OM 2. tudent question Time to preview question: 00 : 09 : 34 Question: What strategies could FLOWMEC follow to speed the rate of adoption of smart, connected product solutions by utility customers? case: FLOWMEC, is a leading Australian manufacturer of Precision Flow Meters in a range of technologies, including Turbine, Insertion, and Ultrasonic. Recently, they have developed water applications for both residential and commercial use. FLOWMEC’s water applications help utilities charge the right amount to each end-consumer, alert utility companies to system malfunctions, and manage water conservation programs. Established in 1989, FLOWMEC has been in business for more than 30 years and holds a high market share in Australia. Further, the company continually invests 2.5–3.0 percent of annual revenue on R&D to improve measurement accuracy and remote monitoring technology. The domestic water metering industry, however, presents a challenge — utility customers have been slow to adopt smart, connected product technology. To illustrate, while radio meter monitoring technology (which allows utility companies to read meters remotely) has been available for 20 years, only one-third of installed water meters in Australia employ radio monitoring solutions. Utility customers follow the procedure of replacing manualread meters with new technology when the useful life of the old meter is over. The Australia Environmental Protection Agency forecasts that the cost of replacing the aging water infrastructure may well exceed $50 billion. So there is a long growth runway for FLOWMEC

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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OM 2. tudent question Time to preview question: 00 : 09 : 34 Question: What strategies could FLOWMEC follow to speed the rate of adoption of smart, connected product solutions by utility customers? case: FLOWMEC, is a leading Australian manufacturer of Precision Flow Meters in a range of technologies, including Turbine, Insertion, and Ultrasonic. Recently, they have developed water applications for both residential and commercial use. FLOWMEC’s water applications help utilities charge the right amount to each end-consumer, alert utility companies to system malfunctions, and manage water conservation programs. Established in 1989, FLOWMEC has been in business for more than 30 years and holds a high market share in Australia. Further, the company continually invests 2.5–3.0 percent of annual revenue on R&D to improve measurement accuracy and remote monitoring technology. The domestic water metering industry, however, presents a challenge — utility customers have been slow to adopt smart, connected product technology. To illustrate, while radio meter monitoring technology (which allows utility companies to read meters remotely) has been available for 20 years, only one-third of installed water meters in Australia employ radio monitoring solutions. Utility customers follow the procedure of replacing manualread meters with new technology when the useful life of the old meter is over. The Australia Environmental Protection Agency forecasts that the cost of replacing the aging water infrastructure may well exceed $50 billion. So there is a long growth runway for FLOWMEC.

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