Business Drivers

Operational Challenges

Operational Challenges

The energy & utilities and oil & gas industries have traditionally been slower in adopting next-gen technologies such as IoT, including utilizing asset-generated data and IoT platforms, to enable connected enterprises leveraging real-time insights. The unique challenges and the changed circumstances in recent times are, however, forcing organizations to revisit their operational models, and introduce a greater degree of end-to-end visibility and decision making powered by IoT sensors, platforms, and analytics dashboards that boost business transformation.

  • The operating margins of E&U businesses have been declining steadily as the industry continues to be plagued by increasing downtimes, glaring skill gaps that exist between field personnel and trained workforce, falling workforce and asset utilization—resulting in lower quality of services—underlining the need to establish smart and connected mixed reality technology solutions.
  • A lack of relevant, real-time, data-driven insights into operations are impacting asset health and performance. Ageing infrastructures, poor asset reliability and limited visibility into asset conditions are resulting in fluctuating load patterns that ultimately impact power reliability.
  • The generated real-time insights get stored into silos, hampering utilization of OT-insights in building smart, AI-led predictive models that can deliver IoT-led optimization and efficiencies. Continued usage of paperwork, manual processes and siloed software systems regularly drive down operational efficiencies.
  • Hazardous field operations increase human costs of inspection of assets located in dangerous terrains. Substitute inspection methods using helicopters are expensive and have resulted in accidents. Meanwhile, vegetation management and changing regulations are a major cause of concern for the E&U industry as they bring in their wake massive penalties.
  • Frequent outages due to rising floods, storms, wildfires continue to hamper reliability, lowering resilience and quality of service delivery—with >73% of outages lasting between a few minutes to more than an hour, at least—thus stressing on the need to adopt IoT-led next-gen technologies at the enterprise level, producing intelligent and smarter grids.
Our Proposition

Financial Impact

The financial impact of outmoded operations, lack of real-time data-driven decision-making and otherwise easily avoidable penalties put massive strain on the bottom line of utilities and oil & gas businesses. AI/ML and deep learning technology solutions, leveraging live insights and analytics across T&D networks and enterprises, can reverse this trend and improve profit margins.

  • US Utilities spend up to 54 USD Bn on ageing infrastructure annually—rerouting loads through smartly identified, less utilized infrastructure can reduce incidence of outages, while bringing down costs drastically.
  • Field crew and helicopter driven asset inspection methods and maintenance of T&D lines cost US Utilities about $6Bn - $8Bn annually on an average—combining drones and intelligent image analytics can be achieved at a fraction of the cost.
  • Penalties from wildfires caused due to vegetation encroachment on high power T&D lines can reach up to ~$30 Bn+ in damages and maybe even leading to bankruptcy filings.
  • Approximately 400 Utilities in US market are in one way or another in the midst of grid modernization and will establish ADMS test labs in a phased manner in next few years—thus underlining the importance of maximizing utilization of ADMS platforms and precise, powerful ADMS testing approaches that can result in higher cost savings.
  • For critical organizations like manufacturing healthcare, data centers – outages can cost anywhere between 100,000 USD to 300,000 USD for a single hour of downtime. Small franchises are hit worst, with 70% reporting losses, therefore, financial losses are not just limited to utilities and O&G industries, but to the end customers as well. Smart, self-healing grids powered by IoT-led insights from the field can introduce end-to-end operational visibility, thus eliminating outages and improving service delivery.
The Impact

End-customer Experience

For a primarily end-customer facing industry like E&U, their customer experience score is one of the lowest globally. This results from a combination of factors that include, but are not limited to, poor service delivery, low reliability and resilience, more frequent outages, and a lack of smart, connected, IoT-led technology solutions.

  • 64% healthcare, 52% data centers, and 53% manufacturing organizations have expressed dissatisfaction at power reliability from their utilities service providers.
  • Natural calamities causing outages or disruptions in a specific area in the T&D network, or along gas pipelines can result in long outages, downtimes, and impact customer satisfaction
  • Customer expectations have risen dramatically supported by socio-economic shifts in demographics and lifestyles—reliable “always on” electricity is a minimum qualifier—can only be achieved through real-time actionable data, driven by next-gen technologies, available at all times.
  • Real-time, data-driven, testing interventions ensure that the distribution and outage management systems need to be robust enough to stand up to stress from heavy load—based on real-time insights—thus delivering reliability and resilience in the face of dynamic environmental conditions.

Our Propositions

Driving transformation at scale with measurable outcomes