Strategic
Recommendations
Ruby Diaz
Mark Giancarlo
Julia Hornick
Justin Little
Jen Nicosia
Erin O‘Flaherty
Yuki Palermo
Lidia Sandoval
Overview
•History
•Primary Recommendations
•Asset Management
•Initiate Remote Workers
•Distribute through Walgreens
•Increase Overhead Electrician Specialist Staff
•Phone Application
•Smart Grid
•Reduce Phone Wait Time
•Supplemental Recommendations
History
Year
1882
The Western Edison Light Co. was founded, three years after Thomas
Edison developed a practical light bulb
1887
Western Edison Co. became the Edison Co.
1907
Chicago Edison Co. & Common Wealth Electric Light & Power merged to
create the Commonwealth Edison Co.
1920’s
The company used to serve 500,000 customers
1929
Insull, president of the company went bankrupt; however, Commonwealth
Edison survived
1959
The company opened the Dresden nuclear generating plant near Morris,
Illinois
History
Year
1980’s
ComEd became the largest operator of nuclear power facilities in the
United States
1994
The group became part of a parent company named Unicom
1999
After merging with the Philadelphia-based PECO Energy Co, Unicom took
the name of Exelon
Asset Management
Sustainable
Term
Features
Yes
Will prevent
unnecessary
expenses years
after
implementation
1-2 yrs
Use RFID auditing
software to
effectively
manage assets
Annual asset
audit
•A company’s assets are often the biggest
line item on their financial statement
•Technology assets are most commonly
mismanaged
•Laptops
•Monitors
•Printers
•Fax machines
•PDA
Competition
Advantage
Risk
Lower costs
maximize
revenue
Cost cuts keep
prices competitive.
Startup
cost
Less need for
rate hikes
Lower prices
encourage
customer retention
Time
•Asset audits prevents paying
taxes and insurance premiums on
items that are depreciated or no
longer exist
Initiate Remote
Workers
Sustainable
Term
No
Competitors have
the option to
execute this as well
1 -2
yrs
Features
Competition
Advantage
Risk
Employees work from
home
Cut facility costs Keeps prices Decrease in
competitive productivity
Less need for
and
Consolidate work space rate hikes
efficiency
•Allowing employees to work at home
consolidates work space and reduces use of
company resources
•Costs $10,000 - $20,000 per year
to house an employee in a major
metropolitan area
Distribute Products
through Walgreens
Recommendation
Sustainable
Term
Marketing
No
Some competitors
already competing
within market
2-3
yrs
Features
Competition
Establish brand
Long term 3yrs +
Product awareness
Sustainable
Profit generator
40% ROI
•Profit potential
•Gain competitor’s customer through other
outlets
•Build sustainable image
•Green energy company
Advantage
Risk
Brand
recognition
Short term
capital
Responsible
image
Investment
Fund
projects
Retail
competition
New market
•Expected 40% ROI
•Competing in retail market
Phone Application
Sustainable
No, other utility
companies may
develop their
own app in the
future
Term
Features
Competition
Advantage
3
mos
Customer energy
usage report
Only major
utility company
to create a
phone app
Vast amount of
energy data already
compiled
Online store
Tips & tricks
•Minimal maintenance costs
•Cost to develop app could be up to
$150,000
Risk
Limited
customer
base
Technology to be
integrated in the
app already used by
Comed
•Application includes
•Service vehicle tracking
•Tips to reduce energy usage
•Ability to report an outage
•Map of current outages
•Bill payment alerts
Smart Grid
Recommendation
Sustainable
Technologic
Term
SML
Features
Competition
Detailed usage reports Increased line
Automated outage
efficiency
alerts
reduce peak
usage costs
• Real time information will enable greater
reporting for ComEd and consumers will have
enhanced control over usage
•Reporting will help define consumer
spending behavior
Advantage
Risk
Lower
operational
costs and
reduce
consumer
demand
Large
investment
in
infrastructur
e
Reduce
profits in
short run
Reduce Phone Wait
Time
Sustainable
Term
Yes
Better attention
to customers will
give the company
a differentiation
4-6
mos
Features
Call back customers
Help centers
Chat and text with
clients
Competition
Advantage
Better
customer
service
Efficiency
Answer concerns
through e-mail
•Different options for customers to be able to
resolve their concerns quickly and efficiently
•Customize the web page
•Pay bill
•Tips according to the
customer
•Residency
•Business
Risk
Increase
cost for
hiring
more
people
Recommendation Sustainable Term
Capacity
Management
Increase
Overhead
Electrician
Specialist Staff
Possible by
remaining
profitable
Features
Competition
Advantage
Risk
1
yr
Lower
demand
during peak
times
(hot days, 25pm)
Discounts
for low
usage at
peak
Need 60%
usage
decrease at
peak
Reduce
capacity
obligation
Customer
reward – 20%
off bill
Lower
capacity
obligation
year by year
Rewards
customer in
gift cards or
bill discounts
Pass costs
to
consumer
Long
Decreased
wait for
power
restoration
Lower outage
statistics
Available
capital
Increased
salary
costs
Recommendations
Recommendation
Sustainable Term
Features
Competition
Advantage
Risk
“Going Green”
Campaign
1-2
yrs
Lower
energy
costs
Protected
environm
ent
Offer 15% tax
creditable
rebates on
“green”
products
Healthier
homes and
communities
Enhanced
image
Cost of
print,
billboard,
public
service
announce
ments
Website
5
mos
Enhanced
graphics
Practical
applicatio
ns
Maintains
innovative
image
Practical
Customer
retention
$200
monthly
maintena
nce cost
Questions?
Sources Cited
Slide
Picture
Source
Financial
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Marketing
1
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2
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4
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http
5
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0.jpg
1
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2
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3
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1
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2
http://www.google.com/imgres?imgurl=http://3.bp.blogspot.com/_AAdO6ArFjB8/Sju91ElJJkI/AAAAAAAAAOo/Z9fTcWu1BGs
/s400/comed.jpg&imgrefurl=http
1
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Operational
Strategic
Technologic