Rising energy prices, higher regulatory pressure, and the increasing importance of ESG regulations are driving industrial manufacturers to seek tools that not only measure consumption but also help convert this data into actionable savings. AX Energy Insights does exactly that. Although other energy-management solutions already exist, our research shows that customer needs are still underserved as existing solutions lack piece-level energy transparency and connection capabilities. Therefore, a business model has been created to close those gaps and unlock additional value for customers, positioning AX Energy Insights as the best solution for industrial energy efficiency.

Goal

The project’s goal is to design a customer-centric business model that directly addresses unmet market needs and fulfils regulatory requirements. This goal is incorporated into a value proposition that focuses on AX Energy Insights’ distinct competitive advantage. Additionally, identifying and assessing viable pricing mechanisms to monetise the product while aligning with customer needs is essential. 

Methodology

The project combined quantitative and qualitative techniques in six structured phases. The project starts with a market analysis to identify key drivers and barriers, estimate market size, and assess growth potential. Next, a competitor analysis with a weighted scoring matrix helps to identify the most relevant existing solutions. A regulatory analysis then clarifies the necessary requirements. Building on those insights, a capability analysis is conducted where threshold and distinctive strengths are identified. To validate the outcomes, two expert interviews were conducted. Finally, the findings enabled the development of a pricing model, a suitable business model, and additional feature recommendations.

Results

The analysis showed that EMS is a high-growth market and that critical customer needs are still not fully met by existing solutions, presenting a significant opportunity for Festo. Leveraging highly relevant features—such as easy integration with existing infrastructure, user-friendliness through multiple user roles, and a self-learning programme with courses—helps overcome customer barriers and create additional value compared to existing solutions. In combination with a performance-based pricing model, incentives are aligned, and AX Energy Insights is differentiated from subscription-heavy incumbents. In total, six strategic recommendations were developed, and two different value propositions were delivered.

Cooperation Partner

• Festo SE & Co. KG
  Ruiter Straße 82
  73734 Esslingen am Neckar
  Deutschland
  www.festo.com/de/de/
  
   

Contact Person

• Jacob Decker - jacob.decker@festo.com

Student Team

• Kateryna Kashurina
  Benedikt Pumberger
  Sophia Pumberger
  Lukas Rauchenzauner
  Benjamin Franz Windisch
   

Project Manager

• Caroline Fabian, M.Sc., M.Sc.

• Sandra Jeske, M.Sc.