In this paper, we explain how utilities will be better positioned to participate in the Dynamic Energy system if they focus on three key competencies: Business Model Innovation, Technology Innovation, and Cultural Innovation. The benefits of taking this three-pronged approach to innovation are clear. Doing nothing will lead to further declines in revenue and a loss of market share to third-party energy providers. Developing an innovation strategy – either company-wide or within specific teams – means opening up entirely new business lines and service models that will enhance the utility’s reputation and grow earnings.
Technology is driving change in the utility sector faster today than it has since the advent of the industry more than a century ago. For utility customers – ranging from the largest corporations to individual households – new technologies are offering different ways to interact with their utility, from paying a bill to sourcing generation.
Many utilities have only just begun to transform the customer experience. However, a growing number of utilities no longer see their customers simply as ratepayers attached to a meter, but rather, as individuals with an array of preferences. In order to maintain their role as a trusted energy advisor, it will be necessary for utilities to gain a deeper understanding of customer preferences.
Our new report discusses a horizontal approach to each customer class – commercial, small business, municipal or residential – that requires an ongoing transformation, rather than a one-time pivot in business practices. By embarking on this transformation today, utilities will be well-positioned to increase their value to customers and shareholders.