Energy & Utilities: Deregulation, Record Demand, And High Prices Challenge Utilities
Web services, CRM, and BI tools are helping companies improve customer service and roll out new products and services.
Record heat waves, blackouts that hit both coasts, excessive demand for electricity, and rising prices for oil and natural gas have made this a rough year for energy companies and utilities. They're turning to technologies such as Web services, CRM, and business intelligence tools to better understand their customers, improve service, and roll out new products and services.
Regulatory shackles also are being relaxed, which is spurring a wave of mergers and acquisitions. How well companies use technology to get an edge on their competitors may help determine the industry's winners and losers.
While IT investment as a percentage of revenue slipped to 2.1% from 2.5% last year, 60% of the energy and utility execs surveyed by InformationWeek say they expect to increase their IT spending, with a focus on boosting operational efficiency and developing more effective field service. And to unleash data hidden in legacy applications, 60% have widely deployed business intelligence tools, and 70% have widely deployed Web services.
A key effort is to manage power usage, rather than just deliver it, using technology such as smart meters, which provide information on when energy is being used. With that data, energy providers can work with customers to reduce power usage during peak times when prices are highest. Air conditioners, for example, could be turned down a few degrees during the hottest times of the day.
At No. 8, Xcel Energy is ranked highest among InformationWeek 500 energy and utility companies.
Inside Energy & Utilities
of Industry's Annual Revenue Devoted to IT
of IT Budget Devoted to New Projects
of Companies Expecting 2006 IT Spending to Exceed 2005
Creating New Products/Services for Customers in 2006
with Global Supply Chain
Deploying Business Intelligence Tools to Raise Productivity
Building A Mobile Business MindsetAmong 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Join us for a roundup of the top stories on InformationWeek.com for the week of September 25, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."