Upcoming Services Innovation for the Home Energy Management System in Korea

Hyeog-in Kwon, Ju-ho Kim, Moo-goong Hong and Eui-jin Park
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Hyeog-in Kwon: School of Business Administration, Chung-Ang University, Seoul 06974, Korea
Ju-ho Kim: Department of Arts and Cultural Management, Graduate School, Chung-Ang University, Seoul 06974, Korea
Moo-goong Hong: Policy Finance Team, Policy Division, Korea Creative Content Agency, Jeollanam-do 58326, Korea
Eui-jin Park: Department of Arts and Cultural Management, Graduate School, Chung-Ang University, Seoul 06974, Korea

Sustainability, 2020, vol. 12, issue 18, 1-18

Abstract: Smart grid technology is developed to be commercialized globally, and expected to be utilized at home, named as home energy management system. Despite of its promising marketability, innovative business models are not well-structured and service design methods have limitations on integration for service innovation. Hence, this study employs service-dominant logic to innovate the industry, and introduces the holistic method consisting of service, ecosystem, platform, and strategy. Firstly, it identifies the pain points, and the expected services are arranged using an importance–performance analysis method. Then, the extended ecosystem is defined in three layers perspectives. In addition, the use-case method is used to demonstrate the relationships between the supplier and users on platform. Finally, integrating customers’ needs results in two business models: (i) Home Energy management Model and (ii) Home Care Model. This research not only suggests innovative business models in the home energy market, but also supplements the procedure for designing innovative services and applies it with qualitative and quantitative investigation. To the end, it shed light on the direction and way to actualize future Home Energy Management System (HEMS) market.

Keywords: home energy management system; smart home; service innovation; service-dominant logic; sustainable business model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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