Where Utilities Should Focus in 2024: Decarbonization and Cost Takeout
Looking ahead to 2024, we see a return to normalcy for utility leadership. One big exception here is the wildcard of generative AI.
ISG has a proven track record of supporting the largest global chemical companies - we've advised on over 600 chemicals industry engagements in the last 5 years alone. We bring experience as industry leaders and as IT, business process and sourcing advisors on high-TCV, high-complexity outsourcing transactions across industries.
Beyond our depth of experience, ISG is unique for our data. We've assembled a comprehensive and unique set of data, analytics and market intelligence built through 30+ years of data collection and analysis around pricing, contracts and sourcing. This data gives us unmatched insights into operational, financial and commercial best practices. And it's not just the largest real-time market price database in the world, it's also a tool to ensure long-term competitiveness of contracts and to model future scenarios for impact of automation, transformation and consolidation. Our advisory services cover assessing gaps, building actionable strategies, sourcing partners, supporting digital transformation, optimizing costs and ensuring value realization.
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Learn MoreAsset management is an important area of focus in asset-intensive industries, such as oil and gas, metals and mining, industrial machinery, and power and utilities. The need to increase the life span of equipment, plants, machinery and other assets is driving the adoption of asset management tools and software. Implementing EAM software helps utilities and companies from other assetintensive industries improve efficiency, lower emissions and reduce costs, with maximum uptime and reliability.
North American power and utilities industry may not drive global headlines but faces considerable headwinds such as increasing clean energy adoption (decarbonization), ensuring grid and service reliability and resiliency, improving infrastructure security, and optimizing costs.
The oil and gas industry is going through a phase of long-standing uncertainties. An unpredictable economy, the Russia- Ukraine conflict, reduced investment in upstream assets, price volatility and energy transition initiatives have all created an imbalance in supply and demand. Despite the uncertainties, rising oil prices resulted in record revenues and profits for major oil and gas companies. Majors have posted profits much higher than their previous year’s numbers. For example, BP posted a profit of $8.15 billion in the third (July to September) quarter of 2022, which is approximately 1.5 times the previous year’s number.
Embracing a cloud-based ERP application may be the single most important move you can make to springboard your organization into true digital transformation.