#CulturePH - The Energy Sector’s Silent Saboteur: Outdated Systems
In the bustling energy sector, the push towards modernization is more critical than ever. The Philippines stands at a pivotal moment where meeting rising energy demand goes hand in hand with a digital overhaul that aligns the country with global standards in the utility industry.
A recent study by PricewaterhouseCoopers (PwC) reveals that by the end of 2026, 30% of tier 1 utilities will shift their IT approach from "built to last" to "built to change." This evolution underscores the urgent need to embrace digital transformation and create more agile, sustainable, and customer-centric services that are available anywhere, anytime. Companies that adopt this mindset are more likely to thrive in the long run.
This global shift aligns closely with local imperatives. The Philippine government’s Energy Transition Plan, outlined in the Philippine Energy Plan (PEP) 2023–2050, is not just a framework for decarbonization. It is also a timely push toward modernizing the country’s energy infrastructure and operations. Embracing digital transformation will be key to achieving the goals of the PEP, which envisions a more affordable, reliable, secure, and resilient energy future. But this vision will remain out of reach unless energy companies move away from outdated, inflexible legacy systems.
The energy sector’s path to progress depends on moving beyond traditional operations. Legacy systems, while once effective, now present serious limitations. They are costly to maintain, difficult to integrate, and unable to support data-driven decision-making.
delaware Philippines, a global leader in advanced ICT solutions and services, believes that real transformation begins with replacing these aging systems with modern digital solutions.
“As energy companies prepare for a more sustainable and customer-focused future, the role of IT becomes critical,” said Rosette Carrao, Partner and Managing Director at delaware Philippines. “Legacy systems are becoming a liability. Modern ERP systems allow energy providers to operate smarter, make faster decisions, and serve customers more effectively.”
For delaware Philippines, the following are the key benefits of moving off legacy systems and the risks energy companies avoid by doing so:
Lower operational costs through automation and efficiency: Legacy systems require increasing resources to maintain aging hardware, custom patches, and highly specialized knowledge. This leads to rising costs with limited business value. Modern ERP platforms automate and optimize business processes, reducing manual tasks, eliminating redundancies, and freeing up teams to focus on higher-value work. This means faster response times, lower operational costs, and better resource allocation.
Stronger security and system resilience: Many legacy systems are no longer supported by vendors and lack up-to-date security features. This exposes energy companies to cybersecurity risks and unplanned downtime. Cloud-based enterprise systems offer built-in security protocols, automated updates, and stronger system integrity, helping companies mitigate risk and ensure uninterrupted operations.
Real-time visibility and smarter decision-making: Siloed data and disconnected systems hinder real-time visibility. This prevents companies from responding quickly to network disruptions, regulatory changes, or shifts in energy demand. Modern ERP systems unify data across operations, providing real-time dashboards, predictive analytics, and AI-powered insights. This improves forecasting, speeds up decisions, and enhances overall agility.
Improved scalability and future-readiness: Legacy systems are rigid and struggle to support newer technologies like smart grids, renewable energy integration, or digital customer engagement. Scalable cloud platforms grow with your business, enabling companies to easily adopt new tools, integrate with smart technologies, and future-proof their IT environment.
Enhanced customer and stakeholder experience: With outdated platforms, customers face slower service, inconsistent information, and limited digital access. Internal teams, meanwhile, struggle with slow reporting and disconnected workflows. Modern digital solutions improve customer-facing services, such as mobile self-service portals, real-time usage data, and streamlined billing. Internally, teams gain access to shared data and tools that improve collaboration and transparency.
Sustainability and compliance reporting: Legacy systems often fall short when it comes to tracking environmental data or meeting new ESG reporting standards. With integrated enterprise systems, companies can track carbon output, monitor energy efficiency, and generate compliance-ready reports, empowering them to meet regulatory requirements and ESG goals.
As the Philippine energy sector accelerates its digital journey, companies must evaluate the systems at the core of their operations.
“This isn’t just about transforming old systems. It’s about building the foundation for faster decisions, leaner operations, and stronger customer relationships. Energy companies that modernize now will be in a far better position to scale, comply, and compete in the years ahead,” said Simone Pigason, Senior Vice President for Customer Success at delaware Philippines.
delaware Philippines is committed to helping the country’s energy providers modernize with intelligent, integrated solutions tailored to their needs. With deep expertise in various digital transformation solutions, delaware Philippines empowers energy companies to turn challenges into opportunities and build a future that is truly resilient, responsive, and ready for change.
To learn more about how delaware Philippines can support your digital transformation journey, visit www.delaware.pro/en-ph.
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