Why digitalisation falls short in the utility industry – and what actually works
Digitalisation sits high on the agenda across the utility industry.
And yet, many organisations are asking the same questions:
why aren’t we seeing the impact we invested in?
In this article, we’ll unpack why that is, and what you can actually do about it.
Where does the industry actually stand on digitalisation?
It’s rarely the technology that’s the problem
According to this year’s State of Utility report, 31% of utility companies say digitalisation is their top investment priority. At the same time, almost as many point to digitalisation as their biggest challenge over the next three years. It sounds like a paradox, until you look at where things tend to get stuck. Only 13% cite technical issues as a barrier. So it’s not the systems that are failing. It’s everything around them.
The report highlights three recurring challenges:
- 34% say they lack the time and resources
- 18% report a lack of the right skills
- 23% point to budget constraints
The pattern is clear: it’s not the technology slowing things down, it’s the organisation. In practice, digital transformation is an organisational project that happens to involve technology, not the other way around.
Explore the full report
Download the full State of Utility report for complete data, insights and recommendations.
What’s holding things back
We see this all the time: leadership signals that digitalisation matters, significant investments are made – and then not much happens. Not because the will isn’t there, but because the right conditions were never put in place. In most cases, it comes down to these three recurring conditions.
Unclear ownership
This often creates friction in customer journeys, data quality and the follow-up of new ways of working. Without clear responsibility, decisions slow down and initiatives lose momentum.
Example: An energy company rolled out a new CRM system. Six months later, half of the customer service team were still using the old tool. No one had a clear mandate to drive the transition.
What to do: Assign a process owner with a clear mandate and a structured follow-up plan before implementation begins.
Systems that don’t talk to each other
Customer, billing and network data sit in separate systems that don’t connect properly, leading to duplication, inconsistent experiences and incomplete decisions.
Example: A customer service agent at a water utility had to switch between three systems to answer a simple question about a customer’s contract, usage and latest case. The integrations were technically possible, but no one had taken ownership of making them happen.
What to do: Identify which systems need to work together and prioritise integrations based on the most common day-to-day workflows.
Change that happens “when there’s time”
Digital initiatives often sit alongside daily operations, and without clear priority they slowly lose momentum, no matter how good the idea is.
Example: A fibre company saw a surge in customer service enquiries every autumn from people calling to pre-register moves and installations. The issue was well known, and the solution was simple: a basic pre-registration form.
What to do: Treat every improvement initiative as a proper project, with a named owner and a clear place in the business plan. Even small improvements need dedicated time to actually happen.
An example from real life
One electricity network operator set a clear goal: 90% of all customer cases should be resolved within 24 hours. Instead of starting with system selection, they asked a different question: what behaviours are required to reach that goal?
That led to insights about what kind of system they needed, but also to clearer role definitions, measurable targets linked to daily CRM usage, and a new follow-up process.
By the time they selected a system, it was designed to support the behaviours they wanted to see rather than forcing the organisation to adapt to the system.
The technology is ready. Are you?
The utility sector is facing major change, from new regulations and stricter sustainability requirements to significant infrastructure investments and rising customer expectations.
The question isn’t only: what systems should we invest in? It’s: have we created the conditions to make them work?
The key takeaway
Digitalisation is often treated as a system rollout. But success depends on something else entirely. New systems only create value when leadership ensures the right conditions are in place. That means clear expectations, the right support, and a culture that actually enables new ways of working to stick.
Because systems don’t change organisations on their own. Culture does. And culture is shaped by what leadership prioritises, supports and follows up in everyday work.
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