Unlocking the potential of Data and Analytics
We have been riding the digital wave for quite some time now, and living in the era of 4.0; Industry 4.0, Innovation 4.0, Business 4.0 and more. The transformations resulting from digitisation and connectivity have already changed the way we operate in our day-to-day lives. Several reports and studies predict that connected devices could reach almost 75 billion globally by 2025. Looking at large industries to MSMEs, digitisation and technology advancements have crossed over into all the operations; it is no more a buzzword but the core of a business strategy.
We are at a juncture, where it is all about ‘Smart’ ways of management. Clearly, Smart Energy Management takes the CenterStage in all operational decisions of an organisation at present. This evolution is primarily fueled by the multilateral efforts towards decarbonising the global economy to address climate change, prepare for unforeseen calamities, and for an overall shift towards a clean, intelligent, mobile, and distributed energy ecosystem, backed by digitisation.
We call it Energy 4.0.
Digitisation is pervasive – Analytics is evolving
Consequently, in this digital ecosystem, proliferation of data has been phenomenal. We are churning out enormous and expanding amounts of information, aka data. According to a McKinsey report, the world creates about 2.2 exabytes, or 2.2 billion gigabytes of data every day. Furthermore, aided by the consistent drop in storage costs, organisations are now able to create meaningful repositories of this information that can be analysed successively for enhanced decision-making. As stated in a report by Gartner, today data analytics are becoming strategic priorities and are considered as the key accelerant of an organisation’s digitisation and transformation efforts.
Although, there are some teething problems when it comes to a broader adoption of analytics within operations. Due to lack of clarity and other related factors, companies are struggling to move beyond a few successful use cases, to scaling it across and embedding it in organisational culture and everyday decision-making.
The same Gartner report also highlights that even though organisations realise the importance for analytics, fewer than 50% of documented corporate strategies mention data and analytics as fundamental components for delivering enterprise value.
However, according to predictions the scenario is changing and quite radically. Considering the current trend, by 2022, 90% of corporate strategies are expected to explicitly mention information as a critical enterprise asset and analytics as an essential competency.
Specifically, for the Energy Industry, consistent amplification of big data and analytics constitute an unprecedented opportunity for improving and better managing of energy consumption, procurement and generation at different levels.
Next generation Energy procurement management – backed by Analytics
The next-generation procurement management is disrupting the vendor business model. Another report by McKinsey on ‘Revolutionising procurement for the 2020s’, highlights that ‘benefits of digitisation in procurement include; a 20 to 30 percent reduction of time-to-market, improved services to internal business partners, and strengthening of cross-functional collaboration’. Organisations are increasingly realising that leveraging technological breakthroughs specifically for Energy Procurement has significant bottom-line benefits, including cost reduction, process efficiencies and spending on controls and compliance.
Traditionally, most companies would receive and pay bills, as well as buy energy from utilities without the required analysis, The face of it is, however, evolving now. Akin to all other industries, digital revolution has successfully paved its way into the Energy procurement segment.
Enhanced procurement decisions supported by digitisation is not just based on a systematic process, but a consolidated view of deep and rich data that can be leveraged to make the best decisions, attributing to an organisation’s profitability.
As an in-house energy procurement expert, you would agree that the need for ‘Smart or Digital Energy Procurement’ has augmented like never before, and the two critical aspects to consider here, include:
- Understanding the market itself along with its overall functioning that triggers vast fluctuations in the price and facilitates the success of energy procurement negotiations
- Understanding energy usage of your enterprise and leverage data and analytics to make better decisions
Analytics play a critical role by enabling energy managers to put an anticipated cost as per their energy consumption. Specifically, if an organisation has a large energy usage and budget, data and analytics empower the energy procurement specialist to make a more proactive and strategic approach to buying energy. It also fosters power to negotiate more favourable energy contracts, and facilitate better, more informed energy buying decisions.
Our Agenda at Enkumo
At Enkumo, we enable the Energy Procurement teams with enhanced visibility of energy consumption, energy invoices, and risk management in one single place. It records the organisation’s past and current spend—how much, when, and with which suppliers. Our product serves as an intelligent agent that helps guide buying decisions. It draws on a vast array of transaction and contextual data generated in an organisation’s portfolio, and is scattered across sites, countries, commodities, files, all in one platform, as one single source of truth.
We enable our customers with data security as well as enhanced portfolio visibility.
Enkumo aids in aggregating, storing and managing end-to-end energy data, achieving superior clarity and transparency across the portfolio.
Finally, it generates valuable insights out of the entire portfolio with customisable dashboards, advanced chart elements, prebuilt indicators and custom reporting. This data can be automatically shared within the business or with external stakeholders, including different layers of user access.