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Demystifying Digital Transformation for Public Power Utilities June 9, 2020

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Page 1: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Demystifying Digital Transformation for Public Power Utilities

June 9, 2020

Page 2: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Today’s presentersDEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES

Eric KeisterDirector, Baker Tilly [email protected]+1 (346) 388 0660

Claudio GarciaDirector, Baker Tilly [email protected]+1 (612) 718 5114

Page 3: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES

Agenda

− Introductions− Digital transformation− Digital landscape− Digital in utilities− How to be successful− Questions

Page 4: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Baker Tilly

Page 5: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Baker Tilly InternationalBaker Tilly International is the eighth largest accountancy and business advisory network in the world

146Territories

742Offices

US $3.9BCombined

revenue

36,332Global

workforce

Advisory39%

Tax29%

Assurance32%

Baker Tilly Consulting (USA)

– 500+ Consultants– Deep functional and industry expertise– Focus on strategy, execution &

transformation engagements

Page 6: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Baker Tilly Digital

Page 7: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

What is Baker Tilly Digital really made of?

Digital | labs

Data Modernization

Hybrid Solutions

Data and analytics strategy

Platform modernization

Cloud strategy andenablement

IOT and RPA

Applicationdesign and build

Applicationmodernization

Advanced analytics

Machine learning and AI

Data visualizationand reporting

Digital asset strategy

Deep learning andcomputer vision

Algorithmdesign

OfferingsPillars

TaskAutomation

WorkflowAutomation

DecisionAutomation

Intelligent Automation

Page 8: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

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POLLING QUESTION

Page 9: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Digital transformation is simply...

Leveraging technology, data and digital skills to enhance and add organizational capabilities

Page 10: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

What guides our thinking?

Effective digital transformationenables growth

DATA AND ANALYTICS

TECHNOLOGY

PEOPLE

PROCESS AUTOMATION AND GOVERNANCE

Five critical capabilities

Page 11: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Today’s digital landscape evolution:

Cloud Mobile IOT

Intelligent automation AI/Machine learning Digital workforce

Page 12: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Customer focusDIGITAL IN PUBLIC POWER UTILITIES

Increased data access– Real time data and dashboards– Heavy focus on UX

Communication– Just-in-time alerting and notification– Communications across digital channels

Customer service– Chat bots– Self-service appointment setup

Page 13: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Facility downtime and predictive maintenance Leak detection and sensor modernization

COVID-19 impactSmart dispatch

Internal capability focusDIGITAL IN PUBLIC POWER UTILITIES

Page 14: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

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POLLING QUESTION

Page 15: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Intelligent automation landscape

Page 16: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

AUTOMATION LANDSCAPE

Automation – What is it?

― In general, if an employee executes a specific task or broader workflow with a computer, keyboard, or system, then process technology may be considered to automate the entire process, or part of it.

Automating manual, standardized processes:

Page 17: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Intelligent automation capability spectrum

INTELLIGENT WORKFLOW

Simple Sophisticated

BASIC process automation INTELLIGENT automation

ORGBENEFITS

Automating simple tasks− Save time− Save cost− Increase

productivity

Orchestrate processes And decisions− Automate

workflows− Across broader org− Transparent audit

trail

Automate decisions and actions− Fastest

decision culture− Maximizing

data assets− Leveraging AI &

ML

RPA

MACHINE LEARNING + ARTIFICIAL INTELLIGENCE

DECISION AUTOMATION

DATA ENRICHMENT ANDAUTOMATION

WORKFLOW ORCHESTRATION

PROCESS MINING

CONTENT MANAGEMENT

BPM – BUSINESS PROCESS MANAGEMENT

FAMILY OF TOOLS

ANDTECHNOLOGIES

1

2

3

5

4

6

7

8

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Intelligent Automation

Automation technology “journey” success factors:

– Develop and execute a comprehensive intelligent automation strategy to eliminate inefficient manual labor across all business workflows

– Leverage a robust suite of automation technologies to:

– Increase staff productivity– Save labor time and costs– Increase process accuracy and quality– Minimize error rates– Deliver positive ROI

Page 18: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Robotics vs workflow technology

Robotics ProcessAutomation

Workflowautomation

Defined– Custom development for

automation of discrete tasks– Accomplished via robot

development and script/code

E.g.:AutomationAnywhere

Benefits– Save labor time– Save labor cost– Accuracy– Staff morale

Risks– Best for single task– Very often misused– Brittle – requires

maintenance– Market hype

Defined– Custom development for

automation of end to end process

– May include RPA

E.g.: IBM, Open Source

Benefits– Total process

orchestration– Transparency– Accountability– Audit trail

Risks– Ensure effective

process is defined

Page 19: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Step 1

InitiationServicerequest

Step 2

PermittingProcesswith localcounty

Step 3

Grid capacitySupportthe voltageload

Step 4

SchedulingRemote orclose-inlocation

Step 5

ImplementCompletethe work

Step 6

ConfirmClose the workorder

Southwest region – Electric power provider Process in focus: New service request

Challenges: Manual process (lengthy timeline), process errors, dissatisfied customers

Objective:– Optimal degree of automation– Strengthen efficiency & improve service quality

New service request

USE CASE EXAMPLE

Page 20: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Step 1

InitiationServicerequest

The organization considered RPA technology for this automation

Step 2

PermittingProcesswith localcounty

Step 3

Grid capacitySupportthe voltageload

Step 4

SchedulingRemote orclose-inlocation

Step 5

ImplementCompletethe work

Step 6

ConfirmClose theworkorder

Single/Discreetprocess task

Appropriate use of RPAtechnology

Less effective use of RPA– Unstable automation (multiple bots)– Higher probability of breakage– Inefficient level of software license and

maintenance cost– Lack of effective audit trail (step to step)– Higher Development Cost (vs alternatives)

USE CASE EXAMPLE

Page 21: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Step 1

InitiationServicerequest

Step 2

PermittingProcesswith localcounty

Step 3

Grid CapacitySupportthe voltageload

Step 4

SchedulingRemote orclose-inlocation

Step 5

ImplementCompletethe work

Step 6

ConfirmClose theworkorder

END TO END Process automation• ACCOUNTABILITY: Every staff touch-point understands required action• TRANSPARENCY: Reduced lost requests & missed handoffs• AUDIT TRAIL: Immediate identification of process breakdown• AUGMENTED with Artificial intelligence

Artificial Intelligence VOLTAGE CALCULATOR: Calculates grid capacity

Artificial Intelligence ASSET MANAGEMENT:

Allocates staff and equipment

Further consideration showed ‘Workflow’ technology to be the optimal approachUSE CASE EXAMPLE

Page 22: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

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POLLING QUESTION

Page 23: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Digital transformation is a journey

How do we get there?

Page 24: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Agile approach– Add incremental value– Experiment and fail fast

Adoption focus– UX, UX and more UX– Don’t forget Internal Adoption

Digital ecosystem– If you can’t create a COE create a digital community– Invest in people and data

Organizational support– Individual contributors, management & C-level– Publicize success

Digital transformation success drivers

Page 25: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Assess ‘Current State’ capabilities and business priorities to define Transformation objectives.ASSESSMENT

Score and prioritize the organizational focus areas to ‘roadmap’ the Transformation initiatives.IDENTIFICATION

Consider external support for early stage implementation (accelerate capability/maturity).ACCELERATE

Deploy integrated approach to success drivers: Data – Technology – Culture - CustomersINTEGRATION

Our experience suggests four essential steps toward your Digital Transformation journey:TAKING THE FIRST STEPS

Page 26: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

Questions?THANK YOU

Eric KeisterDirector, Baker Tilly [email protected]+1 (346) 388 0660

Claudio GarciaDirector, Baker Tilly [email protected]+1 (612) 718 5114

Page 27: Demystifying Digital Transformation for Public Power Utilities...Today’s presenters DEMYSTIFYING DIGITAL TRANSFORMATION FOR PUBLIC POWER UTILITIES Eric Keister Director, Baker Tilly

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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought.

Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly Virchow Krause, LLP.

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