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EVALUATION

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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF<br />

A.1.3<br />

Parties Approaching with Project Ideas (Q1.3.3)<br />

Questions:<br />

Please provide details (to the extent possible) of companies and contacts who may<br />

have approached you with ideas for LCNF projects, but with whom you did not work?<br />

If possible can you explain why you chose not to go ahead with their ideas?<br />

A.1.3.1 Reasons for Rejection<br />

The main reasons, as provided by more than one respondent, behind network operators<br />

declining project ideas were found to be:<br />

• to avoid duplication of similar projects taken on by other DNOs, as said by three<br />

respondents;<br />

• the project would not result in enough benefits, to the DNO or their customers, as said<br />

by two respondents;<br />

• projects not meeting fund criteria, as said by two respondents; and<br />

• a lack of confidence in the external party that approached with the idea – in their<br />

ability to be able to support the roll out of the solution or deliver on-time/to-budget.<br />

Other reasons, each proffered by only an individual respondent, were:<br />

• the ethos of the external party and of the DNO were incompatible;<br />

• the project ideas did not fit into the portfolio of the DNO, avoiding internal duplication;<br />

• the proposed ideas are under-developed, they will only work with parties to develop<br />

ideas like that if it is a very strong case from the outset or they have a good track<br />

record;<br />

• the timing is incompatible – the skilled resources required from the DNO are already<br />

committed;<br />

• technology readiness level - the project put forward was not at a high enough TRL to<br />

be a LCNF project; and<br />

• the level of risk is unacceptably high.<br />

A.1.3.2 Companies and Contacts that Approached<br />

Some respondents provided the names of the organisations or details of the projects that<br />

they rejected, although some did not, citing Intellectual Property as the reason for not<br />

sharing.<br />

Some examples of the reasons for rejecting proposals from third party organisations<br />

include projects that:<br />

• were too similar to one undertaken by another DNO;<br />

• required elements with high capital or upfront costs;<br />

• were of too small a scale to be cost effective;<br />

• required overly complex data requirement;<br />

• would involve premature replacement of existing assets;<br />

PÖYRY MANAGEMENT CONSULTING<br />

October 2016<br />

713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx<br />

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