The power industry is clearly going through a revolution. Utility companies are facing the same type of upheaval that telecoms have undergone in the past 25 years.
Their market is being disrupted by outsiders offering new products and services, and consumers are demanding new and better services. Even the way power is generated and distributed is rapidly changing.
But utilities can thrive in this environment by following some of the examples set by telecoms. Chief among them: Don’t fight the disrupters, join them.
Utilities, in fact, can expand their role as a network integrator — the central hub where customers can access all the new products and services. In that way, power companies can remain the “trusted
adviser” for consumers navigating a rapidly changing energy marketplace.
So just as AT&T and Verizon teamed up with Apple and Samsung to offer cellular plans with the latest phones, utilities can establish similar partnerships and retail outlets for everything from “smart” thermostats to renewable power.
Many utilities are already partnering with technology companies and other third parties to offer consumers a range of products and services. But it will take time before the power industry is as fully integrated with third-party vendors as telecoms.
Recommended by KPMG
- Become a network hub. Develop a strategy where you become the hub for new products and services. That includes identifying and responding to changing customer demands, promoting innovation and structuring the business to monitor what products and services are disrupting the market.
- Engage with regulators. Working with regulators is essential to winning approval for new products and services. Invite them to innovation centers or pilot sites to show how the new products will benefit consumers. Monitor what innovations are being introduced in other parts of the country to help make the case for your own innovations.
- Develop partner programs. Decide which products you want to offer and which partners you want to work with. Then, make sure the products and partners are up to your standards and benefit consumers. Update your technology and other business systems to support and monitor new products and services. Generate standards for working with partners and to make sure they can connect to the grid.
- Let everyone participate. Every department in the company will want to analyze and evaluate how the partnerships are working. This includes compliance, customer service, power delivery and IT systems. Set up the ground rules for access and feedback. The power business will continue to evolve as more outsiders enter the market. Technology companies, large retailers and other businesses have already partnered to develop renewable energy options and improved storage capacity.
For more on ways utility companies should consider redefining their business models, click here.
source - http://www.forbes.com
EmoticonEmoticon