Utility Week

UTILITY WEEK | 8TH - 14TH JUNE 2018 | 17 Operations & Assets Customer Solutions Theatre Keynote Theatre The 'latent threat' of cyber security "We're living in a golden age – it's like science fiction" A nother key element in the Customer Solutions Thea- tre was a discussion on cyber-security. Hugo Rosemont, director, security and resilience, at the ADS group, outlined the five key elements utilities will need to focus on in order to be prepared for what he described as the "latent threat" of cyber- security: board-level attention; cyber-security risk assessment; incident management plans; training and exercising; a com- munications plan. He made the comments as part a panel of experts discuss- ing cyber-security and how data has the power to change the way the entire market operates. In the same session, John Ferris, strategy director at W illiam Hewish, chief executive of United Utilities, aptly summed up the sentiment of the Keynote Theatre, where delegates were presented with a dazzling array of new possibilities, when he said: "We're living in a golden age. It's like science fiction." From AI to blockchain, and from the IoT to technology- driven decarbonisation, the message from the conference, held in association with Fujitsu, Mando and Sitecore, was clear: if you think the industry is being disrupted now, you ain't seen nothing yet. Discussion revolved around realising the full potential of data, AI and blockchain to create meaningful impact. Delegates questioned whether we're doing enough as an industry, and whether we're truly ready for the transformation and challenges this new world will bring. How do you please a robot? "Technologies from AI to blockchain present an opportu- nity, but also a responsibility. Who is the customer when AI is speaking to AI?" asked Hewish, painting the scenario of robot speaking to robot, whereby util- ity firms would use intelligent machines to deal with custom- ers, but customers themselves may use robots to optimise and automate their utility needs and dealings with suppliers. "When automation occupies the space at both ends of the line, how do you brand, market and differentiate your service?" he asked. AI was acknowledged as being able to: break down data silos and unlock actionable insights; delight customers with personalised communications; and empower customers for long-term resilience. But it was also suggested that total faith in its objective efficiency may be misplaced, because AI still needs our help – skilled people to oversee the data, as well as develop and train the systems that process it. Or as Nigel Watson, group director of information services at Northumbrian Water, put it: "AI is best deployed when blended with the knowledge of our people. There is a balance to be drawn between automation and human contact." In his experience, predictive data – the foundation of AI – is accurate 70 per cent of the time, but there is a challenge to man- aging "understandable internal frustrations" when it doesn't get it right. "It's a learning process, and there is a degree of patience that has to come with that, and that is a management task." "The myriad opportunities presented by this brave new data-driven world are there for the taking," said Matthew Timms, senior vice president and chief digital officer at Eon. "But this will create challenges as well as opportunities." Moving to DSOs Peter Emery, chief executive of Electricity North West, suggested the evolving role of storage will mean distribution system opera- tors (DSOs) can become critical enablers of a low-carbon future. This is because they can deliver resilience, affordability and sus- tainability. "DSOs have the abil- ity to offer low-cost solutions, create new markets, enable new services and collaborate with transmission through open markets to provide wider system stability," he said. It was suggested that if DSOs are to be allowed to move for- ward with the right approaches regarding the technical and commercial integration of distributed resources, including electric mobility and stor- age, then there will be fewer opportunities for adverse events to occur, thus ensuring a more successful transition. Conversation revolved around how innovation needs to be incentivised, particularly through smart regulation, to enable market participants to invest in new IT tools, grid digitilisation and smart grid solutions. Don't get le behind It was thought that innova- tions (especially those relating to digital technologies), could play a central role in enabling utilities of all stripes to respond positively and proactively to the wider pressures bearing down on the sector. A well-honed digital transformation strategy could enable a utility to keep pace with – or even outstrip – rising service and efficiency expecta- tions, demonstrate exceptional transparency and position itself strongly for regulatory out- performance and competitive advantage. Brought to you in association with Electron, suggested that estab- lishing a blockchain shared asset register could effectively address a whole host of cyber- security issues, but cautioned that the industry must work with a shared goal in mind, rather than individual needs. He said: "We don't know the products that will develop the system in the next 5-10 years, so we need to focus on working collaboratively to optimise the system, not the self." Adrian Barrett, founder and chief executive of Exonar, agreed, but when it comes to getting data management right: "It's not about fines, it's about reputational value."

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