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Diversification: 38% of IOUs considering non-energy services
DIGITAL FUTUREDIGITAL FUTUREILLUMINATING ENERGY UTILITIES’
The energy and utilities industry has been slow to deploy modern technologies. Recent activity has leveraged digital advancements to
create new business efficiencies and reduce operating costs, but more needs to be done. To better understand digital technology’s impact,
we conducted a survey with Ovum to provide an overview of the industry’s evolving mindset.
Roughly one-third of our survey respondents envision major changes.
Believe the industry requires
significant restructuring
Think collaboration between
utility vendors and tech
companies is critical
Consider digital technology key to
improving customer experience
PRESENT PERSPECTIVES
SURVEY STRUCTURE
Respondents are spending money on:
Improved customer experience
Enhanced distribution networks
Wider energy distribution
Modernized transmission networks
INVESTMENT PRIORITIES
BIGGEST DRIVERS OF DIGITAL TRANSFORMATION
Respondents believe that embracing digital technology can help energy utilities succeed by eliminating operational
obstacles and facilitating better consumer engagement.
External versus internal factors:
TRANSITIONING FROM A TRADITIONAL UTILITY MODEL
A FUTURE IN COLLABORATION AND DIVERSIFICATION
With growing awareness of digital’s potential, utilities are seeking change:
Cognizant and Ovum interviewed 100 utilities companies, each with more than 100,000 customers.
Have more than 1M
customers
Have more than
200,000 customers
Operate in a deregulated
environment
17 62 6
Investor Owned
Utilities (IOUs)
Municipal utilities Co-ops Retail power
markets
Political subdivisions
47 13 21 12 7
Respondents serve 38% of US electricity consumers
TRADITIONAL
UTILITY
DISTRIBUTED
ENERGY FUTURE
Energy efficiency through
consumer collaboration
Believe significant
investments are needed
43%
Of IOUs see renewables as a
top disruptor of current
business models
50%Have proposed technology investments
in grid scale power storage, commercial
or residential storage, microgrids, and/or
virtual power plants
47%
Believe small
investments are needed
36%
Energy-use information:Dynamic pricing models:
Residential
Automated load control:
Technology empowers
energy-efficiency
measures through:
Increased
renewable-energy
sources will trigger new
business models
Innovation will unlock
future opportunities
Regulatory
norms
= External
= Internal
Aging
infrastructure
Operational
efficiency
Non-traditional
competition
GREEN
BLUE
Demand
response
Accepting status quo
customer experience
Accepting status
quo renewables
28%
16%
9%
9%
9%
15%
14%
Commercial and
industrial
© Copyright 2016, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is
subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.
To learn more, visit our energy and utility business unit at www.cognizant.com/energy-utility
Views on New Industry Models:Utilities + Digital Technology + Partners
= Business Success
TL Codex 2223
Alternate providers
will transform energy
consumption
40%
Collaborating with service
providers is beneficial
23%
Digital grid will be the
backbone of collaboration
39%
New technologies42%
Collaboration with
tech providers
31%
Collaboration with
third-party service
providers
23%
DIGITAL TECHNOLOGY: FORGING THE FUTURE OF UTILITIES
Advance your business agenda with digital technologies.
Transform utility services with smart grids, energy management
systems, and/or transmission and distribution improvements
Be the benchmark for technology-driven efficiencies
Shape a collaborative ecosystem, and aid in the creation of
newer business models
See the full report at www.cognizant.com/smarter-utilities-survey
