Internal Financial Agility is Lacking

Technology has evolved, so utilities can deploy new software – and change their underlying business processes – quicker than ever before. One challenge is energy companies continue to budget, fund, and report the same way they have for year and even decades. A new approach may be needed.

Finance processes are typically still tied to projects. The problem is budgets are based on the notion that the energy business proceeds in a linear, stable, predictable pattern. Consequently, new development is locked into a set project plan with established timeframes. Such plans were largely ripped up during the past 12 months.

A New Normal  

Moving forward, uncertainty seems to have become the New Normal. Systems have become more flexible. The influx of renewable sources introduces new variables into energy delivery. As evident in the recent rolling blackouts in Texas, energy companies need to prepare themselves better for such challenges.

Funding such business initiatives has been difficult. Perhaps, energy companies now need to become more innovative and find new financing models. With such potential changes, they may find the funding needed to improve their infrastructure. Keeping their infrastructure operating smoothly will increase revenue as well as customer satisfaction, which may become new ways to justify just investments.

Technology advanced rapidly recently altering traditional business processes. Finance has been one area that has been slow to adopt and in some cases hamstrings innovation. Consequently, utility management may need to find ways to modernize those legacy processes, so the organization operates at peak efficiency.