Delivering unrivalled service - pennongroup.co.uk · Delivering unrivalled service Success in the...
Transcript of Delivering unrivalled service - pennongroup.co.uk · Delivering unrivalled service Success in the...
Chris Loughlin, Chief Executive Officer
Delivering unrivalled service Success in the new world of water
March 2017
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Industry undergoing unprecedented change
2014 Water Act
Most significant change since privatisation
Progressive introduction of market forces
De-regulation / Competition for Non-Household Retail
Further de-regulation ‘Upstream Reform’ 2020
PR14 facilitated its implementation
Wholesale and Retail segregation
Consolidation within sector
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Philosophical shift • primacy of customer relationship
- customer engagement
- outcomes
- totex and ODIs
• greater use of incentives
• risk based reviews
• focus on market mechanisms
Legitimacy • sharing out performance equitably
• ‘nudge’ regulation
• ‘regulation’ by social media
• board governance
Challenging the investment proposition • RPI vs. CPI
• non-household deregulation
• RCV ‘carve out’ – water resources and sludge / direct procurement
Unprecedented change
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Unrivalled service Customers at the heart of everything we do
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Unrivalled service Paradigm shift
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OLD MODEL NEW MODEL
• reactive to customer issues • customers as our quality control
issue response information share engagement
Customers at the heart of everything we do New model for customer service
• reaching out to customers • proactive – one step ahead • understanding customers
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Unprecedented change Themes in the new world
Resilience • short / long-term
• multi-dimensional
• environment / assets / companies
Innovation • integral to everything
• supply chain engagement
• source of competitive advantage
Customer focus • reaching out
• beyond engagement
• wholesale / retail polarisation
Investment case • attractive investment proposition
• predictable / transparent
• wholesale / retail polarisation
Efficiency • affordability / vulnerable customers
• imaginative solutions
Partnership working • solutions with / by local community
• holistic solutions
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Innovation Digital delivering business solutions
Customer data
Asset data
• engagement
• research findings
• infra
• non-infra
• third party
Business / operational intelligence
Services tailored to
customer needs
Identifying vulnerable
customers
Informed decision-making
Right decisions, right time
iSCADA – alarm intelligence
Machine learning / AI
Reliability-centred
maintenance
Innovative business solutions
Business
Intelligence
dashboards
Virtual tours /
augmented reality
Automated processes
BIM models
Drone / aerial
outputs
Mapping
Real-time reporting Data web portals
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Innovation Digital interface with customers
Website
Social media
Mobile apps
Rich media (video etc.)
Chat service
Digital underpins ‘unrivalled service’
Engaging on customers’ channel of choice
Requires real-time information
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Partnership working Solutions delivered by/with local community
Partnerships to protect the environment
• catchment management programmes (Upstream and Downstream Thinking)
• initiatives with councils, conservation groups and other parties (e.g. BeachWise)
Community partnerships
• affordability initiatives (e.g. CAB)
• joint working with stakeholders (e.g. housing providers)
• new ways to engage
Supply Chain partnerships
• ‘virtual utility’
• permeable supply chain delivering innovation
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Resilience Ability to anticipate, absorb, adapt, rapidly recover from a disruptive event
Many dimensions – current and future
• whole system / infrastructure / climate change
• financial
• public support / legitimacy / customer affordability
• corporate
• governance and decision-making
Resilience is about risk and mitigation
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Efficiency Business critical
• affordability
• supporting customers in vulnerable situations
• imaginative solutions
• lowest cost provider in a changing world
OFWAT INDUSTRY RORE(2)
COMPARISON 2015/16
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Reflections on success in a changing world
• public health and sanitation – basic human right
• legitimate to treat as a tradable commodity?
• customer engagement critical to success
• integrated supply chain
• community-based RCV model
• emergence of regional infrastructure providers
• virtual utility?
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Customer of the future will be...
More individualistic...
...but more focused on the values and ethics of businesses
They will live in a climate of expanding choices...
...so will want more integrated services
Tech-savvy...
...and will expect the same from the companies they deal with
They will expect straightforward, convenient communication...
...with companies that understand their needs
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...So the ‘Utility of the Future’ must be...
Pushing all the ‘frontiers’
• reaching out to customers
• continually innovating – digitally enabled approach
• working in partnership with communities
• delivering efficiently – maintaining legitimacy
• flexible and resilient in a changing world
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Chris Loughlin, Chief Executive Officer
Delivering unrivalled service Success in the new world of water
March 2017