Why The Future of the Energy Industry Relies on Digitalisation
Energy sectors around the world are facing unprecedented transformation due to a number of factors including resource scarcity, urban density, changing regulations, the rising cost of living, and disruptive new technologies such as the Internet of Things (IoT). To ensure company resilience, we believe that it is essential for energy providers to embrace digitalisation, or risk being left behind in an increasingly competitive marketplace.
Unsurprisingly, the past few years have also resulted in prolonged affordability issues for consumers. A 2021 customer experience survey by KPMG (which included 3,000 Australian consumers) revealed that the energy sector had a brand loyalty score in the bottom 25%, highlighting the importance of implementing customer-centric strategies. Energy providers must be able to provide personalised and flexible digital customer experiences, while simultaneously ensuring data security and service efficiency.
Achieving this might seem challenging for long-established energy companies with traditional operating models, but delaying technology adoption has its own associated risks. We recommend consulting an experienced financial advisory to create a carefully planned implementation roadmap, both to alleviate any uncertainty and to streamline the digitalisation process. Any digital transformation needs to be deeply rooted in an organisation’s strategy and objectives, incorporating stakeholders and existing business processes, to ensure lasting success.
The benefits of digitalisation for energy providers
In 2017, the inaugural Digitalisation & Energy report from the International Energy Agency (IEA) found that the pace of investment in digitalisation by the global energy sector has increased by 20% annually since 2014. The IEA concluded that the electricity sector was at the centre of this transformation, as providers focus on enabling smart demand response through digital technologies to meet increased electricity demand. Smart demand response also enables electricity companies to begin integrating variable renewable energy sources into existing grids, creating a more sustainable system overall.
Digitalisation has myriad benefits for energy companies, particularly in terms of adaptability, task automation, system integration, and informed decision-making. Implementing the latest digital performance management and business intelligence tools allows for real-time analysis of your most important KPIs, providing valuable insight into everything from product performance to demand data and margins.
Furthermore, digitalisation allows energy providers to engage in predictive forecasting and planning, utilising existing data to make more informed business decisions. When asked to consider the future Australian energy landscape of 2030, experts pinpointed the importance of data analysis to increased demand flexibility and energy efficiency. However, this reliance on data also means that it will be essential to invest in cybersecurity measures, in order to protect the privacy and financial wellbeing of consumers.
Beginning your digital transformation
The team at Bluetree have experience working with several ASX listed companies in the energy sector, perfectly positioning us to understand the challenges you face. We can guide organisations of all sizes through the process of digitalisation, helping energy providers anticipate, plan for, and manage market disruption and regulatory change.
Bluetree Solutions offers a complete range of industry-focused services designed to meet your unique and dynamic needs. Our trained technology experts work collaboratively to implement innovative, customised solutions to drive company revenue growth and improve operational processes. If you would prefer a rapid-deployment solution which reduces implementation costs, our series of Bluepacks are also available, designed as modular building blocks to kickstart your digital transformation.
Are you an energy provider considering digitalisation? Contact Bluetree today to take advantage of our expertise and passion for innovation.