target audience: TECH SUPPLIER Publication date: Nov 2023 - Document type: Market Presentation - Doc Document number: # US49866223
Industry Performance Indices: Worldwide Utilities, 2023
This IDC presentation provides an overview of utility industry performance indices and is based on the analysis of key efficiency metrics of over 900 utility companies to determine the impact of digital transformation (DX) efforts on their financial efficiency.
IDC’s Energy Insights team conducted a study on the impact of DX activities of utilities companies to determine:
- The degree of the DX occurring within organizations
- The effects of DX initiatives on the organization's financial efficiency outcomes
Through this report, readers will be able to understand the correlation between return on assets (ROA) and gross margin performance and coordinated DX efforts for utilities. This metric effectively demonstrates the significance of DX in supporting organizations' financial efficiency and is useful for vendors when talking to customers about increasing their digital capabilities.
"Well-coordinated digital initiatives specifically focusing on emerging technologies, such as AI and cloud implementation, transition utilities organizations to transformative champions, resulting in higher-than-average performance in terms of financial efficiency growth," says Ravikant Sharma, senior research manager, IDC Asia/Pacific Industry Insights Group.
"Within a broader industry context of dynamic change in power generation and transmission, this report sheds light on the crucial correlation between ROA and gross margin performance and coordinated DX efforts for utilities. This report underscores the pivotal role of DX in bolstering financial efficiency and reveals how this metric can be a valuable yardstick for utilities. For vendors, it offers a compelling narrative to engage customers, emphasizing the tangible benefits of enhancing digital capabilities as a strategic move toward achieving stronger financial and operational performance and getting the most out of their assets," says Rakesh Patni, associate research director, IDC Asia/Pacific Energy Insights.