While trends in the power and utilities business models have been exempt from massive overhauls for a while, the influence of technological innovations is slowly starting to change this factor. Due to this, digitization’s visionary approach to technology lays the groundwork for new capabilities that are expected to accelerate exponential growth in pressure-pumping market value for decades to come.
What is digital transformation in the power sector?
Rapid transition to clean power is helping businesses reduce their carbon footprints and many are also racing to catch up with the rising sophistication of digital technologies. Companies must ensure that they have the right technology in place to support a digital transformation strategy and leverage it across their entire operations. The power industry is leading the way in this direction, with renewable power at the center of many providers’ strategies.
This translates into a newer, more diverse set of assets to manage and integrate with the rapidly ageing set of existing assets worth about $1.2 trillion. In addition to online tools that automate business processes, programmable automation (PA) and cognitive computing are quickly entering the mainstream as firms realise these technologies can help them reduce costs and improve performance. But moving from traditional asset management strategies to develop comprehensive digital strategies with robust data governance and cybersecurity at its core will mean going beyond software alone:
The need of the moment: Companies need more robust analytics capabilities that can support key business processes such as fuel planning, risk management, maintenance scheduling, and asset monitoring as well as infrastructure planning for new projects
Digital paradigm shifts in power transformation:
The power and utilities industry today faces a host of challenges that are making the business more difficult to succeed in. On the one hand, high oil prices, a growing population, and widespread use of electricity are making it imperative that businesses adapt to reflect market demands. Meanwhile, industry professionals lack the agility and resilience to effectively deal with these new demands.
At this point in time, what’s more important is how your business will be better able to adapt to changing conditions and capitalise on opportunities as they emerge.
Let us look at some digital paradigm shifts that are game changers in the vertical:
1. Industry 4.0:
Industry 4.0 has revolutionised the way manufacturing operations are run. Industry 4.0 is the transition from a manufacturing operation to an intelligent operation. Data-driven, automated, and ever-improving technology will make factories leaner, more efficient, and profitable.
Today, there is more opportunity than ever before in this industry as digital twins and IoT devices bring us ever closer to fully autonomous systems fuelled by massive amounts of data. This gives more power to utility companies when it comes to gaining a competitive advantage over their peers. However, cyber security becomes even more important through such innovations.
The industry is facing an uphill battle in order to meet new emission regulations and sustainability targets. Oil and gas companies are being tasked with implementing smarter, more efficient operations. With the heat on for future-ready leaders, getting creative with available technology solutions will be key in our efforts to meet air quality goals.
3. Changing industry needs:
The shift toward alternative power sources has not only affected the business but has also opened new opportunities for companies in the industry. It has shown the customers what is needed and how their lives will be improved. The shift towards clean power has created new revenue opportunities for utility companies. Customer accessibility and sustainability have driven the development of IoT devices, which allow power companies to connect with customers and influence behavior. In addition, IoT devices are helping reduce the environmental impact that extraction creates.
4. Digital asset management:
Digital innovation is playing a key role in the transformation of asset management in the generation segment. As the industry moves toward digitization in the sector, digital asset management can play a key role in the transformation of asset management, helping reduce O&M costs, boost reliability and profitability, and lowering greenhouse gas (GHG) emissions.
5. Data management:
We are now entering the era of smart grids. Companies are facing the challenge of collecting, analysing, and acting on all their valuable data. Connected devices help them to collect and analyse data from multiple sources and make it accessible to other departments of an enterprise. Infrastructure set in place that communicates with data centres provides information on electricity consumption; sensors enable real-time monitoring of facilities and assets on the premises; IoT-based solutions offer comprehensive insight into the performance of plants, equipment, and networks as well as usage patterns at every stage of the supply chain.
The power industry is open to a great number of digital transformations, the most important of which is the fact that it allows companies to open new horizons of digital opportunities and reach a new level of global economic growth, and effective operation.
With the transition to digitization underway, IT architecture is playing an increasingly important role in ensuring that generation and consumption interact smoothly. Not only does the utility sector need to find new ways to manage their business, but they also have a duty to inform their consumers about new technologies and service offerings so they can make informed choices.