Research commissioned by TCS highlights distributed era is the key to new income streams for greater than three quarters of all firms surveyed
Low-carbon producers can be central to the utilities trade by 2020, with new services and products contributing greater than 10% of utilities’ income
Innovations from the Fourth Industrial Revolution, in addition to regulatory adjustments and extra agile enterprise fashions are driving the trade’s transformation
Report is the first of three insights being commissioned by TCS into the Utilities sector
Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS) a number one world IT providers, consulting and enterprise options group in the present day unveiled the first section of outcomes from a research, revealed by IDC Energy Insights and commissioned by TCS**, which discovered the majority of European utility companies see digital know-how as an important driver of recent income streams.
This is very well timed with the European utilities market present process important transformation in current years, pushed by innovation as a part of the Fourth Industrial Revolution, new regulatory pressures and a gentle shift away from conventional utilities companies to extra agile and dynamic fashions. The survey was carried out throughout 13 European nations, together with the UK, and is the first section of a brand new research into the evolving priorities of the European utilities trade.
Sudheer Warrier, VP & Global Head TCS Utilities Business Unit, commented: “Our research clearly highlights the major changes that the utilities industry is undergoing as a result of new digital technologies and their ability to transform businesses. Concurrently, digital is changing the industry outside-in, and power is literally shifting to the consumer. There is now a new Energy Value Ecosystem where data is the currency and experience is the valuation of every transaction, and utility companies are having to navigate this disruption.”
The first report has uncovered the views of trade executives on altering income drivers, with the three-quarters (79%) of respondents claiming that distributed era can be the key to new revenues channels for his or her enterprise. Other necessary income channels highlighted have been EVs and demand-side administration, new vitality storage know-how, in addition to the introduction of microgrids. The report additionally discovered that:
New services and products will contribute to greater than 10% of firm income, in accordance to greater than a 3rd (36%) of these surveyed.
Regulated companies are wanting to increase internationally past their core markets – 42 % of the DSO’s are anticipating greater than 10 % of the income from the new vitality gross sales & providers.
The future enterprise position of utilities is altering:
The worth of standard energy era continues to decline, as low carbon producers can be central to the utilities trade by 2020, in accordance to 77% of respondents. Big investments are being made in wind energy era, significantly based mostly in the North Sea, demonstrating the significance in renewal vitality to the trade.
The ‘capability supplier’ position is ready to turn out to be more and more very important for European utilities amid the bigger affect of distributed, renewable and intermittent vitality sources. European utilities may have the alternative to place themselves as a ‘safety of provide’ guarantors.
Roberta Bigliani, VP IDC Energy Insights, stated: “The appetite for change in the European utilities sector has been driven by the forces of regulatory change and evolving consumer expectations, all of which is underpinned by a driving catalyst of digital technology. While there are some notable success stories, many utility companies are only now waking up to the true potential for digital innovation to help transform their businesses and add value to their operations. Our study identifies the big trends at play. But it also highlights that for large complex organizations, and with the speed of change demanded by the market, they must collaborate with the energy ecosystem in new ways.”
For extra info on the report, please go to TCS’ devoted microsite: http://info.tcs.com/grounding-utilities-dreams-of-new-revenue-streams/
**Sources: IDC White Paper, sponsored by Tata Consultancy Services, Grounding Utilities’ Dreams of New Revenue Streams, July 2017
About Tata Consultancy Services Ltd. (TCS)
Tata Consultancy Services is an IT providers, consulting and enterprise options group that delivers actual outcomes to world enterprise, guaranteeing a stage of certainty no different agency can match. TCS affords a consulting-led, built-in portfolio of IT, BPS,infrastructure, engineering and assurance providers. This is delivered by means of its distinctive Global Network Delivery Modelâ„¢, acknowledged as the benchmark of excellence in software program improvement. Part of the Tata group, India’s largest industrial conglomerate, TCS has over 389,000 of the world’s best-trained consultants in 45 nations. The firm generated consolidated revenues of US $ 17.6 billion for 12 months ended March 31, 2017 and is listed on the BSE (previously Bombay Stock Exchange) and the NSE (National Stock Exchange) in India.
For extra info, go to us at www.tcs.com
Report methodology
This IDC Executive Brief presents a piece of the main findings of the 2016 IDC Energy Ecosystem Survey, commissioned by TCS. The survey ran between October and November 2016, and coated 120 senior IT and non-IT decision-makers from European utilities throughout Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom.
IDC Energy Insights analysts shared the survey outcomes with senior utility executives throughout Europe for additional perception and validation. The IDC Executive Brief additionally captured the views of senior TCS subject-matter consultants.
This IDC Executive Brief is the third of three IDC Executive Briefs that analyze this particular survey on European utilities. It focuses on European utilities strategy to digital transformation by their know-how funding priorities, information structure and monetization methods and IT supply fashions. It additionally seems to be at how utilities suppose their IT capabilities ought to evolve to assist their new product and providers ambition.
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