As the call for a sustainable and clean energy future reaches a fever pitch, Utilities across the globe are finding themselves at the drawing board, busy setting their gamelan, go-to-market strategies, and arranging the operating models. Utilities are not shying away from restructuring to carve out new companies and new business units, setting up strategic partnerships, bringing new propositions to the market with robust investments in digital technologies. The traditional commodity business model calls for a change. And, of course, COVID-19 is acting as an accelerator to unleash the new business models.
One may wonder what are the new business models that are emerging and why streamlining those are important. Mainly four reasons can be attributed.
1. Convergence of industry boundaries with a proliferation of non-utilities that are bringing a host of unique offerings to the table.
2. New Regulations are being laid out with sustainability and energy efficiency being the buzzwords
3. Adoption of Technology – Rapid consumerization of the technology and the utilities’ wholehearted embracing of adopting renewable energy solutions are leading the way.
4. Portfolio Changes- last but not least, the new-age energy service providers are turning consumers to prosumers and catering to their demands
All these factors are shaping up the ‘Energy Value Ecosystem’ where utilities need to discover the value at the intersection of customers and partners.
Looking closely, there are 4 key levers of the Energy Value Ecosystem which help utilities create a ‘Connected Customer’ experience, the levers are
- Digital Empowered Consumer
- Increasing Efficiency through IT OT integration
- Reliability and Sustainability
- Situational awareness through IT OT convergence.
Cutting across industries, COVID-19 left deep repercussions. For utilities, this acted as an accelerator to drive digital transformation and push newer boundaries. Looking closely, COVID-19 has impacted 5 major dimensions of the Utility
- Average demand destruction
- Operational Continuity with remote working ushering in widespread digital adoption
- The financial strains that are bogging down households across the globe
- Supply chain constraints related issues are putting a dent in Capital Projects
- Customers are anxious about their ability to pay bills. This has also created a significant opportunity for the utility to leverage the digital and stand beside the consumer as a partner in crisis.
All the above factors are forcing the utilities to introspect and define their new roles as well as zeroing in on new revenue streams. I try to throw light on both the points in my next blog post.
Tata Consultancy Services (TCS) is proud to host a session at SAP Global Partner Utility Week 2020, November 20, 4-6.30 PM CET
Here is your chance to listen to the industry captains speaking on how to ‘ Leverage Innovative Technologies for Driving New Business Streams in Utilities’
Register today and fasten your seatbelts for a power-packed session!