Value of Geo-Spatial Technology in a Utility a Statisical Approach

The Issue
The implementation of complex information systems in utilities strikes fear in the hearts of many utility executives, and for good reason. Many utilities have a horror story or two to tell about sinking millions of dollars into a new information system that never goes online or only marginally meets expectations. Utility AM/FM/GIS has had their share of this type of failure, but it is important to note that most of these experiences occurred in the pioneering days of the technology and are infrequent today. The cost of modern GIS systems is still sufficiently high to require approval at the board of director’s level. Most of these boards are heavily represented by financial people who remember, all too well, the financial impact of every information technology (IT) failure. They want more than just a good feeling that the technology will be successfully implemented. They need assurances that the investment will make a better return than other projects they are considering. No matter how the justification is put together, they want proof that some other utility has actually achieved a positive return.

This is a difficult assignment. As utilities become more and more competitive, they realize that information is their competitive advantage. Some middle managers will boast a little to their competitors about how successful their project was, but few will share real financial results. This is partly because few companies who have successfully implemented AM/FM/GIS have actually measured the difference before and after.