There’s been a significant amount of hype about the Smart Grid’s four Vs of data – volume, velocity, variety, and veracity. But there’s a missing element to these discussions, and that’s the fifth V – the value of data. In the Age of the Prosumer, the value of data has profound implications for the utility sector in general, and to defining consumer and prosumer value in particular. To excel in this new world of real and digital energy service choices, utilities will have to develop prosumer-centric operations and manage the data that is most valuable to them and their consumers and prosumers.
That’s not an easy task. Utilities are challenged to manage terabytes and petabytes of data with processes, tools, skillsets, and metrics designed for megabytes of data. As more devices become smart – capable of sensing and communicating status and accepting commands – the challenges to maintaining productive and cost effective operations will grow. Utilities can’t afford to engage in traditional siloed methods of learning – they will have to look to other sectors for knowledge, best practices, and tools.
As noted previously, other business sectors have knowledge that can be leveraged to good effect by utilities to avoid reinventing wheels of discovery and education. Some sectors are adept at tailoring promotions for both brick and mortar and online purchases (aka omni-channel strategies), to push discounts, loyalty program awards, and purchase suggestions. Their data expertise and best practice experiences can help utilities develop B2B2X marketing programs and definitions of consumer and prosumer value. The telecom sector has extensive expertise in segmentation and churn analytics. This sector also has standardized processes to ensure interoperable transactions with partners – knowledge that could be particularly useful to utilities to support the successful development and management of seamless digital energy services targeted to consumers and prosumers.
The good news is that there’s an entity called the TM Forum that collects and manages this repository of knowledge, and it is available to utilities as part of their Smart Energy program. TM Forum provides a neutral, open, and structured forum for collaboration between service providers and their vendors. Their goals are to reduce costs and risks, ease system and process integrations, and improve business and information agility. Members utilize consensus-built tools, metrics, and best practices to accelerate their initiatives in network operations modeling, customer experience management (CEM), and data architecture strategies.
For example, a tool called the Business Process Framework is a proven blueprint for enabling successful business transformations – something that can be extremely helpful for utilities as they revamp and restructure their operations to accommodate all the new data generated by Smart Grid solutions. What’s more, TM Forum supports projects called Catalysts to explore how their tools can be applied to different business sectors and their unique challenges.
There’s an ongoing Smart Energy Catalyst that has already demonstrated large-scale integration points and digital handshakes necessary to connect utility grid and back-office operations and concomitant applications to support digital energy services for consumers. Participants in this low-risk proof of concept project include utilities (BC Hydro, Hydro-Quebec, and Salzburg AG) and solution providers (Esri, Infonova, and BaseN, among others).
Learning by doing in the collaborative environment enabled by a Smart Energy Catalyst is a great first step for utilities to build expertise in data that supports strategic objectives. Getting the 5Vs of data right will be critical success factors for utilities to build prosumer-centric operations and properly define prosumer value.
Disclaimer: TM Forum is an SGL Partners client.