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Energy and Utilities

How does energy business process management drive innovation in the utilities industry?

The energy and utilities sector is undergoing a profound transformation driven by geopolitical shifts, regulatory changes, and a global push towards sustainability. In 2023, the International Energy Agency reported that global investments in renewable energy reached a record $1.7 trillion, reflecting a significant shift away from fossil fuels.

As the industry evolves, companies face mounting pressure to adapt swiftly and efficiently. This is where Business Process Management (BPM) and energy outsourcing services become indispensable.

This blog explores the pivotal role of energy BPM in driving innovation in the energy and utilities sector.


Driving innovation with energy BPM

As utilities face growing demands for sustainability and customer satisfaction, BPM offers a structured approach to overcoming these challenges while driving continuous innovation with energy BPM. Here is how energy outsourcing services have appeared at the forefront of driving innovation in the utility industry.

Integrating cutting-edge technologies

BPM frameworks enable the utilities sector to incorporate AI and IoT into their operations seamlessly. These technologies are not only about improving efficiency; they fundamentally change how the industry operates. According to McKinsey, enterprises that have adopted AI-driven BPM systems have seen up to a 20% improvement in operational efficiency, testifying to BPM’s role in enabling technological innovation​.


Optimising renewable energy integration

Leverage AI for the energy and utilities industry

Leverage AI for the energy and utilities industry

Operations in the energy sector need to be more adaptable and responsive to incorporate renewables and drive the industry’s shift towards sustainable energy​. For example, BPM enables better coordination between renewable energy production and grid demand, ensuring that energy is efficiently distributed and stored, thereby reducing wastage and improving reliability.


Supporting decentralised energy systems

Decentralised energy systems refer to the generation and distribution of electricity closer to the point of use rather than relying on a centralised grid. As utilities move towards decentralised power systems, BPM helps manage the complexity of these networks, ensuring operational efficiency and reliability. According to the United Nations ESCAP, decentralised energy systems are particularly effective in increasing energy access in remote and rural areas, promoting sustainable development.


Achieving cost efficiency

BPM standardises processes and improves coordination between in-house and outsourced teams, leading to significant cost savings. An EY report from 2024 highlights organisations enlisting the help of energy outsourcing services achieved a 25% reduction in operational costs. This efficiency frees up resources for innovation in other areas.


Decarbonisation and net-zero initiatives

BPM supports the strategic management of decarbonisation efforts, ensuring that processes are streamlined and aligned with sustainability goals. This includes managing carbon capture technologies and facilitating the integration of clean energy sources.


Smart grids and advanced metering infrastructure

BPM enhances the deployment of smart grids by managing the complex processes involved in their implementation, from data analytics to real-time energy distribution management.


Energy storage solutions

For the efficient management and optimisation of energy storage systems, organisations have been keen on turning towards energy outsourcing services. Such efficient management is essential for balancing supply and demand in grids that rely heavily on renewable energy sources.


Demand response technologies

BPM facilitates the implementation of demand response programs, ensuring that utilities can efficiently manage energy consumption in response to grid demands, thus improving grid stability and efficiency​.


Energy-as-a-Service (EaaS)

Energy-as-a-Service (EaaS) is a business model where customers purchase energy services rather than directly buying electricity or fuel. This model allows companies to outsource their energy needs, including energy procurement, management, and optimisation, to a third-party provider who delivers these services based on the customer’s specific requirements. Energy outsourcing services support and promote this business model to focus on efficiency and sustainability.


Risk mitigation

BPM helps organisations manage the risks associated with their operations. By providing real-time visibility into outsourced processes, BPM allows unimpeded performance monitoring. This way, organisations can address issues before they escalate. This capability is particularly valuable when the consequences of service disruptions can be severe.

Energy BPM drives innovation and enhances operational efficiency. The freed-up resources from the organisations can then be redirected towards strategic initiatives, such as integrating renewable energy sources or improving customer service.


How can Infosys BPM help drive innovation in the energy and utilities sector?

Infosys BPM has emerged as a leader in renewable energy research. It has since delivered unique solutions with AI, data analytics, and personalised customer experiences for the energy and utilities sectors. The energy outsourcing services from Infosys BPM can cater to a range of industries and operations, including oil and gas exploration, production, transmission, sales, and marketing.


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