Utility Week

UTILITY WEEK | 3RD - 9TH NOVEMBER 2017 | 23 Operations & Assets Comment Utilities around the world are moving to adapt to manifold challenges and opportu- nities, arising from shiing approaches to regulation, environmental pressures, and huge changes in consumer expectations. And as utilities seek to respond to these factors, they are finding that their strategies are deeply intertwined with the march of technological innovation. In the UK, it is clear that utilities com- panies of all kinds are mobilising rapidly to better understand this relationship between technology and wider business and industry dynamics. This research, conducted by Utility Week in partnership with Wipro, shows significantly increasing appetite for technological innovation as well as ambition to embrace next generation technologies like artificial intelligence and automation. It is enormously encouraging to see this determination to use all that technology can offer in order to deliver better value for cus- tomers, whether through smarter and more efficient infrastructure or via transformed engagement. There is no doubt that those who can successfully adopt and embed such transformative technologies in the next few years, will be positioned for outperformance and competitive advantage in the longer term future. Doing this will not be without its difficul- ties, however. Again, this research shows that although companies are ambitious, they are also very aware that legacy cultures and a shortage of appropriate skills could hamper their ability to grasp the opportuni- ties in front of them. Being aware of these challenges is the first step to overcoming them. And so we hope that this research, commissioned by industry leaders, will help utilities better understand the road ahead. We hope that the findings will spark discussion within the industry and prompt new partner- ships which can help companies move forward with clarity and confidence, despite all the uncertainty around them. Arun Krishnamurthi, senior vice presi- dent and global head of utilities, Wipro THE IMPORTANCE OF FACTORS FOR IMPROVING AN ORGANISATION'S CUSTOMER ENGAGEMENT LIKELIHOOD OF SHORTAGES IN SPECIFIC AREAS AFFECTING THE ORGANISATION'S ABILITY TO DELIVER ITS STRATEGIC OBJECTIVES WHICH DIFFERENT BUSINESS AREAS WILL BE TRANSFORMED BY NEW TECHNOLOGY IN THE NEXT 3-5 YEARS? KEY BARRIERS TO THE ADOPTION OF NEW TECHNOLOGY Unimportant Neither/nor Important Don't know Unimportant Neither/nor Important Don't know Numbers may not add up to 100% because of rounding up/down Numbers may not add up to 100% because of rounding up/down Numbers may not add up to 100% because of rounding up/down Unimportant Neither/nor Important Don't know Mobile technologies Utility apps for consumers Social media The smart meter rollout The Internet of Things and connected home technologies A new customer relationship management system Data analysis Engineer level STEM skills Technical level STEM skills Specialist STEM skills Asset misalignment Field force operations Procurement HR Customer engagement Customer engagement and communications skills Project management HIGHLIGHTS FROM RESEARCH Low risk appetite Lack of innovation funding 21% 21% 21% 6% 6% 3% 32% 44% 38% 26% 26% 26% 21% 38% 38% 35% 35% 41% 36% 21% 12% 6% 12% 21% 21% 15% 15% 3% 39% 3% 3% 3% 55% 70% 79% 85% 41% 26% 53% 58% 83% 19% 78% 69% 67% 14% 6% 8% 19% 14% 25% 11% 19% 14% 22% 64% 3% 3% 3% 76% 66% 50% 50% 44% 38% Regulatory price control periods Lack of technology demonstration facilities in the UK Lack of innovative ideas from trusted third parties Procurement practices

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