Asia Pacific Utilities Must Transform to Realize the Value of their Data: IDC Research Shows
07 Feb 2017
SINGAPORE, February 8, 2017 – According to IDC Energy Insights’ latest report IDC MaturityScape Benchmark: Digital Transformation in Utilities in Asia/Pacific (Excluding Japan), distinguishing factor between utility companies that thrives and those simply who survive in the Asia Pacific region excluding Japan (APeJ) lie on their data management strategy. IDC Energy Insights released today a report that discusses the impact of information is altering the future of the utilities sector within the Asia/Pacific region excluding Japan (APeJ). The report highlights that the ability of a utility company to create value out of process and ecosystem data decides if it is considered a disruptor or one among the followers.
Different market dynamics drive businesses across the region. Governing policies, market structure and customer expectations vary from one market to the next, making the development of consistent operating models challenging. Economies are starkly contrasting.
Across the region, IDC sees two extremes in its five-stage digital transformation (or DX) maturity framework. On one side, 88% of utility companies are at the early stages which IDC refers to as digital resisters and explorers. They are wary and have yet to tap into the power of DX. On the other hand of the spectrum, there are 4% of companies who are considered to be game-changers – companies who are opting to use technology to disrupt the marketplace.
As disruptors move forward, they are leaving behind a void that developing companies need to fill. The companies that are merely surviving this disruption are pushed to duplicate the success of those that are thriving in this situation. As DX progresses, companies on the lower end of the scale need to evaluate the impact on their environment and either transform or perish.
“Companies need to recognize the need to transform as inevitable. They need to lace up their boots and act in order to tide out the wave of transformation or risk being pushed into oblivion,” says Emilie Ditton, Research Director, IDC Energy Insights.
One way they can achieve this is through robust data mining. Data helps build a responsive operational environment that evolves continuously through an active feedback system. This brings about a paradigm shift in how the utility business is run in the future. Asia/Pacific utility companies, irrespective of where they lie on the maturity framework, have miles to go in developing the skills needed to convert data into information effective enough to create more than just a ripple in the ocean.
Just having operational analytics and making sporadic use of technologies like cloud and mobility is not sufficient. Similarly, storing and managing data in only the basic way possible does not make the grade. Utilities must take a step back and visualise where the company wants to be, then use this vision to devise a strategy across data, IT and operations. Creating an agile and interconnected web of a well thought out strategy to manage data and technology decisions made in tandem with operations will create an atmosphere fortified with value, insight and action.
“Companies are sitting on a huge unexplored mine of data. Putting strategies in place to extract and create value from data will help utilities get into the driving seat and influence where their business will head in the future,” says Sparshy Saxena, Senior Market Analyst, IDC Energy Insights.
This report assesses the digital transformation (DX) readiness of utility companies by examining factors like leadership, operating model, employee and partner ecosystem and information management.
The IDC MaturityScape Benchmark: Digital Transformation in APeJ Utilities is to be viewed as a supplement to IDC MaturityScape: Digital Transformation in Utilities (IDC #AP41102916, November 2016). It provides a comprehensive overview of IDC’s digital transformation maturity scale enables mining companies to maturity against their peers, pinpoint which dimensions of an initiative peer organizations are more mature in, and identify the benefits organizations achieve as they move to more mature stages. This benchmark study focused on major utility companies in Asia-Pacific excluding Japan.
For more information on this IDC MaturityScape Benchmark document, please contact Emilie Ditton firstname.lastname@example.org. For media inquiries, please contact Tessa Rago email@example.com or Alvin Afuang firstname.lastname@example.org
IDC MaturityScape Benchmark
IDC MaturityScape Benchmark reports aid in the discussion of IT strategy and technology investments by helping IT executives and their enterprise partners gauge where their enterprise is in relation to that of their peers and competitors, best achievers, and the least invested. By utilizing IDC benchmark data, IDC MaturityScape Benchmarks enable organizations to compare maturity against peers, pinpoint which dimensions of an initiative peer organizations are more mature in, and identify the benefits organizations achieve as they move to more mature stages. This benchmark study focused on organizations with 500 or more employees in Asia/Pacific (excluding Japan).
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