Changes Brewing in North American Energy
North American energy markets may be in for a perfect storm. While the industry is undergoing massive upheaval – in the way of expanded renewables, natural gas surpluses, reduced reliance on fossil fuels, pro-energy legislative reform and increasing investment in infrastructure – digital technology is weighing in on a grand scale.
For the first time ever, terms such as “blockchain,” “artificial intelligence,” and “big data” are being bandied about in board rooms, as depressed prices, reduced volatilities and thinning margins challenge industry participants to think outside the box.
FIS’ latest report, “Digital Disruption in North American Gas and Power Markets,” goes into the thick of it, outlining the external forces in the market that are causing internal reflections on what to do next, especially in the area of digital transformation.
Digital Transformation Is a Good Thing
To begin with, digital transformation is more than just upgrading your software or moving your computing resources to the cloud. Yes, you will need to do just that to accomplish the goal. But, you will also have to rethink the way you approach the business.
This may require an examination of your business processes. You may have to re-engineer your reporting structure and communication channels. You may even need to consider a workforce reset to make it through to the next level. It isn’t called “digital disruption” for nothing.
According to the report, FIS outlines five key digital breakthroughs to ponder as you chart your course for the future. These include:
- Cloud Adoption: The only real way to enable innovation and embrace the full spectrum of emerging technologies with agility, at scale.
- Blockchain Distributed Ledger Technology: A proven framework for trusted trading networks, based on pre-defined business rules and smart contracts.
- Artificial Intelligence: Essentially removing humans from basic decision-making processes, so that more “intelligent beings” can focus on more important work.
- Machine Learning: Configuring systems to use statistical analysis for continuous improvement without human intervention.
- Robotic Process Automation: Employing software robots to recognize events and respond in preprogrammed ways, given today’s fast-moving, real-time energy markets.
As you make your way through the report, you’ll encounter several real-world examples of how this type of technology has already helped energy-related companies realize rapid and substantial gains.
- A small U.S. power exchange adopts blockchain to facilitate trading within a limited area of the established microgrid.
- The U.S. Department of Energy investing in artificial intelligence to monitor and analyze large data sets to balance loads and identify faults.
- Solar and wind producers using machine learning to predict weather patterns and create more accurate demand forecasts.
GET THE REPORT
To summarize, any time spent reading this report will effectively inform you of the options available in today’s digital landscape and provide you with useful insights in mapping your next move in the North American power and gas market. To download the full report, please click here.
Then, get ready to rise with FIS!