By Carl Warwick, Regional Sales Director Asia Pacific and Japan, BillingPlatform
In an increasingly competitive marketplace, many Australian energy retailers are looking for ways to overhaul their legacy billing systems. Increasingly, they are opting to migrate to cloud-based revenue management software that covers the entire revenue cycle and integrates seamlessly with existing ERP solutions.
Being able to capture and consolidate sales or usage data and integrate it with systems that track and manage their customers means energy providers can extract actionable insights to inform product and pricing decisions.
Over time, this can allow them to develop a richer understanding of customer requirements and behaviours. As a result, they’re able to form a detailed picture of how, when and why consumers and businesses consume energy.
Making the change can be a compelling value proposition, and one which many local businesses are keen to pursue during the coming months and years.
Related article: Gentrack and EnergyAustralia partner for smarter billing
A well-planned journey
Getting the optimum return on an investment in next-generation billing technology isn’t something that occurs by accident. It’s invariably the result of a tightly managed project journey which incorporates process redesign, stakeholder consultation, and a well-planned implementation process.
There are a number of steps energy retailers should take when undertaking such a change. They include:
- Scope your requirements first: Many energy providers know they need to change, however the question is to what, exactly? Being aware of inefficiencies and pain points in their current billing process is usually what prompts providers to begin considering a revenue management change, however it pays to dig deeper than that. A rigorous research and discovery phase will help define specific needs in detail and gain buy-in from stakeholders who’ll be impacted by the upgrade.
- Narrow down the options: Energy providers have plenty of options when it comes to specialist business software, including in the revenue management space. Exploring all of them in depth can be a time consuming and, arguably, time wasting exercise. If a provider is clear about its requirements and budget, it will be possible to quickly filter out the solutions that are too simple, too complex, too expensive, or too basic. Doing so will enable attention to be focused on the handful of possibilities that may be able to meet business needs.
- Select your supplier carefully: Choosing the right supplier is a multi-faceted process. Technical capabilities and price are important and so is a prospective vendor’s ability to support a provider and its IT team throughout the project lifecycle and beyond. Renovating a revenue management function is no simple undertaking and it pays to work with a premium vendor that’s in it for the long haul. Doing so will ensure the time and money invested is well spent.
- Dedicate internal resources to the project: External partners may know everything there is to know about revenue management however they won’t necessarily know much about an energy provider’s business. This is why it’s vital to dedicate internal resources to a project team. It should comprise experienced operators who are across their subject matter and can ensure what’s being put in place will support operations. Also, appointing a ‘technical owner’ early on—someone from the IT department who can get to grips with the workings of the chosen revenue management platform—will prevent the business becoming excessively reliant on third-party suppliers after the roll-out is complete.
Related article: Quinbrook sells retailer Energy Locals to consortium
Take a segmented approach
Rome wasn’t built in a day and nor will a new revenue management function. Taking a segmented approach to implementation will enable the business to progress steadily and safely, testing and refining along the way.
Having clearly defined milestones allows stakeholders at all levels to see that progress is being made. This is essential if the business is to maintain internet buy-in and support.
Automating a revenue management function is a surefire way to drive efficiencies and cost savings and obtain the insights you need to optimise retail offerings.
Putting time and energy into selecting the right partners and making the switch in a steady systematic way will ensure an investment in this game-changing technology will deliver an oversized return.
