Predictive Power — Generac’s AI-driven Approach to Energy Management and Use

Interview with Neil Bhandar, Vice President of Analytics at Generac Power Systems.

When the power fails and your Generac generator kicks in, ensuring your home or business remains illuminated and your appliances continue to operate, you have Neil Bhandar and his colleagues at Generac Power Systems to thank. An industry veteran and a prominent figure in the fields of analytics, AI, and ML, Bhandar's expertise and leadership as the company’s Vice President of Analytics are driving innovation in sustainable energy solutions.

Known for his impactful work at leading firms like JPMorgan and Procter & Gamble, Bhandar’s appointment represents a major step forward in the company’s commitment to develop environmentally responsible products. Generac, headquartered in Milwaukee, is the leading manufacturer of home backup generators and employs more than 10,000 people.

The company produces an extensive array of power products, including portable, residential, commercial, and industrial generators, as well as manual and fully automatic transfer switches and accessories for backup power applications up to 2 MW.

Bhandar recently discussed his new role with Ben Blanquera, Vice President at Rackspace Technology, and a member of the CDO Magazine Global Editorial Board. They explored how Bhandar's expertise in data-driven decision-making and advanced technologies like AI and ML will drive Generac's mission to enhance energy management efficiency, reliability, and environmental sustainability.

Playbook takeaways: 

  1. Ensure data accuracy from the point of entry: Through validation and logical processing, significantly accurate data entry reduces the need for extensive cleanup later, leading to more reliable and efficient data management.

  2. Build a predictive and reliable data framework: By forecasting future scenarios and growth opportunities with precision, you can better anticipate and prepare for various outcomes.

  3. Proactively manage external factors: Addressing and managing the impact of patterns – in Bhandar’s case, weather patterns, grid stability, and power outages – can help shape market demand, transforming potential headwinds into tailwinds.

  4. Enhance operational efficiency and customer service: Understanding the role data can play in machine operations, preventive maintenance, and customer interactions can ensure reliable service and customer satisfaction.

Generac’s new data vision: Driving predictive, reliable, and sustainable growth

Bhandar, who assumed his new role at Generac in January 2024, is focusing on strategically developing the company’s data and analytics function to deliver insights that are not only predictive and reliable but also sustainable. The core of his mission, he says, is to build a data framework that enables the company to forecast future scenarios and growth opportunities with accuracy. This approach will allow Bhandar and his team to anticipate and prepare for various outcomes, whether they involve resource allocation, strategic focus, or other critical factors, ensuring that the company is well-equipped to navigate the future without being caught off guard.

Bhandar says, “Our data function will address the impact of external factors such as weather patterns, grid stability, and power outages, aiming to transform these challenges into opportunities. By proactively managing these variables, we aim to not only react but also shape the market demand, turning potential headwinds into tailwinds.”

Additionally, he says his role will encompass overseeing data related to machine operations, preventive maintenance, and customer interactions, in addition to internal data. This comprehensive approach will help drive operational efficiency and enhance customer service, aligning strategies with the evolving needs of the industry.

Building a robust data foundation

A fundamental step in Generac’s AI journey is establishing a strong data foundation. According to Bhandar, every organization deals with legacy data, often plagued by inconsistencies and inaccuracies. “At Generac, we prioritize data cleanliness and quality from the outset. By integrating AI-driven fuzzy logic and validation against authoritative databases, we ensure that our data is accurate and reliable,” he says. 

As an example, Bandar discusses the scenario of a prospect expressing interest in a backup generator, where the information provided by the potential customer is first validated against a comprehensive database to correct any inaccuracies. This approach improves data quality and streamlines subsequent processes, reducing the need for extensive data cleaning later. By capturing clean data at the point of entry, Generac can minimize costly and time-consuming cleanup efforts downstream.

Enhancing customer experience through predictive insights

To enhance Generac’s customer service capabilities, Bhandar has focused on developing new data-focused offerings such as Mobile Link, which monitors the health of backup generators. With Mobile Link, generators send heartbeat signals to indicate their operational status, allowing the company to proactively address any issues before they impact customers.

This predictive maintenance approach ensures that its customers are never caught off-guard by malfunctioning generators, especially during critical times. Bhandar says, “By leveraging AI, we can predict potential issues and notify customers or service dealers to take preventive action. This not only enhances customer satisfaction but also reinforces our commitment to reliability.”

Exploring the expansive potential of AI

While AI's potential is vast, Bhandar says Generac is adopting a phased approach, starting with foundational applications and gradually expanding to more advanced use cases. Initially, Generac is using AI to automate data cleaning, improve ROI on data, and streamline its operations.

“As we progress, we are exploring more experiential applications of AI. One exciting prospect is virtual consultations for customers interested in backup generators. Instead of traditional in-person visits, we envision a future where customers can engage in virtual consultations, showcasing their homes and discussing options in a virtual environment. This approach not only saves time and resources but also enhances the customer experience by providing personalized, convenient interactions,” elaborates Bhandar. 

The power of synthetic data

AI's capabilities extend beyond improving existing processes; they also open new avenues for innovation. At Generac, Bhandar says they are exploring the use of synthetic data to address challenges in market research and data collection. Traditional surveys often suffer from low response rates and extended timelines. By using generative AI to impute data points, the company can accelerate the research process and gain valuable insights more efficiently.

If Generac has partial data from a survey, says Bhandar, AI can help fill in the gaps, providing a more comprehensive understanding of preferences and behaviors. This approach not only reduces the time and cost associated with traditional market research but also enhances the accuracy of the insights.

A vision for the future: Home as a sanctuary

Bhandar says the long-term vision at Generac is to create a holistic, AI-enabled home energy management system that goes beyond backup generators. The goal is to transform homes into sanctuaries where energy consumption is optimized for comfort, cost-efficiency, and sustainability. 

“Imagine a future where your home intelligently manages energy usage based on real-time conditions and your preferences,” Bhandar says. The company’s Ecobee product already allows homeowners to modulate indoor temperatures based on energy costs and comfort zones. By integrating AI, Generac can further enhance this capability, adjusting energy consumption dynamically to save costs without compromising comfort. 

Additionally, Bhandar says Generac is exploring solutions for energy storage and utilization, such as using solar power and batteries to create a closed-loop system to maximize energy efficiency.

In this vision, AI will play a crucial role in anticipating and responding to changes in energy demand, weather patterns, and grid stability. By proactively managing energy resources, the company can ensure a seamless and sustainable energy experience for its customers.

Conclusion

By prioritizing AI's role in enhancing customer experiences and ensuring that AI solutions are delivering real value to customers, Bhandar and his team at Generac are driving real-time innovation. They are also pushing boundaries and thinking strategically about new use cases, as well as ways in which predictive technologies can foster sustainability and anticipate future energy needs.

About Ben Blanquera:

Ben Blanquera is a Vice President with Rackspace Technology. Rackspace is a global leading hybrid cloud services provider with specialties in Data/AI, Application Development, Security and Cloud Platform. Ben is passionate about creating amazing business outcomes by leveraging data and analytics. He is on the CDO magazine editorial board and is interviewing global CDOs to gain their insights to create a “playbook” for the industry.

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