Understanding the value of customer data
Organisations are beginning to understand that respectful handling of customer data can offer a competitive advantage through increased customer trust, leading to greater loyalty. This forces companies to be smarter about the data they process and store, and how it is used to enhance the services provided to customers.
The energy and water industry has been slow to adopt data management into its business models because of the sheer volume of data and the complexity of fragmentation within the market. Many utilities are now in the early stages of innovating around the management and use of data, while others have accelerated, launching digital factories and building in-house applications to tap into the potential of automation and analytics.
For example, international energy company Uniper is leveraging cloud computing, automation, and multichannel communication to transform its back-office systems.
Big data analytics
Big data has provided utility companies with the opportunity to reinvent themselves. Innovative organisations are implementing technology-driven approaches and beginning to leverage big data through the advent of cloud computing.
These organisations are applying smart technology to their operations, including sensors, cloud computing technologies, wireless, power planning, and network communication. These produce large data sets which get collected over time. For example, a utility company serving one million households, using smart meters and power, can collect around three petabytes of data every 15 minutes.
Big data allows efficient and accurate forecasting. Data analytics helps accurately forecast energy consumption, which plays a pivotal role in generation and consequently, dynamic pricing. Similarly, it plays an important role in forecasting power generation, especially for renewable energy sources such as solar and wind, both of which are affected by the weather. This all gets taken into account by doing predictive analysis of all the data taken from weather systems.
Unlocking the potential of IoT
The rollout of smart meters into people’s homes has enabled the advent of the Internet of Things, and marks the first foray of the concept into consumers’ consciousness. IoT is going to have a big impact on consumers and utilities alike.
The impact of smart meters and IoT are twofold. Most obviously, they enable consumers to remotely track and manage their energy usage, save money, and better manage their overall consumption, but there are also positive environmental benefits.
A barrier to widespread smart devices today is the fact that many households do not have a single smart home device, making the full promise of connected home intelligence almost redundant.
Working collectively, homes and devices get smarter with whole-home energy data and the integration of additional data sources. Weather data sets, integration with data from connected devices, and real-time whole-home energy data — combined with intelligent algorithms — can drive predictive energy analytics that deliver home and appliance insights and automation that can provide substantial savings and value to consumers.
Utilities in a new age of data privacy
The complexity of the utilities space is perhaps not surprising, in that companies in highly regulated industries have been more cautious about their use of data. Consumer trust towards data protection is at a fairly low level, and more and more businesses are being scrutinised over how data is stored, collected and used – with public data breaches receiving a consistent stream of media attention.
Failing to manage the impact of a data loss incident will create a flurry of headlines and can incur a substantial regulatory fine, but just as damaging to the company is the impact on the brand’s value, reputation and consumer trust.
To conclude, there are an infinite number of possible ways that technology can disrupt energy and water companies – and not just now, but on a continuous basis. However, with any implementation of technology comes parallel concerns of data privacy. It will be interesting to see how this sector develops over the next 12 months and beyond, and how technology can not only help consumers manage their consumption but also deliver environmental positives.