Business Strategy: Utility IT Budget Strategy for 2016 Takes on Transformation
This IDC Energy Insights report provides the utility IT budget strategy for 2016 and an analysis of where utilities have been allocating their IT spend and where they intend to focus their budget going forward. To give clarity to utilities' IT strategies, we discuss key areas and initiatives where CIOs are putting their focus and provide some industry and business context to explain what these priorities mean. This research draws on data from IDC's 2015 Vertical IT and Communications Survey as well as from conversations with utility executives and CIOs and other industry parties. "Utilities are having to adapt their IT spend priorities to a changing set of industry dynamics and disruptions. As the pace of disruption in the industry accelerates and becomes closer to reality, utilities need to make the strategic investments in IT that will equip them to deal with new industry realities. Utilities need to respond to evolving customer expectations, greater competition in the industry, and cost and revenue pressures," said Robert Eastman, research manager, Utility IT Strategies. "Utilities will increasingly see opportunities to react to industry disruptions or anticipate and respond to what they see coming. This presents CIOs with the opportunity to lead the effort with more attention to upgrading legacy systems and investing in the 3rd Platform technologies (analytics, mobile, cloud, and social) that help them deliver more capabilities and services to customers."