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The Topic: Transformation UTILITY WEEK | 21ST - 27TH JULY 2017 | 9 TRANSFORMATION THE TOPIC extent to which competition can be applied in the delivery of essential services with social equity. There's no doubt, however, that the more tangible force of technology is fundamental too. The journey towards creating digital util- ities has begun, encompassing distributed and low-carbon energy sources, smart home technologies, IT backed by powerful cogni- tive computing, and intelligent assets. Utilities must innovate to absorb these technologies into their businesses and to apply them in novel ways, as well as to cre- ate system and customer value. At Utility Week Live 2017, the challenge of utility business transformation lay at the core of seminar and conference content. The following pages review some of the main les- sons learnt by delegates looking to play a part in this sector's disrupted future. WHAT'S IN THIS ARTICLE l Investors and risk, p9 l Asset-light future, p10 l Blockchain, p10 l Innovating for the long haul, p11 l Cast study: Fault Current, p11 l UKPN's Basil Scarsella, p13 l Water and digital services p13 l Smart metering p14 l Case study: the Connected Drone p14 U tilities are under Darwinian pressures to adapt or die. A new world order is emerging in which the industry must become more flexible, more transparent and more agile, or become the fall guy for failed decarbonisation efforts and frustrated consumer wants. While such failings may not result in dramatic company collapses, they could certainly lead to the sidelining and margin- alisation of traditional infrastructure provid- ers and retailers. As new technologies rise to maturity, the door is opening for "asset light" intermediaries to make an appear- ance, and for companies to elbow their way into the value stack at the customer interface and in the system balancing process. Utilities – of all kinds – must decide if they want to contest their traditional domi- nance in these areas. For those that do, the ability to transform their business models, cultures and skills sets, is paramount. They must also ensure that this transformation is backed by share- holders who understand the direction of travel in the utilities industry, and have an appetite for it. This challenge of business transformation is a many faceted beast, which interplays with major industry conundrums – like the status of trust in utilities, the role of policy and regulation in a privatised sector, and the Innovation and dis- ruption are trans- forming utilities Deloitte Digital's summary of the transformation imperative for utilities Utility Week Live 2017 Transformation was one of two overarching themes at Utility Week Live 2017, the other was Flexibility. See our report on Flexibility, based on content from the show, online at: www.utilityweek.co.uk Report sponsored by: Disruptive forces A new relationship Threats Opportunities Where to play How to win + + + + =