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Network June 2018

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NETWORK / 20 / JUNE 2018 Q: What key advice do you o er opera- tors who are looking to fully digitalise their networks? A: Firstly, digitalisation is not a project but a transformational programme of business functions, operations and processes. The entire organisation needs to align behind the programme. To achieve this, senior leaders from C-level need to be at the forefront of the programme from the beginning to the end. Secondly, digitalisation in the utility space is complete only when the integra- tion of IT, OT and IoT is completed over an IoT operating system in a seamless fashion. Thirdly, full e• ciency of the industry can be harnessed only when the entire ecosystem functions in unison. The only way to achieve this is through co-creation among the key eco-system partners. Our job is to ensure that the operators understand this fully and their digitalisation programme is devised to achieve this in a comprehensive way. Q: Are UK operators moving quickly enough to digitalise their networks and harness the opportunities that IoT o ers? A: As I mentioned before, digitalisation is com- plete only when the integration of IT, OT and IoT is completed seamlessly over an IoT operating system. Currently, most of the utilities across the world are undertaking the digitalisation at IT level and partially at OT level. One of the main reasons behind this was the unavailability of a trustworthy open IoT operating system/platform in the industry. This has inhibited operators going forward in an e• cient way. Fortunately, introduction of IoT operating systems such as MindSphere, where data analytics and various applications, in particular AI applications, can be developed by anyone from anywhere at any time, has changed the scenario and we can see digitalisation in the real sense will start taking place in the utility space in a big way from here onwards. Q: Do you see any disparities between operators in the UK and other regions in terms of their adoption of new technolo- gies and readiness for digitalisation? A: The UK utility industry has taken leader- ship in many aspects from privatisation to market reforms during the last several dec- ades. Many of the technology providers in the utility space used to consider the UK market as the test bed for technologies, including digitalisation, due to the business-friendly environment and world-class research resources. However, the success of digitalisa- tion depends on the readiness of operators to co-create with solution providers and eco- system partners. Unfortunately, many of the UK operators still think in the old hierarchical way and solution providers are at the bottom of the food chain in these operators' minds. On the contrary, many operators across the world, in particular from the Far East, are undertaking the digitalisation task "the right way" by choosing to co-create with ecosystem partners. This makes the technology provid- ers consider these forward-looking operators as their "test beds" for future innovation programmes. Therefore, it is important that UK operators, including policymakers, start thinking di‡ erently to create an atmosphere where innovation programmes such as digitalisation can thrive. Future policy deci- sions and regulatory frameworks should be designed to achieve this. This will help us to achieve our industry strategy goals faster. We have taken leadership during the last several decades and it is important we continue that leadership mentality going forward. Q: What work is Siemens doing to help facilitate this digital transformation across business functions, operations and processes? A: Siemens has spent the last few years preparing and investing in MindSphere - the open, cloud-based IoT operating system that connects machines and physical infrastruc- ture to the digital world. It harnesses big data from billions of intelligent devices, which can be retro‰ tted or connected into Siemens' devices or competitor devices in the ‰ eld. The data can then be released into a secure cloud where we can start adding real value in terms of what the data is telling the organisation, how this feeds into strategy development and how it can help drive business success. Traditionally this is the sort of data that has been closeted away so that very oŠ en only the real techies can access it. MindSphere helps to make this information more transparent and ready for analysis. INTERNET OF THINGS Digitalising the network The digital transformation of distribution networks to connect and monitor assets is not a new concept. But while the proliferation of connected devices enables organisations to gather data from the network, are UK operators doing enough to harness the opportunities of digitalisation? Siemens' Victor Sellwood – senior consultant, energy business advisory – speaks to Network.

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