Digital Transformation And Energy.

Around the end of the 18th century, machines began to supplant manual labor in huge numbers, ushering in the first industrial revolution. The assembly line, introduced by Henry Ford (invented by Ransom Olds) at the start of the twentieth century, ushered in the second revolution of mass production. Recent social distance situation has accelerated computerized processes. Digitization, on the other hand, is no longer a transitory trend, but rather a way of contemporary life.

The current difficulties confronting the electrical industry are generally acknowledged. These include the technologycal and physical aging of every operational equipment (more than 50 percent of the assets of energy networks have an excess service life of more than 25 years, and the wear of electric power systems in different countries, according to various sources, ranges from 50 to 70 percent ).

The result of the centuries-old development of energy production in the two decades from 1950 to 1970, world energy consumption equaled the corresponding integrated indicator for the previous 100 years, and for the entire 20th century, humanity consumed energy in an amount comparable to the total indicator for the last 2 000 years . Because of the exponential growth in energy production and consumption, as well as the understanding that natural resources are limited, energy development approaches have had to be revised. There was a transition from gas to nuclear energy at the time, and in the distant future, solar energy and hydrogen (generated by nuclear power) would be the dominant energy carriers.

Enhancements to smart systems are desperately required in the energy business to boost efficiency and minimize capital and operational expenses. Furthermore, because transmitted electricity necessitates the exact equipment, you won’t save much money on transformers, power lines, and buildings. The electric power business has yet to achieve such an effective wireless communication since Nikola Tesla’s century-old tests on wireless energy transmission using the Wardenclyffe Tower were never finished (but recently renewed).

Automation and strong analytics will become the foundation of value chain management. Automated production will be set ranging from smart distribution networks to end-user devices and services. Industry leaders will acquire data ranging from the entire system to the individual customer and become more trusted advisers to energy than just asset managers or outside suppliers. All of this will help us to meet supervisory authority objectives while also providing high-quality services.

In the short term, digital transformation might increase an organization’s industry revenue by around 4% each year. The use of previously unanalyzed data, process automation, and focused application of digital solutions is the primary source of income development – both generation and distribution. While executing a digital transformation in the energy sector, work is done in accordance with the current operational model.

Identifying practices that have the most potential to save expenses while improving customer experience, for example. To realize the promise of robotization, the most advanced companies are redesigning or constructing back office activities from scratch. The following are examples of priority solutions:

  • automation of robotic processes, 
  • digitization of internal interfaces and customer interaction, enhanced data availability to employees for using it in decision-making, 
  • digitization of people management tools, 
  • and IT infrastructure upgrades.

Digitalization entails a fundamental redesign of the organization’s internal operations, from lowering the number of steps and pages of paperwork to automating decision making, in addition to automating present procedures or developing a multi-channel system of communication with the customer. The first candidates for digital transformation in energy distribution are procedures that entail a significant number of repeated actions: connecting new users, maintaining the network, managing investments, equipment data, and losses.

Octonius recommends concider five steps to digital transformation:

1. Create A Vision

The digital transformation process begins at the top, with organizational leaders who can convey to employees the practical benefits of digitalization.

2. Develop A Digital Strategy And Execution Plan

3. Assign A Responsible Team

Because digital transformation affects all levels of the organization and all types of activities, the program must cover the entire organization.

4. Gain New Competences And Skills

5. Purchase Or Construct Ecosystems

Some energy supply facilities build their own analytical tools and “smart” meter network, while others outsource these operations. Energy companies are increasingly partnering with start-ups and technology companies to develop new products and find cutting-edge solutions. Joint ventures are increasingly being employed to gain access to know-how and capabilities that a company may lack at this stage of growth. Furthermore, utilities and governments are partnering to develop solutions for electric mobility and smart cities.

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