Digital infrastructure strategies

Digitalization calls for new business strategies

Characterized by a convergence of the virtual and physical worlds, the rapid infusion of digital technologies into the energy industry is blurring the lines between technological capabilities, business models, and regulatory frameworks. With all its disruptive innovation, complex capabilities, and vast opportunities, the digital revolution in the power industry is truly here to stay. The typical utility planning horizons range from 10 to 20 years, with most big-ticket items having lifetime forecasts of 50+ years. The blindingly-fast pace of change in the digital landscape indicates that business as usual is no longer an option.

Adapt your business to changing requirements

Utilities need to examine and adapt their existing business strategies, cost structures, and monetization models. We at Siemens (Siemens PTI) Energy Business Advisory (EBA) believe that a “silver bullet” approach to technologies doesn’t make for a winning business model. Instead, a range of business models and strategies needs to be explored, combined, and modified in order to use advances in technology as catalysts for identifying cost-cutting opportunities, exploring customer value perception, and monetizing new value streams.

Together we strive to unlock your future value creation through:

Utility of the future strategies – get ready for the digitalized grid

Intermittent renewable energy, distributed generation, ambitious environmental targets, and new market entrants as well as the push from regulatory bodies for level playing fields, environmental responsibility, and increased transparency – utilities are facing a variety of new challenges on their way to building smart grids or the “utility of the future.”

Siemens PTI offers you  vast experience in designing business strategies and the accompanying implementation plans that will help you manage the demands of intermittent renewable energy sources, improve your operational excellence, and reshape your business models. Digitalization Compass, our core utility consulting framework, analyzes your utility’s current situation, develops a strategic vision for the future, and uses technology deployments as key business enablers to move toward the identified vision.

Digitalization Compass™ methodology from Siemens PTI

The four central quadrants are tied together by an axis that represents the smart organization you need in order to implement the necessary changes in your company’s structure – changes that will unleash the potential synergies of a smart grid roadmap and foster change management within the utility. The boundary between the organization itself and the external marketplace is indicated by the outer rim, which represents product and portfolio management. Activities in this domain help the organization manage, design, and position new and existing products and services that will beneficially transform the business  and create new markets served by innovative and unrivalled offerings.

All business areas typically execute business processes in order to achieve specific objectives, including customer satisfaction and compliance with regulations. Those objectives are achieved through an orchestrated deployment of different technologies in the field, which require integration in order to profit from synergies between processes and technologies.

Business model transformation – innovating your business model

As we work with utilities around the world, we increasingly see utility management and energy industry executives searching for ways to cut costs and unlock new value streams in domains where new market entrants are disrupting their business model. Utilities are intensely focused on streamlining their business processes, opening up new customer channels, and unlocking innovative value streams. 

By using a variety of innovative tools, Siemens PTI can actively support you in your transformational journey by identifying sound business models, developing detailed roadmaps, and formulating a concrete implementation plan in a structured process that aligns your strengths and your business objectives with technological possibilities. Our expertise in change management will also help you navigate potential complexities that may arise in the future as a result of changes in regulatory mechanisms, energy-efficiency goals, and emissions-reductions targets.

Managed transition programs – successfully executing comprehensive transition programs

In the face of the multiple, rapidly developing challenges on different fronts, utilities need to adapt quickly and in the right direction in order to successfully navigate the energy transformation. We support you in executing comprehensive transition programs over multiple years. Building on our Digitalization Compass™ framework, we support you in transitioning to your planned strategy through the departure and navigation phases.

The departure phase creates the basic structure on which the subsequent business transformation program will be built. Examples of activities include staffing the core roles including the program management office, setting up the governance structure and infrastructure, and preparing the utility’s organization to effectively deal with process changes.

The navigation phase executes all process change measures and technology deployment plans in accordance with the planned strategies, and includes active monitoring of value generation against agreed-upon value targets.

Grid asset management strategies – determining the right asset management strategy

Critical assets like transformers, switchgears, and cables age. The age and performance profiles of most utilities’ asset fleets display great variation due to periodic asset upgrades at different times in the past. This creates financial pressure to maintain or replace these assets and unevenly distributes financial, operational, and reliability risks across the grids. In addition, the increasing penetration of distributed generation resources and other smart grid technologies are placing aging grid assets under increasing operational stresses.

Therefore, utilities need to extend their assets’ lifespan, improve asset utilization efficiency, and increase customer satisfaction by transforming and optimizing their asset management strategies. To help you choose and design the best strategy, we offer comprehensive services that include

  • Assessing existing and required asset management capabilities
  • Scenario and business case-based decision preparation
  • Planning and experience-driven guidance for implementation
References

Business transformation in practice

Siemens PTI helps utilities worldwide to adapt their existing business strategies, identify cost-cutting opportunities, explore customer value perception, and monetize new value streams. Learn about some of our top business transformation projects.

Contact

Get in contact with our Sales Support and Customer Service for Power Transmission and Distribution

Do you need help with a concrete project? Do you need a quote for any of our products or solutions? Do you need support for your installed equipment? Do you have a technical question? Do you need something totally different?   You can contact us 24/7. We are looking forward to your call or online request. Phone +49 180 524 70 00