Enabling the Utility Business of the Future
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The document discusses the evolving utility business landscape, emphasizing the need for energy companies to adopt new strategies amid changing customer expectations, market competition, and sustainability goals. It highlights four strategic plays for success, including enhancing customer lifetime value, offering innovative services, and transforming traditional operations through a seamless digital cloud platform. The document also outlines the importance of tailored transformation paths and the collaborative approach between Accenture and SAP to support utilities in their digital transition.
Enabling the Utility Business of the Future
- 1. Enabling the Utility Business of the Future ACCENTURE UTILITIES Bringing traditional and new products and services together in the cloud
- 2. 04 Utilities require new strategies Contents 12 Building the foundation of the future 19 Enabling new business with utilities cloud 24 Planning your transformation
- 3. Delivering new energy experiences for future growth
- 5. The business context: Slower-growing margins, new business models Changing customer expectations Their new normal is a connected energy experience across traditional and new products and services Digital tech exposes new opportunities Including digital customer journeys, online sales and services, personalisation and AI-driven customer operations Slower demand for energy As electrification of transport and heating are offset by energy efficiency measures and distributed energy resources The race to renewables They’re competing with and beating traditional generation sources on price Businesses make climate commitments Alongside increasingly ambitious government-led sustainability targets and regulation Investors want sustainable businesses The financial industry looks to innovative, green-focused utilities as the energy business of the future New competitors are moving in Auto manufacturers, tech companies, oil and gas majors and start-ups are all looking to capture part of the market
- 6. The energy transition is here, and now is the time for energy companies to capitalize. We’ve identified four strategic plays to execute on the emerging opportunities, depending on the individual context.
- 7. Now is the time for energy companies to seize the initiative Commodity focus, with value-added services to improve retention Focuses on increasing customer lifetime value by offering extra services to drive perceived value and customer “stickiness” without the intent to generate additional profit. Energy value provider 1 Adding “status quo” services in tandem with commodity In addition to commodity sales, this play includes offering closely related “status-quo” home services (e.g. smart home) to customers—with the intent to generate additional profit. Energy & home services provider 2 Offering future-forward energy products and services Provides products and services for emerging opportunity areas like energy management, distributed energy resources, electronic vehicles and flexibility, with the intent to tap into new and fast-growing profit pools. Pivoting into manufacturing, technology services related to the energy transition, and addressing other emerging needs in the new power ecosystem. Connected energy services provider 3 Beyond energy 4 Source: Accenture Research – New Energy Consumer 2020
- 8. Energy value provider What? Focus on commodity, and offer value-added services to retain more customers How? This means focusing on increasing a customer’s lifetime value by offering extra services Why? To drive perceived value and customer ‘stickiness’, without the aim of generating additional profit 1
- 9. Energy and home services provider What? Adding extra available services to customers, alongside the commodity How? Businesses can offer home services closely related to commodity sales, such as smart home technology Why? These extra services are designed to generate additional profit 2
- 10. Connected energy services provider What? Offering innovative energy products and services How? By providing products and services for emerging opportunities, such as energy management, distributed energy resources, electronic vehicles and flexibility Why? To tap into new and fast-growing opportunities for profit 3
- 11. Beyond energy What? Pivoting into manufacturing and technology services related to the energy transition Addressing other emerging needs in the new power ecosystem 4
- 12. Making it real, Building the foundation of the future
- 13. Energy companies can go beyond the traditional commodity model to drive growth Switching from a high-volume, low-margin business • It takes both evolution and revolution • Optimising the core business and supporting new business models • With the right platform in place, this challenging transition can go smoothly A low-volume, high-margin business Transforming the traditional business capabilities Digital, intelligent and automated capabilities
- 14. Reimagining and enabling the utility business of the future, together Transform the business model to become more agile and efficient, achieving business goals and outperforming the competition.
- 15. A digital cloud platform drives flexibility and intelligence, and takes core capabilities to the next level. Utilities cloud: bringing the platform for success to life
- 16. Front office transformation Shifting from traditional marketing, sales and service capabilities to intelligent marketing, digital sales and automated self-service capabilities. Deregulation processes for the market communication must become part of the cloud software, so updates of regulatory changes happen automatically, saving time and effort. Back office transformation Moving from the classic meter-to-cash process to a lead-to-cash process, supporting commodity and non-commodity operations. Implementing a digital platform Drives flexibility and intelligence while core capabilities are taken to the next level. 1 2 The transition to a connected energy business requires 3
- 17. The benefits of utilities cloud Intelligent marketing Enables new business models supporting commodity and non-commodity operations and bundles of products and services Digital sales Provide an online storefront with central product catalogue where customers can buy commodity, non-commodity and bundles Automated service With streamlined end-to-end operations to enhance customer experience, including self-service processes, supported by bots and digital assistants Order to cash Non-differentiating processes in the back office can be optimised through simplification, standardisation and automation
- 18. The benefits of utilities cloud Digital platform • Deregulation processes are provided as a service • Central and streamlined data model with best practice from end to end, integrated across every building block • Transform legacy infrastructure into a decoupled platform for increased flexibility and extensibility • Central data hub and integrated external source to enable a full 360-view of the customer and a foundation for new business models • Gain insight into existing customer base and behaviour, with details of activity and more efficient processes • Enhance the agent experience with consistent user experiences and intelligent system (ML/AI) support • Fully cloud enabled, with a SaaS license model and continuous innovation • Runs on a hyper-scaler for increased scalability, and can be combined with differentiating capabilities of the cloud platform New business models enable additional revenue streams Decoupling drives flexibility and extensibility Intelligence increases efficiency and customer satisfaction Cloud solution comes with continuous innovation and scalability
- 19. Enabling new business with utilities cloud
- 20. Your customers expect a tailored service. Your route to transformation is equally unique. There are many ways to get there: • Transformation could start in the front office, back office or both • You could leave your commodity business as is and set up a new business in the cloud, migrating when the time is right To succeed: • Define the future role you want to play as a utility • Set out the guiding architecture that supports your goals and gives you flexibility to transform • Find your right path to get to the destination – consider business value, business priorities and technology readiness From other projects I know that ‘North Star’ is a term that Accenture uses a lot. I’ve taken it out of the presentation as it may seem like consultancy speak, but we can add back in if needed.
- 21. Move at your own pace Transform the customer experience first, the back office, or both at once
- 22. SAP® Cloud for Utilities • Combines SAP Customer Experience functionality with SAP S/4HANA® for efficient back office operations • Cloud for Utilities represents the digital platform of the Cloud for Utilities with all its benefits • Links front and back office, handling the complexities of a modern architecture for both traditional and new business processes The strengths of SAP • Strong solutions for digital marketing, sales and service to enhance customer experiences • Simplifies, automates and integrates back office processes • A cloud-native digital platform that is unique in the industry Cloud for Utilities in detail • An extensible, central data model that gives a 360-view of customers across business areas and software • Based on microservices and comes with open APIs that can be consumed easily by any application • Drives decoupling for utilities, increases flexibility and enables extensibility of the SAP system’s core with additional data sources and business applications Probably the most complete end-to-end solution for traditional and new business models
- 23. Accenture and SAP • Accenture is co-developing the SAP Cloud for Utilities software, focusing on the digital platform • We collaborate with a consortium of customers to understand their needs and challenges • This encourages innovation in partnership, creating solutions relevant for the industry Accenture’s expertise: • Extensive experience in the utilities sector • Proven approach for business and IT transformation • Knowledge of new as-a-Service business models • Agility in applying technology innovations • Experience in integrating solutions and partners within one architecture The landscape is open, enabling businesses to leverage multiple applications – with Accenture as the perfect partner to orchestrate transformation
- 25. Milestones on your journey to transformation Your strategy – the role you want to play in the energy ecosystem. This is the foundation for all the steps you need to take to succeed You may have needs and goals that are similar to other utility businesses, but the role you want to play and the priorities that define your transformation are unique. Your architecture – this guides your journey and must be based on your strategy. It’s your blueprint for transforming technology Your priorities – these will determine the path you take to achieve your strategy 1 3 2
- 26. Conclusion: Technology & Business Capabilities Technology & business capabilities go hand in hand as you work towards your optimum architecture, unleashing value and enabling speedy transformation 4
- 27. How we can help: • Assess your current situation and define your future needs • Develop a value case (2-3 weeks) and a comprehensive business case and roadmap (2 months) for your transition • Define a future-proof architecture based on your needs • Support your transformation at every step: • During pre-planning and preparation • When implementing the transformation • For taking care of your application landscape • In running your business process operations Let’s get started on your transformation
- 28. We bring you unique capabilities: • Industry benchmarks, leading assets and best practices with Accenture myConcerto • Industry-specialised capabilities to support you throughout the journey • Co-development partnership with SAP You can rely on Accenture
- 29. Vincent Nguyen vincent.nguyen@accenture.com Benjamin Bender benjamin.bender@accenture.com AboutAccenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.