Business Model Deconstruction: An Analysis of Power Ledger (BUS100)

This report provides a comprehensive analysis of Power Ledger's business model, a company focused on peer-to-peer trading of renewable energy. The analysis utilizes the Business Model Canvas framework, examining key aspects such as customer segments (individuals seeking affordable clean energy and those selling excess energy), value propositions (trading platform using blockchain technology), key activities, channels, revenue streams (small fees per kWh), cost structure, key resources (trading platform and AI/ML), customer relationships, and key partners. The report also explores the interrelationships between these building blocks, critical success factors (trading energy, renewable energy, and platform stability), potential downside risks (platform crashes), and recommended business model changes. The conclusion highlights Power Ledger's role in providing a trading platform for renewable energy, and the recommendations suggest leveraging digital marketing strategies for increased global awareness. The report references several sources to support its findings and provides a detailed overview of the company's operations and strategic approach to the energy market.

BUSINESS MODEL CANVAS – POWER LEDGE
STUDENT DETAILS
STUDENT DETAIL

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Executive Summary
This report will incorporate discussion about nine building block model of the
selected company. “Power Ledger” is the selected company for this report. The company
provides trading platform to its user for trading on renewable energy. The two critical factors
for the success of the company are: providing trading platform and ensuring that the platform
do not crash even after high volume traffic.
Content

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s
I. Introduction........................................................................................................................2
II. Business Model..................................................................................................................2
A. Building blocks............................................................................................................3
1. Customer segments..................................................................................................3
2. Key partners.............................................................................................................3
3. Value proposition.....................................................................................................3
4. Key activities...........................................................................................................4
5. Channels...................................................................................................................4
6. Revenue streams......................................................................................................4
7. Cost structure...........................................................................................................4
8. Key resources...........................................................................................................4
9. Customer relationships............................................................................................5
B. Interrelationships.........................................................................................................5
C. Critical success factor..................................................................................................5
D. Downside risks............................................................................................................6
E. Business model changes..............................................................................................6
III. Conclusion.......................................................................................................................7
IV. Recommendations...........................................................................................................7
References..................................................................................................................................7

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I. Introduction
Power Ledger (POWR) is an Australian based company. The company was founded
on 11th August, 2016 by Chairman. Jemma Green and Managing Direction. Dave Martin.
The company provides affordable and clean electricity and they are powered by Ethereum
network. They are engaged in the business of distribution of electricity so that people can
afford it and utilize clean energy in the better way (Zheng, Xie, Dai, Chen & Wang,
2018). Power Ledge is a platform where businesses and consumers trade energy on peer-
to-peer basis. In the platform of Power Ledge, people or business can trade energy such
as wind and solar energy that can be produced by an individual. In 2017, during the
period of pre-sale offer over 100 million POWR tokens were sold in just 3 days. At that
time, the company raises the fund of $17million AUD (Zoominfo.com, 2020).
II. Business Model
The business model of the company creates a platform for getting affordable and
clean energy. It allows an individual and a business house to trade energy. This
platform allows the business owners to decide that to whom they want to sell their
surplus energy and at what price. This platform incorporates blockchain technology.
In January 2020, Power Ledger purchased a 250-kilowatt photovoltaic system that
works on the blockchain based data management and settlement system (Sessa, 2018).
Apart from this, now management moving forward towards the utilization of
Artificial Intelligence and Machine Learning in their process to make their operations
more effective and efficient. Currently, the interface of the company with the
ecosystem is protected through Smart Bond technology (Martínez & Kim, 2019).

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A. Building blocks
In this section, nine building blocks approach will be explained from the perspective
of Power Ledger. Below building blocks approach will include discussion about
customer segment, their targeted audience, key partners, etc (Sikorski, Haughton &
Kraft, 2017).
1. Customer segments
Sex Any gender can opt trade on the platform
Targeted audience They have two categories of targeted
audience:
1. People who want affordable and
clean energy.
2. People who wants to sell excessive
energy (Martínez & Kim, 2019).
Specific trading Work on sharing energy (Sikorski,
Haughton & Kraft, 2017).
Age A person should cross the legal age limit to
have their own account on the trading
platform (Nofer, Gomber, Hinz &
Schiereck, 2017).
2. Key partners
They have trading partnership with several countries such as Thailand, Japan, India, Australia
and Austria. In these countries, they have tie ups with the companies who operates in the field
of energy (Gemayel & Preda, 2018).

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3. Value proposition
i. It launches the platform for trading energy.
ii. It allows users to buy or sell excessive energy.
iii. It takes use of block chain technology (Andoni, et. al., 2019).
4. Key activities
Power Ledger accomplices with Sharing Energy and eRex for P2P preliminary to fortify a
dependable energy exchanging programming/ Power Ledger has cooperated with various
supplier for sharing energy and power retailer eRex to preliminary distributed (P2P) solar-
based vitality exchanging. Utilizing Power Ledger's innovation, families with solar-oriented
boards will have the option to sell any abundance solar light-based vitality they have created
at a more serious cost than if they somehow happened to sell the vitality back to the network
(Crunchbase.com, 2020).
5. Channels
They support the online platform to trade energy in the effective and efficient way.
6. Revenue streams
The company charges a small fee per kilowatt hour (kWh). High volume of users trades
under the platform which brings immense profit to the company (Crunchbase.com, 2020).
7. Cost structure
There are various points which are included in the cost structure of the company such as
cost of the location, technological cost, remuneration of the staff, maintenance cost of the
system, etc (Gemayel & Preda, 2018).

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8. Key resources
Key resources of the company incorporate the latest trading platform to its users. Apart
from this, currently the company is focusing towards the utilization of Artificial
Intelligence and Machine Learning (Sessa, 2018).
9. Customer relationships
The company adopts various methods to enhance their customer experience. The
experience of the customer enhances when trading platform works in the systematic way.
Thus, the company make sure their trading platform operates smoothly and do not crashes
while intervention of high traffic (Martínez & Kim, 2019).
B. Interrelationships
The company incorporate blockchain based P2P power trading platform. They process of the
company do not decentralize the process because decentralizing the trading platform will take
away user’s rights which will hamper customer service experience. Although, the company
has a goal of decentralizing the renewable energy markets so that buyers and sellers can come
together to trade the energy in the effective and efficient ways. Power Ledger needs to make
it feasible for the end client to purchase sustainable power source, just as selling their own
unused sustainable power source, by utilizing the Ethereum blockchain to record vitality
utilization, use, and creation. The move to sustainable power sources, for example, solar
powered by industry, business, and private clients it appears to be good judgment to have a
framework set up that permits these new sustainable power source frameworks to sell their
abundance power once more into the matrix as opposed to just releasing it to squander
(Martínez & Kim, 2019).

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C. Critical success factor
The idea of trading energy is the critical success factor for the company. Apart from this,
another additional success factor of the company is adding renewable energy for trading.
Through the platform of the company, people can trade excessive available energy. Complete
privacy is made of buyer and seller’s personal details but audience can view that how much
volume is currently trading on the platform. The company is moving towards the
incorporation of AI and ML in their process. It can be analysed that after the intervention of
AI and ML, other success factor will be added in the company. However, incorporating AI
will incur major cost in the short run but it can be expected that in long term the company
will get immense benefits. AI will also enhance the experience of the traders in the effective
and efficient way. However, it is also analysed that fast working on the platform also
enhances user experience in the effective way. The best thing about the trading platform of
the company is that the trading platform do not crashed even due to high traffic volume
(Zoominfo.com, 2020).
D. Downside risks
The associated downside risk with the platform is that the application should be able to
handle high volume trades and it should not crash due to intervention of users. For example:
when high volume user traffic is seen on the platform then according to the technical team
there are slightly high chances that application can be crashed. This is the major associated
risk. However, no circumstances are noticed yet in which trading platform of the company
crashed. Still, the management should always empower their backend technical staff to take
appropriate actions to minimize the chances of the downside risks (Sessa, 2018).
E. Business model changes
The business model of the company is based on offering a platform over which users can
trade renewable energy. The purpose of the company is to offer clean and affordable

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energy to its users. For offering such services Power Ledger charges a minimal fee on
each transaction. The company incorporate the use of block chain technology and other
key resources to conduct the programs in the effective manner. Moreover, clients of the
company are satisfied with the layout and interference of the trading platform. Clients
also stated that they do not faced any platform crashes even due to high traffic
intervention (Crunchbase.com, 2020).
III. Conclusion
It is concluded that the company provides trading platform to its user for trading in
renewable energy in the effective and efficient way. Apart from this, it is also concluded
that the company is moving towards the incorporation of AI and ML in their process.
IV. Recommendations
It is recommended that the company should take use of various digital marketing
strategies to create awareness among the audience at the global level. Incorporating
digital marketing strategy is the best way to fascinate large number of people.

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References
Andoni, M., Robu, V., Flynn, D., Abram, S., Geach, D., Jenkins, D. & Peacock, A. (2019).
Blockchain technology in the energy sector: A systematic review of challenges and
opportunities. Renewable and Sustainable Energy Reviews, 100, 143-174.
Crunchbase.com. (2020). Power Ledger. Retrieved from:
https://www.crunchbase.com/organization/power-ledger#section-overview
Gemayel, R., & Preda, A. (2018). Does a scopic regime erode the disposition effect?
Evidence from a social trading platform. Journal of Economic Behavior &
Organization, 154, 175-190.
Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business &
Information Systems Engineering, 59(3), 183-187.
Sessa, J. (2018). What is Power Ledger (POWR)? The complete guide. Retrieved from:
https://coincentral.com/power-ledger-beginner-guide/
Sikorski, J. J., Haughton, J., & Kraft, M. (2017). Blockchain technology in the chemical
industry: Machine-to-machine electricity market. Applied Energy, 195(1), 234-246.
Martínez, J. M., & Kim, Y. C. (2019). Design and Implementation of a Blockchain-Based
Energy Trading Platform for Electric Vehicles in Smart Campus Parking
Lots. Energies, 12(24), 4814.
Zheng, Z., Xie, S., Dai, H. N., Chen, X., & Wang, H. (2018). Blockchain challenges and
opportunities: A survey. International Journal of Web and Grid Services, 14(4),
352-375.

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Zoominfo.com. (2020). Power Ledger Pty Ltd. Retrieved from:
https://www.zoominfo.com/c/power-ledger-pty-ltd/419420814