About the study
The global utilities industry, a bedrock in supplying electricity, natural gas, water and other resources to consumers and organizations, underwent a digital transformation over the last decade. In the next few years, the digitization rate of the utilities business appears likely to be even more accelerated. That’s not a surprise given how important the digital tracking of the machines and other products that use power has become to energy conservation, environmental quality and cost savings.
Tata Consultancy Services conducted a major study on the digital strategies of utilities and 16 other sectors in the first half of this year. TCS surveyed more than 1,200 executives in the C-suite, including CEOs, strategy heads, and operational chiefs, to explore one central question:
Where do they see the need for radical innovation in where they compete, what they sell, how they create demand and supply for it, and how they manage their people versus optimizing what they already do today?
In the utilities sector, we surveyed 115 executives. Some 21% are in North America, 23% are in UK and Europe, about a quarter are based in Asia-Pacific, and a third are in Latin America. The average annual revenue of the utility companies they work for is $8.8 billion.
Here is a sample of one of the key findings: At 23%, Utilities as an industry lags behind other industries (32% on avg) when it comes to participating in cross-industry digital ecosystems. (See the chart below for more details.) What does this mean? Utilities companies could be missing out on growth and innovation opportunities for the mid 2020s.
How utilities conduct strategic planning