Fortum: Helping households save costs by optimizing heating

In the Fortum case, a way was sought to optimize the entire heating system, not only according to the current outdoor temperature but also based on a building’s indoor temperature and humidity.

From an idea to concept and valuable service

The starting point for this project was in June of 2016, as part of Fortum’s accelerator program, which provides a framework to conceptualize, design and test new services in a lean and customer-centric way. The potential of digital services to provide a significant differentiator in competition with other heating methods was identified, and it was noted that, when done correctly, digital services could enable significant customer value that would otherwise be unattainable.

Futurice and Fortum used the Lean Service Creation (LSC) methodology to co-create a successful energy optimization service. The project began with validating the end user problem as one worth solving. After the first concept was defined, it was immediately validated with the end users and then moved forward to build an Minimum Viable Product (MVP), which included both the initial design and development phases of a mobile web application.

The concept was based on project partner company’s Leanheat optimization product. The result is a service that allows each end user to monitor and adjust their building’s climate and send timely, accurate feedback. With this solution, the entire heating system can now be optimized, not only according to the outdoor temperature but also based on a building’s indoor temperature and humidity.

Extension after successs

After very positive feedback Fortum decided to scale the initial service to include not just building residents, but also housing companies that are responsible for apartment management and maintenance. In this second phase, building managers are provided with regular reports that offer an overview of their entire housing company heating profile, including both the current situation and also the historical data.

The service is now available to approximately 15,000 homes in Finland, Poland and Norway. This strong growth is expected to continue, and the service will be expanded by introducing new features such as water consumption monitoring.

This Futurice client solution is significant for a number of reasons. In this project we, together with Fortum and Leanheat, created a service that brings interior climate control closer to end users, while also helping to save on heating costs. Additionally, it both gives residents enhanced transparency and control, and provides Fortum with an additional competitive edge and greener social image.

The service enables value chain optimization from residents and apartments to heat production and choice of fuel supply.

Fortum is a leading clean-energy company providing customers with electricity, heating and cooling, as well as smart solutions for improving resource efficiency. Headquartered in Espoo, Finland, Fortum also provides services for the power generation sector, and solutions for consumers so that allows them to make smarter, more well-informed energy choices.

Fortum employs around 9,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. In 2018, their sales were EUR 5.2 billion and 57% of their electricity generation was CO2 free. Fortum's share is listed on Nasdaq Helsinki.