1envisioningtheJULY2017DIGITALUTILITYOFTHEFUTUREACKNOWLEDGEMENTSNACWAwouldliketothankthemembersofitsSmartUtilityTaskForcefortheircontributionstothispaper.SpecialthankstoBijuGeorge,ChiefOperatingOfficerforDCWater,andChairoftheNACWATaskForce.COPYRIGHTINFORMATIONThisworkisprotectedbyacopyrightownedbytheNationalAssociationofCleanWaterAgencies(NACWA)andmaynotbereproducedortransmittedinanyformorbyanymeanswithouttheconsentofNACWA.Copyright©2017NationalAssociationofCleanWaterAgencies.CONTENTSIntroductionBecomingaDigitalUtiltyoftheFuture1.ReducingOperationalCosts2.ManagingandMitigatingRisks3.EnhancingtheCustomerExperience4.ImprovingFinancialExecution5.OptimizingAssetPerformanceandUncoveringHiddenValue6.LeveragingExistingCommunicationandComputingPlatforms7.MaximizingtheEngagementandEfficiencyofEmployees8.IntegratingWaterQuality,PolicyandPerformancePuttingItTogethertoBuildaDigitalUtilityoftheFuture4IntroductionInnovationinthemunicipalcleanwaterutilitysectorhasbeenexpandingrapidlyoverthepastseveralyears.Notlongago,cleanwaterutilitieswerecontenttodotheirjoboutofsightandoutofmindusingtraditionaloperationaltechniques.Butnowtheyseektobemoreactivepar-ticipantsinensuringtheeconomicandenvironmentalsustainabilityoftheircommunitiesbypursingnewbusinessmodels,advancingcreativeideastochallengingproblems,andproducingvaluableproducts.ThisspiritofinnovationiswhatinspiredtheNationalAssociationofCleanWaterAgencies(NACWA),theWaterEnvironmentFederation(WEF)andtheWaterEnvironment&ReuseFoundation(WE&RF)todeveloptheWaterResourcesUtilityoftheFuture(UOTF)Blueprintin2012.Atitsheart,theUOTFmovementisaboututilitiesgoingbeyondjustcomplyingwiththeCleanWaterAct(CWA)toembraceinnovativeapproachesandtechnologiesrelatedtoenergyproduc-tion,waterreuse,greeninfrastructure,non-traditionalpartnerships,andmore–alltoimproveenvironmentalperformancewhileloweringcostsandincreasingrevenue.AnemergingcomponentoftheUOTFarenaisthegrowingreli-anceondata-drivendecisionmaking.Thetechnologicaladvancesincloudcomputingandcommunications,coupledwithanalyticcapabilitiesareenablingcleanwaterutilitiestobetterusethedatatheyalreadyhaveandtoplanandexecutenewwaysofcollectingdatathatareimprovingtheefficiencyoftheiroperations.Throughthesedata-drivenapproaches,theDigitalUtilityoftheFutureisreducingcosts,mitigatingrisks,enhancingthecustomerexpe-rience,optimizingperformance,andgainingefficiencies,allwhileimprovingwaterqualityandtheenvironmentmorebroadly.TheDigitalUtilityisdescribedherebyitscharacteristicsandwhatitcanachievenowandintothefuture.Aswithanyinnovation,theextentofadoptioninthewatersectorisatvaryinglevelsacrossaspectrum.AsobservedwiththebroaderUOTFeffort,furtheradoptionwillproceedalongacontinuumandwilldependonanumberoffactors.Ourhopeisthatthisdocumentcanillustrateforutilityexecutivesthebenefitsofcontinuedadoptionofthesetechnologiesandpractices.Ultimately,theWaterResourcesUtilityoftheFuturewillnodoubtbecommittedtodata-drivenmanagement.Datamanagementalreadyisreshapingtheindustry,helpingutilitiesorder,inrealtime,robuststreamsofrawinformationfromdisparatesystemsintocoherentandactionableintelligence.TheDigitalUtilitywillbebestequippedtomeettheultimategoalofthesector–thedeliveryofreliable,safeandaffordablewaterservices.“IMPROVEENVIRONMENTALPERFORMANCEWHILELOWERINGCOSTSANDINCREASINGREVENUE”5BecomingaDigitalUtilityoftheFutureOVERVIEWWhatdodataandinformationmeantoutilitymanagement?Todayitvariesdependingontheutility,butfortheDigitalUtilityoftheFuture,gatheringofallformsofdataandcreat-ingmeaningandvaluefromitwillbecomeafoundationalelement.Generated,loopedandanalyzedinendlesslyflowingandseamlesslyconnectedsystems,datawillbethelifebloodoftheutility.Factsarepoweranddigitaldataareespeciallypowerfulbecauseofrecentadvances.Thelatesttechnology–miniaturesensors,handhelddevices,cloudstorage,softwareprograms–givesorganizationstheabilitytogatherandsee,intheblinkofaneye,informationintegratedfromallpointsacrosstheutilityenterprise.Extraordinaryinsightsaredeliveredthatcaninformeffective,cost-savingdecision-makinginrealtime.Withoutthisintegratedunderstandingofsystemperfor-mance,cleanwaterutilitieswillbeconstrainedintheirabilitytorespondtotheoperationalchallengestheywillfaceinthefuture.Asotherindustrieshavelearned,businessasusualapproachesarecomingunderincreasingpressurefromcustomerswhoarewaryofincreasingcostsandwhohavecometoexpectinformationtobeavailableatthetouchofscreen.Cleanwaterutilitiesarefacinguniquepressures,includingmountingregu-latorycostsandassetsandinfrastructurethathaveagedwellbeyondtheirplannedlives.Thisisthreateningwatersustainabilityandreliabilityandisraisinggrowingconcernsabouttheaffordabilityofwaterservicesintothefuture.Asadata-drivenoperation,theDigitalUtilityoftheFuturemakesrelativeperformanceimprovementsthroughanalyticsandcollectiveindustryadvancementfrominsightsgleanedfromanalyticsandbenchmarking.Italsoleverageslimitedresourcestodomore,proactivelyidentifyingissuesbeforetheybecomeseriousproblems,anddrivingefficienciesthatcanfreeupfundingforimprovementsandrepairs.Dataanalyticscanbeuse