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 the industry knowledge and experience to advise utilities on cloud and agile digital projects, divestitures, mergers and acquisitions and more.
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Many regulators put the onus on you to demonstrate that your costs are reasonable with outside benchmarks. When it comes to providing testimony as an expert witness for utilities, our competitors’ survey approach to data and benchmarking is not sufficiently dependable on the stand. At ISG, we do not collect benchmarking data through broad-based surveys, and we do not purchase data for benchmarking purposes. Instead, we provide:
Get visibility into the root causes of your gaps in performance and actionable recommendations to achieve the “right cost to serve.” Along with these key insights, ISG is experienced at testifying to our benchmarking methodologies and resulting studies in regulatory proceedings around the world.
ISG's full research report on the Utilities industry is a+60 pages, 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.