A warmer way to do business Customer-driven business model innovation in the Swedish district heating industry
Publicerad
Författare
Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
District heating currently supplies over 60 % of Sweden’s total heating demand, making
it a cornerstone of the country’s energy system. Despite this central role, district heating
companies face increasing customer scrutiny due to rising prices, evolving expectations,
and growing competition from competing technologies, mainly heat pumps. Historically,
the sector’s natural monopoly characteristics have shielded it from competitive pressures,
and its extensive municipal ownership has contributed to a limited focus on market positioning
and customer perception. However, as scrutiny intensifies, there is an urgent need
to reconsider how district heating companies operate, structure their business models, and
engage with their customers.
This research investigated strategic business model innovation opportunities for district
heating companies in response to these challenges. The research was carried out in collaboration
with Norrenergi AB, a district heating and cooling company in the Stockholm
region. The research applied an outside-in perspective, drawing on insights from interviews
with customers, industry professionals, and experts to incorporate viewpoints beyond solely
internal perspectives.
The findings indicate that the current value offering in the district heating industry is undifferentiated
and therefore often fails to adequately meet the diverse needs that customer
segments seek to fulfill when purchasing an energy solution. Additionally, concerns were
raised about the industry’s pricing structure, a lack of customer focus and engagement,
and a perceived slowness in adapting to evolving customer expectations. The report recommends
that district heating companies move beyond traditional segmentation schemes
and adopt a jobs-to-be-done approach. This shift would enable the creation of more tailored
value propositions for distinct customer profiles and guide the development of aligned
value creation, delivery, and capture components. For theory, the report contributes with
a systematic, outside-in approach to business model innovation, operationalized through a
conceptual lens that follows a phased process based on the 4I methodology and integrates
the jobs-to-be-done framework and business model patterns.
Beskrivning
Ämne/nyckelord
Energy, District heating, District Cooling, Business model innovation, Business model patterns, Customer-driven innovation, Jobs-to-be-done