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
    media monitoring
    Signals In The Noise: Using Media Monitoring To Manage Negative Publicity
    5 Min Read
    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
  • 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

Solving Smith’s Dashboard Disdain: Reimagine BI communication with Collaborative BI
Impressions of SAP HANA
You Can Divide and Conquer Through Segmentation
How Big Data Becomes Smart Data
Wow vs. Ah-ha: Artists and Practitioners in Data Visualization

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

edi compliance with AI
AI Is Transforming EDI Compliance Services
Exclusive News
companies using big data
5 Industries Driving Big Data Technology Growth
Big Data Exclusive
software developer using ai
California AI Companies That Are Set for Long-Term Growth
Development Exclusive
data science professor
The Power of Warm-Ups: Setting the Stage for Learning
Exclusive News

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Do We Really Need More Data?

3 Min Read

Decision engines in financial services

6 Min Read

Decision management can improve warranty claims and customer experience

4 Min Read

Here’s how to build on Business Analytics

7 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 chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots

Quick Link

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

Sign in to your account

Username or Email Address
Password

Lost your password?