Traditionally, the utilities industries have been characterised by regulatory and government constraints. Markets have usually been very large and served by a small number of well established companies. Levels of regulation mean that the industry cannot be viewed strictly as being 100% in the private sector, and therefore the following groups need to be satisfied: stockholders, customers, regulators and governments.
There have been some moves to further introduce market forces to the power industry recently. These have been met with some resistance, particularly in mainland
The utilities environment is, however, far from being classified as an open market. For example, the ability to reduce costs through mergers and acquisitions is often prohibited by antitrust proceedings. Another way, therefore, to achieve cost efficiency is internally via the implementation of world class systems and procedures.
Price volatility is also a characteristic of the utilities industries, particularly oil. Political and civil situations around the world have led to wild swings in the markets which has enhanced the appeal of energy sources that are not primarily based in the
The water industry is no exception to the issues mentioned, even though it has sometimes been described as a series of ‘natural local monopolies’. The industry is highly capital intensive, strictly regulated, subject to painful taxation, and subject to stock market unease.
In this environment, the need for scalable systems such as Enterprise Resource Planning (ERP) solutions are significant. Flexibility is key as is the need to have a highly integrated and efficient management, regulatory and financial reporting infrastructure. Having clear visibility and control of your organisation enables you to respond to the demands and uncertainties that the utilities industries are faced with.
The utility industries are commonly characterised by the following factors:
The need for integrated, scalable systems such as Enterprise Resource Planning (ERP) solutions is significant.
Flexibility is key, as is the need to have a highly efficient processes and procedures.
The Orchid team have considerable experience in utilities. We were involved in a successfully implemented ERP solution at a water utilitu company on time, and on budget.
the ERP solution replaced eight separate legacy systems that supported the finance, estates, supply and treatment, mechanical and engineering and underground asset management areas of the water utilitie's business.