Strengthening Enterprise Resiliency in the Energy and Utilities Industries

How Energy & Utility organizations can manage the dual crisis of COVID-19 and oil price volatility

Today’s health crisis has significantly reduced global mobility and slowed industrial production, the combination of which has resulted in a considerable drop in oil, gas and electricity consumption. These recent events will lead to a new normal, forged by shifts in consumer behavior, mobility patterns and remote work capabilities, as well as foundational changes within the existing business strategy, such as geographical footprint redefinition and the reduction in capital expenditure (CAPEX) and operations expenses (OPEX).

The present landscape reinforces the importance of sustainability and continuity, underscoring the need to accelerate digital transformation and energy transition efforts. At the same time, many organizations are experiencing significant budget cuts and cashflow constraints, jeopardizing the very initiatives that could lead to a healthier, more resilient business.

And yet, economic recovery and transformation need not be mutually exclusive. Our Energy & Utility Operating in the New Normal portfolio is a collection of six vertical service offerings designed to address organizations’ most pressing challenges while building the foundation for a long-term strategic agenda.

  • CAPEX reduction/optimization
  • OPEX reduction
  • Revenue protection
  • Energy transition
  • Digital transformation acceleration
  • Remote connected engineer

Along with our services such as cloud migration, cybersecurity, and technology solutions, these six offers help organizations transition to the New Normal.

Capgemini’s Energy & Utilities Operating in the New Normal Portfolio:

 In today’s market, organizations are under extreme pressure to simultaneously reduce budgets and advance capital projects, including the transition to cloud. Our CAPEX Reduction and Optimization solution helps organizations:

  • Identify alternative financing options, including infrastructure/data sale and an outcome-based subscription model, to help IT organizations reduce the cost of cloud transformation initiatives
  • Leverage modular design, automation tools, and agile product development to accelerate the timing of capital projects while reducing costs
  • Evaluate, prioritize and optimize existing capital projects within the context of this new environment

Today’s environment is marked by razor-thin margins, forcing organizations to focus on improving efficiency as opposed to maximizing throughput. Our OPEX Reduction service offer helps organizations:

  • Identify opportunities to drive efficiency through our business vision, proven delivery model and toolkit
  • Support cost reduction through vendor consolidation and contract optimization
  • Assume the role of lead technology vendor, uniting and harmonizing people, processes and technologies to drive efficiency at scale

Despite both CAPEX and OPEX reductions, many EUC organizations are experiencing cashflow issues due to supply chain volatility, customer’s health and collection challenges, as well as local public policies to help and protect disadvantaged customers. Companies must develop and implement a flexible but firm cash collection strategy, complete with early warning signals and improved collection interventions. Our Revenue Protection solution helps organizations:

  • Establish a Cash War Room, which leverages Finance experts, advanced analytics and predictive modeling to create a forward-looking finance function
  • Build an indicator and intervention system based on consumer behavior to identify risk and reduce defaults through customized mitigation tactics
  • Identify opportunities for government assistance and provide strategic guidance throughout the application process

Mobility restrictions and the sharp industrial slowdown have had a favorable impact on recent GHG emissions. However, these initial gains are unlikely to translate into long-term, sustainable change, particularly as organizations consider delaying or reducing energy transition investments or fail to acknowledge the gravity of this situation. Our Energy Transition solution helps organizations:

  • Measure and model the effects of COVID-19 on energy and emissions; leverage this awareness to better communicate with stakeholders and accelerate investments
  • Review/revise the CSR strategy in light of this new and unforeseen scenario and the possible New Normal
  • Prepare to influence stimulus strategies so as to maintain momentum, or even accelerate, energy transition efforts
  • Formulate sustainability / energy efficiency offers for your company and for your clients

COVID-19 introduces a paradox for many businesses. On one hand, business

continuity and resiliency depend on accelerating the digital agenda; on the other, projects could be postponed due to budget constraints and competing priorities. Capgemini helps organizations make the business case for digital initiatives, establishing the short-term value of these investments and the critical role they will play in building a more resilient future. Our Digital Transformation Acceleration solution helps organizations:

  • Increase the pace of digital and embed lower cost solutions, including: business model digitization; mobile and remote work capabilities; data and analytics capabilities; improved systems integration and optimization
  • Recast the role of IT in the crisis, establishing the function as a key enabler of resilience and change
  • Establish a Digital Taskforce to build and update a comprehensive and flexible response portfolio and plans

Clients are under increased pressure to maximize the productivity of their field-based workforce, optimizing physical inspection/monitoring activities and driving more effective, efficient ways of working. Within today’s increasingly connected world, there is an opportunity to exploit Intelligent Industry 4.0 platforms to deliver significant operational gains. Our Remote Connected Engineer solution helps organizations:

  • Leverage our “connected worker” library of assets and accelerators to identify a rapid MVP, as well as an operational blueprint, backlog of capabilities, roadmap and business cases
  • Deploy tactical operational mobility solutions to field staff and potential supply chain partners, while simultaneously evaluating and deploying next-generation digital tooling, platforms and sensory information
  • Leverage our Mobile Apps factory capabilities, AR platforms and enterprise platforms to drive at-scale deployment and adoption

For more information about our collection of Resilient Offers for EUC organizations, please contact us:

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