Source : 451 Research and Eaton custom survey
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Copyright © 2022 S & P Global Market Intelligence .
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Source : 451 Research and Eaton custom survey
© 2022 Eaton All Rights Reserved Eaton is a registered trademark . latest product and support information . All other trademarks are property of their respective owners .
Copyright © 2022 S & P Global Market Intelligence .
The content of this artifact is for educational purposes only . 451 Research , S & P Global Market Intelligence does not endorse any companies , technologies , products , services , or solutions . Permission to reprint or distribute any content from this artifact requires the prior written approval of S & P Global Market Intelligence .
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Eaton study finds gap between Digital Transformation and energy transition efforts
ntelligent power management company , Eaton , has announced new research on the relevance of the energy transition in Digital Transformation planning for power-critical businesses . Commissioned by Eaton , this S & P Global Market Intelligence report – The Intersection of Digital Transformation and the Energy Transition – highlights that although 77 % of companies surveyed expect to transition away from their current power sources , only half are currently executing the digital strategies needed to navigate this shift . In addition , less than a third of companies track key sustainability and energy intelligence metrics and even fewer ( 17 %) have digitally-enabled legacy systems .
I
How digital transformation enables the energy transition
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“ We identified a major gap in how businesses are applying digitalisation to realise decarbonisation goals and this research is a wakeup call , shedding light on the opportunities for businesses to focus investments and make a bigger impact ,” said Aravind Yarlagadda , Executive Vice President and Chief Digital Officer at Eaton . “ Businesses need to move far faster on Digital Transformation . The good news is that the time for action is now , and tools like our Brightlayer digital foundation help
For enterprises engaged in digital transformation , focusing exclusively on process- or people-centric change without considering the major transitions occurring in energy and power is both risky and sub-optimal , leaving significant cost savings and business transformation gains on the table .
Based on a May 2022 survey of 1,001 enterprises , fielded by 451 Research , part of S & P Global Market Intelligence and Eaton .
1While digital change has become a priority
in boardrooms , it is an evolution still in its infancy requiring c-level buy-in , up-skilling of digital capabilities and the adoption of enabling digital technologies .
Renewables like solar and wind are central to that transition .
Digital transformation is a business priority , but still in the early stages
The energy transition is coming – if not
2 already here
77
More than
%
of enterprises anticipate changing their energy sources , and more than a quarter have plans underway .
Today :
25 % of top energy sources are renewables
4
5
Today , enterprises are most likely to measure :
Fewer enterprises track advanced power metrics :
Future :
53 % of top energy sources are renewables
What gets measured gets improved
24 %
ESG scoring
Greenhouse gas emissions
34 % 33 %
38 %
Electrical safety
Power usage effectiveness
Carbon offsets
Indicates energy transition and power optimizationrelated priorities
51 %
Total energy consumption of enterprises are not yet executing a digital transformation strategy
say their digital skills are not strong and need to improve
have adopted ‘ some ’ digital technologies , but not broadly across their organization
Operational optimization + Energy transition
3 � Digital transformation
Operational and business process goals tend to lead digital transformation efforts , but increasingly digital-savvy enterprises are embracing energy transition and power optimization aspirations as well .
Optimizing business processes and operations
Reducing risk ( compliance , safety , data protection , etc .)
Improving supply chain / trade network capabilities
Baseline KPIs ( simple )
Advanced KPIs ( digitally-enabled )
50 % 50 % 47 %
Addressing energy & power efficiency / transition goals
44 %
Increasing overall revenue / enhancing sales
Supporting ESG programs
Better capturing / understanding customer requirements
Saving money / cutting costs
Developing new or improving existing products or services ( new sources of revenue )
Enabling post-Covid recovery and return-to-work
To manage the energy transition and make power intelligence a critical enabler of digital transformation , enterprises must elevate the types of metrics they track and optimize .
A new digital toolkit is central to the energy transition and digital transformation journey
44 % 43 % 41 % 40 % 38 % 34 %
Digital leaders are aggressively adopting new technologies . But that ’ s just the start . Legacy hardware is not being digitalized fast enough , while insight-delivering energy / power management platforms are deployed by just a third of enterprises , leaving significant and much-needed room for growth .
Digital technology adoption
73 % Cybersecurity
71 % Cloud / as-a-Service
42 %
Energy / power
Edge digital twin 33 % management platforms computing 17 %
Digital thread /
IoT sensors and platforms
* We make what matters work . *
As the world gets more connected and more digital , the demand for energy and power grows . Our Brightlayer digital foundation helps you capture data from your assets and capitalize on insights to drive operational value . We call that intelligent power management . Our market-oriented software suites focus on unique industry challenges and needs , to help organizations realize a more safe , reliable , efficient and sustainable future . Because that ’ s what really matters . And we ’ re here to make sure it works .
To learn more , visit Eaton . com / Brightlayer
27 %
Artificial intelligence / machine learning 11 %
Digital essential Must-have mainstream Energy / power-focused On the rise Niche today …
Connected / digitally-enabled legacy hardware / machine systems
Extended reality ( XR ) – metaverse , ie . augmented reality ( AR )/ virtual reality ( VR )
73 % Cybersecurity
A new digital toolkit is central to the energy transition and digital transformation journey
Digital leaders are aggressively adopting new technologies . But that ’ s just the start . Legacy hardware is not being digitalized fast enough , while insight-delivering energy / power management platforms are deployed by just a third of enterprises , leaving significant and much-needed room for growth .
Digital technology adoption
71 % Cloud / as-a-Service
42 %
Energy / power
Edge digital twin 33 % management platforms computing 17 %
Digital thread /
IoT sensors and platforms
Digital essential Must-have mainstream Energy / power-focused On the rise Niche today …
* We make what matters work . *
As the world gets more connected and more digital , the demand for energy and power grows . Our Brightlayer digital foundation helps you capture data from your assets and capitalize on insights to drive operational value . We call that intelligent power management . Our market-oriented software suites focus on unique industry challenges and needs , to help organizations realize a more safe , reliable , efficient and sustainable future . Because that ’ s what really matters . And we ’ re here to make sure it works .
To learn more , visit Eaton . com / Brightlayer
27 %
Artificial intelligence / machine learning 11 %
Connected / digitally-enabled legacy hardware / machine systems
Extended reality ( XR ) – metaverse , ie . augmented reality ( AR )/ virtual reality ( VR )
businesses gain deeper energy insights that are essential to evaluate worthwhile investments . Our industry-specific software suites are already helping customers meet these challenges .”
The study included 1,001 respondents who are involved in Digital Transformation efforts across four power-critical business sectors in North America , Europe , the Middle East and Africa , including : buildings , data centres , industrials and utilities .
DIGITAL TRANSFORMATION . THE GOOD NEWS IS THAT THE TIME FOR ACTION IS NOW .
“ Until now , enterprise transformation projects have focused primarily on optimising business processes . The coming energy transition will impact digital best practices and processes and will prove an important competitive differentiator for firms that are first to embrace that approach ,” according to Rich Karpinski , Senior Analyst , 451 Research , part of S & P Global Market Intelligence . �
www . intelligentdatacentres . com
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