Powering Tomorrow

We started by considering how to enable innovation and drive value – whilst also keeping security high, especially where integration risk is a key concern.

Many players in the energy industry have large OT (operational technology) estates – which means that a complete migration to the cloud may not be feasible. Edge computing to share workloads between local networks and the cloud is therefore an important approach.

“We’re also seeing growing use of containerisation which increases portability and flexibility. Another important principle is to minimise customisation of SaaS platforms – copy best practice for maximum value.” - Rajesh Naik, Data and Analytics Leader, Energy and Utilities, IBM

Data security is obviously also critical – by understanding your data assets, categorising and classifying them and maximising visibility of any gaps which can then be remediated. Knowing your data is important in another sense too – many businesses are concerned about vendor lock-in.

“In our unit- and subscription-based economy, companies have options. Once you have the data, you can make good decisions. Go out and explore.” - Marlon Oliver, Senior Vice President, EMEA & APAC Operations, Flexera

Of course, it didn’t take long for AI to come up. AI is creating a fundamental shift with the prospect of hugely increased analytical capability, predictive modelling power and enhanced employee productivity. AI is becoming the co-pilot not just for people but for whole processes too.

“To harness AI, we need process-driven thinking. In partnership with technology providers, it’s about architecting solutions where AI is embedded into processes that are value-additive in nature but sustainable by design.” - Lewis Richards, Chief Sustainability Officer, Microsoft

All three panellists coalesced around the point that to drive successful AI adoption, culture is key – and this needs to be led from the top. At a leadership level, some degree of trust in AI is needed, within a clear governance framework, and staff must be encouraged to buy in. Investment in staff training and upskilling is also clearly essential. Meanwhile, data is critical to success as this is the foundation layer upon which AI works.

Finally, we discussed regulation which is an area where a lot is happening with new requirements like the EU’s AI Act coming up fast. Encouragingly, regulation was generally seen as a positive driver by our panel.

“It has always been difficult for IT to get budget, but regulation is helping Boards to appreciate the importance of modernising the tech stack.” - Marlon Oliver, Senior Vice President, EMEA & APAC Operations, Flexera

This applies not only through directly technology-orientated legislation like the AI Act, but other areas too such as sustainability reporting. The EU’s Corporate Sustainability Reporting Directive (CSRD) has already come into effect for the largest businesses with an EU footprint. Even though the current ‘Omnibus’ proposals would delay the applicability of the CSRD for other firms, sustainability reporting is well and truly with us – and requires technology solutions to capture and verify a lot of the data needed.

“Sustainability regulation is a good thing in my view and is driving change and innovation. It is also a lever that IT functions can use with the business: work with us in a ‘Green Ops’ approach. There’s an opportunity to pair technology up with regulatory pressures to really drive modernisation.” - Lewis Richards, Chief Sustainability Officer, Microsoft

“It’s very progressive that data and digitisation strategy has become part of license conditions, while the open data concept is opening lots of avenues for market participation.” - Rajesh Naik, Data and Analytics Leader, Energy and Utilities, IBM

At the end of an engrossing discussion, we closed with the motivational thought that it is cross-collaboration between energy businesses, technology providers/advisors and regulators that can help really drive progress. No one can go it alone – but by working together, there is so much that can be achieved as technology rapidly evolves and brings ever greater value across the enterprise.