Energy companies look outside of the industry for new revenue streams

As the UK’s energy sector continues to undergo significant transformation, research commissioned by Capgemini has found that data influx affords huge opportunity for innovation and business evolution – and collaboration with adjacent industries is the key to unlocking this.

 UK energy suppliers say that the market will be completely turned on its head by a host of digital transformations over the next 5 years and most cite the government’s smart meter target as the pivotal driver for this. Majority of energy players are working on identifying new business opportunities related to the increasing amount of data being produced, prompting significant shifts in business models and approaches to innovation and collaboration.

 Smart metering emerged as the number one area of collaboration for the industry according to the research, however, not even half of larger suppliers collaborate with companies from adjacent markets. Why? Collaboration is not easy – misaligned business models and cultural fits are cited as the top barriers.

 “Data economy” requires a culture of collaboration and it is paramount that energy providers take full advantage of the opportunities it offers. Looking beyond their immediate boundaries for integration with other markets will also open new doors for both companies and customers. Perhaps signifying the first step towards this, almost three quarters of the market stated that they are at least open to sharing their data with third parties.

You can also read our Experts’ insights related to cloud, innovation and collaboration, talent management strategies, as well as AI and automation.

Digital transformation over the next 5 years

  • 86% cite the government’s 2020 smart meter target as the pivotal driver
  • 78% feel well equipped to handle the influx of data
  • 70% have already implemented innovative technologies to manage and use it effectively

The data influx creates new opportunities

  • 84% have identified or plan to identify new opportunities
  • A subsequent 84% are already pursuing or plan to pursue these opportunities
  • 52% are looking beyond the current value chain to find alternative revenue streams

Benefits of sharing data with third parties

  • Improved customer experience
  • New products
  • New revenue streams within and outside of the value chain
  • Reduction in costs

Experts' quotes

Data is the lifeblood of today’s innovation, so the fact that the Government has provided a mandatory stimulus to increase it within the energy market will prove a huge boon to the industry. It is paramount that energy providers take full advantage of this, and while they will continue to improve customer experience and services with it, looking beyond their immediate boundaries for integration with other markets will also open new doors for both companies and customers alike.

Alain Bollack, Smart Energy Lead at Capgemini UK

Capgemini’s valuable research shines a light on the changing nature of the energy sector with a clear shift towards the servicisation of energy. Data is clearly at the heart of this shift and the research shows the value of the smart meter programme in helping to drive greater adoption of digital technologies.

Matthew Evans, executive director at techUK

The retail energy market is in the midst of unprecedented, significant and enduring change. To respond to these pressures, energy suppliers are working hard to re-evaluate their business models and break down barriers to innovation. Faced with massive external forces, attitudes to collaboration are surely shifting within the industry, with the opportunities it affords quickly becoming too evident to ignore.

Alain Bollack, Smart Energy Lead at Capgemini UK

Data influx gives energy companies the perfect opportunity to innovate

According to research commissioned by Capgemini, UK energy suppliers agree that the market will be completely turned on its head by a host of digital transformations over the next 5 years - with the government’s 2020 smart meter target as the pivotal driver for this.

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