Digital in Power &

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Utilities Credentials
​Go To Market slide collection

2023 1
 For additional commercial material on Digital
This in Power & Utilities please check:
deck servers
as our AI@Scale in Energy
reference TDA in Energy
material
for digital in Digital transformation for Power & Utilities
Power &

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Utility If you have any questions/requests,
proposals please contact María Llaneza (SKA)
Kelly Parmeter (SKA- US Node) and
Alvaro Gonzalez Knowledge Expert for Digital
in Energy
2
 Primary PoC

For further Alvaro Gonzalez María Llaneza

information, Knowledge Expert
Digital in Energy
Senior Knowledge Analyst
Digital in P&U node

please reach out Madrid

Primary PoC- US
Madrid

to our digital in
Power & Utilities

Copyright © 2023 by Boston Consulting Group. All rights reserved.

KT team
Kelly Parmeter Victoria Stadtmueller
Senior Knowledge Analyst Senior Knowledge Analyst,
Digital in Energy US node Client Focus
Houston Digital in Energy US node
Washington, D.C.

3
 Utilities?
Why Digital & Analytics for

Copyright © 2023 by Boston Consulting Group. All rights reserved.

The Energy sector has progressed in its digital journey, but still lags most
industries in digital maturity

Digital Passive Digital Literate Digital Performer Digital Leader

Technology

Consumer
Digital maturity

Telecommunication
​Industrial Goods
Financial Institutions

​Energy

Public sector

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Digital
• Often unclear vision • Clear vision/strategy • Key digital capabilities • Digital visionaries
maturity
• Isolated initiatives • Roadmap defined • Digitalized processes • Pure digital business
• Organization not yet • Governance in place • Strong digital mindset • Most revenue from dig.
enabling digitization enabling digitization and agile culture business models

Source: BCG Digital Acceleration Index (DAI) 2022 data 5

…and is less prepared to cope the AI disruption

Industry AI@Scale maturity (AI2) A B C

Mid-tier AI champion AI-specific Digital dimensions
AI laggard AI use cases
dimensions relevant for AI scaling
36 51 100

​Technology 47 37 39 64

​Financial Institutions 45 37 38 60

​Consumer 45 42 37 59

​Telecommunications 45 37 37 61

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​Industrial Goods 44 39 36 58

​Insurance 42 37 37 53

​Energy 41 37 34 53

​Public Sector 38 36 31 ​50

0 20 40 60 80 100

Note: AI² refers to “AI@Scale Acceleration Index", our methodology to measure AI@Scale maturity
Source: BCG Digital Acceleration Index (DAI) -Global Study 2022 6
 ​Insufficient value focus; not anchored in
business strategy

​Too many initiatives

Utilities have
not progressed ​Disparate, and disconnected initiatives
as expected in
​Digital product replication is not seeing expected
their digital value at scale
transformation

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Conflict between legacy IT & modern technology
journeys due to platform needs
several pitfalls Digital driven by the Center, the functions… … not
the business

Barriers to changing mindsets &

ways of working
7
Current market trends are forcing utility players to embrace
faster digitalization if they want to face new and relevant
challenges

​Need to ​Customer ​Investor ​Ambition to ​New ​The increase

increase inclination pressures build competitors on cyber
operational to online to put capabilities breaking down security

Copyright © 2023 by Boston Consulting Group. All rights reserved.

efficiency and communication sustainability and attract traditional incidents
reduce capex and Inclination at the core top talent barriers makes it an
to customer- increasing
centric focus
strategies

8
And those able to deploy digital into their business can get
significant value and achieve a competitive advantage
Customers
​Up to 50% improvement in NPS
from greater customer
service quality
​Lower rates from efficiency
savings and capital for
O&M swaps
​Increased customer
satisfaction through higher
service reliability and
personalized experience
Source: BCG experience
Employees
​>90% employee engagement
from Agile and new ways of
working toward outcomes
​New capabilities from on-the-
job training and reskilling to
prepare for the future and new
digital and remote ways
of working
​Greater safety for
employees and contractors
and reduced risk
Shareholders
​~10-20% O&M reduction across
the value chain
​Reduced business risk
and financial volatility
during downturn
​~2-5% increased revenues
from generation facilities
through greater asset uptime
Community
​Competitive long-term position
for economic development
and investment
Copyright © 2023 by Boston Consulting Group. All rights reserved.
​Support for struggling
communities by providing
reliable power during
times of financial hardship
9
The digitalization covers the whole value chain

Value chain expertise

Tech capabilities
​State of the art IT/digital
architecture design

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​IT/digital transformation
and operating models ​Transmission ​Sales
​Generation &
and ​Trading & retail
​Digital design renewables
distribution
and delivery capabilities

​Deep technology expertise

Source: BCG experience 10

But is clear that frontrunners have seen results from their core digital
initiatives
Value-chain Use-case Impact Technology Summary details
​Wind design and array ​ 2-4% ​ ML1, Data Predictive maintenance solution built with data analytics and ML
O&M cost reduction +1% analytics algorithms to anticipate equipment failures
layout optimization higher yield
Renewables
​ Predictive ​ 2-4% Optimizing park layout using AI forecasts based on site and project
​ AI2
maintenance lower capital cost specifics

​ Maintenance strategy ​ 8-10% ML model to recommend maintenance strategy and WO prioritization

reduction in O&M ​ ML
optimization based on asset risk, failure probability
maintenance costs
Generation ​ 10-15% O&M and technician Optimization engine based on business constraints (e.g., labor supply,
​Technician scheduling ​ AI
WO type, location, etc.)
utilization improvement
Use of drone inspections at power generation assets reducing

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​ Drone inspections ​16-20% downtime reduction ​ Drones
inspection time and costs
​ Vegetation Satellite-enabled NextGen AI to optimize trim cycles, hazard tree
​ 10-15% reduction in O&M ​ AI
removal, and vendor negotiations
management
​ Capital project ​ 15-20% capital spend Smart tool automatically plans capital work based on utility priority &
​ ML
Transmission prioritization unlocked to repurpose customer impact
& Distribution ​ Capital & project ​7-15% CapEx reduction after ​Data analytics
Data driven workplan optimization and automated portfolio
planning 5 years optimization to reduce cost and maximize value

​ AI ​Network planning that uses dynamic scenarios that contemplates

​ Network planning ​ >10% NPV improvement network economics & new technologies

​ Supply chain control ​ 7-20% reduction in supply

Supply Chain tower chain cost
​ Data platform ​Centralize data platform for monitoring E2E supply chain processes

1. Machine learning 2. Artificial intelligence

Source: BCG project experience; public use cases 11
 project expertise
Proven track record and

12

Copyright © 2023 by Boston Consulting Group. All rights reserved.

We work in digitalization throughout the P&U value chain
globally
… and we work with 16 out of 25 top
Our Power and utilities clients are spread all around the globe… Utility players on Digital and AI efforts
​Europe and 1 Electricité de France SA
​Americas Middle East ​Asia-Pacific 2 Southern CO
3 Iberdrola, SA
4 Exelon Corp
5 NextEra Energy
6 Duke Energy Corp
7 Enel SpA
8 EDP
9 E.On
​Dusselforf 10 Osaka Gas Co Ltd

Copyright © 2023 by Boston Consulting Group. All rights reserved.

11 SSE plc
​Madrid 12 American Electric Power Co, Inc
​Tokyo 13 Uniper SE
​Houston 14 Evergy
15 National Grid plc
​New Delhi 16 EnBW Energie Baden-Wurttemberg AG
17 NRG Energy, Inc
​Singapore 18 NTPC Limited
​Sidney 19 Xcel Energy Inc
20 The Kansai Electric Power Co. Incorporated
21 Entergy Corp
22 Edison International
23 PPL Corp
​BCG office ​BCG office with P&U hub 24 Sempra Energy
25 Engie SA 13
BCG brings leading Digital is 30-40 %1
digital transformation BCG Energy
capability revenues globally

Copyright © 2023 by Boston Consulting Group. All rights reserved.

1. BCG cases 2022 14
For the last 5 years the utilities have focused
the majority of their projects on optimizing
the digital and analytics of their company
1. Climate & Sustainability
1 2
407
2. Networks (NeTS)
188

10
95
159 120
255
3 3. Sales & Services
~280 cases related
to Digital Power &
60 78 4. Digital & Analytics

5. Generation
9 28 11 >1000 278 979 4
Utilities in the

Copyright © 2023 by Boston Consulting Group. All rights reserved.

6. Supply Chain & Procurement

57
35

75 44
70
147 7. Renewables past 2 years
8 5
8. Natural Gas
158 135
7 6 9. Large capital Project mgmt.

10. Support Functions

Past 5 years projects
Past 2 years projects

Note: Some projects are cross-referenced and may be counted in multiple topics
Source: BCG Case Experience (June 2021- 2023) 15
We have deep experience in digital
projects in P&U across geographies
​53 North America ​181 EMESA ​44 Asia Pacific

While EMESA still leads

digital in utilities, Asia
Pacific grew by 30% in 2022

Copyright © 2023 by Boston Consulting Group. All rights reserved.

and continues with high
numbers in 2023

Note: Updated in June 2023 16

 Numbers non-exhaustive

And significant project experience

in all segments

​Networks

​Other 88
topics
146 11
​Retail
278 cases related
to Digital in P&U

Copyright © 2023 by Boston Consulting Group. All rights reserved.

8 12 in the last 2 years
​Gas/LNG 13 Generation

​Renewables

Last 2 years
Note: Classified according to main topic covered during the project. Most projects cut across several categories 17
We have a vast experience in all relevant digital topics with our
Power & Utility clients

> 250 Digital in P&U cases in the past 2 years

Copyright © 2023 by Boston Consulting Group. All rights reserved.

AI and IT & Digital World Class
Architecture &
Analytics Strategy and Technology ERP AGILE CYBER
Infrastructure1
(BCG X) Transformation Function2

115 87 64 20 12 8 5

1. Includes Platinion cases and DDP 2. WCTF offering operating model, IT Costs, IT Sourcing
Note: Based on BCG client cases info from June 2021- 2023. Classified according to main topic covered during the project. Most projects cut across several categories 18
We have battle-tested AI experts Worldwide to support you

AI@Scale in Energy Global Leader (Konark Singh)

AI in Energy Platforms leaders BCG X in Energy TDA in Energy

Tech/IT in Energy
Power Grids AI BCG X in Energy
(Shubham Kumar - MDP)
EMESA, WW
Global and NAMR (Alessandro Spotorno)
Leader
(Danielle Ullner - MDP)
Tech/IT in Energy
O&G upstream AI

Copyright © 2023 by Boston Consulting Group. All rights reserved.

(Odd Arne Sjåtil - MDP)
PLA EMESA Leader
BCG X in Energy (Jens Elei)
EMESA leader​
(Alexander Leshchiner,
Tech/IT in Energy
O&G upstream AI MDP London)
(Michael Buffet - MDP) NARM Leader
BCG X in Energy (Marie Hélène Ben Samoun)
APAC leader​
Supply Chain in (Andy Lees, MDP Tech/IT in Energy
Energy AI Singapore) PLA APAC Leader
(Llorenc Mitjavila - MDSP) (Abhik Chaterjee)
19
 And a global footprint of Digital in Power & Utilities Senior experts

​Konark Singh ​Danielle Ullner ​Shubham Kumar Alessandro ​Jens Elei ​Frank Klose Eelke Kraak ​Vivian Lee ​Jonas Geerinck ​Carolyn Ford
​MDP, LON
Marie- Hélène Ben ​MDSP, BRU
MDSP, DAL MDSP, HOU Sportorno ​PLA MD, MUN MDSP, DUS MDP, AMS MDP, DAL MDP, NC
AI@Scale in Enregy ​EN BCG.X Head ​Networks.AI Samoun ​ igital in Renewables
D Digital in Power ​Digital in Retail ​Digital in Grids and
MDP, MIL ​IT ERP Data Platform &
​Gen AI MDP, HOU & Renewables Veg Managment
EN TDA Node Transformation Digital Retail
EN TDA Node

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​Ignacio Hafner ​John Snipes ​Thijs Venema ​Edwardo Sackey ​Matthew Sundberg ​Frank Croket ​Michael Farrugia ​Daniel Schlecht ​Stevan Jovanovic ​Shashank Shekhar
​MDP, MAD MDP, HOU ​MDP, AMS ​MDP, ATL MDP, NY ​MDP, BRU ​PLA MD, NY ​MDP, DUS ​Parner, HOU ​Partner, DAL
​Customer ​Digital Supply Chain ​Agile@Scale ​Data Platform ​Data Platform & ​Data Platform ​Data Platform ​ERP Transformation ​Digital in renewables ​Digital in Grids
Personalisation & Architecture​ Digital Grids & Architecture​ & Architecture​

​Bas Sudmaijer ​François Stragier ​Santiago Gallego Mate Gerecs ​Christopher Tuot Oxana Dankova Mike Lewis ​Marc Wunderlich Vuk Trifkovic ​Jani Harnish
​MDP, LON Partner & Dir, PAR Partner & Associate ​Partner Associate Partner DUS Partner and MDSP, HOU ​PLA MD, MU MDP, BER ​MDP, AUS
​Digital Retailer ​Digital Support Director, MAD Director, BUD ​ igital in Renewables
D Director, SYD Digital Transformation ​IT ERP BCG.X ​ CG. X EN
B
Functions ​Asset Management 4.0 ​Fiedlforce Energy networks- Flywheel Transformation
Networks.AI
20
Many success stories on tech and digital topics in our Power and
Utilities clients
• Achieved 30%+ cost efficiencies from organization restructuring, optimized
sourcing, and IT modernization
​Integrated Energy
• Redesigned >6000 IT roles to support digital value delivery, increasing expected
company in US
business value by 2x
• Redefined Agile operating model

• Developed AI@Scale innovation plan with Agile to improve efficiency in operations

​P&U company in with new digital tools and AI-powered apps
US • Hired new external digital talent and reskilled existing workforce
• Developed ecosystem of supplemental contractors for internal innovation projects

• Identification of ideal separation landscape of two ERP systems

​Swiss Energy
• Conducted SAP workshops with SAP and business representatives to detail financial
supplier
impacts

Copyright © 2023 by Boston Consulting Group. All rights reserved.

• Designed, tested, and started the transition towards an Agile organizational design
​European P&U • Simplified team structure with clearer responsibilities aligning missions, KPIs,
company active in roadmap, and end-to-end capabilities per team
renewables • Set up and enabled success of the new way-of-working pilot and drafted transition
plan based on pilot learnings

• Delivered company-wide Digitalization initiative roadmap

• Accelerated delivery of key individual initiatives, including digital solution
​P&U company
development and implementation
in Japan
• Enabled delivery of 3 digital use cases: inspection & maintenance management,
construction management, sales process digitalization

Source: BCG case experience 21

 Contact
Contact María
María Llaneza
Llaneza and
and
Kelly
Kelly Parmeter to have access
Parmeter to have access to
to the
the
vignette library
vignette library

Complete
the proposal
with our best
Digital in
Power &

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Utilities case
vignettes
Teaser Deck H
ere

22
Comprehensive, ready-to-use
platforms, products, tools and models
bcg.com
BCG has launched 3 platforms to support with Energy transition
trilemma with 2 focusing on our utility clients

1 2 3
Networks.AI Upstream.AI SupplyChain.AI
​Decarbonization, digitalization, and ​Efficient upstream operations will be ​Global supply chains have been
climate change are making effective and critical to support O&G majors in their ​disrupted since the pandemic and
efficient build-out and management of ambitious emission reduction plans require significantly higher

Copyright © 2023 by Boston Consulting Group. All rights reserved.

networks extremely complex resiliency and dynamism

​Networks.AI provides an integrated
platform for network companies that
brings together 25+ AI and adv. analytics
use cases to improve decision making
across planning, build-out, management
and operations of networks
Upstream.AI provides a platform that
integrates all our comprehensive AI
expertise and offerings in the Drilling
​and E&P operations space and helps
clients better achieve their emission
reduction goals
SupplyChain.AI helps our clients
optimize their end-to-end supply
chain needs and makes them
more resilient

24
 For
For more
more details
details contact:
contact:
Alvaro
Alvaro Gonzalez
Gonzalez and
and María
María Llaneza
Llaneza

Networks.AI: Explore digital tools across the Network business

Network Planning & Investment Operations & Maintenance (incl. Field Ops) Customer Management

Plan and Design the right
network for the future
Network planning & DER
integration + Design
​Next Generation Network
Planning Platform solution
to help networks make
optimal decisions about
future grid, in a context of
high uncertainty
​Solar and Battery
Site ID & assessment
Site optimization solution
for solar deployment
Optimise investment
decisions and long-term
resource planning
Investment prioritisation
and long term resource
planning
​SmartCapital.ai
​Optimization of capital
allocation to maximize
value
​Nerve Center 360
​Long term integrated works
and resource planning
solution
Collect asset data and
make optimal asset
management decisions
Asset management and
vegetation management
​Asset Control Center
Visibility of spend and
performance across asset
classes, predictive analytics
and optimization modules
by asset class
​Vegetation Mgmt
Satellite-based
Maximize field productivity
and safety – from planning
to execution
Field force operations
Crew by BCG
Platform to manage E2E
process from planning to
scheduling and dispatch,
logistics integration,
reporting and performance
management
FYLD
Suite of Field force
Operate the network
with high DER
penetration
Network operations
DER Integration
​LV network and BTM
visibility, energy system
simulation, AI-powered
analytics platform for
efficient grid operation
with high DER penetration
ADMS & FLISR capability
build
Simplify and
digitize customer
and employee support
Customer support
​Contact center
​support & Self-
service solutions
​BOLD (Fraud Detection)
BCG offering for energy
losses & debt excellence
​DEEP (Customer targeting)
Speed up
customer connections
Connections
​Connect.AI
​End-to-end platform
for managing new
customers' connections
from enquiry to delivery

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​Spotlight
projects
​Resilience aaS
Asset prioritization
analytics/Geo tools to
create integrated resiliency
​CO2.AI for networks
plan for investment
​ClimateImpact.AI
​Advanced statistics and ML
engine for wildfire and
flood risk assessment and
management
​Design.AI
​Network design
collaboration tool
Lidar-based
digital twin (Neara)
Network design and
conductor ratings enhanced
by LiDAR-based digital twin
​AI based spend cube
analytics and decision
support engine
​AI based solution for scope
1-3 monitoring (emissions,
water), initiative
identification and impact
assessment
​Vegetation Mgmt
LiDAR-based
​Pathfinder for
leak survey (gas)
​Leakage monitoring and
detection solution
​Pathfinder for corrosion
inspections (gas)
management solutions to ​Advanced networks
unlock safety &
operation incl. fault
productivity location, isolation & service
​FieldSox restoration
​Data-drive field force
solution Weather Emergency Mgmt.
​Fieldforce.ai
​Digital workflow mgmt. for
supervisors and field crews
​Warehouse &
inventory optimiser
Inventory/logistics model
EV fleet charging locations
Key: Not developed ​Developed or in progress 25
 For
For more
more content,
content, check
check our
our GTM
GTM deck:
deck: here
here

And a core technology and digital advantage capabilities offering for integrated
energy players
In cooperation with BCG.X Spotlight case available

​1. Baselining ​2. Strategy ​3. CIO/CTO Operating Model (WCTF)

​1.1 Digital ​2.1 IT & Digital ​2.2 De-risking ​3.1 Organiza- ​3.2 Capability &
​1.2 WCTF1 ​1.3 IT costs ​2.3 Carve out ​3.3 IT
Acceleration ​1.4 DGMA2 strategy large tech tion and skill build up
assessment benchmark and PMI governance
Index (incl. DSR) programs operating model (incl. BOT5)
Strategic direction ​2.4 Data ​2.5 IT costs ​3.5 SWP6
​1.7 NextGen ​1.8 Cyber ​2.6 CxO ​3.4 Digital
and operating model ​1.5 DACAMA3 ​1.6 RADAR4
ERP posture
strategy
(AI @ scale)
reduction &
simplification
advisory sourcing
(Tech functional
& data)

​8. Trading ​9. Integrated ​10. Low Carbon

​4. ERP and Back ​5. Customer & ​6. Support ​7. Transversal ​11. EN.X Platforms
and Risk EN Transf. EN & Infra
Office Front Office functions capabilities

​5.1 CRM & ​7.1 Service ​8.1 Trading

​4.1 ERP 11.1 NextGen Climate
sales (e.g., ​6.1 HR platforms (e.g., landscape ​9.1 Utilities platform …
transformation transformation Networks.AI Planning Impact.AI
Salesforce) ServiceNow)
​5.2 Customer ​8.2 Trading

Copyright © 2023 by Boston Consulting Group. All rights reserved.

​4.2 SAP IS Oil & archit. of ​9.2 Metering platforms 11.2 DrillNext DART …
Data Platform ​6.2 Procurement ​7.2 Automation
Transversal Gas platforms (CDP)
Energy the future Upstream.AI

business ​5.3 Marketing

​7.3 AI & adv. vertical ​8.3 Trading
​10.1 Grid 11.3 Supply
Focus of next section ​6.3 Finance analytics capability ​9.3 Octopus PLAN AI SNOW AI …
solutions (MarTech) platforms specific build up platforms Chain.AI

​5.4 Other front

​6.4 Other solutions ​8.4 Trading Mainten- DEEP/
functional ​10.2 NeTS8 11.4 Other …
office solutions benchmark ance.AI Persona.AI
solutions

​12. Architecture and Infrastructure ​13. Cyber and Digital Risk

​12.3 ​13.1
​12.1 Data and ​12.2 Cloud/IT ​12.4 IT/OT ​13.2 Advanced ​13.3 Supply ​13.4 Zero-Trust ​13.5 Fusion ​13.6 Cyber crisis
Architecture Cybersecurity
Digital Platform infrastructure convergence cyber risk mgmt. chain risk mgmt. strategy operations management
Tech foundations modernization strategy

1. World Class Tech Function; 2.Data Governance Maturity Assessment; 3. DAta CApability Maturity Assessment;
4. Rapid Assessment DDP ARchitecture; 5. Build Operate Transfer;6. Strategic Workforce Planning; 7. Advanced Metering Infrastructure; 8. Network Transformation Service 26
KT Tools
bcg.com
Energy IT Sourcing Advisor – Utilities version EN IT Sourcing Advisor POCs

Market Need Value Proposition

Alvaro Gonzalez
Knowledge Expert
IT vendor sourcing decisions are critical to Energy IT Sourcing Advisor tool is Global tool lead/
players across the energy industry; with tracks technological sourcing General Questions
large portions of budgets dedicated to IT investments of top 180 utilities
and many opportunities for inefficient players
IT spending
Understand sourcing trends between
Power and utilities see these regions, parents-subsidiaries,
inefficiencies taking the form of siloed vendors, peers, etc. Felix Campos María Llaneza

Copyright © 2023 by Boston Consulting Group. All rights reserved.

IT departments with duplicated
responsibilities and multiple vendors
providing similar solutions
Given the high spending on IT,
especially corporate IT, strategic decisions
are critical
Senior Knowledge Analyst Senior Knowledge Analyst
EMESA/APAC EMESA/APAC
Assess vendor selection decisions O&G node Utilities node
(ERP, asset lifecycle management,
etc.) to see in which vendors Utilities
and Oil Cos are investing
Inform strategic decisions relating to
IT cost reductions, IT landscapes, Kelly Parmeter Victoria
Senior Knowledge Analyst Stadtmueller
vendor selection, outsourcing, US node Senior Knowledge Analyst,
and more CF US node

Digital in Energy KT contact 28

Energy Digital and IT benchmarking Key BCG contacts

Market Need Value Proposition

Alvaro Gonzalez
Knowledge Expert
After the initial digitalization waves, Access to top P&U Digital and IT key Global tool lead/
utility players are reorganizing their IT and information and benchmark different General Questions
Digital units, strategic decisions are governance and operative models
critical to • Digital and IT Cost benchmark
• Ensure IT and Digital Coalescence and • Digital and IT profiles benchmark
cooperation model • Digital and IT Organization
• Preparing for less predictable power Archetypes benchmark
systems by leveraging digital for grid Felix Campos María Llaneza

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Senior Knowledge Analyst Senior Knowledge Analyst
modernization EMESA/APAC EMESA/APAC
• Build core capabilities to develop O&G node Utilities node
cutting-edge technologies
• Promote IT-OT convergence to unlock
value and tackle cyber-threats
• Ensure optimization and guardrails to
maintain a sustainable OPEX spending
• Mitigate impact of natural disasters by Kelly Parmeter Victoria
Senior Knowledge Analyst Stadtmueller
building resiliency US node Senior Knowledge Analyst,
CF US node

Contact Energy KT 29
Digital in Power Use Cases & Lighthouses
Market Need
Utilities are in different stages of their
digital transformation journeys. COVID-19
has accelerated the need to digitalize
their operations to face the challenges
ahead and be competitive
It is critical for them to explore the
Digital solutions that apply better to their
business, match better their capabilities
and could generate more value for them
The Digital in Power Use Cases &
Lighthouse is designed to support them
in this process
1. Minimum Viable Products
​Digital Power Use Case
Value Proposition
​& Lighthouse Core Team
​Two complementary tool offerings
A. Integrated database with >200
use cases across the P&U value
chain (Generation, Renewables,
Grids, Retail and Support
Functions) with prioritization
assessment, impact, vendors Alvaro Gonzalez
Knowledge Expert
and clients, etc.
Copyright © 2023 by Boston Consulting Group. All rights reserved.
Digital in Energy KT Leader
B. Detailed Lighthouses for
prioritized use cases to
understand requirements and
approach for MVP1
implementation
María Llaneza Kelly Parmeter
Senior Knowledge Analyst Senior Knowledge Analyst
Digital in P&U Digital in EN, US Node
30
Digital U-Map
Market Need
DIGITAL is disrupting the world. Players
across industries are forced to strength
their digital skills and capabilities to
maintain their competitive advantage.
Utilities are facing 3 main disruptions in
this Energy transition :
Decarbonization, Decentralization and
Digitalization
Power sector is in the phase where
digital is attacking the value chain.
For utilities digitalization is not longer
a choice a it's a MUST to survive
1. Minimum Viable Products
​Key BCG Digital U-MAP
Value Proposition
​contacts
Digital U-MAP tool is truly BI
solution that tracks M&A and
Private Investments of top 210
utilities worldwide in companies
offering digital solutions + 170
relevant players in the Energy Alvaro Gonzalez
industry Knowledge Expert
Digital in Energy KT Leader
Copyright © 2023 by Boston Consulting Group. All rights reserved.
Understand movements of key
competitors in the digital in
Power business including top
OilCOs Automotive, OEMs, across
the entire value chain.
Assess technological trends (IoT, María Llaneza Kelly Parmeter
Senior Knowledge Analyst Senior Knowledge Analyst
Blockchain, etc) , see where Digital in P&U Digital in EN, US Node
Utilities are pushing harder digital
across the value chain.
Contact Digital U-MAP
31
Proprietary tool: see where other top utilities are pushing hard on M&A
and investments alongside tech trends with digital U-MAP

Digital U-MAP uses NLP to track M&A and private investment activity of
top 210 utilities worldwide + 170 additional major O&G, OEM, Tech players

Investments across value chain Investments across digital capabilities

Renewable Conventional T&D grids Smart Smart Low Carbon Big Data & Robotics Blockchain Cloud Iot Software Additive
Energy Generation Energy Transport Analytics Automation Computing Connectivity Manufacturing
& Storage Consumption Storage

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Top Company profiles, including Deep dive investment analyses on
internal innovation and initiatives to companies offering digital solutions
interact with the external ecosystem in with a value chain and
(CVC, accelerator, LABs) technologies perspective

Timeline trend with evolution of Startup profiles of the most relevant

Investments across the last 5 years, companies in the ecosystem offering
including number of investments digital & disruptive solutions
and size

32
Why BCG

33
 ​We deliver value impact (+10x invested fees and resources)
1 ​Proven by a track record of successful ventures and Digital transformations

​We propose our experienced experts driving business value

2 ​We take an integrated business + technology approach, anchored on business value. Best teams with
a mix of local implementation capabilities and worldwide expertise on critical topics for utilities

​We have extensive experience in digital and agile transformation

3 ​We have successfully been involved in the digital transformation implantation for over 16 of the
top P&U companies, and have cloud and agile experts to help you maximize business value
​Why BCG?
We have IT/digital capabilities and multidisciplinary experts
4

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Embedded in multidisciplinary teams of both strategic consultants and Digital specialists, with
7,000+ digital experts across BCG X (data scientists) and BCG Platinion (Technology architects)

We connect business, development and operations

5 We have battle-tested methodologies and approaches, the proprietary data for benchmarking and
the tools

We will co-create with you by leveraging our cross-functional team

6 The experts work alongside the client teams to enable them to drive the change through a collaborative
approach. With expertise in ~278 cases in the past 2 years linked to Digitalization of P&U 34
We bring our capabilities together to
address our clients most complex issues…

Digital consultants
3K+ Consultants with passion for digital, technology, and
capability building

AI and data analytics experts Orchestrate, integrate,

1.4k+ Data scientists, and experts with advanced analytics skills, & enable
customized and productized software builders
Best-in-class
Digital business builders integrated teaming,
600+

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Innovators and entrepreneurs with start-up mindset offerings, & products
and skills
Build, develop, & design
IT architects & digital solution builders
1.1k+ IT architects, designers, engineers, agile coaches, and cyber
specialists

Additional specialty skills

Specialist units bringing specific skill sets to our digital work,
550+ e.g. purpose definition, technology investment,
procurement
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 3,000+ Truly global presence
global employees across and reach
Product, Design, Engineering,
Data Science and Analytics
NAMR
Product Management

… and the best ~1000

FTE
APAC
~900
global talent Data Science & Analytics
EMESA
FTE

pool to build Data Engineering

~1100
FTE

digital products

2023 by Boston Consulting Group. All rights reserved.

and businesses Strategic Design

Experience Design Additionally, 7 Delivery Centers with

1000+ near & offshore build resources
offering best in class techno-functional
FE & BE Engineering support and maintenance teams

Copyright © 2022
Growth & Digital Mktg
36
36
2023 IDC MarketScape: Worldwide Artificial Intelligence Services

Key Takeaways
BCG is positioned as a "Leader":
• BCG combines functional and industry expertise, technology expertise, Responsible AI framework, and its
technology build and design unit, BCG X, to deliver AI services to clients as part of holistic business
transformation consulting engagements
• BCG's AI offerings span the life cycle of AI use cases, including discovering, building, and scaling AI,
organizational learning with AI, and consulting related to people, process, and change management.
• BCG's AI at Scale offering covers three main aspects of AI deployment: defining AI outcomes (value and
strategy), building the foundation (human and technology), and sprinting to value (agile deployment and
industrialization).
• The firm draws upon a growing portfolio of AI assets, including industry and function-specific workflows,
and software products such as CO2 AI, PLAN, and Fabriq, tailored to client needs to accelerate AI solution
deployments, as well as deepening its alliance partner relationships such as CDP to codevelop solutions.

Direct Quotes

Copyright © 2020 by Boston Consulting Group. All rights reserved.

• "According to customers, BCG's strengths are the firm's ability to provide industry insights and
competency, provide functional insights and competency, provide AI insights and competency, and deliver
AI center of excellence services."
• "IDC considers BCG's breadth of technology alliances and strategies around offerings, next-generation tools
and methodologies, client adoption, sales and distribution, growth, innovation and R&D, and technology
and business skills as key strengths."
• "BCG also showcased strengths in achieving business outcomes for clients with AI services and in breadth,
depth, and impact of AI services innovation activity."

Download BCG excerpt: Link

Source: "IDC MarketScape: Worldwide Artificial Intelligence Services 2023 Vendor Assessment", by Jennifer Hamel, May 2023, IDC # US49647023
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and
quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy 37
score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the circles. Vendor year-over-year growth rate relative to the given market is
indicated by a plus, neutral or minus next to the vendor name.
 1
Build technology to solve the world's most complex
problems
2 Build global, diverse tech entrepreneurs and leaders

3 ​Build fast & bold with unparalleled E2E business impact

4 Build breakthrough with emerging technologies

Our mission: 5 ​Build next-gen ecosystems
Build Tomorrow
​Build new monetization models with assets and equity

2023 by Boston Consulting Group. All rights reserved.

6

7 ​Build a destination work experience for global tech talent

8 ​Build human-centric - for and with people

9 ​Build for good and with trust

Copyright © 2022
38
Delivering leading and innovative approaches globally
Leading global examples

Portfolio expansion 2030 strategy to deploy $30B in capex and generate ~$3B revenue from new renewable arm of the business

Pursuing C&I decarbonisation solutions Supporting C&I decarb. through CCUS, hydrogen, and 10GW of renewables by 2030; Green LNG with Sempra
new
portfolio
Next generation fuels Coalition (incl. Iberdrola, Orsted, FFI) pursing 50x scale up of green H2; 45GW renewables already committed
growth
Demand side management Global leader in demand response programs, present in 11 countries with 7.7GW+ flexible capacity under mgmt

Driving Portfolio transition Shifted from 85% conventional gen. to a portfolio of renewable energy, with ~65% of 2020 rev from wind
sustainability
in the core Supply chain decarbonization Visibility, analytics, benchmarking of supplier ESG metrics through Open-SC platform built with Google and BCG

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Tuning the Sustainability op. model Built a distinct op. model for its renewable arm, with differentiated purpose, metrics and decision making
operating
model for
BU / asset separation Completed one of the largest carve outs in the energy industry to separate conventional and renewable assets
the future
Implemented 3 analytics use cases for Smart customer targeting to bring the right offer, at the right time,
Personalisation@scale through the right channel

Embedding AI & machine learning Developed and scale up data driven marketing engine as part of Digital Marketing strategy
data and
Implemented digital twin concept with cockpit and suite of 3 use cases at MVP stage for a complex offshore
analytics Simulation & digital twins oilfield in the Middle East

Developed a digital transformation by defining the roadmap, MVPs and building the foundation to enable DDP at
Digital Transformation scale and the digital ways of working across business and functions 39
Technology agnostic, but we believe in partnerships to accelerate and improve
client delivery

End-to-end technology stack—examples Experience working w/vendors

Integration
Integrated visualization portal
Visualization Workflows and insight consolidation Formal
React Spring Boot partnerships

​Technology
​ vendors
Advanced analytics
Advanced (e.g., Predictive maint.,
analytics production optimization)

Provide software products and

Equipment
and integrated Modelling technical knowledge

Copyright © 2023 by Boston Consulting Group. All rights reserved.

modelling
Formal

services resources
partnerships
Data cleansing Data historians + Asset documentation + ERPs
and storage

​ Technical
ICSS
Asset control
Field raw data ​ Provide technical resources
Elastic search

PI
Raw ops. data (SCADA, local HMI, manually captured data etc.)
who develop Digital Twin
software functionality and
Infrastructure Storage and hosting solutions technical integrations

40
40
All our different Energy related Digital and Technology offerings rolls into two
main offerings – the TDA FPA, and the BCG X Business Unit

What is TDA? What is BCG X?

A functional practice area focused on leading A business unit within BCG that brings together
digital & tech transformations, enterprise our digital capability teams who build and

Copyright © 2023 by Boston Consulting Group. All rights reserved.

technology and new emerging technologies design technology, software, AI, digital
within and across industries. products, and new ventures for our clients.

TDA’s IT Consulting, Enterprise Solutions, Enterprise Draws in talent from DV, Gamma and our Platinion Design,
Architecture, Cybersecurity, Agile and Risk Management Engineering, and Product chapters
talent remains part of the Plantinion sub-unit
integrated within TDA FPA

41
And We operate as OneBCG

Energy Technology
Practice and Digital End-to-end execution with builds
Area Advantage to drive value and create
real outcomes

Copyright © 2023 by Boston Consulting Group. All rights reserved.

 Thought leadership and
state-of-the-art research
43

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Digital in Power & Renewables Latest publications
The Energy Transition needs
Next- Gen Network
Planning
by Oxana Dankova
June 2022 Link
Using Advanced Analytics
for Better
Maintenance(LinkedIn)
by Santiago Gallego
May 2021 Link
Electrifying your digital
transformation
by Justin Dean, Matthew
Sundberg, Anil Podduturi, Charles
Gildehaus, Philip Hirschhorn,
Oxana Dankova and Pavla
Mandatova
June 2022 Link
Developing digital
capabilities to optimize
asset management and
performance (LinkedIn)
by Santiago Gallego
July 2020 Link
Let's get Digital Asset
Management
by Santiago Gallego, Alfonso
Abella and Oxana Dankova
June 2022 Link
IoT in Wind (LinkedIn
article series)
by Lars Holm, Neil Shepherd
Daniel Schlecht, and
Alvaro Gonzalez
March 2020 Link1 / Link2 / Link3
Cutting More Data and
Fewer Trees
by Oxana Dankova, Alfonso
Abella, Konark Singh, Carolyn
Ford, Joe Butler, Hanna King and
Santatio Gallego
June 2022 Link
Mastering digitized
commodity trading (BCG
Article)
by Antti Belt and Anders
Porsborg-Smith
May 2019 Link
The Bionic Energy Network
by Philip Hirschhorn
June 2022 Link
Copyright © 2023 by Boston Consulting Group. All rights reserved.
How Utilities can Boost
WFM Productivity w Digital
(BCG Article)
By Justin Dean, Philip Hirschhorn,
Ferdinand Varga
and Magín Yáñez
March 2018 Link
44
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Copyright © 2023 by Boston Consulting Group. All rights reserved.

BCG does not provide fairness opinions or valuations of market transactions, and these materials should not be relied on
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BCG has not independently verified the data and assumptions used in these analyses. Changes in the underlying data or
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