New horizons

Why digital transformation and optimizing the customer

experience are increasingly essential for the energy
and utilities industry.

Whitepaper

Executive Summary
The energy and utilities industry is in the middle of a hugely
disruptive time. The global pandemic has caused ongoing sup-
ply chain issues which have seen high inflation grip the world,
there are extreme weather events, the recent war in Ukraine,
and customers and regulators demanding cleaner energy and
a stronger focus on sustainability and governance.
This will only increase as the impact of climate change is
increasingly felt1, and prices continue to climb – especially as
everyone looks to minimize their energy use. This includes the
European Union’s emergency gas plan, which aims to reduce
consumption by 15% across member states2 amid fears that
Russia could stop deliveries. Additionally, countries throughout
Europe are turning off or dimming lights at public landmarks
while businesses are being encouraged to do the same.3
All of this is putting the industry under immense pressure to do
its part, which includes reducing its impact on global warming,
maximizing efficiencies, being more sustainable, and providing
a range of affordable and ever-greener alternatives. The ener-
gy industry, in particular, is under scrutiny because it is the
source of three-quarters of greenhouse gas emissions.5
Challenges are coming from every direction. But ultimately, the
one thing that will impact the industry the most in the coming
years is digital transformation.
2
New horizons – www.testbirds.com
Driven by new technologies, from blockchain, artificial intel- Once you’ve read our whitepaper, you’ll see why getting your
ligence, and edge computing, it is set to enable the develop- digital journey right is so essential, and how it can enable you
ment of exponentially more efficient processes and solutions, to better engage with your customers and build digital solu-
the creation of new business models and customer offerings, tions that can deliver a truly positive impact – for your custom-
and help organizations to be more resilient and competitive. ers, your business, and our planet.
They’ll also be better equipped to meet environmental, social,
and governance (ESG) initiatives, and more able to quickly
respond to ever-changing customer expectations.
As with all industries, digital adoption will be transformative
for energy and utilities and will enable them to better tackle
today’s (and tomorrow’s) disruptions. This is what our whitepa-
per discusses.
Why digital transformation and optimizing the custom-
er experience are essential for any business to meet clean
energy and sustainability goals to develop an agile, change
ready competitive advantage
The technologies to focus on,
How to best prepare for the transformation, ensure your dig-
ital solutions are fully optimized, and most especially,
Why the customer must be at the forefront of your digital
strategy.
GEORG HANSBAUER,
CEO & CO-FOUNDER,
TESTBIRDS

The digital transformation –
for growth and value
Digital transformation makes use of digital technologies to
help create new (or modify) a wide range of business pro-
cesses, experiences, and even the culture of an organization.
As noted by IBM, it “uses AI, automation, hybrid cloud and
other digital technologies to leverage data and drive intelli-
gent workflows, faster and smarter decision-making, and re-
al-time response to market disruptions. And ultimately, it
changes customer expectations and creates new business
opportunities.”v
It‘s also being rapidly adopted by multiple industries. A recent
report by IDC stated that global spending on digital transfor-
mation is forecast to reach US$2.8 trillion in 2025.6 It’s clear
why. With a well-thought-out digital strategy, organizations
can become more flexible, more resilient, and more competi-
tive. This was reflected in a 2019 report by Tech-Clarity,
which saw that top performers used digital innovation to
achieve better ‘product innovation capabilities and business
results’ with a 31% revenue improvement over 2 years (those
without new digital strategies only saw 15%). Compared to
their competitors, this enabled them to7:
 et new / improved products to market quickly
G channel solution.
 esign innovative products
D
 eet market cost requirements
M With digital transformation, the benefits to the energy and
3
New horizons – www.testbirds.com
Develop high performance products Supply – predictive maintenance, effective field operations,
Deliver high quality / reliable products comprehensive engineering data management, cybersecu-
rity, plant optimization, digital twins, and asset manage-
For energy and utilities, digital transformation can enable this, ment
and many other opportunities, across the entire value chain
– from generation (supply) to transmission and distribution Network – outage management, network performance
(network), and ultimately commercial and residential retail. monitoring, smart and digital grids, smart meters, crew pro-
ductivity analytics, supply and demand management, and
In their extensive look at ‘value realization from digital trans- troubleshooting and maintenance
formation in utilities’, Infosys listed multiple potential opportu-
nities that ‘industry 4.0’ offered along this value chain, which Retail – dynamic pricing and product development, cloud
included8: computing, smart homes, customer behavior and pattern
identification, seamless customer experience, intelligent
apps based on user behavior
Each section of the chain is enabled by its own specific tech-
nologies. Supply makes use of mobile, eCommerce, and active
defense (using deception technology to detect attackers).
Network utilizes the cloud, big data analytics, and the Inter-
net of Things. Retail turns to social media and other digital
channels, with a mix of cloud and connected devices. When
connected, they can make a strong, yet highly flexible, omni-
utilities industry are immense.
 New horizons – www.testbirds.com

The drivers of change
None of this would have been possible without several fun-
damental advances in technology and changing customer ex-
pectations over the past couple of decades.
Technology has ushered in a world of 24/7 always-on and
connected convenience. The internet, email, the cloud, mo-
bile devices, social media, the Internet of Things, and artifi-
cial intelligence. All provide new ways to streamline and
personalize offerings, conduct business, and send and re-
ceive information. Importantly, it has enabled businesses to
disrupt the status quo (Netflix, Amazon, Uber, and Airbnb are
often the most talked about9 in this regard, with each revolu-
tionizing their specific industry).
For energy and utilities, several trends will dominate in the
coming years:
Connected everything
The Internet of Things (IoT), smart grids, smart meters, smart
cities, smart cars, and smart homes. Everything is becoming
connected, and this trend shows no signs of slowing down.
The global ‘IoT in energy’ market alone is expected to grow to
US$35.2 billion by 202510. By collecting and transmitting data
via the internet, smart devices blend the digital and physical
worlds and enable the generation of vast amounts of data to
enable continuous monitoring in real-time, optimize efficien-
cies and asset maintenance, automate processes, identify
malfunctions, and much more.
Woods Institute for the Environment, which noted over 65 ex-
isting and emerging blockchain use-cases for the environ-
ment13. This included optimized distributed grid management
to tackle climate change, cryptocurrency-enabled smart me-
ters for water efficiency, decentralized mini-grids for weather
and disaster resilience, and many more.
Big data analytics
Smart digital technology (from IoT to social media) collects
vast amounts of data and often from multiple sources. As
noted in an HLCTech article, “a utility company, using smart
meters and power, can collect around three petabytes of data

Blockchain
An immutable, distributed, decentralized, and permanent led-
ger, blockchain is all about providing complete transaction
transparency. This is seeing the development of peer-to-peer
energy trading platforms11, secure records of electricity gen-
eration and consumption12, improving data management, and
dozens of other potential uses – as outlined in a joint report
from the World Economic Forum, PwC, and the Stanford

4

every 15 minutes for a year for about one million house-
holds.”14 That would be the real-world equivalent of down-
loading 33,000 4K movies, every 15 minutes, for a year.15 By
analyzing this data it is possible to accurately anticipate and
manage energy needs, detect and prevent power outages,
conduct preventative asset management, boost operational
efficiencies, simulate aquifer behavior, identify water contam-
ination, and more.16 Big data analytics is all about quickly and
efficiently turning data into insights. Its potential is limitless.
New horizons – www.testbirds.com
AI and intelligent automation
Big data is also being integrated into artificial intelligence to
help make fast, accurate decisions in areas such as customer
service and support, regulatory compliance, and to increase
operational efficiencies while reducing expenses. As men-
tioned by IBM, “When combined with automation, AI can in-
fuse intelligence and real-time decision-making into any
workflow. It can drive everything from innovative smart prod-
ucts, from increasingly personalized customer and user expe-
riences to optimized workflows for supply chain management,
change management and more.”xvii
The coronavirus pandemic
If there was any one momentous change that has impacted
digital adoption, it has been the ongoing impact of COVID.
Lockdowns, remote working, and social distancing have seen
all manner of organizations embrace digital solutions and
have seen enterprise digital transformation, and e-commerce,
accelerate by three to five years.18,19
But it isn’t just technology that is driving change. It’s the cus-
tomer.

Power to the consumer
The customer-driven transformation
What people expect, whether customers, partners, or employ-
ees, has become arguably one of the biggest catalysts for dig-
ital transformation. As Salesforce said, “Digital transformation
begins and ends with the customer.”20
Being customer-centric is essential if you want to satisfy cus-
tomers, reduce churn, and build loyalty and advocacy. That
means every business decision must place the customer front
and center. A recent Harvard Business School Survey21 asked
respondents to identify their organizations’ top two areas of
focus in digital transformation. Customer experience came first
with 23% and technology infrastructure second at 17% (the
remainder were process efficiency, data management, com-
pany culture, and employee experience).
Getting it right means not only deeply understanding the cus-
tomer’s needs and expectations but providing fast, personal-
ized solutions (or services) that give them more choices. Peo-
ple want to feel their needs are heard and understood.
They also want higher engagement and more control, as was
discussed in Deloitte’s US Power Utilities Outlook 201922
report: “Utilities are listening, and many are beginning to
respond to what customers are saying by developing apps to
6
give customers more control over energy usage; to manage
energy use from their smartphones (heating/cooling, lighting,
window blinds); to shop online for rooftop solar installations; to
view monthly bills and monitor energy use in real-time; to
receive alerts if bills are higher than normal; or to receive out-
age alerts with estimates of restoration time, crew arrival time,
and more.”
This is all about creating digital satisfaction. Between 2018 and
2020, utilities that maintained or improved that alone saw
overall customer satisfaction rise by an average of 2 percent,
while those who saw digital satisfaction fall, saw an overall
decline of 1 percent.23
As smart grids and sustainable initiatives grow and consumers
become increasingly focused on managing their energy and
water use, the need for more open and transparent communi-
New horizons – www.testbirds.com
cation is as essential as providing the necessary tools that
empower them. However, as seen in a J.D. Power 2022 US
Utility Digital Experience Study, many utilities continue to offer
outdated websites and low adoption of mobile apps – and that
one-third of large utilities still do not offer an app.24
As industries, businesses, cities, and consumers strive to
become net-zero, there will be an ever-growing need for
energy and utilities to partner with everyone to meet renew-
able energy goals, improve overall resilience and reliability, and
meet their own ESG goals. That means utilizing the right digital
solutions to better engage, empower, and provide highly per-
sonalized experiences for their customers at every step of
their journey with you.
Digital transformation is the answer. The question is how to do
it right.
 New horizons – www.testbirds.com

Developing the
digital strategy
Eine A successful digital transformation requires a clear cus-
tomer focus alongside a data-driven mindset that places high
importance on agility and being able to adapt to changing con-
ditions – whether from the customer, competitors, or any other
external factor.
In a 2020 Deloitte Insights survey, the benefits arising from
digital transformation, “…go well beyond, the bottom line. Many
of these benefits, such as improved product quality and cus-
tomer satisfaction, contribute to better financial performance.
Others, such as reducing environmental impact and increasing
workforce diversity, are increasingly seen as part of compa-
nies’ broader social responsibility.”25
Before starting on such a transformation, however, it is essen-
tial to establish realistic business expectations. A BCG report26
highlighted that 70% of digital transformation efforts fall short
of their business expectations, ‘often with profound conse-
quences’.
But with a well-thought-out strategy, you can maximize your
efforts and place yourself ahead of the competition.
Top steps to energize your digital transformation
One essential element throughout the following steps is the
need for consistency. Everything must be calculated, mea-
sured, tested, and revisited.
Know where you want to go
As with any major, long-term business decision, it’s imperative
to have a clear vision of what you want your digital transfor-
mation to achieve while ensuring it is supported by specific
and measurable business outcomes. Ideally, it will also intri-
cately link to your overall business strategy.
Importantly, it is also essential to take a detailed look at the
level of digital transformation you want to achieve and what
changes are required. If you only want to digitize some data,
your strategy will be vastly different to whether you want to
digitize processes and platforms, enter new markets, develop
new products, or create new business models.
Your vision’s roadmap must then include all elements, from use
cases, technology, people, and your organization’s capabilities.
It must also clearly define the actions required to progress
your digital adoption and revisit or create new key perfor-
mance indicators (KPIs).
In many ways, this is the ideal of what you want your business
to be, its purpose, and what it provides to its customers.

What is the experience you want to create? What are the steps
you need to take to realize that vision? What customer needs
do you want to meet? What digital solutions do you intend to
develop to address their needs? To do this, what needs to be
improved? Is your budget realistic?

7

Be agile and change-ready from the top down
This means leading with an agile mindset and readily commu-
nicating the importance of the transformation. Ultimately, the
why, how, who, and overall alignment of what needs to be
done, are developed from the top.
All factors are then aligned with key executives and middle
management. Everyone should be on the same page and
believe that such a transformation (no matter how big) is
required. Everything can then be condensed into a ‘change
story’, which is used to communicate with all employees why
the change is necessary, where the company is moving, and
why it is important.
Only then can this be driven throughout the entire organiza-
tion.
By being agile, all involved can better adjust priorities and adapt
how the business is run as the business transforms. An import-
ant consideration can be the appointment of specific roles to
drive and implement the digital transformation strategy.
8
Invest in the right team, technology, and training
It can be easy to underestimate the difficulties involved in a
digital transformation, especially when it comes to the team,
the solutions you use, and how much training (for all) is
required.
Putting together the right team, with the right technology, and
ensuring ongoing training is essential when it comes to a suc-
cessful transformation. From tech experts, data specialists,
and process leaders, all must be able to communicate and
work well together – while being led by someone passionate
about bringing change.
This is usually a CIO or CTO role, though it can be more spe-
cific, such as a Chief Digital Officer. The role is essential, as
pointed out by a McKinsey survey, which showed that less
New horizons – www.testbirds.com
than one-third of respondents had a chief digital officer to
support their transformations, however, those that did were 1.6
times more likely to report a successful transformation.27 But, it
should be noted that only just over 40 percent28 of companies
report they have a dedicated digital transformation team in
place.
Some key roles can include:
The visionary (change leader), the planner, the financial guru,
the analyst, the architect, the UX/UI expert, and even the
‘Critic’ – someone who consistently asks the important whys
and what ifs.
All of whom must, to varying degrees, work with the scalable
and fit-for-purpose technologies that best support their trans-
formation use case. This requires taking a close look at the
technologies, platforms, and software that are currently being
used to not only see what may need updating, but to identify
any gaps that can be filled with newer, more flexible, and scal-
able solutions.
Can they adapt to changing business needs? Are they agile,
yet robust, enough for frequent updates? Do they deliver true
value? How well do they work, and how easy are they to test,
within your DevOps29 environment?

And importantly, is everyone up to speed with the new tech-
nologies and processes? To achieve the desired outcomes,
everyone must be trained, reskilled, and upskilled on the digital
tools they will increasingly encounter in their day-to-day work
(alongside new policies and workflows). Comprehensive train-
ing can help develop engaged, confident, and empowered
employees who are more able (and willing) to support your
digital transformation and work in new ways.
No transformation, or product development, is done in isola-
tion. Especially when it will ultimately impact and affect every-
one. Without a strong focus on finding the right talent, using
the right tools, and ensuring everyone are skilled up, enthusi-
astic, and ready to go, any digital transformation will struggle
to succeed. As it also will if you don’t track your transformation
and test at every step of the way.
Monitor your progress and test, test, and test again
Organizations that monitor their transformation with extensive
metrics, see more success. Many, without proper monitoring,
may see temporary improvements but cannot sustain them in
the long term.30
Importantly, the KPIs that are used must be flexible enough to
shift with changing company needs, market conditions, and
other disruptions. Selecting the right KPIs, and the optimal
9
number of them, isn’t always straightforward because the right
ones depend on a variety of factors, from your digital maturity,
budget, and objectives.
They must be data-driven, highly relevant to your goals, spe-
cific to your digital transformation team, and be able to clearly
determine whether your new digital solution or process is pro-
viding the results you want – from customer experience and
satisfaction to operational efficiency, and much more.
The best metrics, according to Gartner31:
1. 
Have a clearly defined and defensible causal relationship
to a business outcome
2. 
Work as a leading, not lagging, indicator
3. 
Address a specific, defined audience
4. 
Can be understood by a non-IT audience
5. 
Drive action when they change from green to yellow to red.
Additionally, if you’re using financial KPIs, can you quantify the
return on investment of your digital transformation invest-
ments? Are they, overall, actually achievable? And importantly,
can outcomes be regularly tracked at all levels?
Ensuring this last point is why ongoing and regular testing is
essential. If you are using, for example, customer-focused
New horizons – www.testbirds.com
metrics, such as Net Promoter Score (how likely they are to
recommend your solutions to others), Customer Satisfaction
Score (how satisfied are they with a product or service), and
Customer Churn Rate (those who stop using your solution),
every change to improve digital performance, retention, and
the experience, must be re-tested.
Are bugs negatively impacting performance? Exploratory Bug
Testing can catch bugs in hard-to-find places.
Are customers struggling with your smart meter’s app? Usabil-
ity and UX Testing can help you meet their expectations.
This is no different when focusing on employee metrics. From
Employee Engagement to Workforce Productivity, each KPI
must look at how the transformation is impacting their produc-
tivity and morale. With Customer Journey Testing, you can
comprehensibly look at every aspect of your solution at every
touchpoint to see what works and what doesn’t.
Getting it 100% right, however, means taking your solutions out
of the lab and using real people to test in real-world situations.
Only then can you be certain it’s user-friendly, reliable, and
works on any device or operating system.
Your KPIs help you to see if your digital transformation is deliv-
ering value, but it is testing that helps ensure it does.

It’s a digital world after all
The energy and utilities industry is quickly joining other indus-
tries in fully embracing the digital world. Having reliable and
flexible digital tools and solutions, the right digitally-savvy
people, a change-ready attitude, and a customer-first
approach, all provide an increasingly competitive advantage.
People now want solutions that give them convenient and
user-friendly control over their energy and water usage, and
that are delivered by organizations striving to meet environ-
mental and sustainability goals. Those who can deliver such
solutions will quickly outpace those who cannot. This is why
digital transformation is essential.
Getting it right, however, is no easy task. But there are some
areas to focus on that can help boost your chances. In their
report on Unlocking Success in Digital Transformation32, McK-
insey listed 21 keys to success. The top 10 included:
1. 
Implement digital tools to make information more accessi-
ble across the organization.
2. 
Engage initiative leaders (leaders of either digital or non-
digital initiatives that are part of the transformation) to
support the transformation.
3. 
Modify standard operating procedures to include new dig-
ital technologies.
10
4. 
Establish a clear change story (description of and case for
the changes being made) for the digital transformation.
5. 
Add one or more people who are familiar or very familiar
with digital technologies to the top team.
6. 
Leaders engaged in transformation-specific roles encour-
age employees to challenge old ways of working (pro-
cesses and procedures).
7. 
Senior managers encourage employees to challenge old
ways of working (processes and procedures).
8. 
Redefine individuals’ roles and responsibilities so they
align with the transformation’s goals.
New horizons – www.testbirds.com
9. 
Provide employees with opportunities to generate ideas of
where digitization might support the business.
10. 
Establish one or more practices related to new ways of
working (such as continuous learning, open physical and
virtual work environments, and role mobility).
Embracing new horizons. Building the right team who wel-
comes change. Using the right technologies and KPIs. All must
combine seamlessly and proactively to push transformation
throughout the business and into every digital solution devel-
oped for your customers.
But you simply cannot ignore comprehensive and ongoing
testing to optimize your offerings.
Transformation isn’t a one-step process. It’s continual. When
every change can improve or set back everything, you must be
ready for every contingency. Testing is the answer to a suc-
cessful and continual transformation.
 New horizons – www.testbirds.com

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11
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