IBMInstituteforBusinessValueBenchmarkInsightsPreparingelectricutilitiesfortheenergytransitionInsightsfromtheCleanElectrificationMaturityModel2LearnhowIBMcanhelpyourenergycompanybecomemoreresilient,reliable,andsustainablethroughacleanelectrificationstrategy.Weworkwithleadingcorporationsandorganizationsthataredrivingtowardnet-zerocarbonemissions,increasedelectrification,andacleanerplanetthroughadvancedtechnologiesanddata-driveninsights.Letushelpyoudevelopnewwaystopowerthroughthechallengesahead.Visitusatibm.com/industries/energyHowIBMcanhelpBenchmarkingandopenstandardsarekeytoorganizationsmakingbetterdecisionssmarter,faster,andwithgreaterconfidence.Astheforemostauthorityonbenchmarking,bestpractices,processandperformanceimprovement,andknowledgemanagement,APQCisyourpartnerforeverythingfromoptimizingbusinesscapabilitiestoorganizationaltransformation.Formoreinformationvisitwww.apqc.org.HowAPQCcanhelp1Utilitiesaremodernizingfordecarbonization,butprogressisslow.Amaturityassessmentofthecleanelectrificationcapabilitiesoftransmissionanddistributionutilitiesfoundthatthemostmatureenterpriseshaveanorganization-widevisionandstrategytomodernizeandinnovate,andarewellunderwayintransformingculturesandoperations.However,theaveragematurityofcleanelectrificationcapabilitiesislow,reflectingmeaningfulopportunitiesforadvancement.Technologyandgridoperationsrepresentsignificantchallenges.ThemostmatureutilitiesprioritizeIT/OTarchitectureinitiativesand100%ofthemhaveanenterpriseITarchitectureinplace.Theyare2.8timesmorelikelytoalignIT/OTarchitectureroadmaps,and95%ofthemostmatureutilitiesprioritizedevelopmentofdistributedenergyresources(DER).However,thematuritygapbetweenmorematureandlessmatureorganizationsingridoperationsandtechnologyissmall,pointingtotheneedfortheentireindustrytodevelopfasterinthesekeydomains.Dataanalyticsdifferentiatethemostmatureutilitiesacrossoperationaldomains.Themostmatureutilitieshavedeployedmoreadvanceddataanalyticcapabilitiesandare2.7timesmorelikelytousereal-timeanalytics.ByusingAIenablementofassetandinventoryforecasting,theyhaveopenedupalargegapbetweenthemselvesandtheirlessmaturecounterparts,being5.7timesmorelikelytoimplementthistransformationaltechnology.Themostmatureelectricutilitiesareevolvingfortheenergytransitionandhaveorganization-widestrategiesforinnovationandmodernizationinplace.Keytakeaways2Cleanelectrification:PoweringupdecarbonizationeffortsIn2023,theglobalefforttodecarbonizewillreachtwotippingpoints.Forthefirsttime,investmentsinsolarpowergenerationwillexceedspendingonoilproduction.1Andwithwindandsolarnowgeneratingover12%ofglobalelectricity,2023isprojectedtobetheyearwhenemissionsrelatedtopowergenerationstartstodecline.2Cleanelectrification—usingelectricitygeneratedfromlow-carbonsourcesinsteadoffossilfuels—isacrucialelementofglobaldecarbonizationfortheelectricutilityandindustrialsectors.Thisprogressisgoodnewsfortheelectricpowerindustryandforsustainabilityeffortseverywhere.However,asutilitiesincreasecleanelectricitygeneration,theyarealsounderescalatingpressuretoreduceemissionsby45%by2030ascalledforbytheParisAgreement.3Atthesametime,theelectricpowerindustrymustmakemulti-trillion-dollarinvestmentsingridimprovementstomeetthegrowingglobaldemandforelectricity.Basedonthesechallenges,customers,investors,governments,communities,andotherstakeholdershavebigquestionsforelectricutilities:Whataretheydoingtobuildaresilientandsustainableenergyfuture?Howaretheyapplyingnewtechnologiesandinnovatingtotransformoperations?Andhowdotheycomparewithpeerelectricutilities—whataretheylearningfromotherstoincreasetheircapabilities?TheCleanElectrificationMaturityModel(CEMM)wasdevelopedspecificallyforelectricutilitiestoanswerthesebigquestions.Itisthefirstcomprehensivetoolthatenableselectricutilityexecutivestomeasuretheirperformanceacrossabroadspectrumofcapabilities,getaclearpictureofwheretheyneedtogetbetter,(or“visualizewheretheyneedtoimprove”)setprioritiesfortransformation,andtrackprogressalongtheway.WiththeCEMM,electricutilitiesnowhaveaproven,objectivetoolthataddressesabroadsetofcapabilitiesdrivingcleanelectrificationacrosstheenterprise.TheCEMMalsoservesasacompassthatpointstotheleaders—theelectricutilitieswiththehighestmaturitylevelsinthecapabilitiesthatwillpoweramoresustainableenergyfuture.3FIGURE1TheCleanElectrificationMaturityModelTheeightdomainsandtheoperationalcapabilitiesundereachdomainBusinessvisionRegulatoryandstakeholdermanagementModelingandplanningFinancialandriskmanagementTheCleanElectrificationMaturityModel:AroadmaptoguideelectricutilitymodernizationBasedon14yearsofresearchandinputfromelectricutilityexpertsaroundtheworld,theCEMMwascreatedbyIBMandtheAmericanProductivity&QualityCenter(APQC),anonprofitorganizationthatprovidesopenstandardsbenchmarks.Designedasamultidimensional,dynamicself-assessmenttool,theCEMMmapseighthigh-leveldomainsthatreflectthetopstrategicimperativesfacingutilitiesandcross-checksupto200operationalcapabilitieslistedundereachdomain(seeFigure1).OperatingmodelandchangemanagementEmployeeexperienceKnowledgemanagementandtalentHealthandsafetyInformationstrategyandinnovationArchitectureandsecurityProjectdeliveryandecosystemsDataandanalyticsstrategyEnvironmentalstrategyandgoalsPublichealthandsafetyDecarbonizationandnetzeroCommunityengagementFaultsandoutagemanagementSystemoperationsandreliabilityOperationalefficiencyMicrogridsandDEREngineeringandprojectportfoliomanagementAssetmanagementWorkmanagementExternalitiesProspectAcquireServiceRetainStrategyandLeadershipOrganizationandCultureTechnologySustainabilityGridOperationsWorkandAssetManagementCustomerExperienceResearchandinnovationNewenergyecosystemsNewservicesandrevenuestreamsEnergymarketsbalancingMarketInnovation4FIGURE2Fivelevelsofself-assessedmaturityTheCEMMcalculatesmaturityscoresfromLevel1to5basedonhowutilitiesrespondtoquestionsineachdomainLeadingBreaksnewgroundandadvancingthestateofpractice4LivingImplementationistunedtoincreaseorganizationalperformance5Utilitiescango(ordive)asdeepintotheCEMMassessmentmatrixastheywant.Participantsselectoptionsthatdescribehowtheyaddresseachcapability.ThematuritymodelusestheseinputstorankeachdomainaccordingtoarangeofmaturitydesignationsthatstartatthelowerendwithEvaluating,Developing,andImplementingandrisetothehigherlevelsofLivingandLeading(seeFigure2).Bycomparingtheirownlevelsofmaturitytootherorganizations,electricutilitiesdiscoverwherethematuritygapsexist.AfteropportunitiesforimprovementareidentifiedwithintheCEMMframework,electricutilitiescantargetspecificcapabilitiesforimprovement.Andbyboostingmaturitylevelsinthesefocusareas,electricutilitiescanachieveperformanceandsustainabilitygoalsintheareaswheretheymattermost.1EvaluatingTakingthefirstimplementationsteps2DevelopingImplementingmodernizationfocusacrosstheenterprise3ImplementingDeploymentisintegratedacrosstheorganization45ThefirstglobalCEMMsurveyrevealedsignificantopportunitiesforimprovementIn2022,90transmissionanddistribution(T&D)electricpowerutilitiesparticipatedinthefirstglobalCEMMsurvey.Theseutilitiesrepresentacrosssectionoforganizationalsizesandstructuresandoperatein26countries(see“Studyapproachandmethodology”onpage22).Basedonthesurveyresults,theIBMInstituteforBusinessValue(IBMIBV)calculatedmaturityscoresforindividualorganizationsandanoverallmaturityscoreforallrespondents.TheCEMMshowsthatoverallmaturitylevelforT&Dutilitiesislow.WithanaveragematurityscorelowerthanDeveloping(Level2outof5),thereisconsiderableheadroomforimprovement(seeFigure3).However,maturityscoresreportedbyorganizationsinthetop25%showthatsomeutilitieshavemadesubstantialprogressintransformingtheiroperations.Howdidthemostmatureutilitiesgetthatway?Whatareleadersdoingthatotherutilitiescanemulate?Wherearetheycarvingoutthebiggestleads?Andwhydoesimprovingcapabilitiesinhighprioritydomainsmakeadifference?Byfocusingonsignificantgapsbetweenhigh-maturityelectricutilitiesandothers—areaswhereleadersareoftentwoorthreetimesfurtherahead—thisreporthighlightssomeofthebiggestopportunitiesforimprovement.T&Dutilitiesstartingatthelowerendofthematurityspectrumcanseewheremorematurepeersinvesttheirtimeandeffort,assesstheirpathtoimprovement,andmakeplanstoimprovetheirownresults.6Source:IBVCleanElectrificationMaturityModelBenchmarkStudy,2023.(n=105,T&D=90)StrategyandLeadershipOrganizationandCultureTechnologySustainabilityGridOperationsWorkandAssetManagementCustomerExperienceMarketInnovationFIGURE3RangeofcleanelectrificationmaturityscoresofT&Delectricutilities12345EvaluatingDevelopingImplementingLivingLeading2.21.6OverallmaturityscoreMostmature25%Averagematurity7GuidedbytheCEMM,alargeelectricutilitylaunchesatransformationprojectDuetochallengesrelatedtoclimatechange,extremeweather,energytransition,shiftingcustomerneeds,andachangingworkforce,alargeelectricutilityexperiencedsignificantpoweroutages.Afteraperformancereview,operatorsconcludedthatdisruptionswouldcontinueunlesstheytooksignificantmitigationactions.UsingtheCEMMasaframeworkforitsenterprise-wideassessment,theorganizationlaunchedatransformationproject.Theorganizationrealizedithadoperationalissuesbecauseitlackedcomparativeglobalmaturityinthetrainingandskilling,workmanagement,andautomationcapabilitiesthatcouldhandleincreaseddecision-makingcomplexity.Foreachdomain,theorganizationdevelopedaspirationaltargetsforthenextfiveyears,aswellasgoalsfora10-yearstrategy.EachcapabilitystatementfromtheCEMMprovideda“howto”setofactionstoachievespecificmaturitytargets.Thisinformationcontinuestoinformcomparisons,helpdevelopimprovementobjectives,andprioritizeinvestmentstoimprovecapabilities.Casestudy8IntheSustainabilitydomain,100%ofthestakeholdersatmatureutilitiesareengagedtodevelopnewproducts,services,andfutureprograms.9UsingtheCEMMdatatogainaperspectiveonperformanceLookingattheCEMMdatatocomparematuritylevelsbetweenelectricutilitiesisausefulexercise,butthisdatacanalsobeusedtoshowthatwhenautilityperformsbetterinkeycapabilities,thisperformanceedgealsodeliversotheroperationaladvantages.Forexample,advancedanalysiscanpredictiftheoperationsofaT&Delectricutlitityaremoresustainableandreliablethanthoseoftheirpeersaccordingtothespecificcapabilitiestheyhaveimplemented.Theseutilitiesaredefinedasthosedeliveringmorethan20%oftheirelectricityfromrenewablesources.Theyalso,onaverage,performinthetop25%forthekeyoperationalmetricsofSystemAverageInterruptionDurationIndex(SAIDI)andSystemAverageInterruptionFrequencyIndex(SAIFI).Thecapabilitiestheyhaveimplementedmatchthoseofthemostmatureutilitiesandhavethefollowingthemes:–Deployingadvanceddigitalcapabilitiestoenhanceoperationalperformanceandimprovecustomerengagementandsupport–Managingriskandrespondingtoregulationswithacollaborative,inclusiveapproach–Focusingonmobilityandinforming,securing,andempoweringthefieldworkforce–Investinginresearchandinnovationthatencouragesadoptingandintegratingdistributedenergyresources(DERs)andoperatingDERprogramsatscale–Providingcustomerswithgreenenergyalternativesandmorepersonalizedservice–Proactivelymanagingandmaintainingphysicalassetswithadvancedanalyticsandrigorousprocesses.10TopthreestrategyandleadershipcapabilitiesmoreprevalentatmatureelectricutilitiesAdaptingtariffstofundandsustaintransformation.Proactivelyengagestakeholdersonlegislationandregulation.Organization-widevisionandstrategyforinnovationandmodernizationexists.n<20resultsshouldbeconsidereddirectional1.7xmore95%2.4xmore2.8xmore86%100%StrategyandleadershipThestrategyandleadershipdomainoftheCEMMassessestheextenttowhichutilitiesestablishastrongvision,communicateclearlywiththemarket,anddrivetowarddefinedgoals.Allofthemostmatureutilitieshaveestablishedanorganization-widevisionandstrategy,comparedtoonly57%oftherestofparticipants.Thissupportstheconclusionthatleaderswhoaligntheentireorganizationtowardtransformationacceleratechangethroughadvancedcapabilities.Matureutilitiesalsounderstandthatengagingwithcommunitiesandmanagingstakeholderexpectationsisanimportantexpressionofleadership.That’swhytheyengagewithstakeholdersonlegislationandregulationatarate2.8timeshigherthantheirless-maturepeers.Finally,95%ofthetop-tierutilitiesusenewtariffstopayfortheirtransformationefforts—arate2.4timeshigherthanothers(seegraphic).Fundingmodernizationshowshowleadingutilitiesrecognizetheimportanceofsecuringnecessarylevelsofcommunitysupporttoachievelong-termgoals.40%57%31%AllotherrespondentsMostmature25%11TopthreeorganizationandculturecapabilitiesmoreprevalentatmatureelectricutilitiesOrganizationandcultureReal-timeanalyticsutilizedtominimizesafetyriskforemployees,customers,andsociety.2.1xmore95%3.1xmore4.1xmore73%95%TheorganizationandculturedomainoftheCEMMassessesemployeeskillsandworkingenvironments.Themostmatureorganizationshaveestablishedcross-functionalworkingapproachestoincreaseengagement.Infact,95%ofadvancedutilitiesuseagile,cross-functionalteamstoaddressbusinessinitiatives—aratethatismorethantwotimeshigherthanless-matureorganizations.Leadingelectricutilitiesarecommittedtoprovidingtheirworkforcewithmoreadvanceddigitaltools—topperformersusereal-timedashboardsatarate4.1timeshigherthanothers.Anotherimportantsuccessfactor:95%ofmatureutilitiesusereal-timeanalyticstoassesssafetyrisksforbothemployeesandcommunities(seegraphic).Theseorganizationsleveragereal-timesensordataandpredictiveanalyticstosupportworkerandpublicsafety.31%18%46%Dashboardscontainpredictivereal-timemetrics.Agileandadaptivecross-functionalteamsareengagedtodrivetransformationandchange.n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%12Stakeholdersareengagedtodevelopnewproducts,services,andfutureprograms.Sustainabilityskillsetshavebeendefinedanddevelopedoracquiredspecialized.Proactivelyengageacrosspartnerecosystemtoachievehighersustainabilitystandardsandgoals.2.0xmore100%2.5xmore3.4xmore82%100%SustainabilityTopthreesustainabilitycapabilitiesmoreprevalentatmatureelectricutilitiesThesustainabilitydomainoftheCEMMincludesinitiativesthatsupporttheexpansionofcleanelectrification.Tothisend,leadingutilitiesare100%committedtoengagingstakeholdersonsustainability-relatedservicesandpractices.Recognizingthepowerofworkingtogether,theseorganizationsteamupwithstakeholders2.5timesmoreandwithpartnerecosystemstwiceasoftentoadvancesustainableoperations.Whencomparedtoothers,leadingutilitiesarealso3.4timesmorelikelytodefine,develop,oracquiretheskillsthatarenecessarytoachievetheirsustainabilitygoals(seegraphic).40%24%50%n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%13TechnologyIT/OTenterprisearchitectureandroadmapsalignwithecosystempartnerroadmaps.Automatedcybersecuritymethodsareactiveacrossallenvironments.Enterprisearchitectureinplacetoguidetechnologyselectionandimplementation.2.3xmore91%2.8xmore2.9xmore86%100%32%30%44%TopthreetechnologycapabilitiesmoreprevalentatmatureelectricutilitiesTheCEMMtechnologydomainfocusesonadigitalfoundationthatsupportsAI,theInternetofThings(IoT),blockchain,andautomationinasecure,flexible,hybridcloudenvironment.Inthetopquartileofmaturity,100%ofutilitieshaveenterprisearchitecturesthatenablevisibility,security,anddataintegrationacrosstheenterprisetoenablevaluableinsights(seegraphic).Additionally,91%ofmatureelectricutilitiesaligntheirIT/OTenterprisearchitectureandroadmapswithecosystempartners,comparedwithonly32%oftheirpeers.Forcybersecurity,themostmatureelectricutilitiesare2.9timesmorelikelytoautomatesecuritysolutionsthatareactiveacrossenvironments.Thesetoolsreduceoperationalrisksandhelplimitoravoidthefinancialandcatastrophicreputationalimpactsofdatabreaches.Theglobalaveragecostofadatabreachin2023was$4.45million,andtheaveragesavingsfororganizationsthatusesecurityAIandautomationextensivelyis$1.76millioncomparedtoorganizationsthatdon’t.4n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%14GridoperationsDERandmicrogridofferings.ADMSandDERMSsystemsincludefunctionalitytomanageDERandmicrogrids.Automatedbidsgeneratedfromareal-timemarketpricingplatformthatanalyzesgenerationandload.2.7xmore95%5.3xmore3.7xmore95%95%Topthreegridoperationscapabilitiesmoreprevalentatmatureelectricutilities18%26%36%ThegridoperationsdomainoftheCEMMisattheheartofwhatelectricutilitiesdo.Bringingmorecleanelectricityontothepowergridiskeytoincreasingsustainableenergyproduction.However,renewableenergysourcesarewidelydistributedanddifficulttointegratewithgridsthathavebeenbuiltaroundcentralpowerstations.MorematureutilitieshaveaheadstartwithadvancedcapabilitiesaroundmicrogridandDER.Theshareofrenewableenergyfromsolar,wind,hydro,andbiomass,alreadyata28.7%sharein2021,continuestoincrease.5Withmicrogrids,renewableDERimprovesgridresilienceandenergyefficiency.Electricutilitiesaremajorplayersinintegratingmicrogrids.SophisticatedcapabilitiesandintegrationofDistributedEnergyResourceManagementSystems(DERMS)andAdvancedDistributionManagementSystems(ADMS)arekeyenablers.Comparedto26%ofotherelectricutilities,95%ofmatureelectricutilitieshaveimplementedADMSandDERMStomanageDERandmicrogrids(seegraphic).Automatedbiddingcapabilitiesformarketpricingplatformsarealsousedbymoreofthemostmatureorganizations.Sophisticatedalgorithmsprovideoptimizeddecision-makinginsightsbasedonreal-timeinformationaboutmarkets,pricing,availablecapacities,andtransmissionconstraints.n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%15Assetconditionmonitoringincorporatedigitalconnectivityandpredictiveanalytics.Mobilitysolutionsareenabledbycognitiveexpertsystems.AI&MLenableoptimizationofdesign,forecasting,scheduling,assets,andinventory.5.7xmore82%3.7xmore3.4xmore82%68%22%24%12%TopthreeworkandassetmanagementcapabilitiesmoreprevalentatmatureelectricutilitiesWorkandassetmanagementTheworkandassetmanagementdomainoftheCEMMfocusesonsomeofthecorecompetenciesofutilities,includingoperatingefficiency,maintainingphysicalassets,andfosteringthesafetyofpeopleandthegrid.Mostparticipantshavedigitalcapabilitiesthatsupportworkandassetmanagement.However,awidegapexistsinmonitoringassetconditionswithdigitalconnectivityandpredictiveanalytics.Only22%oflessmatureutilitieshavethiscapability,asopposedto82%ofthemostmatureorganizations,whichusethesecapabilitiesata3.7timeshigherrate.5.7timesmoreofthematureutilitiesuseAIandmachinelearning(ML)tooptimizeplanning,forecasting,assetscheduling,andinventorymanagement.Analyticshelppredictbreakdowns,identifywearandtear,andenablepreventivemeasurestobetakenbeforeproblemsgetworse.Wherecrewsconductfieldwork,matureorganizationsare3.4timesmorelikelytoprovidemobilitysolutionsequippedwithadvancedcapabilities,suchasAI-poweredapps.Advancedmobilesupportenablestheseworkerstoperformtheirjobsmoreefficientlyandgetreal-timehelpforcomplexissues(seegraphic).n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%16MarketinnovationResearchandinnovationforenergybalancingandphysicaltradingatthedistributionlevel.Researchandinnovationfore-mobilityservicesareconducted.Dynamicenergytransactionsareenabledthroughenergytokenization.3.3xmore3.3xmore3.1xmore86%86%77%Topthreemarketinnovationcapabilitiesmoreprevalentatmatureelectricutilities26%28%23%ThemarketinnovationdomainoftheCEMMassesseshowelectricutilitiesadapttochangingmarketconditions,evolvebusinessmodels,anddevelopnewservicestomeetcustomerneeds.Onaverage,3.3timesmoreofthemostmatureprioritizeresearchinenergybalancingandtrading.Improvedtradingsystemsenablemoreliquidmarketsandlowerenergypricesforcustomers.Toenhancegridmanagementandresilience,86%ofmatureT&Dutilitiesrecognizethatresearchandinnovationine-mobilityservicesarecrucialtoadvanceelectricvehiclesandrelatedinfrastructure,versus28%ofothers(seegraphic).TheseutilitiesareacceleratingtheintegrationofEVsintosmartgridstohelpbalancesupplyanddemand.Finally,3.3timesmoreofleadingutilitiesareexploringdynamicenergytransactionsbyusingenergytokensforpeer-to-peerenergytrading.Byenablingconsumerstoparticipateingridflexibilityservices,electricutilitiescanincreasecustomerengagementandsatisfactionwhileboostingoverallenergyefficiency.n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%17Customerself-servicecapabilitiesformanagementofproductsandserviceresolutionareprovided.Consolidatedcustomerexperienceplatformshavebeenestablished.Analyticsareusedtopersonalizecustomerexperience.2.6xmore4.8xmore4.1xmoreTopthreecustomerexperiencecapabilitiesmoreprevalentatmatureelectricutilitiesCustomerexperience86%86%100%18%21%39%Thecustomerexperience(CX)domainoftheCEMMassesseshowutilitiesdeliverpersonalizedserviceandprovidecustomersatisfaction.Onaverage,nearlyfourtimesmoreofthetop25%electricutilitiesapplydata,analytics,andplatformcapabilitiesinthreeimportantwaystosupportcustomerengagement(seegraphic).Themostmatureelectricutilitiesaredigitizingcustomerserviceatahigherrate—86%provideself-servicecapabilitiescomparedwithonly18%ofothers.AndfourtimesmoreofthematureparticipantshavefullyimplementedCXplatformstostreamlineservices,improveengagement,andleveragedataanalytics.Finally,allofthehighperformersrecognizethatpersonalizedexperiencesincreasecustomersatisfaction.Whileleadersuseanalyticsforpersonalizedservice,morethanhalfoftheothersdonot.Providingpersonalizedenergyreportsandadvicehelpscustomersunderstandenergyconsumptionandfindwaystoreduceenergyusageduringpeakperiodstocutcosts.n<20resultsshouldbeconsidereddirectionalAllotherrespondentsMostmature25%18Matureelectricutilitiesare5.7timesmorelikelythanlessmatureorganizationstouseAIandMLtoenableoptimizationofdesign,forecasting,scheduling,assets,andinventory.19Actionguide:TakethenextstepstocleanelectrificationHerearefourstepsanyelectricutilitycompanycantakenowtoincreaseitsmaturityandmakeprogressonthecleanelectrificationjourney.01Findoutwhereyourorganizationfallsonthecleanelectrificationmaturityspectrum(CEMM).UsetheCEMMtooltodeterminethematurityofyourcapabilities,basedonindustrybenchmarks.Makethisanenterprise-wideinitiativethatincludesprofessionalsacrossdifferentbusinessareas.Onceyouknowyourstartingpoint,youcandevelopastrategicroadmaptoachieveyourobjectives.02Setmaturitytargetsinprioritydomainsandtrackyourprogress.Onceyouhavecompletedtheassessment,useittoestablishmaturitytargetsindomainswiththemostimpact.Providelonger-termprojectswithsufficientresourcesandbudgets.Formanyelectricutilities,afocusonmodernizinggridoperationsandimplementingdigitaltechnologiescanyieldthemostsignificantresults.03Startwithtwoorthreequick-winprojects.Thiswillenableyoutodemonstratesuccessquicklyandencouragestakeholderstomoveontolarger-scale,company-wideprojectswithstrategicimpact.04Drivecleanelectrificationinitiativesatalllevelsofyourorganization.Supervisecleanelectrificationinitiativesacrosstheenterprisetocoordinateandtrackresults.Markersofimprovedcapabilitiescanincludebetterfinancialperformance,enhancedcustomerservice,greateroperationalflexibility,strengthenedcybersecurity,andmoresustainableoperations.20Understandwhereyourelectricutilityisonthepathtocleanelectrificationandmoresustainableoperations.21LisaFisherGlobalBenchmarkResearchLeaderEnergy,Environment,andUtilitiesIBMInstituteforBusinessValuelinkedin.com/in/lisa-giane-fisher/lfisher@za.ibm.comFrancisJ.PuglisePartner,GlobalCenterofExcellenceforEnergy,Environment,andUtilitiesIBMConsultinglinkedin.com/in/francis-puglise-96640a3/fjpuglise@us.ibm.comLisaistheleaderfortheIBMInstituteforBusinessValueintheMiddleEastandAfricaandisresponsibleforglobalbenchmarkresearchintheindustrialandutilitysectors.HerexpertiseincludesenterpriseIT,security,andcloud.LisaisbasedinSouthAfrica.NorikoSuzukiResearchLeaderEnergy,Environment,andUtilitiesIBMInstituteforBusinessValuelinkedin.com/in/norikosuzuki/suzukino@jp.ibm.comNorikoisadedicatedtechnologyleaderintheglobalenergy,utilities,andmanufacturingindustrieswithexpertiseinstrategicdevelopmentandimplementation.Herworkfocusesonsustainablemobility,AI,andconnectedproducts,aswellasadvancedfieldoperationtechnologies.FrancisleadstheIBMCenterofExcellenceDigitalInfrastructureforCleanEnergyPractice.Hebringsover25yearsofconsultingexperiencetoelectricutilitiesintheUS,LatinAmerica,Europe,andAsiaPacificandco-ledthecreationoftheCleanElectrificationMaturityModel.AbouttheauthorsJefferyVarneyDirector,AdvisoryServicesAPQClinkedin.com/in/jcvarney/jvarney@apqc.orgJeffimplementsinitiativesforbusinessprocessmanagement,performanceimprovement,knowledgemanagement,custombenchmarking,qualitymanagement,andperformancemeasurement.HewasAPQCprogramdirectorforenergyandutilityinitiativesandinstrumentalindevelopingtheSmartGridMaturityModel.22IBMInstituteforBusinessValueFortwodecades,theIBMInstituteforBusinessValuehasservedasthethoughtleadershipthinktankforIBM.Whatinspiresusisproducingresearch-backed,technology-informedstrategicinsightsthathelpleadersmakesmarterbusinessdecisions.Fromouruniquepositionattheintersectionofbusiness,technology,andsociety,wesurvey,interview,andengagewiththousandsofexecutives,consumers,andexpertseachyear,synthesizingtheirperspectivesintocredible,inspiring,andactionableinsights.Tostayconnectedandinformed,signuptoreceiveIBV’semailnewsletteratibm.com/ibv.Youcanalsofollow@IBMIBVonTwitterorfindusonLinkedInathttps://ibm.co/ibv-linkedin.TherightpartnerforachangingworldAtIBM,wecollaboratewithourclients,bringingtogetherbusinessinsight,advancedresearch,andtechnologytogivethemadistinctadvantageintoday’srapidlychangingenvironment.StudyapproachandmethodologyTheIBMInstituteofBusinessValueandAPQCsurveyed105electricpowerutilitiesthatparticipateinthegeneration,transmission,distribution,andretailsegmentsfrom26countries.TheutilitiesassessedtheirlevelofmaturityusingtheAPQCCleanElectrificationMaturityModel(CEMM)onlineassessmenttool.RespondentstoldushowtheyperformedonkeyperformanceindicatorsandansweredquestionstoenableassessmentofthematurityoftheircapabilitiesacrosstheeightCEMMdomainswhichincludeStrategyandLeadership,OrganizationandCulture,Technology,Sustainability,GridOperations,WorkandAssetManagement,CustomerExperience,andMarketInnovation.Responsesfor15organizationsthatdonotparticipateinthetransmissionanddistributionsegmentswereexcludedfromtheanalysisofthisreport.AboutBenchmarkInsightsBenchmarkInsightsfeatureinsightsforexecutivesonimportantbusinessandrelatedtechnologytopics.Theyarebasedonanalysisofperformancedataandotherbenchmarkingmeasures.Formoreinformation,contacttheIBMInstituteforBusinessValueatglobal.benchmarking@us.ibm.com.AboutAPQCAPQChelpsorganizationsworksmarter,faster,andwithgreaterconfidence.Itistheworld’sforemostauthorityinbenchmarking,bestpractices,processandperformanceimprovement,andknowledgemanagement.APQC’suniquestructureasamember-basednonprofitmakesitadifferentiatorinthemarketplace.APQCpartnerswithmorethan500memberorganizationsworldwideinallindustries.Withmorethan40yearsofexperience,APQCremainstheworld’sleaderintransformingorganizations.Tolearnmore,visitwww.apqc.org.YoucanfindusonLinkedInathttps://www.linkedin.com/company/apqcorfollowusonTwitter@APQCorFacebook@APQCResearch.231Wilson,Tom.Solarpowerinvestmenttoexceedoilforthefirsttime,saysIEAchief.May25,2023.FinancialTimes.https://www.ft.com/content/990d3ce2-cdc1-4496-ac34-9ba20e0dcaa42Thomson,Ewan.Havewereachedpeakfossilfuel?WorldEconomicForum.April12,2023.https://www.weforum.org/agenda/2023/04/electricity-generation-solar-wind-renewables-ember/3Foralivableclimate:Net-zerocommitmentsmustbebackedbycredibleaction.UnitedNations.https://www.un.org/en/climatechange/net-zero-coalition4CostofaDataBreachReport2023.PonemonInstituteandIBMSecurity.July2023.https://www.ibm.com/reports/data-breach5RenewableElectricity.InternationalEnergyAgency(IEA)report.2022.https://www.iea.org/reports/renewable-electricityNotesandsources26©CopyrightIBMCorporation2023IBMCorporationNewOrchardRoadArmonk,NY10504ProducedintheUnitedStatesofAmericaAugust2023IBM,theIBMlogo,ibm.comandWatsonaretrademarksofInternationalBusinessMachinesCorp.,registeredinmanyjurisdictionsworldwide.OtherproductandservicenamesmightbetrademarksofIBMorothercompanies.AcurrentlistofIBMtrademarksisavailableonthewebat“Copyrightandtrademarkinformation”at:ibm.com/legal/copytrade.shtml.ThisdocumentiscurrentasoftheinitialdateofpublicationandmaybechangedbyIBMatanytime.NotallofferingsareavailableineverycountryinwhichIBMoperates.THEINFORMATIONINTHISDOCUMENTISPROVIDED“ASIS”WITHOUTANYWARRANTY,EXPRESSORIMPLIED,INCLUDINGWITHOUTANYWARRANTIESOFMERCHANTABILITY,FITNESSFORAPARTICULARPURPOSEANDANYWARRANTYORCONDITIONOFNON-INFRINGEMENT.IBMproductsarewarrantedaccordingtothetermsandconditionsoftheagreementsunderwhichtheyareprovided.Thisreportisintendedforgeneralguidanceonly.Itisnotintendedtobeasubstitutefordetailedresearchortheexerciseofprofessionaljudgment.IBMshallnotberesponsibleforanylosswhatsoeversustainedbyanyorganizationorpersonwhoreliesonthispublication.Thedatausedinthisreportmaybederivedfromthird-partysourcesandIBMdoesnotindependentlyverify,validateorauditsuchdata.Theresultsfromtheuseofsuchdataareprovidedonan“asis”basisandIBMmakesnorepresentationsorwarranties,expressorimplied.0WMGDJ6EUSEN-00Thisdocumentisprintedonchlorine-free100%post-consumerpapermeetingForestStewardshipCouncil(FSC)responsibleforestrycertification.Theenergyusedtomanufacturethispaperwasgeneratedthroughrenewablegreenenergy.Pleaserecycle.
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