Digitalization of the water industry has many facets - but where to start?
Challenges for water supply companies
Some utilities have already taken steps towards digitalization and modernization in recent years, but many others have not. An article on the topic of digitalization.
Date: 18.10.2023 | Reading time: 7 Min.
Heavy rain, drought, shortage of skilled workers and more
The digitalization of the water industry: products, processes and organization
Heavy rainfall events, periods of drought, a shortage of skilled workers, bureaucratic hurdles, IT security or increased customer requirements - these are just a few examples of the challenges that water supply companies are currently facing. Some suppliers have already taken measures to digitalize and modernize in recent years, but many others have not. But why are the majority of companies hesitant to embrace the new possibilities, even though the offer is available and continues to grow?
The digitalization of the water industry has become much more important in recent years. The use of digital technologies has an impact on all stages of the water supply value chain - from raw water extraction to billing. This can be clustered into three areas: the product level, process level and organizational level. The latter in particular must gain in importance as part of the digital transformation.
The data can be transferred to the servers in different ways. Directly from the water meter (Nb-IoT), via walk-by/drive-by (here the meters are read, usually via wM-Bus, while walking or driving past) or in a so-called fixed network, in which the data is collected by permanently installed gateways (e.g. iQ wM-Bus Bridge) and then sent to the servers, e.g. via Nb-IoT or LoRaWAN.
Security aspects and IT security in the digital water industry
Organizational framework conditions and corporate culture during the transformation
The choice of suitable technology depends on local conditions and the use case, in particular data volume and frequency. The new 450 MHz network is based on LTE technology and is to be fully rolled out in Germany by 2025. It is particularly suitable for the transmission of failure-critical data, as a high level of availability can be guaranteed.
Intelligent measuring devices and IoT applications enable the digitalization of the network infrastructure without any alternative, but also harbour potential risks. Communicating and controlling components in supply networks, especially in the area of critical infrastructure, are attractive gateways for attackers. Special security regulations apply in the area of critical infrastructure, including end-to-end encryption of data transmission. Holistic IT security concepts already exist here that meet the requirements of the German Federal Office for Information Security (BSI) for the energy and water industry.
It is not only the availability of technologies and the conversion of processes that determine success, but a core factor of this digital transformation is the creation of the organizational framework and the establishment of the right corporate culture that puts people first. It is important to establish the right corporate structure and culture in a timely manner in order to be successful in the long term.
Digitalization requires a new corporate culture and structure
In the 21st century, the megatrends of globalization, digitalization and networking are leading to a completely new market environment for companies. In addition, water supply companies are currently facing various challenges - heavy rainfall events, periods of drought, a shortage of skilled workers, bureaucratic hurdles, IT security and increased customer requirements are just a few examples. Then there are the crises of the last two years.
We have realized that things in this world no longer work the way they "used to". Digitalization in particular will fundamentally change our working lives. Progress will not be stopped from moving forward. Nothing can be planned for one or more years. Permanent upheaval is normal. We will now have to set off without knowing the exact path. This has a fundamental impact on the organizational structure and culture of a company. Without an organizational transformation, digital transformation is not possible at all.