Digital Transformation Programs in Energy Utilities First Lessons Learnt. October 2017
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1 Digital Transformation Programs in Energy Utilities First Lessons Learnt October 2017
2 Who are we? KPMG in the Digital world Digital transformation Data & Analytics Cibersecurity The Forrester Wave TM : Insights Service Providers, Q The Forrester Wave : Information Security Consulting Services, Q
3 What is Digital about? 01 Connecting people 02 Connecting things 03 Transforming processes 04 Establishing data science 3
4 The traditional Utility is facing critical challenges Market context M&A Regulatory pressure TRADITIONAL UTILITY: Asset based Process oriented Slow to adapt Social change Technological change Increased competition 4
5 Utilities need to evolve towards a new model, the Digital Utility 1. Differential customer journey DIGITAL UTILITY: Client-oriented Data-based Agile & Open 2. New Business Models 4. Digital culture and capabilities 3. Operational Excellence 5
6 Example best practices in Digital Transformation (1/3) NOT EXHAUSTIVE Advanced online customer care areas Online customer communities 1. Differential customer journey Omnichannel analytics to improve customer journey Power outage alerts via SMS WhatsApp customer care channel Advanced flexible payment schemes IVR solutions with natural language recognition 6
7 Example best practices in Digital Transformation (2/3) NOT EXHAUSTIVE End-to-end smart home solutions Personalised consumption analysis and saving tools 2. New Business Models Distributed generation solutions with automated satellite-based offering EV solutions combining charging infrastructure and energy supply Dynamic pricing schemes with proactive notifications Conversion analytics tools SEM, SEO and high performance online campaigns 7
8 Example best practices in Digital Transformation (3/3) NOT EXHAUSTIVE Cloud-based smart grid monitoring&management Wide area monitoring systems 3. Operational Excellence Inspections using autonomous, AIenabled drones Predictive maintenance applying IoT and data analytics Automated remote of wind farm operation & monitoring Advanced fieldforce mobility tools Remote video surveillance control systems 8
9 Functions Functions Functions Functions Utilities can follow different paths to Digital Transformation Lighthouse projects Digital Center of Excellence Digital Business Unit Digital as new Normal Business Units Business Units Business Units Business Units 9
10 Global utilities have put Digital at the heart of their strategy Enel Engie EDF E.On 10
11 Smaller Utilities can also leverage Digital to gain competitive edge Example: Digital Transformation Program at a 700,000 clients Utilty Customer satisfaction NPS improvement from -26,3 pts to + 30,5 pts vs average Best NPS rating among country utilities Best rated App in the market 100,0 Digital cost-to acquire (index) TUESDAY 4 APRIL 2017 Photobilling service of receives the Genius Award for its innovation October 2016 Company receives the 2017 Customer Service Award at the Service Leaders' Contest Savings 24,4 20,8 18,9-90% 11,2 10,7 November 2016 Company s Online Office recognized as one of the 50 best digital ideas. Q Q Q Q Q Q Public Awards 11 11
12 Key success factors of Digital Transformation in Energy Utilities Focus on value creation Leadership and commitment from the top Integrated, participative and coordinated approach Process transformation Culture transformation and capability building Strategic focus of IT function 12
13 kpmg.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation KPMG International Cooperative ( KPMG International ), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. Document Classification: KPMG Confidential
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