Intelligent functions that provide consumers with more accurate and helpful information are becoming more widely accessible through next generation IT and the implementation of smart gas, electricity and water meters. This coupled with the rollout of smart metering means a significant step change in the way energy and water businesses need to operate.
The speed and efficiency of the smart services ramp-up creates an environment where “dumb market” services must ramp down. The demand for dumb market services will reduce to a point where it is no longer efficient to continue to operate these services, a “tipping point” where by the unit costs are no longer viable.
This creates a major challenge for the supply businesses that incorporates both cost-to-serve as well as service quality. It is imperative that one customer is not perceived to be receiving either preferential or worse service than another. Balancing this challenge with ensuring the full benefit of smart data is critical. To understand this it is essential to consider how the industry itself needs to change in conjunction with each supplier’s specific operations.
It is clear that supply businesses are planning ahead. They are considering the changes needed for the request and collection of meter readings, for example, how key customer-related processes need to change, the number of engineers necessary to complete installs, all focusing on changes to the “smart world” services. In conjunction with this, consideration must also be given to how existing services will reduce in demand and adapt to operate in parallel.
To address this, understanding the data origins and volumes that determine the tipping point, clarifying the continued service demands and implementing the appropriate service integration solutions are essential.
Business rules and service targets need to be adapted. Smart data advantage is integral to ongoing energy industry efficiency. It provides significant opportunities to streamline or enhance the settlements and dispute process. Cost savings can be achieved by improving industry-specific data items such as the gross correction factor.
The cost to serve and consumer experience remain at the core of service delivery throughout smart market ramp up, dumb market ramp down, and the business changes through the Tipping Point. HP is working with suppliers providing solutions with the flexibility and agility required to manage the varied service changes while maintaining high performance customer delivery.