Utility Week

28 | 18TH - 24TH JANUARY 2019 | UTILITY WEEK Customers Market view T he evolution from traditional petrol- powered vehicles to electric vehicles (EVs) is fast approaching. What EVs offer in terms of innovation and environ- mental benefits means they have never been safer, sleeker or more exciting to drive. This, combined with connected and autonomous technologies, means that powering the ecosystem that underpins these vehicles is critical. As the technology supporting electric cars and batteries continues to improve, they are becoming more prevalent in the consumer market – with sales soaring in the UK over the past four years. There's also increased environmental and political pres- sures to address climate change and reduce the dependency on non-renewable energy. As a result, in 2017 the UK government announced a £3 billion "clean air" initiative to tackle emissions, banning new diesel and petrol vehicles by 2040. This increase in demand for EVs will no doubt force utility companies to rethink their relationship with the automotive indus- try. Providing a seamless experience across the EV ecosystem will be key, from initial marketing, to purchase, to ongoing mainte- nance. As a result, many different markets – such as supporting infrastructure, insur- ance and mobile tariffs – will need to be converged, to offer customers a truly unified experience. So, an intelligent approach to the convergence of these markets is required, supported by technology, to make an enhanced and more streamlined customer experience a reality. Therefore, it's imperative for energy providers and car manufacturers to work with the right partners who can manage and oversee all the converged supply chains. Only then will they be able to deliver the seamless customer experience that people and businesses have come to expect. Beginning the journey Electric vehicles are subject to different factors compared with petrol-powered auto- mobiles. For instance, when marketing these vehicles, they will require expertise across multiple providers, not just the current finance and insurance organisations. This represents a unique opportunity for energy providers to enter a new space and potentially "own" the customer, if they can orchestrate the convergence needed to reach different customer domains and scope out the operating model for the winning automobile solution. Some vehicle manufacturers, such as Tesla, have already started addressing this by supplying infrastructure such as dedi- cated charging points themselves, but as adoption becomes more widespread, con- sumers will expect a completely unified experience under a single brand name rather than multiple providers. Once the operating model for the EV has been designed, it will need to go through soware and process testing, to ensure the success of the system upgrades. As a result of increases in government regulations and the high cost of non-compliance penalties, quality standards have become all the more important. Regulation can be both a serious barrier to and a key driver for the uptake of innovative technologies. So, it's crucial that energy firms partner with quality testing specialists in the automotive soware and IT industry, to help them accomplish their transformative goals. The customer is key Once the manufacturing side of the supply chain is addressed, the energy company will need to converge the contract lifetime care plan and in-life tariff adjustment requested by the customer. This will include the services billing, maintenance and tariff set-up and adjustments, which will all be provided across several converged suppliers. These actions may fall outside the current capabilities of the energy provider, so it will need to adopt a holistic customer management strategy. By working with a key partner to over- see this new strategy, coupled with efficient delivery management services, the energy provider will feel confident in continuously addressing customer needs on an industrial scale; managing risk, while maintaining profit margins – which will safeguard its brand reputation. Convergence is the enabler Convergence will bring many organisations closer together, from both a customer and commercial aspect, and this shi will neces- sitate significant operational and process change supported by technology. By success- fully achieving this, energy providers will have a real opportunity to forge a new posi- tion within the market that puts them ahead of their competitors. But the advantages of implementing advanced and innovative EV solutions can also be an energy company's greatest chal- lenge. To overcome this challenge, an energy organisation will need to partner with a quality assurance specialist that can help it to converge supply chains and provide it with the revised operating model designs and processes, plus technology roadmap and assurance, to reduce risk. Only then can an energy provider break through the market with a first-of-its-kind, innovative EV solution, which will expand its reach and help establish its business as a key frontrunner for driving change. Jonathan Smith, senior principal consultant, SQS Time to get in the driving seat Energy providers have the opportunity to enter a new space and 'own' customers if they work with partners that can oversee all the converged supply chains of electric vehicles, says Jonathan Smith. Tesla supplies infrastructure such as dedicated charging points

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