Severn Trent Plc has held a Digital, Innovation & Technology showcase event for investors outlining how cutting-edge digital technologies are transforming the business and driving value for customers, employees  and shareholders.

Severn Trent said that by using cutting-edge digital technology and innovation it is driving improvements in customer outcome delivery incentives, developing a more efficient workforce and underpinning its ability to generate totex efficiencies.

Digital technology is also being used to enhance Severn Trent's understanding of its network and prioritise investments to position its asset base for the current and future regulatory periods. 

Severn Trent told investors that its digital strategy is making a huge difference today and that it was continuing to drive and embed a digital future.  All of the investments pay back on a two year basis.

The water company has also established a new customer management portal which collates diverse sources of information into a single, insightful view of the customer. It also has a multi-channel offering for customer contact in place, including self service, web chat and social media. According to Severn Trent, it is currently the only water company with 24/7 availability for all calls, not just emergencies.

The water company is targeting a significant annualised run rate totex reduction of £20 million via a range of improvements e.g. reducing operating costs, less travel time, shorter time per job and more efficient use of chemicals and consumables.

Severn Trent said it is taking smarter investment decisions through a range of measures:

• Improving data capture of asset health and maintenance tasks
• Using analytics to predict asset deterioration
• Reducing risks by real-time water quality measurement and insight
• Creating a culture to embrace new technologies, including satellite imaging, to continually reduce costs and risks.

Digital technologies now being used across the company include new apps and devices,  a new network modelling system, new quality analytics,  connecting sensors and analytics to prevent flooding and pollution and the development of satellite imaging. The firm is also looking at developing opportunities for further efficiency through innovation, such as drone inspection.

Apps play a key role

A wide range of apps are now being used by Severn Trent, including:

• new fieldworker apps and devices
• new stores apps and centres
• new treatment works appn
• new colleague app for customer ODIs
• supply chain now on fieldworker app
• new risk management app

The new devices being used, with easier to use fieldworker applications, improved connectivity and greater mobility, include the latest version of Panasonic’s Toughbook.

Severn Trent’s own internal app team have built two new applications for use in the field;

SiteSnap

• Simplifies the creation of 100,000 traffic management sketches per year
• Reduces the number of permit application rejections
• Saves technicians 20 minutes per day, equating to £360k per year

SiteView

• App records evidence of compliance with strict Highways Authority requirements
• Severn Trent expects to avoid £250k per year in fixed penalty notices

The utility has also consolidated its stores into three regional distribution centres and six satellite stores and implementated new stock management technology. Barcoded stock control has been used to create a supermarket style self-service experience. The new system has improved stock availability, reduced risks and enabled better supplier discounts, generating savings of £1.2 million per year through improved stock availability and reduced one-off purchases.

Looking for new opportunities to use satellite technology

In other areas of the business, Severn Trent is exploring options to use satellite technology to enhance asset monitoring and inspection regimes. The firm is actively looking for new opportunities to use cutting-edge satellite technology.  The first pilot has the potential to help identify leakage locations and will help reduce the cost to resolve leaks. The technology works by identifying interactions of soil and chlorinated water – Severn Trent said it would seek to roll it out further if it could demonstrate a strong return on investment.

Expanding use of data and analytics

New high-speed data loggers are also being deployed around the network to support a move to prediction and prevention. The loggers provide real-time information directly to the control room, enabling the identification of pressure spikes which can lead to asset failure. The technology helps identify the root cause of failure to assist prevention and  enables proactive intervention to prevent assets from deteriorating – avoiding £1.5m in customer ODI penalties.

Severn Trent said it is using the wealth of data in its systems to build analytical capabilities and help analyse the network,  expanding the use of data and analytics to support overall management of asset health.

In its wastewater network, the water company is using an operational decision management tool to help identify blockages in the network and automate decision making. Data from 1,000+ loggers combined with historic data and weather information can be used to identify when a sewer is most likely to be blocked. The system helps prevent flooding and pollution incidents, improving Severn Trent’s predictive capability by 33%, reducing pollution incident by 50 per year and avoiding £3 million in penalties.

Intelligent pumping stations to optimise pumping operations

The company is also looking at intelligent pumping stations and catchment control – a network pumping station trial is utilising machine learning, automation and remote control to optimise pumping operations. Severn Trent is also collaborating with the supply chain to create intelligent assets within the network – the overall aim is to optimise the network by utilising the large amount of latent storage.

Severn Trent’s new app-based Operational Risk Management (ST-ORM) system allows easy recording of operational risks identified and enables employees to record all operational risks, realtime, wherever they are on mobile devices. The firm is forecasting £400k per year totex saving through proactive risk mitigation.

New drone technology is also being used to inspect assets - applications including asset inspections, leading to savings from absence of scaffolding and minimised health and safety risks.

Estimated inspection cost savings of £300k per year and the utility is also currently exploring other uses, such as checking that treatment processes are optimised.

Pushing forward with technological advancements can continually drive down costs and risks

Liv Garfield, Chief Executive Severn Trent Plc, said:

"I am delighted to be showcasing how we are truly digital in what has been perceived to be an analogue sector and driving clear value for all our stakeholders. Being at the frontier of adopting digital technology and innovation positions ourselves to drive value in our company which leads to a better experience for our customers and strong financial rewards for our shareholders.”

 “Digital technology and innovation enables us to provide our core products; water, waste and retail services at the right costs and to the right quality. It makes us work more efficiently, helps manage our energy costs, and optimises the way we buy and use consumables. It also helps to reduce our cost to serve and bad debt management.”

 “We are committed to maintaining our upper-quartile position versus our peers in our waste business and moving to upper quartile in our water and retail business, and I am excited to be able to show just how digital is being used to do this. By pushing forward with technological advancements - all of which pay back under two years - we believe we can continually drive down costs and risks in our business and build an enduring track record of high operational and financial performance now and into the future."