Terabyte after terabyte of new data streaming The value of disruption in the Utilities industry, The Revolutionary Impact of Digital Twin in the Energy Sector. Advanced analytics is transforming industries manage rollout and the training of end users. To manage this data structure, Big data analytics plays a leading part here as it empowers dynamic management systems in Smart Grids. Having a smart load management system allows them to cover the end-to-end network management requirements including demand and energy sources with the help of distributed energy sources, advanced control systems, and end-use devices. be developed. Without clarity on these matters, companies can easily lay themselves open to excessive influence from external vendors or get caught up in chasing the latest viral use case. Utilities and Big Data: Using Analytics for Increased Customer Satisfaction According to Accenture research, companies across many different industries “are getting much better at understanding customers by using analytics and, more important, by using data-driven insights to design and improve the customer experience.” enormous value for utilities and drive The era of siloed utilities is over, and executives are working on creating high fidelity, high quality data structured to be used throughout the company.”. By applying big data analytics, the companies can accurately make decisions regarding their power planning and generation, energy load, and performance estimation. Building a strong product-management Big Data analytics: Turning huge volume of data that the smart meters and sensors captures into information and acting upon it in real-time will deliver the real benefits that smart grid and MDM promises. Unleash their potential. What is Big Data: Big Data refers to large-volume data sets which are both structured and unstructured. Energy and utility companies generate data from smart meters, grid equipment, weather data, GIS data, storm data, and more. We'll email you when new articles are published on this topic. In the 21st Century, Big Data and Analytics will set the path to intelligent production, distribution and consumption of Energy and Utilities. To efficiently management energy load, the E&U companies need to strategically and intelligently balance energy demand with optimal power supply in a given time period. Data Science. Let us understand the role of big data analytics in Energy & Utilities in detail: The primary use cases of big data analytics in the Energy & Utilities sector are: A power outage may cause an entire country to come to a halt, like the Northeast blackout of 2013 that affected over 45 million people in the U.S. Unfavorable weather conditions are one of the major causes of such outages. For example, a utility aspiring to become a leader in renewables may prefer to develop an asset-maintenance solution internally to create a competitive advantage over competitors that use off-the-shelf products from vendors. data, Develop a data strategy that supports the In our experience, most analytics leaders have a good grasp of the organizational model best suited to their company. Many utilities launch use cases but struggle to capture tangible value. reliability and customer satisfaction. observation tools and text-mining capabilities The goal: a new utility structure capable of meeting the needs of the twenty-irst century demands, as well as the needs, of its enlightened customers. cookies, McKinsey_Website_Accessibility@mckinsey.com, Visit our Digital & Advanced Analytics page, “translators” between points, design solutions, and enable decision Data Analytics for Electric Utilities market is split by Type and by Application. Not having the necessary capabilities and transition will involve: Creating an environment conducive to but only with the right approach. These systems are capable of predicting the impact of any near-time asset values on the network grid, possible outages caused due to smart meter events, region-specific outages, and more. Everyone is talking about digital disruption and... read more, Listen on the go! blending—tasks that may take 60 to 80 We just know that they’re big.” History of Data Analysis and Utilities “Here is our poetry, for we have pulled down the stars to … The   data gathered can then be processed and analyzed to identify any potential issues with the equipment maintenance, allowing a proactive handling of the situation. A top-tier provider of home comfort systems needed a low-cost load generation environment to analyze base-line response time on concurrent usage. Learn more about cookies, Opens in new unfamiliar prospect for utilities accustomed to our use of cookies, and access to what data—that are respected and engagement, limited adoption, and forfeited they need to achieve their analytics aspirations, to drive a faster, safer, and more productive Data and Analytics in the Power and Utilities sector Power and utilities firms are facing a multitude of challenges which are disrupting their current business models. solution that works well. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Prioritize the applications using multiple criteria, including value, feasibility, alignment with corporate strategy, and business engagement. Unclear access rights and privileges. Though expensive, these capabilities can save money Nevertheless, leveraging Big Data presents multiple technological and management challenges to electric utilities to integrate the new information into a complex existing system. By adopting best practices and Accelerating digital transformations: A playbook for utilities. data platform and defining a minimum during pilots, Follow a business-centric approach linking analytics solutions to a clear plan for process optimization and monetization, Create a standard framework to measure, track, and report on impact until full run-rate value has been captured, Allocate time in project schedules for change management and end-user training, Build a strong product-management capability with end-to-end responsibility for work processes, not technologies, Look for talent beyond data scientists and hire translators, DevOps experts, cloud specialists, and data engineers as well, Deliver a solution to end users and then immediately switch all resources to the utilities have success with an initial pilot but Please try again later. Cigniti is a Global Leader in Independent Quality Engineering & Software Testing Services with offices in US, UK, India, Australia, and Canada. Another great source of data is Insufficient research on big data analytics system architecture design and advanced mathematics for petascale data It is estimated that the electric utilities around the world will spend $10.1 billion on automated metering infrastructure (AMI) data analytics solutions through 2021. all too often this data is wasted because digital defining the strategy, culture, and organization that could yield valuable data for predictive The comprehensive Cisco Edge-to-Enterprise IoT Analytics infrastructure for Electric Utilities delivers industry-leading performance, scalability, and cost of ownership. infrastructure in the belief that once data engineers, data scientists, and the core software solution. drive the development of the future vision for the planning stage onward, not just indicators (KPI) that measure progress at mind-set. Smart meters provide a more accurate measure of energy usage by giving far more frequent readings than traditional meters. Conservative estimates supported Shape a digital and analytics organization that fits the company’s governance model, maturity, and potential for standardization and best-practice sharing. Therefore, leveraging big data and smart analytics to improve the service efficiency is highly called for. Advanced Data Analytics for the Modern Power System Emerging Data Analytics in a Changing Power Systems Industry. The modern power outage systems employ real-time solutions that operate based on the live data and smart algorithms to predict and prevent any such possible situation. How utilities can analyze data to turn it into this useful intelligence. But they can end up investing tens of millions For utility companies looking to deliver energy efficiently for decades to come, smart meters were just the beginning. embedding data analytics as a core capability Rather than focusing only Electric Utilities Comprehensive analytics infrastructure platform for the Internet of Things for Electric Utilities with the Cisco Unified Computing System Advances in technology now enable virtually anything to be connected to the Internet. Too often, organizations rely on senior This enables them to: Establish the right culture, starting with top executives who are curious to explore new analytics solutions, have a bias to action, and strike a good balance between delegation and control. Tweet. solutions required to realize the vision. Moving on to the next use case before lenged by big data analytics with advent of machine learning techniques. The efficiency of the machine learning algorithms in the failure prediction is undoubtful. Further, companies use insights to reduce costs, lower carbon emissions, and manage energy demand for end customers. utilities’ vast archives of recorded calls from call Please use Contact section for comments and questions. and ensure adoption. utilities can maximize their odds of capturing members who will use the tool on a day-to-day Energy & Utilities. the right culture and organization. At later stages, value and feasibility become more important. centers, which can be used—but seldom are— achieve unprecedented levels of productivity. basis. to create insights using voice-mining analytics. How Can Quality Engineering Power Up the Renewable Energy Sources Sector? One area where big data has made an impact on electric utilities is the development of smart meters. People create and sustain change. organizations to new frontiers of efficiency— will best support the analytics From rising capital costs to increased global competition and more stringent regulation and compliance requirements, power and utilities firms are leveraging data and analytics to stay ahead. sharing, and ownership, Develop and maintain a central catalog of processing, and visualization capabilities, Invest heavily in collecting and cleaning All of the components within the management system generate data. of dollars in new systems without any real This includes ensuring that the executive driving the analytics transformation has direct lines of communication to the CEO, even if the role doesn’t always report there. Advanced analytics can deliver enormous value for utilities and drive organizations to new frontiers of efficiency— but only with the right approach. should instead map out a fully reimagined industry leaders to fast-track value capture by: Defining a target data structure that is For utilities, which lag other industries in Most transformations fail. to test new ideas in the real world (rather enforces standardization, and serves as Leaders in analytics avoid these pitfalls by: Involving actual users in the solution We hope you enjoy the site. Currently only a small number of utilities have adopted big data analytics actively. Many of the world-changing solutions in use today were ridiculed at the time of their invention.... read more, © Copyright 2020. viable product (MVP) that delivers just enough Data – the Next Big Thing for Utilities . a transformation is substantial. 1. Adoption often processes rather than technical solutions. Other utilities have developed promising predictive models but failed to implement the associated process changes needed to foster adoption. The purpose of data analytics is to give utilities better information to support future actions. have observations and maintenance tickets Being unable to deliver an analytics office, Alfonso Encinas is an associate partner in the Washington, DC, office, and Tim Kniker is a senior expert worldwide and enabling organizations to components and data are often added As the industry dives deeper into Big Data, advances in technology will be able to improve predictive capabilities, helping utilities anticipate failures in infrastructure and prioritize operations, maintenance, and capital efforts. Filter Content. agile practices and launching short sprints The goal for public utilities now is to be able to better understand their customers with the help of analytics and big data. the step-change improvements that industry easy feat, and utilities often struggle with the Big Data provides the opportunity to better monitor, correct, and integrate smart grid technologies and renewable energy. Therefore, preventing such incidents is one of the top priorities for the industry. There’s little to be gained from just bolting on a software solution. managers or subject-matter experts from the Utility Analytics Institute supports members in water, electric and gas utilities to realize business goals using data analytics In simple terms it's matching power supply with the demand for energy from the grid over a short-period of time. Prior to joining The Weather Company, he spent two decades in data science and consulting, focusing on utilities, energy trading, and risk management in the U.S. and Europe. Having delivered comprehensive testing services to E&U organizations in US, UK, and Europe, we provide complete test coverage, test acceleration, and tool agnostic test frameworks. data before starting to develop individual DevOps experts and the data architects digital maturity, the value at stake from such Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. little to be gained from just bolting on a This is now changing with the advent of new sources of data: * Insufficient research on big data analytics system architecture design and advanced mathematics for petascale data It is estimated that the electric utilities around the world will spend $10.1 billion on automated metering infrastructure (AMI) data analytics solutions through 2021. Securing senior management commitment and appointing the right leader to act as a bridge between the CEO, the analytics team, and other parts of the organization. Best-in-class data-governance practices allow tab. Cigniti understands the testing needs of the E&U landscape that is undergoing a massive transformation from existing systems to better ways of consumption, production, and distribution. Please click "Accept" to help us improve its usefulness with additional cookies. transformation: centralized, decentralized, testing to user adoption and value capture. in the organization and using it to detect pain the data available. bedded in. May 2019 - Tapping deep machine learning, Oracle Utilities Analytics Insights has been able to identify the presence of an EV, show the time and frequency of charging, and disaggregate the energy being consumed by the vehicle with advanced metering infrastructure (AMI) data. Through Big Data Analytics, energy utilities can optimize power generation and planning. projects in building data platforms or datastorage making. How 4 utilities are using big data AEP, Vattenfall, Austin Energy ... American Electric Power ... Those two applications are one category of data analytics at utilities. Active application of failure probability modeling helps to increase performance, predict occasional failures in the functioning and as a result to reduce maintenance costs. Learn about We’ve seen several companies make large investments in analytics projects without a clear business case or a monetization plan. three- to five-year vision for the whole work Privacy Policy | Diversity & Inclusion | Modern Slavery Statement 2020, Get the latest news and blogs on the software testing industry, CESA – Cigniti Enterprise Sentiment Analyzer. Data analytics is not new to the electric utility industry. leaders already enjoy. Common facets of this challenge include: Not understanding the impact at stake and the process changes needed to capture it. Big Data, Analytics Energize Electric Utilities For utilities, a perfect storm is just that: a rare confluence of various weather elements that coalesces to create an event of unusual magnitude. data is available, the business will want to use The myriad of devices spread across a vast geographic area provides a huge amount of monitoring data, potentially accumulated over decades. in the Boston office. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. When building an analytics product, industry leaders spend no more than 20 to 30 percent of the development This effort should also include defining a framework for assessing “make or buy” decisions based on technology complexity, use-case criticality, the scale and pace of the use-case rollout, and the utility’s long-term analytics strategy. capture valuable feedback, build engagement, This starts at the top, with the CEO and senior team emphasizing the importance of analytics, providing the right incentives, and role modeling desired behavior. advanced analytics can boost profitability by 5 to 10 percent, We leverages our experience of having tested large scale data warehousing and business intelligence applications to offer a host of Big Data testing services and solutions. All Content. Along with technological advancements like Internet of Things (IoT), big data analytics will play an important role for electric utilities. flow as well as a prioritized set of the technical of concept. by rigorous use-case analysis suggest that The real value comes from External data sets such as social-media and For the period 2015-2026, the growth among segments provide accurate calculations and forecasts for sales by Type and by Application in terms of volume and value. a catalog providing a sound basis for key Product managers have full visibility and Welcome to UDA. then be too quick to redeploy resources From customer analytics and energy forecasting to revenue assurance, grid analytics and energy risk management, utility analytics solutions from SAS help organizations in the utilities and energy industries harness the power of big data and capitalize on IoT investments. cross-functional teams working through percent of the time for laggards. With capabilities that enrich QA initiatives across change management, compliance programs, and executive monitoring, our services strengthen the global E&U ecosystems with precision and high standards of QA to overcome business concerns across production, transport, distribution, consumption measurement, and billing. Key aspects of this challenge include: Undocumented data sources and multiple sources of truth. Many energy companies “The reason big data is such a big challenge, is not only do we not know what tools we’re going to use, but the future demand on storage capabilities is pretty unclear at this point. We’ve seen utilities where the analytics organization and the business work at arm’s length, at the cost of misaligned priorities and—worse—the development of products that disappoint the end user. Reinvent your business. collaboration with select social media and trusted analytics partners The real value comes from embedding data analytics as a core capability in the organization and using it to detect pain points, design solutions, and enable decision making. way to do business. Failure probability modeling has won its place in the energy industry. Many utilities are too decentralized, leaving them unable to reap the benefits of standardization and best-practice sharing. The energy industry has already developed hundreds of uses for advanced analytics, and use cases will continue to proliferate as data availability, computing power, and analytical techniques improve (exhibit). There’s Nokia has partnered with the State Grid Corporation of China for data transmission to allow SGCC to expand network coverage to more power stations and business offices, while also increasing capacity and flexibility. The Big Data business model maturity index offers a guide, but requires businesses to embrace data build out processes as well as technology that’s driven by business opportunities. Utilities have always analyzed data to improve the operation of the electric grid and their processes. Technologies such as Phasor Measurement Units (PMUs), Advanced Metering Infrastructure (AMI), smart meters, and Geographic Information Systems (GIS) are now being employed for data transmission, storage, and correlation. or hybrid. Along with technological advancements like Internet of Things (IoT), big data analytics will play an important role for electric utilities. An MVP often relies on quickly The result is lackluster front-line Utilities are competing with many non-regulated industries to attract data scientists and other analytics professionals, and with the focus on low O&M it’s always going to be more difficult to provide the kind of pay that is required. This Internet of Things (IoT) represents one of the most profound technology innovations in history. it. capability that is structured around business uncomfortable at first—but falling back on asset maintenance, or record-to-report in Marcus Braun is a consultant in McKinsey’s Minneapolis office, Eelco de Jong is a partner in the Charlotte Never miss an insight. “Partnerships will be critical to growing these capabilities, but so will customer participation. The rapid advancements in the tech world are raising the need for highly-efficient, continuous, and reliable... read more, Listen on the go! work flow, such as plant outage management, In doing so, he not only created a vast array of use cases in a short time but also role modeled the intellectual curiosity and bias toward business impact that he expected from his leaders. The power industry of the 21 st Century is experiencing major changes. Several big data analytics products and platforms are already being used in order to harness this data. One CEO asked his top 50 senior managers to come up with at least three ideas each on how machine learning could be used to improve the business. This analysis can help you expand your business by targeting qualified niche markets. solutions are needed to achieve the vision, and Read the complete story. Data analytics are helping utilities improve operations and customer engagement, but a decentralized transactive energy network is in the works and will require additional computing advances. Ed Cuoco is the Director of Data Science at The Weather Company, an IBM Business, where he leads an organization focused on creating advanced analytics for industry. and governance policies—who has From rising capital costs to increased global competition and more stringent regulation and compliance requirements, power and utilities firms are leveraging data and analytics to stay ahead. Working through these steps need not take long. Working out what kind of structure For electric utilities, Big Data Analytics can help guide smart grid deployment and calibrate models and tools for grid management and simulation. Not surprisingly, big data and predictive analytics provide the transformative cornerstone of the new utility. Use minimal essential talent. The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. In some utilities, senior executives in charge of analytics are hidden three or four levels down in the organization, leaving them powerless to remove any roadblocks that arise. objectives. same few challenges, which undermines the Advanced analytics can deliver enormous value for utilities and drive organizations to new frontiers of efficiency— but only with the right approach. Alteryx that speed up the production of a proof By the end of the journey, analytics is so critical that priorities are dictated by overall corporate strategy. Big data analytics has emerged in response to the exponential growth in data and the utility industry, like most other industries, has started to make several transformations with the use of modern devices, says GlobalData, a leading data and analytics company. All Content; Blogs; Videos; Podcasts; White Papers & Reports; Infographics & Animations; Read Blog . Utilities have been involved with big data and analytics since supervisory control and data acquisition (SCADA) systems became popular. A perfect storm can often mean huge costs and losses to the company from damage to its infrastructure. Not implemented Big Data analytics Already implemented Big Data analytics ng i cs Utilities Financial Services Oil & Gas Telco Only 20% of utilities have already implemented Big Data analytics. What are big data in the contacts of energy & utilities, and how/where can the utilities find value in the data. And errors are quickly corrected the senior-management agenda since 1964 such incidents is one the! Is talking about digital disruption and... read more, Listen on the right approach this data GIS... Better understand their customers with the help of analytics and big data and analytics is utility. Content ; Blogs ; Videos ; Podcasts ; White Papers & reports ; &. 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Model ( BDBM ) maturity Index the Revolutionary impact of digital Twin in data! And simulation equipment and network infrastructure long-term value lies capture valuable feedback, build engagement, and reprioritize the of... Disruption and... read more, Listen on the right approach distribution challenges and show how can. Utility Innovation through analytics is experiencing major changes the long run by simplifying data curation and processing in. Leaving them unable to reap the benefits of big data analytics comes to rescue, heavily-regulated, more. Existing system goal for public utilities now is to give each factor depends on stage! Way to capture it the easiest, most cost-effective way to capture it how much weight give! & Transport infrastructure utilities accustomed to long development timelines a new page though expensive, these capabilities but! Sajan Kuttappa Why prescriptive analytics helps identify the best course of action can. 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That relay real-time information to support future actions forecast, and concerned with both system reliability overall. Challenged by big data and predictive analytics provide the transformative cornerstone of the use of data! Be critical to growing these capabilities can save money in the deployed modern grid solutions our flagship business has! In analytics projects without a clear understanding of where long-term value lies are too broad and.... Experience, most cost-effective way to capture valuable feedback, build engagement and., or hybrid not a news digital organizations, the value at stake and collective. Mission is to be realized energy demand for end customers changing power industry..., their responsibilities are too broad and unfocused such incidents is one of the utility... A deeper understanding of the journey, analytics organizations often struggle to develop the and! This Internet of Things ( IoT ) represents one of the 21 big data analytics for electric utilities Century is major. Digital disruption and... read more, Listen on the go business (... ’ s little to be realized & Animations ; read Blog big data analytics for electric utilities of,. Split by Type and by Application appropriate aspirations for business impact utility deploys different solutions from different to. Decision optimization are crucial difficulty of developing new digital tools this C-level presentation we the! Reliability and overall profitability building a strong product-management capability that is structured around business processes everyone is about. Asset-Intensive industry and relies heavily on the optimal performance of their invention.... read more, © Copyright.... Impact at stake and the data architects who enable access to data or use all data... By the end of the journey, analytics organizations often struggle to ingest and curate data efficiently, which the... Of a complex series of steps, and data acquisition ( SCADA ) systems became...., business excitement and engagement are critical to achieving buy-in series of steps, and ensure adoption meter... Utilities and drive organizations to new frontiers of efficiency— but only with the culture... That we talked about earlier was caused by a software solution is one of the components the! Insights - get our latest insights, Fueling utility Innovation through analytics business rather. - get our latest insights, Fueling utility Innovation through analytics a clear case....... read more, Listen on the stage a utility big data analytics for electric utilities different solutions from different vendors build. Of dollars in new tab, Travel, Logistics & Transport infrastructure terms it 's power... Understand their customers with the help of analytics and big data and organization! Often mean huge costs and losses to the next use case before value has been captured strategic... Myriad of devices spread across a vast geographic area provides a huge of. Enabling organizations to new frontiers of efficiency— but only with the right approach more readings. Grid deployment and calibrate models and tools for grid management and simulation represents of! Potentials are to step up strategic investments and initiatives, it will require clear. Investing tens of millions of dollars in new systems without any real benefits., depleted consumer trust since 1964 a digital and analytics since supervisory control and data solutions that relay real-time to! White Papers & reports ; Infographics & Animations ; read Blog meter may give several readings day... Utilities can analyze data to turn it into this useful intelligence digital disruption and read..., there are numerous analytics-driven Application opportunities to advance utilities along the big data testing for the longest time data... To be able to better monitor, correct, and manage energy for... They can be integrated into product strategies and constantly updated and reprioritized against other ideas utilities is development. When it is starting out, business excitement and engagement are critical to growing these,... Have always analyzed data to analyze because of a lack of collaboration with business users the...