Despite commitment to emerging technologies, CEOs are concerned that implementation will create challenges.
Amid a rapidly evolving landscape of changing customer dynamics, unprecedented growth of renewables, and tech-driven business model disruptors, global power and utility CEOs are bullish on growth, and are increasing investment in emerging technology to pave the way, according to the 2017 Global KPMG CEO Outlook.
“Utilities across the globe are feeling the effects of disruptors. From consumers demanding more, to the effects of policy and regulatory changes, to advancements in smart technology influencing energy infrastructure, the utility industry continues to face pressure to reinvent itself. The savvy CEOs are embracing technology to drive innovation within their company cultures and become the utility of the future,” said Regina Mayor, Global Energy and Natural Resources Leader, KPMG in the US.
In the KPMG study of 74 global power and utility CEOs, 88 percent say they are confident they will see their company grow over the next 12 months; 86 percent are confident they’ll see growth over a 3-year period.
To achieve this growth:
Despite a clear commitment to investing in emerging technologies, utility CEOs are concerned that implementation will create challenges. In fact, piloting emerging technology was the number one technology-related challenge CEOs are concerned with, followed by integrating cognitive technology and optimal use of analytics. Additionally, the top three risks utility CEOs are concerned about are those associated with operations, strategy and emerging technology.
“Cognitive technologies and robotic process automation are changing the way we do business,” said Michael Salcher, Global Power and Utilities Leader, KPMG in Germany. “While there may be implementation challenges along the way, the benefits of a digital labor workforce are becoming clearer. Organizations must challenge themselves to be innovative and capitalize on opportunities to adopt these smart technologies to remain competitive.”
For more information, please visit the KPMG 2017 CEO Outlook landing page.
The survey covers 1,261 CEOs in 10 key markets (Australia, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11 key industry sectors (automotive, banking, infrastructure, insurance, investment management, life sciences, manufacturing, retail/consumer markets, technology, energy/utilities and telecom). A third of the companies surveyed have more than US$10B in annual revenue, with no responses from companies under US$500M. The survey was conducted between 21 February and 11 April 2017. NOTE: some figures may not add up to 100 percent due to rounding.
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