North American energy utilities are investing billions to create a smart grid to enhance service for retail electric customers. The smart grid, a disruptive technology, will provide utilities and...
The Bigger CIS Picture
Data Mining and Warehousing: Many utilities have no ability to turn raw customer information into significant insights about their business.
and supply volatility in commodity markets, and to provide unprecedented capabilities to more precisely target public energy management programs. It could also help competitive energy service providers in emerging retail markets support efforts to open retail markets more quickly.
Furthermore, data-building management and metering systems can be aggregated and analyzed to spot trends, issues, or problem areas and to identify energy-saving opportunities, which can be posted on secure Web sites for 24/7 access for everyone from executives to maintenance personnel.
Data mining also enables utilities to better meet operational and regulatory reporting needs. Utilities are increasingly required constantly to monitor their information and practices and benchmark their performance against competition. They are expected to analyze existing customer information and apply measurement criteria to improve the scope of the services provided to the customer, improve the cash-collection process, streamline workflow practices, carry out management change processes, and improve customer communication.
Moreover, using data mining, those responsible for customer relationship management quickly can access information about customer consumption, revenue, cost, and service disruptions. As a result, they can gain greater insights into what customer segments are most profitable, the demand profile for each segment, which services and products are being bought by various segments, and the associations among these services/products and consumption patterns.