Digital Transformation in Water Utilities: Status, Challenges, and Prospects

While digital transformation in e-commerce receives the most publicity, applications in energy and water utilities have been ongoing for decades. Using a methodology based on a systematic review, the paper offers a model of how it occurs in water utilities, reviews experiences from the field, and derives lessons learned to create a road map for future research and implementation. Innovation in water utilities occurs more in the field than through organized research, and utilities share their experiences globally through networks such as water associations, focus groups, and media outlets. Their digital transformation journeys are evident in business practices, operations, and asset management, including methods like decision support systems, SCADA systems, digital twins, and process optimization. Meanwhile, they operate traditional regulated services while being challenged by issues like aging infrastructure and workforce capacity. They operate complex and expensive distribution systems that require grafting of new controls onto older systems with vulnerable components. Digital transformation in utilities is driven by return on investment and regulatory and workforce constraints and leads to cautious adoption of innovative methods unless required by external pressures. Utility adoption occurs gradually as digital tools help utilities to leverage system data for maintenance management, system renewal, and water loss control. Digital twins offer the advantages of enterprise data, decision support, and simulation models and can support distribution system optimization by integrating advanced metering infrastructure devices and water loss control through more granular pressure control. Models to anticipate water main breaks can also be included. With such advances, concerns about cyber security will grow. The lessons learned from the review indicate that research and development for new digital tools will continue, but utility adoption will continue to evolve slowly, even as many utilities globally are too stressed with difficult issues to adopt them. Rather than rely on government and academics for research support, utilities will need help from their support community of regulators, consultants, vendors, and all researchers to navigate the pathways that lie ahead.