Market segmentation for improved efficiency of Ipswich water supply system

Abstract

Urban water supply systems are becoming under increasing pressure as a result of dwindling water resources and increasing population. Efficiency has become vital in being able to maintain a sustainable water supply to society. This research investigates the Ipswich water market, and identifies ways of classifying water customers by critical supply. This sets the basis for market segmentation, which will allow Ipswich Water to prioritise water failure response and to identify the need for water infrastructure maintenance and renewal. The use of risk analysis to segment customers by level of risk has been determined as the most effective means of determining customer criticality. Essentially the objective of risk analysis is to distinguish between high and low risk customers so that priorities of risk management can be established. The risk assessment process involves identifying potential hazards, developing risk criteria, and finally undertaking a risk evaluation. This research sets the foundation for market segmentation by risk analysis for implementation into Ipswich Water's management strategy. The outcome of this project has achieved a framework for future water policies and management strategies. This framework will be influential in providing Ipswich Water with a smooth transition through the SEQ Water Reform, and improving the organisation as a commercial entity. Further work is required in developing the risk assessment process to achieve its full potential as an effective management tool; this will involve more thorough data analysis and investigation of the water supply system