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.
As a global leader in sourcing advised transactions, ISG has a proven track record supporting the largest global oil and gas companies, with over 150 engagements under our belt in just the last 5 years. We provide experienced advisors who give actionable advice to drive efficiency and tie outcomes to business value.
We're the market leader in terms of number and value of IT sourcing transactions completed. This has enabled us to assemble a comprehensive and unique set of data, analytics and market intelligence over 30+ years of data collection and analysis. Our data covers not only quantitative metrics like rates and pricing, but also qualitative views on personnel productivity, contract SLAs, contract lengths, service quality, as well as the sourcing trends shaking up the industry. All of this gives us unmatched insight into operational, financial and commercial best practices. We make these insights actionable by setting up a custom dashboard that compares your contracts with best practices, and give recommendations on the supporting KPIs and SLAs that drive business value, customer experience and performance. Talk to us about how we can help you get more value out of your partner ecosystem and technology investments today.
ISG's full research report on the oil and gas industry is 60+ pages, and gives a thorough comparison of needs, trends and providers in the industry. To access the full report and a complimentary briefing on it, contact us!
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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.