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Identifying Best Practices among Leading Firms
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The energy industry, which has traditionally been highly stable, is currently undergoing a drastic transformation. A number of disrupting elements, including the digitisation of electricity networks and products, deregulation, increased competition from new entrants, decreasing demand, a shift to cleaner energy sources, changes in consumption patterns, and new business models, are forcing energy utilities to change the way in which they do business. This has been particularly significant for European energy utilities where these transformational drivers have been the most felt. In response to this threat, many of the leading companies in Europe have been investing heavily in research and development to diversify their small portfolios (electricity sales) and capture new product opportunities (smart and connected home devices, distributed generation products). In addition, several firms have taken the more audacious steps of re-structuring themselves to better focus on emerging market opportunities. Ultimately, these changes will lead to new business models being adopted in the industry. In this insight, Frost & Sullivan assesses the key areas of innovation currently being targeted by the leading market participants and scouts for industry best practices that will most likely lead to market success.
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