Digital transformation happens at both the individual and organizational levels.
In the past, digital transformation in the water industry primarily focused on basic digitalization tasks like converting paper records and automating processes. Unfortunately, this siloed approach limited collaboration and data sharing, thus hindering the effective management of water assets. While utility staff relied on experience to address uncertainties, they often lacked the necessary data for efficient resource management.
However, modern challenges such as climate change and aging infrastructure demand a more holistic approach. A systems-based approach considers all factors affecting water systems to make informed decisions. Data-driven insights are crucial for handling uncertainties and making effective decisions. Yet, past digitalization efforts created technology limitations that hindered this approach.
Fortunately, recent advancements in data storage, analysis, and presentation have created new possibilities. Technologies like the Industrial Internet of Things (IIoT), cloud computing, and AI are empowering utilities with data-driven, systems-based decision making. These advancements improve experiences for employees, customers, and communities, and enable customer service agents to better address customer concerns and provide live video streaming from mobile phones enhancing operational flexibility.
Digital water transformation goes beyond technology; it involves finding new ways of working that leverage a systems-based approach and data-driven decision making. This includes restructuring teams, creating new roles, and fostering a culture of innovation. Ultimately, it's about people and organizational change, using technology to achieve better business outcomes and experiences.
Mindset for innovation and a democratic approach using change management are the “secret” ingredients of successful and sustainable transformation of people and organizations.
Several studies have investigated the reasons behind the low rate of digital adoption, pinpointing workforce attitude, awareness, and skills as key barriers to digital transformation (GWI, 2019; Dodge Data and Analytics, 2021). Another key factor hindering digital adoption is the limited communication and engagement between technology providers and the buyers and end-users of those technologies within the utility. In addition, factors such as lack of time/bandwidth, organizational structure/bureaucracy, and unclear business case/ROI for digital technologies have been attributed to limiting digital innovation within water utilities (SWAN 2023).
Given the rapid advancements in technology and the global shift towards the age of AI, individuals and organizations need to have the right set of beliefs, mindsets, and behaviors that promote digital innovation. Digital Dexterity, defined as the ability of an individual, team, or organization to rapidly self-organize themselves to embrace and utilize existing and emerging technologies, is essential for producing better outcomes and experiences for their organization (MIT, 2016; Gartner, 2018). Lack of consideration for an organization’s digital dexterity was attributed as one of the reasons for the failure of most technology projects and digital transformation initiatives.
Resistance to change is one of the major factors derailing digital transformation initiatives, stemming from a lack of awareness and anxiety arising from the unfamiliarity and fear of job displacement. According to Forrester’s Business and Technology Services Survey, 2022, change resistance is among the five most frequently selected challenges in executing digital transformation. Utilities must institute practices, processes, and procedures for change management, workforce training, and upskilling that promote the Digital Dexterity and Mindset for Innovation within their organizations.
While the mindset for innovation is foundational, utilities must upskill the current workforce to instill confidence in advancing digital adoption, attracting new talent from the next generation.
Future digital transformation initiatives will differ significantly from those of just a few years ago. Though AI has been in use in the background for several years, ChatGPT, a generative AI technology, made AI mainstream last year. Shortly after that, Microsoft, Google, and others started releasing their Generative AI platforms and solutions.
Generative AI can democratize data and insights on a large scale within an organization. It has already started changing the way we work and create new habits. Digital transformation, powered by Generative AI, will augment employees with AI Personal Assistants and Co-Pilots and has the power to help water utilities leapfrog decades of digital evolution if supported by strong training and upskilling programs. Today, almost all the major technology firms are developing products enabled by Generative AI technology. Arcadis has rolled out a beta version of ChatGPT internally and is experimenting with potential use cases for Generative AI for the water industry. Soon, Digital Transformation might very well be called AI transformation as AI gets infused into every piece of hardware and software.
The sheer speed, scope, and impact of technological changes are challenging every organization, business, and society at large. The paramount question in every organization and leader’s mind is: “How are we going to prepare our employees and others in our workforce ecosystem?” The answer lies in upskilling – giving people the opportunities to gain the knowledge, tools, and capabilities they require to apply and use advanced and ever-changing technologies at work, as well as in their daily lives. Upskilling also solves the problem of talent acquisition in a world competing for talent across multiple industries and countries.
Utilities have another compelling reason to advance their digital transformation – attracting and retaining the next generation of workforce. Last year, Gen Z made up more than 13 percent of the civilian labor force, and according to data from the U.S. Bureau of Labor Statistics and projects Gen Z will account for 30 percent of the U.S. civilian labor force by 2030. There is already a race across all sectors to attract this group into the workforce. Several studies suggest that Gen-Zers value diversity and want to work for organizations that contribute to societal good and create benefits (Gen Z, Explained: The Art of Living in a Digital Age, published by the University of Chicago Press in 2021).
So, it is in the water industry’s best interest for long-term sustainability to institute initiatives that promote the better use of technologies, find new ways of working, and address talent pipeline issues.
Future of work and workforce: Water’s digital age framework for all sizes and complexities of water utilities.
Technologies are changing rapidly and impacting every person and organization in the world. Water and wastewater utilities, regardless of their size or location, must adapt and embrace digitally dextrous with an innovative mindset. empowering their workforce with informed decision-making capabilities requires robust support through effective change management, training, and upskilling programs. The challenges are real, and it is time for focused action on multiple fronts, including organizational redesign, talent and skills management, change management, collaboration and partner ecosystem management, and technology integration.
AMWA is collaborating with Arcadis and Water Research Foundation under Project 5178 - Preparing the Water Sector to Embrace Technology. This initiative aims to develop a framework that helps utilities of all sizes equip their workforce with the necessary skills, policies, procedures, and tools to make better decisions today for a more efficient, resilient, equitable, and sustainable tomorrow. and improve the experiences of utility personnel, customers, and communities using technology.
About the Author: Prabhu Chandrasekeran is the Vice President and Intelligent Water National Practice Leader for Arcadis North America. He brings 19 years of engineering and consulting experience in the water industry and specializes in utility management consulting for digital transformation. His background includes digital maturity assessment, digital strategy and planning, business process optimization, strategic planning, organizational effectiveness, smart water networks, Sensors and Industrial Internet of Things (IIoT) applications, situational awareness, and operations optimization.