To activate this catalyst, a company should determine: How digital are we today? The motivation for industry digitalization will be different for each player. Using AI, visualization, and simulations incorporating data on voltage, load, grid topology, and more, the platform helps operators assess available capacity on the system and plan for future needs. Something went wrong. Ideally, organizations should adopt an innovation process that enables them to rapidly design, test, and iterate each concept through to launch. Most transformations fail. She is based in San Francisco, California. They can use the tool to make direct contact with experts if more complex error patterns are detected. In order for smart utilities to benefit the community, he said, all parties need link and match cooperation. Oil and gas companies have long used digital technologies to improve decision making for exploration and production assets, including reservoirs and pipelines. Select topics and stay current with our latest insights, The digital utility: New opportunities and challenges. It should be designed around the company’s existing value drivers and strengths, including the product portfolio, technical competence, and customer proximity. Everywhere you turn, leaders are talking about the digitalization of utilities and the new, agile, and innovative capabilities that such advances bring to power providers. Our Digitalization solutions allow you to manage day-to-day performance safely and reliably. All power and utilities respondents were director level or higher, including CEOs (6 percent), CFOs (9 percent), COOs (10 percent), CDOs (7 percent), CIOs (5 percent), CTOs (7 percent), CSCOs (3 percent), business unit presidents (6 percent), executive VPs (9 percent), VPs (12 percent), executive directors (7 percent), and directors (19 percent). Inspections can be cut from 5 hours to 30 minutes, while reducing labor and equipment costs and eliminating the safety hazards associated with manual inspections at that height.13 In addition, drone inspections can improve efficiency and reduce asset downtime and potential revenue loss. The list of possibilities goes on once a company becomes a digital enterprise. Successful digital transformations are clearly dependent on adoption and usage. Being already there, with assets in place, terabytes of customer information, and typically a high degree of brand permission,16 incumbents may have an advantage from the starting gate—but likely not if they keep doing things the way they’ve always done them. This means that today’s utilities face a digital transformation of their organization and business. Digitalization, on the other hand, breaks down the silos separating plant-wide (and fleet-wide) information flows. The postmortem review of user experience is not the best path to adoption success. In many locations there is also the potential to improve revenue. This requires developing processes to encourage experimentation and innovation in a continuous feedback loop. To begin, they must develop a digital transformation strategy that can be successfully embedded and scaled in the organization. Digitalization of Water means adopting a smarter approach to water management. Once they understand how customers interact with them from touchpoint to touchpoint, many utilities alter their management approach. Digital is transforming the way power & utilities companies operate. Digital Trends in Utilities. They can use digitization to streamline operations and enhance customer services. Source: SNL Energy, accessed October 30, 2018. Distributed generation and multiple channels are resulting in more convoluted and error-prone processes. Digitalization of utilities operations. After analyzing the customer journey, one company streamlined its product portfolio by 30 percent and established a customer-friendly digital channel for its core products. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Digital technologies offer unlimited potential to transform the world’s water systems, helping utilities to become more resilient, innovative, efficient, empowering them to arrive at more economically viable strategies. Technologies such as artificial intelligence (AI), Internet of Things (IoT), cloud, and blockchain can catalyze new business or operating models, help new entrants disrupt the sector, and enable incumbents to reach new levels of performance. As daunting as digital transformation programs might appear to individual companies, the potential opportunity is worth many times the attending cost and risk. This is because the methods for identifying opportunities and installing solutions have been costly and labor intensive. Follow RSS feed Like. The business horizons for utilities have traditionally been of long or medium duration, and for good reason. For those incumbents, a lot may be at stake, and even more may be possible. Adrian Booth is a principal in McKinsey’s San Francisco office, and Niko Mohr and Peter Peters are principals in the Düsseldorf office. For example, human-centered design, agile and adaptive business practices, trends shaping the future of work, crowd-sourcing, the sharing and subscription economy, and mega-platform ecosystems are all accelerating disruption and amplifying opportunities to start or grow enterprises and industries.7. Please email us at: Our series on developing corporate and business-unit strategies in a digitally disrupted world. Digitalization. Disruptive forces are transforming the electric power sector, and many power company leaders are planning their digital journeys based on the impact of these forces (figure 1). It improves design by using cross-functional teams to understand end users more deeply and meet their needs more nearly. A distribution system operator (DSO) in Europe uses an asset analytics platform that enables risk-based asset management and investment planning. We are in the age of digitalization – in all levels of the industry. Digitalization is being rapidly adopted by multiple disciplines in the public and private sectors, and is ongoing in mature disciplines such as education, healthcare, energy, manufacturing, utilities management, transportation, and infrastructure development. This can begin with quick moves to improve efficiency and expand the customer base. Many utilities have launched mobile applications for bill notification, presentment, and payment, as well as for outage management. collaboration with select social media and trusted analytics partners
Develop or acquire new technology: Participate in a technology incubator, start a venture capital organization, or consider investing in or partnering with technology companies to develop innovative products, services, or business models and test use cases. To advance to the next level in their digital transformation journey, organizations should focus their efforts on three key areas: Innovation. In order for smart utilities to benefit the community, he said, all parties need link and match cooperation. From rising costs and changing load patterns, to newly viable technologies, regulatory change, and the growing call to decarbonize, disruptive forces are transforming the industry, driving it toward a new and different future. This is the key finding of the IEA report “energy and digitalization” which was published in November 2017. Most customers prize a multichannel platform that seamlessly connects their interactions across all channels—online, mobile, call center, and local sales. Companies will roll out change management strategies and activities to shape this new culture—and those strategies will likely incorporate incentives, rewards, and performance milestones to encourage desired behaviors and practices. The water utility sector has made great strides in the uptake of digital technology. These stably support the large transactional systems that enable the day-to-day operations of the business. Digitalization and digital maturity can help power & utilities companies to answer the challenges of decarbonization and growing demand. We strive to provide individuals with disabilities equal access to our website. Some are already available today but integrating them all on one platform, accessible through multiple channels, is a goal of many power companies. Digital Utility market size by 2025 45% of utilities' investment in analytics will be used in operations and maintenance of plant and network infrastructure The digital transformation is a centerpiece of many companies’ strategy. See something interesting? Construct minimum viable changes (MVCs) that will help infuse the needed digital DNA into your organizational DNA. Its main goal was to keep the lights on without breaking the bank. Unlike in a conventional engineering approach, the teams work by an iterative test-and-learn principle. The industry is based on the use of expensive assets requiring serious investment and taking account of regulatory factors. Since 2014, utilities have been increasing their investment in digital infrastructure. Continuing what they’ve been doing for the last century is likely not going to work.
Smart meters are a requirement for the advanced credit and collections algorithms that can identify which customers will need help to avoid default. As an executive director for the Deloitte Center for Energy Solutions, Deloitte Services LP, Andrew works closely with Deloitte’s Energy, Resources & Industrials leadership to define, implement, and manage the execution of the Center strategy; develop and drive energy research initiatives; and manage the development of the Center’s eminence and thought leadership. Please use UP and DOWN arrow keys to review autocomplete results. Digital is expected to disrupt established business models by drastically affecting the scope of activities and their economics and by enabling the emergence of new players. As the transformation builds momentum, it should open deeper digital opportunities across a wide field. This information is now at the ready. Water utilities are not on the sidelines of this wave of change. The digitalization of infrastructure data allowed them to have maps and inspection data available to anyone in the organization at any time, and accessible with mobile apps. Some actions are automated through the company’s automated distribution management system (ADMS) and other automation software (see sidebar, “Digital platform enables distribution system planning”). Water utility asset management in the cloud Effortless compliance with government regulations; Project monitoring in real time; Accessibility of data to the public . Determine what is blocking or enabling the manifestation of the necessary digital traits in your organization. Ltd., for her research, editorial, and design contributions, and Rithu Thomas, assistant manager, Deloitte Support Services India Pvt. Deep Dive Digitalization beyond data aggregation: NYPA's progress The New York Power Authority set out to become the first fully-digital utility in the United States, and that goal is … Digitalization and innovation drive the emergence of a digital utilities business. Digitization is changing industry boundaries and dynamics. The DSO gained 50 percent efficiency and saved EUR 9.44 million over 10 years in capital expenditures.11. This report provides a detailed overview on how digitalization changes energy consumption in transportation, the industry and the residential sector. The power and utilities sector was traditionally where many parents or grandparents parked their savings as they got older, attracted by low volatility and stable returns. To thrive amid these challenges, the utility of the future will be a fully digital system. 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