Technology and infrastructure challenges in public power
As technology evolves, public power utilities face growing operational and corporate technology risks, according to the “Public Power IT Benchmarking Survey” sponsored by the American Public Power Association (APPA) and conducted by Baker Tilly. Community-owned utility respondents cited these technology and infrastructure challenges most frequently:
- Insufficient staffing
- Keeping up with complex technology
- Insufficient resources
- Lacking technical skillsets
- Recruitment and retention issues
With communities relying on public power, these common risks necessitate utility information technology functions have well-established information technology oversight and management practices. Effective IT governance can ease these challenges for your utility.
Effective IT governance – five components
Effective IT governance encompasses the processes, organizational structure and oversight aimed at aligning IT operations with organizational strategy and goals. Five key components drive it: strategic alignment, value delivery, risk management, resource management and performance measures.
The section below defines each component of IT governance and outlines key steps for your utility’s IT function to take. It also explains how these actions will address the common technology and infrastructure challenges identified by the APPA-Baker Tilly survey.
- Strategic alignment: Provide strategic direction of the IT function and align IT services and projects with the utility’s objectives.
- Value delivery: Confirm the utility is designed to drive maximum business value from IT. Oversee the delivery of value by IT to the organization and assess return on investment (ROI).
- Risk management: Ascertain processes are in place to ensure risks are adequately managed. Include an assessment of the risks posed by IT investments.
- Resource management:
