Joerg Fabri of Allocate recommends a holistic business strategy for the energy turnaround
Ecosummit TV: Joerg Fabri, Managing Partner of the consulting firm allocate, talks about a holistic business strategy for the utilities to manage the energy turnaround (Energiewende). To implement the transformation to the clean energy system companies need to reallocate their 4 key corporate resources: capacities, capital, people and energy and materials. There is a new paradigm driven by energy efficiency which means that the former business model of megawatt growth will not work anymore. The smart green utility of the future has to become an allocation manager that learns how to better manage the increasing complexity in the supply side and the demand side.
The new smart energy system is based on bidirectional information and energy flow while customers become prosumers and energy services create new business opportunities. Efficient capital allocation is a big challenge and positive cashflow is key. The running business has to create the cashflow to finance the new business. Surprisingly, an increasing number of utilities finds out that renewable energies contribute quite nicely to their profit margin and, therefore, decides to move more CAPEX to renewables.
Growing customer value with new services is another option for the transformation strategy. While energy efficiency results in decreasing energy sales, new services can be offered to the existing customer base to increase the revenues per customer, e.g. financial services or electric mobility services. As changes in the energy market will be huge and disruptive, incumbents have to transform quickly while innovative startups enter the market to exploit the new business opportunities. For corporates and startups alike, an integrated strategy that optimises the allocation of all corporate resources is the key to sustainable success.
Tags: Allocate, Berlin, Consulting, Corporate, Customer Value, ECO12, Ecosummit 2012, Ecosummit TV, Energiewende, energy efficiency, Energy Turnaround, Joerg Fabri, Resource Allocation, Smart Green Economy, Smart Green Utility, Smart Grid, Strategy, Utility
