EY_Digital_in_utilities - A different way of doing business...

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A different way of doing business Digital in utilities
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A different way of doing business Digital in utilities “The impact of digital on traditional utilities has parallels with the impact of the internet on high street retailers in the early 2000’s. There will be those organisations who view it through the lens of their existing business processes and transactions, and there will be those who see the potential of a different way of doing business” Richard Postance UK&I Customer Strategy Partner, Ernst & Young
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A different way of doing business Digital in utilities Contents A different way of doing business 1 Digital goes mainstream 2 New opportunities to grow 4 New competitors and challenges 7 How can utility companies respond to digital developments? 8 Digital transformations 10
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A different way of doing business Digital in utilities
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1 A different way of doing business Digital in utilities A different way of doing business Energy retail companies have traditionally been operating in a low margin, commoditised business largely insulated from the pressures of competition because of the high barriers to entry. But digital technology, and the changes in consumer behaviour and expectations which accompany it, coupled with increased regulatory pressures, are set to change that business in fundamental ways. Key findings Utilities have the chance to re-invent themselves Energy suppliers need to gain customers’ confidence Community-based customer care, provided through digital technology
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2 A different way of doing business Digital in utilities Digital goes mainstream Utility suppliers face three new realities which are forcing them reassess their positioning for the future. The first is the growth of generations X and Y who will account for 50% of the UK workforce by 2016. These customers have enthusiastically embraced technology such as mobile internet and social networking which enables them to be connected 24/7. According to the International Data Corporation’s quarterly mobile phone tracker report, vendors will ship a total of 472m smartphones in 2011 compared to roughly 305m units shipped in 2010. That figure will nearly double to 982m by the end of 2015 1 . On demand access to the digital world means that this segment of customers has very different expectations: They learn through collaboration and networks – the average Facebook user spends 55 minutes on the site daily 2 . They expect options and make decisions based on peer recommendations – 78% of consumers say they trust peer recommendations, compared to 14% only for advertisements 3 . They are constantly giving their opinions and view on products, services and brands online – there are over 1500 blog posts every 60 seconds, and 34% of bloggers post opinions about products and brands 5 .
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  • Spring '14
  • Business, Sales, Customer relationship management, different way, Ernst & Young Global Limited

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