A rapidly evolving combination of new intelligent networks, information systems and regulations, the smart grid will allow the management of energy in real time and collaboration for energy efficiency. Utilities will migrate from an operational model designed to interact monthly with consumers to one that supports on-demand, immediate, two-way communications.
For utilities, smart grid evolution means that business process re-engineering (BPR) and information systems for grid management must commit to large-scale changes. In this environment, utilities and their information technology organizations face challenges such as:
- Navigating the transition without impacting existing operations,
- Connecting and extending existing information technology systems to provide the increased data and automation required,
- Demonstrating an early return, and
- Avoiding inflexible information technology investments.
