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The race to reinvent

I think I’ll get broad agreement in saying most energy companies are racing to re-invent themselves from supply to service; centralised to decentralised; volume to value. As such, new and innovative business models are emerging - challenging the very way in which transactions across the space are carried out, and revolutionising customers’ access to not only information but the range of products & services available to them. 

The need to provide customers with energy, reliably and economically, has not altered. But an ever-changing mix of drivers; from the rise of inexpensive, customer-facing technology, especially the internet and the smartphone, are at the beginning of transforming our industry forever.

Previously unimaginable new business models are not just possible. They are, for many customers, desirable and even essential; and, for many companies, increasingly profitable.

Expanding upon work we completed in 2016 (our Energy Services Innovation multi-client study), it is clear to us that new and innovative business models are not limited to energy services – or any one silo of the industry – the entire energy ecosystem is transitioning, right across the supply chain.

Cutting through the ever-growing hype and seemingly endless sea of innovations, we have developed a framework based around 6 key types of business models:

To find out more detail about each of the six, as well as how they relate to each other, download our whitepaper, listen to our short podcast and feel free to drop me a line.

business models blog

With the pace of change only set to accelerate, the pressure is on to synthesise what’s working and what isn’t. Taking one of our 6 Business Model types – Marketplace Operations, for example – we see new marketplaces primarily being built by startups, ranging from auto-switching propositions to the “AirBnB” of energy. While some are going direct to market, energy suppliers represent a tempting route to market, e.g. via SaaS (software as a service) or white-labelling business models. Researching these companies has been fascinating – and gives me my own views on who is getting traction and likely to succeed.

The opportunities and threats that ‘new energy’ business models pose is, on the face of it, incredibly daunting – which is precisely why we have turned our deep insight and expertise towards helping our clients clarify and navigate what is happening, on the ground, across the market.

How are you making sense of the disruptive business models you see transforming the energy sector? How are you responding to the “race to reinvent”?

Contact me on [email protected] or call 0131 625 3336 for a chat.

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