Amid a rapidly evolving landscape P&U CEOs are bullish on growth and are increasing investment in emerging technology, despite implementation concerns.
Amid a rapidly evolving landscape of changing customer dynamics, unprecedented growth of renewables, and tech-driven business model disruptors, global power and utility CEOs are bullish on growth, and are increasing investment in emerging technology to pave the way.
“Utilities across the globe are feeling the effects of disruptors. From consumers demanding more, to the effects of policy and regulatory changes, to advancements in smart technology influencing energy infrastructure, the utility industry continues to face pressure to reinvent itself. The savvy CEOs are embracing technology to drive innovation within their company cultures and become the utility of the future,” said Regina Mayor, Global Energy and Natural Resources Leader, KPMG in the US.
In the KPMG study of 74 global power and utility CEOs:
To achieve growth:
The CEOs' priority objectives for these investments are to achieve bottom-line growth, increase productivity, and bring their organization closer to the customer.
Despite a clear commitment to investing in emerging technologies, utility CEOs are concerned that implementation will create challenges. In fact, piloting emerging technology was the number one technology-related challenge CEOs are concerned with, followed by integrating cognitive technology and optimal use of analytics. Additionally, the top three risks utility CEOs are concerned about are those associated with operations, strategy and emerging technology.
“Cognitive technologies and robotic process automation are changing the way we do business,” said Michael Salcher, Global Power and Utilities Leader, KPMG in Germany. “While there may be implementation challenges along the way, the benefits of a digital labor workforce are becoming clearer. Organizations must challenge themselves to be innovative and capitalize on opportunities to adopt these smart technologies to remain competitive.”