Assessment of Digital Maturity
The digital maturity of the electricity industry is somewhat mixed. Some utilities are using advanced analytics to optimize assets; and in some systems there is widespread implementation of smart meters; while some utilities are beginning to digitally manage and integrate distributed generation resources. However, according to research sponsored by the WEF, overall only about 43% of utilities are currently investing in digital technologies as part of their overall business strategy, indicating this mixed status.
In a study involving more than 1,900 companies in Europe and the US, conducted by BCG, a consulting company, 57% of the utilities considered themselves to be digital laggards. Although utilities mostly invest on a project basis as vast bureaucracies, their close B2C orientation is now forcing them to also face increasing convergence between electric utilities and the home retail market, where intelligent appliances and smart meters are increasing demands for greater customer orientation. They are also facing pressure from their commercial and industrial markets where a platform for industrial-scale analytics, are connecting machines, sensors, control systems and devices.
Today's utility customers expect more than just reliable electricity service. They are becoming more proactive, demanding more choice and expecting more personalized services. What is missing for many utilities today is a top-tier customer experience (CX) and the systems that support it. Some utilities are investing in digital self-service technologies and mobile platforms. According to another survey, less than 14% of the utilities surveyed have any integrated digital transformation strategy.
Overall, we observe a sector that has considerable digital ambition but suffers a mismatch between those aspirations and its digital vision, investment, culture, and capabilities. Our assessment of the digital maturity of the utilities industry is thus under 40%.
Take a look what we are offering to you
Industry News & Views
Industry Q&A Forum
Industry News & Views
SCADA to the Cloud or Edge Computing?
Even with IioT, SCADA needs to close to the data source. But with so much data being collected, SCADA can contribute data to other enterprise systems as well. However, the low latency and extremely high availability is so critical for Utility use cases that SCADA may not moving to the cloud anytime soon. But edge computing might be a good compromise in the author’s view.
Take a look what we are offering to you
Digital Transformation in the Utilities Industry - CASE STUDIES
An Urban gas and electricity utility was being beset with complaints from their contractors and also home builders in the metropolitan area about the delays and lack of status information on requests for the installation of gas and electricity meters.
The meter installation approval process involved: (1) completing the request form on line; (2) submitting fees, building designs, and other documentation; and (3) waiting for approval – a wait that could take anywhere from four weeks to six months ! There was no easy way to track the progress of the request through the approval process.
The Utility hired Primitive Logic, a digital transformation consulting firm with experience in the utilities and other industries. Having worked with the Utility before, Primitive Logic was familiar with the Utilities legacy systems and would be able to hit the ground running to more seamlessly and cost effectively integrate any new portal they developed.
The contractors wanted an online system that would allow the tracking of the status of each request and more clarity on the reasons for and the predicted length of the delays to help them better plan their work schedule. Primitive Logic took time to clarify end-users’ needs and pain points, before designing the portal which included: (i) A Dashboard for all the requests and their status and flags for missing documentations etc.; (ii) A job detail page with the status of each phase ((initiation, planning/engineering, final design, pre-construction, and construction) of the process detailed; (iii) A responsive design across mobile, desktop and tablet since the end users were mostly on site or in transit and needed a mobile first approach. The visual design was consistent with the Utility’s public site to deliver the information users need quickly and efficiently.
In addition to a high level of user satisfaction, there were also significant savings for the contractors with the reduction of uncertainty and avoidable delays (such as due to lack of awareness of missing items and incomplete application information, etc.). Some of these savings are likely to also be reflected in the future bidding by the contractors and builders.
Sources: Primitive Logic
The Yield is an Australian agricultural technology company on a mission to transform food and farming practices by building secure, scalable digital technology to sense, analyse and predict on-farm growing conditions, and then deliver information in a usable format to help increase yield, reduce waste, mitigate the risk and cost associated with soil and weather and inputs. Partnering with Microsoft (Azure) and Bosch, Yield has received several innovation awards from Government and International organizations. Learn More..
- Michelin¹ is a global player in mobility and one of the leading tyre manufacturers across the globe.
- Michelin has 107,000 employees and achieved revenues of €21 billion for period ending TTM 6/15 and an EBITDA of €3.4 billion; margins have increased from 13.8% in 2011 to 16.6% TTM 6/15.
- EFFIFUEL™ by Michelin Solutions was the first innovation in the market targeting increased efficiency in fleet fuel consumption.
- Michelin Solutions makes a contractual agreement to meet pre-defined targets, or otherwise provides a refund in proportion to expenses incurred.
- EFFIFUEL™ is a comprehensive ecosystem that includes sophisticated telematics, training in eco-driving techniques and the EFFITIRES™ optimized tyre management system.
- EFFIFUEL™ provides a “satisfaction or your money back guarantee” by providing the fuel efficiency service risk-free to truckers.
- EFFIFUEL™ encourages careful handling of the truck equipment, leading to extra savings for companies and a potential doubling of pervehicle profits.
- A reduction in fuel consumption of 2.5 litres per 100km represents annual savings of €3,200 for long-haul transport (at least 2.1% reduction in total cost of ownership and 8 tonnes in CO2 emissions).
- Business model shift from selling tyre as a product to a service guaranteeing performance, has helped Michelin achieve higher customer satisfaction, increased loyalty and raised EBITDA margins.
- Michelin initiated the digital transformation internally, but they soon realized that in some critical areas, such as big data analytics or infrastructure they needed to partner with external experts.
- Cultural change was another prerequisite to successfully manage the digital transformation journey.
- The risk of changing the business model was mitigated since Michelin Solutions was created as a standalone entity and the company decided to test the solution by launching several pilots.
Sources: Michelin, WEF/Accenture Analysis
Have a Burning Question?
Chances are someone has the answer! We invite you to post your question in our Q&A forum, where you can Categorize your question and tag it to one or more of the Digital Transformation related topics and apps.While we do not guarantee that another member will answer it in time for you, chances are good that one or more of us will.