Energy & Utility

ITTS
Cloud Consulting in E&U Industry
 Unifying force in 2019 in E&U industry is not hardware, but data

 The role that utilities will play in the energy landscape will have
less to do with installing devices, but everything to do with
connecting them

 Energy and utilities companies are in a unique position to collect

huge amounts of customer data, which they can then use to
optimize grid operations and customer experiences
 Cloud Consulting in E&U Industry
 A study of 100 energy and utilities companies in the United States
reports that almost every utility in the U.S. (97%) uses cloud-based
applications already or plans to in the future
 89% of executives surveyed said they’ll send meter data management
(MDM) information to the cloud in the next three years
 69% plan to use cloud for their customer information systems within
three years
 Rise of smart metering and smart networks will drive a requirement for
greater processing power that companies will struggle to meet on
premises
 High Processing Power: near real-time decisions from customer data
 By 2019, cloud services will make up half of the IT portfolio for over 60%
of utilities
 Legacy Modernization :The 3 P’s

 People: Developers are key drivers of enterprise innovation. To ensure that there
are processes that enable them to work productively and effectively should be
the priority of any legacy modernization project
 Process: To build better applications and to build them faster, modern
development teams are changing methodology such as DevOps and Agile
Software Development
 Platform: legacy applications are difficult to lift onto modern data and software
platforms because they are highly critical to day-to-day operations such as in
banks or airlines that run on mainframes
 Legacy Modernization in E&U Industry
• IT Modernization will vary for different types
of utilities
• Many utility operations, such as asset
management, can be streamlined through
automation
• Utility executives and managers can make
better decisions when they get insights from
artificial-intelligence (AI) applications that
crunch large data sets
• Safety and regulatory-compliance programs
can be reinforced with advanced systems for
directing employees and collecting their
observations
• Additional opportunities can be found in
customer operations
• Utilities are replicating the sophisticated
customer-service practices of digital-native
companies. The most ambitious are looking
at how to use virtual agents, AI, and “one-
click” mobile experiences to help customers
resolve their concerns quickly and easily
 Legacy Modernization in E&U Industry: The Need
• Reduction in operating expenses of up to 25 percent
• Operational benefits in the form of lower operating expenditures, greater capital efficiency, extended asset
• lifetimes, and safer operations
• Modernization can translate into lower revenue requirements or higher profits
• Performance gains of 20 to 40 percent in areas such as safety, reliability, customer satisfaction, and regulatory compliance are also achievable
• Improved customer service with a better understanding of customer needs, a superior customer experience, and increased reliability
• Utilities were early adopters of large-scale software packages such as customer-information systems, distribution-management systems, asset-
management systems, and outage-management systems.
• Better employee engagement, since less time is wasted in lower-value tasks, and travel and schedules are optimized
• They invested in solutions that offer maximum stability and performance and then customized them as their requirements outgrew the systems’
standard features
• Advanced software and visualization tools can help in using new data from transmission and distribution system devices for enhanced, real-time
operations and control
• Advanced software, models, and visualization tools use high-speed data from PMUs and other sensors to provide robust “real-time” monitoring,
control, detection, and mitigation of system conditions
• Many o large-scale software systems have now been in place for decades. Some utilities are running several systems of the same type side by side, after
merging with or acquiring companies that had their own legacy systems.
• As a result, the IT architectures of utilities have become steadily bigger, more cumbersome, and harder to maintain, with millions of lines of custom
code written in obsolescent programming languages, such as COBOL, by developers who have long since retired or moved on to other jobs.
 Legacy Modernization in E&U Industry: Use of Advanced Analytics

• Industry leaders are using advanced analytics in

increasingly innovative and unconventional ways
• Automatic inspection of power lines and vegetation
management using drones, image processing, and
LIDAR (light detection and ranging—a remote-
sensing method using pulsed lasers)
• Voice analytics applied to call-center recordings to
gain deeper insight into customer interactions
• and behaviors
• HR analytics that raise employee productivity,
reduce attrition, optimize training spend, and
provide a fact
• base for succession planning
• Machine learning for predictive maintenance (for
instance, anticipating the likelihood of breaker
failures
• Health and safety predictive models that identify
which assets, teams, or individuals are most
vulnerable
• to incidents and suggest levers to reduce risk
 IT M&A in E&U Industry

 In 2018, it was a promising year for

Energy sector M&A transactions
 Market continues to stabilize and
companies increasingly position
themselves for greater earnings
growth
 Appetite for M&A deals in the
Utilities sector was expected to rise
by 2 percent in 2018
 Energy companies will continue to
realize that they are making money,
paying down debt and getting
healthier - and are now in a much
better position to pursue
transactions
 Q1 2018 as deal value rose about 11
percent to US$184 billion, despite
an 18-percent drop in deal volume
to 484. The average size of deals in
Q1 2018 (US$380 million) is now the
highest in 10 years by a significant
margin
 Role of Digital Transformation in M&A
 Digital transformation remains a key component of M&A
 Previous M&A activity have seen new technologies complement existing offerings and gain market share in
new geographic markets
 The execution of a merger, divestiture, or a joint venture process offers new transformative business model
opportunities for organizations if they can leverage the capabilities of a digital supply network across their
customers, suppliers, and logistics providers
 Business processes decisions on how the new organization will buy, sell, and move its products with a larger
set of supply chain trading partners
 Digital transformation means a range of things pertaining to digitizing the supply chain
 to drive better customer engagement
 automating legacy processes that facilitate enhanced supplier
 logistics provider relationships
 Business Process Re-engineering
 Waste Elimination & Process
Improvement
Legacy processes can leave room for a lot of waste --
reams of paper that cannot be efficiently utilized. By
reducing the need for hard-copy solutions, companies
will see an increase in customer input and a decrease in
overall waste
 Increased Standardization
Standardization is important to keeping companies
focused and efficient, and business reengineering
focuses on process improvement. By standardizing
processes like forms, workflow processes, and data
storage, you make things more efficient for your
employees and customers
 Reduced Operating Costs
Automating processes reduces the need for
extensive storage capacity and unnecessary employees --
eliminating monetary cost and improving on overall
business process