Final Project Digital Product Development HOMEA Efficient electricity usage submitted by Steven Zheng, Vincent Cadoz, Hoang Dung Nguyen at the J ̈ onk ̈ oping University, J ̈ onk ̈ oping School of Engineering Course Manager: Jasmin Jakupovic Date: 21.10.2022 Contents 1 Problem Description 8 1.1 Energy Context . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.2 The problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.2.1 Energy consumption . . . . . . . . . . . . . . . . . . . 10 1.2.2 Electricity system in Sweden . . . . . . . . . . . . . . . 13 1.2.3 Heat pumps . . . . . . . . . . . . . . . . . . . . . . . . 16 2 Marketing and Management Analysis 19 2.1 Business Model Canvas . . . . . . . . . . . . . . . . . . . . . . 19 2.1.1 Key partners . . . . . . . . . . . . . . . . . . . . . . . 20 2.1.2 Key activities . . . . . . . . . . . . . . . . . . . . . . . 20 2.1.3 Key resources . . . . . . . . . . . . . . . . . . . . . . . 20 2.1.4 Key proposition . . . . . . . . . . . . . . . . . . . . . . 21 2.1.5 Customer relationships . . . . . . . . . . . . . . . . . . 21 2.1.6 Channels . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.1.7 Customer segments . . . . . . . . . . . . . . . . . . . . 21 2.1.8 Cost structure . . . . . . . . . . . . . . . . . . . . . . . 22 2.1.9 Revenue streams . . . . . . . . . . . . . . . . . . . . . 22 2.2 Competitor Analysis . . . . . . . . . . . . . . . . . . . . . . . 22 2.3 SWOT-Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3 User Research 28 3.1 Result User Research . . . . . . . . . . . . . . . . . . . . . . . 28 3.1.1 User Interview Round 1 . . . . . . . . . . . . . . . . . 29 3.1.2 User Interview Round 2.1 . . . . . . . . . . . . . . . . 30 3.1.3 User Interview Round 2.2 . . . . . . . . . . . . . . . . 32 3.1.4 Expert Interview . . . . . . . . . . . . . . . . . . . . . 33 3.2 Personas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.3 Customer Journey . . . . . . . . . . . . . . . . . . . . . . . . 39 1 4 Unique Selling Points 43 4.1 The Homeapp . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.2 The profitability . . . . . . . . . . . . . . . . . . . . . . . . . . 44 4.2.1 HOMEA profitability . . . . . . . . . . . . . . . . . . . 45 4.2.2 The battery profitability . . . . . . . . . . . . . . . . . 45 4.2.3 The heat pump profitability . . . . . . . . . . . . . . . 45 4.2.4 The heat pump and battery profitability . . . . . . . . 46 5 Concept of Solution 48 5.1 Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 5.2 Battery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.3 House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.4 Concept without devices . . . . . . . . . . . . . . . . . . . . . 53 5.4.1 Heat pump . . . . . . . . . . . . . . . . . . . . . . . . 53 5.4.2 Battery . . . . . . . . . . . . . . . . . . . . . . . . . . 53 5.4.3 None . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 5.5 Moodboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 6 Definition of the MVP 56 6.1 Sitemap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 6.2 Wireframes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 6.2.1 Home . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 6.2.2 Battery . . . . . . . . . . . . . . . . . . . . . . . . . . 58 6.2.3 House . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 7 Product Branding 61 7.1 Logo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 7.2 Color palette . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 7.3 Typography . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 7.4 Mission and Vision . . . . . . . . . . . . . . . . . . . . . . . . 63 7.5 Tone of Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 8 Quality Assurance 65 8.1 Human-centered design process . . . . . . . . . . . . . . . . . 65 8.2 Design System . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 8.3 Nielsen Usability Heuristics . . . . . . . . . . . . . . . . . . . 69 9 Usability and Accessibility 71 9.1 Tree testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 9.2 Usability testing . . . . . . . . . . . . . . . . . . . . . . . . . . 72 9.2.1 Method . . . . . . . . . . . . . . . . . . . . . . . . . . 72 2 9.2.2 Process . . . . . . . . . . . . . . . . . . . . . . . . . . 73 9.2.3 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . 74 9.2.4 Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 76 9.3 Accessibility testing . . . . . . . . . . . . . . . . . . . . . . . . 76 9.3.1 WCAG . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 10 Updated MVP 79 10.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 10.2 Battery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 11 Launch Strategies 85 11.1 Extensive market research and analysis . . . . . . . . . . . . . 85 11.2 Promoting the App . . . . . . . . . . . . . . . . . . . . . . . . 85 11.3 Buyer personas . . . . . . . . . . . . . . . . . . . . . . . . . . 86 11.4 See Think Do Care phases . . . . . . . . . . . . . . . . . . . . 87 12 The Progress 89 12.1 Problem description . . . . . . . . . . . . . . . . . . . . . . . . 89 12.2 Ideation process . . . . . . . . . . . . . . . . . . . . . . . . . . 90 12.3 Solution process . . . . . . . . . . . . . . . . . . . . . . . . . . 90 12.4 Digital Product Realisation process . . . . . . . . . . . . . . . 91 12.4.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . 91 12.4.2 Quality Assurance . . . . . . . . . . . . . . . . . . . . 91 12.4.3 Usability Testing and Accessibility . . . . . . . . . . . 91 12.4.4 Updated MVP . . . . . . . . . . . . . . . . . . . . . . 92 12.4.5 Launch Strategy . . . . . . . . . . . . . . . . . . . . . 92 13 Future Work 93 13.1 Digital Product Development . . . . . . . . . . . . . . . . . . 93 13.2 Digital Product Realisation . . . . . . . . . . . . . . . . . . . 94 Bibliography 95 A User- and Expertinterviews 100 A.1 Userinterview Round 1 . . . . . . . . . . . . . . . . . . . . . . 100 A.2 User interview Round 2.1 . . . . . . . . . . . . . . . . . . . . . 102 A.3 User interview Round 2.2 . . . . . . . . . . . . . . . . . . . . . 105 A.4 Expert interview . . . . . . . . . . . . . . . . . . . . . . . . . 106 B Prototype 109 C Brand Board 110 3 D System Usability Scale Template 113 4 List of Figures 1.1 Overview of the Energy system . . . . . . . . . . . . . . . . . 9 1.2 Energy Balance of Sweden . . . . . . . . . . . . . . . . . . . . 10 1.3 Leading countries of electricity consumption in Europe . . . . 11 1.4 Europe population by countries, 2022 . . . . . . . . . . . . . . 12 1.5 Monthly EU electricity consumption . . . . . . . . . . . . . . 13 1.6 Price of electricity from 2013 to 2022 . . . . . . . . . . . . . . 13 1.7 Vattenfall, Electricity hourly rate . . . . . . . . . . . . . . . . 14 1.8 Sweden hourly price on the 2021 year . . . . . . . . . . . . . . 15 1.9 NordPool Day-ahead price overview . . . . . . . . . . . . . . . 16 1.10 Annual amount of heat pumps . . . . . . . . . . . . . . . . . . 17 1.11 Installed heat pump stock by region, 2010-2030 . . . . . . . . 17 1.12 Heat Pump sales in Sweden 1982-2018 . . . . . . . . . . . . . 18 2.1 Homea’s Business Model Canvas . . . . . . . . . . . . . . . . . 19 2.2 RESU mobile application . . . . . . . . . . . . . . . . . . . . . 26 2.3 Tesla mobile application . . . . . . . . . . . . . . . . . . . . . 26 2.4 Smappee mobile application . . . . . . . . . . . . . . . . . . . 26 2.5 Heat Pump Easy Control mobile application . . . . . . . . . . 27 3.1 Interview subjects round 1 gender . . . . . . . . . . . . . . . . 29 3.2 Interview subjects occupation . . . . . . . . . . . . . . . . . . 30 3.3 Interview round 2.2 subjects gender . . . . . . . . . . . . . . . 31 3.4 Place of residents of the interview subjects 2.2 . . . . . . . . . 31 3.5 Experience with heat pumps in years of the interview subjects 2.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.6 Persona without heat pump and battery . . . . . . . . . . . . 34 3.7 Persona with battery . . . . . . . . . . . . . . . . . . . . . . . 35 3.8 Persona with heat pump and battery . . . . . . . . . . . . . . 37 3.9 Persona with heat pump . . . . . . . . . . . . . . . . . . . . . 38 3.10 Customer Journey with no device . . . . . . . . . . . . . . . . 39 3.11 Customer Journey with a battery . . . . . . . . . . . . . . . . 40 3.12 Customer Journey with a heat pump . . . . . . . . . . . . . . 41 5 3.13 Customer Journey with battery and heatpump . . . . . . . . . 42 4.1 Graph of the cost of electricity for the 27 sep 2022 . . . . . . . 46 4.2 Table of the cost of electricity for the 27 sep 2022 . . . . . . . 46 4.3 Heat pump versus other forms of heating . . . . . . . . . . . . 47 5.1 Prototype tab home overview . . . . . . . . . . . . . . . . . . 49 5.2 Prototype tab battery overview . . . . . . . . . . . . . . . . . 50 5.3 Prototype tab house overview . . . . . . . . . . . . . . . . . . 52 5.4 Moodboard of HOMEA . . . . . . . . . . . . . . . . . . . . . 55 5.5 Contrast test result . . . . . . . . . . . . . . . . . . . . . . . . 55 6.1 Site map of HOMEA before user interview . . . . . . . . . . . 57 6.2 Site map of HOMEA after user interview . . . . . . . . . . . . 57 6.3 Wireframes of the Home screen . . . . . . . . . . . . . . . . . 58 6.4 Wireframes of the Battery monitoring screen . . . . . . . . . . 59 6.5 Wireframes of the House monitoring screen . . . . . . . . . . . 60 7.1 HOMEA Logo . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 7.2 Brand color palette . . . . . . . . . . . . . . . . . . . . . . . . 62 8.1 Human-centered-design process progress . . . . . . . . . . . . 66 9.1 Old contrast test result WCAG . . . . . . . . . . . . . . . . . 77 9.2 Old contrast test result WCAG . . . . . . . . . . . . . . . . . 78 10.1 MVP: Old overview design from Figma . . . . . . . . . . . . . 81 10.2 MVP: New overview design from Figma . . . . . . . . . . . . 82 10.3 MVP: Old battery design from Figma . . . . . . . . . . . . . . 83 10.4 MVP: New battery design from Figma . . . . . . . . . . . . . 83 10.5 MVP: battery tutorial from Figma . . . . . . . . . . . . . . . 84 C.1 HOMEA Brandboard part 1 . . . . . . . . . . . . . . . . . . . 111 C.2 HOMEA Brandboard part 2 . . . . . . . . . . . . . . . . . . . 112 D.1 System Usability Scale questionnaire . . . . . . . . . . . . . . 114 6 List of Tables 2.1 Competitor analysis . . . . . . . . . . . . . . . . . . . . . . . . 23 2.2 SWOT-Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.1 Additional requirement ideas for the app . . . . . . . . . . . . 33 4.1 The initial investment costs . . . . . . . . . . . . . . . . . . . 44 7 Chapter 1 Problem Description In this chapter, the context of energy use and generation is first discussed, focusing on the country of Sweden. It serves for a better understanding of the context. As a result, the problem is described. 1.1 Energy Context Sweden is engaged in using and producing environmentally friendly and sustainable energy. They are a world leader in decarbonization. [Age] The following figure describes an overall picture of the energy system, which can be divided into three parties. These would be supplied primary energy, transformation and transmission, and energy consumption. They focus on renewable energy sources such as wind, solar, hydro, and biofuel. [Age22] 8 CHAPTER 1. PROBLEM DESCRIPTION Figure 1.1: Overview of the Energy system in Sweden [Age22] At the same time, the use of energy balance is always balanced. It means that Sweden uses its energy to equal the sum they produce. [Age22] The following figure illustrates the balance. 9 CHAPTER 1. PROBLEM DESCRIPTION Figure 1.2: Energy Balance of Sweden 2020 [Age22] 1.2 The problems This chapter discusses the problem in more detail, based on the focus area of Sweden. 1.2.1 Energy consumption From the following figure, it can be seen that Sweden consumes a relatively large amount of electricity compared to the other countries. They are in the 10 CHAPTER 1. PROBLEM DESCRIPTION top five of the countries that consumed the most electricity per capita in Europe and are on the 4th place. [Stac] Figure 1.3: Leading countries in per capita electricity consumption in Europe in 2021[Stac] 11 CHAPTER 1. PROBLEM DESCRIPTION The comparison is especially illustrated in the number of inhabitants, which is only 10 million in Sweden and is low compared to the other countries [wor][Stab]. Figure 1.4: Europe population by countries, 2022[Stab] In winter, European countries, including Sweden, tend to double their elec- tricity consumption. The countries sometimes even double their energy consumption compared to summer times. The following figure shows the development of electricity consumption over an entire year from 2017 to 2022, in the winter months of December, January and February. 12 CHAPTER 1. PROBLEM DESCRIPTION Figure 1.5: Monthly EU electricity consumption [Stac] 1.2.2 Electricity system in Sweden As can be seen in the following figure, electricity prices have increased in recent years. Especially between 2020 and the beginning of 2022, prices have increased by 100%. [Age22] Figure 1.6: Price of electricity in Sweden from 2013 to 2022 [Age22] 13 CHAPTER 1. PROBLEM DESCRIPTION Furthermore, gas consumption for heating in winter in Europe is 2.5 times higher than in summer. The seasonal variation is said to be 30% for electricity. [eur] This illustrates that energy consumption in winter is significantly higher than in summer. Especially with the current inflation, the rate has increased to 10.8% as of September 2022. [Eco] Furthermore, the ongoing Ukraine war plays a role in the price increment. This year (2022), a new payment model for electricity was introduced by law, where the resident pays for electricity depending on the time and location of his home [Lag]. The following figure shows a picture of the prices depending on the times. [Vat] Figure 1.7: Hourly rates of electricity by Vattenfall between 1 september 2022 to 7 september 2022 [Vat] The previous figure shows the price fluctuations for electricity throughout the day. It is straightforward to see that prices are exceptionally high at times when electricity is typically needed the most. In contrast, electricity prices are lowest during nighttime hours. The price at the highest hours may be up to 25 times higher than at night’s lowest prices. Furthermore, it can be noted that the prices vary from day to day. [Vat][Tib] During winter time, 14 CHAPTER 1. PROBLEM DESCRIPTION the highest peak of the electricity’s price is reached. Besides, during winter, when the consumption is higher, the price will increase accordingly to the peak of consumption [Vat]. The following figure shows the evolution of the hourly price of Vattenfall [Vat] during the year 2021. Figure 1.8: Sweden hourly price on the 2021 year in ̈ ore/kWh [Vat] Sweden is divided into four areas, where the price differs according to the electricity company NordPool. The figure below shows the electricity prices depending on the living area and times. Both make up the total price of electricity. Furthermore, the electricity prices are significantly lower in the north than in the south. [Norc] 15 CHAPTER 1. PROBLEM DESCRIPTION Figure 1.9: NordPool Day-ahead price overview in SEK in Sweden[Norb] 1.2.3 Heat pumps Sweden is one of the coldest countries in the world [Norb]. It is logical to conclude that heating and energy consumption is more in the winter than in summer. There are different heaters, such as electric boilers, water-filled radiators, wood heaters, and heat pumps. Especially the sale of heat pumps has increased consistently in recent years. The number has more than doubled in the last 14 years [Jon]. The heat pumps count as success evolution in Sweden [hea]. The following figure shows that in 2020 the use of heat pumps was 2 million [Staa]. For the year 2030, the following figure shows that the use of heat pumps is estimated to increase six-fold from 2010 to 2030 [IEA]. 16 CHAPTER 1. PROBLEM DESCRIPTION Figure 1.10: Annual amount of heat pumps in operation in Sweden from 2013 to 2020* [Staa] Figure 1.11: Installed heat pump stock by region, 2010-2030 [IEA] 17 CHAPTER 1. PROBLEM DESCRIPTION In comparison, the following figure shows the number of heat pumps sold in 1982, when the sales figures were still below 40,000. Figure 1.12: Heat Pump sales in Sweden 1982-2018 [Jon] However, heat pumps purchase price are significantly higher than the conven- tional heating options. The purchase price is between 30 000 SEK and 100 000 SEK and is an investment. The heat pumps need electricity to function. Especially in wintertime when the temperatures are below two degrees, even double the electricity is needed, which is a problem. [Cho] It can be concluded that heat pumps will grow in Sweden in the future, which is why it is considered less of a problem, but a prediction to adapt to the time and heating method. However, the double electricity consumption can be seen as a problem in the winter. It will therefore be included in the concept of the solution. Furthermore, the general high energy consumption in Sweden, the new payment model, and the rising costs are considered and will be addressed as central problem points of the future concept. 18 Chapter 2 Marketing and Management Analysis 2.1 Business Model Canvas A business model canvas was created to maintain, understand and optimize the overview. A larger view can be found in the Figma document [Hom]. Figure 2.1: Homea’s Business Model Canvas [Hom] 19