Big Data for Big Energy Savings.
Articles on big data and its many implications for the world around us are yet around for a while and numerous. From improving healthcare and optimizing firm performance to fooling terrorists plots by the NSA, big data’s reach touches nearly all imaginable facets of the modern world. The plots and marketing of the hit series House of Cards has even been based by its creators, Netflix, on observations from their 33 million users, a topic various authors discussed on this blog. These are all great examples of the seemingly unlimited applications of big data and the impact it can have on all of us.
Though, what seems to miss in all the buzz around Big Data is what it can do to help up face the probably biggest challenge of our generation; drastically decreasing our energy consumption.
Is this because of the reluctance of the consumer or are the large energy companies to blame?
Either way, the solution may very well lie in the use of Big Data.
If Netflix created House Of Cards success largely by using the known habits, preferences and ratings of its users available to them, why can’t the energy firms come up with personalized advices and energy saving offerings to its customers?
The Tata Consultancy Services 2012/2013 Big Data Study revealed that the Energy sector is one of least advanced sector with regard to the use of Big Data. Whereas in the same study is stated that Energy firms Big Data spending in 2012 resulted in a 60.6% return, the second highest score!
Table from The Tata Consultancy Services 2012/2013 Big Data Study
Energy companies could start right away with using the terabytes of data on past bills and participation in past energy saving initiatives to send out personalized advices on energy saving. Furthermore, they can send personalized offers for energy-saving products and measures. This can greatly increase the engagement of their customer and result in new revenue streams. And effectively face the greatest challenge of our generation.
How would you feel about receiving personalized advices and offerings to reduce your energy consumption from your energy provider, based on your past energy consumption behaviour?
The Tata Consultancy Services 2012/2013 Big Data Study, 2013, Tata Consultancy Services Limited
Why Big Data Analytics Could Spell Big Energy Savings, 27 February 2013, Spotfire Blogging Team