The traditional power and utility sector is offering an increasingly attractive environment for disruptive forces through opportunities in electrification, decarbonization, and decentralization. This trend report by Deloitte explores the impact of digital transformation and ways in which the industry is embracing digital innovation illuminating the shifting mentality that executives have from exploring a digital pathway to becoming a digitally transformed organization. Deloitte also identifies the new challenges and new opportunities that are reshaping the power and utility organizations.
- Changes in fuel prices and availability are the biggest force in shifting the electricity market, followed by (2) an influx in new solar energy and (3) an increased threat of cyber attacks.
- Digital technologies can act as catalysts, disruptors or enablers ushering in new business and operation models, opening new doors to the market, and enabling new levels of performance.
I. The future looks bright
- The customers of the future seek a personalized AI and data-driven experience with their power and utilities use, implementing smart home platforms that can be accessed through mobile devices or smart home speakers.
- The power company employee of the future is tech-savvy, collaborating with machines and AI and adapting to highly complex work enabled by digital experiences.
- The power company of the futures assets includes smarter equipment design, autonomous operations, and maintenance, and connected assets and grid optimization analytics enabling reduced operations and maintenance costs, improved system efficiency, reliability and resiliency, among other benefits.
- Digital DNA traits, such as agility, innovation, and higher collaboration, are integral cultural components of the utility and essential behavioral changes for the way teams and employees interact.
- Power companies top digital priorities for the next three to five years include (1) driving overall productivity and profitability; (2) improve the reliability; and (3) create a more efficiently run business with the use of data and analytics.
II. Digital pathway to the future
- Most power companies are still in the awareness-building and exploration phases of entering the digital category.
- Innovation, culture and digital foundries will help advance power companies through their digital formation journey.
- A digital mindset incorporated into a successful organizations DNA will define the way a company operates, behaves and is organized (from physical space to capabilities).
- A Digital Innovation Model is designed to triage and socialize ideas and proposed changes across an organization, leading to a successful transformation cycle.
- Surveyed companies say the top digital technology capability that they are currently exploring is Distributed Energy Resource Management (DERM) solutions, which will enhance their reliability and resiliency.
III. Getting started
- A digital transformation is a substantial undertaking and long-term path that requires a sequenced road map to track milestones and progress.
- An innovation process will be critical in rapidly designing, testing and iterating each concept.
- Technology acquisition and cultural transformations put the people and equipment in place to instill enterprise-wide organizational, operational and behavioral changes.
I read the article mentioned above (https://www2.deloitte.com/insights/us/en/industry/power-and-utilities/digital-transformation-utility-of-the-future.html) and thought it was interesting. While I am not offering an endorsement of a strategy, tactics, thoughts, service nor a company or author, the information was intellectually stimulating and thoughtful and worth a review.
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