Impact of Technology on Utility Companies

Most businessmen would agree that it takes years to build a business. And it takes even longer years to sustain the business.

            A business organization cannot exist without having suffered problems or conflicts at some point during its corporate life. However, for a business organization to thrive, it must incorporate well-thought business processes, organizational culture, structure and environment and to effectively carry out its business strategies. And this is true in utility companies.

            Just like any other service providers, an electric or water service provider also encounters problems. Aside from high maintenance and operational costs, these utility companies also experience difficulty in serving its customers to a certain extent, such as segregation of electric and water billing statements. Payment collection is also difficult especially when the occupants are not the actual owners which may result to a narrow profit margin. Also, the billing requirements of the company impose a heavy burden on the administrative level because of the scale, coverage and complexity of billing which necessitates an extensive yet accurate work. The need to process payments is also complicated since it requires high degree of efficiency. Sometimes, it cannot be avoided that mistakes in billing is committed which may anger some customers. It was also proven that relying on the billing software is not a guarantee for smooth business process considering the complexities involved.

            These considerations are very important to the present system and process of utility companies. If these problems will not be resolved at the earliest opportunity, it will create a potent threat to the success of the company.  These companies should be committed to lessen, if not totally eliminate, these problems by constantly upgrading their systems to avoid human errors and for a more efficient delivery of services to the customers.

Technology plays a vital role in the marketing strategy of utility companies. But then the downside of this is that it can lead to organizations investing heavily in systems that go beyond their needs and then failing to make use of them effectively. Information technology, on its own, will not create better information systems that enable organizations to function more effectively. Organizational cultures need to be changed so that the wider processes information management becomes a priority.

With the use and integration of E-Commerce, utility companies will be able to change from the traditional marketing approaches to electronic commerce. E-commerce will make a huge impact to the companies by providing easy opportunity for redesigning, recalibration and restricting of key organizational aspects of a business enterprise. With the employment of E-Commerce, utility companies will be able to attain improved productivity, encourage greater customer participation and reduce cost. Companies will also become more efficient with its E-Commerce by using electronic sequencing, electronic data gathering and electronic business transactions such as invoicing, billing, job order placement, issuing receipts, confirmation of service, payment transfer facilities, and recording. Time, money and efforts were saved as a result.

These utility companies must also have effective information systems.  The interaction between different components of the organization depends upon integration, communication and decision making. When working all together, they create a linking process in the organization.