Development in the face of changes – interview with Jerzy Kuś, President of VECTOR SMART DATA (the Energetyka Bimonthly)
We invite you to read the interview with Jerzy Kuś, President of VECTOR SMART DATA, for Energetyka Magazine
You have been operating on the market for a dozen years. As the industry changed, the company has been building its market position. What is the current market share of VECTOR SMART DATA?
In 2006, VECTOR started its first pilot projects in telemetry for heating networks, e.g. at GPEC, a neighbour company from Gdańsk. On the market, it was a period of tests of various telemetry solutions, by the distributors of heat, as well as water, electricity and gas. The distributors of heat used telemetry solutions best, while for other utilities, they remained at the stage of tests and pilot projects. Hence, today the national market saturation with remote heat meter reading systems amounts to a few dozen percent. Compared to other utilities, the heat distribution industry is definitely leading in the use of telemetry systems. For years, VECTOR has been consistently developing technologies and completing implementations in the heating industry. In 2016, the VECTOR SMART DATA company was spun off from VECTOR structures, as a separate brand dedicated in particular to telemetry. We estimate our share of the national market at 70%.
To whom were and are the goods and services of VECTOR SMART DATA offered?
We focus on several industries, mainly the heat distribution industry. Our customers in this area are national leaders, e.g. companies of the Veolia Group, Fortum, PGE and TAURON Ciepło. Our largest implementation so far was completed for Veolia in Warsaw, where approx. 18k devices operate in two systems – SAOC and ISC. At the same time, it should be borne in mind that the heating network of the capital city is in the top four largest networks worldwide! The second area of activity is water consumption telemetry, i.e. readings of billing water meters for water supply companies. In turn, the largest implementation in this field was the project including approx. 17k water meters for MPWiK in Warsaw. We also pursue development works in water sub-metering, i.e. internal settlements in housing communities and cooperatives, and telemetry system implementations for industry. The national heat distribution market is a saturating market, so we are expanding our range for other business areas.
The last 12 months have been a period of particularly intense changes at VECTOR SMART DATA. What activities have been undertaken over the past year?
Primum non nocere – first, do not harm. So, we have not changed what is good in and for our company. The heat distribution market remains our priority and we are strengthening are position on it. However, we decided to change the entire product range of devices for the heating industry. The evolution of radio technologies (i.a. the subsequent GSM generations) and the increasing functional requirements forced this step for future development. Internally, over the past year we have been focusing strongly on research and development. We have significantly expanded the team responsible for R&D activities in our structures. External observers can also see that we invest in the company image. We have a new website, we are active on Linkedin. And for our customers, we hold the “Heating Forum”, a new formula of a series of meetings for experts from the heating industry. They provide an opportunity for free exchange of experience and discussion of the subjects that matter to the heating business.
What is the current situation in the telemetry systems industry? What trends and directions prevail on the market?
In the industry, a lot is being said about the IoT (Internet of Things), which is connected with new LTE technologies, e.g. NBIoT and LteCat.M1. These two technologies are being particularly discussed in the media. The development towards new solutions is forced by the fear of possible deactivation of the 2G service, on which the transmission of data from measuring and monitoring devices is based. Moreover, other radio technologies are developing dynamically, e.g. LoRaWAN and SigFOX, which we will also use in our business. What else should be mentioned? Apart from purely technological issues, in the industry there is also a noticeable trend of introducing telemetry into brand new areas, such as: medical monitoring, car parks, car-sharing, municipal bicycles or even park benches.
Will the demand for VECTOR SMART DATA services grow? How does the company adjust to market needs?
The demand for IoT solutions in telemetry is constantly increasing. New conceptions and ideas for monitoring various devices, places and technological processes are emerging systematically. The demand is also increasing for additional services for heat consumers, which make the offer of the providers for individual customers more attractive. At VECTOR SMART DATA, we are monitoring trends on an ongoing basis. As I mentioned earlier, we are working on a new product base, which will be first used in heating networks telemetry, but then is also applicable to other market areas. We will continue to support our current customers and work on products tailored to their needs.
What is the view of VECTOR SMART DATA on the future of the industry? What are the immediate plans and challenges facing the company?
We can expect the industry to evolve, which we also want to do. We will gradually develop in new market segments, based on the same product base in terms of hardware and software. We will also address alternatives to heat meters and heat cost allocators in settlement methods for buildings with vertically integrated internal heating systems. We may be able to implement such activities in the second half of the year. For me, it is important that the company maintains its identity. So, I will emphasise once more that the thermal energy sector remains our priority. Certainly, VECTOR SMART DATA will continue to be an innovative company, and experts on the heat telemetry market. At the same time, we are planning to build the same position in other areas.