01. Blueprint: business case
Article January 2021
Business Case developments
To evolve a good idea to a profitable idea it needs a proper business case that delivers insights to the break-even point. It is obvious that building a factory is expensive and any investor wants to know if they will make a good investment. And we want to know how big the demand of our product will be and what requirements customers expect. During the last couple of months we have made great progress to obtain a solid business case for the INDU-ZERO project starting with the Dutch market. We filled out the business model canvas with intended customer segments and the value proposition canvasses in what products and services we need to deliver to fill out our customer needs. Read more
Six customer segments
- Housing corporations
- Scattered properties
- Private owners
- Private investors
- Professional investors
- Association owners
It is important to realize that it is likely that each customer segments has different needs and therefore the value we have to offer them defers. It is possible that for some segments the needs are completely different and for other segments we just need to adjust some details. This is about the second step of the business model canvas, the value propositions:
The customer needs
To get a clear view of the customer needs for each of the mentioned segments we filled out the value proposition canvas.
It starts with the customers jobs, e.g: what do they need, wat problem do they need to solve and what actions do they need to take? From here we can extract the pains (negative emotions) and gains (obtained benefits) they experience to perform the task. This helps us to really understand our customer. It makes it clear what products and services we need to deliver and how these products relieve the experienced pain or even makes our customers happy.
Next step 1. The other participating countries
The value proposition canvassed for the Dutch market are being validated at this moment and the business development team is contacting the other countries to check and validate if the customer segments and customer needs are similar to the Dutch market.
Next step 2. From business model to business plan
The next step is to determine the aspects of the business plan of the factory. This is ongoing work at the moment. Several options are being investigated in terms of risks, return of investment and general feasibility.
Contribution: Marcel Tippe, Buro de Haan, the Netherlands
Article April 2020
Market potential for Dutch housing associations
One third of the total housing stock in the Netherlands is owned by housing associations. Therefore sessions were set up with future minded housing associations in the Netherlands, the so called ‘Coalition of the willing’. With this group we analysed what needs to be done in order for a housing association to sign up to order an amount of renovation packages from a future renovation factory like the INDU-ZERO factory.
In order to be able to build a factory, the market potential needs to be clear. In the Netherlands alone there are 7 Million houses and 1 Million apartments buildings that need to be renovated. Therefore the Dutch government issued a plan called the climate agreement (‘Klimaatakkoord’) to renovate 200.000 houses a year by 2030.
One of the factors for housing associations to decide whether or not to purchase is the price of the renovation. If a business case can state that it is possible to produce a total package and mount it on site for half the current price, there will be less resistance to get a signature from the board for a big amount of renovation orders a year.
The other part is showcasing. The board of directors as well as employees from housing associations working with renovations need to see what net zero renovations look like. The way to do this is by visiting renovated sites and/or show virtual renovations of houses.
Contribution: Ulla-Britt Krämer, project manager, Provincie Overijssel, the Netherlands
Article June 2019
Support for building a factory in Overijssel
In order to create a valid business case for the INDU-ZERO factory in Overijssel, the demand side (order portfolio) needs to be in place. Dutch housing associations can play a big part to create this portfolio. They can bundle the houses which they are responsible of and that are listed to be renovated in the future.
Therefore a first meeting was scheduled the 24th of May 2019, where the Dutch umbrella organisation Aedes was present, as well as representatives of a few housing associations in the Netherlands, in total 14 persons. During the meeting the INDU-ZERO project was presented and discussed.
Margriet Drijver, the figurehead of the Dutch governmental initiative the ‘Renovatieversneller’ (renovation accelerator) was also present at this meeting. The ‘Renovatieversneller’ has the goal to make sure that all means are in place, in order to make sure that all houses in the Netherlands will be energy neutral by 2050. Margriet Drijver was enthusiastic about the INDU-ZERO project, as it forms one of the solutions needed in order to achieve the national ambitions. How the INDU-ZERO project will be embedded in the ‘Renovatieversneller’ will be determined over the next months.
The next meeting with Aedes, some housing associations (‘the coalition of the willing’) and INDU-ZERO is scheduled in September 2019.
Contribution: Ulla-Britt Krämer, project manager INDU-ZERO, Provincie Overijssel, the Netherlands
Article March 2019
Build a factory in Overijssel
As the INDU-ZERO project focusses on the development of the blueprint, this is not the end goal of the ambition. The goal is to build the INDU-ZERO factory in real in order to produce the 15.000 renovation packages per year. To do that the province of Overijssel supports the building of the factory in their province.
In order to achieve this goal, a small team has been formed with the investment company Oost NL, the foundation Pioneering and Zero is More (UK), with the province of Overijssel in the lead. Together they will develop a specific business case for the province of Overijssel in order to build the factory for real. Interested parties in the market (i.e. housing associations, the industry and financial institutions) as well as municipalities will be involved. The ideal situation is that the building of the INDU-ZERO factory will start in 2022.
Contribution: Ulla-Britt Krämer, project manager, Provincie Overijssel (the Netherlands)
To evolve a good idea to a profitable idea it needs a proper business case that delivers insights to the break-even point. It is obvious that building a factory is expensive and any investor wants to know if they will make a good investment. And we want to know how big the demand of our product will be and what requirements customers expect. During the last couple of months we have made great progress to obtain a solid business case for the INDU-ZERO project starting with the Dutch market. We filled out the business model canvas with intended customer segments and the value proposition canvasses in what products and services we need to deliver to fill out our customer needs.