How Can the Opportunities Offered by the Digital Utility Strengthen the Utility Sector
The world is evolving. Various disruptive forces are forcing the traditional energy utility business model to shift and permanently modify the way they create value and prosper. The future-ready digital utility series delves into the difficulties and opportunities that exist throughout the value chain and the pragmatic steps that will define the utility industry’s transition to the next energy paradigm.
As a result of the digital era, today’s utility firms are experiencing unprecedented levels of disruption throughout the energy value chain. Many utilities perceive the digital revolution as a menace to their business model, but those who can shift ahead of the curve will discover tremendous opportunities. Data gathering and transmission are increasing at an exponential rate, posing both digital risks and opportunities. The online channel is becoming more competitive for customers, and the Internet of Things vows new product and management options.
The utility industry is one of the industries that is confronting significant challenges while also offering tremendous opportunities for digital innovation and transformation. Utility providers must come up with completely new solutions to run their business successfully.
New Opportunities and Challenges
Utilities can commence with more extensive digital objectives based on the experience of other businesses. Utility industry can devise a plan for improvements in:
- Customer experience
- Compliance and
- Revenue management
Accelerating Productivity and Efficiency
Throughout the value chain, there are digital opportunities to streamline operations and boost flexibility.
“According to a study, digital optimization can increase profits by 20 percent to 30 percent.”
The utility industry can recognize the potential of digital opportunities through:
- Smart meters and the smart grid
- Digital productivity tools for personnel
- Back-office process automation
Employee mobile enablement is swiftly gaining traction as a strong productivity accelerator. Smartphones offer the platform which can be used by the grid firms to digitize the essential operations of work management effectively.
The utility industry is struggling to retain its customers and combat emerging threats in distributed generation. Utilities can boost customer satisfaction while lowering costs by digitizing the customer experience and it also offers the potential to boost revenue in many areas.
Customers prefer a multichannel platform that unites all of their interactions in one centralized location. Enhanced customer processes are also more cost-effective for utilities. Furthermore, a holistic multichannel platform is required for profitable customer behavior analysis to facilitate the entire customer experience.
Employing advanced analytics can improve service quality, reduce costs, and build and retain customer connections. Utility providers can enhance up-selling and cross-selling while also boosting the adoption of its digital channel by employing customer data analytics to execute process improvements.
Utilities must reform their operations to reap the benefits offered by digital opportunities. To start with, the utility providers must devise a digital transformation strategy that can be implemented and scaled throughout the organization. By enhancing workflows, increasing consumer awareness, empowering employees, strengthening security, and limiting risks, digital utilities stand to enjoy significant benefits.