" could also be understood in the way that customers will have to pay if they still want to have the flexibility of using electricity whenever and wherever they want in the future. In this case, DR would - instead of rewarding customers for participation through financial compensation - punish those customers who do not participate through the introduction of service fees. Similar to rewards, punishments are a measure of operant conditioning to influence behaviour (Skinner, 1938) and they have effectively been used in various social systems, e.g. traffic fines for speeding. In the light of recent theories of decision-making that distinguish between heuristic or "automatic" and information-based or "deliberative" decision-making processes (Weber & Johnson, 2009), the paper at hand investigates the role of punishment and reward for consumer acceptance of DR. Due to the common assumption that rewards are the appropriate intervention to increase customer acceptance of DR (Hancher, 2013; DOE, 2006) which is in line with established views in environmental behaviour (Osbaldiston & Schott, 2012; Kazdin, 2009; Steg & Vlek, 2009; Iyer & Kashyap, 2007; Abrahamse et al. 2005; Geller, 1995), electric utilities are inclined to design DR based on rewards. However, in an experimental study with 151 undergraduate students in their role of energy consumers at a business school in Switzerland, we find that DR schemes based on punishments are more effective in increasing customer participation in the program compared to DR schemes based on rewards. These findings can be explained with prospect theory and loss aversion (Kahneman & Tversky, 1984). We also find that there is no significant effect of punishments and rewards on customer loyalty towards the firm and attitude towards joining the DR. Thus, punishments are more effective in increasing customer participation without jeopardizing the loyalty of a company's customer base and the consumer's attitude towards joining DR. Additionally, they appear more efficient from an economic point of view as they result in lower costs (Balliet et al., 2011; Gächter, 2012): whereas the variable costs for reward-based DR increase with each participating customer, there are no variable costs for punishment-based DR. Based on our findings we encourage firms, policy makers and research not to be afraid of environmental fines and optimize the design of their customer intervention measures.?