Utilities Case Study

Metering business within a major utility

Re-focusing the strategy...

To deliver enhanced value

The Metering business within a major utility

Currently a 'commodity' based supplier of metering hardware and associated telephony
Lack of marketing information leading to incorrect conclusions on the size of the market
Lack of visibility of customer management and prospective contracts
Downward price pressure in the market
Change in proposed delivery of some products leading to reduce operating margins
New market entrants offering enhanced services - potential to erode current market share
Aspiration to move from being a 'commodity' supplier to a solution based 'value added' service provider
Business at a crossroads – need to evaluate strategic options and select best way forward

Set up and coached Metering management team in strategic thinking and evaluation processes
Carried out a series of strategic workshops to examine:
- External Imperatives:
  Economic developments / Industry developments / Socio-political trends / Competitive trends and strategies / Customer trends and strategies / Regulatory concerns
- Detailed Market Analysis:
  Half-hourly / Non-half-hourly / Energy Consultancy / Energy Services Companies / Customer base / Current share of business / Who should be targeted and why? / Current and future margins
- Internal Capability:
  Core business processes / Organisation structure / Capacity / Skills / Supporting IT
Developed model to identify and evaluate strategic options including:
- Sectors options / Routes to market / Product & service offering / Delivery channels / In-house capacity & capability / Strategic Partnerships / Acquisitions / Financial outcomes
Ensured corporate coherence with other key initiatives
Developed implementation plan
Presented strategic options and recommendations to senior management for endorsement

Agreed strategy approved to:
- Address current delivery requirements
- Position the business for major and sustainable growth
- Enable the move form 'commodity' business to supplier of 'high value' energy services
Strengthened the strategic awareness and thinking amongst Metering management team
Provided a model for ongoing monitoring and evaluation of strategy implementation and outcomes