ECN publication
Deliverable D7 : PLC service business model development and market survey instrument (final version, 29 december 2000). PALAS - Powerline as an Alternative Local AccesS IST-1999-11379
Kamphuis, I.G.; Warmer, C.J.; Sweet, P.; Olsson, M.; Akkermans, H.
Published by: Publication date:
ECN Energy in the Built Environment 1-12-2000
ECN report number: Document type:
ECN-C--01-037 ECN publication
Number of pages: Full text:
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Logical elements of business models where technologies and services are embedded in larger complex technical and economic systems are explored, building on previous PALAS deliverables to arrive at some necessary elements for successful PLC service diffusion. As a second result, the design of a market survey, planned to investigate residential customer interests and attitudes with respect to PLC-related services, is presented. The authors present three useful analytic frameworks for exploring the potentials and challenges facing the development of PLC business models and services. The competitive forces model aims to model the competitive environment of a firm in terms of a number of generic external forces influencing the competitive position of a firm and its market offerings. It shows that different PLC-based services behave differently under their respective competitive force fields. The value chain model is used to analyse the internal operations. It views a firm as a sequence of activities (analogous to an industrial 'product line'), each of an input-processing-output nature, culminating in the products or services offered. PLC services will lead to deployment via business models where alliances, partnering and outsourcing play an important role. In the innovation attributes model the authors address five attributes in their relevance to PLC services: relative advantage, compatibility, complexity, trial ability and observability. Next, they identify the techno-, market- and business logics underlying successful market offerings and business models for PLC services. They recommend that clarifying differences between market offerings and business models helps clear the analytic space for better designing and evaluating market offerings and linking them to alternative business models for PLC. Also the technologics implied by the wide range of narrowband to broadband technological platforms theoretically available are captured. In the second part of the report a consumer survey to examine consumer acceptance of PLC market offerings is presented. This effort represents an in depth foray into some specific market logics surrounding the potential adoption of some PLC-based services by households. The survey will be administered in a local market in the Netherlands in 2001. It will be analysed using a psychometric-based segmentation tool, which provides a wider perspect live than regular demographic analysis. 13 refs.

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