Why innovation must be at the core of the energy transformation journey
A conversation with PwC Canada’s Vision to Reality Awards judge Jane Allen, Senior Vice-President, Strategy & Innovation, Hydro One
PwC’s Vision to Reality Awards(V2R) program recognizes organizations whose vision has become a reality and everything it takes to make that happen.
As the business landscape in Canada continues to change due to shifting customer experiences, organizations in the power and utilities sector are putting a greater focus on innovation, reinventing themselves with fresh thinking, collaboration and new technologies.
Hydro One, Ontario’s largest electricity transmission and distribution provider, is committed to this revolution. They’re putting innovative initiatives at the centre of their strategy to build a culture of technology innovation, deliver the experience customers want, and ultimately, turn the company’s energy transformation vision into a reality.
Historically, utilities have been slow to adapt to change. How do you evolve that mindset to push towards a more innovative approach?
It really starts by communicating the importance of innovation and giving people permission to try new things without fear of failure. Once you’re able to demonstrate that, it opens people up to think differently.
Innovation hasn’t always been top of mind for regulated utilities. They have other priorities including upgrading the system, providing good customer service and achieving their regulated rate of return.
In today’s ecosystem, utilities need to acknowledge that innovation is going to be an important part of the future. I believe communicating this message and encouraging everyone to try new things is the place to start.
What is Hydro One’s vision for innovation?
We want to fully participate in the transformation that’s taking place in the energy sector as a whole, from centralized power to distributed power and customer choice programs. Our goal is to always understand what our customers are looking for and create new offerings that meet those needs.
We also want to bring innovation to our core transmission and distribution business, making sure we’re maintaining reliability and affordability through technologies like grid modernization, advanced sensors, drones, remote system monitoring, advanced analytics and mobile applications.
Our big picture vision is to create a culture of innovation, tapping into the ingenuity of our own people to identify those opportunities to help our customers and improve productivity.
What steps would you have to take to turn this innovative vision into a reality?
Our corporate strategy has a heavy innovation component and that’s really been embraced by the organization, so innovation has become part of the thinking in departmental business plans.
We talk about the importance of innovation and that’s freed people up to start thinking differently.
We want everyone to think “Okay, if innovation is important to this company, what can I be doing in my area to bring more value?”
We’re also exploring partnerships with companies that provide behind-the-meter businesses. We’ll look at what we can do with the various innovation hubs around Ontario as we can learn from them and they could learn from us. We intend to have staff exchanges and workshops where we would collaborate with our partners to always embrace fresh thinking.
How important is it for organizations, specifically within your industry, to embrace transformation?
It’s important for organizations to understand the forces around them that are affecting their business and to be able to respond to them in the most appropriate, innovative way.
Sometimes that involves transformation of part or all of the business. But other times it’s just about making minor tweaks and being excellent at executing what you’re already doing — the key is knowing which one it is.
There’s a large spectrum along the value chain and utility companies need to figure out where they want to play in the value chain. Utilities in Canada are well aware of the changes that are taking place in the electricity industry, and they’re making decisions that are appropriate for them.
What does transformation look like for Hydro One?
Hydro One’s transformation is based on growth as our intention is to become a leadingNorth American utility.
Our acquisition of American energy company Avista Corp. , which is expected to close in 2018, is one example of how we’re bringing our transformation vision into reality.
They’ve got innovation in their DNA and they are proud of saying that themselves. They were the ones behind the development of the meters that eventually became Itron, which is an industry standard globally.
Digital technologies have really raised customer expectations for how they interact with their service providers across the board.
How important are new technologies in today’s customer-centric landscape?
Digital technologies have really raised customer expectations for how they interact with their service providers across the board: their banks, their mortgage providers, their favorite stores, etc. They’ve really raised the bar and utilities need to keep up.
The people in our customer group come from different industries, and it’s been really interesting to see the knowledge they bring as they continually scan the marketplace for good customer experience examples, which is key for us right now and on an ongoing basis as we aim to develop the best customer experience.
As a judge in this year’s V2R Awards program, why is it important for you to recognize organizations who are challenging convention?
Part of my role at Hydro One is to be a catalyst for innovation. I always encourage those who think outside the box and want to explore innovative ideas.
It’s important to recognize those who challenge conventional wisdom because they’re often the risk-takers and the ones who advance our thinking for the betterment of everyone.
PwC Canada’s V2R Awards are judged by an independent panel of innovation experts. To learn more about the 2018 V2R Awards, visit our website.
