QUESTION 2 Discuss how the principles of risk avoidance, reduction, and transfer apply to WSS' decision of whether to replace its current meters with smart meters. Consider both the risks associated with the current system and the potential risks of implementing the new system. (25 marks) WSS is a water supply company that has many customers. All customers homes have water meters that have mechanical dials that turn to record the consumption of water. Most homes have their meters indoors. Customers have to provide WSS with regular readings of their meters in order to ensure that they are billed properly for their water consumption. Customers can log into their accounts online to input their reading, or they can telephone WSS' call centre to give an operator a reading. WSS has a policy that customers must allow an inspector to read the water meters at least once per year. This inspection has two purposes. The first is to ensure that the customer has not been consistently understating the figures in order to underpay for their water and the second is to ensure that the meter has not been tampered with in order to reduce the reading according to the dials. The meters are designed so that they are difficult to dismantle without causing obvious damage and they also have a seal that is made out of soft metal that will be broken if the meter is ever opened. WSS' inspectors generally visit all the homes within a particular area in the course of an evening. Most customers are at home then and so that is an efficient way to conduct the annual checks. If a customer is not at home, then the inspector leaves a card to request an opportunity to inspect the meter. If the customer does not respond to the card within seven days WSS will send up to four weekly reminders. Almost all customers comply with these requests, but a very small minority do not respond and WSS can apply to the courts for the right to force entry when that happens. WSS is considering the replacement of its water meters with new "smart meters" which will be located in customers' homes. These will record consumption electronically rather than mechanically. The information will be stored on the meter. The same wires that carry electricity can be used to transmit data to and from the meters and WSS' IT system will send coded messages to meters to request readings as and when required. It is envisaged that these electronic readings will normally be once every three months, but there is very little to prevent WSS from reading some meters far more often. Each meter will be fitted with a chip that will transmit a warning if it is tampered with either physically or electronically. The memory on the meters is not affected by power cuts and the meters can restart themselves without losing any data if a power cut occurs.
QUESTION 2 Discuss how the principles of risk avoidance, reduction, and transfer apply to WSS' decision of whether to replace its current meters with smart meters. Consider both the risks associated with the current system and the potential risks of implementing the new system. (25 marks) WSS is a water supply company that has many customers. All customers homes have water meters that have mechanical dials that turn to record the consumption of water. Most homes have their meters indoors. Customers have to provide WSS with regular readings of their meters in order to ensure that they are billed properly for their water consumption. Customers can log into their accounts online to input their reading, or they can telephone WSS' call centre to give an operator a reading. WSS has a policy that customers must allow an inspector to read the water meters at least once per year. This inspection has two purposes. The first is to ensure that the customer has not been consistently understating the figures in order to underpay for their water and the second is to ensure that the meter has not been tampered with in order to reduce the reading according to the dials. The meters are designed so that they are difficult to dismantle without causing obvious damage and they also have a seal that is made out of soft metal that will be broken if the meter is ever opened. WSS' inspectors generally visit all the homes within a particular area in the course of an evening. Most customers are at home then and so that is an efficient way to conduct the annual checks. If a customer is not at home, then the inspector leaves a card to request an opportunity to inspect the meter. If the customer does not respond to the card within seven days WSS will send up to four weekly reminders. Almost all customers comply with these requests, but a very small minority do not respond and WSS can apply to the courts for the right to force entry when that happens. WSS is considering the replacement of its water meters with new "smart meters" which will be located in customers' homes. These will record consumption electronically rather than mechanically. The information will be stored on the meter. The same wires that carry electricity can be used to transmit data to and from the meters and WSS' IT system will send coded messages to meters to request readings as and when required. It is envisaged that these electronic readings will normally be once every three months, but there is very little to prevent WSS from reading some meters far more often. Each meter will be fitted with a chip that will transmit a warning if it is tampered with either physically or electronically. The memory on the meters is not affected by power cuts and the meters can restart themselves without losing any data if a power cut occurs.
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
Problem 2C
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Transcribed Image Text:QUESTION 2
Discuss how the principles of risk avoidance, reduction, and transfer apply to WSS' decision
of whether to replace its current meters with smart meters. Consider both the risks associated
with the current system and the potential risks of implementing the new system. (25 marks)
Transcribed Image Text:WSS is a water supply company that has many customers. All customers homes have water
meters that have mechanical dials that turn to record the consumption of water. Most
homes have their meters indoors. Customers have to provide WSS with regular readings of
their meters in order to ensure that they are billed properly for their water consumption.
Customers can log into their accounts online to input their reading, or they can telephone
WSS' call centre to give an operator a reading.
WSS has a policy that customers must allow an inspector to read the water meters at least
once per year. This inspection has two purposes. The first is to ensure that the customer has
not been consistently understating the figures in order to underpay for their water and the
second is to ensure that the meter has not been tampered with in order to reduce the reading
according to the dials. The meters are designed so that they are difficult to dismantle
without causing obvious damage and they also have a seal that is made out of soft metal
that will be broken if the meter is ever opened.
WSS' inspectors generally visit all the homes within a particular area in the course of an
evening. Most customers are at home then and so that is an efficient way to conduct the
annual checks. If a customer is not at home, then the inspector leaves a card to request an
opportunity to inspect the meter. If the customer does not respond to the card within seven
days WSS will send up to four weekly reminders. Almost all customers comply with these
requests, but a very small minority do not respond and WSS can apply to the courts for the
right to force entry when that happens.
WSS is considering the replacement of its water meters with new "smart meters" which
will be located in customers' homes. These will record consumption electronically rather
than mechanically. The information will be stored on the meter. The same wires that carry
electricity can be used to transmit data to and from the meters and WSS' IT system will
send coded messages to meters to request readings as and when required. It is envisaged
that these electronic readings will normally be once every three months, but there is very
little to prevent WSS from reading some meters far more often.
Each meter will be fitted with a chip that will transmit a warning if it is tampered with
either physically or electronically. The memory on the meters is not affected by power cuts
and the meters can restart themselves without losing any data if a power cut occurs.
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