Digital Utilities: new opportunities and changes
Many Utilities see the digital revolution as a threat to their business model. In fact huge opportunities await those Utilities capable of transformation.
Data in the enterprise is growing more and more exponentially, creating digital threats but also offering valuable opportunities for Utilities. Competition to win customers is shifting to the online channel, and theInternet of Things is promising new product and management options.
To thrive in the midst of these new challenges, the utility of the future will have to transform itself into a fully digital system. This means that utilities need to address a transformation of their business that can be successfully integrated and scaled in the organization. It should be designed around the company’s existing value drivers and strengths, including product portfolio, technical expertise and customer proximity. Projects and partnerships should aim to digitize core processes, upgrade IT platforms and conquer new areas of business.
By their very nature, digital transformations will also have to be about cultural change. Indeed, utilities’ business horizons have traditionally been long or medium term, and for good reason. Indeed, the industry relies on the use of expensive resources that require large investments and must take into account specific regulatory factors. But with the advent of distributed generation, alternative energy sources, and data-driven customer interface, utilities are going through an information-based digital economy. Here success will depend on the rapid scaling of innovations.
In articulating their new digital vision, companies should first identify the key action areas where digitization would make the greatest revenue contribution in the next year or two. Through systematic analysis, companies will then be able to learn the value opportunities in each area and develop a digital project by laying the foundation for its successful implementation.
Key action areas for digital transformation in Utilities:
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