Oct 12, 2013

which is the best approach?

The public utilities sector (water, electricity, gas, etc..) is evolving: economic changes and new rules (the liberalization process is not complete yet) have transformed and are still transforming both the former monopoly and the new suppliers.

The former monopoly companies operating under assets concession and the other companies that are now on the free market (for production and sale of energy, for example) use highly different business models: the former are focused on asset management and on network services efficiency (investment, cost reduction, performance improvement, management of network infrastructure and logistics), the latter have their main driver on the acquisition of customers and their margins.

Regardless of the type of company, who has the task of designing and redesigning a system of performance management in this area will immediately face the difficulty of defining open models that are able not to quickly become obsolete because of the frequent changes in regulations and system.

This characteristic of the sector must also influence the choice of Corporate Performance Management systems. The market offers different solutions with different characteristics. It is not true that one single integrated solution is necessarily the right one.

The experience gained in this sector says tha belief that it is appropriate to separate the CPM processes are subject to change from the more stable system and identify the best technology solutions.

The application model should be as open as possible, especially on those parts of the system that are subject to change: this allows to minimize any impact on what has already been implemented.

Referring for example to companies that buy and sell electricity and gas, control processes are particularly articulated both because there are many 'extra companies' actors involved in the process and also because of the 'network' system itself (balance equations). The Italian gas sector, for example, on December 1st will begin to work through a stock exchange system, as it is for the electricity sector. The models developed in the planning and control companies need to adapt to the new one.

This is one of the main challenges that SDG - Utilities & Resources is ready to face, supporting all its customers!