A revolution in energy technologies is needed to ensure that the global energy supply meets demands while also solving the challenges of climate change. No company can begin to meet these challenges without an integrated strategy that includes greater investments in energy R&D; new policies that put a price on carbon emissions and remove barriers to private sector energy innovation; and new types of public/private partnerships, institutions, and international cooperation.
Energy companies need to shift their focus toward long-term business stewardship and strategic positioning, with significant enhancement of skills to support strategic versus operational roles. Put simply, the management model needs to mature beyond the short-term operations or regulator-focused models prevalent today. Senior executives must understand the interactions among emerging market drivers and their potential impact on the company. For example, they will need new asset management capabilities to respond to the increasing intelligence available within today’s electric system and the vast insight it can offer about network performance and condition.
Maturing smart grid and demand response systems and the integration of renewable generation systems require electric distribution networks to use more computational, control and communications technologies. The skills and experience required to manage these more complex and dynamic systems are very different from managing “one-way” systems characterised by a high level of redundancy to ensure reliability.
An industry once known for its predictability has become much more dynamic and demanding. Deregulation has created intense pressure on utility companies to cut costs and find new opportunities for growth. They can now choose from an array of strategies and operating models. Whatever approach they take, success depends on putting in place the right processes, management practices and supporting technologies to drive out costs and create an agile and responsive organisation.
|Gas and electricity|
|Since most energy companies have similar products, it will be the innovation and integration of the autonomous business units that will make the difference >|
|Frequently, energy companies implement best practices to catch up with competitors, but will it make them into market leaders? >|
|"Our two incumbent strategy firms say they put their clients’ interest ahead of increasing their firms’ revenue, but we see different. Your work with us brings a refreshing change."
CFO of an integrated Energy Company