From my previous article, “Digital Transformation Strategies – An Electric Utilities / WAM Roadmap” (available here on Energy Central), I presented Professor Piskorski’s framework for digital transformation, which outlines three core strategies: digital experience, digital transformation of functions, and digital transformation of business. Each strategy relies on the integration and interplay of sensors, applications, and platforms to create value and improve operational efficiency.
Applied to an electric utility’s Work and Asset Management (WAM) domain, these strategies manifest in various ways. For instance, sensors can monitor infrastructure and track crews, while intelligent applications provide predictive insights to optimize operations. Platforms enable seamless connectivity and collaboration among stakeholders. The digital experience strategy enhances how users interact with systems by integrating real-time data and intuitive applications. The digital transformation of functions strategy redefines internal operations like marketing, R&D, and supply chain management through sensor-driven automation and data-informed decisions. Finally, the digital transformation of business strategy involves reimagining service delivery by leveraging platforms to generate new revenue streams, such as B2B SaaS offerings or data marketplaces that serve governments, insurers, and industry partners.
However, these strategies can only be effective when paired with strong digital leadership and a supportive organizational culture. Electric utilities must be deliberate in building digital capabilities through structural changes, such as establishing an independent digital division, recruiting fresh talent, and crafting incentive systems aligned with digital objectives. Equally critical is fostering a culture where decisions are rooted in data and model-driven analysis rather than intuition. This requires embedding agile learning loops, refining predictive models, and encouraging experimentation and iteration.
Leadership plays a pivotal role in this transformation. Appointing a Chief Digital Officer (preferably from outside the organization) and forming a hybrid leadership team of incumbents and digital natives ensures balanced perspectives. Programs such as executive immersions, fellowships, and talent clubs can accelerate leadership development and instill the ambidextrous mindset required to manage both legacy systems and emerging digital operations.
In conclusion, digital transformation in the electric utility sector is not merely a technological upgrade — it is a leadership and cultural journey. The real differentiators will be the organizations that invest not only in sensors, platforms, and applications but also in visionary leaders and adaptive cultures. By fostering a digital-first mindset, enabling data-driven decisions, and empowering cross-functional leadership, utilities can unlock the full potential of digital transformation and redefine their role in the energy ecosystem.