Digital Transformation in Utilities Definition

What is digital transformation in utilities?

More and more sectors today are moving to digital transformation. And this includes the utility sector.

Why? And how are they doing their digital transformation? Are there any challenges?

In this article, we will talk about answers to those questions.

Digital Transformation in Utilities

Digital transformation in utilities is the adoption of new digital ways of working. And reinventing themselves in line with their business goals.

Although each company has its own set of goals, they have common ones. These are:

  • better customer interaction
  • better customer experience
  • efficient operations
  • hopes for new business models

True, the utility sector is slow to adopt digital transformation. Still, companies at the forefront are making ways for a successful digital transformation.

This is important because the customer’s expectations are rising. They want their transactions fast and easy.

Also, it needs to be informative and transparent. Customers want to see and manage their usage. 

But, there are challenges the utility sector is facing.

Challenges in Utilities

There are many challenges the utility sector is facing.

One of these is regulatory challenges. This is different in each city, state, region, and country. But this is a challenge that limits the steps a utility provider can take.

Then, there’s a tight competition. Depending on each place’s regulation, competition might arise.

Also, there are technological challenges. Even though this is more of a chance, it can also be a challenge. This includes smart metering, digital utility among others.

So, what can the utility sector do to be successful in their digital transformation?


As said, customers have different needs and changing expectations. So, providers need to meet those. One thing that can help in this is segmentation.

Providers need to know the differences between their residential and commercial customers. They must also know what their preferences on:

  • product
  • services
  • communication

Then, once they know these, they must give customers different solutions. They can customize a mix of products, services, and communication strategies.

Also, they can make different incentive programs. These must be different for residential and commercial customers.

In doing these, they must look at how technology can help them with these goals.

Smart Contact

Another area the utility sector can improve on is better customer service. And to do this, they need to take advantage of smart solutions.

Thus, they need to make open lines through different communication channels. So that customers can contact them fast and make a better relationship with them.

Smart contact, then, is the solution. Providers need to make full use of the technology available today. Then, connect each customer to the right resolver. In this, they can use the help of AI or human employees.

Smart contact has 4 key themes:

  • Rise of the bot
  • Move to a digital action
  • Making personal connections
  • Agile operating model


In today’s digital era, each sector needs to keep up with the trend. Whether it be the finance, education, or utility sector. This is because the customers’ expectation has become higher over the years.

To keep up with this, digital transformation is crucial.

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