Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics
    How Data Analytics Can Help You Construct A Financial Weather Map
    4 Min Read
    financial analytics
    Financial Analytics Shows The Hidden Cost Of Not Switching Systems
    4 Min Read
    warehouse accidents
    Data Analytics and the Future of Warehouse Safety
    10 Min Read
    stock investing and data analytics
    How Data Analytics Supports Smarter Stock Trading Strategies
    4 Min Read
    predictive analytics risk management
    How Predictive Analytics Is Redefining Risk Management Across Industries
    7 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Smart meters need smart systems, not a better user interface
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Visualization > Smart meters need smart systems, not a better user interface
Data Visualization

Smart meters need smart systems, not a better user interface

JamesTaylor
JamesTaylor
6 Min Read
SHARE

This article on CNET caught my eye this morning: Study: Smart meters need better user interface. I am always interested in smart meter stories as it has always struck me that this is a powerful way to reduce energy usage with all the long term benefits for consumers and producers this entails. I am often disappointed, however, as the smart meters are often discussed in the context of existing dumb systems.

What do I mean by this? Well, today the billing systems for the utilities are pretty dumb. Everyone gets the same price per unit of power and the power is simply totaled over a period so it can be billed. There’s no real decision here. But introduce a smart meter and power is being measured minute by minute, creating a richer picture of energy usage. In theory this richer picture will result in consumers changing behavior and utilities having more control of power consumption. But in practice it won’t, at least not while it remains attached to a dumb billing system.

This is because only a small percentage of people are altruistic – about 5% if I remember correctly. Everyone else needs some kind of reward. And a pretty immediate …

More Read

Just Add Analytics – Even to Toothbrushes
Easier Software Drives Data-Driven Decision Making
Experience vs. Data: Consuming Mark Zuckerberg as Data
The Analytics of Terrorism
Long Term Financial Planning with Financial Data Analytics

Copyright © 2010 http://jtonedm.com James Taylor

This article on CNET caught my eye this morning: Study: Smart meters need better user interface. I am always interested in smart meter stories as it has always struck me that this is a powerful way to reduce energy usage with all the long term benefits for consumers and producers this entails. I am often disappointed, however, as the smart meters are often discussed in the context of existing dumb systems.

What do I mean by this? Well, today the billing systems for the utilities are pretty dumb. Everyone gets the same price per unit of power and the power is simply totaled over a period so it can be billed. There’s no real decision here. But introduce a smart meter and power is being measured minute by minute, creating a richer picture of energy usage. In theory this richer picture will result in consumers changing behavior and utilities having more control of power consumption. But in practice it won’t, at least not while it remains attached to a dumb billing system.

This is because only a small percentage of people are altruistic – about 5% if I remember correctly. Everyone else needs some kind of reward. And a pretty immediate reward – we’re not good at waiting for the payoff. This means that although “Sixty-two percent of people said they would log onto an Internet site to check power consumption at least once a week” they are unlikely to do so, or to act on what they find, unless there is something in it for them in terms of reduced utility bills.

As Neil and I said in Smart (Enough) Systems, the use of smart meters forces a utility company to get serious about managing decisions, at least it does if they want to actually change anyone’s behavior:

If the company adopts “smart meters” that allow different pricing for electricity at different times of the day, its pricing decisions and customer segmentation decisions (for billing plans, for example) are good candidates for applying enterprise decision management. Pricing will go from simple and mechanical (with the old meters) to dynamic and complex. Working out pricing that incents off-peak usage profitably is hard and results in much more complicated pricing decisions.

Without a billing system that can do this, that can allow for different plans (that are themselves analytically derived so they are statistically valid) and potentially regular changes to pricing to drive desired behavior, smart meters will have little or no effect on actual usage. Now I know there are folks who say that the evidence is that people who get this data today do change their behavior. But the people making the effort to get this data today are those who are passionate about green causes and saving energy, not regular consumers.

In the article it is suggested that “utilities should explore partnerships with other industries well versed in introducing new products and services to consumers”. I would say they should explore partnerships with those used to developing different pricing models for different segments of a consumer base, used to using analytics to drive segmentation and used to developing flexible, configurable, decision-making systems.

BTW I wrote about this a little in a post called Mr Obama, smarten these systems.

Link to original post

TAGGED:decision managementsmart meters
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

protecting patient data
How to Protect Psychotherapy Data in a Digital Practice
Big Data Exclusive Security
data analytics
How Data Analytics Can Help You Construct A Financial Weather Map
Analytics Exclusive Infographic
AI use in payment methods
AI Shows How Payment Delays Disrupt Your Business
Artificial Intelligence Exclusive Infographic
financial analytics
Financial Analytics Shows The Hidden Cost Of Not Switching Systems
Analytics Exclusive Infographic

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Analytics: Not About Saving Time

7 Min Read

Here’s how to build on Business Analytics

7 Min Read

Information led transformation with decision management

3 Min Read

Register for the first Decision Management Systems Platform Report Webinar

1 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?