No. 3: Evolution of digital technologies and the IoT
Digital technologies are affecting every facet of the P&U value chain. The IoT, smart meters, digital grids, big data and analytics, and mobile applications and services are transforming how utilities manage assets and operational processes across the enterprise. The energy system is evolving around two-way flows of power and data.
With the current speed of change, the associated security risks and vulnerabilities are rising exponentially, which is why 72% of respondents ranked this in their top three strategic risks.
Utilities should monitor the evolving digital landscape and explore how to engage more effectively with digital-savvy customers while building enterprise resilience capabilities so that they can sense, resist and react to new and evolving cyber threats from digital and the IoT.
No. 2: Changing customer demands and expectations
Customers are increasingly aware of energy usage, utility offerings, service quality and costs, and they have more choices — 76% of respondents ranked this in their top three strategic risks, and the number five risk overall .
The digital grid, combined with distributed generation, batteries, and emerging, enabling technologies, such as blockchain, is allowing more and more customers to produce, store, buy and sell energy among themselves. The addition of peer-to-peer capabilities creates new opportunities for customers and nontraditional entrants to siphon business away from traditional utilities, placing downward pressure on revenues and margins.