Nest: Outside-In approach delivers where utility industry failed

Author: David Moschella, James Kirk (

Categories: energy industry

When you look at Silicon Valley today they have a strategy to empower the consumer and the internet of things in just about every industry and therefore we don’t see a single sector that is really immune from these changes.Take a good example in the utility industry. For decades they have talked about smart metering systems and trying to build a smart grid, and the companies couldn’t do that on their own, but now you see something comes along; The ‘Nest’ thermostat - A simple device made by a company that is designed for the internet, that a consumer can operate for themselves and all of a sudden that little device becomes the end point to make that stuff happen and it has to be done, something at an industry level that no one firm could make that happen because they were thinking what they would do in a traditional sort of metered approach. So that is a very good example of just a small change.  I can give you a couple more if you want, it is probably useful.  If you look at health care today, the whole generation of consumerised testing – so you can take your own pulse or blood pressure, there is a company that we work with called Theranose which is trying to basically change the cost of traditional blood tests from hundreds of dollars and many tests to a single test for ten dollars  that will check all of those things, that can be done at a Walmart or a Boots and so all of Silicone Valley right now is trying to essentially empower the edge, the outside of the marketplace with new capabilities that then feed back into the firm.  There is virtually no industry that we have seen that doesn’t have a very real Outside In story.

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