Scaling a Digital Utility Concept: Innovating the Future of Water Management

June 16, 2023

The water utility industry is facing numerous challenges, from rising customer expectations to regulatory changes and water scarcity concerns. To address these challenges, many utilities are turning to digital transformation.

In this article, we will explore the concept of a digital utility, its value proposition and how it can be scaled to meet the challenges of the water utility industry.


Scaling A Digital Utility Concept

Scaling a digital utility concept requires a shift in the mindset and culture of the water utility industry. To achieve this, utility companies need to prioritize simplifying their business processes in line with customer needs and regulatory requirements. By doing so, they can reduce complexity, streamline operations and increase agility. This will enable them to respond more quickly to changing market conditions and customer demands and to ability innovate more rapidly.

Modernizing the business architecture, technology architecture and environment are critical aspects of scaling a digital utility concept. The traditional IT architecture of utility companies is often complex, siloed and built around legacy systems that are not designed for the digital age. Modernizing this architecture requires investing in new technologies such as cloud computing, data analytics and the Internet of Things (IoT).

Convergence IT (Information Technology) and OT (Operational Technology) remain two distinct disciplines in the water utility industry. In the past, these two areas operated independently of each other, but with the rise of digital transformation, the convergence of IT and OT has become increasingly important.

The integration of IT and OT can bring several benefits to the water utility industry. It enables utilities to optimize their operations, enhance asset management and improve customer service. By integrating data from different sources, utilities can gain a more holistic view of their operations, enabling them to identify issues and make decisions faster. They can also use real-time data to optimize asset performance, reducing downtime and maintenance costs.

However, the convergence of IT and OT also presents challenges, particularly when it comes to cybersecurity. OT systems are often highly specialized and operate on proprietary protocols. The integration of IT and OT can also result in complex and interdependent systems, which can be difficult to manage and maintain.

To address these challenges, water utilities need to adopt a holistic approach to IT/OT convergence. They need to invest in technologies that enable interoperability and standardization, such as the Industrial Internet of Things (IIoT) and open protocols. They also need to establish clear governance structures and processes that enable collaboration and information sharing between IT and OT teams.

Another important aspect of IT/OT convergence is cybersecurity. Water utilities need to develop robust cybersecurity strategies that cover both IT and OT systems. Digital utilities are highly vulnerable to cyberattacks, which can result in downtime, data breaches and other serious consequences. To protect their assets and customers, utility companies must invest in robust cybersecurity measures.

To achieve scalability, it is crucial for the water industry to have a strong leader who can effectively marshal resources and ensure direct visibility to the CEO and executive team. This leader should have a clear understanding of the industry’s evolving landscape and possess the necessary skills and experience to navigate the changing environment.

However, getting such a leader on board can be challenging. Many senior leaders in the industry have spent their entire careers in a more predictable environment and may not fully understand the need for change. Therefore, it is essential to effectively communicate the benefits of IT/OT convergence and other transformative initiatives to these leaders.

In conclusion, digital transformation has the potential to revolutionize the way utilities operate, bringing increased efficiency, cost savings and improved customer experiences. The benefits of digitalization are clear, and water utilities need to embrace this change in order to remain competitive and ensure sustainable operations for years to come. However, the journey toward digitalization is not without its challenges, and utilities must be prepared to overcome these obstacles in order to realize the full potential of digital transformation.


Key Actions

Develop a comprehensive digital strategy: Water utilities need to develop a comprehensive digital strategy that outlines their goals, priorities and timelines for implementing digital solutions. This strategy should be aligned with the overall business strategy and should involve all stakeholders, including customers, employees and senior leaders.

Invest in digital infrastructure: Water utilities need to invest in digital infrastructure, including hardware, software and networks, in order to support digital transformation. This may require significant investment, but the long-term benefits of improved efficiency and reduced costs make it a worthwhile investment.

Build a culture of innovation: Water utilities need to build a culture of innovation that encourages experimentation, risk-taking and continuous improvement. This requires strong leadership and a willingness to embrace change, as well as a focus on collaboration and communication across all levels of the organization.



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Water Utility ChallengesDigital Utility LeversLentic® Enablers
Water scarcity from climate change and population growthReduce water wastage by identifying network leaksEnable an integrated ecosystem that leverages machine intelligence
Meet and exceed environmental regulatory requirementsIncrease digital monitoring of water value chain to improve water quality and reduce environmental impactEnhance data quality and quantity to support regulatory reporting and transparency


Water Utility Challenges Digital Utility Levers Lentic® Enablers
Rising customer expectations Provide customers with relevant on-demand insights through preferred channels, enabling better service experiences Built-in domain knowledge delivers on-demand customisable insights to customers
Affordability Reduce water services costs through innovative demand management and enhanced operational efficiency Support automation of key business processes to enhance customer service delivery and reduce demand


Water Utility Challenges Digital Utility Levers Lentic® Enablers
Optimise asset life and reduce operating costs Visualise performance and manage asset lifecycle in real time while reducing the need to fund additional infrastructure Domain rules applied to predict unknown disruption across assets, by providing high volume of data
Reduce non-revenue water losses Automate identification of network leaks to enable rapid and cost-effective fault resolution Enable integration of field device data across enterprise systems to manage utility response to network leaks and faults
Protect asset security Provide a safe and resilient operating environment reducing cyber risks to critical infrastructure Security policy and controls are in place to support continuous monitoring efforts in line with ISO0227001