1 – 5 Oct 2017 | Orlando, FL

Top 10 Trends Shaping Energy and Utility

Sector in 2017
Zarko Sumic

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 Digital has pushed
utility business to Should you transform
the edge by adopting digital
innovation?

Or should you optimize

your traditional
offering by leveraging
digital technologies?
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Face the Possibilities!
Evolving

Environment
Survivalists Pioneers

Exploratory
Proven

Innovation Posture

Landlords Explorers

Status Quo. External

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Top 10 Utility Trends in 2017

 Augmented and Virtual Reality

 Asset Performance Management
 Blockchain
 Distributed Energy Resources
 Digital Business
 Digital Customer Engagement
 Drones
 Energy Provisioning Transformation
 Innovation
 IoT
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 Trends Contributing to Optimization of
Core Utility Business Processes

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Asset Performance Management Reduces Costs and
Operational Risks
 More and better data, and
improved analytical tools are
making APM more widespread
 APM contributes to asset
management process
optimization
 Shift in asset management
strategies from preventive to
predictive maintenance

Build internal competency on analytical techniques and tools that can

support APM
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Drones Extend Field Force Reach

Use Cases:
 Electric transmission asset inspections
 Vegetation management
 Surveying storm/earthquake damage
 Cell and radio tower inspection
 Wind turbine inspection
 Solar panel inspection
 Generation plant inspection
 Hydroelectric dam inspection
 Wildlife preservation and environmental compliance
 Enhanced security patrols
 Deploying distribution line sensors

Set the stage for drones' adoption by building out a geospatial platform that can
process drone-generated imagery and data for business applications.
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Augmented and Virtual Reality Increase Workforce
Efficiency
 Presents an enriched digital
user experience
 Vendors (and utilities alike) are
experimenting with AR and
VR technologies
 Commercial solutions are still few

Explore AR and VR benefits and identify use cases

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IoT Radically Redefines Utility Technology Domains
Utility Consumer
IoT

ET OT IT CT

Explore innovative energy services and business practices created by

opportunities to integrate utility IoT with consumer IoT

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Distributed Energy Resources Dictate New Network
Management
 DERs are reaching high
penetration levels
 Adoption will accelerate over the
next few years
 DERs present complex operational
challenges (network/load curve)
 DERMS are coming

Address impacts before DER penetration levels rise

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 Trends Contributing to Digitally Enabled
Utility Transformation

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Energy Technology Consumerization Creates the Path to
the Digital Utility
 Customers are adopting new
energy-focused technologies
 Digital assistants are emerging as
interface to connected home
 Technology giants are creating API
ecosystems that transform the
connected home into a
programmable platform

Participate in emerging connected home ecosystems of market leaders

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Digital Business Is Accelerating Industry Transformation

Digital
Transformation
 Digital business is driven by exponential
technologies outside utility control
thus creates risk
 Digital business provides a technology
path to future utility business models

IT Business
Optimization Optimization

Explore digital utility business transformation impacts, risks and promises

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Blockchain Enables Sharing Energy Economy

 Business disruption potential as it can

eliminate need for a central authority
(such as government, bank or utility)
 Numerous use cases already mostly
as P2P energy exchanges underlying
technology

Initiate blockchain discussion with business but curb unrealistic enthusiasm

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Pace of Innovation in the
Utility Sector Increases

Utilities that do not change their

approach to innovation will be
marginalized into being operators of
commoditized infrastructure.

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Digital Customer Engagement Breeds New Service
Opportunities
 Customer engagement is rising in
importance as utilities prepare for energy
provisioning transformation
 Customers are adopting an increasingly
diverse set of digital channels (such as
mobile and social — and now voice)

Adopt best practices from the customer experience

strategies of other industries
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Which Trends Are the Most Relevant for You?
Operating Environment Evolving

Environment
Digital

Innovation Posture
Customer
Posture-Proven

engagement Innovation Blockchain

Exploratory
Innovation

ET
Digital Business
Consumerization

Innovation Posture

IoT
DERMS
Drones

External
AVR
APM

Operating Environment Status Quo.

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Recommended Gartner Research

 Top 10 Trends Shaping the 2017 Utility Industry on the Road to

Digital Business
Zarko Sumic, Kristian Steenstrup and Others (G00324290)
 'Transforming While Performing' Demands Organizational
Ambidexterity and Bimodal IT
Zarko Sumic (G00299117)
 Predicts 2017: Energy and Utilities Get Ready for Digital Disruption
Zarko Sumic, Randy Rhodes and Others (G00316700)
 Blockchain in Utilities: Promise and Reality
Zarko Sumic, Randy Rhodes and Chet Geschickter (G00324291)
For more information, stop by Gartner Zone.
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Recommended Gartner Research

 Use Utility Scenarios to Prepare for Change

Randy Rhodes, Zarko Sumic and Chet Geschickter (G00303020)
 Industry Vision: Utilities as Platform Providers for the Energy-
Sharing Economy
Zarko Sumic (G00303110)
 Four Steps for Utilities to Increase Digital Customer Engagement
Chet Geschickter and Mick MacComascaigh (G00310298)

For more information, stop by Gartner Zone.

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