IT trends for 2014 for utilities and energy sectors by IDC

Market research agency IDC has shared IT trends for 2014 for manufacturing and energy sectors.

IT trends for utilities sector for 2014

IDC says utilities will hunt for flexibility and innovation in their operations and business models.

At high impact, microgrids will force business model change. At minimum, service opportunities will require it and distribution adaptation.

CIOs of energy sector will devote more time and attention to working closely with line of business executives on cybersecurity, enlarging their scope of action.

Utility CIOs’ role will evolve, driven by IT and operational technologies convergence.

Oil-and-gas

Eroding utility revenues and the increase of capital and operating costs will force utilities to develop analytics strategies.

Adaptive utilities will embrace dynamic resiliency to survive the ecosystem changes.

Utilities will need to seek new paths for data management to propel smart grid innovation.

Utilities’ multi-channel customer management will call for platform and architecture investments.

Gamification will gain traction in utilities to create consumer engagement, loyalty, and trust.

Global utilities IT spending will surpass $59 billion in 2014.

Roberta Bigliani, associate vice president and Head of EMEA, IDC Energy Insights, said that CIOs of utilities will invest in analytics, mobility, cloud, social media, and cybersecurity, while CIOs will adopt alternative sourcing models to enable business agility and reduce IT investments. Leadership and governance of OT and IT integration will be crucial to avoid undermining innovation.

IT trends for oil and gas sector

With the change in the global energy supply chain, oil and gas companies will put more focus on resiliency.

IT security will remain the CIO’s top concern, with a growing focus on process control security.

CIOs will concentrate on innovation, analytics, and sourcing to keep the attention of business.

Drilling risk mitigation and production optimization will drive further adoption of Big Data and analytics, new models for machine-to-machine connectivity, and field mobility.

Safety and accountability will shape the relationship between owners and service companies.

The concept of smart pipeline will start to gain significant momentum in most regional markets.

Operational design moves to 3D.

Asset integrity will take the spotlight in asset life-cycle management.

Cloud will see an uptick in adoption, mainly for quick deployment and flexibility.

IT spending in oil and gas will increase from $37.6 billion in 2011 to $49.4 billion in 2016.

Jill Feblowitz, vice president, IDC Energy Insights, suggests that oil and gas companies need to strive for operational resiliency, deliver productivity, enhance product, process and people reliability, and facilitate superior resource performance.

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