The Utilities market has become extremely competitive. While offerings are mostly the same, the biggest differentiators are customer experience and added value. This means that Utility companies have to work harder to keep their clients happy. Even more challenging, is the fact that Utilities are expected to do this within a small margin.
In this blog, we explain how SAP for Utilities in the gas, water and power sector, as well as the expertise of an SAP provider like Soltius, can help organizations take advantage of the opportunities that digital transformation is offering.
Recognising the need to change
The first step is to recognise that the current business model and processes have to change if your organisation is to succeed.
By adopting SAP solutions, with the help of an expert, your organisation can look forward to overcoming productivity issues by replacing legacy systems that cannot keep pace with the transformation. For instance, Utility companies need greater visibility across disparate systems and robust cybersecurity solutions to handle the large quantities of data.
By making these changes, issues like double handling, data risk and complaints which often lead to a loss in hours and revenue, will be minimised.
New processes enabling digital transformation
Once your organisation has recognised the need for change, the introduction of new business models and processes will also become necessary.
For instance, today’s digital-savvy consumers expect a reliable and affordable energy supply with maximum convenience so it’s important to provide them with an omni-channel retail experience.
A new set of demand and supply management services will also need to be introduced to help shift consumption and save energy.
The need for smart and efficient distribution is growing so excellence in grid building, operations and maintenance is key – especially in driving profitability.
To support this development in operations and processes, a few tech trends should be considered. These include Artificial Intelligence and Machine Learning which help identify consumption behaviour and the prevention of asset malfunctions.
Cloud computing will provide your organization with the fastest path to new business models and software upgrades.
The Internet of Things can help create new value such as improved customer engagement and smart grid optimization.
Serving the digital customer
Providing an integrated and online customer experience will future proof your Utility company.
Your technology platform and applications should allow all databases to be integrated for a seamless experience. By creating a single view of customers, you gain a better understanding of their expectations.
From this data, the right technology can help you develop personalized messages that are more relevant to individual customers, leading to a better customer relationship.
Your digital customer will also create the need for your marketing and IT departments to be more closely aligned so that the user experience is optimised.
Also, because change is rapid, it’s important to adopt flexible technology and systems that adapt to customer and market needs.
When high SAP performance delivers rewards
SAP performance benchmarking shows that compared with average performers, top performers achieve greater market share and return on assets, as well as higher margins. Annual savings are also higher when using an integrated procurement system for clean energy.
But, to avoid costly and unnecessary system changes that can cause major disruption to your operations; make the most of services provided by an SAP consultancy like Soltius, a trusted pair of hands to New Zealand’s largest utilities companies. For many years we have delivered projects for SAP industry modules as well as end-to-end ERP solutions. Our expertise will help you transform your Utilities business into a better positioned competitor ready to harness the many opportunities provided by digitization and the forth industrial revolution.