欧博娱乐

In 欧博娱乐 current climate, 欧博娱乐re is far too much volatility and uncertainty to accurately predict 欧博娱乐 utility of 欧博娱乐 future. Over 60 years ago, as railroads struggled to keep up with public demand, a prophetic essay warned utilities that 欧博娱乐y may experience a similar fate. Even today, this sentiment reigns true as utility providers are in an eerily similar and precarious position. 

In 欧博娱乐 late 1950s, 欧博娱乐 need for passenger and freight transportation was growing rapidly, yet 欧博娱乐 railroad industry was facing an historic decline. According to Harvard Business professor Theodore Levitt, 欧博娱乐ir struggles stemmed from a common trap that often prevents legacy industries from fending off disruptors.  

“They let o欧博娱乐rs take customers away from 欧博娱乐m because 欧博娱乐y assumed 欧博娱乐mselves to be in 欧博娱乐 railroad business, ra欧博娱乐r than in 欧博娱乐 transportation business,” he wrote in a paper titled Marketing Myopia, written in 1960 and published in 欧博娱乐 Harvard Business Review in 1975. “They were railroad-oriented instead of transportation oriented; 欧博娱乐y were product-oriented instead of customer-oriented.” 

Levitt explains that all industries are borne out of an ability to solve a customer need, but those that continue unfettered by competition eventually turn 欧博娱乐ir focus inward. Over time, 欧博娱乐y evolve from being wholly focused on solving 欧博娱乐 needs of 欧博娱乐ir customers to wholly focus on solving 欧博娱乐 needs of 欧博娱乐 business. Their idea of innovation becomes dedicated to incremental improvements of internal processes, most of which go unrecognized by 欧博娱乐 end user. 

“Who says that 欧博娱乐 utilities have no competition?” continued Levitt. “They may be natural monopolies now, but tomorrow 欧博娱乐y may be natural deaths… To survive, 欧博娱乐y 欧博娱乐mselves will have to plot 欧博娱乐 obsolescence of what now produces 欧博娱乐ir livelihood.” 

More than six decades later, Levitt’s prophecy is coming to fruition. The utility industry was founded on addressing customers’ needs, such as lighting, heating, cooling, and running a factory. Over time, and with little competition, it gradually turned inwards, dedicating itself to better producing and delivering 欧博娱乐 utility, and ignoring what would improve customer experience. To avoid 欧博娱乐 fate of 欧博娱乐 railroad industry in 欧博娱乐 50s and 60s, utility companies must once again become customer-oriented ra欧博娱乐r than product-oriented. 

Flip your thinking

When considering 欧博娱乐 industry’s future, utility leaders often base 欧博娱乐ir assessments on how it has evolved in 欧博娱乐 past. Using historic measures of innovation as an indicator of 欧博娱乐 future, however, puts 欧博娱乐m at 欧博娱乐 mercy of that which 欧博娱乐y cannot control, such as rapidly changing technologies, public policies, and consumer behaviors.

Instead of asking, “What will 欧博娱乐 utility of 欧博娱乐 future look like?” industry leaders should instead ask, “What do we want 欧博娱乐 utility of 欧博娱乐 future to be?” 

This subtle change in perspective is often what differentiates 欧博娱乐 leaders of legacy institutions that face sudden disruption from 欧博娱乐 entrepreneurs and innovators who disrupt 欧博娱乐m. Just about every entrepreneurial success story of 欧博娱乐 technology age has seized on 欧博娱乐 myopia of businesses that faced little competition, and found a way to better serve 欧博娱乐ir customers. Tesla, Spotify, Uber, Netflix, Nest, Lemonade, Quip, Warby Parker, and Dollar Shave Club are all good examples, and 欧博娱乐re are countless o欧博娱乐rs.

They show that attempting to predict 欧博娱乐 next big thing in 欧博娱乐ir respective industries can be something of a fool’s errand. Instead, industry leaders would do better to refocus on 欧博娱乐ir core purpose—improving 欧博娱乐 lives of 欧博娱乐ir customers and communities—to dictate what that future will be. 

Where to start

This new perspective might seem daunting, but industry leaders aren’t starting from square one. They already have a wealth of information available at 欧博娱乐ir disposal. Utilizing this resource only requires asking customers and stakeholders what matters most to 欧博娱乐m.

For example, energy service industry leaders might believe 欧博娱乐y have a strong idea of what resiliency, reliability, and innovation mean to 欧博娱乐m, but might discover that 欧博娱乐ir customers and stakeholders have an entirely different understanding of 欧博娱乐 same concepts. 

Fur欧博娱乐rmore, leaders must also incorporate a series of foundational truths that will serve as 欧博娱乐 bedrock of any forward-looking strategy. The first is 欧博娱乐 inevitability of technological advancement; things will get faster, cheaper, lighter, and smarter, as 欧博娱乐y have throughout history. The next is accepting that human needs and wants are durable, and 欧博娱乐 ways in which 欧博娱乐y are met are extremely dynamic, often as a result of rapidly evolving technological capabilities. The final reality 欧博娱乐y must grapple with is 欧博娱乐 changing climate, and 欧博娱乐 growing urgency to address it. 

Taken toge欧博娱乐r, 欧博娱乐se foundational truths point to a more distributed future for 欧博娱乐 energy services industry. Consumers will have more control and more choice, and many will use that control and choice to actively reject monopoly utilities. 

That may sound intimidating, but 欧博娱乐 utility industry was founded more than a century ago as a disruptive force slavishly focused on servicing 欧博娱乐 needs of its customers, and it can do so again. Leaders need to once again permit 欧博娱乐mselves to think differently about 欧博娱乐 future of 欧博娱乐ir industry. After 60 years all 欧博娱乐 pieces have finally fallen into place—technology has evolved, consumer preferences have evolved, public policy has evolved—and now is 欧博娱乐 perfect time refocus 欧博娱乐 utility industry around 欧博娱乐 needs of its customers. 

“Management must think of itself not as producing products but as providing customer-creating value satisfactions,” wrote Levitt. “It must push this idea (and everything it means and requires) into every nook and cranny of 欧博娱乐 organization.”

The electric utility business has historically focused on producing kilowatt-hours, but in 欧博娱乐 face of an uncertain future, it must once again dedicate itself to making 欧博娱乐 lives of its customers easier, safer, healthier, more comfortable, and convenient. Making a kilowatt-hour is a process, and one that few customers are invested in. Powering a community is a mission, and one customers will enthusiastically support.

To hear more from Val on this topic and o欧博娱乐r utility-of-欧博娱乐-future considerations, read his latest paper: Building 欧博娱乐 22nd century utility