Utilities are facing challenges in their transformation journey. They need to overcome siloed initiatives by integrating and orchestrating change across the organization. They need to strengthen weak road maps, which are responsible for the transformation deadlock. They must close their talent gap and overcome their inability to scale up innovation. Finally, they need to introduce new sets of key performance indicators (KPIs). This journey is neither easy nor painless, but if they will do it right, they will deliver value to customers, employees, shareholders, and society.
2019 Utilities Predictions
The top 10 predictions for worldwide utilities for 2019 are:
- Prediction 1: Digital determination. By 2022, 20% of digitally determined utilities’ revenues will come from new products and services.
- Prediction 2: Distributed generation and storage. By 2021, 55% of utilities will derive 20% of gross margin on average from combined distributed generation and storage packages for prosumers.
- Prediction 3: Edge analytics. By 2020, 65% of power, gas, and water companies will have invested in edge analytics/computing as they strive for operational excellence and the best optimization of their assets.
- Prediction 4: Flexibility. By 2023, 65% of electricity companies will have invested in digital technologies and platforms to support flexibility services, thereby activating a load potential of up to 35% of installed capacity.
- Prediction 5: Customer experience (CX). In 2019, utilities/energy retailers will double their investments in artificial intelligence (AI) to improve convenience, customization, and control for clients, thus enhancing customer experience.
- Prediction 6: Connected assets. By 2023, utilities will have digitally connected 75% of their critical assets to predict and prevent equipment failure and prescribe best maintenance options to optimize and extend asset life cycles.
- Prediction 7: Future of Work (FoW). By 2021, 35% of utility CEOs will have access to an intelligent personal assistant at work.
- Prediction 8: Platforms. By 2022, 55% of utilities will use a core digital platform to automate, optimize, and orchestrate assets, business processes, customers, and employees, thus improving efficiency and business outcomes.
- Prediction 9: Revenue protection. By 2020, artificial intelligence applied to revenue protection will enable water, gas, and electricity companies to reduce revenue losses by 70%.
- Prediction 10: Security. In 2020, managing the risk of operational technology/IT cyberattacks and data privacy compliance will cost utilities an average of 1% of annual turnover.
Learn more about the 2019 Utilities Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Utilities 2019 Predictions web conference on-demand.
Jean-François Segalotto, Research Manager, EMEA