Mobility fuels growth

VIEW POINT Mobility Fuels Growth for Utility Companies

Abstract Mobile has radically changed the face of customer service and utilities companies are not unaffected by this trend. As more and more users turn to their mobiles for apps and services, employees are expecting their companies to become mobile-enabled and issue tablets and smartphones for work functions. Customers in-turn expect their utilities to be mobile friendly as it is their primary mode of communication.

With mobile based technologies like smart metering and smart-grid becoming more mainstream, the need for utility companies have a comprehensive mobile strategy has never been more important. This paper presents our view on what utility companies need to do to leverage this tsunami of technological change driving the IT industry.

Introduction In today’s marketplace utility companies

Further, technological innovation has led

With green initiatives taking greater

are battling several dynamic economic

to consumers leveraging new channels to

precedence among consumers, utility

forces such as smart-grid initiatives, smart

engage with service providers. Disruptive

companies are already seeking newer

metering, high energy prices, product

trends such as cloud, social and mobile

and better business models that can

consolidation etc. Staying ahead of

has led to consumers demanding quality

drive sustainability. According to a report,

the competition requires overcoming

customer service. These trends are creating

13.4% of the meters used in the US were

herculean challenges of improving service

a larger demand for customer-focused

smart meters and an additional 65 million

delivery and reducing critical response

business processes and making existing

smart meters are expected to be deployed

time. For instance, the violent wind storm

application architecture obsolete (2). Rising

by 2015 (2). These indicate a significant

that hit Southern California in 2011 left

customer expectations are forcing utility

change in consumer behavior that is being

over 200,000 residents without electricity.

companies to leverage new trends if they

driven by the need to know more about

Faced with the aftermath of the storm,

are to retain their competitive edge and

energy consumption and how to optimize

utility companies were unable to respond

infuse innovation into their offerings.

usage.

As more and more users turn to their

Thus, the utility sector is at the threshold of change driven by changing consumer mindsets and newer technologies. With the benefits of instant communication and prompt response, mobility is the way forward for utility companies seeking to retain their edge.

in time leading to extended outages and extremely dissatisfied customers.

mobiles for apps and services, employees

The influx of new technological trends is

are expecting their companies to become

creating a dynamic shift in the business

mobile-enabled and issue tablets

and Information Technology (IT) landscape

and smartphones for work functions.

of utilities. Enterprises are seeking ways to

Enterprise mobility solutions can enable

revamp their business models and enable

employees to access enterprise data on-

technology to deliver flexibility, visibility,

the-go. According to Gartner, several CIOs

engagement. For instance, preventing

already recognize that mobility increases

disruption of services from natural disasters

productivity and enable quick decision-

requires improved communication

making, particularly for sales and field

whereby critical information is streamed

teams (1).

from the field to ensure instant visibility and quick responses from emergency operations and teams.

The Need for Mobility To succeed in today’s digital age, it is imperative for utility and energy companies to create a successful IT strategy that is based on an understanding of new business trends (3). For instance, user demand from consumers and employees as well as the need for a business strategy that enables agility through mobile is driving higher adoption of mobility solutions across several enterprises (1).

The power of mobility in the utilities sector can help enterprises better manage their work force, equipment and tools, run field operations efficiently, maintain service and equipment reliability, ensure regulatory

enterprises to adopt mobile and wireless

Currently, several utility companies are

compliance, and adhere to health and

technologies is to lower service costs and

already considering the implications of

safety.

improve the accuracy and effectiveness

moving to mobile-enabled solutions. They

of the field force (4). For instance, current

are seeking ways to optimize technology

mobile and location technologies are

platforms to support mobile applications.

including the delivery of field service work

This requires establishing a balance

and asset information through maps,

between various operating systems

equipment specifications and maintenance

available for iOS-based tablets and Android

history between field workers (3). When

devices in order to ensure they meet

armed with such technology with real-time

enterprise needs as well as the pressing

capabilities, field technicians will be able to

needs of field teams.

To enable these benefits, enterprises need certain mechanisms that can monitor and analyze various types of data to ensure smooth workflows. When combined with technologies such as Radio Frequency Identification (RFID), location-based services and Business Intelligence (BI)/ analytics, mobility can play a critical role in driving process optimization and business

perform a wide range of business functions on-the-go.

productivity.

At the outset, it is important for enterprises seeking to adopt mobility to consider a futuristic approach. In fact, Mobile Device Management (MDM) is already becoming a key focus area whereby enterprises are looking for ways to introduce MDM into their device management strategies (1). As the utilities sector moves into a new age, companies that are able to adopt mobility and implement robust technology-based solutions will be ones that benefit from higher business success and value.

With the introduction of consumer mobile apps in the utility sector, enterprises are

Further, as smart-grid initiatives make

turning to Mobile Device Management

critical headway, more utility companies

(MDM) solutions to maintain control

are looking for ways to drive adoption

of application security and data. While

and engagement among consumers

MDM products such as Mobile Iron,

and governments. One way to do is to

Afaria etc help manage mobile devices

enable customer access to data on energy

owned by enterprise, Mobile Application

usage by forming partnerships with

Management (MAM) is used in Business-to-

application developers and providing

Consumer (B2C) contexts where consumers

utility-branded applications to forge

use their own devices.

stronger customer relationships. In fact, market reports predict that by 2016, half of the utility consumers in U.S will have access to energy-use data (2). Some

The most important area where mobility

utility companies are already leveraging

can make a difference is the way it

mobile technology to support machine-

empowers field teams. According to

to-machine communications owing to

reports, the two main reasons for utilities

deployment of smart grid devices (3).

Further, implementing mobility solutions requires enterprise-wide training to ensure that all employees become adept in leveraging the power of mobility. Audio/ video tutorials are being employed to remotely assist teams that are already on the field. Energy services companies

are already leveraging 3D rendering of

Enterprises should consider the data

infrastructure for mobility implementation.

images to conduct diagnostic services.

synchronization challenges between

Managing such infrastructure expansion

For instance, a three dimensional view of

legacy systems and newer applications.

with tight budgets, or gaining access

a wellbore trajectory that contains survey

Besides the technology challenges of such

to funding for the same is a significant

and log data can be used by field operators

integration, they also need to consider

challenge and a key deterrent in enabling

to accurately monitor operational risk and

establishing process groups to assess the

mobility initiatives to move forward. For

ensure safety of rig operations.

impact of mobilization on various business

most IT organizations, the solution to

processes. In such a scenario, companies

such funding challenges is to support the

need to choose their adoption strategy –

basic infrastructure and platforms by later

whether it will be a phased solution rollout or a big bang approach.

delivering it as a Cloud-based service to the

To ensure smooth operations, enterprises need systems that can conduct complex data processing to obtain actionable insights. This requires robust analytics

business units i.e., Platform-as-a-Service (PaaS). IT organizations funding to stand

that can periodically survey data related

Companies need to devise a sound plan

to weather, water elevation, Geographical

for integrating mobile applications with

Information Systems (GIS), and maps and

existing enterprise systems. Lack of a

provide business intelligence in different

sound integration strategy can lead to

layers in a mobile app with the ability

service failures and gaps in response time

to scroll and drill down. Such complex

that adversely affects service quality. In

Mobility presents a new avenue for

analytics become crucial in providing

today’s digitally connected world, such

delivering better user experience.

vital information during major events and

failures in utility reliability are receiving

However, enterprises should be careful

reducing field response time.

more publicity owing to social media (4).

to ensure that the user interface design is

Thus, it is critical for enterprises to maintain

in sync with the needs of the enterprise.

service standards when migrating to

These interfaces should have optimum

mobile applications to ensure customer

number of screens that can simplify

satisfaction.

workflows without compromising user

Challenges for Utilities Going Mobile While the benefits of mobility are vast, utility companies must be aware of

The issue of security in a mobile world is

up this basic infrastructure and platform is later providing this as “PaaS” (Platform as a service) to the business units. (please clarify what this means)

requirements.

also a pressing concern for enterprises.

Thus, adopting mobility solutions is

According to a report, managing security

riddled with several challenges for utilities

is the key inhibitor to adopting mobility

enterprises. They need to choose the

solutions as mobile platforms are not as

right mobility solution that can become a

evolved as desktop ones and are prone

business enabler. To do this, it is important

to security attacks (1). Enterprises also

to understand the business environment

need to be mindful of the challenges

and align corporate IT strategy with

in establishing a stable regulatory

business requirements (3). As field service

environment. Further, device ownership

is mainly targeted by technology-based

presents additional challenges of liability

vendors, enterprises may be tempted to

and service costs (1). Thus, enterprises

adopt packaged or market-ready solutions.

which requires collaboration across

need a strategy that addresses security

However, such solutions have generic

management and departments. As part

and compliance for the enterprise and its

out-of-the-box features that need to be

of this, enterprises need to create a

customers during the mobile application

customized and extended to provide the

decision tree that selects candidates for

planning and design phase.

expected business value. Utility companies

the challenges involved in adopting mobility. To implement mobility at an enterprise level, companies should first create a strategic roadmap. They need an integrated strategy that can monitor their workforce, improve operational efficiency and meet customer expectations of quicker and better service.

Most companies struggle with how to prioritize their mobility initiatives,

mobile enablement and assessment and identifies the optimum development architecture for mobility. This also requires developing several proof-of-concepts to secure applications from future risk as technologies evolve.

For most companies adopting enterprise mobility requires critical decisions about expanding the existing IT infrastructure in order to support mobile applications. This puts additional strain on IT departments that need to manage the underlying

need to engage a platform-agnostic mobile solution architect that can drive specification, design and delivery of the mobile components while creating their platform of choice.

How Mobility Can Pave the Way Forward

approval members to browse through workflow items that are pending for approval and take necessary action from

A well-integrated mobility solution

their Blackberry and iOS mobile devices.

strategy can deliver significant value for

The application required minimal support

utility companies provided that enterprises

and became an invaluable tool in providing

adopt a holistic approach to solution

users with just-in-time information on

implementation. Piecemeal solutions

pending approvals.

across the enterprise cannot deliver promised benefits as it compromises the basic tenets of collaboration and visibility that are driven by mobility. Enterprises that leverage the right solution approach can benefit from the right competitive advantage:

Drive efficiency by enabling mobile technology for field teams Mobile-enabled field service teams can perform a wider range of business functions thereby improving service quality and increasing customer

Further, the key success lever of mobility is its ability to drive personal and versatile engagement. Through mobile applications that are delivered on mobile devices and tablets, utility companies can ensure personal engagement and prompt communication with employees.

Mobile-based engagement also extends to consumers through the use of customercentric apps that allow consumers to instantly access information and connect with their utility service providers .

For instance, a power outage mobile application opens up a new channel for two-way communication on power outages. Not only can utility companies provide vital information to the public, but users themselves can inform the company about unannounced outages through their mobile devices.

satisfaction. For instance, a leading

Enhance reliability of processes and equipment Reliability of the equipment in the field is necessary for timely repair, maintenance and asset tracking. Mobility can enhance operational reliability in the field and effectively manage customer escalations thereby improving customer satisfaction. Some companies are already leveraging mobility along with RFID for asset/ equipment tracking that captures equipment information, locates equipment and reports equipment status for better visibility into performance. For instance, an energy company was facing challenges in optimizing their equipment distribution across various locations. Field personnel were unable to get hold of the exact physical location of the assets owing to difficulties in identifying parameters such as the part number and serial number of the equipment. The inability to locate the assets and, therefore, complete preset maintenance routines in time led to reduced asset utilization rate. An RFID solution was employed to locate repair equipment within the plant and update its status in the SAP system through mobile devices used in the field. The solution increased the accuracy of tracking, thereby enabling a 50% increase in the asset utilization rate and improving productivity by nearly 15%.

Scandinavian-based utility company had a large field force for servicing energy meters and field equipment. The company implemented a mobile-based solution for real-time dispatch of critical information and real-time field response that included full local capability when out of wireless coverage. The mobility solution helped to increase overall productivity of field technicians leading to higher turnaround of completed work orders.

Optimize functions and drive engagement Mobility can optimize corporate functions such as Human Resources (HR) and finance by increasing approval rates and reducing processing time. For instance, a utility company leveraged a mobility solution to optimize their Purchase Requisition (PR) workflow resulting in a 25% reduction in the overall cycle time for the PR approvals.

Similarly a mobile application for Accounts Payable (AP) workflow approval allowed

Ensure compliance with mobility Compliance and regulations such as Public Utilities Regulatory Authority (PURA) requires utility companies to enable real-time damage assessment and outage restoration data from field crews. By establishing a robust mobile environment that equips the mobile field force with a suite of tools, companies can derive higher value from their mobility solutions.

Several utility companies make outage information publically available through consumer-facing mobile applications that provide consumers with critical insight into their outage range along with map of the current outages. Some of these common mobility apps are outage maps that provide a map of recent outages, outage search apps that determine outage status etc.

Improve operational productivity With mobility solutions driving efficiency across the board irrespective of industry, the utilities sector is witnessing a Compound Annual Growth Rate (CAGR) of 4.3% in 2012-2015 (1). Mobile applications increase employee productivity by improving business process management and executing workflow processes such as instantly checking inventory and reporting quality issues. As platform vendors such as SAP develop generic mobile apps for executing such workflows, utility companies have begun integrating these mobile applications with back-end processes that already run on SAP.

Enable value added services for customers Companies are creating a suite of mobile applications for their end customers as the best and quickest way to deliver value aside from core services. These mobile applications can be targeted to residential customers or industrial retailers. For instance, a leading utilities company deployed a mobile-based energy management system to track energy consumption and demand and provide this information to their customer – a large retailer. This has helped the retailer monitor energy usage and effectively reduce energy utility costs. Further, several utility companies are leveraging mobile interfaces and customer portals as new channels to report repair status. Customers can utilize such portals to report damage and street lighting outages thereby ensuring real-time response.

Conclusion

About the Author

As utility companies contend with ongoing challenges such as implementing green energy initiatives, devising new and sustainable business models and meeting rising consumer expectations, they are undergoing significant changes in their IT landscape. The pervasiveness of mobile devices, tablets and smartphones is creating a dynamic shift whereby utility companies are keen to on-board mobility solutions to drive engagement, efficiency, responsiveness and service quality.

Companies seeking to deploy mobility across their enterprise need to ensure they adopt a strategic implementation roadmap. The role of an experienced IT partner with expertise in consulting is critical to ensure that the mobility solution meets the business requirements, thereby delivering the promised value of mobility.

Manoj Narayan is a Senior Practice Engagement Manager with the Infosys mobility unit. He leads the mobility practice client services group for the industry vertical of Energy, Utilities, Communications and Services. He is responsible for strategy, sales and solutions for mobility service for this vertical. Manoj has over 17 years experience in IT across industry segments and diverse background in mobile strategy, testing and emerging trends in IT.

References 1. Market Trends: Mobility Solutions in Vertical Markets, Gartner, October 2011.

2. Predicts 2013: Energy and Utilities Challenged by Nexus of IT Forces and Technology Market Convergence, Gartner, November 2012.

3. Top 10 Technology Trends Impacting the Energy and Utility Industry in 2013, Gartner, March 2013.

4. Top 10 Business Trends Impacting the Utility Industry in 2013, Gartner, March 2013.

About Infosys Infosys is a global leader in consulting, technology and outsourcing solutions. As a proven partner focused on building tomorrow’s enterprise, Infosys enables clients in more than 30 countries to outperform the competition and stay ahead of the innovation curve. Ranked in the top tier of Forbes’ 100 most innovative companies, Infosys – with $7.4B in annual revenues and 155,000+ employees – provides enterprises with strategic insights on what lies ahead. We help enterprises transform and thrive in a changing world through strategic consulting, operational leadership and the co-creation of breakthrough solutions, including those in mobility, sustainability, big data and cloud computing.

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