Utility Week

UTILITY WEEK | 2ND - 8TH AUGUST 2019 | 27 Customers Utilities need to be agile to adapt to a world of constant disruption. G one are the days of mere disrup- tion – we are now witnessing the age of "disruption at pace", and the age of "innovation at pace". Necessity, that metaphorical mother, is driving the innova- tion needed to address changes in customer behaviour; increasing customer demands and expectations; constant changes in market condi- tions; the nimbleness of new entrants; and the acceleration in technologi- cal advancements. As companies refash- ion their interactions with customers, fewer people listen patiently to recorded assurances that "your call is important to us". Customer experiences with Amazon or Uber are the new standard and cus- tomers now compare the experiences provided by all companies on the same scale. This, combined with the eruption of the "smart" world (devices, meters, grid, vehicles, etc), the a‚ nity towards greener and low carbon energy and the increased drive to save resources, have all contributed to a constant change in both regulations and expecta- tions on utilities. To adapt to this con- stant need to innovate and change, utilities are overwhelmingly turning towards "agile" as their preferred delivery model. This is where established organisations face one of their biggest challenges – "how do you transform your established internal processes and the estab- lished working culture in a way that it is construc- tively disruptive to the organisation". From a technology per- spective, it is no wonder that cloud is the foremost investment priority for European utilities. It facili- tates the agility needed to adapt to the changing world. It allows scaling at pace and enables com- panies to leverage vendor ecosystems without break- ing the bank. While cloud provides the legs to race, data is the necessary spine, AI is the new brain and mobility, the face for the organisa- tions. These together make up the lion's share of the investments being made, and rightly so. Here are the facts: 4 per cent of European utili- ties have embraced agile methodologies, 57 per cent are investing primar- ily in cloud, 53 per cent in mobility and 48 per cent in cognitive technologies. But have they all been successful in achieving their business goals? Technology and frame- works are mere tools and how they are used will di" erentiate the leaders of tomorrow. Opinion Krishna Kanth Head of utilities industries unit (UK and Ireland) 7% 36% 16% 20% 21% Impromptu DX LOB DX Short Term DX Integrated strategy DX is the strategy 59% The digitally distraught 41% The digitally determined 29% 21% 19% 17% 14% Limited expertise Outdated KPIs Islands of innovation Siloed initiatives Weak roadmaps FINANCIALS Inherent value PLATFORM Integrated for scale ORGANISATION Structure and culture STRATEGY A single strategy STRATEGY A single strategy 46% 34% 20% Q: What is the key priority in terms of DX investments for your organisation in the next 12 months? Creating new revenue streams Digital business models Improving customer interactions Digital experiences Optimising operations Digital processes and automation 21% only of utilities already have a single strategy DIGITALLY DETERMINED UTILITIES ARE STILL NOT THE MAJORITY WHY NOT? THE BLUEPRINT TO DETERMINATION A SINGLE STRATEGY PERMEATING THE COMPANY Source: IDC Energy Insights Q: What is your approach to DX efforts? Source: IDC Energy Insights Source: IDC Energy Insights Source: IDC Energy Insights Brought to you in association with

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