Evergy, Inc. (EVRG): Business Model Canvas

Introduction

The electric utility industry has been growing rapidly, driven by factors such as population growth, urbanization, and the increasing adoption of electric vehicles. According to a report by Grand View Research, the global electric utility market size was valued at $2.4 trillion in 2020 and is expected to reach $4.3 trillion by 2028, growing at a CAGR of 7.8% from 2021 to 2028.

Amidst this backdrop, Evergy, Inc. has emerged as a key player in the industry, operating in Kansas and Missouri. The company's focus on reliable, affordable, and sustainable energy has helped it carve a niche in a competitive market. In this blog post, we'll dive deeper into Evergy's business model canvas and explore how the company has been able to provide value to its customers while maintaining financial viability.

• Discuss about the company's key activities and customer segments
• Explore the value proposition and revenue streams of the company
• Analyze the company's key partners and resources
• Evaluate the cost structure and key metrics

Join us as we take a closer look at Evergy, Inc. and gain insights into what drives success in the dynamic electric utility industry.

Key Partnerships:

Evergy, Inc. (EVRG) understands that developing strategic partnerships is essential for creating sustainable growth and delivering value to its customers. The following are some of the key partnerships that EVRG has established:

• Regulatory Agencies: EVRG works in close collaboration with regulatory agencies to ensure that it operates within the framework of the law. Through these partnerships, EVRG is able to comply with regulations, tariffs, and other requirements put in place to protect the interests of the public.
• Technology Vendors: EVRG partners with technology vendors to provide innovative solutions and improve efficiency in its operations. Through these partnerships, EVRG is able to leverage the latest technologies in energy generation, transmission, and distribution.
• Energy Suppliers: EVRG partners with various energy suppliers to ensure a reliable and diverse energy mix for its customers. These partnerships help EVRG to secure cost-effective energy supplies.
• Community Organizations: EVRG partners with community organizations to provide support and assistance to the communities it serves. Through these partnerships, EVRG is able to create mutual benefits that strengthen the relationship between the company and the community.

Through these key partnerships, EVRG is able to provide high-quality services and products that create value for its customers and stakeholders. By maintaining strong relationships with these key partners, EVRG is able to ensure that it achieves its goals and objectives.

Key Activities

Evergy, Inc. (EVRG) is engaged in the generation, transmission, and distribution of electricity to its customers. The company operates in a highly regulated industry, and therefore, its key activities revolve around ensuring compliance with regulations, maintaining infrastructure, and providing reliable and affordable energy to its customers. The following are the key activities for Evergy:

• Electricity Generation: Evergy generates electricity from various sources such as coal, natural gas, nuclear, and wind. The company ensures that its power plants meet regulatory standards and operate efficiently to maximize output.
• Transmission and Distribution: Evergy has an extensive network of transmission and distribution lines that transport electricity from power plants to customers. The company's key activities include maintaining and upgrading these lines to ensure reliable delivery of energy.
• Customer Service: Evergy's key activity is to provide excellent customer service to its customers. This includes managing customer accounts, responding to inquiries, managing outages, and providing energy efficiency programs.
• Regulatory Compliance: As a heavily regulated industry, Evergy's key activity is to comply with regulations set by various entities such as the Federal Energy Regulatory Commission, Environmental Protection Agency, and state regulatory commissions. The company ensures that its operations meet these standards to avoid penalties and maintain its license to operate.
• Innovation: Evergy continuously looks for ways to improve its business model and reduce its carbon footprint. The company's key activity is to invest in innovation and research and development to develop new technologies and ways to generate and distribute electricity more sustainably.
• Financial Management: Evergy's key activity is to manage its finances effectively to ensure continued growth and profitability. The company monitors its expenses, revenue, and investments to make strategic decisions that benefit its shareholders and customers.

These key activities are vital to Evergy's success in the energy industry. By focusing on these areas, the company can deliver reliable and affordable energy to its customers while ensuring compliance with regulatory standards and driving innovation in the industry.

Key Resources:

Evergy, Inc. (EVRG) is an electricity generation and distribution company that requires a wide range of resources to operate effectively. The key resources for EVRG can be divided into three main categories:

• Physical Resources: EVRG requires a range of physical resources to generate, distribute and deliver electricity services. These physical resources include power plants, transmission and distribution infrastructure, control centers, and customer service centers. In addition, EVRG needs to maintain an inventory of spare parts, transformers, and other equipment necessary to maintain a continuous supply of electricity.
• Human Resources: EVRG heavily relies on skilled and knowledgeable employees to operate and manage different aspects of the company. This includes engineers, technicians, project managers, customer service representatives, and executives. EVRG invests in human resources development programs to enhance the skills and proficiency of its workforce. This ensures smooth operations and reliable electricity supply to its customers.
• Intellectual Resources: EVRG relies on intellectual property rights to protect its innovations and patents in the energy industry. These include renewable energy technologies, smart grid solutions, and energy efficiency technologies. EVRG collaborates with various stakeholders to create a network of research and development activities to generate new intellectual resources for sustainable energy.

EVRG also relies on its financial resources to maintain its operations and invest in long-term growth strategies. Efficient allocation of resources is critical in providing reliable electricity services, managing assets and infrastructure and meeting the needs of its customers effectively.

Value Propositions

Evergy, Inc. (EVRG) strives to provide an efficient and sustainable energy solution to its customers while minimizing environmental impact. The following are the key value propositions offered by EVRG:

• Clean Energy: EVRG offers its customers clean and renewable energy solutions, thus reducing their carbon footprint and promoting sustainability.
• Reliability: EVRG ensures the reliability of its energy solutions to its customers by employing state-of-the-art infrastructure and advanced technologies that guarantee stable and consistent performance.
• Cost-Effective: EVRG's energy solutions are cost-effective, enabling customers to save money while enjoying efficient and sustainable power supply solutions.
• Customer Service: EVRG places customer satisfaction at the heart of its business model, providing exceptional customer service that addresses customers' queries, complaints, and concerns and ensuring their satisfaction with the company's services.
• Expertise: EVRG boasts a team of skilled and experienced professionals whose expertise ensures that the company remains at the forefront of innovative and sustainable energy solutions.
• Technology: EVRG leverages technology and innovation to develop efficient and sustainable energy solutions that meet the needs of its customers and promote environmentally-conscious initiatives.

Overall, Evergy, Inc.'s value propositions are aligned with the company's vision to foster a sustainable future by providing efficient, reliable, and sustainable energy solutions to all customers.

Customer Relationships

At Evergy, Inc. (EVRG), we understand that customer satisfaction is paramount to the success of our business. Therefore, we have designed our customer relationships to cater to the diverse needs of our customers.

• Personalized service: We engage with our customers in-person, online, and on the phone to provide personalized solutions that meet their specific needs.
• Digital channels: We have established an online portal where our customers can access information related to their accounts, pay their bills, and report any service outages at their convenience. Additionally, we have a strong social media presence to enable us to communicate with our customers on various platforms.
• Ongoing support: We provide ongoing support to our customers through multiple channels. Our customer service representatives are available 24/7 to address any questions or concerns our customers might have. We also provide regular updates on planned outages and other service-related information to keep our customers informed.
• Community engagement: We are committed to our local communities, and we engage with them regularly to understand their needs and concerns. We also support community development initiatives that help improve the quality of life in our service areas.
• Customer feedback: We value customer feedback and actively seek it out to help us improve our services continuously. We conduct surveys, focus groups, and other forms of feedback to hear from our customers directly.

By cultivating strong customer relationships, we aim to build a loyal customer base that values the services we provide and recommends us to others.

Channels

Evergy, Inc. (EVRG) will utilize a multi-channel approach to reach and serve its customers. The company will employ both digital and traditional channels to ensure that it reaches a wide range of customers effectively. Online Channels

• Website: EVRG's website will provide customers with information about the company's services, solutions, and pricing. Customers can also access their accounts, manage their services, and request support through the website.
• Social Media: EVRG will use various social media platforms to connect with customers, share news and updates, and address customer concerns.
• Mobile App: A mobile app will offer customer's a convenient way to manage their account and services on-the-go.
• Email: The company will use email to communicate with current and potential customers about their services and offer tailored promotions.

Traditional Channels

• Customer Care: Through customer care centers located in various regions, Evergy will be able to provide support to customers over the phone and in-person.
• Direct Mail: The use of direct mail will allow the company to reach out to potential customers, highlight their services and value proposition.
• Partnerships: The company will enter into partnerships with third-party companies to offer services, bundle services, and offer customers discounted prices.

EVRG will focus on providing seamless customer experience regardless of the channel used. The company will prioritize personalization and timely communication across all its channels to ensure customer satisfaction.

Customer Segments

Evergy, Inc. (EVRG) targets several customer segments in its operations. These segments include: Residential Customers: This segment consists of households that rely on Evergy for their energy needs. EVRG offers a range of services, including energy efficiency programs and billing options, to meet the specific needs of these customers. Commercial Customers: EVRG serves a wide range of commercial customers, from small businesses to large industrial complexes. These customers rely on EVRG for reliable and affordable energy to power their operations. EVRG offers specialized services and solutions to meet the unique needs of these customers. Municipalities and Government Agencies: EVRG also serves municipalities and government agencies such as schools, hospitals, and public institutions. These customers require a reliable and uninterrupted supply of energy to support their operations. Renewable Energy Providers: EVRG provides services to renewable energy providers who need assistance in connecting to the power grid. EVRG helps these providers to meet regulatory requirements and ensure grid stability. Energy Traders: This segment consists of companies and individuals who buy and sell energy on the open market. EVRG offers various services to these traders, enabling them to efficiently manage their energy portfolios and optimize their trading strategies. Wholesale Electricity Customers: EVRG also serves wholesale electricity customers, such as other power companies or large businesses who purchase electricity in bulk. These customers require a reliable and cost-effective supply of energy to keep their operations running smoothly. In conclusion, EVRG targets a diverse group of customers and provides specialized services and solutions to meet their unique needs. By catering to a wide range of customer segments, EVRG is able to maintain a stable revenue stream and drive business growth.

Cost Structure

The cost structure section of Evergy, Inc.'s business model canvas outlines the types of expenses that the company incurs and how they are allocated. Some of the main cost components for Evergy include:

• Generation and Fuel Costs: This includes the cost of producing energy, such as the operation and maintenance of power plants, and the purchase of fuel and other materials necessary for production.
• Transmission and Distribution Costs: These costs cover the infrastructure necessary for delivering energy to customers, including the operation and maintenance of transmission and distribution networks, substations, and other equipment.
• Personnel Costs: This category includes the salaries, benefits, and other expenses associated with Evergy's employees, including those who work in operations, customer service, finance, and other departments.
• Regulatory Compliance Costs: Evergy must comply with a range of federal, state, and local regulations related to energy production, transmission, and distribution. These costs cover the hiring of staff, the purchase of equipment, and other expenses associated with compliance.
• Marketing and Sales Costs: These costs include the expenses associated with marketing and advertising Evergy's services, as well as personnel or contractors necessary for sales and customer outreach.
• Technology and Infrastructure Costs: This category covers expenses associated with Evergy's information technology systems, customer billing systems, and other infrastructure necessary for the company's operations.
• Depreciation and Amortization: This category includes the recognition of the reduction in value of long-term assets, such as power plants, vehicles, and buildings.
• Taxes and Other Expenses: This category includes any other costs not included in the other categories, such as property taxes, insurance, and legal expenses.

Overall, Evergy's cost structure is heavily influenced by the cost of energy production and the maintenance and operation of the infrastructure necessary for energy delivery. Regulatory compliance costs and personnel costs also represent significant components of Evergy's overall cost structure.

Revenue Streams

Evergy, Inc. generates its revenue from various sources. The following are the main revenue streams of the company:

• Electricity Sales: This is the primary source of revenue for Evergy, Inc. The company generates revenue by selling electricity to residential, commercial, and industrial customers in its service territory.
• Transmission Services: Evergy, Inc. also generates revenue by providing transmission services to other utilities and independent power producers. These services include the use of the company's transmission lines and substations.
• Distribution Services: The company also generates revenue by providing distribution services to its customers. Evergy, Inc. owns and maintains the distribution lines and equipment necessary to deliver electricity to customers.
• Renewable Energy Credits: Evergy, Inc. generates revenue by selling renewable energy credits (RECs) to companies and organizations that want to offset their carbon footprint. The company generates RECs from its wind and solar power plants.
• Other Services: Evergy, Inc. also offers other services that generate revenue, such as energy efficiency programs and energy consulting services.

The revenue streams of Evergy, Inc. are closely tied to the demand for electricity in its service territory. The company's revenue is affected by various factors, such as changes in electricity consumption patterns, weather patterns, and regulatory changes. Evergy, Inc. continuously adapts its revenue streams to reflect changes in the market and to stay competitive in the energy industry.

Conclusion

Overall, the Business Model Canvas for Evergy, Inc. highlights the importance of developing a strong infrastructure and diversifying revenue streams to ensure long-term success in the energy industry. By leveraging technology and innovation, Evergy can improve operational efficiency and reduce costs while also expanding into new markets and offering new services. The company should continue to focus on customer engagement and community outreach efforts to build strong relationships and maintain a positive reputation. The implementation of renewable energy sources and sustainable practices will also drive growth and position Evergy as a leader in the industry.

• Key Takeaways:
• Invest in infrastructure and technology to improve efficiency and reduce costs
• Diversify revenue streams through expansion into new markets and services
• Focus on customer engagement and community outreach to maintain a positive reputation
• Implement renewable energy sources and sustainable practices to drive growth and industry leadership