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1、 EnterTechnology Adoption and Workforce Readiness in Power&UtilitiesFuture of EnergyMarch 2025Four years ago,we sounded the alarm that while energy companies were making substantial investment in digital technology,they did not have a complementary plan to upskill their workforce to realize returns
2、on those investments.In 2025,our EY Future of Energy survey shows how utilities have progressed their technology adoption and workforce readiness and illuminates new challenges ahead.Amid increasing energy demand and continuing pressure to drive the energy transition,40%of executives from the Power&
3、Utilities(P&U)industry survey believe adopting new technologies will have the most significant positive impact on their industry.The vast majority(93%)plan to invest a“great deal”or“moderate”amount in digital technologies over the next five years.However,when asked about specific core and emerging t
4、echnologies,very few respondents feel these technologies have“met expectations.”Closing this investment-to-expectation gap is crucial as P&U companies strive to enhance efficiency and profitability.To achieve meaningful results,these companies must establish clear,value-driven goals for their techno
5、logy investments.They should also consider a two-track strategy for technology investments,with an approach that delineates core and innovation-focused tools and systems.Further,they must work to ensure the proper resources are dedicated to both in a manner that supports and strengthens short-and lo
6、ng-term performance.As technology moves at light speed and investments soar,it will require a human-centered approach to maximize impact.Utilities must also work to ensure the workforce whether company employee,contractor or third-party vendors has the right skills to realize return on investment an
7、d connect the dots across the broader organization.2Executive summaryTechnology investment critical to industry transformationThe P&U industry is balancing a multitude of priorities.Electricity demand projections are growing significantly,electric and gas infrastructure needs to be modernized,regula
8、tory demands and directives continue to grow,and customer and stakeholder expectations are evolving rapidly in a world focused on sustainability,reliability and resilience.Technology adoption is integral to achieving these goals.P&U executives agree:40%of executive respondents report adoption of new
9、 technology will have the most positive impact on their organization in the next five years.This is a 15-percentage point(ppt)drop from our 2021 survey,a harbinger that while tech remains essential changes in demand consumption are critical to an accelerating demand load in the years to come.This se
10、ntiment illustrates the breadth of simultaneous disruptors in the sector and the inextricable link between tech and the other trends in our research.There is no question technology adoption is critical for success today and tomorrow,and nearly all(93%)respondents say they plan to invest a“great deal
11、”or a“moderate amount”in digital technologies,yet 89%of respondents point to funding as a challenge to adoption.There are other crucial barriers competing priorities,available workforce,lack of vision clarity and leadership support to technology adoption and by extension industry transformation.Indu
12、stry executives will need to adjust their posture to enable and sustain the value from these investments and transform their companies.Which trends will have the most positive impact on your organization in the next five years?48%46%6%0%A great dealA moderateamountA small amountNothing at allHow muc
13、h does your organization plan to invest in digital technologies to keep pace with these trends?40%34%29%27%25%Adoption of new technology by the P&U industriesAdvances in distributed energy resourcesWorkforce evolutionAdvances in renewable energy sourcesChanges in energy consumption 15ppt from 2021 1
14、4ppt from 2021 15ppt from 2021*Indicates new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level3Executive summaryThis most recent survey reflects some promising trends in the P&U industry 86%of respondents believe their workforce is agile enough to respond to
15、 changing business needs.This is supported by the number of respondents who say they have made meaningful gains in upskilling and reskilling since 2021 and are on track to continue this progress.Perhaps most importantly,84%of respondents say the have a robust plan to reskill their workforce a double
16、-digit increase over 2021.Yet,even with these improvements,workforce capacity constraints are materializing.With an aging workforce,a shortage of new talent entering the industry,complex energy systems requiring specialized skills and exponential growth in energy demand,it is more difficult than eve
17、r before to stretch the skills utilities have across their needs.Skills gaps can impact operational efficiency as well as the implementation of technologies and transformative strategies like grid modernization.These efforts are essential to each companys ability to provide safe,reliable and afforda
18、ble energy.P&U companies clearly recognize the criticality of their workforce in achieving their mission as 91%of respondents report their ability to reskill as an organization will determine our success over the next five years.Yet,recognition must be paired with action.Only 26%of respondents say t
19、hey are currently retraining existing employees(while 31%expect existing employees to pick up skills on the job).Further,78%say it is difficult to keep people with in-demand skills in their organization.Utilities need a comprehensive workforce strategy designed to solve for workforce capacity issues
20、 and skill gaps.Now is the time to create focus around continuous learning and upskilling as well as other workforce strategies across the organization.The P&U industry is undergoing unprecedented transformation.By focusing on driving clarity on true strategic priorities for the organization,P&U exe
21、cutives can prioritize technology investments and help ensure they are paired with a holistic workforce strategy.With this strategic approach,the utility can fully realize the value of their advancements and investments.Workforce skills are developing,but utilities are at maximum capacity91%Our abil
22、ity to reskill as an organization will determine our success over the next five years.91%Our ability to adopt digital technologies is a competitive advantage.*Indicates new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence levelCONTENTSTechnology adoption Workforc
23、e readiness Maximum impactAppendixTechnology adoptionWorkforce readinessMaximum impactAppendixTechnology adoption 6Technology adoptionWorkforce readinessMaximum impactAppendix58%61%63%58%59%64%55%37%35%32%36%35%31%38%We are currintly using and in the process of developing improvements or new usesWe
24、are currently using and have plans to develop improvements or new uses in the next five*yearsAdvanced analytics(n=398)AI,including GenAI and/or ML*(n=375)Cloud computing(n=402)Cyber threat,monitoring(IT&OT)intelligence platforms*(n=404)Internet of things(IoT)(n=384)Robotic process automation(RPA)(n=
25、317)Virtual and/or augmented reality(n=318)78%73%79%79%75%62%62%Advanced analyticsArtificial intelligence(AI),including generative AI(GenAI),and/or machine learning(ML)*Cloud computingCyber threat,monitoring(IT&OT)intelligence platforms*Internet of things(IoT)Robotic process automation(RPA)Virtual a
26、nd/or augmented realityPeak demandDriving focus to accelerate scale,valueCurrently usingWith demand for energy products and services increasing,P&U companies are under pressure from customers,stakeholders and regulators.A recent 1%-2%increase in load growth has led to energy supply issues,prompting
27、a rapid adoption of advanced technologies like Advanced Distribution Management Systems(ADMS)and Distributed Energy Resource Management Systems(DERMS)to enhance operational efficiency.This trend is expected to continue.Technology adoption within utilities extends beyond core business units like Gene
28、ration or Transmission.It spans nearly every single function,and many technology stacks are simultaneously implementing upgrades and improvements to enable additional capabilities,in“supply”realization efforts to strengthen customer engagement and overcome outdated systems.As utilities navigate comp
29、eting technology transformations,value realization results as a challenge.Respondents see securing funding for technology adoption as a major challenge(45%),especially as regulators or other stakeholders may lack familiarity with the technologies and question their strategic value.To effectively nav
30、igate this landscape,a clear vision and prioritization of technology investments are crucial.Which technologies are you currently using,and what are your organizations plans for them?*Indicates new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level7Technology
31、 adoptionWorkforce readinessMaximum impactAppendix38%41%43%48%50%50%48%45%40%38%88%89%88%87%87%Strategic clarityPrioritizing with clarity is critical Prioritization is essential for utility companies to create strategic clarity,ensuring resources,investments and efforts align with long-term goals an
32、d evolving industry demands.Perhaps,most importantly,it helps the workforce focus.The survey results shine a light on an overwhelmed workforce 88%of executive respondents say competing organizational priorities are a barrier to digital adoption and 84%say a central vision of the organizations future
33、 is a barrier a 15ppt jump from our 2021 survey.Utilities need to focus on the most impactful initiatives rather than spreading resources too thin.Clear priorities empower teams,enhance agility,improve stakeholder confidence,and deliver on shareholder commitments.The tone must start at the top,which
34、 is critical since 81%of executive respondents say commitment among their organizations leadership is a barrier to digital adoption.Leaders may feel they are delivering clarity,but the results reflect a“saydo”gap that is an intractable barrier to driving value from digital tools.Creating clarity wil
35、l require board level support and active engagement at every level of the organization,but it is necessary to stay ahead in a rapidly evolving marketplace and help to ensure investments meet organization and stakeholder expectations.10ppt from 2021 How much of a challenge to digital technology adopt
36、ion is each of the following for your organization?Major challengeMinor challengePrioritization amid widespread transformation36%41%41%45%44%43%81%85%84%0%50%100%15ppt from 2021 19ppt from 2021 Strategic clarity and cohesionCentral vision of organizations futureCentral coordination of digital techno
37、logy adoptionCommitment among organizations leadersReplacing old systems in order to adopt new technologiesCompeting organizational prioritiesFundingSpeed at which organization can moveAbility to assess progress in adoption*Indicates new addition to 2024 Indicates significantly higher or lower than
38、2021 at a 95%confidence level Due to rounding,some totals may not equal the sum of distinct figures.8Technology adoptionWorkforce readinessMaximum impactAppendixMissed expectationsGrowing adoption isnt translating to valueGiven the challenges utilities face in technology adoption and the scope of tr
39、ansformation taking place,very few are realizing the expected value from their technology investments,prompting a need for reflection.This expectation gap is evident whether the technology is emerging,such as AI where only 16%of respondents say it is meeting expectations,or more foundational like op
40、erational technology,where only 24%say it is meeting expectations.There are several key questions connected to these shortfalls;first,are utilities setting clear,measurable expectations on technologys impact?Second,are users across the organization from operations to leadership aligned?Finally,do al
41、l stakeholders understand how the technologys efficiency gains coordinate to the organizations strategic goals?Technology investments can also miss the mark due to a lack of planning,budget and project management.For example,a lack of understanding of the vendor ecosystem and how to leverage vendor
42、relationships can limit broader impacts.Finally,when organizational groups like IT initiate implementations with minimal engagement from supporting business units,the potential for value realization diminishes significantly.Addressing these issues is crucial for enhancing technology outcomes.78%72%6
43、3%77%77%62%74%79%70%81%61%61%Advanced analyticsAI,including GenAI and/or MLChat bots(virtual assistant)Cloud computingCyber threat,monitoring(IT&OT)intelligence platforms*Digital twin*Internet of things(IoT)Mobile platforms/apps(mobile devices for field technicians)Next-gen enterprise resource plann
44、ing(Next-gen ERP)Operational technology(e.g.,remote sensors and monitoring,etc.)*Robotic process automation(RPA)Virtual and/or augmented realityWhich of the following technologies is your organization is currently using,and have they lived up to your organizations expectations?Currently usingLived u
45、p to expectations*Indicates new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level 20ppt from 2021 23ppt from 2021 11ppt from 2021 11ppt from 2021 6ppt from 2021 14ppt from 2021 21%27%13%9%18%22%11%16%22%11%13%24%9Technology adoptionWorkforce readinessMaximum
46、 impactAppendixSkills and adoptionStagnating skill availability despite improving maturitySkill maturity is improving across several areas in the survey,but skill availability remains constrained.As the industry undergoes rapid transformation driven by advancements in renewable energy,smart grid tec
47、hnologies and digitalization,the demand for specialized skills and sector know-how is surging.Further,those utilities not currently using a certain technology,but plan to,face these skills gaps.For example,only 63%of planned cloud computing user respondents say they have the skills necessary to real
48、ize investment value.The discrepancy between current and planned users may result from utilities reliance on outsourcing and vendor partnerships to acquire necessary skills.Obtaining these skills in-house often proves challenging,however,a reliance on third parties could also hinder long-term adopti
49、on.Additionally,the low percentage of planned users may reflect diminished expectations regarding technology investments.Utilities may not anticipate a substantial number of high-skilled future users due to lower-than-expected technology expectations and adoption rates,particularly for technology st
50、acks like Next-gen ERP.While skill availability appears to be high now,the rapid pace of technology implementation over the next five years may outstrip the availability of skilled personnel.This may impact the effectiveness of their technology investments.84%79%81%85%84%79%84%90%83%88%84%77%51%47%6
51、3%63%54%55%53%59%58%55%52%48%Advanced analyticsAI,including GenAI and/or MLChat bots(virtual assistant)Cloud computingCyber threat,monitoring(IT&OT)intelligenceplatforms*Digital twin*Internet of things(IoT)Mobile platforms/apps(mobile devices for fieldtechnicians)Next-gen ERPOperational technology(e
52、.g.,remote sensorsand monitoring,etc.)*Robotic process automation(RPA)Virtual and/or augmented realityWe have the skills for the tech we are usingWe have the skills for the tech we plan to useDoes your workforce currently have the skills it needs to realize the investment in this technology?*Indicat
53、es new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level 14ppt from 2021 Technology adoptionWorkforce readinessMaximum impactAppendixWorkforce readiness 11Technology adoptionWorkforce readinessMaximum impactAppendixPace of skills and techAs utilities acceler
54、ate their technology investments to enhance grid reliability,improve operational efficiency and drive the energy transition,it is critical to simultaneously grow workforce skills.Theres been a marked improvement in skill availability since our 2021 survey,with more than 10 key skills showing double
55、digit jumps in availability.Yet,a meaningful gap remains between 11%and 25%across key skill areas.With rapid advancements in IoT,AI and other end-use computing tools,with new releases every 12 to 18 months,workers need to continuously upgrade their skills and experience to keep pace.More work is nee
56、ded to close the gap and build the continuous learning capability necessary for utilities to keep pace.Aligning workforce development with technology enables companies to fully leverage their digital investment,drive innovation,and maintain a competitive edge in an evolving energy landscape.As techn
57、ologies such as cloud computing,blockchain,and digital twinning continue to expand both among existing users and new adopters the demand for employees with relevant skills will only intensify.Growing skills to match investments37%40%34%35%33%34%31%37%30%31%30%30%34%28%51%45%51%48%50%49%52%44%51%51%4
58、9%48%43%44%11%14%15%15%16%15%16%18%18%18%19%20%22%25%0%1%0%1%1%2%1%1%1%1%1%2%1%2%EngineeringCloud computingData analytics/Data scienceData visualizationUser Experience design/Design thinkingDigital engineeringDigital literacyCybersecurityProgramming(such as Python,Java,etc.)Agile program managementR
59、obotic process automation(RPA)Prompt engineering(i.e.,designing inputs for AI tools)*Artificial intelligenceVirtual and/or augmented realityMore than adequateAdequateInadequateNot sureHow readily available is each skill in your current workforce relative to organizations needs today?*Indicates new a
60、ddition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level 18ppt 19ppt 23ppt 28ppt 23ppt 21ppt 30ppt 20ppt 48ppt 45ppt 42ppt12Technology adoptionWorkforce readinessMaximum impactAppendix25%21%25%22%20%23%20%19%21%22%22%20%20%19%45%44%38%41%42%39%41%41%38%36%35%35%33%3
61、4%22%28%25%23%26%24%27%27%31%25%30%25%27%24%4%6%6%8%8%6%7%10%6%10%9%15%12%14%2%1%4%6%3%7%3%2%2%6%4%6%5%7%0%0%0%1%0%1%1%1%1%1%0%0%2%2%EngineeringData analytics/Data scienceCloud computingProgramming(such as Python,Java,etc.)Data visualizationCybersecurityDigital engineeringUser Experience design/Desi
62、gn thinkingDigital literacyRobotic process automation(RPA)Agile program managementArtificial intelligencePrompt engineering(i.e.,designing inputs for AI tools)*Virtual and/or augmented reality*ExpertAdvancedIntermediateNovice*Basic knowledgeNot sureTop 2 Box Most Responsible(Expert+Advanced)71%64%64
63、%63%62%62%61%60%59%58%56%54%54%53%26ppt 37ppt 33ppt 35ppt 34ppt 27ppt 29ppt 31ppt 28ppt 35ppt 46pptHow would you rate your organizations current level of maturity for each skill?*Indicates new addition to 2024 Indicates significantly higher or lower than 2021 at a 95%confidence level Due to rounding
64、,some totals may not equal the sum of distinct figures.13Technology adoptionWorkforce readinessMaximum impactAppendix86%We are ahead of our competition in building a workforce for the digital futureIt is difficult to keep people with indemand skills in our organizationCapital investmentInvesting in
65、technology without a corresponding plan to enhance workforce skills can lead to significant value leakage for organizations.While four in five respondents believe they are ahead of the competition in preparing their workforce for the digital future,the survey reveals a more complex reality regarding
66、 skill availability and retention.More than three-quarters of respondents struggle to retain employees with in-demand skills,and 72%acknowledge the need to diversify recruiting approaches.Furthermore,88%of companies identify hiring and retaining workers proficient in new technologies as a challenge,
67、with a similar percentage noting a shortage of workers possessing the right skills within their current workforce.This disconnect highlights the critical need for organizations to formalize their workforce transformation efforts and align them with capital investments in technology.Investing in tech
68、 without workforce risks value48%Somewhatagree4%Stronglydisagree34%Stronglyagree15%SomewhatdisagreeTotal agree:82%3%Stronglydisagree35%Stronglyagree43%Somewhatagree19%SomewhatdisagreeTotal agree:78%12ppt from 2021 29ppt from 2021Our workforce is agile enough to respond to changing business needs.Ind
69、icates significantly higher or lower than 2021 at a 95%confidence level Due to rounding,some totals may not equal the sum of distinct figures.14Technology adoptionWorkforce readinessMaximum impactAppendixWorkforce readinessWhile 91%of respondents believe the ability to reskill the workforce will be
70、crucial for success over the next five years,only 26%say they are currently retraining existing employees.Instead,31%currently expect employees to acquire new skills on the job.This disjointed strategy is likely reflective of the silos in which these solutions originate,failing to connect to intende
71、d business outcomes and leaving organizations ill-prepared to adapt to rapidly evolving technological demands.Moreover,the absence of a comprehensive workforce strategy is likely a contributor to employee engagement and retention issues.A“go-it-alone”approach expecting employees to use discretionary
72、 effort or just pick up skills as they work not only contributes to value leakage but leads to employee disaffection and disengagement.To effectively develop workforce skills,organizations must adopt a holistic approach aligning capital investments in technology with investments in workforce develop
73、ment and measuring value realization through this lens.Reskilling approach remains fragmented38%29%31%28%26%25%36%43%38%41%43%41%21%23%25%23%25%26%4%3%5%7%4%7%1%1%1%1%1%1%Hire new permanent staff with skills relevant to new technologiesDiversify recruiting practices to broaden the range of skills an
74、d abilitiesExpect existing employees to pick up skills on the jobHire new temporary staff with skills relevant to new technologiesRetrain existing employeesRedeploy staff to other parts of the businessCurrently doing thisPlan to do thisLikely to do thisUnlikely or will not doWill not doHow will your
75、 organization address changing skills needs over the next five years?15Technology adoptionWorkforce readinessMaximum impactAppendix34%37%38%38%41%40%40%42%44%45%46%48%45%48%47%46%78%82%85%86%86%88%87%88%Major challengeMinor challengeThe time needed to retain or attract talentLack of talent with tech
76、nology-oriented skillsCompeting organizational priorities affecting the abilityto focus on retention/attractionCosts to retain or attract talent are higher than the benefitsLack of people to work on retention and attraction effortsLack of funding to retain or attract talentDifficulty assessing new t
77、alents skillsLack of active support from senior leadershipBridge the gapWhether utilities are aiming to hire to fill technology skill gaps or retain those with critical skills,they face challenges on both fronts.Competition for attracting and retaining these professionals is intense as companies acr
78、oss many sectors are actively recruiting talent with in-demand skills.Further,the EY Work Reimagined 2024 Survey found energy employees are more likely to quit(52%)than other industries.However,retention and attraction efforts are complicated by the fact that 88%of respondents point to the time need
79、ed to retain or attract talent as a challenge,85%report a lack of dedicated personnel and 78%cite insufficient support from senior leadership to address worker attraction and retention.Further,82%of respondents say it is a challenge to assess new talents skills while 86%believe the costs to retain o
80、r attract talent are higher than the benefits.For the modern utility to meet the demands of their capital agenda,it is crucial to develop a robust workforce strategy focused on sourcing,retaining,and developing talent ready and equipped to drive the energy transformation.Hiring and retaining critica
81、l and in-demand technology skillsWhat challenges do you face related to worker retention or attraction?91%We should consider recruiting different employees than we have in the past.Due to rounding,some totals may not equal the sum of distinct figures.16Technology adoptionWorkforce readinessMaximum i
82、mpactAppendixWorkforce mixWhile more than half of companies indicate they will recruit to meet skill needs in critical areas,40%plan to rely on contractors and contingent workers.In fact,88%of respondents agree they will need to depend on vendors and contractors more than they have in the past.These
83、 strategies allow organizations to rapidly access specialized skills and experience that may not be available internally,facilitating the implementation of new technologies and driving innovation in the short term.In the long term,over-reliance on a multichannel workforce can hinder an organizations
84、 ability to build and retain internal talent,ultimately jeopardizing its market differentiation.To maintain a competitive edge,organizations must strike a balance between utilizing external talent and investing in the continuous development of their internal workforce,working to ensure that they cul
85、tivate a skilled and adaptable team capable of driving long-term success.Taking a multichannel approach solves and creates challenges88%Meeting our workforce needs will require us to rely more on vendors and contractors than in the past.36%35%28%28%40%40%41%40%20%19%23%25%3%6%7%6%Look to automate so
86、me workOutsource some business functions to externalcontractorsHire new temporary staff with skills relevant to newtechnologiesHire freelancers and/or contingent workers withskills relevant to new technologiesCurrently doing thisPlan to do thisLikely to do thisUnlikely or will not doWill not doHow w
87、ill your organization address changing skills needs over the next five years?1%1%1%1%17Technology adoptionWorkforce readinessMaximum impactAppendixOur organizations culture impedes the adoption of digital technologies Our organizations structure makes innovating more difficultSecret sauceTo effectiv
88、ely bridge the gap between workforce and technology investments,companies must shift both culture and mindset.Almost three-quarters of our survey respondents(73%)report their culture impedes the adoption of digital technologies,and 74%indicate that organizational structure complicates innovation eff
89、orts.Further,89%point to competing organizational priorities as a challenge.Leadership commitment is crucial in facilitating this cultural transformation.To overcome these challenges,leaders must articulate a clear vision that connects workforce development to the strategic goals of technology inves
90、tments,demonstrating how upskilling can enhance operational performance and competitive advantage.Rather than seeing skills as a static requirement,leaders must recognize them as dynamic assets,constantly changing and expanding to facilitate innovation.By fostering an environment where employees fee
91、l empowered to pursue new skills and knowledge,companies can unlock the full potential of their technology investments,helping to ensure they remain agile and responsive in a rapidly evolving industry landscape.Shifting the culture and mindset is necessary 35%Somewhatagree11%Stronglydisagree38%Stron
92、glyagree17%SomewhatdisagreeTotal agree:73%8%Stronglydisagree34%Stronglyagree41%Somewhatagree18%SomewhatdisagreeTotal agree:74%88%Our senior executives give skills transformation enough attention.Due to rounding,some totals may not equal the sum of distinct figures.Technology adoptionWorkforce readin
93、essMaximum impactAppendixMaximum impact19Technology adoptionWorkforce readinessMaximum impactAppendixOrganize with a value-first lensStephanie ChesnickEY Americas Power&Utilities LeaderPlanning based on impactAligning value realization and expectations from regulators to business unit stakeholder gr
94、oups will promote successful,technology-driven efficiency gains and support the workforces operational adoption.Organizing with a value-first lens in technology investment is crucial to maximize returns and maintain safe,reliable service to customers,especially given that very few companies are achi
95、eving the expected value across a range of technologies.Utilities should evaluate technologies based on their return on investment,scalability,ability to integrate with existing infrastructure,and workforce readiness.Priority should be given to those initiatives that deliver measurable efficiency an
96、d safety gains,improvement in resilience and enhance customer engagement and experience.A value-first mindset is critical to focus the organization on those activities that will have the greatest impact.Companies must become smarter about identifying cost-to-value ratios and be more selective in the
97、ir technology choices to help ensure each investment contributes to operational goals.By fostering a culture that emphasizes the importance of measurable outcomes and collaboration across departments,organizations can create an agile and responsive environment that enhances technology adoption at sc
98、ale and strengthens market position.20Technology adoptionWorkforce readinessMaximum impactAppendixOvercome peak demand with a two-track modelOmar Al-JuburiEY Americas Power&Utilities Technology Consulting LeaderPrioritizing amid max capacityManaging the industrys ever-increasing technology adoption
99、will require purpose-driven coordination.By utilizing tailored twotrack models,utilities can drive better efficiency and innovation around both core and emerging technologies.Utilities as organizations are at peak demand.The pace of digitalization continues to accelerate as they must navigate a rapi
100、dly evolving energy landscape with competing priorities:modernize aging infrastructure,integrate renewable energy,enhance grid resilience,improve cybersecurity,meet stricter environmental regulations and keep costs affordable for consumers.Balancing these and other demands strains resources,requires
101、 massive investments,and increases operational complexity,making it difficult to meet expectations without strategic planning and intentional changes to the operating model.One effective approach is to adopt a two-track model for technology,which distinctly separates foundational core technologies s
102、uch as ERP and data management,typically developed over two decades from fast-evolving innovation technologies like AI.This model allows utilities to balance innovation with operational stability.Optimizing and maintaining core infrastructure grid management,power generation and distribution require
103、s different strategic focus and skill set to enable reliability,regulatory compliance and cost efficiency.The demand line on these skills is also more predictable,allowing leaders to easily align workforce development initiatives with planned tech investments.Conversely,innovation technologies requi
104、re a more agile and exploratory approach with smart grids,AIdriven predictive maintenance and energy integration.Companies should foster a culture of experimentation and continuous learning,encouraging employees to engage with emerging technologies through hands-on projects and collaborative initiat
105、ives.Upskilling the workforce in this context involves not only technical training but also cultivating a mindset that embraces change and innovation.This two-track model enables companies to more effectively balance demands,prioritize upgrades and capital investments,and secure a capable workforce
106、ready to deliver on these commitments.21Technology adoptionWorkforce readinessMaximum impactAppendixAlign technology to talentTim HaskellEY Americas Power&Utilities People Consulting LeaderStrategizing to boost capacityInvesting in technology without investing in our workforce is like upgrading the
107、grid without ensuring the power flows.To truly modernize,organizations must equip the workforce with the skills and mindset to adapt,innovate and maximize the value of technology.To modernize operations and maximize effectiveness of new technology,utilities must align their technology investments wi
108、th workforce development investments.While many respondents(82%)believe their companies are ahead in building a digital-ready workforce,deeper insights reveal ongoing challenges including skill gaps,talent retention issues,and a lack of strategic focus that hinders the full potential of new technolo
109、gies.The question is no longer just whether companies have the capital to invest in technology but whether their workforce is prepared to operate it safely and effectively.Successful alignment requires a continuous learning capability to help ensure workforce resilience as new technologies reshape j
110、ob demands.The effectiveness of these investments depends on the readiness and adaptability of the workforce.Key strategies include:Providing resources,mentorship and cross-functional collaboration to encourage innovation.Cultivating a mindset that embraces change alongside technical upskilling.Prio
111、ritizing workforce training in parallel with technology investments to maximize value.Leveraging technology and external partnerships to supplement workforce capabilities.Continuously assessing human-machine collaboration to proactively address skill gaps.By embedding workforce readiness into techno
112、logy strategies,utilities can future-proof operations,sharpen implementation capabilities and drive long-term success in an evolving industry.22Technology adoptionWorkforce readinessMaximum impactAppendixFoster an agile workforcePrioritizing continuous learning and adaptability within their organiza
113、tional culture enables companies to create agility in their workforce.In a sector where rapid technological advancements,regulatory changes,and evolving customer expectations require employees to adapt quickly,continuous learning should be seen as an organizational capability.Investment in ongoing l
114、earning,upskilling,and knowledge sharing creates the conditions necessary to enhance problem-solving abilities,improve operational efficiency,and drive innovation.This approach will require mindset and budget shifts training can no longer be a cost center,but a catalyst toward enterprise objectives
115、and shareholder value.A culture of continuous learning empowers workers to adopt and integrate emerging technologies like smart grids,automation,and data analytics and scale them for value and impact.It fosters collaboration and cross-functional expertise,enabling teams to respond proactively to dis
116、ruptions,enhance service reliability,and meet energy transition goals.Perhaps,most importantly,it contributes to a dynamic organization that becomes a magnet for talent and innovation.Cultivating a workforce that embraces change takes time and focus especially given the structural challenges that ex
117、ist but it is crucial to enterprise objectives and maintaining a competitive edge.Building a competitive edgeBy putting humans at the center of their technology strategies,utilities can modernize their operations,maximize technology effectiveness,and ultimately build resilience for long-term success
118、.Empowering your most important assetyour workforcewith the right tools and support transforms challenges into opportunities for sustainable progress.Hetal PatelEY People Consulting PartnerPower&Utilities23Technology adoptionWorkforce readinessMaximum impactAppendixTransform culture and mindsetRyan
119、LevineEY Americas Power&Utilities Consulting LeaderEnable unconstrained and lasting changePrioritizing a utility workforce culture that better deploys technology whether to improve operations performance,customer experience or predictive maintenance is critical to resilience today and tomorrow.To fu
120、lly unlock the value of technological advancements,utility executives must drive a cultural shift toward innovation,agility,and digital transformation.Traditionally,utilities have operated within rigid regulatory frameworks,prioritizing stability over change.However,with the accelerating pace of inn
121、ovation and rising energy demands,leaders must cultivate a workplace that embraces experimentation,continuous learning,and adaptability.Creating an environment where employees feel empowered to take risks and explore new solutions without fear of failure is essential.This requires dismantling silos,
122、fostering crossfunctional collaboration,and demonstrating leadership vulnerability when navigating emerging technologies.Instead of a cost-centric mindset,executives must adopt a longterm,value-driven approach that prioritizes customer experience,operational resilience,and environmental sustainabili
123、ty.Sustaining this transformation demands consistent communication and engagement across all levels of the organization.Leaders should establish open forums for employees to share insights and experiences related to technology adoption and innovation.By actively seeking feedback and involving employ
124、ees in decision-making,they can instill a sense of ownership and accountability within the workforce.Additionally,aligning technology investments with workforce development reinforces the message that skills and innovation are critical to the companys long-term success.Through this cultural shift,ut
125、ility companies can remain competitive,agile,and well-positioned for the future.Technology adoptionWorkforce readinessMaximum impactAppendixAppendix25Technology adoptionWorkforce readinessMaximum impactAppendixMethodology:TRUE Global Intelligence,the in-house research practice of FleishmanHillard,co
126、nducted an online survey of 512 global P&U employees.The survey was fielded from November 4 to December 3,2024,with a median completion time of 15 minutes.To qualify for the survey,respondents must work within their employers strategy,operations,IT,digital or HR departments,or hold such a role in an
127、other department.Employees at the non-manager/staff level were asked questions about their perceptions of the energy and P&U industry,while employees at the director level and above were asked about specific technologies,skills and challenges at their organization.Throughout the report,respondents w
128、ith manager titles or lower are referred to as Employees and director and above level respondents are referred to as“Executives.“This survey was fielded in the Americas,EMEA and APAC Regions,with the following sample breakout:46%34%20%AmericasEMEAAPACRegional breakoutAmericasn=233United Statesn=155B
129、raziln=30Canadan=48EMEAn=176Germanyn=77Saudi Arabian=27United Kingdomn=72APACn=103Indonesian=50Malaysian=53Whos included in our survey26Technology adoptionWorkforce readinessMaximum impactAppendixRespondent profileCountryUS30%Canada9%Brazil6%UK14%Germany15%Saudi Arabia5%Malaysia10%Indonesia10%U.S.30
130、%Area of responsibilityBusiness strategy25%Operations26%Information technology(IT)29%Human resources(HR)14%Digital technology18%Finance13%Supply chain/logistics28%Transformation12%Other1%Job levelC-level12%Vice president12%Director47%Manager26%Analyst/individual contributor3%Time in industryAverage
131、number of yearsTotal11.14Employees11.18Executives11.13Decision-making authorityTechnology adoptionI am the primary decision-maker42%I share decision-making38%I advise decision-makers18%None of these3%DigitizationI am the primary decision-maker39%I share decision-making43%I advise decision-makers15%N
132、one of these3%Training and recruitmentI am the primary decision-maker39%I share decision-making35%I advise decision-makers23%None of these3%27Technology adoptionWorkforce readinessMaximum impactAppendixRespondent profileMarkets organizations operate inNorth America44%Europe33%Asia-Pacific20%Middle E
133、ast15%Latin America10%Africa4%Employees in organizationFewer than 49922%500 to 99924%1,000 to 4,99926%5,000 to 24,99919%25,000 or above7%Market organization operates inRegulated market56%Partially regulated market42%De-regulated market24%Not applicable2%Organizational revenueLess than US$1 billion34
134、%US$1 billion to$9.999 billion25%US$10 billion to$24.999 billion14%US$25 billion to$49.999 billion11%US$50 billion to$74.999 billion5%US$75 billion or more7%Service provided by utilityElectric66%Gas40%Water34%Renewable energy46%Other2%EY|Building a better working worldEY is building a better working
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139、g Global Limited operating in the US.2025 Ernst&Young LLP.All Rights Reserved.US SCORE no.26101-251US2409-10049-CSED NoneThis material has been prepared for general informational purposes only and is not intended to be relied upon as accounting,tax,legal or other professional advice.Please refer to your advisors for specific