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Between complexity and AI: Study shows success factors for IT transformations at energy suppliers

IT transformation in the energy industry is a marathon, not a sprint. The courage to change, strategic clarity, and a willingness to think beyond technical solutions are the key factors on this path. The new Utilities Transformation Study 2025 gives decision-makers greater transparency to help them plan their IT transformation more effectively and avoid errors.

The “IT Transformation Utilities 2025" study, conducted jointly by adesso and Natuvion in Germany, Austria, and Switzerland, provides managers of medium-sized and large energy supply companies with valuable insights into IT transformation in practice. The survey of 225 managers in the energy industry aimed to gather empirical data, identify success factors, and highlight typical sources of error. The data provides CEOs, CIOs, and transformation managers with guidance for planning and delivering transformation projects in a targeted and risk-reduced manner.

Time is a critical factor

When making decisions and plans regarding transformation, time is a particularly crucial factor, alongside the goals and the budget. 53.3% of the energy supply companies surveyed allocated more than one year for their transformation. These results are interesting, particularly when the sales categories are assessed in more detail: while only 39.9% of companies in the EUR 150 to 349 million sales category estimated that their IT transformation would take more than one year, the figure for the EUR 350 to 999 million sales category is 63.8%. The difference is even clearer in the EUR 1 billion-plus sales category, where the figure is 80.5%.

Complexity is the biggest hurdle

Transformations at utilities are naturally complex. This is also confirmed by the study: 28.2% of respondents in the DACH region see complexity as the biggest challenge, followed by budget management (24.2%) and analysing existing IT landscapes and data (22.9%). The differences between the three countries are interesting. In Germany, budget management for IT transformation is the number one challenge. Consultancy and personnel resources appear to be scarcer in Switzerland than in Germany and Austria. At the same time, the Austrians struggle more than the other two countries with overall project complexity.

The arrival of artificial intelligence

Artificial intelligence (AI) is a strategic lever for efficiency, innovation, and resilience – including in the energy supply industry. Nevertheless, the study paints a surprising picture. In response to the question "What role did the introduction and use of AI play in your transformation project?", only 37.9% said that "AI was a key driver for transformation." However, 54.2% stated that the use of options such as AI constitutes a positive benefit. AI played no role for only 7.9% of the utilities surveyed. Despite its great potential, AI does not appear to be a key trigger for transformation projects at energy companies in the DACH region. Rather, it tends to be used as a complementary technology in existing projects.

Operation-critical cutover usually takes two days

The cutover period, which marks the transition from project operation to go-live in the transformation, is crucial to critical infrastructures and therefore also to utilities. 30.9% needed just one day, while 59.5% of respondents said that their cutover period was two days. There are notable regional differences here too: while 86.8% in Germany and 90% in Switzerland needed a maximum of two days for the cutover, only 37.5% of Austrian companies managed this. 62.5% took three days or more in this region.

Goals largely attained

One extremely positive result of the study is that 87.7% of respondents say they have attained their transformation goals. Although goal achievement is rated highly, there are variances depending on the position in the company. While board members and managing directors are less likely to say that they have attained all goals (79.6%), heads of department (97.8%) and group leaders (94.4%) rate the situation much more positively.

Challenges and lessons learned

The complexity of the overall project and the management of large transformation projects are the biggest surprises for many managers. Budget management and detailed status analyses of legacy systems are further stumbling blocks. Almost a quarter of those surveyed experienced deviations in the planned business interruption, which emphasises that precise planning and realistic time buffers are essential. By contrast, respondents still tend to perceive the importance of AI as a complementary benefit.

"The results of the study clearly show that IT transformations in the energy industry are not a sure-fire success," says Michael Bloß, Chief Sales Officer at adesso business consulting. "They require strategic clarity, the courage to change, and realistic planning. With the Utilities Transformation Study 2025, we aim to give decision makers guidance on how to overcome challenges such as complexity and budget management in a targeted manner and implement their projects successfully."

Michael Bloß is Chief Sales Officer at adesso business consulting AG. (Source: adesso)

Michael Bloß is Chief Sales Officer at adesso business consulting AG. (Source: adesso)

When energy suppliers' contacts are asked about the key success factors for their transformation, "increasing data quality" comes out on top with 64.2%. "Data quality is not a detail, it is the basis of all modern IT – the results of the transformation study make this abundantly clear. Without reliable data, cloud, AI, and innovation remain piecemeal," states Holger Strotmann, Managing Director of Natuvion GmbH, which has been part of NTT DATA Business Solutions since August 2022. He offers this advice: "Companies need to take a strategic approach to data, with governance, housekeeping, and capacity building. If you are serious about transformation, data comes first, not afterwards."

About the study

The study is based on a structured survey of decision makers at 225 utilities in Germany, Austria, and Switzerland. All study participants were either currently involved in transformation processes or had completed them within the last two years. 56.89% of respondents had gross annual sales of EUR 150 to 349 million, 25.33% EUR 350 to 999 million and 17.78% over EUR 1 billion.


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