We hear so much about the need for digital transformation in order to deliver the energy transition, but for utilities, what does that really mean?
Where do we start?
The Oxford Dictionary defines digitalisation as “the adaptation of a system, process etc to be operated with the use of computers and the internet.”
OK, that sounds pretty straightforward. But what happens when you don’t just have one or two systems and processes, but instead hundreds or perhaps thousands? Many of which are interconnected? Most of which are critical? Where on earth do you start to access the power of digitalisation?
For me, it all comes down to value.
Grabbing the value
Digitalisation is going on everywhere, not just in our work lives.
Many of us are digitalising outside of work – from wearables to track our health and activity, to smart homes which heat and light based on our location and the smart phone has revolutionised our access to information and entertainment on the go.
As consumers, we are used to selecting a digital solution based on its key value in our lives. And the same can be said for how we should select a digital solution at work – show me the value.
One solution, multiple values
And perhaps that’s the challenge.
On the journey to delivering the energy transition, we are all starting from a different place, have a different challenge to solve and value different things.
For example, some utilities operate critical assets in remote and difficult to reach locations and can only determine their status by being on site. They would likely benefit from scalable, digital monitoring solutions that enable visibility without having to physically visit. The value? Confidence that you know the state of your assets any time, anywhere.
Other utilities need to connect renewables to their already busy networks and just don’t have the capacity to meet the generator’s needs in time. They would benefit from prognostic analytics which could tell them how much extra headroom they could make available without degrading the network equipment. The value? Quick and early connection of renewable energy and acceleration of the energy transition.
I could provide another 50 examples of how a digital solution could provide value in certain circumstances and I’m sure you can think of 50 more. But the interesting thing for me is that in almost every case, there’s not just one area of value but many. It’s like buying a chocolate bar and getting 50% extra free!
A hidden bonus
I bought my smart speaker so that I could listen to music in the kitchen whilst cooking dinner. Once installed and in use, I discovered that I could add to my grocery list just by voice command. So, as I cooked and used up an ingredient, I just told my smart speaker to add it to the shopping list. No running out of onions ever again!
I certainly didn’t buy the solution for that reason but it’s a strong bonus value.
And it’s the same for the examples above.
The organisation that implements a digital solution to remotely monitor their assets gets the confidence that all is well from afar. But they also reduce their carbon footprint by not having to physically visit their assets so often. And they reduce the cost of travel by taking fewer journeys. And they free up that person to do another more value adding task. And they reduce safety risk by having fewer people on the road.
The company that uses prognostic analytics to connect renewable generation more quickly is accelerating the transition to clean energy. And they also delight their customers by providing earlier connection dates. And they reduce the cost of network investment by pinpointing only what needs to be upgraded. And, by connecting renewable energy earlier, they lower the overall cost of energy for consumers.
There are bonus values all round!
Perhaps not what their original buying case was based on, but important nonetheless.
Bringing it all together
So, although digitalisation can sound super complex it’s simply about value and you can start your digital transformation right now by selecting what is most valuable to you and your customers. But once you’ve done that, watch how the added, unexpected bonus value rolls in.
Here at Hitachi Energy we are seeing our customers realise that added value every day across the world – and if you want to talk about how that could work for you, give us a shout.