Utility Week

22 | 23RD - 29TH MARCH 2018 | UTILITY WEEK Operations & Assets Event Utility Week-Wipro Technology and Innovation Council Annual Dinner, 8 March, Scott's, London H ow does a company create an inno- vation culture? How does it ensure that everyone from the chief execu- tive down to junior employees know what the organisation is trying to achieve and feel empowered to make changes within their sphere of influence in a way that contributes to this? These were some of the questions mulled by attendees at the Utility Week-Wipro Tech- nology and Innovation Council's annual din- ner (see box), which took place in London earlier this month. The agenda for the evening set out to gather feedback on an industry research pro- posal, designed to improve understanding of current thinking about how innovation and the strategic application of transformative technologies should best be supported in UK utilities – and how this ideal compares to reality. The discussion prompted some insight- ful observations and has helped to shape a research question set which will shortly be taken out to the wider utilities market. It also sparked an enthusiastic bout of experience- sharing however, highlighting some of the ongoing challenges companies are grappling with as they seek to transform for an age of digitally enabled business processes and customer engagement. Lessons learned First and foremost, multiple attendees shared observations and experiences which pointed to misaligned perceptions of innova- tion in many organisations. In short, innovation can mean different things to different people, and different con- stituencies in an organisation. For example IT, operations and engineering – can have very different ideas about what an effective innovation process with a successful out- come should look like. They can also have diverging views on the kinds of benefits tech- nology investment should bring. Creating a common understanding of innovation, which unites organisational efforts to deliver both incremental and dis- ruptive changes which drive in the same direction is therefore critical. And in part, one council member observed, this requires an appreciation that innovation is catalysed by different factors at different levels in any organisation. For example, while board-level keenness for innovation is commonly triggered by threats to survival, like competitive pressure or the need to retain and satisfy shareholder support, elsewhere catalysts tend to be more specific to an operational microcosm and are understood as time sensitive targets for cost reduction and efficiency gains. If these cata- lysts are not aligned, then innovation effort will not deliver the outcomes businesses ulti- mately desire. There's a great deal about effective inno- vation strategy and culture building that utilities can learn from other sectors and dinner guests were not reluctant to share their thoughts on the best places to look for inspiration. When it comes to customer satisfaction and engagement, the success of multina- tional e-commerce leaders like amazon and technology innovators like Apple were most commonly referenced and admired for their success in mastering the distinction between conventional customer service approaches, and a fanatical dedication to enhancing cus- tomer experience. But it's not only from global giants that utilities can learn. Many guests favoured a focus on smaller companies as a source of inspiration in their quest for sustainable innovation cultures. Not for the first time, it was observed that smaller, younger companies have advan- tages in agility and are free of the entrenched attitudes and legacy infrastructures that can hold established organisations back. Cadent's chief technology officer James Houlton said his team has very consciously sought to emulate a "start-up mentality" as it considers how the gas distribution com- pany – so recently spun out of National Grid – will tackle delivery of a technology strategy which truly drives better business outcomes, for customers and for its new consortium of investors. Inevitably, the interplay between regula- tory frameworks and the scope for utilities innovation also formed a key element of dis- cussion over dinner. Energy network leaders widely lauded the benefits that regulatory funding has brought in terms of justifying the expenditure of time and resources on projects which would not otherwise be sup- ported. But it's not just regulatory funding of innovation that has delivered a surge in creative thinking and technology experi- mentation in recent years. One delegate said the shi to totex accounting under RIIO has done more to achieve innovation in business as usual than funding scheme have or will. Further insights and observations on the best approaches to successful innovation were too many and varied to list in these pages. But with the council's research project due to launch later this month, the oppor- tunity to gain even wider engagement from industry leaders on these important issues looms large. It's all about culture change Making the most of new technology, and incorporating innovation into business-as-usual, means getting buy-in from everyone in the organisation.

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