Strategy

Leaner Business Models

Many players in the European gas and electricity markets have been involved with unbundling and diversification in recent years. Today, faced with increasing uncertainties, growing investment needs and challenging stakeholders’ expectations, energy companies need to adapt their business models. A new leaner business model is gradually emerging among large incumbent companies. This model incorporates many attributes:

• selective integration of activities across geographies
• focus on core competences
• more autonomous business units balanced with more standardization and control
• improved operational and financial information systems and processes

Adopting this model represents a complex transformation for many industry players. It involves great challenges, including many usually underestimated soft issues. Addressing this type of change requires a balanced approach, merging both top-down and bottom-up initiatives. For more than 35 years, E-I Consulting Group consultants have developed experience in supporting management in setting up and managing such large transformation programs. The E-I Consulting Group offering integrates specific industry knowledge developed by its energy specialists and multidisciplinary Management Consulting expertise

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EDF HYDROPOWER: Transformation of division to ensure increased competitiveness

EDF is certainly the biggest electricity producer in Europe. Its Hydropower division alone has 400 plants, sold more than 35 TWh of electricity in 2009 and ranks among the major European electricity producers. In 2008 the Hydropower division started a program aimed at transforming both its offering and its operating model. Sopra Consulting is assisting EDF in designing and implementing the transformation. The focus of the program is on drastically improving the division’s competitiveness in the new deregulated environment. The program’s main objectives were to develop new services, prepare for the threat of new entrants on the French market and drastically improve overall performance. Sopra Consulting is involved in various streams such as industrial strategy, business and operating model development, change management, benchmarking and benefit tracking. Sopra Consulting participation does not stop at the design stage. Our consultants are also involved in the nitty-gritty aspects of the implementation process, from pilot projects to the realization of the desired benefits.