Utilities Technology Trends 2022: IoT Enables Improved Operational Performance - Kerlink
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Utilities Technology Trends 2022: IoT Enables Improved Operational Performance

Gartner® Report

Utilities are under pressure…

The current geopolitical challenges and the resulting tensions on energy supplies illustrate once again the importance of optimal and reactive operational control at all stages of utilities’ value chain including production, transport, and distribution to businesses and consumers. At the same time, the global utility sector is facing unprecedented changes and a fast transition that break away from its historical business stability, reliability, and predictability. Cost optimization, regulatory compliance, energy transition, and emerging technologies adoption are some of the challenges that utilities must overcome to maintain the dynamic of their business.

…while their business basics are evolving

The utility industry is asset-intensive and requires its equipment and production operations to be constantly monitored. The rapid evolution and volatility of energy prices increasingly force utilities to quickly adapt instant access to energy flows and to control them. In addition, the emergence of new sources of energy production, both public and private, introduces disruption on the energy grid and increases the need for visibility, control, and monitoring. To manage these underlying trends, utilities can mobilize digital technologies, and among them IoT, to streamline their operations and increase their resilience, while creating new business practices.

 

“Dynamic capabilities supported by IoT will aid utility organizations in maintaining productivity and efficiency as they are adapting to the new realities”

 

IoT, a Key Utilities Technology Trend for 2022

From these observations, Gartner identifies opportunities for utilities using the Internet of Things (IoT) in its “Utilities Technology Trends 2022: IoT Enables Improved Operational Performance”1 January 2022 report.

Gartner highlights that “IoT – an ecosystem that includes sensors, communication protocols, applications, and data and analytics – is expanding across the utility sector and becoming a critical capability for digital innovation” and that  “IoT has common characteristics with vertical remote sensing and control technologies, such as supervisory control and data acquisition (SCADA) and smart metering”. Thus, Gartner explains that new opportunities are created by IoT in data analytics for intelligent operations, event sensing and anticipation, and business-centric transformation where “A business-centric transformation approach to IoT investments can maximize technology’s potential benefits across the utility value chain in five key areas”, that are described in the report.

 

“To remain operationally relevant, utilities must embark on an intelligent operations journey, moving from a reactive to a measured state — IoT is the critical investment a utility must make”

 

Key Recommendations for Utilities’ CIOs and IT Teams

From these opportunities, Gartner infers actionable recommendations for utilities’ IT leaders to “Incorporate IoT into their digital business ambition by demonstrating the value of IoT to business stakeholders, including a capability discussion about time to product/market/capability, and the service delivery model maturity for IoT applications and use cases”. To accomplish this, Gartner invites IT leaders to:

  • “Analyze IoT use case improvement opportunities by evaluating three key areas”, also described in the report,
  • “Evaluate the disruptive implications from customer adoption of IoT” and,
  • “Manage the potential and likelihood of IoT-created cybersecurity by collaborating with stakeholders to develop comprehensive cybersecurity policies and processes”.

 

“The 4D forces of decarbonization, digitalization, decentralization and democratization are opening new business opportunities in the utility sector with new revenue model opportunities beyond the meter with energy services”

 

 

1 Gartner, “Utilities Technology Trends 2022: IoT Enables Improved Operational Performance”, By Nicole Foust, Ethan Cohen, 28 January 2022.

 

 

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