SAP IS – U

Meeting the New Energy Challenge

The utility industry is in the middle of an unprecedented transformation. While dealing with the fallout from a global financial crisis, utilities must meet daunting regulatory, environmental, operational, and technological challenges.

In today’s rapidly evolving energy environment, some utilities are choosing to pursue inorganic growth through mergers and acquisitions. Others, however, are taking a more proactive, growth- oriented approach. These companies are building an active energy portfolio by leveraging key resources and core competencies while deemphasizing noncore activities.

For all utilities, operational excellence is an important differentiator. Achieving this ambitious goal depends on optimizing customer-facing or resource-consuming processes without weakening the quality of products and services.

Currently, many leading utilities are investing heavily in innovation and introducing technologies like the smart grid. These front-runners embrace tomorrow’s challenges willingly. Whether challenged by regulators or driven by internal goals, they understand that innovation is the key to long-term growth and market leadership.

 

Smart Energy Innovations


Balance profits, sustainability, and safety of supply.

Profitability
Enhance profits by increasing customer satisfaction or using energy more efficiently.

Sustainability
Improve sustainability through increased production from renewable energy sources.

Safety of Supply
Supply safety depends, to a large extent, on highly flexible and adaptive power grids.

 

Priorities for Best-Run Utilities


Best-run utilities are able to meet challenges in power supply and adapt to industry reorganization, regulatory uncertainty, and emerging technologies by achieving the right balance between profitability, sustainability, and safety of energy supply.

  • Energy Supply Chain Optimization
  • Operational Efficiency for Plants and Grids
  • The Intelligent Grid
  • Customer Experience
  • Human Resources
  • Finance
  • Procurement
  • Information Technology
  • Technology and Platform

Understanding the value drivers for each of these priorities is key to becoming a best-run utility company.