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Digital Transformation In The Utilities Sector

It's been a long road, but it appears they are finally catching up

13Dec

It is easy to take for granted the technology we have at our disposal. We flick a switch and the lights go on, we turn on the tap and clean water comes out. We don’t have to worry about gas for cooking.

But today, the utilities industry is under pressure to simultaneously reduce costs and improve operational performance.

The utilities sector has proven a laggard when it comes digital innovations in comparison to industries like retail, banking or insurance. However, energy is now getting on the digital bandwagon too, with online customer engagement, smart sensors, and better use of analytics.

Digital technology gives utility companies the opportunity to collect much richer, customer level data, analyze it for service improvements, and add new services to change the way customers buy their products.

Smart technology will be used to monitor home energy usage, to trigger alerts when previously established maximum limits are being reached, and to offer ‘time of use’ tariffs that reward consumers for shifting demand from peak times.

Electricity is the most versatile and widely used form of energy and global demand is growing continuously. Smart grids manage the electricity demand in sustainable, reliable and economic manner.

Advantages of Digital Transformation:

  • Digital makes customer self-service easy.
  • Digitally engaged customers trust their utilities.
  • Customer care, provided through digital technology, offers utilities both cost-to-serve efficiencies and improved customer intimacy.
  • Digital technology brings the capability to provide more accurate billing and payment processing, as well as faster response times for changing addresses and bills, removing and adding services, and many other functions
  • Using Mobile as a primary customer engagement channel for tips and alerts
  • Predictive maintenance with outage maps and real time alerts to service engineer helps reduce the downtime and costs
  • Smart meters allows utilities organizations to inform their customers about the energy consumption, tailor products and services to their customers while achieving significant operational efficiencies at the same time

An example of digital being successfully applied in utilities is Meridian, a New Zealand energy company, who have launched PowerShop, an online energy retail market place that gives customers choice and control over how much power they buy and use. This helped Meridian attract online consumers and extend its reach of core retail offering.

Others include Google’s Nest, an IoT enabled energy efficiency management, gives details about consumption patterns and better control. Thames Water, UK’s largest provider of water, also uses digital for remote asset monitoring to anticipate equipment failures and respond in near real time.

Big Data analytics and actionable intelligence is a particularly important development, giving competitive advantage by gained efficiency.

IBM Watson with its cognitive computing power has helped utilities identify trends though pattern analysis, and predict which assets or pieces of equipment are most likely to cause points of failure.

Today more than ever, utilities companies are asking: 'How can we be competitive in this digital world?' People - whether they are customers, citizens or employees - increasingly expect a simple, fast, and seamless experience. 

Sources

https://simplified-analytics.blogspot.in/2016/12/digital-transformation-in-utilities.html

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