As the utility industry evolves into a more digital and smarter ecosystem, modern and cloud-based solutions have become imperative for companies to survive and thrive. To remain competitive, utilities need to ditch outdated legacy customer information systems (CIS) that restrict their ability to adapt to emerging industry requirements and meet ever-changing customer needs. Therefore, adopting modern solutions with the right components and functionalities is essential to keep pace with industry transformation, enhance operational efficiency, improve customer experiences, and drive sustainable business growth.
There is no doubt that technology is transforming our world, and companies are adapting to ensure sustainability and resilience. Utilities are no exception, as they’ve been steadily working on increasing their investment in modernization and digitalization, focusing on creating value, outstanding customer experiences, and operational efficiency. In fact, according to Gartner®, utility CIS is undergoing a rapid transformation, transitioning from traditional on-premises, monolithic, batch processing systems to a modern, customer-centric, event-driven platform [1], highlighting the urgency and opportunity for utilities to modernize.
The problem with a traditional approach
Unfortunately, many utilities are relying on outdated legacy systems to run their operations, which are holding them back from digitally evolving their businesses. Imagine this – using a typewriter to write a novel may have been a great idea decades ago, but now that we have computers with advanced writing software, it would be limiting to stick to the old method. Similarly, legacy systems may have worked well for utilities in the past, but in today’s world of digital transformation and AI, they lack the flexibility and functionality needed to take advantage of emerging technologies. These systems are rigid, heterogeneous, and challenging to integrate, resulting in missed opportunities to leverage new and improved solutions and can even restrict utilities from addressing new market challenges.
M2C Functionalities*: Account management, utility services management, order processing, rate design, billing, payment processing, accounts receivable, credits & collections, and statement preparation.
Typically, legacy customer information systems are streamlined to manage utilities’ meter-to-cash processes. They are built on obsolete architectures that cannot be scaled effectively, making it difficult to respond to new demands. These outdated systems will most likely leave utilities looking for additional specialized solutions to try and plug the empty holes to stay afloat. The integration of processes within a legacy system often includes hidden maintenance costs, complex implementation projects, and specialized IT skills. This creates additional challenges for utilities to upgrade their systems or implement new technologies. The struggles of working with an outdated IT system can be significantly worse than the cost of adopting a modern solution and to make matters worse, most utilities with old legacy systems are reaching the end of their IT support.
Embrace the power of modern solutions
To meet the digitalization needs of today, utilities should replace their outdated legacy CIS solutions with a modern CIS that supports traditional and cutting-edge lines of business with a future-proof design that allows continuous evolution.
A modern CIS design consolidates traditional and advanced functionalities to increase operational efficiency, optimize resources, reduce costs, and enhance customer experiences. These systems feature a native cloud design, are built to scale easily, and use modular components, making it simple to add or remove features based on a utility’s size and budget. Additionally, the embedded AI capabilities further enhance the utilities’ operation by automating processes, improving decision-making, enabling predictive insights, and delivering more personalized customer interactions.
Modern solutions are also designed to be flexible, allowing utilities to integrate new technologies and upgrade the system without incurring significant costs. This makes utility digital ecosystems flexible enough to adapt to new demands and requirements efficiently. This flexibility is essential to handle smart grid billing, support new business models development, and address trends like accelerated energy transition or economic threats like water scarcity.
By adopting a modern CIS built on a customer-centric approach, utilities can also enhance their customer experience and increase satisfaction levels. Such systems provide customers with access to digital omnichannel communications, self-service portals, and online sales capabilities, among other features, resulting in higher customer retention rates and business growth.
In response to the evolving demands of the utility market, Open Intelligence developed Smartflex, a modern CIS solution built to meet emerging customer and industry needs. Its clients, located across 19 countries worldwide, are already benefiting from its unified capabilities for digital customer experience, meter data management, and mobile workforce management, all within a single, integrated platform. The solution also incorporates all the essential components needed to support innovation and drive the digital transformation of utilities. With Smartflex, utilities are empowered to adapt quickly, improve service delivery, and lead the way toward a customer-centric energy future.
References
[1] Gartner, Market Guide for Utility Customer Information Systems, Jo-Ann Clynch, Lloyd Jones, 2024
https://www.gartner.com/en/documents/5487595
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
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