There is a pattern in the utility industry of rising service prices but stagnating growth. For the most part, this is because of the necessity to upgrade and secure the network's old infrastructure.
FREMONT, CA: There is a pattern of increasing service prices but stagnant growth in the utility industry. This is attributable primarily to the need to upgrade the old infrastructure, digitize, and protect the network.
Despite this growing pressure, 2019 prices increased relatively marginally. Low natural gas prices and falling wind and solar costs are affected as wholesale power prices continue to fall.
Many state and local governments have increased their support for clean energy during the past year. Among the measures they've taken is improving renewable portfolio standards.
In 2019, the industry was hit particularly hard by natural disasters, continuing a pattern that could highlight the need for better utility planning and investment in transmission and distribution networks.
Increased and more focused cyberattacks on the power infrastructure are occurring. This necessitates that firms continue to bolster their defenses.
Decarbonization and sustainable energy are becoming essential priorities for businesses. Some of them may have hesitated in the past, but today the vast majority are moving swiftly to take advantage of expanding opportunities to meet growing customer interest in clean energy and new methods to manage and control their use and costs.
The digital change in the utility sector—New business models
A more robust approach to utilizing technologies to address utilities' current difficulties is required to achieve the digital transformation's long-term success.
Interruptions, data, and decarbonization will alter the industry's future. The options for offering value to consumers extend beyond the centralized paradigm of "giving a resource via a pipe or wire."
Customer experience and sales models
The business strategy is nearly exclusively customer-centric. Moreover, it is a crucial component in the digital transformation of utilities during the Digital Renaissance.
From smart meters to smart cities, the term smart encompasses all digital characteristics in the utility industry and the service economy (where utilities are also offered).
Today, emphasis is placed on delivering the ideal customer experience. Utilities must be able to examine business models in addition to process optimization.
Get acquainted with the business workforce
Smart businesses will flip the traditional workplace on its head! Everything can significantly differ from the present.
Some long-standing skills in energy and utilities are becoming scarce due to the aging of the workforce and generations, as incoming digital professionals bring new abilities and new expectations for how work should be performed.
This new workforce will continue to evolve, bringing humans and machines together in a cycle to collaborate in new positions and models. Autonomous technologies, robotic process automation, artificial intelligence, and total process automation enable employees to spend less time on mundane jobs and more time on activities that add value to the firm.
To make the most of tomorrow's chances, it is essential to understand how companies will enhance the skills of their growing staff.