McKinsey: The digital utility: New opportunities and challenges
The digital revolution is coming to the power industry. Renewables, distributed generation, and smart grids demand new capabilities and are triggering new business models and regulatory frameworks. Data collection and exchange are growing exponentially, creating digital threats but also valuable opportunities. The competition for customers is shifting to the online channel; the Internet of Things promises new product and management options. Entrants from the digital economy are disrupting the industrial landscape, while governments and regulatory bodies seek to encourage smarter measuring systems and greener standards for generation and consumption.
To thrive amid these challenges, the utility of the future will be a fully digital system. This means that today’s utilities face a digital transformation of their organization and business. This can begin with quick moves to improve efficiency and expand the customer base. As the transformation builds momentum, it should open deeper digital opportunities across a wide field.
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