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16 Aug 2017

“Elementary, my dear Watson!” New IDC Research’s Advice to APeJ Utilities on the State of their IoT Strategy

SINGAPORE, August 17th, 2017 – Utilities in the Asia-Pacific (except Japan) region are yet to scale out IoT deployments to compete effectively in the market. A recent study from IDC Energy Insights titled Internet of Things: State of Play in Asia-Pacific Utilities Business , establishes that utility organizations see IoT as a differentiator but are naïve in their ability to build an intelligent IoT landscape.

IoT is slowly becoming a recurring theme in the APeJ utilities business. Utility business leaders consider IoT to be a strategic lever to improve productivity and their ability to compete effectively in the market. The IDC report reveals that the level of investment in IoT by utilities across different countries is rapidly increasing. 97% of utilities companies are already dabbling with IoT at different scales to create differentiation in their markets.

At IDC Energy Insights, we have observed, however, that this enthusiasm of utility organizations in introducing IoT within their operations does not always mirror the proficiency with which they do so. The leadership and execution teams on the ground see IoT playing different roles in enabling the organization digitally. There is a disconnect between the envisioning and the actual implementation of IoT within operations. IoT decisions are passed down through the organizational grapevine in isolation to other technology and governance changes that should ideally be a part of the same conversation. As a result, strategic IoT implementations become isolated experiments within operations, directed at solving an impending business problem, which are often related to maintaining the integrity of assets and resources.

“Utilities in this region approach IoT cautiously and incompletely. They are yet to look at IoT deployments strategically within their organization” says Emilie Ditton, Research Director, IDC Energy Insights Asia Pacific.

IDC noted that the absence of proper groundwork is a common issue among IoT projects being undertaken across the region. The vision is strategic. Decisions are isolated. Implementation is random. This impacts the effectiveness of IoT in bringing change.

“With the anticipated increase in activity and IoT investments, it is critical that utilities organizations use the right approach to connect different elements of their operation together. Building a roadmap, accommodating for changes in governance structure, digitally enabling the operational workforce and managing change effectively is crucial,” says Sparshy Saxena, Senior Market Analyst, IDC Energy Insights.

These re-alignments are essential pre-cursors to having a fully functional and insightful connected environment. Doing so will build a strong business case for scaling up distributed and pilot projects throughout the organization. The environment that they then will build will be on-trend with the current drifts in the industry, helping them achieve the agility and efficiency that they desire, without burning an irreparable hole in their pockets.

“Utilities need to plan ahead and embed IoT decisions within their holistic organizational strategy to drive value throughout their organization,” ends Saxena.

For more information on this report, please contact Emilie Ditton editton@idc.com or Sparshy Saxena srsaxena@idc.com. For media inquiries, please contact Tessa Rago trago@idc.com or Alvin Afuang aafuang@idc.com

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About Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. For more information, please visit www.idc-ei.com , email editton@idc.com or call +612 9925 2211.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC

Coverage
Regions Covered

Asia Pacific

Topics Covered

Internet of things

Vertical Markets

Energy, Smart utilities

Contact
For more information, contact:

Sparshy Rajeev Saxena
srsaxena@idc.com
+612 9925 2221

Emilie Ditton
editton@idc.com
+61 9925 2211

Theresa Rago
trago@idc.com
+65 91593053

Alvin Afuang
aafuang@idc.com
+63917 797 4586