You are on page 1of 78
Sam / a ire THE SWITCH TO CLOUD Be BR aL SOV ‘SUSTAINABLY p. ES SERENE j An Astute Bilionnaire AVAL area St How are Al and ML making a big difference in start-ups, HR, energy and utilities 0 S Catacer DQ: NARA) Sree cee os Se Ran aR CN ots Tee ees aN) ase) PN Pe Aes WELCOME. The new X1 Carbon's four layers of carbon-fiber tested against military-grade Cee cee ee on Peace eae esta rr noe a ect) Ce eee ee SS CARBON IT'S NOT ALAPTop, _ TiitiPatl <1° ee LN aay) T-Bar lonea are) Rake cha Rr aes ee Core ee ae tae ero © 1800 102 5296 | corpsales@lenovo.com | www.lenovo.com Go ace TechGig is the platform where we present your real-time problems, to the most competent tech talents who will help you find innovative & impeccable solutions. TechGig can be your one-stop solution for hiring, marketing, and brand engagement and help your business achieve its goals. 3.2 Million Coders Code Gladiators Diversity of Geek Goddess Domains Virtual Campus League 100 + Hackathons Brand Strength 4500+ Codathons Product Marketing 2000+ Webinars Eliane W siicelater) os ‘SWITCH TO CLOUD TO SAVE COST C@N|ENTS & ! VERA SWAMY ARAVA (GEDE Drectn Sa Intech BUILD SMARTLY: How Can Start-Ups? BUILD SUSTAINABLY irate ais & Gl Ai, Dass Stes PLATFORM FOR BOM Mel reid WOMEN'S SAFETY TRE cn a Al-Empoweréd | IT FOR FASHION i Workforce 1 Cover STORY IT FOR INTERIOR a DESIGNERS BTN Emotions in Al INNOVATIONS IN DATA 16 I cover story TOM BIANCULL (10, Zea Teoma é EMPOWERING 92 Erg THROUGH Automation in (av Energy and Utilities RYAN GOH. VP EGW, APC, Ze Tectrologes 4 | duly, 2019 ‘www.dgindia.com ‘A CyberMedia Publication | DATAQUEST. DIGITAL ENTERPRISE ese 36 Bridging the Chasm 50 An Astute Tech Billionaire with a Big Heart SMART INDIA 47 Driving Smart Mobility 71 Automation for Digitising Travel and Expense Management ES 06 Edit 07 =DQTeam DATAQUEST | A CyberMedia Publication com ly, 2019 | 5 EDIT 6 | July, 2019 Managing Energy with IT Greetings, friends! Artificial inteligence has been around for a long time, but has come into prominence only recently, It is the ability of a machine to exhibit human-like intelligence. Al ‘comprises several different technologies. Machine learning is among those. So, please do not confuse between Al and ML. Ever wondered how artificial intelligence can be used in energy and utilities? For starters, the use of Al can improve the efficiency of the various renewable energy technologies available. How can Al boost efficiencies across the sector? It can definitely automate the various operations in solar/wind energy. Also, that would allow the various utilities to launch new businesses. There are a few ways that Al can manage energy and utlities. First comes load forecasting. With the use of Al, the real-time supply and demand for energy can be monitored. Further, it can help in predictive maintenance. In fact, drones can be efficiently used to identify defects and predict failures. Drones also capture relevant data, thereby, doing away with hazardous man-hours and minimizing downtime. ML is a process of taking large algorithms and processing those. It processes large amount of data, passes it, detects patterns and makes decisions or predictions, based on those patterns. Utilities in India can also look at ML. For instance, it can be used to solve complex problems. You can also have high-quality data to train the algorithms. You can probably do forecasting, demand management, eneray trading etc., as well. Give ita try! Pradecp Chakraborty Pradeep Chakraborty Editor pradeepe@eybermedia.co.in ‘www.dgindia.com ‘A Oyberlecia Publication | DATAQUEST DATAQUEST EDITORIAL (CONSULTING GROUP EDITOR: Ibrahim Ahmad MANAGING EDITOR: Thomas George EDITOR: Pradeep Chakraborty ASSOCIATE EDITOR: Soma Tah ASSISTANT EDITOR: Archana Verma, Supriya Rao [ASSISTANT EDITOR (SPECIAL PROJECTS} Ankit Parashar ‘CONSULTING EDITOR: Anusha Ashwin ‘CORRESPONDENT Anchal Ghatak [MANAGER DESIGN & COVER DESIGN: Vijay Chand VICE PRESIDENT RESEARCH: Anil Chopra ‘SENIOR VICE PRESIENT Fachna Garga (achnag@cybermecia.co.in) SALES NORTH ASSOCIATE VICE PRESIDENT: Harminder Singh ‘SENIOR MANAGER: Suahir Arora MANAGER: Shoot Khan west GENERAL MANAGER: Rajoob Banorioo sourH [GENERAL MANAGER: Rajoeb Banerioe EAST SENIOR MANAGER: Sudhir Arora Cyber Media L MANAGER: Ashok K Pandey Marketing & Alliances ‘SR VICE PRESIDENT: Rachna Garga (rachrag@cybermectaco.in) |ASST. MANAGER MKTG: Rajv Pathak Events, Online & Communities SENIOR N/ANAGER: Debabrata T Josh ASST. MANAGER: Shiv Kumar Operations GENERAL MANAGER: CP Kalra [MANAGER MIS & DATABASE: Ravi Kant Kumar MANAGER: Ashok Kumar Circulation & Subscription HEAD: Racha Garga (G Ramachandran, ‘SR, MANAGER: Sarita Shridhar ‘SR PRESS COORDINATOR: Harak Singh Ramo OFFICES ‘GURUGRAM (Corporate Office) yor House 18:25 Sector-22, Gurugram, Haryana ~122 001 Tot 0124 - 4822222, Fax: 0124 - 2580604 BENGALURU 206-207, Sree Complex (Opposite RBANMS Ground) 4875, St Joha’s Road, Bangalore ~ 560 042 “Tot +81 (80) 4341 2000, Fax: +91 (80) 2350 7871, KOLKATA 23/64, Cariahat Road, Ground Floor Near South City College, Kolkata ~ 700 029, ‘Tot 083 ~66250117/18, 65361101, 40012006 MumBat 404 Trade Square, Mohra Industries ‘Compound Safed Pool, Sskinaka, ‘Andheri East, Mumbai - 400072 ‘Mobile: 9960424024 PUNE lo MM Activ Sci-Tech Communications ‘Ashirwad, 1st Floor, 96/A/2, Pallod Farms, "Near Bank of Baroda, Baner Foad, Pune 411045 INTERNATIONAL, (Cyber Media (Singapore) Pte Ltd {14-0 High Strest Cant, 1 North Bridge Road, ‘Singapore ~ 178 084 Mobile: 481 8010757100 Fax: 00 - 63369145, Emaltralve@eybermediaco.in CALIFORNIA, Huson International Moca President, 1999, South Bascom Avenue, Sut 1000, ‘Campbell, CAB5008, USA “ok +1-408-879 6566, Fax: +1-408-879 6660 Dataquest (no ffiated with Dataquest Inc. a cvision of Gartner Group, USA), is printed and published by Pradeep Gupta, on behalf of Cyber Meda (nda) Lt, printed at M/s Karan Printers, F 28/2, Phase I, Okla Industri! Azea, New Delhi, published at D-74, Panchsheel Enclave ‘Now Delhi 110017, Inia Elitorrahim Ahmad. Distributors in India by IBH Books & Magazines Dist Pt. Ltd, Mumba ‘Subscription inland}: €1200 (12 issues), £2400 (24 issues) ‘Subscription (Foreign): US S145 (SAARC Countries), US $75 (Rast ofthe worl) Ey Airmail. For subscription queries contact: rsedaincla@cyoermeci.co.in) ‘Dataquest does not claim any roeponsibity to return unsolicited articles or photographs unless accompanied by adequate retumpostagk ‘All rights reserved. No part of ths publication may be reproduced by any means without prior wren permission from the publisher. DATAQUEST | A CyberMedia Publication wwwdgindia.com ly, 2019 | 7 COVER STORY | AUTOMATION Sachin Dev Duggal | maildgindia@cybermedia.co.in How Can Al Help Start-Ups? Advantages of using Al in enterprises | is an increasingly common technology that imitates human intelligence to benefit users in ‘a wide variety of ways. One area in which Al is becoming of utmost importance is startups We're living in a technological age where Al and robotics are no longer just the stuff of theory and science fiction; they've become a reality. And they're making visible, real- time changes to organisations all over the world. Startups, in their nascent stage, have only limited resources with 8 | July, 2019 ‘www.dgindia.com which to make their business work. It's in these early, frugal stages that Al can come to their rescue, Here are five ways in which Al can help any startup make the most of its resources: Helps Saving Cost Organisations worldwide are spending more and more on the hiring of employees as well as on the care of their staff. According to various reports, US based organisations ‘A OyberNlecia Publication | DATAQUEST COVER STORY | AUTOMATION MANY TASKS CAN NOW BE HANDLED MORE CHEAPLY AND EFFICIENTLY BY THE RAPIDLY ADVANCING TECHNOLOGY OF Al — Sachin Dev Duggal, Founder & CEO, Engineer.ai have spent over $70 billion on their employees in the form of hiring, learning and development. Such expenditures could only be borne by those who already have an established financial base, which is not likely in the case of startups. With Al, however this cost can be greatly reduced. Many tasks can now be handled more cheaply and efficiently by the rapidly advancing technology of ‘AL, That's less money wasted on unnecessary human resources and more money for taking your startup to the next level of success. Saves Time ‘As mentioned above, there are many time-intensive tasks in any organisation that may not require human input. Many of these tasks can easily be done by a machine ora robot, freeing up human resources to utilise their time on ‘more appropriate tasks. This not only saves money, italso saves time. And time is a valuable resource when you're trying to build the next big thing Can Reduce Errors Though there are many tasks in which Al cannot match the human touch, there are certainly many areas in which human errors are inevitable - and costly. In areas like finance and accounting, technology has been proven to be more accurate and efficient than humans. Human errors in financial record keeping due to office distractions, ilness or a host of other uncontrollable factors can be fatal to any organisation. If a startup wants to accurately and efficiently represent its financial wellbeing, Al is a ‘must-use technology. DATAQUEST | A CyberMedia Publication Enables Scalable Emotional Analysis For any business idea to succeed, it's important to gauge how well your customers are responding to it. This can be done in the form of “sentiment analysis,” and Al can be designed with algorithms specifically for that Purpose. With Al, businesses can use surveys to more easily and accurately understand the general viewpoint ‘of customers on specific topics, products or services. ‘Thanks to Al, startups can predict the human behaviour towards their product or service and plan their next moves accordingly. Can Improve Customer Service Finally, no business can grow if they don't keep their customers happy. Customer service is the most important aspect of any organisation, and Al is revolutionising the customer service segment extensively. With the advent of chatbots, organizations can be sure that no customer .goes unattended or unanswered and that their queries are resolved in the least possible time. Al allows customers to share their problems and get a real-time resolution. Any startup that wishes to reach the pinnacle of success must be aware of current trends and technology and use that knowledge to their best advantage. Today, technology is an increasingly indispensable factor in the success of any organisation. The full potential of Alis yet to be explored, but one thing is certain; those who most effectively leverage its capabilities are sure to have a leg up on the competition. (The author is Founder & CEO, Engineerai) wwwdgindia.com ly, 2019 | 8 COVER STORY | AUTOMATION ‘Mohua Sengupta maildgindia@cybermedia.co.in Al-Empowered Workforce Corporate India is going through a defining time, with emerging technologies taking over many areas of business | happens to be the newest kid in the block, which is taking the recruitment processes by storm, as it is getting re-engineered every day, \with more and more intelligent and repetitive work being replaced by Al, Let's look at some of the key areas where Al is being used to empower workforce: 1) Removing bias - Unconscious bias is a huge challenge that all corporates are trying to fight. Corporate Indias no exception. When it's a conscious, bias, i's easier to tackle but unconscious bias creeps. in the most unexpected way. It can not only influence the choice of a candidate at the time of interview, but 101 July, 2019 ‘www.dgindia.com also the job description itself, making it a far more pervasive problem. Al can easily be used to remove this unconscious bias. Evaluate profiles and first level interviews - Today sourcers and recruiters are spending a considerable amountof imein scanning, evaluating and shortlisting profiles and doing the first level interviews and the outcome of it is often very subjective, based on the emotional state of the recruiters. Al can easily take over these repetitive jobs, bring more objectivity to it and complete it much faster. There are quite a few Al-based platforms in the market today. According to ‘A CyberMedia Publication) DATAQUEST. COVER STORY | AUTOMATION HUMAN RESOURCE IS ONE SUCH CRITICAL AREA, WHICH IS CORE TO ANY BUSINESS AND HAS BEEN GOING THROUGH ROUNDS OF REVOLUTION AND. TRANSFORMATION, BOTH IN TERMS OF PROCESSES, AND TECHNOLOGY — Mohua Sengupta EVP & Global Head, IT Services, 3i Infotech ‘a report by Forrester, by 2020, candidates applying to jobs at 20% of large global enterprises will interact with chatbots before recruiters. 3) Improved employee onboarding experience = Employee onboarding is the employee's first experience with an organization and it's the organization's best opportunity to create an excellent first impression. Today, due to a resource crunch and subjectivity associated with people, onboarding experience tends to be random and unstandardized. Using Al effectively can help new employees navigate their way into an organization more seamlessly, giving them an excellent onboarding experience. 4) Identifying the customised training requirement for employees ~ Mostly, people become redundant within an organisation because they lack relevant skills, but if we can train the employees in a timely fashion, then organizations can utilize its existing staff, without having to retrench and hire new ‘employees. Al can be used very effectively to match existing talent with the required ones and identify the gaps in skillset and also to do a fitment of who is best trained on which of the required skils. 5) Resource Management function - People intensive businesses have a huge challenge of finding the right skilled people internally at the right time and often end up hiring people at a higher cost, when an equally skilled person is available within the company. Al can help with this function and in ‘avery time effective manner, thus reducing the cost of hiring, training and keeping a skilled resource on DATAQUEST | A CyberMedia Publication the bench. 6) Identifying people who are looking out - Losing trained and experienced employees to competition isa huge loss to any organization. Al can easily track the employees keystroke patterns, idle time& internet checking patterns and predict whether the person is, looking out for newer opportunities. 7) Smarter and better people analytics - Al-enabled employee analytics provide thenecessary insight to ensure better employee experience. It ensures meaningful employee engagement, creating happier ‘employees and increased employee retention. ‘And these are only a few of the core functions that Al can do immediately. However, there still exists a degree of apprehension amongst the human resource fraternity to totally embrace Al, for reasons unfounded. Al today is Not just efficient, itis also inexpensive. Just one word of caution, itis imperative thatthe recruitment processes are reviewed and reengineered to remove age old practices and made well suited for reaping maximum benefit out of Al. Research from PWC shows that 63 percent of companies are rethinking the whole role of their human resources department in light of the impact Al will have on the business. Thanks to Al and RPA, human resource experts will be now able to focus on the core areas, which cannot be done by any technology. Al can help build a high-performance human resource team and as a result a high-performance workforce. (The author is EVP & Global Head, IT Services, 3i Infotech) ly, 2019 1 44 COVER STORY | AUTOMATION Pee ete EMOTIONS IN Al 4121 July, 2019 ‘www.dgindia.com ‘A CyberMedia Publication) DATAQUEST. COVER STORY | AUTOMATION Al is learning and recognising human emotions and using that knowledge to improve everything — from marketing campaigns to healthcare. Here, Ranjan Kumar, founder and CEO, Entropik Tech, explains how machines are laborate on Emotion Al. For what purpose can this be used? Al is a complex web for logical decision making, {an intelligence based on ‘if-else’ rules crafted to decipher an outcome based on vast possibilities of logical permutations of choices. However, Emotion Al also understands the emotional context of logic. It's an Al system, which is not just artificially intelligent, but also ‘emotionally perceptive. Avenues for applications of Emotion Al are plentiful, including recruitment, medical diagnosis and assistance, loan evaluation, customer service, automobile passenger safety, optimization of ROI for marketers and many more, Entropik Tech is dedicated to building Emotion Al. What technologies are you using to illustrate the ‘emotion and expressiveness? Do you also map facial expressions? For the Emotion Al platform, Affect Lab uses proprietary technologies like, brainwave mapping, facial coding and eye tracking to decipher cognitive and emotional response of consumers as they watch an ad, experience a product cor undergo a purchase in a retail store. * For brain wave mapping, we use a special hardware which works like wearing a headphone. The hardware ‘monitors electrical activity of the brain, while the user is experiencing a productiwatching content. The raw data collected by the EEG (electroencephalogram) headset is then interpreted by algorithms to calculate behavioral and cognitive metrics like attention level of the user, mental effort applied towards completing a task etc. * The facial coding system developed by the team at Entropik can track facial expressions of users by identifying facial landmarks. This data is generated from the way you grin; the way you roll your eyes to way you ‘smirk is fed into our deep learning algorithm and to get emotion metres. * Visual activity is monitored using a standard webcam and soreen-based Eye Tracking software. Image DATAQUEST | A CyberMedia Publication replicating the way humans think processing algorithms calculate the users’ ‘point-of- gaze’ to create heat maps and gaze plots in real-time. What is Affect Lab? Elaborate. The online SaaS platform Affect Lab’ is a one-stop Emotion A platform that integrates EEG, facial coding and eye tracking with integrated workflows to support end-to- end consumer research. It is designed to help consumer brands decode consumers’ subconscious emotional response to watching media content, ad commercials, experiencing a product, UX/Ul (user experience/user interface) platforms, driving an automobile etc., in order to gain insights on what crives their purchase decisions. ‘Combining our emotion recognition tech, and Al models, we capture cognitive and behavioral parameters such as attention, appreciation, attentiveness, along with cognitive parameters, like happiness, boredom, familiarity etc. How can the feature eye tracking and facial coding help your clients? ‘As many as 46% of the ads launches are unsuccessful and that's a huge loss for any company. 82% of the time, the single biggest reason is from brands who are failing to understand the connection and preference of their target audience. Affect Lab helps brands measure consumers’ preference at a subconscious level, allowing them to optimise each and every aspect of the product/ ad experience using emotion recognition techniques like facial coding and eye tracking, ‘= Media Research For e.g., before an ad launch, brands can have the ad/ ad variants tested by a group of users that represent their target audience. Using our facial coding and eye tracking software, we capture facial expressions and eye movernents of the user while they are watching the content. A second-by-second analysis is provided to the brand, including heat maps, gaze trails and data about which ad segment invokes the high attention, engagement, wwwdgindia.com uly, 2019 | 43 COVER STORY | AUTOMATION MARKETEERS CAN USE THIS DATA TO OPTIMIZE THEIR MEDIA PLANS BY TAILORING IT TO AUDIENCE SEGMENTS THAT WERE MOST RECEPTIVE TO THE CONTENT. EYE TRACKING DATA CAN HELP UNDERSTAND IF THE BRAND PROMINENCE WAS AS EXPECTED AND THE PRODUCT SHOWCASE WAS EFFECTIVE OR NOT boredom, etc. Or, what is the overall emotion score and predicted conversion based on industry norms. Marketeers can use this data to optimize their media plans by tailoring it to audience segments that were most receptive to the content. Eye tracking data can help understand if the brand prominence was as expected and the product showcase was effective or not. We have seen brands leveraging up to 4xRol on their marketing spends using our testing platform. * UX research ‘The above analogy holds true for UX testing across mobile apps, websites, and chat bots. Emotion and eye tracking helps the UX designers understand the user's navigation flow, along with his enjoyment, frustration, mental effort levels on a page-by-page level By knowing how the website/app visitors are feeling on interacting with these digital assets enables brands to optimize their UX across navigation, content, presentation land interaction; resulting in disproportionate Rol. For e4g., a consumer app, an improvement of 10% drop-off improvement on checkout leads to 2x efficiency in their cost per acquisition (CPA). Is this based on sentiment analysis? If not, how is this different from sentiment analysis? ‘Sentiment Analysis classically is + mining massive amount of chatter generated online by consumers who are expressing their feelings and attitudes about brands, products or services they had sed, through various social media sites, review portals, website etc, Further, using NLP (Natural Language Processing) to reading and interpreting emotions expressed plus the overall mood for the topic. 141 July, 2019 ‘www.dgindia.com Our platform uses: ‘* Emotion recognition technologies and Al modules to read physiological and neural responses of chosen test user in order to measure emotional, behavioral and cognitive data points. = The emotion analytics data is collected for user responses, while the user is experiencing a product or watching content, While both fall under affective computing, they are very different means to understand the market/consumer. Who are your clients and how are they using this technology for their business? Our list of clientele includes - GroupM, HSBC, CITI, CHUBB, Born Group, ITC, Myntra, IPSOS, IMRB, L-Brands, Xiaomi, L Brands, TATA, UB Group, Viacom’, ‘TAM Media Research, among others, based out of Indi USA, Australia, Indonesia and Singapore. Entropik is a part of several accelerator programs, including Accenture Ventures, Viacom18 VStEP, Intel Al Builders, Oracle Cohort, SAP and Plug and Play. We help brands by optimising various consumer touch points: * Brands make their audio/video/digital/print advertising emotionally efficient. ** Brands test their products before and after launch. ‘= Brands improve conversions and user experience on their digital assets via our UNUX testing module, used for website/app audits and competitive benchmarking. * C-SAT tracking suite helps brand track customer satisfaction using facial coding in their retail stores. ‘* Human chat bot index helps brands audit their chat bots. Voice- and text-based sentiment analysis is used by brands to improve the efficiency of their call centres. ‘A OyberNlecia Publication | DATAQUEST DATAQUEST a Bridging The Skill Divide: MS tues Me CUR: Soa) SCHOOL pales Conference & Awards - AOE: Delhi Orel MM cere 2nd Edition of the conference will focus on the current state of ICT education in India; and how engineering colleges are upping the ante to stay relevant to the market demands. & 2 ( 150+) ( 40+ 6 20+ \Day Conference. | Education Soeaker \veawards \ ‘decsion Awards} \\ Sessions p ; Makers, ; ‘ f°) Upping the Ante fe) Education Challenges W Government Dignitaries E © Corporate bigwigs: HR leaders of the (2) Collaborating for Infra Re eons erie ss Pe hele Pte ete en) )) Tech Solutions for Competitive Edge ©) The Tech Advantage | Collaborating for Curriculum ie Mee a sl Ae LM Te) 1 ee Dee acres TAU oe ears Ml The Start-up Mindset acai A ee aC) fo Dataquest T-School Awards 2019 Prec ee cutie Partnership & Marketing For Registration Rajiv Pathak Bey ee * . tajivp@cybermedia.co.in ravik@cybermedia.co.in +91 8010757100 +91 9810481484 COVER STORY AUTOMATION) Philippe Vié, Dr. Adam Bujak, Naney Manchanda, Abhishek Jain, Alain Bollack, sJerome Buvat‘and Shahul Nath | maidgindia@cybermedia.co.in Automation in Energy and Utilities Al and ML are going to make the energy sectors more efficient and will address the current need for de-stressing the climate. An in-depth survey from the industry shows that the industry leaders are ready for it he globalenergy andutiities sectoris undergoing * The sector is moving from its conservative, regulated unprecedented change: past to a new future where innovation is key. Its + Thethree "Ds" of decarborisation, deregulation consumer base, which used to be largely passive, has and decentralisation are having a significant — now moved to a world of ‘prosumers’ who expect a Impact. Currently only 10% of UK's electricity comes sophisticated, service-based industry. from coal-fired generators, and in 2019 the National * Digitisation will be critical to capitalising on these Grid has logged more than 1,000 hours of coal-free shifts. Technologies, such as automation and artificial electricity. intelligence, are playing a pivotal role in managing 161 July, 2019 ‘www.dgindia.com ‘A CyberMedia Publication) DATAQUEST. COVER STORY | AUTOMATION THE ENERGY AND UTILITIES SECTOR COULD REALISE COST SAVINGS FROM $237 BILLION TO $813 BILLION IF IT WERE TO IMPLEMENT INTELLIGENT AUTOMATION IN ITS TARGET PROCESSES AT SCALE the balance between demand and supply, boosting efficiencies in all the entirety of the value chain, innovating the customer experience and transforming business models. ‘The global research study, Reshaping the future: Unlocking automation’s untapped value, explored the intelligent automation landscape (by ‘intelligent automation’, it is implied a combination of rule-based technologies such as RPA and added intelligence through advanced analytics and artificial intelligence). Examining specific use cases and the benefits they can deliver, it drew on the views of more than 700 executives involved in implementing intelligent automation solutions. Building on ‘what we learned from that cross sector program, this latest 2019 research takes a specific look at energy and utilities (cil and gas, electricity utiities, water utilities, eneray services and electricity and gas utilities). We surveyed close to 530 business leaders in sector organisations who are experimenting with or implementing inteligent automation solutions, We also analysed more than 80 use cases, assessing their maturity, complexity and the benefits on offer. ur research finds that the sector has under-estimated inteligent automation’s true potential. Though there has been progress in Al-driven transformation in core technical operations since 2017, many organisations have yet to scale-up their initiatives. However, an elite group of ‘companies that are making significant progress in driving use cases at scale have been identified. ‘The characteristics and approaches of this high- Performing group offer an insight into best practices for scaling-up intelligent automation. ‘This study focuses on four key areas: DATAQUEST | A CyberMedia Publication * It begins by probing what value intelligent automation offers the industry, including whether organisations have under-estimated the value on offer and where the upside is + Itassesses the progress organisations have made and the challenges that are preventing many from reaching scale * Itprofiles the use cases that offer the maximum potential land which should provide the focus for investments ‘Finally, drawing on the best practices of a high- performing, elite leader group, it outlines key recommendations for driving intelligent automation at scale. Inteligent automation offers significant value to the sector, and its worth has actually been under-estimated by executives. ‘Sectoral Potential of Al + US-based electric and gas utility, Xcel Energy, uses data from sensors on wind turbines to develop high- resolution wind forecasts through predictive analytics and artificial intelligence. As a result, the company has been able to reduce costs to end customers by $60 milion by increasing efficiency of generation. ‘© Gazprom, the Russian gas giant, used robotic process automation (RPA) to automate verification of metre readings. In the first two weeks after the automation went live, an employee was able to validate about 190 invalid meter reads, saving 10 hours of work per employee. * United Utilities, the UK's largest listed water utlty, recently tested an Al platform to analyse large data sets on factors such as weather, demand for water, pump Performance and electricity prices. The information wwwdgindia.com ly, 2019 | 47 COVER STORY | AUTOMATION Who are the automation frontrunners? We define automation frontrunners as executives from the organizations that have deployed multiple intelligent ‘automation initiatives at scale and have also delivered greater cost, revenue and customer satisfaction benefits than the average. This group oF 1 executives comprises of 10% of our sample. Percentage distribution of automation frontrunners and the rest 90% 10% nee Automation Frontrunners ‘Source: Capgemini Research institute intelligent Automation in Eneray and Utlites Survey, February 2019, N=529 ‘executives From energy and utilities organizations that are experimenting with or implementing intelligent automation initiatives, ‘Among the countries, the United States, india, and France have contributed more automation Frontrunners, ‘compared to their peers. In our sample, the Unites States contributes 59% of automation frontrunners despite representing only 38% of our survey population. Similarly, n terms of sub-sector, electricity along with oll and gas have made more progress in creating automation front-runners when compared to other industries. ‘Automation frontrunners distribution by geography Germany MM = Netherlands UK 3 France ILM india = Source: Capgemini Research institute Intelligent Automation in Energy and Utilities Survey, N=S1 executives From energy ‘and utilities automation frontrunners organizations that are experimenting with or implementing intelligent automation Initiatives. 181July, 2019 wor.dgindia.com ‘A yberMecia Publication | DATAQUEST COVER STORY | AUTOMATION Executive summary - key takeaways ‘The sector has under-estimated intelligent automation’s true potential ‘+ Nearly half of the respondents have under-estimated the benefits they derived From their intelligent automation initiatives. + We estimate that the sector can save between $237 billion to $813 billion from intelligent automation at scale, Scaling-up initiatives is still a critical issue, though significant progress has been made in the Al solutions * Like their peers from other sectors, the energy and utilities industry is Facing considerable headwinds when trying to scale their automation initiatives. Currently only 15% have been able to deploy multiple use cases at scale. + The sector has made considerable headway in adopting AI solutions. In 2017, only 28% had a Few or multiple Al use cases, but today this number stands at 52%, These use cases are primarily aimed at the core competencies. Organizations are missing out on critical use cases that can deliver outsized benefits + Incore functions, only 18% of organizations are deploying quick-win use cases (by which we mean they are low on delivery complexity but high in terms of benefits achieved). Use cases such as forecasting, energy trading, yield optimization, grid behavior interfaces and complaints management fall under quick wins. + Support Functions tend to utilize more robotic process automation (RPA) use cases, with quick wins ‘emerging in order management, contract management, employee data management, and defect detection, etc. Only 11% of the organizations are Focusing on the quick wins in support Functions. ‘The road to scaling intelligent automation Learning From the best practices Followed by high-performing ‘Automation Frontrunners’, we have developed five recommendations for scaling intelligent automation: ‘+ Take.a pragmatic approach when evaluating and choosing use cases: Finding and developing viable intelligent automation use cases gives energy and utilities leadership a clear understanding of how they fit inwith business strategy, competencies and capabilities. ‘+ Optimize the right processes before trying For scale: It is essential that organizations have a strong rasp of the process re-engineering and workforce impact before proceeding to try and scale. Force-fitting solutions to existing structures will lead to undesirable consequences and/or suboptimal gains. + Put emphasis on breakthrough technology and ensure sufficient resources in place: By focusing on technologies such as advanced analytics and deep learning in core Functions, you can deliver outsized benefits. + Centralize execution, governance and leadership: Using a dedicated team, along with staff rotated from application areas, can allow you to create and sustain “lighthouse projects” + Upskill the existing workForce ensuring change management: A comprehensive upskilling program will not only give you the viable talent pool you need For execution, it will also help with one of the most: challenging areas For any digital transformation - culture. The change management practices will help individuals, teams and overall organizations to scale up and benefit From the intelligent automation, is used to make decisions on the most cost-effective expected. This confirms a tendency highlighted by Roy and efficient way to run pumps, detect burst pipes and Amara, co-founder of Palo Alto's Institute for the Future, minimize the risk of discoloured water. During the trial, who says, “We tend to overestimate the effect of a the utility saw energy savings of 22%, technology in the short run and under-estimate the effect * Offset Solar, a US-based solar company, generated in the long run.” $1.2 million revenue within six months using a simple Nearly half of our respondents say that they have homepage messenger chatbot. underestimated the truepotentialofintelligentautomation. Infact, when companies implement these technologies, 47% say that the cost savings were underestimated and they often find they deliver greater benefits than were many said the same of customer satisfaction (48%) and DATAQUEST | A CyberMedia Publication wwwdgindia.com ly, 2019 | 49 COVER STORY | AUTOMATION Conservative benefits estimate Et. Average cost FA. Potential cost D1.Target processes to savings Fromintelligent savings from intelligent be automated (in %)*** automation (in %)*** automation (in $ billion) (C*D1*E1) Oilland gas 16% 15% 149.8 Electricity utilities 14% 20% aus Water networks 15% 20% 33 Electricity and gas 14% 30% 34.3 utilities Energy services 14% 15% 8.0 G1. Total projected cost savings from intelligent automation (in $ billion) 2372 D2.Target processesto 8. Operating expenses _ £2. Average cost be automated (in%)*** asa%ofrevenue** —_ savings from intelligent (in %) automation (in %)*#* iland gas 22% 42% 576.9 Electricity utilities 20% 43% 128.5 Water networks 21% 48% 109 Electricity and gas 19% 44% 68.2 utilities Energy services 20% 38% 28.8 Source: Capgemini Research Insitute Intelligent Automation in Energy and Utilities Survey, February 2019, executives from energy and utilities organizations that are experimenting with or implementing intelligent automation initiatives; Capgemini Research Institute analysis; Bloomberg; MarketLine. *Source: Bloomberg and MarketLine analysis. ** Source: Bloomberg analysis. Note: Operating expense: correlation between operat clude the cost of goods sold; we have assumed a negative 19 expenses and target processes to be automated. Source: Survey data 20 July, 2019 ‘www.dgindia.com ‘A CyberMecia Publication | DATAQUEST revenue gains (45%). Artificial intelligence is on the rise, though critical challenges remain in achieving scale. Only a minority are able to scale up their intelligent automation initiatives We define “scaled adoption” as deployments that go beyond pilot and test projects and are adopted to a significant degree across business units, functions, or geographies. However, scaled adoption in the sector is rare, This is true at both a global cross-sector level (where in 2018 we found that 16% have reached scale) as well as for energy and utilities specifically (15%). Nikolai Lyngo, senior vice president corporate strategy {and innovation at Equinor, believes that moving to greater scaled adoption will require a mindset change. “I think ‘one of the challenges that we have as an industry is our ability to reach full-scale implementation,” he says. “I think itis partly because this is something new and requires a different kind of thinking as well as execution. We need to have the basics right - the data. | think sometimes we are COVER STORY | AUTOMATION trying to do too many things at the same time and that is a problem.” Reaching enterprise-wide adoption after a pilot requires foresight, strong governance, long-term strategic planning ‘and a determination to keep the change management angle front and centre. While most organizations Understand the importance of automation and Al, they are not always clear on the exact role of these technologies and how they fit into the overall organisation strategy. Abhijeet Bhandare, chief automation officer, GE Power says, “The first thing is finding the purpose - why automation? People end up doing automation just because it is cool. We need to realise that these are business dollars that are being put at stake.” Alhas Matured Energy transition trends - such as generation decentralisation, auto consumption, local load-demand balance with energy management systems, and smart Current Level of intelligent automation deployment among organizations experimenting with or implementing intelligent automation, 2019 AllSectors 14% 15% 17% Energy and Utilities lin athe 14% 18% 14% IN Testing use cases © Deployed pilots for some use cases & Deployed multiple use cases at scale** Source: Capgemini Research Institute Intelligent Automation Use Case Survey, July 2088, 39% 16% 38% 15% ® Developed proofs of concept for some automation use cases BM Deployed a few use cases at scale* 5 executives From global organizations that are experimenting with or implementing inteligent automation initiatives: Capgemini Research institute inceligent Automation in Energy ‘and Utities Survey, February 2019, N=529 executives from energy and tities organizations that are experimenting with or implementing inteligent automation initiatives. ‘Ae use cases at scale ae defined as Intelligent automation initiatives deployed at a single/a few geographies or selected business processes. rngultiple use cases at scale are defined a intelligent automation ntiatives deployed across multiple processes and across the breadth of the countries the company operates in. DATAQUEST | A CyberMedia Publication wwwdgindia.com uly, 2019 | 24 COVER STORY | AUTOMATION LONG RUN oh WE TEND TO OVERESTIMATE THE EFFECT OF A TECHNOLOGY IN THE SHORT RUN AND UNDER-ESTIMATE THE EFFECT IN THE — Roy Amara, Co-Founder, Palo Alto’s Institute for the Future devices creating significant volumes of structured and unstructured data - support a variety of transformative ‘Al.use cases. Al's helping the sector in a variety of ways, from boosting efficiencies to contributing to the fight against climate change. The rise of renewable power mix is also enabling Al-based use cases, such as forecasting, demand and supply management and energy trading. In 2017, we surveyed more than 120 senior executives from energy and utilities organizations that are already im- plementing Al. Today, we have made a like-to-like compari- ‘son with our current research, involving the 373 executives that are experimenting with or implementing Al. ‘We found significant progress: ‘+ Two years ago, the majority - 55% - were just deploying pilots, ‘Today, the majority ~ 52% ~ have actually deployed a number of use cases In 2019, 52% of energy and utlities organisations have deployed a few or multiple Al use cases. ‘The sector has made significant strides in deploying Al technologies in core technical operations across the value chain, from generation to trading. We analysed more than 20 use cases in the core value-chain functions and found that Al technologies dominate. Artificial intelligence technology in core Functions technical use-cases Sew] Peres Prue takeats Arend else teats OTE aeticl PTC Cer PNR Cees OOM PONTE Lr NCCE 33 OTE ran ura Py fe LEE t Source: Capgemini Research Institute in gent Automat in Energy and Uuities Survey, BCLs use cases Pena tct E ET Erte Ou ey eee bruary 2019, N=361 executives From energy ‘and vtlities organizations that are experimenting with or implementing intelligent automation inklatves 22 July, 2019 ‘www.dgindia.com ‘A OyberNlecia Publication | DATAQUEST COVER STORY | AUTOMATION Rule-based (RPA/ITPA) technologies deployed in support Functions* I Information Technology Research and Development Procurement Source: Capgemini Research institute intelligent Automation in Ener I Finance Customer Human and Service Resources ‘Accounting ities Survey, February 2019, N=529 executives From energy and utilities organizations that ae experimenting with or implementing intelligent automation initiatives "As % of organizations experimenting with or implementing intelligent automation in the respective Functions Exploration/Production/Generation * NextEra Energy, a US-based Fortune 200 eneray company, is applying machine learning to optimize operating parameters for its wind turbine fleet. The aim is to maximise output and perform predictive maintenance “We operate at $3 to $4 [per MWh] better, including availabilty and operating costs, on the wind side than anyone else in the country.” says Jim Robo, CEO, NextEra Energy. + French Oiland gas major, Total, has signed an agreement with Google Cloud to jointly develop Al solutions that will be applied to subsurface data analysis for oil and {gas exploration and production. Transmission/Distribution * US-based startup AppOrchidis deploying deep leaming and natural language processing to understand grid behaviour under variable wind conditions. * Canadian mutt-utiity provider, Utilities Kingston, is piloting Al and geospatial analytics to optimize its leak DATAQUEST | A CyberMedia Publication detection activities. The solution is expected to reduce the time and cost of detecting leaks by more than 60%. * Pacific Gas & Electric has employed machine learning to increase the accuracy of load reduction forecasts for, demand response. ‘Supply/Energy Services/Retal ‘The UK's EDF Energy, serving approximately five milion business and residential consumers with electricity or gas, uses Amazon's Alexa as a service channel, helping ‘consumers in areas such as account balance inquiries, learning next payment dates and submitting meter readings. Aidan O'Sullivan, head of University College London's energy and Al research says, “The proliferation of virtual assistants in homes, combined with data, could fundamentally disrupt the way we buy and use electricity. ‘The integration of energy data with products like Alexa and Google Home may lead to Al home energy management systems where, for example, rather than turn on your wwwdgindia.com uly, 2019 | 23 COVER STORY | AUTOMATION Talent related challenges Business related challenges Key Challenges Limited efforts to reskill for employees Difficult to retain skilled/reskilled employees Employee resistance to learning new skill sets Lack of technological awareness in senior management level Lack of technological awareness in mid-management level Internal resistance to change due to fear of job loss Lack of coordination across different business units Lack of leadership commitment Organizational ethos not allowing to experiment technology to replace humans © Energy and Utilities [eens 47%, —_—ee 1, | 42% ED 39%, —a 41%, EEE 40% — 39% = 19% ——a 39% 40% === 17% SS 42% es 27% —S 9% ED 35% 31% a 34% 31% MAllSectors Source: Capgemini Research Insitute Intelligent Automation Use Case Survey, July 2018, N=705 executives from global organizations that are experimenting with or implementing intelligent automation intltives; Capgemini Research institute ‘Automation in Energy and Utilities Survey, February 2019, N=529 executives From energy and utities organizations that are experimenting with or implementing intelligent automation initiatives. 241 July, 2019 ‘www.dgindia.com ‘A OyberNlecia Publication | DATAQUEST COVER STORY | AUTOMATION Distribution of core-function technical use cases by complexity of implementation and benefit realized (from survey data) Predictive maintenance —« customer transfers Detection of leaksfallures—— Correcting 7 Biling and settlement ‘Demand management ‘Solutions For optimized ‘eneray cansumption preventing energy theft--* 1 Personalization of oad forecasting offers using consumer insights Metering Transactve energy solutions—« Grid Forecasting Dehavior =, Eneraytrading Interface Yield optimization Energy storage ‘= complaints management ‘+ Pipeline inspection Decision support. Chatbots for sales system for engineers °— “hatbots fr sae : | Forasset maintenance =" systems, ‘customer data process Transport Pricing oPerabons Advertisement spend management ‘Automated marketing compaigns 1 Lead generation Online self service-quote generation ™ Percentage indicates implementation of use cases by energy and utilities organizations in each quadrant. M Trading _m Supply/eneray services/sales and marketing WTransmission/distribution ml Explor ion/production/generation Source: Capgemini Research institute intelligent Automation in Energy and Utilities Survey, February 2019, N=361 executives from energy and utlties organization that are experimenting with or implementing intelligent automation initiatives. Intelligent Automation in Energy and Utes: The next digital wave washing machine yourself, you schedule it to run when the electricity price is going to be lower.” The use of Al land predictive machine-learning algorithms is enabling the consumer to have foresight over their energy profile. Trading * UK-based start-up, Open Utlity, has spearheaded peer-topeer activity using its algorithm-based platform, Piclo Flex. This is the UK's first online marketplace for renewables. Working in partnership with licensed. suppliers, Open Utility provides commercial eneray DATAQUEST | A CyberMedia Publication users and generators with a simple, intuitive, and transparent way to buy and sell power. Rule-based technologies dominate in support functions In line with global averages, rule-based technologies — IT process automation and robotic process automation (ITPAVRPA) are also prominent in the energy and utilities sector. ‘Three out of every four organizations are adopting ITPA/ RPA technologies, with most implementations in support functions rather than core technical operations. UK- based United Utilities has been a pioneer in using RPA wwwdgindia.com sly, 2019 | 25 COVER STORY | AUTOMATION Distribution of support function use cases by complexity of implementation and benefit realized (From survey data) EE Financil planning andanalysis Cchatbots for customer service | contract management loyee data management Performance management « Employee data managemes re-populate data on agent screens ‘Submitting datato regulators —* ned asset Updating inventory records storage automation accounting ‘csar ! ° Defect detection Coste dia manga 99 Hm complince and reporting ‘cybersecurity monitoring Absence management Tein eS rey scokationdagesis —? 2, oa dt ‘Atendonce management rnornt PS alnanon 4 Responding to itomer supper requests symone ‘Customer credit check ‘+ ‘¢—Reconeitiation accounts receivable ‘Albased event correlation ——* + Query resolution + —Onboarding | andeath management Realtime conversation ans + Server stompin ’ Monitoring protocols compliance . : {tages nonpenn alten eat checking ata ul a titan ee | ae ae rence Lc ceccactae eerie end ering trektv msnhane Svcten nd ing comeaneao seca Payroll management—e | 3) Design optimization ore ree toting dao seta aber nmandap ling : Percentage indicates implementation of use cases by energy and utilities organizations in each quadrant. |= Human resources ll Finance and accounting Ml Procurement BH Information technology li Research and development Ml Customer service ‘Source: Capgemini Research institute Intelligent Automation in Energy and Utilities Survey, February 2019, N=529 executives from energy ‘and utlites organizations that are experimenting with or implementing intelligent automation iniatves. in its back-office processes. Since 2017, the utility has company’s head of robots about the importance of RPA. automated more than 20 processes, with another 12 in “We know the robots aren't going to go on holiday or be development. off sick.” “The benefits are not just time savings, but making Even though rule-based automation is most prominent, the process robust,” says Genevieve Wallace Dean, the ‘scaled adoption is stil rare, Of those organisations that 261 July, 2019 wor.dgindia.com ‘A yberMecia Publication | DATAQUEST COVER STORY | AUTOMATION Industry Global Use Cases - Core Functions Us-based Vermont Electric Power Company (VELCO) uses advanced data science ‘and machine learning techniques to develop a hyperlocal weather forecasting ‘system. Applying the weather model to all the solar and wind Farms in Vermont has reduced average eneray Forecasting errors by 6% for solar and 9% for wind. Kerrick Johnson, VP of strategy and communications at VELCO says, “For every 1% load reduction we can shave off the peak by better orchestrating resources, we save $1m in ratepayer dollars. We know also there are operational gains For us as @ transmission utility, For example, in the short-term load Forecast." GE Renewable Eneray is using machine learning to build virtual windFarms in 2 ‘louc-based platform that mimic a real world, physical design. This model runs NEG =u gy real wind pattern and calculates electrical output to optimize production on an individual turbine level. It expects to generate 20% boost in energy production Jn $100 million in savings over the lifetime oF a 100MW farm.” leading Swiss eneray company, has implemented "Gridsense Technology’, ‘uses algorithms to measure parameters such as grid load, electri ram consumption and generation, weather forecasts, and electricity prices. This allows co it to better understand consumer behavior. Using this information, GridSense ‘optimizes the utilization of power For consumers and generators and reduces peak loads in the power grid, balances the loads and stabilizes the distribution grid." Greensmith Energy, a global energy storage company, uses machine learning to ‘manage energy storage systems and broader eneray ecosystems. For example, it provides its software to the Spanish island, Graciosa. The new “Graciosa Hybrid Renewable Power Plant,” with its integrated 6 MW/3.2 MWh energy storage ‘management system, can supply 1 MW of solar and 4.5 MW of wind power to the local electricity grid, reducing the island's reliance on imported fossil Fuels and significantly cutting down on greenhouse gas emissions.” British Petroleum is using automation in its trading Function, Ayman Assaf, CIO For ‘compliance, regulatory, risk and finance at BP Supply & Trading says, “Automation is allowing Us to consolidate data on the trading Floor, using robotic process CECI automation to mimic repeated processes. This shifts the role of our analysts, increasingly freeing up their time to Focus on higher value tasks. So rather than collecting data sets, they can spend time interpreting and interrogating the ‘meaning of that data." Us-based electricity and gas utility, Exelon developed a channet-agnostic, Al-powered chatbot to resolve customer complaints on issues such as outages and bills. Exelon was able to reduce customer churn and developed deeper insights into their consumer needs.” Tl Exploration/production /generation fill Supply/eneray services/sales and marketing Hi Transmission/distribution Ti trading services DATAQUEST | A CyberMedia Publication wwwdgindia.com ly, 2019 | 27 Na AER ae ee a ae EL CUE CLE Le er Le CeCe eee ae ee Unlimited satisfaction one low price Cheap constant access to piping hot media Protect your downloadings from Big brother Safer, than torrent-trackers 18 years of seamless operation and our users' satisfaction All languages ETT m aN aol cia oleic Oeste Com ama La We have everything for all of your needs. Just open https://avxlive.icu COVER STORY | AUTOMATION Industry Global Use Cases - Core Functions ‘Order entry Pricing calculations EDF Energy, the UK-based utility, is using RPA to automate manual journal entries fo that previously took 70 man-hours a month pean to complete. Automating eight processes delivered six times return on investment.” Order entry Contract management Exxon Mobil uses a contract planning bot that provides regular notifications about contracts {due For renewal. This means procurement teams have plenty of time to look for GE TELIAMEE Responding to customer/ supplier | alternative suppliers, orto renegotiate requests existing contracts. It also means that contracts cannot expire without anyone noticing.” Updating inventory records Contract management HR shared services Employee data management ‘Synergy, Western Australia’s leading energy ‘generator and retailer, has recently expanded ESTER Absence management its RPA capabilities to HR shared services. HR compliance and reporting Defect detection UK-based water company, Severn Trent, created an advanced detection model that uses data from its network to help identify, locate and manage leaks. The time it takes to find leaks has been reduced by over half and it hhas reduced leaks by over 16% in areas where it has been piloted.” Research and Ceres In core Functions, fewer than one in five (18%) are Focusing on the quick wins. have deployed rule-based technologies (397 organisations Organisations are missing a big opportunity by ignoring cof the 529 we surveyed), only 1796 have deployed them at _ high-impact use cases. scale. Organisations should ensure that they stablize and Our analysis of more than 80 use cases shows that ‘optimise their processes prior to applying automation. only a minority are focusing on use cases that are not 281 July, 2019 wor.dgindia.com ‘A yberMecia Publication | DATAQUEST COVER STORY | AUTOMATION ‘Top criteria considered while selecting a process For automation - Frontrunners vs. all other organizations* 32% Time taken to complete the process 9% Number of systems involved in a process 1 ree eee a Number of exceptions required in a process ame Cost of transaction ue? 20% Reliability of execution of transaction ee Number of employees required in a process aes Presence of unstructured data in a process EX oe Automation frontrunners MI Rest Source: Capgemini Research institute inteligent Automation in Energy and Utilities Survey, February 2019, N=529 executives from energy and utilities organizations that are experimenting with or implementing intelligent automation iniatives, N=51 executives From energy {and utlities automation Frontrunners organizations that are experimenting with or implementing intelligent automation Initiatives, N=478, ‘executives from the rest energy and utilities organizations that are experimenting with or implementing inteligent automation intiatives. "Top one preference ranked ‘only easy to implement but have a high-benefit upside (which we call the “quick wins"). Neglecting these automation and Al quick wins ~ which span core and support functions - is a missed opportunity. Within core functions, organisations are focusing on low-complexity and low-benefit use cases. Our research shows that over a third of the energy and utilities organizations (38%) are focusing a lot of effort on use cases that are easy to implement but which have a low-benefit upside. On the contrary, fewer than one in five (18%) are focusing on the quick wins. Organisations are tackling the most complex support function use cases. In support functions as well, only 11% of the ‘organisations are focusing on the quick wins and just over ‘one in four (26%) are focusing on use cases that are not ‘only complex to deliver, but also have a less-compelling upside. Forty-six percent are focusing on high-complexity and high-benefit use cases. DATAQUEST | A CyberMedia Publication The road to intelligent automation at scale ‘The traditional utilities business model is under pressure worldwide, as technology changes and_ increased ‘competition make their presence felt. However, despite the monumental changes happening, the sector has only just started to advance beyond its existing conservative mindset. We see this tendency in driving intelligent automation at scale. (Our research shows that only a few organisations have been able to break the conservative stranglehold and create truly breakthrough initiatives. We call this group the “Automation Frontrunners”. Use cases are the foundation of intelligent automation strategy. Finding and developing viable automation and ‘Al use cases gives leaders a clear understanding of how these technologies fit with the organization's business strategy, competencies and current and future technology capabilities, wwwdgindia.com uly, 2019 | 29 COVER STORY | AUTOMATION THE FIRST THING IS FINDING THE PURPOSE - WHY AUTOMATION? PEOPLE END UP DOING AUTOMATION JUST BECAUSE IT IS COOL. WE NEED TO REALISE THAT THESE ARE BUSINESS DOLLARS THAT ARE BEING PUT AT STAKE — Abhijeet Bhandare, Chief Automation Officer, GE Power When utilities kick off automation and Al initiatives, they need to consider the following areas: 1. Ensure they have the basic minimum technical talent in place to collaborate with functional teams. Without this expertise, use-case selection and implementation ‘effort will suffer. 2. Cover the underlying fundamentals before proceeding, suchasdata accessibility, legal and ethicalimplications, risk assessment and success criteria/KPIs. 3. The potential scope of impact should also be a key criterion while choosing, initiating, and scaling up use cases. 4, The time and resources invested in Al initiatives require a delicate balancing act. Al applications require time for gestation and optimisation. For ‘example, an application may not be fully optimised Until it has enough data. Therefore, you need to strike abalance between ensuring AI initiatives have enough incubation time while also ensuring that they do not take up too much of your talent and resources, which will often be thin on the ground. Five Recommendations By studying what these automation frontrunners do differently; we have developed five recommendations for ‘companies looking to join their ranks. Utilities tend to have a ‘conservative’ approach in evaluating benefits from automation and Al. As we saw at the beginning of this report, around half of the respondents to our survey said that they undervalued the impact of implementing these technologies, despite the fact that the sector has driven significant benefits compared to other industries. This could reflect the fact that the sector lacks the internal expertise to select appropriate use cases and ‘measure benefits. 90 | July, 2019 ‘www.dgindia.com 1. Develop a pragmatic approach to evaluate and choose intelligent automation use cases Utilities tend to have a ‘conservative’ approach in evaluating benefits from automation and Al. As we saw at the beginning of this report, around half of the respondents to our survey said that they undervalued the impact of implementing these technologies, despite the fact that the sector has driven significant benefits compared to other industries. This could reflect the fact that the sector lacks the internal expertise to select appropriate use cases and measure benefits. Abhijeet Bhandare, chief automation officer at GE Power, highlights the importance of developing a strong approach towards use case selection. “We have a very clear fitering criteria defined for automation use cases," he explains. “We have close to 200 automation ideas in pipeline, and on an average about 50% to 60% of them will be rejected. It is important to focus your attention ‘on the remaining 50%, as they will give you the most value. And you must have the right criteria - whether itis value, efficiencies, cost savings or the opportunity cost. Organisations should focus on quality over quantity of use cases.” While automation and Al isa valuable way to transform an existing approach, maximum potential often occurs in new applications. Take, for example, renewable power microgrids. With the advent of battery storage, coupled with predictive analytics, it is possible to build virtual micro grids that can run totally on distributed renewable ‘energy. A high-potential use case like this would not be Unearthed and considered if organisations only focus on reformulating existing functionalities and processes. “Digital is fundamental to being able to produce the ‘energy, because you want the energy to be increasingly clean and renewable," says Morag Watson, Chief ‘A OyberNlecia Publication | DATAQUEST COVER STORY | AUTOMATION ‘Automation frontrunners have placed aggressive goals back by large budget for the initiatives 31% z 2% 19% = = a 13% = 14% % oF IT budget dedicated for intelligent automation currently Expected automation of current processes in the next 2/3 years Average expected intelligent automation budget increment over the next 2/3 years Automation frontrunners Ml Rest ‘Source: Capgemini Research Institute Intelligent Automation in Energy and Ulties Survey, February 2019, N=529 executives from energy {and utilities organizations that are experimenting with or implementing intelligent automation initiatives, N=51 executives from energy ‘and utilities automation frontrunners organizations that are experimenting with or implementing intelligent automation initiatives, N=478 ‘executives From the rest energy and utilities organizations that are experimenting with or implementing intelligent automation initiatives. Digital Innovation Officer, British Petroleum. “Digital is fundamental to renewable. You cannot do renewable energy without digital. You can't do it. I's fundamental to solar, It's fundamental to wind. It’s fundamental to distributed energy.” Using the complexity vs. benefit assessment can help to organise and prioritise intelligent automation use cases to ensure they are aligned with the organisation's digital goals. 2. Invest more effort in integrating and optimising the right processes for intelligent automation deployments Intelligent automation can remove considerable overhead in both support and core business functions. However, they require considerable integration and re-engineering of process flows. Force-fitting these solutions to existing structures carries risks: financial, safety, or reputational, In our experience, organisations usually over-emphasize the difficulty of technology execution and underestimate the importance of process re-engineering and workforce impact. Our survey also shows that considerations around security and legacy system integration are still stumbling DATAQUEST | A CyberMedia Publication blocks for the utlities sector. Critical challenges highlighted by our research include: © Complex IT security requirements ‘© The significant investment required * Integrating automation technology with existing systems and tools. ‘Automation challenges. We found that over half of them (61%) are planning to set up dedicated teams over the next two to three years to Investigate the impact and adoption of automation, ‘compared to just 11% of their peers. frontrunners are aware of these 3. Put greater emphasis on technology, backed by larger budgets ‘Automation frontrunners make greater budget ‘commitments than their peers - they spend 19% of their current IT budget on intelligent automation, compared to 13% in other organisations. Moreover, they intend to increase this by 31% over the next two to three years and ‘aim to automate around 17% of their current business processes. In both these areas, they exceed their peers. ‘Automation frontrunners are clearly more focused ‘on unlocking untapped potential rather than replacing wwwdgindia.com uly, 2019 | 31 COVER STORY | AUTOMATION ‘Automation frontrunners have aggressive technology adoption 80% 74% 47% 47% 47% 35% 33% | | 19% Rule-based ‘Automation using ‘Automation using Automation using automation natural language computer vision and machine learning, (ITPA/RPA) processing biometric intelligence deep learning and © Automation frontrunners swarm intelligence Rest Source: Capgemini Research institute intelligent Automation In Energy and Utils Survey, February 2019, N=529 executives From energy and utilities organizations th ‘are experimenting with or implementing inteligent automation initiatives, 1 executives From eneray and utlities automation Frontrunners organizations that are experimenting with or implementing intelligent automation initiatives, N=478 ‘executives From the ret energy and utlities organizations that are experimenting with or implementing nteligent automation initiatives existing business processes. “I often talk about artificial intelligence as augmented intelligence as opposed to artificial intelligence,” adds Morag Watson, chief digital innovation officer in BP. “It really is about bringing something else to the table, such that our experts and people can focus even more on the stuff they were trained to do and on the higher order stuff. Everybody seems to think there's a limited amount of high order stuff to be done, but I don’t think we know. | think that there could be a whole new class of jobs, and a whole new range Of things to be done in the future, that we didn't know coxisted.” ‘The increased budget commitment of automation frontrunners reflects their determination to tackle more complex technologies such as machine and deep learning. While these technologies are high-cost in terms of talent and resources ~ and can have a higher risk profile = they tend to deliver greater rewards compared to rules- ‘based automation. As we saw earlier, we also found that 321 July, 2019 ‘www.dgindia.com most, if not all, high-benefit use cases for core functions are based on Al applications. The International Energy Agency (IEA) predicts fossil fuel share in global supply will fall to 40% by 2030, with renewable contributing 65% by 2040, (On the one hand, this means that utilities will need to adopt highly volatile energy sources such as solar and ‘wind to achieve better economics. At the same time, they need to supply the growing number of high power applications such as electric vehicles and electric home heating. This could lead to highly volatile demand and supply, potentially overloading or oversupplying a local grid. In this environment, capabilities such as local grid management, weather forecasting, data-driven demand- response strategies, efficient energy storage utlization and dynamic pricing will be essential to ensure a reliable ‘operation while ensuring competitiveness. Climate ‘change regulation is also @ growing issue. For example, San Diego Gas and Electric prevents wild fires by utilising sensor data - along with satellite weather monitoring - to ‘A OyberNlecia Publication | DATAQUEST ensure distribution assets are maintained. These sorts of sensors and analytics will also play a critical role in ensure the organisation can meet California's goal of generating 100% of its electric power by 2045 through clean energy. 4,Putin place dedicated andcentralisedleaderst as well as governance — for intelligent automation With many organisations struggling to find critical digital skills, a centralized and dedicated taskforce can be critical to achieving automation goals. Over time, this centralised approach will also ensure the organisation builds the experience and expertise it needs. As Figure 20 shows, front-runners are more likely to have ‘a centralised approach than decentralised governance or hybrid approach ~ 51% take a centralised approach, but this drops to 36% for the rest of the sample. In addition: * Thirty-nine percent have a dedicated leader for automation * Fifty-five percent have their management board or CEO sponsoring all initiatives. COVER STORY | AUTOMATION This top-down approach provides focus and has helped frontrunners deliver multiple projects, at scale, while achieving significant upside. ‘S-nvolve your workforce, invest in their capabilities and rive a dedicated change management programme. Resistance can be a significant barrier to automation initiatives, but 80% of frontrunners have employees who are open to it. In addition: + Seventy-eight percent say automation has raised ‘employee satisfaction levels, compared to 65% of the rest of the sample. * Seventy-six percent say it has created new job profiles, counteracting the fact that 71% also say that it has led to workforce reductions. The sector's organisations need to design and implement a comprehensive upskiling strategy to realise their goals. It will be critical to achieving scale, encouraging ‘employee adoption and bridging the talent gap. Hugh Mitchell, chief HR and corporate officer at Royal Dutch ‘Automation frontrunners have a more centralized governance @ a 12% ‘Automation Frontrunners 31% 51% No clear processes, ‘and governance © Hybrid structure Source: Capgemini Research institute intelligent Automation in Energy and Utlties Survey, February 2019, and utlites organizations that are experimenting with or implementing M Decentralized governance = 14% Rest 36% 36% ‘Centralized strategy ‘and governance or CoE 1-529 executives from energy 1 executives from energy Inteligent automation initiatives, N and utilities automation frontrunners organization that are experimenting with or implementing intelligent automation initiatives, N=478 ‘executives From the rest energy and utlities organizations that are experimenting with or implementing intelligent automation initiatives DATAQUEST | A CyberMedia Publication wwwdgindia.com uly, 2019 | 93 COVER STORY | AUTOMATION Cee arty fail iligence among eneray and tite xpnizations ‘Stperxantag tho tn gence, S08 08 Global Automation Research Series: Eneray and Utilities SS mmgtetnnter —— sgptmentanor rina es ere areas underestimated a eee eee isp eeiorenei bode, wenn bpeee anette Piru e 1 within core Functions. over a third (38%) oF oroenzation Oo oO “4 s suppor unctons nearly half (46%) o! cone ore uickwinsin support anctons Pe ‘The energy and utes sector coud experience $237 tO {$813 billion of cost savings it wereto motement Fueligen automaton ints target processes at scale = a ed fa 34 July, 2019 ‘www.dgindia.com ‘A CyberMecia Publication | DATAQUEST Shell, says, “Once we've recruited good people, we ensure they get the training and experiance they need to do their challenging jobs effectively and deliver on strategic priorities. We do a careful segmentation of our work force, looking at which types of jobs and skills are likely to give us a competitive edge. That requires an in- depth look at the needs and priorities of the people in these skill pools.” Recent research we conducted on workforce upskiling ‘shows that organisations that are in the midpoint of their upskiling program have: + More successful inteligent automation initiatives * Higher employee morale + Support of a significant majority of employees (80%) for automation and Al initiatives. For energy and utiles, upskiling isa significant issue. ‘As we saw earlier, for example, “lack of talent skilled in automation technologies” was a challenge for 57% of organisations. To design and implement a successful upskiling program, six factors are critical: 1.Assess your tech investments and to what extent they will impact on the workforce 2,Define the skils you need and when you need them 3.Make the upskiling program a win-win for your people and organisation by making them relevant tothe needs of the company 4.Align learning with organizational strategy 5.Equip leaders to communicate effectively 6.Ensure you have a change management strategy in place Conclusion The global energy industry is undergoing monumental change. The traditional, centralised provision of power from sources such as coal, gas and nuclear is facing an economic, political and social backlash ~ a result of climate change, health and safety and security concerns. At the same time, growing demand from developing countries, as well as new usages like electric vehicles, need to be satisfied, All of these trends mean that distributed and weather-dependent renewable energy is an increasingly critical and growing part of the energy portfolio. Embracing RPA, advanced analytics and artificial intelligence is absolutely instrumental in meeting climate change goals and the growing demand for clean, cheap, reliable energy. Driving scaled adoption in support and technical functions will play a key role in driving greater efficiency and customer satisfaction while also helping rethink DATAQUEST | A CyberMedia Publication COVER STORY | AUTOMATION operating and business models. However, our research shows that many organizations struggle to make a success of intelligent automation, failing to achieve scale land drive value. Organisations are also missing out on critical use cases in core and support functions that can deliver outsized benefits. The benefits of intelligent automation are consistently undervalued and misjudged, ‘which reveals a significant gap in capabilities, talent and ambitions, To address this gap, there are a number of priorities. First, organisations are capturing most automation value from the most mature and accessible use-cases in the downstream business, such as chatbots. But, as ‘our survey shows, more value resides in the upstream business (generation, trading) and midstream activities (networks). Organisations therefore need to focus efforts towards this domain, as well as new businesses, such as renewables and beyond the meter. Itis easier to {grow the value from a digital enabler in these new deep techs than refurbishing an existing asset (coal or gas plant for example). Second, organizations need to take ‘a pragmatic approach to choosing which automation and Al use cases to focus on, while also making sure they maximize ROI by re-engineering processes prior to implementation. Finally, they must drive change management to create and instil a culture and mindset that welcomes intelligent automation as a necessary ‘component to complement the human workforce, creating the smart, augmented utility of the future The traditional business models of stable long-term agreements backed by large tickets capex projects is slowly being replaced with small players and smaller projects - shale oil, rooftop solar panels, micro-grids are a few examples of this trend. if the energy and utilities sector is to grow alongside this era’s challenges, it requires an ambitious adoption of automation and Al. ‘We believe organisations who develop such capabilities and culture will be able to innovate more aggressively through new business models and grow vibrantly at the ‘expense of the organisations who fail to change. About the authors: Philippe Vié is VP, Capgemini Group Energy, Uiiities & Chemicals Sector Lead: Alain Bollack is VP Capgemini Invent UK; Dr. Adam Bujak is VP. Inteligent Automation, Capgemini Business Services ; Jerome Buvat is Global Head, Research & Head, Capgemini Research Institute; Nancy Manchanda is Manager, Capgemini Invent India; Shahul Nath is Consultant, Capgemini Research Institute; Abhishek Jain is Consultant, Capgemini Research Institute Source: Capgemini Research Institute; Global Autora- tion Research Series: Energy and Utites. wwwdgindia.com ly, 2019 | 98 DIGITAL ENTERPRISE | TALENT Dr. Archana Verma x-archanav@eybermedia.co.in Bridging the Chasm Higher education is taking a new turn as we are advancing into this age of ever-evolving new-age technologies. Organisation leaders are feeling the need to train their own skilled professionals according to their requirements. Hence, industry-academia tie ups are becoming more and more important ihe Chasm There is a difference between knowledge and skilled professional training. Academic institutions encourage students to question what is being practised in their disciplines in the world and to develop new ways of thinking, which may not always be in tune with what is being practised. It certainly may not always be oriented towards making money. 96 | July, 2019 ‘www.dgindia.com Industry is primarily about making money and the development of new-age technologies is mostiy linked to it. Automation helps to save cost and it helps to save human labour. It also quickens to fasten the pace of work being done. Hence, today’s industry is going towards developing and adopting new-age technologies on a massive scale. The industry leaders are making attempt to ‘A CyberMedia Publication) DATAQUEST. convince the government that technical education in the higher institutions should produce graduates who are able to operate in the fast changing technological environment of the industry. The academic institutions however, have different goals. They don't necessarily see themselves as instruments to serve the industry. Rather, they have dreams to change the industrial mode of thinking. The above two modes of negotiating through the professional world has given rise to conflicts between the academia and the industry, with each criticising the other of shortcomings. Whats described as shortcoming by one side may not be regarded as so by the other side. Between these divides are some institutions that encourage new ways of thinking in their students, are renowned for their technological education and at the same time, also encourage an interaction with the industry, so that their faculty and researchers gain an insight into the other side of the world as well ‘The Meeting Ground ‘The tie ups between technology institutions and industry usually involve the industry funding research that specifically serves its own needs. The researchers who get funded t enter into these programmes have a job ensured DIGITAL ENTERPRISE | TALENT ‘when they complete the research and training programme funded by the industry. The faculty that leads the research also gets benefited from these tie ups and the institution {gets financial assistance from the industry Because of these advantages, institutions have an industry-funded research wing, where at least some scholars get tangible benefits from the industry and the industry gets the trained professionals that i's seeking. ‘These researches are oriented towards the specific needs of the industry that is funding the research and are more in the nature of skilled-training programmes. The pure research designs of the same institution may be different from these industry-funded research programmes and ‘may even question the premises on which these industry- funded research programmes are catried out. When we look at some of these instances, we find that these tie ups work both ways. In some cases, the industry leaders acknowiedge that theres a gap in the skil oftheir associates nd they feel the need to get trained by an advanced institution. In other cases, the industry leaders feel they're filing the gap in the education of higher learning, where these gaps are otherwise not being filed up. Hence, there are multiple perspectives in these tie ups Which should not be lost sight of DESKERA-IIT KANPUR TIE UP Deskera, a cloud company has tied up with the prestigious IIT Kanpur to introduce a research programme for SMEs of South East Asia and India. As part of this partnership, over 100,000 SMEs associated with Deskera will be able to benefit from modern and futuristic facilities offered by IIT Kanpur for high-level study on mission critical industries such as manufacturing, aviation, logistics and supply chain. ~ | ASAKNOWLEDGE PARTNER WE WILL BE ABLE TO FILL IN ; THE GAP IN DESKERA’S SME ENGAGEMENT IN PROVIDING STATE-OF-THE-ART TECHNOLOGY AND INNOVATION SUPPORT IN EMPOWERING SMES INHERENT STRENGTH, THEREBY IMPROVING THE QUALITY OF LIFE AND. ECONOMIC PROSPERITY IN THE REGION — Professor Abhay Karat ar, Director, IIT Kanpur DATAQUEST | A CyberMedia Publication wwwdgindia.com ly, 2019 | 97 DIGITAL ENTERPRISE | TALENT | OUR PARTNERSHIP WITH IIT KANPUR WILL. { | HELP BRIDGE THAT GAP BY PROVIDING THE BEST FACILITIES AND MINDS ALONG WITH VITAL DATA POINTS FOR CRITICAL DECISION-MAKING — Shashank Dixit, CEO, Deskera ‘According to a World Bank study, there are 365-445 million formal and informal MSMEs in emerging markets of which the former contributes up to 60% of total employment and 40% of national income (GDP) in emerging economies. Through this association, Deskera endeavours to bring the best-in-class research facilities and Infrastructure for members of the SME associations. RADIANT-MANIPUR TECH UNIV TIE-UP Radiant Info Solutions has taken up a major project of supplying, integrating IT equipment and providing solutions for commissioning IT Labs at Manipur Technical University (MTU) at Imphal THE COMPANY IS PROVIDING IT RESOURCES INCLUDING ALL NECESSARY HARDWARE LIKE UPS, THINK CLIENTS,

You might also like