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Let’s Build a
Smarter Planet:
Energy and Utilities–
Empowering the Consumer
Global financial crisis has had lasting impacts on the overall market.
Volatility in price and demand for energy worldwide.
Growing concern about the effects of climate change.
Increasingly empowered and interconnected consumers.
7 in 10
Utilities CEOs anticipate turbulent
17%
69%
21%
74%
24%
19%
19%
Drop in utilities CEOs’ confidence
in their organizations’ ability to
2008 2006 2008
manage change.
No/limited Change
Moderate Change
6 Source: 2008 IBM CEO Study Substantial Change © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer
CONSUMER EMPOWERMENT
Newly empowered consumers are leveraging provider choice options, actively managing
their usage, moving toward self-generation of power and making their voices heard
through multiple channels.
TECHNOLOGY INNOVATION
Lower-cost communications, more cost-effective computing and open standards are
strengthening the business case for technology innovation in the energy and utilities
industry. Technologies such as smart meters, network analytics and distributed
generation are changing the way energy is created and delivered.
LOCAL AND
ENERGY AND ENVIRONMENT
GLOBAL
UTILITIES AND SOCIETY
ECONOMIES
TRANSFORMING EMPOWERING
THE UTILITY NETWORK THE CONSUMER
Transforming the utility network Empowering consumers
from a rigid analog system to a by providing them with near
dynamic and automated energy ENERGY AND
real-time, detailed information
delivery system. UTILITIES about their energy usage.
INSTRUMENTED
We now have the ability to measure, sense
and see the exact condition of everything.
INTERCONNECTED
People, systems and objects can
communicate and interact with each
other in entirely new ways.
INTELLIGENT
We can respond to changes quickly and
accurately, and get better results by
predicting and optimizing for future events.
+ + =
An opportunity for energy and utilities organizations
to think and act in new ways.
Regulatory,
Asset, Device
Risk and
and Service
Compliance
Monitoring
Management
Improved Informed
Integration
Customer Decision
Optimization
Experience Making
Analytics
Collaboration
Security
Resiliency
Asset Business
Lifecycle Process
Management Automation
Security
Solutions
Key benefits:
An approach to align technology with utility business needs Reusable implementation patterns to lower risk
The ability to build a simplified enterprise architecture— Support for the adoption of open and industry standards
one project at a time A choice of business applications and services from IBM
Utility industry best practices and solution accelerators and IBM Business Partners
to speed deployment
16 © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer
1 2
SMART IS SMART IS
Providing consumers and businesses Updating and integrating customer
with tools to proactively analyze and systems to support the technology
manage their energy usage. evolution and new business
requirements.
3 SMART IS
Knowing how to incorporate new
and localized energy resources
into the utility network.
Communication channels
Utility Consumer
Usage information
Energy
Action Devices
Utilities are employing smarter technologies and applications to enhance and improve
customer relationships.
The benefits:
• Increased customer satisfaction • Alignment of values between
the utility and its customers
• New revenue streams through
additional products and services • Automatic control for convenient
and lower costs per customer usage adjustments
Energie Baden-Württemberg: Worked with IBM to put A centralized energy market operator: Seeking to improve
in place a first-of-a-kind solution that generates and the quality of service they could offer, three utility providers
displays the underlying price of electricity as it changes in one U.S. state wanted to provide energy consumers with
throughout the day. In addition to providing a basis for direct access to their consumption metrics. The organizations
changing consumption behavior, it also establishes a hoped that by being better informed, consumers would be able
low-cost platform for changing EnBW’s customer-facing to act more responsibly when it came to their energy use.
processes like billing.
Regulatory,
Asset, Device
Risk and
and Service
Compliance
Monitoring
Management
Improved Informed
Integration
Customer Decision
Optimization
Experience Making
Analytics
Collaboration
Security
Resiliency
Asset Business
Lifecycle Process
Management Automation
Security
Solutions
Smart Metering and Beyond: Customer Intelligence and Analytics: Customer Web Portals:
Transforms distributed utility Provides fact-based input and Enables next-generation online
operations by extending operational customer-oriented methods to drive capabilities across new business
awareness of consumer demand to customer insight across marketing, processes, customer experience
the end points of the utility network sales and service. and technology innovation.
and into the customer premises.
Meter Data
Customer
Management
Relationship
Management
Mobile System
Workforce
Load
Management
Outage
Management Customer Communication Customer
Information channels
System
Geospatial
Information
System
Data
Insight
With customers’ emerging role as both a supplier and consumer of energy, there is a need
for utilities to enhance tools and technologies to better integrate the customers’ participation
in the value chain.
26 © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer
The benefits:
• Leveraged meter data • New tools and information
availability for customer care agents
• Improved billing flexibility and
scalability • More accurate billing information
A Canadian regulator: Launched a pilot time-of-use A U.S. utility: Anticipates lowering its own operating
program that rewards consumers for using less power costs while helping its customers lower their energy bills.
during times of shortage or peak demand, leading The ability to monitor and change energy use through
participants to shift 25% of their usage away from smart grid technology will save customers money and
peak hours. lower general energy consumption.
Wind
Energy
Solar storage
Innovative processes and systems enable the utility to incorporate new energy resources
into the grid, to manage and maintain those resources, and to ensure the necessary flow
of information and finances among participants.
The benefits:
• Ensure the safe and reliable • Ensure efficient transactions—i.e.,
operation of the network both utilities and consumers are
fairly compensated
• Provide distributed energy
technologies at the lowest cost
European Demonstration Project: IBM Global Business MVV Energie: Teamed with IBM Global Business Services
Services and IBM Research developed a real-time energy and others to create a virtual marketplace that provides
monitoring and management solution that can balance the energy companies and customers with real-time energy
charging of vehicles against the availability of wind energy generation, consumption and availability data. Users can
reserves. Conversely, the solution can draw energy employ this solution, which leverages IBM WebSphere MQ
reserves and regulation power back from the cars into the Telemetry Transport software, to monitor local energy
grid to stabilize energy availability. An advanced modeling reserves and view current pricing for outside energy sources.
and run-time solution, hosted on IBM BladeCenter servers,
is used to analyze the collected data and host the real-time
analytics and portal software.
Electric Vehicles: Visioning and strategy to support the Renewable Energy Resources: Visioning, strategy and
various business models which may develop around the development of IT and communications infrastructure
supply and demand of electricity with PHEVs and EVs. required to integrate distributed energy into the utility network
Development of IT infrastructure and standards required and to gain visibility that will enable better management of
to enable the supply and billing of electricity to PHEV and electricity supply and demand.
EV mobile customers.
Why IBM?
Only IBM can provide the unique combination of technology and expertise you need to
ensure reliable, cost-effective and environmentally sound operations across the energy
and utility value chain—from the source, through the grid, to the end consumer.
1 Choose a project
and implement it
to achieve
2 Build on the value
of previous projects,
reusing assets and
3 Achieve a simplified,
strategic infrastructure.
Choice: Utilities choose the solutions that provide the most value to them, in the order and
at the pace that makes the most sense.
Lower risk: Incremental projects, each with a defined payback period, are more easily
scoped and implemented—and build on infrastructure deployed in previous phases.
ENVIRONMENTAL CONCERNS
Consumers are increasingly concerned about the environmental impact of the products they
buy, including energy. As a result, they are demanding that utilities provide them with new
sources of energy and more information that will enable them to make smarter decisions.
Strategy
2
Prioritization
Invest in the transformation of your infrastructure.
3
Integration
Share data across the value chain to promote smarter consumption.
Optimization
5
Discovery
Identify the next frontier for energy and utilities locally and globally.
APPENDIX
+ + =
An opportunity for energy and utilities organizations
to think and act in new ways.