The energy sector is “falling behind” all other sectors in implementing data analytics despite industry leaders being keenly aware of the value of data, research has found.
The study by analytics database firm Exasol explored how companies are becoming more data-centric in their decision-making.
It found only 17.1 per cent of energy companies are implementing a data-driven strategy, even though the majority of respondents (88 per cent) said they were confident their board-level leadership had grasped the value of data.
Confidence was also high among manufacturing (71 per cent), construction and property (67 per cent) and financial services (61 per cent).
Although current implementation levels are low in the energy sector the research highlighted that 71.5 per cent of energy companies have a strategy planned to be implemented in the next two to five years.
Meanwhile 45.7 per cent of energy sector companies say having data fragmented across multiple databases is preventing them benefiting from new data analytics techniques such as predictive analytics.
Aaron Auld, chief executive of Exasol, said: “Organisations don’t become data-driven enterprises overnight – they first have to decide where to apply data analytics to meet this challenge. Manufacturers prioritise sales forecasting because it impacts decision making throughout their entire supply chain, and for energy companies future pricing decisions are paramount.
“Successful projects are always business-driven, and from this success at the core they can begin to transform their business by looking for more, and better, data to enhance that project and permeate data transformation down their value chain.”
The government announced in July that it plans to put energy customers “in control of their data” by implementing midata in the sector.
Midata is a method of electronically transferring customers’ data with consent, from a company system to a third-party intermediary using an application programming interface.
In a letter to energy suppliers in July, Ofgem interim director Philippa Pickford said access to good quality data is “essential” to have an energy retail market which works for consumers.
She added: “Not only will this support consumers in making informed choices about their energy supply but, crucially, it enables the innovation we need for an energy market in the digital economy.”