Like so many other fields, several major players within the water industry have announced their aims to place a renewed focus on innovation and transformation in 2024. But in what areas are they focusing their collective attention and what would a more innovative future mean for skills demand ahead of the approaching AMP8 cycle?

While this, by any means, isn’t the first period of supposed focus on innovation within the water industry, it does come against a highly challenging backdrop with the industry making headlines for all the wrong reasons. However, ahead of the launch of AMP8 in April next year, it’s clear that employers are looking to pioneer new ways of working that can drive more efficient behaviour, and boost customer engagement and profit margins.

Water industry innovation

Northumbria Water is one example of an organisation that has adopted new and more creative processes that have led to it topping several customer satisfaction surveys in recent years. Its head of innovation, Angela MacOscar, believes that the external pressure being placed on the industry is driving more positive outcomes. “. When you are put under scrutiny, then things can change. So certainly, I see this as an opportunity in innovation to do things at a speed and pace which we wouldn't normally be able to do and that actually drives change.” The firm uses three ‘levers’ that drive changes in its operating model: transformations, continuous improvement and innovation.

Transformation means ensuring they have updated to the best tools for employees to run the business and services. Continuous improvement is about motivating employees to stay curious and challenge what they are doing to make small incremental improvements. And innovation, which is the ‘lever’ that MacOscar is most excited about.

After joining the firm in 2017 she aimed to build out an internal innovation ambassador programme across the entire organisation with over 100 representatives now in place who champion creative efforts across departments. She commented on this collective approach, saying, “We need the whole organisation to want to change, to be curious, and to encourage more to innovate, and we're definitely getting there.”

Another firm putting innovation first is Portsmouth Water, which has become the first water utility to adopt Kraken, Octopus Energy’s innovative technology platform. The organisation is using the software to oversee all of its 300,000-plus customers to reduce consumption, roll out smart meters, improve water efficiency and reduce leaks. Kraken will also enhance the speed to serve vital services such as Portsmouth Water’s social tariff for those on low incomes, and the priority services register. This register allows Portsmouth Water to identify customers who may need extra support in an emergency, such as young families or people living with physical and mental disabilities.

Both Northumbria and Portsmouth Water have taken advantage of a water industry software innovation fund that promotes collaboration across the industry, however, perhaps the former firm’s most notable achievement to date has been the creation of ‘The Innovation Festival’, six years ago. This annual event invites the public to suggest ideas and work on data hacks to address water industry challenges and wider social problems and has seen over 15,000 participants so far. It also brings guest speakers and guides from other sectors including the armed forces, healthcare and space who can identify solutions that could be applied to the water industry, for example, the use of satellite imagery and sniffer dogs to identify leaks more efficiently.

Data-driven solutions

Outside of the festival, one of the most transformational innovations identified by the organisation has now expanded across the country. Historically, construction teams had to rely on older utility maps when fixing key infrastructure with mistakes having highly costly and potentially even lethal consequences. This has been a major issue across all utilities; however, the idea of sharing data had been rejected by lawyers and regulatory bodies worried about data privacy. Northumbrian pushed through these challenges and developed a programme that incorporated a ‘Snapchat-like’ vanishing message app that provided consolidated maps to teams that automatically disappeared once the project was completed. After seeing its early success, the government then expanded the programme across the country and it now has over 300 companies taking part with an estimated £3.2bn worth of value added since its creation.

Another form of data-related innovation that has had positive outcomes was partly developed by Bentley. The firm recognised that organisations in the water industry were using dozens of different, isolated platforms for managing processes, billing and more, and identified a ‘data-twinning’ solution that unifies these systems, thereby boosting efficiency and enabling quicker decision-making. These are just two examples of solutions that can be identified by encouraging greater levels of creative and innovative thinking across the sector.

Skills demand

However, one major blocker to success in this field is the lack of available talent. Water companies are facing a major and growing skills shortage; The sector currently employs about 72,000 people and will need to add another 63,000 in the next decade. With a renewed focus on driving digital innovation, a growing proportion of that figure will likely be those with technological prowess, however many employers are finding that these specialists are being attracted to other sectors outside of water. This means that we are likely to see growing competition for the best, innovative and purpose-driven individuals in the market, and one potential way to get ahead of rival firms in other sectors is to promote the community aspect that roles in the water industry can offer

However, it’s not just digital skills that are in demand. As we approach AMP8, specialists will be required across the board, from site chemists to wastewater engineers. The clients that we work with see value in our ability to understand the nuances and varied regulations of the projects that we support them with. They also recognise our efforts to engage engineers that are pro-innovation and technological transformation and, in AMP8, we plan to continue matching these experienced engineers to our clients’ scheme requirements, ensuring the right fit which yields better results

If you need support identifying and recruiting professionals with the expertise and ability to innovate, then speak to our expert team.

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