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2017 Deloitte Renewable Energy SeminarDigital Transformation November 13-15, 2017
Digital
transformation:
Cloud,
automation,
blockchain…and
beyond!
Dan Kinsella, Partner, Deloitte & Touche LLPCharlie Sanchez, Senior Manager, Deloitte & Touche LLP
Copyright © 2017 Deloitte Development LLC. All rights reserved. 3
What is Digital?
Digital is a different way of seeing and doing. Through the use of enabling technologies, digital becomes a way to improve agility and accuracy across various domains.
Definition
Creating ecosystems that transform an organization’s interactions with internal and external stakeholders based on an offering of digital services
Definition
Launching viable new offerings, products, and services that drastically improve the productivity and quality of work for partners and employees
Definition
Redesigning processes and infrastructure to provide digital capabilities that remove impediments for a digitized experience
Definition
Considering your vision, business and operating models, and ecosystems to create a holistic, end-to-end experience
Definition
Providing cutting-edge security measures to secure IP and private data by adopting and integrating numerous exponential technologies
Definition
Collecting and employing data to stay one step ahead of the competition, thus creating enhanced experiences throughout the ecosystem
Enabling Technologies
Internet of Things, sensors, cloud computing, integration middleware, cognitive engines
Enabling Technologies
Iterative processes, agile mindset, nanotechnologies, additive manufacturing
Enabling Technologies
Robotics process automation (RPA), artificial intelligence
Enabling Technologies
Microservices, augmented reality, wearables, digital twin
Enabling Technologies
Cybersecurity software, endpoint detection and response (EDR), user behavior analytics, micro-segmentation, quantum computing
Enabling Technologies
Micro-services, digital platforms, analytics and cognitive, in-memory computing,
Connectivity Innovation Automation Experience Risk management Data Intelligence
Copyright © 2017 Deloitte Development LLC. All rights reserved. 4
A digital power company continuously redefines what it offers, how it delivers, and how it operates to drive competitive differentiation, maximize profitability, and minimize enterprise risk.
Adoption of Exponential Technologies
Embracing new technologies such as mobile, cognitive, or internet of
things
Digital Mindset
Incorporating a digital mindset into the DNA of the organization
Continuous Feedback Loop
Processes in place to encourage experimentation and innovation
Copyright © 2017 Deloitte Development LLC. All rights reserved. 5
• The pace of digital change requires continuous adoption and integrationof digital technologies.
• To realize full value of digital technology adoption means rethinking how work gets done. A digital enterprise requires both new technology and new human behaviors.
• Digital transformation requires engaging the organization at multiple levels through multiple means to drive change.
Cyber risk and security is embedded CYBER
Physical devices and objects intelligently connected Delivery of the right
information to the right place at the right time
Connection of people in more relevant and valuable ways
Individual data streams are processed and analyzed with algorithms
Digital
ASSETS
PROCESS
PEOPLE ANALYTICS
A digital utility integrates across its core value, core competencies, and core operations by leveraging data as a key enabler.
The Digital Power Ecosystem
Copyright © 2017 Deloitte Development LLC. All rights reserved. 6
TECHNOLOGY INNOVATION
ANALYTICS & COGNITIVE
ENERGY/ENVIRONMENT SYSTEMS
NANOTECHNOLOGY
NETWORKS & SENSORS
ADDITIVE MANUFACTURING
AUGMENTED/VIRTUAL REALITY
ADVANCED ROBOTICS
QUANTUM COMPUTING AND
ENCRYPTION
PEOPLE/PROCESS INNOVATION
BLOCKCHAIN, ID AND TRUST, & DIGITAL CURRENCY
D-I-Y (DEMOCRATIZATION)
GAMIFICATION
MAKER-MOVEMENT
SHARING ECONOMY
PRIZE-BASED COMPETITION
CROWDSOURCING
CROWDFUNDING
MOBILE AND SOCIAL ECONOMY
Though individually powerful, truly exponential
change occurs when technology converges with work process innovation
DRONES
Exponential technologies are changing the way we do business
Copyright © 2017 Deloitte Development LLC. All rights reserved. 7
Digital Enablers
Cloud Connectivity
Cloud connectivity provides greater flexibility for the workforce, improves productivity, provides broader access to insights and creates higher efficiency at a lower cost
Artificial Intelligence/Predictive Analytics
Intelligence exhibited by machines that mimic cognitive functions to perceive its environment and take actions
Other Technologies
Other trends include: sensors, edge processing, Data COE’s, drones, augmented reality solutions/ wearables, 3-D Printing
Blockchain
A decentralized ledger of all transactions in a network aimed to increase security, reduce cost, increase transaction time, and increase transparency all while eliminating the need for a trusted third party.
Robotic Process Automation
Allows for deployment of a Digital Workforce by creating a virtual human being to manipulate existing software applications
IIoT/Industry 4.0
Allows different devices to send and receive data enabling better connectivity, data process, and analytics
Key technologies driving change in the industry
Most important digital enablers
Copyright © 2017 Deloitte Development LLC. All rights reserved. 8
What is Digital DNA?
Accelerated and Fast-Paced
Increased Information Sharing
& Democratized Decision Making
Imperfect Solutions &Continual Iteration
Constantly Innovating
Collaborative Workspace
Design
Outcome-Focused
Iterative Solutions
Disruptive, Pivoting, & Sprinting
Integrating Digital DNA
• Self-directed learning, information on-demand, easily accessible
• Enabling learners to be content creators
• Untethered, nano-sized learning
Enable Platforms and Tools
• Online communities as information providers, crowd sourcing content
• Coordinated learning development activities
• Learning through social and professional networks
Intentional Collaboration
• Accessing the right information from vast amounts of structured and unstructured knowledge
• Customized, just for them
Curated Content
• Continuous learning rollouts
• Iterative content development, optimized to new information
• Organizational sensing capabilities
Agile Processes
Creating Digital DNA
Develop Digital Change ManagementStrategy that emphasize benefits, Analytics and Custom Stakeholder Engagement
Orchestrate Change Readiness Activities and “Moments that Matter” to Shape Desired Cultural
Rewire for Differences between Digital Transformation and Legacy Business
Assess available learning platforms, learning avenues, and learner population to determine applicability of different digital learning channels
Deliver learning material by engaging key learners; and subsequently, refine the content by gathering feedback from user focus groups and social platforms for content curation
Sustain by reviewing technology sprint plan, developing learning approach, and refreshing training material
Deliver secured solutions within the digital transition rather than a afterthought or bi-product
Organizational enablement – creating a digital DNA
Copyright © 2017 Deloitte Development LLC. All rights reserved. 9
Two forces are converging to reshape the utility performance model.
Changing Business Environment
Aging infrastructure and asset base
Increasing performance/cost expectations
Changing customer expectations
Growth of renewable energy alternatives
Operating Model
Powerful New Technologies
Changing regulatory expectations
How do we incorporate digital?
How we stagger digital changes?
What is priority vs. nice to have?
Low cost Sensors
Factory of the Future
IOT AI
CloudAnalytics
Access to Cheaper Technology
Improved Connectivity
Powerful Algorithms
Cyber Risk Mgmt
Why digital matters for power companies
Copyright © 2017 Deloitte Development LLC. All rights reserved. 10
Corporate Services
Customer Management
Transmission &
Distribution
Enterprise
Solution
GenerationCommercial Optimization
Operations Optimization
Use Cases
▪ Increasing Effective Capacity
▪ Minimizing Bid-offer Spreads
▪ Scheduling Optimization
▪ Dynamic Fleet Strategies
▪ Risk Strategies
Asset Performance
Operations Optimization
Power Optimization
Energy Optimization
Customer Experience
Back Office Optimization
Cybersecurity Controls
Asset Performance
▪ DG Integration
▪ Early Failure Detection
▪ Circuit Profitability
▪ Workforce Optimization Intelligent Network Control (E.G., Voltage)
▪ Outage Response
▪ Local Peak Shaving
▪ Early Failure Detection
▪ Fuel Optimization
▪ Inventory Management
▪ Plant/Asset Profitability
▪ Origination Strategies
▪ Inventory And Materials Deployment Optimization
▪ Tree Trimming Optimization
▪ Outage Reporting/Updates
▪ Customer Self Service
▪ Real Time Energy Usage
▪ Omni-Channel Customer Experience
▪ Self Generation/Micro-grid/Blockchain
▪ Smart/Connected Home
▪ Smart/Connected Business
▪ Financial Close Optimization (RPA)
▪ Back Office Optimization (RPA)
▪ Analytics and IT Cybersecurity
▪ Analytics and OT Cybersecurity
▪ Analytics and AI Decision Making
Opportunities across the Power Market Lifecycle
Copyright © 2017 Deloitte Development LLC. All rights reserved. 11
Day in the Life Scenarios
The Digital Future
Copyright © 2017 Deloitte Development LLC. All rights reserved. 12
Copyright © 2017 Deloitte Development LLC. All rights reserved. 13
Copyright © 2017 Deloitte Development LLC. All rights reserved. 14
This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering
business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for
any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional
advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.
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Copyright © 2017 Deloitte Development LLC. All rights reserved.