What utilities think are the key factors that will influence their operating model?

However, digital transformation is not easy...

Cognizant and Ovum interviewed 101 utilities across the globe to build an

understanding of how utilities today are planning for organizational

changes to explore new business and operating models.

Opportunities to earn revenue from new business models will

push change in operating models and digital technologies

will enable this integrated transformation.

Majority of utilities digital transformation strategy did not have an enterprise-wide approach but rather focused on one or two line-of-business projects like customer and grid.

New business models like EV charging networks,

DSO, etc.

Advanced Technologies will force changes in

operating models

Cybersecurity threats altering the as-is way of

conducting business

STAGNATING REVENUE

DRIVING DRISRUPTION IN

BUSINESS MODEL

DRIVING DRISRUPTION IN

OPERATING MODEL

INCREASING OPERATING COSTS

of utilities are implementing digital transformation but unclear on what

new business models will emerge

investing in physical infrastructure to handle DER

investing in customer services

And, fundamental changes built within the organization are to be addressed first

Most of the utilities rely on organizational structures that cannot sustain planning and budgeting for new operating models, but some utilities have already taken the first step.

A right approach and commitment to an enterprise-wide change will accelerate

the journey to build the future utility

The utility of the future will depend on future-forward business units, talent planning, new leadership roles and innovation centers

Utilities have enterprise risk business unit to explore the future

operating model

Utilities have IT strategic planning group to explore the future

operating model

Utilities only have designated business units that explore new

operating models

Capability Strategy

Develop a capability strategy and model to support new business

and operating model.

Leadership & Organization

To create organizational structures committed to innovation. Introduce new roles like CDO and designated

business units, CoE.

Innovation Ecosystem

Set-up research and development business units / CoE and emerging

technology groups to focus on innovation and use agile approaches.

Next-Gen Foundation

To include human-centered design, Agile, and DevOps to deliver digital products and next-gen technology

services to customer and business units.

Talent

Develop future-forward talent strategy to foster resources with clear career path and develop their skills to

support the capability model.

2018 SMARTER UTILITIES SURVEY

72% 71% 69%

42% 63% 38%

67% 61% 42%

Digital Technologies like...Next–Gen

the Transformation...Will Accelerate

Utilities need to create new organizational structures that are committed to innovation, nurture talent and have strong

leadership to explore new business and operating models.

To learn more, visit our energy and utility business unit atwww.cognizant.com/utilities-digital-solutions

See the full report at www.cognizant.com/smarter-utilities-survey-report

© 2019 Cognizant. All rights reserved. www.cognizant.com

THE HITCHHIKER’SGUIDE TO

ENABLED UTILITY

Traditional Utility Business and Operating Model Face Disruptive Change

AGING INFRASTRUCTURE

DER INTEGRATION

ADVANCEDTECHNOLOGIES

CYBERSECURITY

PROSUMERS ENERGY EFFICIENCY

ELECTRIC VEHICLE STORAGE

Future Utility

RPA / AI / ML IoT CLOUD BLOCKCHAIN AR / VR