Utilities are the essential foundations of any economy. However, they often suffer from a lack of investment, ageing infrastructure and therefore carry a maintenance burden. Government ownership and regulation has in many cases prevented the industry from being progressive and the sector’s business strategies and operating models are too traditional and inwardly focused.
New technology and online services mean utilities no longer have sole access to their customers and, in many cases, have not been seen as serving their customers’ interests. This means that utilities are operating on average 10 years behind where they should be. The power industry is also at a tipping point as traditional fossil fuels give way to renewable energy.
The VCI approach to utility transformation
We adopt a strategy-first approach which incorporates the opportunities offered by new digital technologies.
We collaborate with utilities to drive an outside-in review in conjunction with a complete evaluation of technology, the approaches to innovation and how these can both add significant value in redesigning the business.
It’s also important to reduce the funding spent on the large ERP-centric programs and replace these with more industrial-internet-of-things capabilities, sensing and data, and analytics initiatives with the goal of aligning the organisation with how consumers are thinking and interacting with other online service providers.