Innovation management in the energy industry: the key to successful transformation

The energy industry is facing profound changes. Driven by the transition to renewable energies, increasing decentralisation and regulatory requirements, the energy transition is presenting energy suppliers and grid operators with immense challenges. At the same time, digitalisation and new technologies such as artificial intelligence and smart grids are rapidly changing the industry. Companies must adapt to remain competitive. Systematic innovation management is the key to actively shaping this change, exploiting new market opportunities and minimising risks at an early stage.

Why is innovation management so important in the energy industry?

• 1. Managing the energy transition: The transition to renewable energies and decarbonisation require completely new infrastructures, business models and technologies. Innovation management helps to develop targeted innovative solutions – for example for the ramp-up of hydrogen, municipal heating planning or the expansion of smart grids.
• 2. Digital transformation: The energy industry is increasingly data-driven. AI-supported applications, digital twins and predictive maintenance increase efficiency and security of supply. But without a clear innovation strategy, there is a risk of a patchwork of inefficient isolated solutions.
• 3. Increasing competitive pressure: New market players and agile companies with digitally based business models are challenging established energy suppliers. Those who do not innovate risk losing market share.
• 4. Regulatory requirements: Strict climate targets and legal requirements such as the Renewable Energy Sources Act or the hydrogen strategy package require continuous adjustments. Innovation management makes it possible to proactively translate regulatory changes into new business models and technologies.

Our holistic consulting approach for the energy industry

We have developed specialised consulting services to provide targeted support for companies in meeting these challenges:

1. Innovation Check – assessment and trend analysis

A clear assessment of the current situation is essential for making well-founded strategic decisions. Our Innovation Check enables a systematic evaluation of the innovation maturity of companies, processes and technologies.

• Analysis of internal innovation competencies and digital capabilities.
• Evaluation of external trends, technological developments and market changes.
• Result: A detailed technology and trend radar that serves as a basis for decision-making for strategic innovation measures.

Particularly in the context of digital transformation, companies benefit from our GenAI Quick-Check, which assesses the ability to innovate in the area of generative AI and highlights potential for automation, data analysis and customer interaction.

2. Innovation Framework – management and governance of innovations

Many companies have numerous innovation initiatives but no clear governance. This leads to inefficiencies and missed opportunities. Our innovation framework ensures that innovation processes are sustainably anchored by:

• Developing a centre of excellence in innovation: an organisational structure for the targeted management and scaling of innovation projects.
• Defining clear decision-making processes: integrating innovation projects into strategic corporate goals.
• Methods for prioritising innovation initiatives: Focus on projects with the greatest value potential.

By implementing a structured framework, competitive advantages can be expanded in a targeted manner, regulatory challenges can be addressed at an early stage and technological developments can be strategically controlled.

3. Innovation Scope – From the idea to the specific use case

The energy industry is characterised by large, often abstract topics such as gene AI, decarbonisation, smart metering or predictive maintenance. But how are these topics translated into specific, value-adding use cases?

Our Innovation Scope offers:

• Structured scoping and clustering of innovation potential.
• Evaluation of ideas according to value proposition, complexity and regulatory framework.
• Development of a use case implementation plan with clear prioritisation.

Examples of topics explored include: AI-supported maintenance of networks and systems to reduce failures, automated processing of network connection requests using digital workflows, analysis of gas networks for hydrogen compatibility to meet regulatory requirements at an early stage

4. Innovation prototyping – testing feasibility and ensuring market readiness

Innovations often fail at the practical implementation stage. To minimise risks, we check the feasibility of new solutions at an early stage using prototyping and proof of concepts (PoCs).

Our innovation prototyping services include:

• Developing and testing prototypes & MVPs for new technologies and business models.
• Proof of concepts (PoC) for technical and economic feasibility testing.
• User feedback and market validation to maximise the chances of success.

Examples of prototypical developments:

• GenAI-supported chatbots to assist network control centres.
• Mobile apps for monitoring the vital signs of service technicians in hazardous work environments.
• Intelligent network management systems that balance peak loads in real time.

By using minimal viable products (MVPs), companies can test innovations on the market at an early stage, take user needs into account and significantly reduce time to market.

Conclusion: Use innovation management to gain a competitive advantage

The energy industry is facing unprecedented challenges – but also enormous opportunities. Companies that establish systematic innovation management can:

• Identify and exploit technological trends and market developments at an early stage.
• Secure competitive advantages through smart, digital solutions.
• Proactively implement regulatory requirements.
• Develop new business models and revenue streams.

Our four specialised consulting services – Innovation Check, Innovation Framework, Innovation Scope and Innovation Prototyping – offer a structured approach to systematically increase a company's ability to innovate.

Actively shaping the energy transition instead of just reacting to it – that is the key to sustainable success.