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Data Management Discontent: Time For Change

Irfan Khan

An unpublished study commissioned by SAP and completed in July by IDG found discontent with data management systems brewing among IT executives. The survey of Computerworld’s Inner Circle Research Panel indicated a significant number are so dissatisfied with their current environment that they are considering migrating to a new platform to fix the problems they see.

Source: buddhaflow/Flickr

Changing data management environments is a serious IT endeavor, so the motivation must be compelling, particularly for large enterprises. The 200 respondents represented in the research cut across a broad range of industry segments and size, with an average of more than 15,000 employees. So, what would make these big companies consider such a migration?

No surprise here: money.

According to IDG’s research, “Managing costs and efficiencies across a complex infrastructure” is the top data management problem to wrestle with in the next 12 months for 56% of those polled. It seems most organizations are not getting the value they expect from their current data management environment.

If it were solely a money problem, CIOs could go hat in hand to their CFOs and ask for bigger budgets. It’s also possible CIOs could squeeze their vendors for better contracts to improve a system’s total cost of ownership. Threatening to change platforms can often inspire a current vendor to bend a bit on its margins.

But there are other data management shortcomings revealed in the survey that money can’t fix. For example, 46% of respondents say they need to improve real-time access and analysis of data; 41% need a better data management approach to support a growing mobile workforce; and 20 percent acknowledge that “delivering big data value to internal customers” will need a new solution.

As a result of all these and other ongoing data management issues, 49% in the survey “report plans to evaluate new data management approaches and solutions” within the next 24 months.

That’s an astonishing number. Think about it: half of those IT leaders surveyed are willing to spend the time and money needed to evaluate new data management environments because of the cost and shortcomings of their current system. While not all will migrate to a new platform, I suspect many will make the change. That promises tectonic change in the data management industry. Vendors beware!

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Hockey Fans Rejoice! SAPPHIRE NOW And ASUG Showcase The Ultimate Fan Experiences

Fred Isbell

Customer sessions at the SAPPHIRE NOW and ASUG conferences are always fascinating, spanning across the many industries and detailing the latest in best practices, technology, and innovative thinking. No one is left out – not even the most loyal hockey fan.

Last year, SAP CEO Bill McDermott brought the Stanley Cup – the “holy grail” of the National Hockey League (NHL) – on stage. Talk about an iconic moment! Bill was highlighting the new SAP analytics solution, which is currently enabling the NHL to calculate statistics on the SAP HANA platform and with a cloud-based solution. In fact, the NHL Network and NHL on NBC broadcasts have featured player profiles with insights generated by SAP solutions throughout this season, including the playoffs currently in progress.

Although the Stanley Cup didn’t pay a return visit to the SAPPHIRE NOW stage this year, I wasn’t at all disappointed after attending customer sessions featuring two elite hockey teams: Mannheim Adler Eagles and the San Jose Sharks.

The Mannheim Adler Eagles soar high

Mannheim is a German city that’s home to 400,000 people and the Mannheim Adler Eagles, a very successful professional ice hockey team in the German Hockey League (DEL). After winning the DEL championship seven times and hoisting the league’s version of the Stanley Cup last year, the Adler Eagles have been enjoying the limSANOW Hockey-1elight.

But with great success comes with some challenges. With an arena capacity of 13,500 fans, the team has 7,600 season ticket holders and averages 11,300 fans per home game.

The problem? The Adler Eagles didn’t know its fans as well as they would like.

And rising smartphone use and an increasing level of game fixation made this issue more apparent. The team’s organization needed to dramatically increase and tighten fan engagement before, during, and after games.

The solution was a fan app specifically designed for the Adler Eagles that runs on both Apple iOS and Android platforms. The mobile app rewards loyalty and engages fans with a coupon-center approach, where points accrued through team-related activities and ticket purchases can be used for discounted merchandise. Fans even receive points when the Eagles score a goal!

Overall, this approach is helping the Adler Eagles improve fan engagement, bring fans to the team store, and drive higher revenue. Unlike before, the team now has a much more complete profile and analysis of its fans available based on specific and real-time fan behavior. And with this information, the organization is rewarding loyalty, developing a core fan base within and beyond its season ticket holders, and personalizing marketing campaigns with greater ease.

Because this app has been so successful, Mannheim is even considering a version for the Apple Watch. The team is looking to expand its SAP solution by using wearables and sensor-based analytics that can help optimize team performance. At the same time, it will also increase its use of statistics with SAP solutions as the engine for data collection.

San Jose Sharks seize unprecedented customer insights

The San Jose Sharks, this year celebrating the team’s 25th year in existence, are one of the premier NHL franchises. Hasso Plattner, CEO of the SAP Executive Board, is the majority owner and holds a seat on the NHL Board of Governors. This is an excellent example of a midsized business with a lot happening around it – and with all of that activity comes a need for new systems.

The Sharks’ major business challenges were not unlike those of other fast-moving organizations facing new, expanded business needs. The Sharks’ business software systems were not up to speed with the business, compounded by a ticket-sales system that acted like an engine for lead management. Furthermore, every application was isolated and used as a standalone, creating islands of automation that made room for error and duplicate data.

SANOW Hockey-2

Consequently, there was an inherently inefficient sales process – and as we saw with the Adler Eagles, limited visibility into season ticket holders, including their renewal intent. The Sharks lacked one-on-one customer centricity and any understanding of the wider fan base. This situation significantly impaired the team’s sales pipeline and forecasts.

By turning to a solution for enhancing customer and fan engagement with a business goal of using data to turn insights into action, the team now has a holistic and 360-degree view of the customer while leveraging simplified data acquisition quickly in real time.  Responding to previous islands of automation, the new solution rapidly translates and converts information into value-added sales insight – giving the organization a single version of the truth.

The results the San Jose Sharks achieved were impressive. More than 70 people are now using the system and a quick rollout made for minimal impacts on its IT infrastructure. The team quickly realized improved sales and service processes, efficient lead management, and improved forecasting within its sales pipeline management. Season ticket renewals were at the highest level ever, thanks to better understanding of the fan experience and the ticket holders’ pains and expectations. Plus, the team is driving specific and targeted campaigns based on specific customer segments that result from the team data.

The Mannheim Adler Eagles and San Jose Sharks showcased innovative application of technology to their core sports business. And as always, the fans are the winners as they get to experience the coolest game on earth with two very successful and forward-thinking hockey teams.

For more, check our research brief on The Future of Sports Marketing: Play Locally, Think Globally, Drive Loyalty.

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About Fred Isbell

Fred Isbell is the Senior Director of SAP Digital Business Services Marketing at SAP. He is an experienced, results- and goal-oriented senior marketing executive with broad and extensive experience & expertise in high technology and marketing. He has a BA from Yale and an MBA from the Duke Fuqua School of Business.

How Big Data Is Changing The News Industry

Maggie Chan Jones

In the runup to the U.S. presidential election, newsrooms are working at a fever pitch. But if we slow down a minute to take a closer look at modern-day news organizations, we might ask ourselves: Can they really provide accurate, unbiased information on current events at Twitter speed?

News and the art of gathering it has evolved exponentially in the last few years. How the news is consumed is also light years away from where it was a decade ago. The explosive growth of the Internet and mobile devices has anyone and everyone broadcasting their opinions. The former broadcast news landscape has shattered into millions of different sources, platforms, and feeds, each using curated content models that cater to the reader, allowing them to pick and choose their sources.

With the expanding market of content platforms and multichannel news sources has come a myriad of perspectives. Does having this choice of who we listen to – or don’t listen to – make us unintentionally biased? This question is incredibly important to consider when we as a society come together to make informed decisions that impact everyone’s future.

Today’s major news organizations are balancing two realities. One is civic responsibility for reliable, responsible journalism. The other is profitability that mandates speedy content for readers on the go. This has forced news providers to become data-driven machines – seamlessly reacting across browsers, mobile screens, and social feeds 24×7. The imperative for speed has trumped traditional ways of reporting news. Data algorithms now drive content. Data-driven research and statistics have become an important source to supplement the day’s news. Third-party data tools are being used.

But this new focus on Big Data is also a curse. A petabyte of unprocessed, unstructured data is almost as useful as having no data at all. That’s why better tools to manage Big Data and stronger data algorithms are needed to create content that can benefit today’s readers. This is an important initiative for SAP, and we’re providing technology that is already impacting the way news is prepared and consumed for important current events, such as the upcoming U.S. presidential election.

As the exclusive sponsor of Reuters’ Polling Explorer, SAP is working with Reuters to provide journalists and consumers the latest polling data, stories about the election, and more. Real-time data is fueling Reuters with the tools needed to execute news with accuracy, speed, and integrity. The new polling explorer increased their readers’ engagement from 240K visits for all of 2012 election cycle to 6.2M just in the first four months since launch in November. The Reuters election app uses the new data system to match users with the candidate who best fits with their own political leanings. And Reuters can also use software to inform polling data and other data sets into data visualizations that provide facts and stats in a dynamic, interactive manner.

By providing technology platforms that are easy to use and scalable for any sized business, technology providers can give news providers across the world a trove of insights that impact their readers in real time, especially during momentous, breaking news cycles.

For more insight on the power of Big Data, see The Risk And Reward Of Big Data.

This story originally appeared on SAP Business Trends

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Maggie Chan Jones

About Maggie Chan Jones

Maggie Chan Jones is CMO of SAP, responsible for leading SAP’s global advertising and brand experience, customer audience marketing, and field and partner marketing functions across all markets. Her mission is to bring to life SAP’s vision to help the world run better and improve people’s lives through storytelling, and to accelerate company growth. A career-marketer in the technology industry, Maggie has held a succession of roles at Microsoft, Sun Microsystems and other technology companies.

Live Businesses Deliver a Personal Customer Experience Without Losing Trust

Lori Mitchell-Keller, Brian Walker, Johann Wrede, Polly Traylor, and Stephanie Overby

Trust is the foundation of customer relationships. People who don’t trust your business are not likely to become or remain customers.

The trust relationship has taken some big hits lately. Beloved brands like Chipotle and Toyota have seen customer trust ebb due to public perception of their roles in safety issues. Consumers continue to experience occasional data breaches from large brands.

Yet these traditional threats have short half-lives. The latest threat could last forever.

Most customers claim they want personalization across all the channels in which they interact with companies. Such personalization should create long-term loyalty by creating a new level of intimacy in the relationship.

sap_Q216_digital_double_feature3_images2But that intimacy comes at a high price. For personalization to work, brands need to gather unprecedented amounts of personal information about customers and continue to do so over the course of the relationship. Customers are already wary: 80% of consumers have updated their privacy settings recently, according to an article in VentureBeat.

Companies must get personalization right. If they do, customers are more likely to purchase again and less likely to switch to a competitor. Personalization is also an important step toward the holy grail of digital transformation: becoming a Live Business, capable of meeting customers with relevant and customized offers, products, and services in real time or in the moments of customers’ choosing.

When done wrong, personalization can cause customers to feel that they’ve been deceived and that their privacy has been violated. It can also turn into an uncomfortable headline. When Target used its database of customer purchases to send coupons for diapers to the home of an expectant teen before her father knew about the pregnancy, its action backfired. The incident became the centerpiece of a New York Times story on Target’s consumer intelligence gathering practices and privacy.

Straddling the Line of Trust

Customers can’t define the line between helpful and creepy, but they know it when they see it.

Research conducted by RichRelevance in 2015 made something abundantly clear: what marketers think is cool may be seen as creepy by consumers. For example, facial-recognition technology that identifies age and gender to target advertisements on digital screens is considered creepy by 73% of people surveyed. Yet consumers were happy about scanning a product on their mobile device to see product reviews and recommendations for other items they might like, the survey revealed. Here’s what else resonates as creepy or cool when it comes to digital engagement with consumers, courtesy of RichRelevance and Edelman Berland (now called Edelman).

Creepy

  • Shoppers are put off when salespeople greet them by name because of mobile phone signals or know their spending habits because of facial-recognition software.
  • Dynamic pricing, such as a digital display showing a lower price “just for you,” also puts shoppers off.
  • When brands collect data on consumers without their knowledge, 83% of people consider it an invasion of privacy, according to RichRelevance’s research, and 65% feel the same way about ads that follow them from Web site to Web site (retargeting).

Cool

  • Shoppers like mobile apps with interactive maps that efficiently guide them to products in the store.
  • They also like when their in-store location triggers a coupon or other promotion for a product nearby.
  • When a Web site reminds the consumer of past purchases, a majority of shoppers like it.

There are no hard-and-fast rules about which personalization tactics are creepy and which are cool, but trust is particularly threatened in face-to-face interactions. Nobody minds much if Amazon sends product recommendations through a computer, but when salespeople approach customers like a long-lost friend based on information collected without the customer’s knowledge or permission, the violation of trust feels much more personal and emotional. The stage is set for an angry, embarrassed customer to walk out  the door, forever.

sap_Q216_digital_double_feature3_images3It doesn’t help that the limits of trust shift constantly as social media tempts us to reveal more and more about ourselves and as companies’ data collection techniques continue to improve. It’s easy to cross the line from helpful to creepy or annoying (see Straddling the Line of Trust).

Online, customers are similarly choosy about personalization. For example, when online shoppers are simply looking at a product category, ads that matched their prior Web-browsing interests are ineffective, an MIT study reports. Yet after consumers have visited a review site to seek out information and are closer to a purchase, personalized content is more effective than generic ads.

Personalization Requires a Live Business

Yet the limits of trust are definitely shifting toward more personalization, not less. Customers already enjoy frictionless personalized experiences with digital-native companies like Uber, and they are applying those heightened expectations to all companies. For example, 91% of customers want to pick up where they left off when they switch between channels, according to Aspect research. And personalization is helpful when you receive recommendations for products that you would like based on previous in-store or online purchases.

sap_Q216_digital_double_feature3_images-0004Customers also want their interactions to be live—or in the moment they choose. Fulfilling that need means that companies must become Live Businesses, capable of creating a technological infrastructure that allows real-time interactions and that allows the entire organization—its structure, people, and processes—to respond to customers in all the moments that matter.

Coordinating across channels and meeting customers in the right moments with personalized interactions will become critical as the digital economy matures and customer expectations rise. For instance, when customers air complaints about a brand on social media, 72% expect a response within an hour, according to consulting firm Bain & Company. Meanwhile, an Accenture survey found that nearly 60% of consumers want real-time promotions; 48% like online reminders to order items that they might have run out of; and 51% like the idea of a one-click checkout, where they can skip payment method or shipping forms because the retailer has saved their preferences. Those types of services build trust, showing that companies care enough to understand their customers and send offers or information that save them time, money, or both.

So while trust is difficult to earn, once you’ve earned it and figured out how to maintain it, you can have customers for life—as long as you respect the shifting boundaries.

“Do customers think the company is truly acting with their best interests at heart, or is it just trying to feed the quarterly earnings beast?” asks Donna Peeples, a customer experience expert and the former chief customer experience officer at AIG. “Customer data should be accurate and timely, the company should be transparent about how the data is being used, and it should give customers control over data collection.”

sap_Q216_digital_double_feature3_images-0005How to Earn Trust for a Live Business

Despite spending US$600 billion on online purchases, U.S. consumers are concerned with transaction privacy, the 2015 Consumer Trust Survey from CA Security Council reveals. These concerns will become acute as Live Businesses make personalization across channels a reality.

Here are some ways to improve trust while moving forward with omnichannel personalization.

  • Determine the value of trust. Customers want to know what value they are getting in exchange for their data. An Accenture study found that the majority of consumers in the United States and the United Kingdom are willing to have trusted retailers use some of their personal data in order to present personalized and targeted products, services, recommendations, and offers.
    “If customers get substantial discounts or offers that are appealing to them, they are often more than willing to make that trade-off,” says Tom Davenport, author of Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. “But a lot of companies are cheap. They use the information but don’t give anything back. They make offers that aren’t particularly relevant or useful. They don’t give discounts for loyalty. They’re just trying to sell more.”
  • Let customers make the first move. Customers who voluntarily give up data are more likely to trust personalization across the channels where they do business. Mobile apps are a great way to invite customers to share more data in a more intimate relationship that they control. By entering the data they choose into the app, customers won’t be annoyed by personalization that’s built around it.
    For example, a leading luxury retailer’s sales associates may offer customers their favorite beverages based on information they entered into the app about their interests and preferences.
  • Simplify data collection and usage policies. Slapping a dense data- use policy written in legalese on the corporate website does little to earn customers’ trust. Instead, companies should think about the customer data transaction, such as what information the customer is giving them, how they’re using it, and what the result will be, and describe it as simply as possible.
    “Try to describe it in words so simple that your grandmother can understand it. And then ask your grandmother if it’s reasonable,” suggests Elea McDonnell Feit, assistant professor of marketing at Drexel University’s LeBow College of Business. “If your grandmother can’t understand what’s happening, you’ve got a problem.”
    The use of data should be totally transparent in the interaction itself, adds Feit. “When a company uses data to customize a service or offering to a customer, the customer should be able to figure out where the company got the data and immediately see how the company is providing added value to the customers by using the data,” Feit says.
  • Create trust through education. Yes, bombarding customers with generic offers and pushing those offers across the different Web sites they visit may boost profits over the short term, but customers will eventually become weary and mistrustful. To create trust that lasts and that supports personalization, educate the customers.

Procter & Gamble’s (P&G’s) Mean Stinks campaign for Secret deodorant encourages girl-to-girl anti-bullying posts on Twitter, Facebook, and Instagram. The pages let participants send apologies to those they have bullied; view videos; and share tips, tools, and challenges with their peers.

P&G has said that participation in Mean Stinks has helped drive market share increases for the core Secret brand as well as the specific line of deodorant promoted by the effort. Offering education without pushing products or services creates a sense that companies are putting customers’ interests before their own, which is one of the bedrock elements of trust. Opting in to personalization seems less risky to customers if they perceive that companies have built up a reserve of value and trust.

“Companies that do personalization well demonstrate that they care, respect customers’ time, know and understand their customers and their needs and interests,” says Peeples. “It also reinforces that interactions are not merely transactions but opportunities to build a long-term relationship with that customer.”

Laying the Foundation for Live, Personalized Omnichannel Processes

sap_Q216_digital_double_feature3_images-0006Creating a personalized omnichannel strategy that balances trust and business goals starts with knowing the customer. This can happen only when multiple aspects of your business are coordinated in a live fashion. But marketers today struggle to collect the kind of data that could drive more meaningful connections with customers. In an Infogroup survey of more than 500 marketers, only 21% said they are “very confident in the accuracy and completeness of their customer profiles.” A little over half of respondents said they aren’t collecting enough data overall.

Collecting enough of the right types of data requires more holistic data-collection techniques:

  • Take advantage of the lower costs for processing and storing terabytes of data, and develop a data strategy that combines and crunches all the customer data points needed to drive relevant interactions. This includes transactional, mobile, sensor, and  Web data.
  • Social media analytics is also a central tactic. Social profiles and activity are rich sources of data about behavior and character, merging what people buy or look for with their interests, for instance. Such data can feed predictive analytics and personalization campaigns.
  • Experiment with commercial tools that can filter and mine the data of customers and prospects in real time. This is a significant step beyond basic demographic data collections of the past.

sap_Q216_digital_double_feature3_images-0007Once the necessary data is available, companies need the technology, processes, and people to make sensible use of it in an omnichannel personalization strategy. Only when a company is organized as a Live Business can that happen. Here’s how your company can move toward being a Live Business:
Be live across channels. Having a consistent customer journey map across channels is core to omnichannel personalization. It requires integration across multiple systems and organizational silos to enable core capabilities, such as inventory visibility and purchase/pickup/return across channels. This integration also constitutes a major chunk of the transition to becoming a company that can act in the moments that matter most to customers. If all channels can sync in real time, customers can get what they want in the moment they want it.

Free the data scientists. Marketing rarely has full control over the omnichannel experience, but it is the undisputed leader in understanding customer behavior. While data science is part of that understanding, it has traditionally played a background role. Marketers need to bring the data scientists into efforts to sort through the different options for digitizing the omnichannel experience. The right data scientists understand not only how to use the tools but also how to apply the data to make accurate decisions and follow customers from channel to channel with personalized offers.

Walgreens’ Technology Approach to Personalization

Walgreens is a leader in building the kind of technology base that can enable real-time, omnichannel personalization. Its digital transformation is 16 years in the making, according to Jason Fei, senior director of architecture for digital engineering at Walgreens. At the heart of its infrastructure is a Big Data engine that feeds many customer interaction and omnichannel processes, including customer segmentation. The company adds third-party systems in areas such as predictive analytics and marketing software. Walgreens has a cloud-first strategy for all new applications, such as its image-processing and print-ordering applications. Other elements of the drugstore chain’s technology platform include:

  • Application programming interface (API)-driven architecture. Walgreens’ APIs enable more than 50 partners to connect with its apps and systems to drive customer-facing processes, including integrations with consumer wearables to drive reward points for healthy habits, as well as content partnerships with companies such as WebMD. “With APIs we can be an extensible business, allowing other companies to connect to us easily and help in the digital enablement of our physical stores,” Fei says.
  • Responsive Web sites. The company’s Web site is built using responsive and adaptive design practices so that the site automatically adapts to the consumer’s device, whether that is a mobile phone, tablet, or desktop computer. “We have a single code base that runs anywhere and delivers a consistent, optimized experience to all of our customers,” Fei says.

Making the Most of the Technology Base

This technology foundation has allowed Walgreens to push forward in personalization. For example, according to Fei the company uses sophisticated segmentation and personalization engines to drive outbound e-mail and text campaigns to customers based on their purchase history and profile. “We don’t blast out messages to customers; we use our personalization recommendations to be relevant,” says Fei.

The next phase of this strategy is to develop live inbound personalization tactics, such as recognizing customers when they come back to the Web site and tailoring their experience accordingly. These highly automated, self-learning systems improve over time, becoming more relevant at the moment a customer logs back in.

“When you search for a product, the Web site will take a good guess of what you might actually want. If you always print greeting cards at the same time of year, for example, the system would automatically deliver content around that,” Fei explains. “Everyone comes to Walgreens with a mission, so we can be very targeted with our communications.”

Walgreens’ mobile app combines real-time personalization with convenience. You can scan a pill bottle to refill a prescription, access coupons, send photos from your phone to print in the store, track rewards, and find the exact location of a product on the shelf.

Walgreens also recently deployed a new integrated interactive voice-response system that includes a personalization engine that recognizes the individual, says Troy Mills, vice president of customer care at Walgreens. The system can then predict the most probable reason for the customer’s call and quickly get them to the right individual for further help.

How to Get Started with Live Customer Experiences

sap_Q216_digital_double_feature3_images-0008As Fei can attest, getting Walgreens’ omnichannel and personalization infrastructure to this point has involved a lot of work, with much more to come. For companies just now embarking on this journey, especially midsize and large companies, getting started will mean overhauling an outdated and ineffective technology infrastructure where duplicate systems and processes for managing customer data, marketing programs, and transactions are common.

A bad internal user experience often transcends into a bad customer-facing experience, says Peeples. “We can’t afford the distractions of the latest app or social ‘shiny penny’ without addressing the root causes of our systems’ issues.”

Live Business Requires Striking the Right Balance

The boundaries of trust are a moving target. Sales tactics that used to be acceptable decades ago, such as the door-to-door salesperson, are unwelcome today to most homeowners. And consumers’ expectations are unpredictable. At the dawn of social media, many people were anxious about their photos unexpectedly showing up online. Now our identities are tagged and our posts and photos distributed and commented on regularly.

But while consumers are getting more comfortable with online technology and its trade-offs, they won’t put up with personalization efforts that make use of their data without their knowledge or permission. That data has value, and customers want to decide for themselves when it’s worth giving it away. Marketers need to strike the right balance between personalization and a healthy respect for the unique needs and concerns of individuals. D!

 

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Lori Mitchell-Keller

About Lori Mitchell-Keller

Lori Mitchell-Keller is the Executive Vice President and Global General Manager Consumer Industries at SAP. She leads the Retail, Wholesale Distribution, Consumer Products, and Life Sciences Industries with a strong focus on helping our customers transform their business and derive value while getting closer to their customers.

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Technology Trends Shaping The Way Utilities Work

Lloyd Adams

No one needs to tell you that the digital revolution is here to stay. Digital business is big business. This is especially true now that one-time novelties like the Internet and mass-scale analytics have exited their infancies. It’s safe to assume that while the digital transformation is not yet complete, it has extended to almost every corner of industry.

Chief among the ways in which technology is changing the world is in the realm of utilities. How we get our power matters, as does how it’s metered and distributed. Too little of it and the system isn’t working; too much and it becomes wasteful and inefficient. A happy middle ground both satisfies consumers and conserves resources. So how might the utility organizations use digital resources to make utilities more efficient?

How can we use technology to create a better world?

The wide array of digital resources makes it easier than ever before for utility companies to track their operations. This in turn enables them to respond to energy supply and demand more immediately. It also allows them to deliver electricity in a more responsive and less wasteful way.

The smart grid is a great example of how hyperconnectivity and supercomputing combine. Together they enable a much smarter means of energy distribution. The smart grid uses smart-meter technology in homes, renewable energy, and new data-driven systems to maintain efficient operations and save non-renewable resources.

The digital energy network is another cutting-edge idea. It enables a two-way flow of both power and information. Large stakeholders still help control the flow of electricity and energy. But now consumers can help as well. The result? Better efficiency, less waste.

Who showcases digital business models at their best?

Luckily, some utility front-runners are offering valuable insight into the future for all. Consider CenterPoint Energy. It integrates information technology and operational technology to emphasize streamlined results and conservation.

Or the Tokyo Electric Power Company. It aims to install 27 million residential smart meter devices by 2020. These meters track energy usage and relay it back to the central utility company. Such metering will help the company make better, greener decisions about energy usage.

Then there’s Tesla, which already has a reputation for cutting-edge environmentalism. Its Powerwall lithium ion battery enables homes to store solar energy. This historically tricky feat will allow residents to “go net zero.” That means keeping their home off the grid entirely.

Each digital business models showcases a different strategy. Together, these strategies can transform our current energy economy. The result? Environmental resource management on a scale never before seen.

Will you benefit from going digital?

Yes. Like any powerful technology, these digital business models reward utility companies who adopt them early. Using digital tools to monitor operations and output has many benefits. You can grow your company for stakeholders and shareholders. You can differentiate from competitors. And you can clean up power for the sake of your city and the world.

Of course, most likely you’ve already incorporated a fair bit of digital technology into your operations. If you’re like many utility companies, though, there’s much more you can do. Engage with customers more meaningfully by making them partners in the metering process. Digitize your business to streamline information gathering. Pair up with same or similar businesses to achieve economies of scale

These approaches enable energy portfolio management on scales never before seen. The result for your business goes well past innovation. You’ll also see differentiation, growth, and competitiveness on a whole new level.

For more information on Digital Transformation for Utilities, click here.

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Lloyd Adams

About Lloyd Adams

Lloyd Adams is national vice president of Utilities for SAP North America. In this role, he is responsible for sales and customer relations in the SAP Utilities North America practice.