— IDC and Huawei Jointly Released the White Paper for the Electric Power 
Industry

At HUAWEI CONNECT 2020, IDC and Huawei jointly released the white paper for the 
electric power industry — Building the Future-Ready Power Enterprise: Road to a 
Successful Digital Transformation.

In the white paper, IDC proposed a methodology for the transformation of 
electric power enterprises. This methodology supports and aligns with Huawei's 
digital transformation methodology. IDC and Huawei follow a similar approach 
with frameworks and blueprints to help organizations design their digital 
transformation priorities and set their agenda, which in turn enables power 
enterprises to deliver business value of scale.

Electric Power Enterprises Urgently Need New Operating Structures and Business 
Models

The power industry has long faced disruption. Power enterprises are now facing 
multiple changes. Management will need new operating structures and business 
models if power enterprises are to remain key players in the energy ecosystem. 
As 2020 progresses, COVID-19 has introduced another dimension of change and 
disruption that business leaders in the power industry must tackle.

Hou Jinming, Deputy Director of the Technology Department of the Global Energy 
Interconnection Development and Cooperation Organization (GEIDCO) said that, 
"As the advance of global energy reform and energy Internet development, the 
power sector will take an entirely different shape. It will be decarbonized, 
digitized, and intelligent." The implications of the change will impact the 
management, operations, services, and transaction modes of the electric power 
industry. Power enterprises must reconsider who the customer is and who the 
competitor is, a new breed of stakeholders and participants, and how the energy 
ecosystem works. This will mean new customer engagements, new business models, 
new competitors, more stakeholders and increased risks.

Increasing renewables, emerging power consumption devices, multiplying power 
grid connections, and the integration of energy, information, and 
transportation networks require power enterprises to systematically improve 
their response capabilities and the intelligence of their management systems 
and business processes. This will allow power enterprises to better adapt to 
complex environments, and enable power systems to operate more securely, 
adaptively, flexibly, and efficiently. Therefore, high operation data analysis 
efficiency, rapid and efficient artificial intelligence (AI) decision-making 
capability, and full-process automation will be crucial to the survival of 
power enterprises.

Methodology: Five Stages of Digital Transformation of Electric Power Enterprises

To build the future power enterprise, IDC proposes the digital transformation 
methodology for the electric power industry.

IDC's maturity model is part of its digital transformation methodology that 
seeks to provide a framework for companies to build their roadmaps. According 
to the maturity model, the digital transformation of electric power enterprises 
is divided into five phases: adhoc, opportunistic, repeatable, managed, and 
optimized.

The factors most critical to the success of power industry digital 
transformations are as followed: 1. A single enterprise digital strategy; 2. 
Resolution to make the required organizational and cultural changes; 3. A 
long-term investment commitment to digital transformation; 4. A platform-based 
strategy; 5. An enterprise-wide data governance model.

Emilie Ditton, AVP of the Energy and Manufacturing Insights Group, IDC Asia 
Pacific, believes that modernization, digitalization, and transformation of the 
grid are an immediate requirement. The transformed digital grid will combine 
traditional centralized generation, large-scale distributed generation, and 
renewables as well as enabling visualized management and control of the complex 
power grid environment. Grid operations will transform from digital grid 
operations to smart grid operations. New business models will be established, 
and the power service mode and power grid management mode will be changed.

Huawei: Reliable Partner for Digital Transformation

Collaborating with its enterprise partners, Huawei implements comprehensive 
awareness, interconnection, and intelligence of various power terminals by 
integrating 5G, IoT, optical, IP, cloud, big data, and AI technologies into the 
power system. Through digital transformation, Huawei is committed to assisting 
customers develop coping strategies in dealing with industry challenges and 
seizing future opportunities.

Lu Yongping, Vice President of the Global Energy Business Dept of Huawei 
Enterprise Business Group, stated that Huawei is a reliable partner for digital 
transformation. Huawei will facilitate digital transformation of electric power 
enterprises through a variety of methods, including assisting in the 
understanding of their own status quo, the market, and the entire industry 
ecosystem. Based on extensive digital transformation practices in the energy 
industry, Huawei has developed an energy ring — '1-2-3-2-1' — a digital 
transformation framework applicable to the energy industry, in aiding electric 
power enterprises realize the vision of their digital transformation goals.

Photo - https://photos.prnasia.com/prnh/20200923/2926611-1 

Adhere to one transformation vision: Electric power enterprises should 
interpret 'digital transformation' as a corporate-level transformation strategy 
and an indispensable element of their overall strategy.

Create two assurance conditions: Develop data literacy levels of enterprises 
and employees, progress the cultivation of a digital and transformation 
culture, and build a talent team for digital transformation, supporting 
enterprises' digital transformation objectives.

Implement three key processes: Implement integrated management of planning, 
construction, and operations and ensure that digital transformation is 
progressing as outlined, so that an organization's transformation vision can be 
converted into enterprise value.

Build two core driving forces: Follow service and technology trends and seize 
opportunities in the future.

Build one basic platform: Build a fully connected digital platform to provide 
solid foundations for the digital transformation of businesses.

Huawei's digital transformation methodology is similar to that of IDC, and they 
complement each other. Both parties believe that digital transformation steps 
and frameworks need to be planned and established to help electric power 
enterprises design their digital transformation priorities and set their 
agenda, which will enable power enterprises to deliver business value of scale.

Hu Hao, Chief Digital Transformation Officer of the Global Electric Power 
Industry of Huawei Enterprise BG, pointed out that the global energy industry 
is facing transformation. The traditional energy consumption structure centered 
on primary energy is gradually transforming to a new structure centered on 
secondary energy such as PV and wind power. This will drive the industry 
evolving towards decarbonized, clean, electrified, and distributed. During the 
transformation, Huawei will help power enterprises optimize management 
processes, reduce production costs, improve operation security, and innovate 
business models. It will also help enterprise customers accelerate digital 
transformation to achieve the goal of building an intelligent energy system 
that features multi-energy synergy, ubiquitous connectivity, and intelligent 
interaction.

HUAWEI CONNECT 2020 is an annual flagship event hosted by Huawei for the global 
ICT industry, and is being held in Shanghai from September 23 to 26, 2020. 
HUAWEI CONNECT is an open platform designed to help our customers and partners 
navigate these changes, share experience, and work together to create new 
value. At this year's event, we will explore trends and opportunities in 
industry digitization; showcase advanced ICT technologies, products, and 
solutions; give you an insider's look at the fruits of joint innovation; and 
share best practices in digital transformation. Our ultimate goal is to build 
an open and sound industry ecosystem that will benefit all stakeholders and 
create new value for all industries. For more information, please visit:

https://www.huawei.com/en/events/huaweiconnect2020/

Source: Huawei

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   Caption: Lu Yongping, Vice President of the Global Energy Business Dept of 
Huawei Enterprise Business Group