Insights

Digital disruption of the utility business


Digitalisation, as the driving power of the fourth industrial revolution, is fundamentally transforming business strategies, business models and culture. Liquid and transparent marketplaces are created and bargaining power is shifted to the end customer because of transparency. Digitalisation introduces new dimensions to value creation and value capture that needs to be considered in an organisation’s strategy. Business models are changed through separating value chain activities, unbundling products and reconfiguring assets. Organisations must reconsider their business model to support the need for speed to market and customer interactions. This is achieved through inter-alia self-organisation, dispersed decision making and agile organisation structures that can move resources where they are needed. Digitalisation alters divisional and departmental functions, by being inherently trans-functional and upset old multinational structures as functions can be located globally where it is most cost effective or have more access to skills. Sharing assets between alliances and partnerships blurs organisation and industry boundaries, creating new forms of doing business and impacting relationships.

Managing your customer eco-system in a digitalised world


Digitalisation unlocks the business ecosystem. The gradual move from a self-contained organisation to an ecosystem has caused a shift in the business paradigm where value is created or destroyed through the network effect of the ecosystem. Within this interactive, dynamic ecosystem, customer engagement is regarded as a strategic imperative for generating enhanced corporate performance, including sales growth, superior competitive advantage and profitability. Through digitalisation customers have become always addressable, interconnected and empowered. They are not passive receivers anymore, but active observers, initiators, participants and co-creators that interact not only with an organisation one-dimensionally but with other participants in the ecosystem such as other consumers and media. From the customer perspective, organisations need to develop processes and systems that could lead customers to co-create value for a product/service, improve the service experience and support new initiatives. From the organisation perspective, understanding customers’ interaction with the organisation and establishing and maintaining interactive relationship with customers are critical. Social awareness and emotional intelligence are becoming more needed to manage all these connections.

An integrated methodology for Smart Grid implementation


Smart grid projects require substantial investments and are technologically, system, network/communication and hardware intensive. Successful implementation depends on having a holistic approach underpinned by sound project management and system engineering principles without focusing only on technology to the exclusion of other elements such as business integration, business transformation, stakeholder engagement and employee readiness. Therefore, a systems thinking approach is needed to implement smart grids. Systems thinking recognise that everything is interrelated and examine the linkages and interactions between the different parts that comprise the defined system. The smart grid implementation team therefore needs to take into account the other areas of the utility and/or municipality to ensure that there are not breakages caused in the business value chain, either through lack of process and technology integration or people change management. Combining the Smart Grid Maturity Model (SGMM) from the Carnegie Mellon Software Engineering Institute, programme management and systems engineering principles a practical model is offered. Although all the elements of the methodology are applicable the extent and detail depend on the the size, maturity and financial position of the utility. Internal capacity and capability will also contribute to customisation of the smart grid implementation methodology.

Utility sustainability: Business essentials


A brief discussion on the business essentials for Utilities, including:  Strategic Business Plan; Long Term Sustainability; Utility Business Model;  Modeling Structure;  Revenue requirements; Multiyear Tariffs and KPI’s.

The new energy landscape


A summary of the international and local energy trends.

Unlocking value from Utility Assets


The meaning of sweating the assets is unpacked. The traditional approach of focussing on optimising (or improve) ROA is compared with the holistic approach and understanding of the utility (cannot sweat the asset alone without looking at the complete utility). Some case studies are shared.

A roadmap to address disruptive forces in the ESI


A benchmark study between South African and other African jurisdictions.

Mini Grids-Policy, regulatory and legislation


The broader context of Off-grid solutions is discussed, the rationale and key requirements for Mini-Grid Establishment is shared and the policy and regulatory environment is outlined. The mini-grid business model and its considerations are highlighted. Lessons learnt internationally from Mini-Grid Implementation is summarised.

New Municipal Business Model


Energy stakeholders agree that the dawn of a new South African energy industry is upon us. This paper clarifies  the current dispersion and advocate for a designed and managed development of a sustainable ESI and municipal business model to prevent reform by default. It provides recommendations on how to sustain the ESI during the reform process and expand on the legal and regulatory barriers and enablers to bring this new business model about. 

Regulatory imperatives to stimulate competition and market entry


A brief introduction to the current shortage as a deviation from the requirements and structure set in the Energy White Paper of 1998. It touches on the different options available to move toward market flexibility, like reference to the single buyer purchaser model, multi purchaser model with relation to their regulatory requirements. Some practises, statistics and organisational arrangements in Sub Sahara Africa with regard to regulation is referred to and based on specific Tanzania experience make reference to important elements in the energy value chain of generation mix, market entry, cost and risk. Modelling examples to indicate how IPP’s can share in supporting the available generation and what kind of recovery plans needs to be in place to ensure long term sustainability is shared.

Collaboration in SOE environment


An overview of collaboration and suggested application in SOE environment