The advent of the Fourth Industrial Revolution has brought along a new wave of technology usage in the world of business. Following this path, businesses are walking along the track of asset digitisation, which is a highly useful and thorough virtual resource library that is constantly forming. Energy Malaysia explores the digitisation of assets in the energy industry.
Asset digitisation is the process of converting physical assets into electronic resources. This process requires a combination of important tools to come into play, such as systems and technology, as well as competent Digital Asset Management. The digitisation of assets is not an altogether novel phenomenon. It is a technological approach that is already being adopted by facilities and institutions, taking advantage of its organisational efficiency. In the energy industry, digitisation of asset is being considered as a new step towards capitalising the technological advent of Industry 4.0.
What are your assets?
Any three-dimensional information is regarded as an asset. This may include any form of books, documents and media content. These assets can be digitised in blockchain, which is a record log that grows on an endless basis. These records are called ‘blocks’ and are linked and protected with cryptography. These assets are then managed by asset managers, who may be people working in the financial sector, or investors who have practical digital knowledge.
In the energy sector, assets are renewable and non-renewable sources. The digitisation of these assets calls for the incorporation of Industry 4.0 technologies into its operational system, making the intervention of human as unnecessary.
The Deskless Worker
Interestingly, not only ‘things’ are digitised but people can be digitised too. Some experts believe that among all important assets, the people working in an enterprise are probably the most important of all. This is where the deskless workers play a part. They make up more than half of the workforce and are a vital component of an organisation, whether big or small. They are the part of a company that does not sit by a computer and phone. They are the field and warehouse workers, the drivers, and even those who work in shifts.
As such, they are a form of asset and have to be supplied with technology, thereby digitising them. Once digitised, they become an aspect that is beneficial for the company, in that a physical location or differing time zones would cease being a barrier – an aspect that is especially suitable for those working in the energy industry.
Why is it good?
The more venturesome of them who have embarked on this path of digitisation at an earlier period have some positive news to share. The digitisation of assets has helped in the reduction of operational costs, created a more efficient workforce, higher administrative efficiency, and a higher quality of client experience.
It may also very well be the answer to avoiding pain points within an industry, the most common of which is communicative friction between departments. This means, your digitised assets, the people in the work force that have been provided with (in this case) communicative technology, will be able to collaborate in real time, without the need of a physical presence of those involved. This becomes of benefit to business companies as employees perform better – a profitable plus point for them.
“Petroleum and electricity retailers leveraging on usage of smart devices, ‘cloud’ storage and advanced analytics are able to increase their asset life-cycle and at the same time, innovate customer-centric products.”
– Accenture’s Managing Director of Resources, Cheah Wai Seng
Digitising the Energy Sector
The energy sector is one area which has undergone digitisation, with the most obvious examples being the use of smart grids, smart metering systems, and smart appliances. These utilise the Internet of Things (IoT) where devices are connected to another through the Internet, thereby allowing for the transfer of information between them.
According to Robert Viola, the Director-General of DG Connect at the European Commission, the use of digital technology in the energy sector can result in a number of advantages. These include, “helping the consumer actively participate in the energy market and use energy more efficiently.”
This comes a time when demand side energy management is becoming increasingly important, as consumers become more aware of their ability and responsibilities when it comes to the efficient usage of energy. Smart meters are a good example of this concept at work.
As they are able to provide real time information on electricity usage, the building owner or tenant can calculate their consumption of electricity and adjust it accordingly. This is particularly useful in certain jurisdictions where tariffs change according to the time of use, with off-peak use being charged at lower rate.
Renewable energy is also one area which stands to benefit from digitisation. Companies such as ENGIE and Schneider Electric are collaborating to discover and utilise new technological solutions to aid in operational efficiency of these assets.
Didier Holleux, Executive Vice President of ENGIE explained that, “ENGIE’s objective is to develop remote supervision and control of its global renewable energy production assets, and possibly other energy assets as well, to optimise their performance. We are working in close collaboration with Schneider Electric with a shared vision of the challenges of an energy world that is decarbonised, digitalised and decentralised.”
Digitisation of assets helps in more ways than just its operational aspect. The Executive Vice President of Schneider Electric explained that the company “leverages its software solutions to address and solve customer needs in new and efficient ways.” He also added that ENGIE and Schneider Electric’s “combined technology and industry expertise can help identify new opportunities on how to better serve the energy market, while providing greater access to affordable, clean energy.”
At a local level, Accenture’s Managing Director of Resources, Cheah Wai Seng, echoed similarly positive statements on asset digitisation. He stated, “Petroleum and electricity retailers leveraging on usage of smart devices, ‘cloud’ storage and advanced analytics are able to increase their asset life-cycle and at the same time, innovate customer-centric products.”
To Digitise or Not to Digitise, That is the Question
Following the evolution of Industry 4.0, keeping up with technological development would be a smart move for those in the energy sector. This means daring to leave behind the conventional ways and endeavouring something new to keep up with the gradual and inevitable change brought on by this new path of industrial revolution in the area of energy development. The digitisation of assets – both of ‘things’, with the help of blockchain, and people – is the instrument of change for the future of industries, and how they work.
Industry 4.0 technologies are slowly taking up the place of conventional methods, and an example of that is asset digitisation which promises to be secure, sustainable and efficient – important bywords that attract the interest of any industry, no doubt. In light of this, the Malaysian energy sector may also enjoy the benefit of asset digitisation for both renewable and non-renewable resources if they would consider in the investments of this particular technology.
