While the utilities sector is undergoing digital transformation companies are still facing a number of hurdles, the prominent is a weak digital strategy.
In a survey commission by OpenText, Australian executives were asked what they saw see as the key impediments to digital transformation in the utilities sector.
Over 30 per cent said weak digital strategy followed by difficulty in securing investment and access to skills and capabilities.
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The report by OpenText also highlighted this information was consistent with findings by Gartner.
Gartner’s 2019 CIO Agenda Utility Insights asked CIOs “How effective is your company at making digital an integral part of business strategy and planning?”.
Gartner found that top performers in the market were much further advanced in implementing their strategies and had typically arrived at the stage where they were looking at scaling or refining their transformation efforts.
The OpenText survey suggested that access to skills is seen as an impediment to transformation, although somewhat counter intuitively, most companies were happy with their current skills mix.
Instead this result probably reflects the need to more aggressively engage with emerging technologies such as AI and machine learning, or distributed ledger technology, the report suggested.
Difficulty securing investment was the second most common problem.
Boards and CEOs have embraced the leadership of this change, and have taken responsibility for driving it forward. They also fully recognise the need to embed new thinking within the culture of their organisations.
From the survey, 47 per cent of respondents said the leadership of their organisation understands the challenges of digital transformation and is developing a strategy to manage the change.
Followed by 26 per cent, who said there is a strategy in place to manage the change, 14 per cent said the leadership understands the challenge but has no strategy and 11 per cent said its leadership doesn’t understand the challenges it will face from digital transformation.