IDC Energy Insights‘ recent Web conference “IDC Energy Insights Predictions 2014: Worldwide Utilities” highlighted market predictions for the year ahead.
Featuring analysts Robert Parker, Roberta Bigliani, Jill Feblowitz, Gaia Galotti and Marcus Torchia, the session provided organizations with insight and perspective on long-term industry trends along with new themes on the horizon. The Predictions Web conference series is designed to help company leaders capitalize on emerging market opportunities and plan for future growth.
A hallmark of IDC’s offering for three decades, the annual Top 10 Predictions reports provide the company’s outlook on the information technology (IT) market across industries in the coming year. During the next 60 days, IDC will publish dozens of Top 10 Predictions documents for 2014.
The Top 10 Predictions are:
1. Utilities will hunt for flexibility and innovation in their operations and business models.
2. At high impact, microgrids will force business model change. At minimum, service opportunities will require it and distribution adaptation.
3. CIOs will devote more time and attention to working closely with line of business on cybersecurity, enlarging their scope of action.
4. Utility CIOs’ role will evolve, driven by information technology (IT) and operational technology (OT) convergence.
5. Eroding utility revenues and the increase of capital and operating costs will force utilities to develop analytics strategies.
6. Adaptive utilities will embrace dynamic resiliency to survive the ecosystem changes.
7. Utilities will need to seek new paths for data management to propel smart grid innovation.
8. Utilities’ multichannel customer management will call for platform and architecture investments.
9. Gamification will gain traction in utilities to create consumer engagement, loyalty and trust.
10. Global utilities’ IT spending will surpass $59.3 billion in 2014.
“Despite regional nuances, the global utilities industry is in the midst of a major paradigm shift,” said Roberta Bigliani, associate vice president, head of EMEA, IDC Energy Insights. “Flexibility and innovation are the new normal, and digital technologies and distributed generation are the cornerstone of the transformation across the entire value chain. In 2014, utilities will invest in analytics, mobility, cloud, social media and cybersecurity while CIOs will adopt alternative sourcing models to enable business agility and reduce IT investments. Leadership and governance of OT and IT integration will be crucial to avoid undermining innovation.”