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Cloud innovation
Cloud is a key enabler of innovation for utilities.
The utilities industry is at the forefront of the transition to a clean energy future. Utilities have been investing heavily in digital transformation to keep pace with the change. The TCS Global Cloud Study reveals that the widespread adoption of cloud has been a key enabler of innovation, and utilities have made good progress toward new business models.
Innovation culture
Utilities have established a strong culture of innovation.
Cloud innovation
An illustration depicting 66% say they have succeeded in embedding innovation across their organization, from leadership to board level to employees, with no issues or only minor ones.
They recognize the crucial role of cloud technology in driving innovation.
Cloud commitment
The image reads 60% of the utilities surveyed say cloud is critical to their organization’s future as a catalyst for innovation.
Further, many utilities are making headway on their cloud objectives.
Desired outcome: New business models
The first image reads 55% of utilities respondents say that new business models are a top desired outcome of cloud innovation. The second image reads 39% of utilities respondents say they have already made progress toward this goal.
Fueled by AI
Utilities are investing in artificial intelligence to power ahead.
Utilities handle large amounts of data, including sensitive customer data and critical national infrastructure data. To securely manage this huge volume of data and for better and faster decision making, utilities are eager to invest in technologies like artificial intelligence (AI).
How utilities respondents are investing in AI
The illustration reads 69% of utilities respondents say they increased investments in artificial intelligence/machine learning technologies in the past 1-2 years whereas 78% of utilities respondents say they plan to increase investments in artificial intelligence/machine learning technologies in the next 1-2 years.
Prioritizing sustainability
Cloud is key to utilities’ sustainability strategy.
This transition is bringing countless new opportunities in renewable energy, decentralized energy generation, grid-scale storage technologies and EV ecosystems.
Cloud is emerging as a key component in the industry’s strategies for sustainability.
Utilities and cloud-enabled sustainability
The image reads 56% of utilities respondents say they are using cloud to track air and water quality management.
Overcoming obstacles
Data governance and investment alignment remain challenges.
Though utilities have a strong commitment to data governance, they will need to continue developing robust mechanisms to safely share, discover, and access data to secure more value from it.
Data governance
The first image reads 39% of utilities organizations say they excel in data governance and experience no issues. The second image reads 34% of total industries surveyed.
In addition, less than half of utilities say they invested appropriately in cloud in the past three years. And nearly a quarter say they under-invested, the highest percentage of all industries surveyed.
Investment alignment challenges
The first image reads 45% of utilities respondents reported say they invested appropriately in cloud in the past three years. The second image reads 23% say they under-invested in cloud in the past three years.
About the study
TCS’ Thought Leadership Institute conducted this study of approximately 1,000 senior executives in multiple sectors across Asia, Europe, North America, and the United Kingdom, more than half with revenue over $5 billion. The 972 C-suite and IT senior executives and decision makers included 80 senior leaders in the utilities sector.
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