• Current technology solutions in the energy saving area.
• How to make changes happen? The key drivers in the change management.
• What factors might stop in the process of Eco-Res project.
• Different types of changes and how to achieve them.
• The main risks might exist in Eco-Res project.
• Some strategy recommendations and other related information.
Overview of technology roadmap for the next 5 years
Currently, the energy usage in University mainly depend on the traditional energy source. For next 5 years, these goals should be achieved:
• Reduce energy consumption by students and staff living on campus by 30% over the next five years.
• Make additional savings greater than investment to develop further environmental activities over time.
1. Technology solution indicating leader or technology follower
Eco-Res is an independent project designed to reach the goal of energy saving in student accommodation sectors. Technology solutions applied in Eco-Res project should enable students and staff who reside on campus to monitor and reduce their residential usage. In order to achieve the target of energy saving, some renewable energy technology should be used in Eco-Res project. Considerable technology solutions are listed below.
Solar photovoltaic technology converts solar radiation into electricity, and in this way, solar photovoltaic system can produce energy for daily life usage. Solar thermal technology mainly collect the heat from the Sun by solar collectors, and transfer heat by hot water. Solar power is a kind of green energy which can be installed easily and widely in student accommodation.
Wind power can be utilized by wind turbine. A wind turbine plays a role of converting wind energy into mechanical energy. Different type of wind turbine can be used according to different circumstances.
Another technology solution is LED installation. By installing LED lights, a large amount of energy bills can be saved. Cycle by cycle laundry equipment could also be considered as a technology solution.
Biomass is another technology solution can be considered. Biomass can either be used directed or convert into other energy forms. Garbage, wood, waste, landfill gases and alcohol fuels are the main resources of biomass.
1. Type of change management required – key drivers
This section will summarize the most important drivers of change management. In Eco-Res project, the main change management drivers lie in strategic change, technology change, change forces and human resource.
Figure Nature of change (Balogun and Hope Hailey,1999)
This picture shows the type of change model. From the aspect of Eco-Res project, the main drivers of this technology change are increasing desire of energy (Incremental) and low energy efficiency (Transformation), therefore, Eco-Res project is an evolution.
Staffordshire University, adapted from Balogun and Hope Hailey,1999, Exploring Strategic Change, Prentice Hall.
Source: adapted from Johnson & Scholes, 1999, Exploring Corporate Strategy, p.511
From the change style model produced by Johnson & Scholes (1999), the Eco-Res needs transformational change, therefore, the direction style strategic should be applied to the project. The key driver to this change management is the “use of authority to set direction and means of change”.
Morgen Witzel (2003). Fifty key figures in management. Routledge, 2003. ISBN 0-415-36977-0p.96.
In technology change, it will be very necessary to respond to change according to Mousetrap Theory. According to the functional theory of Henri Fayol (Morgen Witzel, 2003), in technology change management, there were planning, organizing, commanding, co-ordinating and controlling. In technology management today, there should also have forecasting. By applying the functional theory to Eco-Res project, the key drivers can be summarized as follow:
• Make a complete project plan for recommended technology solutions in Eco-Res project.
• Appropriate organization of Eco-Res project.
• Make a Gantt chart of Eco-Res project to command it.
• Arrange different specialized people on different role in Eco-Res project.
• By setting up milestones in the project plan to control the process.
• Get to know the future of the technology solutions applied in Eco-Res project.
1958 – J. March & H Simon organisations (New York, John Wiles & Sons, 1958)
From the respect of internal pressures, Eco-Res project need to fulfil the requirements of energy saving raised up by stakeholders. From the respect of external pressures, more and more benefits of renewable energy appeared recent years. For example, government supports and marketing benefits. Market pull and technology push like renewable technology becoming more important in energy market and more and more renewable energy can be realized in daily life are the promotion elements of Eco-Res project.
From the perspective of human resource in managing change, different role plays different part in the change management. First of all, as the change agent in Eco-Res project, this entity should made a long-term strategic plan for this project. As the strategic leadership in Eco-Res project, this role should ensure every process of the project going well to achieve the goal of energy saving. As middle managers, these people contribute to Eco-Res project as gate players. The middle managers should convey the view from the top manager and reflect the feedbacks from the lower managers, and they also control the implementation of Eco-Res project.
3. Resistance to change
Common reasons for resistance
For students themselves, Eco-Res project do not provide direct benefits.
Do not trust Eco-Res project can achieve the goal of energy saving. On the other hand, students may think too much time and money will be spent on this project.
Through the period of Eco-Res project, the reward of work may change, but because of the contract, the remuneration will not change, therefore, staff involved in this project may not satisfied with this.
New technology may exist some risks during installation and usage.
The target of Eco-Res project may not be expressed clearly.
Students and staff live on campus may like to stick to traditional habit, and refuse to involve in Eco-Res project.
People from different cultural background may have different view of energy saving.
Not all students and staff concern about environmental problem.
Forcefield Analysis (Lewin, 1951)
Hierarchical and flattened relationship as an existing structure may make things more difficult in new technology management.
Specific power bases are necessary like budget controls, autocratic or not and stakeholder mapping.
Different ways of dealing with different technology management.
Technology roadmap including mission, vision, forecast, firefighting, reactive, resources and rewards made specifically for Eco-Res project is necessary.
Staff involved in Eco-Res project should be trained before the start point.
Human resources and material resources should be considered properly.
Too much or too little incentives will be the resistance element in Eco-Res project. Proper incentives can inspire staff work harder.
There were some energy saving project before Eco-Res project, and there also exists some traditional solutions may affect the innovation in Eco-Res project.
Cultural Web (Johnson et al, 2005)
Lewin K. (1951) 'Field Theory in Social Science', Harper and Row, New York.
4. Hard and/or Soft system changes
In hard system changes, there are different technology solutions and installation of the renewable energy equipment.
In soft system changes, the main point is cultural change of the organization. From the culture web of organization (Johnson et al, 2005)
Johnson, G., Scholes, K. and Whittington, R. (2005) ‘Exploring Corporate Strategy’, Prentice-Hall,Harlow.
5. Major risks or downsides for the initiative
Wrong estimation of the process duration
Keep working on the wrong estimation process and get another independent process begin at the same time.
Underproduction of the energy saving project’s task
Increase duration of the task and rearrange the project process arrangement.
Cost overspend (variable components prices)
Look for other investors and build cooperation, or negotiate more investment from existed investors.
Decrease of government subsidization
Increase the efficient of the energy saving project to save cost.
Equipment failure in usage
Establish maintenance team and fix the equipment immediately.
Variables of weather
Backup the electricity usage by using existing grid to power up.
Failure of installation of facilities
Market strategy for Eco-Res solution
This report proposed a market strategy to promote and encourage use of the Eco-Res solution by University students living on campus.
1. Market research
The purposes of Eco-Res project market research are identified as:
• Get to know the attitudes of students and staff on campus towards Eco-Res project.
• Determine promising students and target markets (on campus) for Eco-Res project.
• Help make market segmentation by doing a survey about how students behave to achieve energy saving.
• Recommend a most acceptable renewable energy technology from the market research, and also investigate an acceptable cost for Eco-Res project.
Both Internet-based and mail-based surveys were implemented to assess the awareness and attitudes of students and staff on campus towards emerging renewable technologies. And the methodology of the Eco-Res market research is:
• Aim at students and staff live on campus.
• Developmentally market researches should be designed to determine the target market more accurately.
The overall key findings of the present market researches are:
• Most students and staff who participated in the market researches are quite concerned with energy saving, and they think more improvement of energy saving should be made in the University of York.
• Solar PV is the most acceptable technology in energy saving area.
• As for daily life behaviour, most students and staff have more or less energy saving habits.
The gaps of present market researches are:
• The most questions in the questionnaires are about the general awareness of energy saving, further investment about Eco-Res project should be done.
• Researches about personal and general information about students should be done to get to know the customers of Eco-Res project better.
1. Motivation theory
To make students and staff living on campus get involved in Eco-Res project, some motivation theories should be applied to increase the amount of participation.
Maslow – Hierarchy of Needs
A combination of Maslow-Hierarchy of Needs model and Self-Efficacy theory could be applied to Eco-Res project, specifically, the esteem and actualization part could be combined with the Self-Efficacy theory. Eco-Res project fulfil the requirement of energy, therefore, the physical stage has been achieved. The energy usage in daily life can be guaranteed in Eco-Res project. Safety as a basic requirement in energy usage can also be a fundamental assurance. In the aspect of Love/Belonging, an association of Eco-Res project can be established to make students aware of their contribution to school energy saving. By involving in this visible association, a feeling of belonging is growing, and Eco-Res project will not just a school project.
The combination part is the most import part in motivating students and staff. In order to let students feel respected, every student involved in Eco-Res project should be connected by email and text, and special services for membership should be established. Different school events like renewable energy introduction and practice of installing renewable energy equipment should be held. By these kind experiences, students on campus will get the meaning of Eco-Res project. Elective courses can be set up to coach students in behaviours of energy saving in daily life and also introduce the value of Eco-Res project. At the same time, speeches about energy saving or some green topic speech competition can be held in order to increase the concern of energy saving between students.
Bandura – Self-Efficacy Theory
Ajzen – Theory of Planned Behaviour (Ajzen, 1985)
From the model of Planed Behaviour theory, it can be proven that a complete plan of Eco-Res project is very important. By providing a specific progress to students on campus, the feeling of everything is under control can be established.
c. Market segmentation
Marketing is the heart of a successful technology project like Eco-Res project. In order to convey the information efficiently and effectively, a considerable way is based on marketing segmentation. Market segmentation is defined as “dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes” (Armstrong. G. and Kotler. P. 2005). There are many different ways to divide market, and the Determinants of Consumer Behaviour model (Kotler and Armstrong, 2008) could be referenced for market segmentation.
From the perspective of behavioural segmentation, a survey about Eco-Res project produced by Rachel Bate showed that most students and staff on campus have the habit of saving energy. The Defra research (James Murray, 2008) could be a reference for Eco-Res project marketing segmentation, and the Defra research produced a great method of dividing behavioural segmentation. However, different level of concern lead to different frequency of behaviour. The types of consumer behaviour (Doyle and Stern, 2006) showed the theory support of behavioural segmentation. Therefore, the target group in behavioural segmentation first comes to students and staff who have very good energy saving habits. Students and staff who are not concerned about energy saving could be the emphasis of promotion.
Types of Consumer Behavior (Doyle and Stern, 2006)
Students and staff from different economic circumstances could also be a way of segmentation. People from low-income household may value more about energy saving, since Eco-Res project could bring a great saving of energy bills. However, in Eco-Res project, there may exist cost to get involved in this project. Students and staff from higher income family also have a tendency to join Eco-Res project considering the cost and benefit from this project. Therefore, an appropriate cost for Eco-Res project and an announcement of the money could be saved from this project are required.
In the aspect of demographic segmentation, students and staff may have different view of Eco-Res project because of different age, occupations and educational levels. A market research from group 6 showed that people who have higher educational levels concern more about energy saving. A deeper market research should be made to show how age and occupations affect people’s tendency to take part in Eco-Res project. This research could also include survey about students from different countries and different colleges. In this way, the demographic segmentation could combine with geographic segmentation. For example, if the market research shows that both postgraduate students and students from other countries concern a lot about energy saving, then the Wentworth College could become a target market.
d. The marketing mix
The 4 Ps Marketing Mix (McCarthy, 1960) comprises: Product, Price, Place, and Promotion. The classic elements offer a useful matrix to assess Eco-Res project. Eco-Res initiatives should address each of the 4Ps. While Eco-Res project do not control the technology and installation, the success of this project is only linked to the success of getting students and staff involving into this project. The most important goal of this marketing strategy is building a strong customer base for renewable energy technology usage in their dormitories. The 4Ps of Eco-Res project are defined as below.
For marketing purposes, Eco-Res project can evaluate the product from the perspective of consumers’ rational and emotional attitudes towards energy saving. These attitudes affect the desire to get involved in this project. The brand name is Eco-Res, and the value of this project is to save energy and develop more environmental friendly projects. In Ansoff Matrix model, Eco-Res project in the University of York belongs to product development. In product development, Eco-Res project should develop plans to fulfil the target market segments. In order to build a sustaining
Picture Ansoff Matrix (Ansoff, 1957)
brand for Eco-Res project, the value of energy saving in this project should be showed to appeal the target students and staff who are interested in energy saving in the behavioural segmentation. In order to express Eco-Res project better, a logo was designed as follow.
Price is one of the biggest barriers to growing the energy saving marketing, and Eco-Res project should be addressed to help overcome customer price concerns. Eco-Res project has a merit of saving the energy bills for students and school, which could make accommodation fee per week cheaper compared with non-Eco-Res buildings. Different prices should be developed to appeal to students and staff in different economic circumstances. For example, customers can choose the LED installation plan only or both LED installation plan and solar PV installation plan. Different choices come with different prices, and a list of cost and maintenance fee should be produced.
Place should be considered through the building of a strong supplier network. This supplier network should ensure students can easily find different part of Eco-Res project. In other words, this project should be visible. In place strategy, Eco-Res project can use website, referral systems and fixed places in target colleges. An Eco-Res project website should be established to help students and staff on campus know the Eco-Res solution better. A general introduction about Eco-Res, the benefits of Eco-Res and the way to get involved in Eco-Res should be showed on the website.
Another way of place strategy is by email. In target colleges which showed large interest in Eco-Res project from market research, messages about Eco-Res should be emailed to the students and staff in these colleges. Referral and information desks should also be set in these targeted colleges.
Promotion behaviour of Eco-Res project should be presented to ensure the right messages are conveyed. Exhibitions about Eco-Res project can be held in these targeted colleges, and at the same time, direct advertising by post or door-drop could be down. Social media (like Twitter and Facebook etc.) promotion between students and staff is also necessary. On school journals in University of York, the accurate target and value of Eco-Res project should be introduced.