Which companies will win or lose in the smart grid game? The electric power grid is in the early stage of a sea change, and hype about smart grid is at a high. Investment money is pouring in searching for a “killer app” and profits. Truthfully, nobody knows which business models will survive the Darwinian contest, but companies heeding these six lessons can increase chances of success.
This article makes three predictions. First, investment focusing on improving utilities’ costs and revenues will do better than those targeting customer demand response. Second, organizational transformation will be more important for business success than technological prowess. Third, companies with the ability to leverage international innovation internally and to launch global businesses will be the winners in the smart grid space.