In an Energy Central article, Guidehouse Insights discusses how restructuring business and operational models is critical to utilities’ evolution
The traditional utilities value proposition is built on reliability and predictability, which runs counter to the idea of disruptive innovation. With the onset of COVID-19 and climate change, utilities are being forced to rapidly transform as the global economy shifts to a more virtual, decentralized, and vulnerable reality.
In an article for Energy Central, Mackinnon Lawrence, director at Guidehouse and leader of Guidehouse Insights, explained that utilities need to be innovative in infrastructure and operational and business model resiliency to deal with threats and preserve future market share.
Lawrence said as the power industry navigates changes to the energy system, utilities will need to evolve into flexible service providers, or system orchestrators, that will oversee a distributed, two-way, highly networked Energy Cloud.
“Coupled with an energy transformation already underway, utilities need to approach the energy industry and its associated infrastructure differently, rethinking the customer value proposition and relentlessly innovating,” he said. “Risk management practices will need to change to address new evolving and emerging threats that complicate strategy execution, business model design, and enterprise operations.”