In my earlier blog on data analytics in utilities, I explored the business drivers that have led utilities to take advantage of the advancements in digital grid technologies to modernize the power grid by deploying smart devices. In this blog we see how utilities must be prepared to address and overcome challenges, to successfully enable an enterprise analytic program.
- Making business sense out of high speed grid data: Data from digital devices originate at a high velocity, high volume (big data) in structured and unstructured formats. These innate attributes of data make it a) difficult to receive process and manage to meet operating requirements, b) challenging to unearth the key business context, impact and outcome, c) formidable to digest the massive data volumes, without help of advanced tools d) complex to model for business consumption.
- Executive alignment: Utility executives typically favor well-justified proposals with investments backed by regulators to fulfill growth agenda. The executive leadership expects propositions to demonstrate a well-defined return on investment with tangible, measurable and quantifiable business benefits and analytical opportunities must satisfy these conditions.
- Analytic culture: Advanced analytical capabilities and techniques driven by data driven processes, real time data insights can lead to optimized, timely decisions. The need to move to a proactive business model is gaining momentum and is a game changer in the utility business. However, an enterprise must initiate a transformation to infuse data driven analytic culture, leverage the resulting informative insights to sharpen and empower forward looking business operations.
- Advance innovation: Utilities business processes have been continuously analyzed and optimized using conventional quality management methods. However big data provides a platform for innovation where grid data can be effectively used to enable value driven process optimization. Every analytics enterprise program must account for innovation driven benefits and such programs should empower frontline employees to contribute and improve operations.
In summary utilities must establish the following recommendations to take complete advantage of analytics programs.
- Instill a formal business case methodology for all analytic initiatives to ensure executive alignment, realize business objectives and effectuate ROI. Advocate and energize pilots to minimize risk in securing benefit.
- Should deploy analytical governance process and strategy with active business participation to prioritize opportunities and realize focused business value.
- Must adopt modern methods like machine learning, spatial integration, mixed mode data modelling and rule engines to permit predictive analytical insights. In addition, setup advanced technologies like high speed processing proficiencies to support the enterprise analytic architecture.
- Setup innovation teams to evangelize innovation across the organization, invite and vet innovative ideas in areas of business, data, process and technology. Promote and explore co-innovation possibilities with vendors, partners and service providers.
To do all of the above, it is essential to provide executive support to aid the cultural transformation from reactive management to innovative proactive management. The recommendations provided in my blog should be used as a guideline to further customize, adopt and accelerate utility analytic programs.
Analytic culture,analytic programs,co innovation,Utilitie