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Smart cities need smart utilities

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Sustainable energy consumption and ‘green’ energy production at home is becoming a new lifestyle. Today’s hyperconnected consumer expects a reduced environmental footprint while still enjoying seamless services and ease of use, improving their quality of life through fully digitised processes that give them complete control over every aspect of their lives.

According to IDC, 30 billion ‘things’ will be connected by 2020. Everything from cars and appliances to lights and temperature control will be connected in an interoperable network that will give consumers unprecedented control and choice over their energy use. Energy itself is also becoming more sustainable: Bloomberg New Energy Finance predicts that by 2040, 72% of total new power generation capacity investment globally will go to renewable energy, with the falling cost of residential renewable energy disrupting the relationship between utility companies and their customers. This decentralisation is changing consumers into prosumers, who are able to generate energy and manage their usage in sustainable and convenient ways.

However, in Africa the picture looks distinctly different: here, the true empowerment of the energy utility lies with the interplay between consumers, utilities, connected devices and the software that links it all together in a cohesive whole.

Empowering the energy utility and its customers

Historically, the meter has been the centrepiece of the energy utility company’s relationship with its consumer. A contract is set up with the consumer to provide energy, and the meter is read to determine how much energy has been used. The utility company then bills the consumer according to their energy usage. Unless something – a billing query or outage, for example – compels the consumer to contact the utility via a call centre, the bill sent to the consumer is the only touchpoint the utility company would have with them.

However, with the advent of smart metering systems and the rise of powerful technology platforms such as SAP S/4HANA and tailored software solutions such as SAP Predictive Maintenance and Service that incorporate advanced analytics, big data, machine learning and AI, this interaction is evolving in exciting ways.

Energy utilities can now continuously collect and analyse data from smart meters, SCADA systems and sensors to determine and monitor the health of infrastructural assets. This is creating new opportunities to reimagine business processes and business models: while in the past each asset provider had its own system producing its own set of analytics, we are now able to collect all of the data from each asset into a single IoT platform in near-real time. Linking this to advanced predictive analytics capabilities enables utilities to proactively manage key assets within its value chain, driving down maintenance costs and optimising customer satisfaction through the uninterrupted supply of power.

Energy consumers are further empowered by gaining real-time visibility of consumption behaviour, enabling better energy management at a business or household level. In a smart city environment, this also enables benchmarking, which can give energy consumers insight into the energy usage of neighbours as well as at a neighbourhood, city, and potentially national level. When energy consumption levels exceed supply, utilities can better communicate with major consumers of energy and incentivise them to reduce consumption.

Disrupting 100 years of business-as-usual

Not much has changed for utility companies’ business models over the past century. However, there are three major disruptors currently challenging utility companies, namely:

  1. Decentralisation, which is changing where energy is created and how it is consumed. A famous example is Elon Musk’s Solar City, which features renewable solar roofing tiles that generate electricity at the local level.
  2. Deregulation, which is allowing a new breed of disruptive competitor to enter the market with services and devices aimed at consumers, such as the broad range of home energy monitoring and control devices and applications.
  3. Decarbonisation, which is driving the adoption of non-fossil fuel energy sources.

These three disruptors are enabling the rise of the off-grid consumer, typified by businesses and individuals who generate their own energy via renewable sources. Aside from the obvious loss of revenue, these consumers pose a further risk through their potential to sell surplus energy to their neighbours, further diverting the energy utilities’ revenue stream. In South Africa, for example, nearly all municipalities restrict consumers from selling their own generated access electricity back to the grid, and the infrastructure needed to enable such prosumers to supply excess power back into the grid is not yet in place.

However, utilities need to prioritise a journey of digital transformation that reimagines their business models and reengineers business processes. By embracing exponential technologies such as blockchain, machine learning, predictive analytics, Big Data, and IoT, and integrating it all into a cloud platform under the SAP Leonardo digital innovation system, energy utilities can fast-track their digital transformation to rapidly adopt new business models and capabilities.

With technology giants increasingly encroaching on the territory traditionally held by utility companies, and rapidly increasing customer expectations, the need to transform business models and processes has become urgent. It is critical that energy utilities prioritise their digital transformation, or they risk being left behind by an increasingly empowered and self-sufficient consumer market.

* Hannes Venter, Industry Advisor: Utilities at SAP Africa

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Tech promotes connections across groups in emerging markets

Digital technology users say they more regularly interact with people from diverse backgrounds

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Smartphone users – especially those who use social media – say they are more regularly exposed to people who have different backgrounds. They are also more connected with friends they don’t see in person, a Pew Research Center survey of adults in 11 emerging economies finds.

South Africa, included in the study, has among the most consistent levels of connection across age groups and education levels and in terms of cross-cultural connections. This suggests both that smartphones have had a greater democratisation impact in South Africa, but also that the country is more geared to diversity than most others. Of 11 countries surveyed, it has the second-lowest spread between those using smartphones and those not using them in terms of exposure to other religious groups.

Across every country surveyed, those who use smartphones are more likely than those who use less sophisticated phones or no phones at all to regularly interact with people from different religious groups. In most countries, people with smartphones also tend to be more likely to interact regularly with people from different political parties, income levels and racial or ethnic backgrounds. 

The Center’s new report is the third in a series exploring digital connectivity among populations in emerging economies based on nationally representative surveys of adults in Colombia, India, Jordan, Kenya, Lebanon, Mexico, the Philippines, Tunisia, South Africa, Venezuela and Vietnam. Earlier reports examined attitudes toward misinformation and mobile technology’s social impact

The survey finds that smartphone and social media use are intertwined: A median of 91% of smartphone users in these countries also use social media or messaging apps, while a median of 81% of social media users say they own or share a smartphone. And, as with smartphone users, social media and messaging app users stand apart from non-users in how often they interact with people who are different from them. For example, 52% of Mexican social media users say they regularly interact with people of a different income level, compared with 28% of non-users. 

These results do not show with certainty that smartphones or social media are the cause of people feeling like they have more diverse networks. For example, those who have resources to buy and maintain a smartphone are likely to differ in many key ways from those who don’t, and it could be that some combination of those differences drives this phenomenon. Still, statistical modelling indicates that smartphone and social media use are independent predictors of greater social network diversity when other factors such as age, education and sex are held constant. 

Other key findings in the report include: 

  • Mobile phones and social media are broadening people’s social networks. More than half in most countries say they see in person only about half or fewer of the people they call or text. Mobile phones are also allowing many to stay in touch with people who live far away: A median of 93% of mobile phone users across the 11 countries surveyed say their phones have mostly helped them keep in touch with those who are far-flung. When it comes to social media, large shares report relationships with “friends” online who are distinct from those they see in person. A median of 46% of Facebook users across the 11 countries report seeing few or none of their Facebook friends in person regularly, compared with a median of 31% of Facebook users who often see most or all of their Facebook friends in person. 
  • Social activities and information seeking on subjects like health and education top the list of mobile activities. The survey asked mobile phone users about 10 different activities they might do on their mobile phones – activities that are social, information-seeking or commercial in nature. Among the most commonly reported activities are casual, social activities. For example, a median of 82% of mobile phone users in the 11 countries surveyed say they used their phone over the past year to send text messages and a median of 69% of users say they took pictures or videos. Many mobile phone users are also using their phones to find new information. For example, a median of 61% of mobile phone users say they used their phones over the past year to look up information about health and medicine for themselves or their families. This is more than the proportion that reports using their phones to get news and information about politics (median of 47%) or to look up information about government services (37%). Additionally, around half or more of mobile phone users in nearly all countries report having used their phones over the past 12 months to learn something important for work or school. 
  • Digital divides emerge in the new mobile-social environment. People with smartphones and social media – as well as younger people, those with higher levels of education, and men – are in some ways reaping more benefits than others, potentially contributing to digital divides. 
    • People with smartphones are much more likely to engage in activities on their phones than people with less sophisticated devices – even if the activity itself is quite simple. For example, people with smartphones are more likely than those with feature or basic phones to send text messages in each of the 11 countries surveyed, even though the activity is technically feasible from all mobile phones. Those who have smartphones are also much more likely to look up information for their households, including about health and government services. 
    •  There are also major differences in mobile usage by age and education level in how their devices are – or are not – broadening their horizons. Younger people are more likely to use their phones for nearly all activities asked about, whether those activities are social, information-seeking or commercial. Phone users with higher levels of education are also more likely to do most activities on their phones and to interact with those who are different from them regularly than those with lower levels of education. 
    •  Gender, too, plays a role in what people do with their devices and how they are exposed to different people and information. Men are more likely than women to say they encounter people who are different from them, whether in terms of race, politics, religion or income. And men tend to be more likely to look up information about government services and to obtain political news and information. 

These findings are drawn from a Pew Research Center survey conducted among 28,122 adults in 11 countries from Sept. 7 to Dec. 7, 2018. In addition to the survey, the Center conducted focus groups with participants in Kenya, Mexico, the Philippines and Tunisia in March 2018, and their comments are included throughout the report. 

Read the full report at https://www.pewinternet.org/2019/08/22/in-emerging-economies-smartphone-and-social-media-users-have-broader-social-networks.

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Nokia to be first with Android 10

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Nokia is likely to be the first smartphone brand to roll out Android 10, after its manufacturer, HMD Global, announced that the Android 10 software upgrade would start in the fourth quarter of 2019.

Previously named Android Q, it was given the number after Google announced it was ditching sweet and dessert names due to confusion in different languages. Android 10 is due for release at the end of the year.

Juho Sarvikas, chief product officer of HMD Global said: “With a proven track record in delivering software updates fast, Nokia smartphones were the first whole portfolio to benefit from a 2-letter upgrade from Android Nougat to Android Oreo and then Android Pie. We were the fastest manufacturer to upgrade from Android Oreo to Android Pie across the range. 

“With today’s roll out plan we look set to do it even faster for Android Pie to Android 10 upgrades. We are the only manufacturer 100% committed to having the latest Android across the entire portfolio.”

HMD Global has given a guarantee that Nokia smartphone owners benefit from two years of OS upgrades and 3 years of security updates.

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