How will the corporations survive? – ABC News

Sixth largest vannkraftprodusent in the world

Norway’s deep fjords and high mountains makes the country a natural place to develop hydroelectric power: The first known dam was built in 1028 – in the viking age, according to Leif Lia, professor at Ntnu’s Department of hydraulic and environmental engineering.

The modern era within the Norwegian hydropower began around the last turn. Hammerfest turned on the lights with power from its own municipal power plant in 1891. In the 1920′s had all of Norway’s cities and 60 per cent of the population access to electricity, ranging from hydro-power.

today, approximately 96 percent of the electricity in Norway is from hydroelectric power generated by more than 200 energy companies, many of them small and local. Norway is the world’s sixth largest producer of hydroelectric power.

the Business world is full of fallen giants, companies like Nokia and Kodak, which was once very successful, but that dwindled away to nothing. Victims of bad decisions or problems with managing the transition to the new technology.

It is easy to look back on these disasters and wonder how the management could not foresee the technological changes that they were facing. In both Nokia and kodak’s case knew the companies what would come.

Kodak had actually developed a digital camera as far back as in 1975. But with 90 per cent of filmsalget and 85 per cent of the kamerasalget in the united STATES, it was difficult for the leaders to see any reason that they should change strategies. Nokia had also developed a smartphone as early as in 1996, but the management saw no reason to go away from the very profitable core business, the sale of traditional mobile phones, before it was too late.

see also: This mistake of doing too many car owners

Will help companies

An NTNU researcher takes a closer look at how Norway’s kraftbransje should be able to cope with markedsutfordringene from renewable energy, and changed consumer behavior:

Rikke Stoud Platou, a phd candidate at the research school in innovation, says Norway’s 100-year-old kraftbransje face the same type of fundamental changes that Nokia and Kodak both faced. Platous doktorgradsforskning is about to try to help the power industry to avoid Nokia and kodak’s fate.

the Secret behind the success she believes is something called “organizational ambidekstri”, or the ability to do two things at once. You must be able to continue to do what you already do well, while at the same time is able to exploit future opportunities.

– How should the existing, stable companies like those in the power industry, deal with the technological shift? ask Platou. – Especially when it is such a strong contrast between what they are accustomed to, and what they can expect in the future?

see also: Smarter with smart home

(the Case continues below)

Now consumers from all over Europe to pay a premium in order to guarantee that the power they buy is from renewable resources. It has made the Norwegian hydropower especially popular in Germany. Here seen Hunderfossen power station in the river gudbrandsdalslågen. Photo: Paul Kleiven / Scanpix

Changes in energilandskapet

Large or small, local or regional: Norges more than 200 energy companies face a landscape of change, ” says Platou. Renewable energy, sometimes offered by individuals rather than by a power plant or a facility, is a major impetus for change, she believes. Digitization, whether from smart meters, smart grids or other digital offerings will also drive major changes in the way consumers use energy and the way companies offer it.

People change their behaviour when it comes to the use of electricity, either by putting solar panels on the roofs or buying new, smart appliances, says Platou.

the electricity market will change dramatically in 2019 when all the households in Norway the plan is to have smart meters. Today, most electric meters that they can read as rarely as four times a year, which is not far from frequent enough to reflect actual changes in electricity prices.

With smart meters, consumers will be able to see how much power they consume daily. They can also regulate the use, so that, for example, can take advantage of lower electricity prices at certain times of the day.

the Smart grid will also create challenges. It is a distribution network that can regulate and control the variation in the power from the renewable energy that is either generated from a wind farm or from solar cells on the roof, and who thus are dependent on the weather.

– This will increase the complex’s image, says Platou. For example, an app on your phone tell you when to turn on the dishwasher, so that you can take advantage of the lowest electricity prices.

see also: NVE will have more expensive electricity in the afternoon

Risky to just do as you’ve done

another challenge that e-work in Norway are facing is that they have long been protected in a regulated industry. It all began to change with deregulation in the 1990s, and now consumers from all over Europe to pay a premium in order to guarantee that the power they buy is from renewable resources. It has made the Norwegian hydropower especially popular in Germany.

– In the countryside it is risky to just do what you always have done, think Of.

She points out that the whole energy industry is used to invest in projects where it can take a long time before they begin to pay off, perhaps as long as 50-60 years.

But is it sensible to make investment decisions about the network today, for example? Well, both yes and no, ” she says. – We still need this infrastructure, but for how long? Customers change quickly behaviour and maybe they don’t need, want or expect to pay for a service they perceive as unnecessary. This creates both uncertainty and complexity.

(the Case continues below)

most People will gain more control over its consumption. Photo: Terje Bendiksby / Scanpix

A company that will succeed must be able to maintain a core business at the same time as it takes in technological changes.

Two activities must coexist, ” she says. – It is all about finding the perfect balance between separation and integration.

see also: America’s christmas lights use more energy than a developing country

to Separate and integrate

Companies can meet this challenge by making sure that the traditional branch of the business and the new branch operates independently (separation). But they also need to integrate the two branches.

A way to do this might be to create a insentivsystem so that managers ‘rewards are based on success for both branches, and thus create the integration,” she says. It creates also a sense that “if you win, I win too”.

In this context is a nøkkelfunn from study her the importance senior management.

It is important about the transition to succeed, ” she says. – It is important to take decisions about the strategic direction, and how it interprets the future.

see also:

Consumption is bad for the environment

Renewable stekeovnsvarme on the box

Discovery can ensure stable power supply

the Matter is originally published on Gemini.en