Do you think two kilograms is a lot? Of course, the answer to this question requires us to clarify. Two kilos of meat seems excessive, but each of us would like to have at least two kilos of gold or diamonds. Unfortunately, today you and I are not going to be talking about precious materials but trash. Every day, the average American produces more than two pounds of organic trash (Leahy, 2018). To better understand this scale, let us assume that this garbage could be recycled into energy. Now, such recycling would provide total electricity for a family of three Americans (Food waste greenhouse, n.d.).
In this scenario, we would no longer depend on nuclear reactors or energy-intensive power plants: our garbage would power our homes. In fact, such a way already exists: it is biogas. Using biogas technology would allow humankind to reduce our carbon footprint and harm nature significantly. In addition, it would save us about a hundred dollars every month (Wong, 2020). So we all have a vested interest in the development of biogas technology. In todays speech, I will not only tell you about the technical basis of biogas, but I will also tell you why all households should switch to this form of energy supply in the next decade. Nevertheless, first of all, why is it important to talk about this in the first place?
In fact, the Earth is already choking on that garbage. Of the total garbage generated, only one-third is recycled, and the rest is not properly disposed of (Hallman, n.d.). Imagine that out of ten bananas you buy at home, and only three skins will go into the trash can. The rest of the waste will be scattered all over the rooms so that you will not be able to find an empty spot on the floor after a month. Let us not forget that such deposits have adverse effects. Short-term effects include extreme increases in ammonia and hydrogen sulfide levels near the dump (What are the adverse effects, n.d.).
These entail the development of coughs, asthma, and pneumonia in local residents. In the long run, on the other hand, landfills degrade groundwater quality, disrupt the environment, and harm the entire biosphere (Przydatek & Kanownik, 2019). We can expect that in the absence of concrete measures to eliminate landfills, the entire world will drown in excessive amounts of waste, causing murderous harm to everything around it. In the U.S. alone, more than two thousand active landfills are filling every state and dragging America into a garbage pit (Peters, 2016). Biogas becomes the revolutionary solution that solves all of these problems and saves money.
Instead of burying garbage hopelessly, everyone should come up with the idea of biogas recycling. Biogas plants are actually machines that use organic garbage as raw material and produce a considerable amount of electricity as a product (Bharathiraja et al., 2018). The conveyor belt is the best illustration of what happens with such installations. Food waste, agricultural garbage, organic debris, and even corpses: are all converted into biogas by bacteria. The resulting mixture of gases is then combusted, which produces up to 6 kWh of energy from a cubic meter of waste (How much energy, n.d.). This is about the same as what natural coal can provide (Hofstrand, 2014). Thus, the trash that used to be simply tossed into the ground turns out to be precious fuel.
If you thought that was the only advantage of biogas, you are very wrong. Once all the gases have been isolated from the organic garbage, a dry, highly concentrated mixture will be left. This substance is an excellent fertilizer that can be sent to farmland (Use of bio-slurry, n.d.). In addition, this residue allows for active carbon sequestration in the soil, reducing the carbon footprint. Thus, the use of biogas plants has three positive effects at once. Recall, that it allows recycling garbage, getting electric power, and generating high-efficiency fertilizer. However, is all this important?
Maybe humanity should not chase fashionable environmental trends and instead just relax? We can do that, but if we do, we must be prepared for the consequences. The amount of trash generated per day is projected to increase by 315 percent by the year 2100 (Stromberg, 2013). In other words, every day, you will consume not ten but thirty bananas, 21 of which will litter your room. In that case, your floor will lose all of its empty spots after ten days, not thirty. The same change would happen to the Earth: humanity would not be able to cope with so much littering and would probably eventually die. So what can be done to prevent such a crisis?
Already now you can help the whole world to improve the ecological situation. To do this, each of the people must come to understand the monstrous consequences that await the Earth in 100, 10, and even one year. The amount of garbage will only increase, but it is in our power to control it. Create a public petition, circulate it to all your friends, and openly declare the need for peaceful trash revolutions. That is the only way the government and society can come to understand the urgent need to take action.
Hence today, we have discussed a critical problem on the environmental spectrum, namely trash. It is unlikely that the amount of garbage will ever decrease, but humanity must put all its resources into changing the agenda. Biogas plants are a great strategy to solve three problems at once. Biogas utilizes organic waste, generates electricity, and produces high-quality fertilizer. The use of such stations will qualitatively change our lives and increase our environmental security.
References
Bharathiraja, B., Sudharsana, T., Jayamuthunagai, J., Praveenkumar, R., Chozhavendhan, S., & Iyyappan, J. (2018). Biogas production a review on composition, fuel properties, feedstock and principles of anaerobic digestion. Renewable and Sustainable Energy Reviews, 90, 570-582.
Przydatek, G., & Kanownik, W. (2019). Impact of small municipal solid waste landfill on groundwater quality. Environmental Monitoring and Assessment, 191(3), 1-14.
The purpose of the study is to examine trends and patterns of the variation in the consumer price indices (CPI) for gasoline and electricity in Canada. CPI is an integral economic indicator used in the assessment of the inflation rate of a country and the cost of living among consumers.
Trends and patterns of CPI reflect the variation in inflation and consumer rates. In this case, the study collected CPI for gasoline, electricity, and all items because they are values that relate to the consumption of energy in Canada. The data for gasoline CPI represented the non-renewable market, whereas the data for electricity exemplified the renewable market of energy in Canada.
According to Natural Resources Canada (2013), Canada produces 63% of its electricity from renewable sources of energy, mainly from hydroelectric power plants. Among countries of the Organization for Economic Cooperation and Development, Canada is the second leading consumer of gasoline, a non-renewable form of energy, in the transport and manufacturing industries (Moshiri & Aliyev, 2017).
For comparative analysis, CPI for all items was also used in the study. The selected variables are significant because economists employ CPI in predicting inflation and purchasing powers of consumers in various markets, represented by different categories of products and services.
Data
The selected data comprised CPI for gasoline, electricity, and all items commonly purchased in Canada. In the selection process, CPI variables and their annual frequencies were searched and then retrieved from an online database (Statistics Canada, 2019). The online database is suitable because it contains valid and accurate economic data for reliable decision-making. Given that the database has diverse forms of data, the appropriate variables of CPI were downloaded in the format of.csv and saved in.xlsx in MS Excel.
Subsequently, these variables were filtered in MS Excel and CPI for gasoline, electricity, and all items were selected. Since the selected data comprised of time series from 1949 to 2018, the recent data from 1980 was chosen for analysis (Appendix).
Moreover, a composite index for gasoline, electricity and all items was calculated by averaging their indices and using 1980 as the base year. Individual or composite CPI for gasoline, electricity, and all items are important economic indicators in the Canadian economy since they reflect variations in prices, inflation, and purchasing powers of consumers over time.
Analysis
Central Tendency
The measures of central tendency (Table 1) were used to calculate typical CPI values for gasoline, electricity, all items, and the average index.
Table 1. Measures of Central Tendency.
Gasoline CPI
Electricity CPI
All Items CPI
Average Index
Mean
107.79
93.48
93.83
98.37
Median
85.20
90.80
92.90
89.53
Count
39
39
39
39
The means of CPI for gasoline (M = 107.79) is the highest followed by those of average index (M = 98.37), all items (M = 93.83), and electricity (M = 93.48). These findings indicate that the price of gasoline increased by an average of 7.79%, whereas those of average index, all items, and electricity decreased by mean values of 1.63%, 6.17%, and 5.62%, respectively. Moreover, medians show that CPI for gasoline (85.20), electricity (90.80), all items (92.90), and average index considerably exhibited deflation in prices for the last 39 years (1980-2018).
Figure 1 shows increasing trends of CPI for gasoline, electricity, all items, and the average index from about 40% in 1980 to approximately 150% in 2018.
Figure 1. Trends of CPI for gasoline, electricity, all items, and average index in Canada.
The analysis of patterns shows that gasoline had significant fluctuations since 2003, while electricity and average index depicted small variations. Low CPI experienced in 2009 and 2016 is due to declining oil prices and adverse economic growth (Dawson, 2018). Comparatively, the trend line of CPI for all items remained steady over time, depicting a positive and consistent drift.
Blatchford (2019) reports that the inflation rate is high because Canadians pay for increased prices in air transport, vegetables, and gas by 28%, 15%, and 8%, respectively. Thus, the CPI forecast depicts that the inflation rate in Canada will continue to increase until the economy registers stable growth.
Composite CPI
Figure 2 indicates an increasing trend of composite CPI from 100% in 1980 to the current value of about 380% in 2018. The trend implies that the current CPI in Canada has increased by about four times (380%) since 1980. The prices of energy, both gasoline and electricity, have increased in response to the economic growth, as well as due to increasing income level and expenditure among Canadians (Natural Resources Canada, 2013; Moshiri & Aliyev, 2017). The apparent fluctuations tend to follow the trend of global oil prices when compared to the prices of other products in the market.
Figure 2. The trend of Composite CPI.
Conclusion
The consumer price index plays a central role in economics because it indicates the degree of inflation and depicts variations in the purchasing power of consumers. The analysis of Canadian CPI shows that the mean of gasoline CPI is higher than that of electricity.
Trend analysis indicates that CPI for gasoline, electricity, average index, and all items have been increasing and fluctuating since 1980. The trend of the composite index indicates that CPI has increased by about 400% since 1980 with significant fluctuations tallying with recessions in oil prices. Thus, the findings suggest that CPI for gasoline is more volatile when compared to that of electricity or composite index.
Moshiri, S., & Aliyev, K. (2017). Rebound effect of efficiency improvement in passenger cars on gasoline consumption in Canada. Ecological Economics, 131, 330-341. Web.
The electricity industry in Australia is at its peak, after implementing reforms in the 1990s. The reforms pushed the structure of the industry to embrace market factors, although it currently has mechanisms of government interferences with demand and supply forces. This report looks at the composition of electricity generators and their sources of electricity. The industry has particular characteristics of each state and a national outlook too. Electricity generators directly serve the demand for particular states or regions. They establish their generation plants near the demand areas so that there is little need for high voltage transmission. The structure allows Australia to enjoy high distribution efficiency. At the same time, there is less waste of power in the market, as demand automatically matches the supply because the industry regulators relies on a special system for handling offers and requests in the national electricity market.
The report highlights the current policy challenge facing electricity generating companies that rely on renewable energy sources like wind and solar. The country promotes the development of the renewable energy sources of electricity through a special development plan.
However, the plan is yet to become a legally binding policy. The government and opposition parties are debating in parliament about the proposed constitution and the support for the segment as part of the overall electricity industry. The report also looks at the contribution of the industry to the Australian economy. It highlights past improvements and cautions against any regressive policies or trends, as they can affect the countrys economic growth negatively. The report also evaluates the consequences of various policies in the discussion of the industry structure and its role in the country, and then reviews Infigen Energy Limited as a case study.
Analysis of the Current Structure of the Electricity Industry in Australia
Australia initiated market reforms of its electricity industry in the 1990s. The country developed the national competition policy (NCP) to introduce private ownership of electricity production. At the same time, the National Electricity Market took the design of the UK electricity industry model. Notable events in the reform period included the selling of Victoria assets of the statutory authority to the private sector. Other states in Australia followed different reform schedules, such that the entire country had a functioning private sector in the electricity industry by 2003.
The National Electricity Market (NEM) and South-West Interconnected System (SWIS) are the largest networks of electricity serving the eastern states, South Australia, and West Australia. They cover 95 percent of the market. The remaining 5 percent belongs to off-grid industrial and remote community networks (AEMO 2015).
Figure 1: The electricity market distribution in Australia (Australian Energy Regulator 2014).
Each Australian region has a network. Western Australian has 40 non-interconnected networks that receive electricity from the state-owned Horizon Power. The North-West Interconnected System (NWIS) is part of the Western Australian network. It is about a tenth in size of the SWIS. The northern territory has Darwin Katherine Interconnected System (Engineers Australia 2013).
Figure 2: Distribution of electricity networks in Australia and overall electricity consumption breakdown (Australian Energy Regulator 2014)
The Australian government has policies that intend to boost economic efficiency and development in the energy sector. The policy focus is responsible for a number of reforms geared towards opening up markets in the electricity industry. Each state in Australian has an agreement with the government to implement a national energy market called the Australian Energy Market Agreement presently overseen by the Standing Council of Energy and Resources (SCER). Meanwhile, the Australian Energy Regulator (AER) enforces the rules that come from the Australian Energy Market Commission (AEMC). The Australian Energy Market Operator (AEMO) manages the eastern states and territories, while the Independent Market Operator (IMO) is responsible for the West Australian electricity market.
In addition to economic efficiency, policies governing the electricity industry aim to improve energy security by ensuring that there is an adequate supply of gas and electricity. In addition, the policies aim to increase safety and customer service. The regulator applies technical safety standards, together with occupational health and safety rules. It also ensures that there is customer protection under the National Energy Customer Framework. Other policy concerns are greenhouse gas emissions management, renewables, and energy efficiency improvement-schemes for solar-feed-in-tariffs.
Every state has a connected transmission and distribution grid. Five regions in the country rely on high voltage interconnections, permitting inter-regional trade up to physical capacity limits. Therefore, different regions have different wholesale prices of electricity. Wholesale trading happens on a spot market. Traders match supply and demand instantaneously and rely on a centrally coordinated dispatch process. The generators of electricity give proposals for electricity supply in intervals of five minutes daily. The bids are won by the generators who qualify, according to the policy set by the AEMO. After making the decision, a particular generator proceeds to enter into production.
The market uses price as a proxy for marginal economic costs to consumers, which arise due to loss of supply. A price cap placed by the NEM rules captures the maximum allowed price of electricity, according to the consumer price index. At the same time, the NEM allows bilateral contracts between electricity generators and consumers, and then moves the balance demand and capacity in the wholesale spot market.
Population and economic growth are key drivers to increase in electricity demand in the NEM. The consumption of electricity declined in absolute terms after 2009-2010. Overall, industrial consumption decreased due to global economic conditions and the high value of the Australian dollar in comparison to foreign currencies. Rising prices of electricity and energy efficiency mandates by the government also led to a reduction in per-capita use of electricity in the residential sector.
Consumption should increase moderately in the coming decade. Population growth in East and South Australia will likely cause gradual stabilisation of residential electricity prices. New liquefied natural gas projects are coming up in Queensland, and they should increase supply to counter the rising demand. Technological advances in the motor industry, which have led to production of electric vehicles, will likely contribute to a significant rise in the demand for electricity. On the other hand, buildings and appliances continue to become energy efficient, which will moderate the increase in electricity demand in residential markets. The use of small-scale solar photovoltaic installations will also reduce the need for a high capacity generation in centralised plants (DEWS 2013).
The cost of electricity includes retail operation costs, network costs, and wholesale electricity costs. Retail cost determination happens after every one to three years, and it includes customer acquisition and retention costs, billing, and meter reading costs. The network costs review takes place after five years and considers network revenues as capped by the Australian energy regulator. Wholesale electricity costs change every five years in consideration of prevailing conditions in the NEM. They include price caps, but the provision of spot prices ensures that the caps are less binding (Reserve Bank of Australia 2014).
Up to 10% of the electricity that Australia generates comes from sources that can be replenished. Hydroelectricity contributes more than half of the figure, while the rest comes from solar and wind power sources. Australia promotes investment in renewable sources of electricity generation through a programme called the Renewable Energy Target. Currently, the country depends on coal for the generation of electricity. Only Denmark and Greece surpass it in terms of coal-generated electricity. The situation arises because of vast deposits of the natural resource available in the country and a well-developed coal extraction industry. Growth in total electricity production was most significant from 1990 to 2000. There has been growth from 2000 to the present, but at a lesser degree than in the previous decade.
Australia has a real time balancing mechanism for electricity supply and demand. The system used by the NEM ensures that there is a match at all times. Renewable generators of electricity get a five-minute window to fulfil their obligation before delivery.
Transmission demands for Australia are lower than those of the Organisation for Economic Co-operation and Development (OECD) countries. The main power generation centres are near the main load centres and directly fed to the distribution. Thus, the network is more efficient, as it avoids electricity losses associated with long transmission networks. The southern Australia part of the industry has a different grid network from the northern part (World Nuclear Association 2015).
Environmental concerns in the electricity industry are low. The country enjoys a good record in dealing with emissions. The government penalises coal miners and processing companies when they surpass the allowed emission levels of sulphur dioxide. The penalties have compelled coal producers to invest in expensive and efficient equipment to avoid withdrawal of their licenses. The industry produces 33 per cent of the total CO2 emissions in the country through generation. Additional emissions arise out of transmission and distribution activities. Generators use two different types of coal, and each has a different emission level. Generally, brown coal generators produce more CO2 emission than black coal producers. Gas powered electricity generators are also a major source of CO2 emissions (Nelson, Kelley & Orton 2012).
Political influence is a major factor in Australias energy policy. Currently, the country is facing a challenge of passing legislation to support the RET scheme. Laws have to pass through parliament, where the government and opposition party members have to debate and vote. The current coalition government faces difficulties in passing laws in parliament because it lacks a clear majority. Other than the two main parties, there are also members who are elected for independent terms and do not have to conform to any partys positions. The complexity of the political structure of the country is not a major hindrance to the full realisation of the market potential of renewable energy source of electricity.
Effect of the Structure on Strategic Decisions
The resilience of the wholesale market and spot price mechanism to determine the price of electricity presents responsive challenges to consumer prices. Consumers have to wait for generators to evaluate the costs of their investments, and then pass the margins to the wholesale market for consideration by the regulators. The time taken for regulators to evaluate the suitability of a given price proposition with the goals of electricity distribution all over the country ends up affecting the response time. However, the reliance on an automated system ensures that the problems associated with the above reasons are minimal (Brinsmead, Hayward & Graham 2014).
The price caps placed by regulators limit the competition at the retail level. Therefore, firms serving residential and business consumers of electricity cannot initiate programmes that influence their capital resources significantly. They have to consider the available margin of price variation. Their aim is to determine whether it is enough for them to recoup their investment. The price capping policy at the residential level eventually leads to reduced investment in the sector, as companies avoid tying their capital to long periods for getting a return on their investment (Eldring 2009).
Different states and regions in the country have special regulations for their electricity industries. Therefore, companies have to enter into multiple agreements with different state entities to operate in their jurisdictions. The requirements create inefficiencies on a country level and introduce additional costs of implementing company strategic plans. The regulators must consider the expenses that are incurred when distributing electricity in order to enhance efficiency in electricity distribution. However, they review the rates annually or bi-annually. Unfortunately, firms need a more flexible operating environment that allows them to capture opportunities in the short term. In the present situation, firms will have to seek approval or wait for consideration of their business practices by the regulatory authorities before they can implement solutions on a wide scale (Aghdam 2011).
Despite the challenges that the various regulatory arrangements in Australia create for electricity generators and distributors, the market reforms of the 1990s have had a positive influence on the overall competitiveness of the industry. However, not a lot has happened on the demand side of the market. The reforms and present policies seem to influence a reduction in the overall costs of electricity in the country. However, they do not do enough to spur demand (Sehgal 2011).
Customers are encouraged by stable prices or affordable electricity. However, demand quickly recedes when there are unavoidable spikes in prices due to global and local economic factors. Eventually, reduced demand will not influence supply decisions positive. Most distributors will have to consider merging to enjoy economies of scale. Otherwise, new investments into the industry may slow down because of reduced demand (Bryman & Bell 2011). Thus, when looking at the Australian situation from a long-term perspective, there is a need to initiate reforms that will cause demand for electricity to rise beyond the present levels so that there is overall monetary stimulation for private companies to increase investments in distribution and generation. Without such reforms, the present structure will continue limiting active participation and innovation to the basic minimum (AEMC 2012).
Support for renewable energy production through RET will make investments into the sector attractive. However, regulators have to review the price regulation regime affecting the electricity industrys attractiveness. They have to consider separating renewable sources or compensating renewable energy producers as an incentive for additional investments.
Contribution of the Sector to the Australian Economy
The electricity industry plays an important economic role of providing a key resource for business functionality and general operation of economic activities. The penetration of electricity networks is high in the country, which ensures that consumers can enjoy benefits such as running appliances at home and powering equipment at various institutions. Low prices of electricity are crucial for overall competitiveness of the Australian economy. Goods produced at cheaper production costs end up attracting lower prices or supporting high profit margins. The total cost of electricity in Australia is expected to rise in the future. Households will spend 50 per cent more in 2020 if the current structure persists. However, improvement in the renewable electricity generation segment should translate into lower prices, according to the estimates included in the RET scheme (Clean Energy Council 2014).
Growth in the electricity industry should lead to improvements in investments in the sector. At the same time, there is an increase in employment. Overall, the sector continues to increase consumer incomes through salaries and dividends. It also avails capital for the development of new energy projects by various firms keen on expanding to meet demand needs. The Clean Energy Council (2014) estimates that following the RET scheme will help Australia generate 18,400 new jobs by 2020, which will come from large-scale wind projects and solar projects. There is room to make long-term projections for the industry and the general economy, given the current relative stagnation of electricity demand growth. Stability in demand caused by the industry structure should lead to lower levels of consumer inflation due to energy prices. Reduced inflation promotes long-term business planning and boosts the investment attractiveness of the Australian economy (Narayan & Smyth 2005).
Infigen
Infigen Energy is Australias leader in renewable energy electricity generation. The company owns and operates the largest wind farms in Australia. It has a projected total generating capacity of 1600 GWh annually in the long-term. The electricity is sufficient to cover the needs of more than 200,000 Australian homes. The companys strategy is to increase its investments in solar and wind projects in the country. The currently installed wind power capacity is 556.6 MW, which is distributed in six wind power plants.
Steeply rising electricity prices have been the main motivations for households and businesses purchase of solar PV installations. The lifetime of wind farms ran by Infigen is about 25 years, although regulatory authorities specify 30 years as the typical period. At the same time, Infigen models its solar farms to operate for 25 years (Infigen Energy 2014).
SWOT Analysis
Strengths
A high production capacity ensures that the company is able to meet any rise in demand for renewable electricity. At the same time, investments in research and development in its major business in the United State offers the company a repository of solutions to implement in the Australian market. Reliance on power purchase agreements spares the company the challenges of competing directly with its rivals, who are established companies in the electricity generation business. Being a renewable energy producer places the company in favourable terms with environmental and business sustainability policies and concerns supported by different groups in Australia and globally (Infigen Energy 2013).
Weaknesses
The wind and solar power technologies are susceptible to weather changes. In 2014, Infigen Energy had a drop in revenues because of poor wind conditions. The company also has debt exposures that affected its net income (Parkinson 2013). Wind and solar energy generation technologies evolve fast as researchers seek to improve efficiencies and lower the costs of production. However, the company cannot easily write off its existing investments in the present technology when a new and better technology is available in the market. The company can only invest new technology in its new generation plants (Infigen Energy 2014). Therefore, it has to plan before developing or purchasing any technology that has long-term implications.
Opportunities
The company faces a substantial investment opportunity in renewable energy generation and supplies distribution. However, the opportunity remains frozen, until the Australian parliament passes legislation to support the RET scheme (Macdonald-Smith 2015). While facing a threat of boycott to renewable energy by retailers, Infigen Energy also faces opportunities of dealing directly with corporate consumers. However, the scale of the opportunity is low, while the available demand offered by retailers in the NEM is high (Parkinson 2015). Globally, big corporate consumers are opting to fund wind and solar power generation and then enter into long-term generation partnerships with wind and solar power expert companies such as Infigen. The company can also pursue other markets other than Australia, until the present delay in supporting renewable energy policy is over.
If the current RET legislation passes as it is, then there should be numerous opportunities in the industry to cover more than the 32,000 GWh proposed by the Labour Party under the current debate (Elliston, Diesendorf & MacGill 2012). The Labour Party is seeking to increase the allocated electricity generation for renewable energy. It wants wind and solar plants to have a substantial share of the overall electricity production in the country. The need to increase employment and expand the economy is informing the Labour Partys position in parliament (Maher 2015). The original proposal of RET would have 41,000 GWh of electricity generated, where 4000 GWh comes from rooftop solar installations in homes and business premises around the country (Maher 2015).
Individual states have the power to make legislation affecting electricity generation and distribution; thus, Infigen Energy can lobby specific states for investment opportunities as it awaits the final verdict on the RET scheme.
Threats
The company is vulnerable to any changes that can happen on the RET scheme, which is currently facing an uncertainty about its legislation. Debt repayment schedules are susceptible to changes in interest rates and currency value. A threat by major electricity retailers to withdraw their demand for renewable energy can cause the entire business of Infigen to disappear. The company relies on power purchase agreements and wholesale selling to the retailers. Without retailers, it will only have direct sale agreements that are not easy to achieve for the established plants and consumers (Parkinson 2015).
Failure to pass the appropriate RET legislation will promote the current situation in the market. It is easier for coal plants coming up near residential markets than wind farms. The current legislation wanted to improve electricity generation, but it did not take into consideration environmental concerns at the time of enactment (Whitlock 2015).
Porters Five Competitive Forces Analysis
Power of buyers
Renewable energy power producers rely on electricity retailers to advance their generated electricity to consumers. The arrangement happens through the NEM, which operates an automatic target match of demand and supply. Specified market forces, such as the prevailing inflation rates and disposable incomes of residential consumers, determine the prices. The government places caps on wholesale prices. At the same time, retailers also affect prices by quoting bids during every review process by the market. The arrangement gives the sellers and buyers equal rights in determining prices. However, retailers can also decide their choice of power sources. It is possible for retailers to boycott power from particular sources, but it is impossible for them to affect the ceiling price adversely.
Power of sellers
Electricity generators relying on wind and solar power sources are few in Australia. They also satisfy specific market needs provided by power-purchase agreements. The extra capacity sold to the national electricity market is low, while the power offered by non-renewable energy suppliers is very high. Renewable energy producers rely on equipment manufacturers, while some of them have vertical integration systems with the equipment manufacturers. Therefore, they face a few threats from the suppliers (Stringham 2012). They also rely on long-term supply contracts, which enable them to enjoy stable prices for their capital investments into power production plants.
Threat of new entrants
New entrants have to invest in their own production plants. They have to seek licenses from the states and the national government. They may also have to comply with various regulations on the location and operation of power plants. Eventually, they are able to trade their electricity in the whole market. However, there are no special preferences or treatments for small or new renewable energy producers of electricity. As they enter the market, they face a challenge of coping with rivals like Infigen Energy, who own considerable investments and have ongoing power purchase agreements with particular institutions and state governments. Based on the above facts, new entrants pose no major threat for the established operators in the renewable energy, electricity segment.
Threat of substitutes
There is no distinction between the price of renewable energy and non-renewable energy in the national wholesale electricity market. Companies compete against each other, irrespective of their energy sources. However, different companies incur a variety of costs in the production methods. The costs influence the ability of companies to sell their electricity at low prices. The substitutes for wind and solar electricity sources are coal and gas sources. The threat of the substitutes is very high. The current laws support increased investment in coal and gas-powered generating plants. At the same time, these sources offer cheaper electricity by having low costs of production compared to renewable energy. Only hydroelectricity may be cheaper than coal. However, the generation capacity of hydroelectricity in Australia is very low. Therefore, the major threats for renewable power producers are oil and gas powered plants.
Existing industry rivalry
The present rivalry is high because companies seek to enhance their efficiency and improve their profitability. Most of the companies acting in the industry seek to keep costs low and remain profitable. Very few are considering substantial investments in electricity generation because of the slowing growth in electricity demand. Innovation in the industry is not very high. Most coal producers concentrate on management and incremental technology changes to achieve a competitive advantage. The industry is in its maturity stages and companies have little room to manoeuvre. The cap on wholesale pricing of electricity also limits the range of innovations that companies can contemplate and implement. There is competition for contracts with institutions or state governments for wind and solar electricity producers. However, for the actual product, there is little room for strategic moves as all prices are regulated in the market.
Conclusion
The electricity industry in Australia grew rapidly in the 1990s, but it slowed down after 2010. Analysts believe the country has reached its peak consumer demand. The possibilities of an improved consumption demand exist in the renewable energy segment of the industry. However, as this report illustrates, there are legislative hurdles that the country has to overcome before realising a second transformation of the industry. Moreover, the current market orientation has allowed the country to improve its competitive advantage. Reforms led to improved efficiencies for the main producers and distributors. They also led to the proper structuring of plans and distribution networks to limit losses and improve penetration. However, the current structure is limiting additional investments as companies continue to face increased costs, but cannot increase prices without approval by the regulator. The country needs to review its policies to allow additional room for market-based pricing in the industry.
Reflection
Reforms are good and can stimulate industry growth. However, as the report illustrates, they are only good when the circumstances causing the reforms are supportive. Currently, the Australian electricity industry is stagnating because the policy changes are not happening as fast as they should. The lesson here is that regulators must be in touch with the realities and promote rapid enactment of the relevant legislation to improve current policies and support new policies. If I am in a regulatory job position, where I have to deal with industry stakeholder and contemplate reforms, I must first study the industry and then evaluate its prospects for growth with the current policy before considering a new policy. In this report, the approach was similar, and it matches the learning outcomes of the module.
It provides a background of a real industry in the world and relies on a number of sources for information. The course was intended for students to learn proper ways of researching economic and business concepts. The report preparation task was a practical lesson for understanding business and economics concepts. It provided a wide scope of analysis that would present macro and micro economic elements to discuss. At the same time, the inclusion of the company analysis part of the report presented an avenue for using business tools such as the SWOT analysis. These tools allowed me to understand the context of strategic decisions that a company makes. They also presented a company-specific outlook of the industry. Therefore, I am able to form a comprehensive picture of the Australian electricity industry and place myself at any capacity. I know the issues that affect my position as a regulator and those that affect my position as a company head.
I am also able to keep up with the current economic events and relate them to theories and best practices of economics at the macro and micro levels. For example, I understand the reasons why there would be a slump in electricity generation investments when the Australian parliament votes to reject the RET scheme proposal. The report has been instrumental in improving my critical thinking capabilities. I am now able to appreciate and interpret quantitative data and use it to make inferences on related factors or the effects on an economy. When faced with real-world problems, I can employ the knowledge gathered from the report and presentation to find solutions.
Although the current structure of the Australian electricity industry is not optimal, it exists in its current formation because of a number of factors caused by different stakeholders. Understanding the interconnection of various causes and effects of economic changes was an outcome of preparing the report. For example, I can match the proposed increase in employment opportunities caused by the legislation of the RET scheme, with growth in the Australian economy as employees increase their consumption of goods and services. The task was helpful in bridging gaps between theory and practical understanding.
With the new knowledge and skills, I should be able to handle future job demands of analysing industries and making recommendations based on findings and underlying economic conditions. As an international student, I was impressed by the differences in political and economic circumstances affecting companies. At the same time, I recognise globalisation factors at play even at the local levels. For example, in the Australian case, I realised that the demands for cleaner energy and reduced emissions are due to global forces against climate change. Although interventions are localised, such as taxation, their inspiration is global.
At the same time, the support offered by the electricity industry to the overall competitiveness of the Australian economy was notable. It highlighted the need for a countrys industrial policy to match its internal and external economic circumstances. In retrospect, focus on only the internal needs of the country would not have allowed it to achieve the same success through liberalisation. The country might have preferred to stick with state producers of electricity and end up promoting monopolistic practices that impede growth and innovation.
Overall, I have become better at interpreting economic trends and adapting to a given strategic response at a company or country level. I have been able to use my knowledge of business management and economics to solve a real world problem in a way that is helpful for someone who may have the same skills or not. Thus, I can serve as a consultant or advisor to institutions that are interested in venturing into a particular sector of any economy in the world. The skills will allow me to have a better job outlook in my home country. I am able to combine the research task experience and the experience of studying in a foreign nation, where I interact with systems and policies that are different or similar to those of my home country.
I have gained a lot in the course and the assignment, such that I can develop a globalised outlook of business positioning and customise business solutions to local levels. Working in an international business environment and witnessing different business cultures of the world as I do research will continue to improve my understanding of the current course outlines, related subjects, and their importance to my career development. I look forward to future research assignments as an actual expert in economics and business, where I will be able to contribute to the market value of the companies I work for as an employee or consultant. At the same time, the knowledge gained will be instrumental when I am advising business owners about handling the opportunities created by shifts in government policies and avoiding business threats.
In the end, I can now determine the appropriate strategies that a business should pursue in any industry. I can look at the market structure using relevant business tools and align findings with the existing conditions and resources in the business and its market. The information captured by a comprehensive research like this one will then allow me to make an informed conclusion that has market value.
Reference List
AEMC 2012, Power of choice review giving consumers options in the way they use electricity, Australian Energy Market Commision, Sydney. Web.
AEMO 2015, AEMO National electricity market (NEM). Web.
Aghdam, RF 2011, Dynamics of productivity change in the Australian electricity industry: Assessing the impacts of electricity reform, Energy Policy, vol 39, no. 6, pp. 3281-3295. Web.
Australian Energy Regulator 2014, Industry information. Web.
Brinsmead, TS, Hayward, J & Graham, P 2014, Australian Electricity Market Analysis report to 2020 and 20130, Report No. EP141067, CSIRO. Web.
Bryman, A & Bell, E 2011, Business Research Methods, 3rd edn, Oxford University Press. Web.
Clean Energy Council 2014, Renewable energy target. Web.
DEWS 2013, The 30-year electricity energy, Discussion Paper, Department of Energy and Water Supply, City East. Web.
Elliston, B, Diesendorf, M & MacGill, I 2012, Simulations of scenarios with 100% renewable electricity in the Australian National Electricity Market, Energy Policy, vol 45, pp. 603-613. Web.
Engineers Australia 2013, Energy. Web.
Infigen Energy 2013, Capital East solar farm update, Community Newsletter, 2013, p. 1. Web.
Infigen Energy 2014, Let the renewables season begin. Web.
Infigen Energy 2014, Our business. Web.
Macdonald-Smith, A 2015, Infigen Energy climbs back into black. Web.
Maher, S 2015, Renewable energy target: Macfarlane offers wind farm deal. Web.
Narayan, PK & Smyth, R 2005, Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests, Energy Policy, vol 33, no. 9, pp. 1109-1116. Web.
Nelson, T, Kelley, S & Orton, F 2012, A literature review of economic studies on carbon pricing and Australian wholesale electricity markets, Energy Policy, vol 49, pp. 217-224. Web.
Parkinson, G 2013, Infigen Energy switches on solar as it plans a new power play. Web.
Parkinson, G 2015, Infigen calls bluff on utility threats to boycott wind, solar. Web.
Reserve Bank of Australia 2014, How are electricity prices set in Australia?. Web.
Sehgal, V 2011, Supply chain as strategic asset: The key to reaching business goals, John Wiley & Sons, Hoboken, NJ. Web.
Stringham, S 2012, Strategic leadership and strategic management: Leading and managing change, iUniverse, Bloomington, IN. Web.
Whitlock, R 2015, Australian state of Victoria open for wind energy business. Web.
World Nuclear Association 2015, Australian electricity. Web.
It needs to be said that service organizations have been developing at a fast rate over the last few years in UAE, and they started to focus on the customer service.
Research
It is paramount to conduct studies in this field because the importance of customer satisfaction for every single business should not be disregarded.
Scope and Importance of the Study
This study is focused on Sharjah Electricity & Water Authority (SEWA) organization that operates in Sharjah and is focused on the provision of a range of services. It needs to be said that this study is incredibly important because most firms have started to view satisfaction levels of customers as one of the most important factors that influence the success of an enterprise. However, they frequently lack the understanding of ways in which this issue needs to be addressed and are satisfied with the current situation. Nevertheless, improvement of customer satisfaction should be viewed as an opportunity for most companies to increase their profits. It is also paramount to note that new technologies are always being developed, and it becomes easier for consumers to have access to essential information.1 This aspect is significant and should be taken into account because any reviews of customers that had a bad experience should be avoided in the modern world because information is being spread at an incredibly fast rate on the Internet.
Objectives: Primary and Secondary
The primary purpose of this study is to identify the level of importance of customer satisfaction for service organizations. The secondary goal is to determine if customers are currently satisfied with the level of services that are provided by this company, and how the levels of satisfaction may be improved in the future. Another factor that should be taken into account is the development of recommendations that should be considered by the firm. Also, one of the core objectives of this study is to draw attention to this issue because it is currently perceived as not significant.
Data Analysis
A range of tools has been chosen for this particular study. First of all, literature and peer-reviewed journals were reviewed to get a better understanding of this problem in this sector. Another aspect that needs to be noted is that customers of this company were surveyed with a use of various questionnaires, and interviews. The response rate is one of the primary issues that needed to be addressed because it affected the validity of the received data. Paper-based surveys were chosen because they have several advantages such as an ease of conducting and others.2
Finally, the information was manually reviewed and compared to the information that is available in other sources to determine any connections. Analysis of the literature reveals that a consensus on this topic is present, and most authors agree that customer satisfaction is of utmost importance for service organizations, and an enormous number of resources should be devoted to this address this point. Critical incidents were noted as a significant issue that should be identified because it is one of the most important factors that frequently affect the experience of customers.3
Data Interpretation
The data has been categorized in spreadsheets and organized. Manual analysis was chosen as a tool in this case. It needs to be said that the data that has been collected can be viewed as valid because the response rate were approximately 80 percents, and people of different nationalities and religions were questioned. It is paramount to note that data may be interpreted differently in this case. It is paramount to limit the number of customers that are not happy in this sector most of the time, and even a small percentage should not be disregarded.4 Another pattern that has been identified in the responses is that expatriates are much more worried about the price of services that are provided because of exchange rates and other factors. A possibility of any possible bias also should not be disregarded.
Findings
The results of the study indicate that only 70 percent of individuals that participated in this study agree that the price for services that are provided is fair. Also, it needs to be said that 85 percents have noted that the situation has improved significantly over the last few years. Those individuals that viewed the prices as appropriate also reported a higher income, than those who disagreed with this point of view. Also, it is important to say that most have reported that the name of the organization plays a significant role in their opinion, and 90 percents have said that they believe that SEWA is capable of providing high-quality services.
Only 20 percent think that complaints are taken into consideration by the firm, and it is a significant problem because many individuals do not know how to make such reports.5 It is understandable that it is not possible to prevent all the instances of service failure, but 55 percents of individuals have voiced their opinion that service recovery could be managed much better. It is an essential aspect that should not be disregarded because customers are less satisfied with services than they are with products in most cases.6 This point needs to be considered by the firm, and it is paramount to take necessary measures to improve the experience of customers in other ways other than gradual changes to the quality of the service to maximize the effectiveness of activities.
Conclusions
In conclusion, it is paramount to note that customer satisfaction is a significant aspect that should be taken into account by service companies. Results indicate that most clients are satisfied with the way SEWA treats customers, but some points are in need of improvement. It also needs to be said that one of the studied has shown that clients who are satisfied with the quality of services that are provided are ready to pay more in most instances, and this should be viewed as an opportunity by SEWA to increase profit.7 It is imperative to address the fact that this company does not have many competitors, but it does not affect the way customers are treated, and the firm tries to improve the quality of the services. It is evident that satisfaction levels have a significant influence on the overall financial results of the company. Another important factor that should be considered by the firm is to make sure that the levels of customer satisfaction are reasonable compared to global competitors.8
Recommendations
It is paramount to ensure that the percentage of customers that are satisfied with the services are provided is increased, and it is especially important in this sector. A use of modern technologies for the analysis of customer satisfaction is of utmost importance and should be considered in this case. Its stance on the identification of service quality gaps also needs to be reviewed by SEWA, and continuous improvement should be viewed as a primary objective. Critical incidents should be minimized because electricity and water services are vital to everyday lives of consumers. Also, necessary measures should be taken to make sure that a company is ready for any possible emergencies that may affect the satisfaction levels of customers.
A speed of repairs is also incredibly important and perceived as one of the most important factors for most clients. The fact that religion may have an influence on the way the quality of a particular service is perceived is another aspect that is still not well studied, and there is a need for future research.9 Another important aspect that should not be disregarded is that SEWA currently does not actively communicate with its customers, and this issue needs to be addressed. It is possible to use such tools as social media and blogs to develop relationships with clients. Valuable information and news about the industry may also be provided.
The fact that customers can ask questions and voice their opinions in a convenient manner is paramount, and satisfaction levels will also be significantly increased in most cases. It needs to be said that orientation on customers may be achieved in three phases in most situations, and implementation is the most important part of the process.10 Overall, the experience of firms that operate in this sector in other countries needs to be viewed as an example.
Reference List
Cochran, C., Customer Satisfaction: Tools, Techniques, and Formulas for Success, Chico, CA, Paton Professional, 2003.
Goldstein, S., Superior Customer Satisfaction and Loyalty: Engaging Customers to Drive Performance, Milwauke, WI, ASQ Quality Press, 2009.
Gustafsson, A., Customer satisfaction with service recovery, Journal of Business Research, vol. 62, no. 11, 2009, p. 1220-1222.
Hill, N., G. Roche, and R. Allen, Customer Satisfaction: the Customer Experience through the Customers Eyes, London, UK, Cogent, 2007.
Homburg, C., N. Koschate, and D. Hoyer, Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay, Journal of Marketing, vol. 69, no. 2, 2005, p. 84-96.
Noroozi, A., A Study of Islamic Customer Satisfaction, International Journal of Social Entrepreneurship and Innovation, vol. 2, no. 1, 2013, p. 98-107.
Olsen, L., L. Witell, and A. Gustafsson, Turning Customer Satisfaction Measurements Into Action , Journal of Service Management, vol. 25, no. 4, 2014, p. 556-571.
Reis, D., L. Pena, and P. Lopes, Customer Satisfaction: the Historical Perspective, Management Decision, vol. 41, no. 2, 2003, p. 195-198.
1 D. Reis, L. Pena, and P. Lopes, Customer Satisfaction: the Historical Perspective, Management Decision, vol. 41, no. 2, 2003, p. 196.
2 N. Hill, G. Roche, and R. Allen, Customer Satisfaction: the Customer Experience through the Customers Eyes, London, UK, Cogent, 2007, p. 86.
3 B. Hayes, Measuring Customer Satisfaction and Loyalty: Survey Design, Use, and Statistical Analysis Methods, 4th edn., Milwaukee, WI, ASQ Quality Press, 2008, p. 24.
4 S. Goldstein, Superior Customer Satisfaction and Loyalty: Engaging Customers to Drive Performance, Milwauke, WI, ASQ Quality Press, 2009, p. 6.
5 C. Cochran, Customer Satisfaction: Tools, Techniques, and Formulas for Success, Chico, CA, Paton Professional, 2003, p. 39.
6 A. Gustafsson, Customer satisfaction with service recovery, Journal of Business Research, vol. 62, no. 11, 2009, p. 1220.
7 C. Homburg, N. Koschate, and D. Hoyer, Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay, Journal of Marketing, vol. 69, no. 2, 2005, p. 84.
8 T. Vavra, Customer Satisfaction Measurement Simplified, Milwaukee, WI, ASQ Quality Press, 2002, p. 10.
9 A. Noorozi, A Study of Islamic Customer Satisfaction, International Journal of Social Entrepreneurship and Innovation, vol. 2, no. 1, 2013, p. 104.
10 L. Olsen, L. Witell, and A. Gustafsson, Turning Customer Satisfaction Measurements Into Action , Journal of Service Management, vol. 25, no. 4, 2014, p. 556.
Quality management is a coordinated activity aimed at directing and controlling the work from the point of view of the quality. There are a lot of different tools which are designed with the purpose to support quality management. Quality management tools are useful for progress controlling, product monitoring and system improvement. There are seven traditional quality control tools and seven new once.
The main focus of this discussion is to consider one of the new management tools aimed at controlling the quality of the performance and to apply this in practical sphere.
The performance of the ADWEA is going to be considered within the affinity diagram; we are going to check the major problems and key issues in ADWEA with the help of nominal group technique, implement flowcharting into quality management control and crate an affinity diagram which is going to point to the gaps in the workflow which could have caused a number of problems and errors in ADWEA performance.
Affinity diagram as a quality planning tool
Affinity, matrix, relationship, tree, activity network diagrams, prioritization matrix and process decision program chart are the new quality management tools. Focusing on the affinity diagram, it should be mentioned that its main purpose is to provide effective and efficient working process. Brainstorming is the main technique used for creating affinity diagram. To understand the implementation of this tool in the quality planning, it is important to consider the methodology and steps for designing an affinity diagram.
There are 5 main steps for affinity diagram methodology implementation. The first step is problem definition as clearly as possible. The second step is the use of brainstorming technique when everyone writes down the ideas.
The third and the fourth step is the mixture of the cards and asking the team to arrange the ideas in accordance with the groups they may be related to. The final fifth step of the affinity diagram methodology is devoted to the naming the groups and understanding the scope of work which should be implemented in each issue.
To use the affinity diagram as a quality planning tool, it is important not only understand the methodology of the process, but also keep in mind the structure of the work. Here are the issues the group should solve in case a quality planning is going to be based on the affinity diagram.
Group creation. About 5-8 members should comprise a group who are going to consider the quality of the completed work.
The specific time and venue of the meeting should be fixed by the moderator.
Each member of the group should write what h/she thinks is a great solution for the problem.
Then, it is necessary to review the ideas and get rid of the similar ones and those which are not related to the problem in a direct way or seem dissatisfactory for the vast majority of the team members.
The related ideas should be gathered in groups and logically named.
The ideas are put under the group name and the picture is transferred into a computer. The affinity diagram is ready and can be used for planning quality work and analyzing the results of the already completed tasks (Subburaj 14.2).
Paying attention to affinity diagram as to the quality planning tool, one should refer to the stated objectives before getting down to designing an affinity diagram. ADWEA is a company which deals with water and electricity sectors.
Using affinity diagram, it is possible to understand how effective different departments in the company work, how efficient the resources are used, etc. Creating an affinity diagram for ADWEA, a team should identify the desired goals of the company and analyze the actions which have been provided. Whether the whole potential is used? Are there any specific issues which may be addressed?
Major Problems and Key Issues in ADWEA (Nominal Group Technique)
The Nominal Group Technique is a structured approach to a brainstorming session (Jacobson 127). This technique has been created with the purpose to show that working in a group but without interacting, people perform better and more creative.
The Nominal Group Technique in a narrower sense is a consensus-building strategy useful in goal-setting or problem solving applications and is a tool that public land planners can use to effectively incorporate local stakeholders into the planning process and to help guide the design of new programs (Jacobson 127).
Using this Nominal Group Technique, we are going identify the major issues and problems ADWEA faces and rank them. Six stages should be completed to do it,
issue/problem presentation,
reflection and brainstorming,
presentation of ideas in round-robin style,
revision of listed ideas,
ranking ideas,
results compilation.
Referring to these steps, we have conducted a research and have identified the following problems in accordance with the reduction of the importance from the first one up to the last one.
Health and safety guarantees may be considered as the problems the company faces. Keeping in mind the specifics of the industry, the possibility of injuries is high and the company should consider this problem.
Meeting environmental standards is another issue the organization faces. It is important that the emissions from the manufacturing do not exceed the stated level.
The level of occupational illnesses is too high in the company due to the specifics of the manufacturing.
The quality control is a problem ADWEA usually faces. The company must follow numerous standards and be subjected to the legal acts implemented in the state. Moreover, ADWEA is the company which offers unique services to people. The quality of water and electricity delivery should be on the highest level.
ADWEA, like any other company, has the purpose to increase the profit and get more money from the projects it works on. The company should pay more attention to the new projects, so planning is considered to be one of the major issues the company faces.
Control is another key issue ADWEA faces. The control department should cope with a number of different problems, like following the working process in general, keeping an eye on the implementation of the projects and offer support and pieces of advice.
The work with the human resources may be a problem if the leadership is not properly developed and training programs are not implemented.
Recruitment of the necessary staff may be the issue due to the lack of highly professional specialists at the labor market.
Information security may be a great issue if the department fails to work in a proper way.
Flowcharting and Its Implementation in Quality Management
Flowcharting is a tool which is used with the purpose to identify, clarify and analyze different events in the process. One of the main reasons to use flowcharting is to see the whole picture of the working process. The advantage of this tool is that it does not take too much time if implemented effectively. Flowcharting is usually used for business improvement. To implement flowcharting in a quality management, one should use the following method,
Clarify the process which is going to be considered, its progress and the level of specification.
Identify the steps using brainstorming technique.
Arrange the steps in sequence.
Draw the flowchart itself.
Provide the flowchart testing.
Communicate about the actions which should be improved (Turner 64).
Pointing to the main characteristics of the flowcharting and its implementation is the quality management, it should be mentioned that the chart should be as simple as possible. It should point to the specific problems which should be considered and to the steps which should be taken is the issues are not addressed in a proper way.
Quality management may have the following look if implemented with the flowcharting.
Thus, it may be seen that the flowcharting is rather important in quality measurement as it helps use the same model for identifying different problems and save time.
The flowchart we have mentioned is the simplest one which just shows the steps which should be completed when the problem appears. There are more complicated quality management flowcharts which point to the specific processes which should be held to promote the quality control and the methods which should be used to make a decision and solve an issue.
Anyway, the main idea of the quality management flowchart is the strict sequence of steps which should be completed before the decision is made or the item is analyzed. The final step of any flowchart in a quality management is the results assessment and their successful implementation.
Gaps in Workflow That Could Cause Problems and Errors in ADWEA (flow chart)
To identify the gaps in the workflow that could cause problems and errors in ADWEA, it is possible to create a flowchart which is going to be a model for the company. We are going to check the possible mistakes and errors in the company workflow on the basis of the ADWEA 5-Year Electricity Planning Statement, a project the company wants to finish in a year.
To identify the possible gaps, we should show the whole working process on the project, including its beginning and predicting the end. To make the flowchart easy for perception, the commonly accepted signs are going to be used.
It should be mentioned that three scenarios are the high forecast, the base one (the most likely scenario), and the low forecast (uncertainty in timing). Depending on the Electricity Capacity Expansion Plan and the demand information, the supply should be identified and assessed (5-year electricity planning statement update (2008-2012)).
Looking at the chart, it is possible to say that the control should be implemented at each stage as the project is considered to be long-term and the modern conditions at the international financial market does not allow the company management department leave the project implementation without monthly control.
The flowchart offered above is simple and shows only the most important decisions in the whole projects. Supply, demand and the meeting different standards are considered to be the key issues in the plan implementation. The failure to meet those may lead to the problems which may put the whole project in danger.
Moreover, considering the 5-year electricity planning statement update, we can see that the electricity demand forecast is done only at the beginning of the project. It is wrong. The world is changing. Looking at the price raise on gasoline, the eclectic cars are going to be in demand soon, thus, it may be concluded that the demand on electricity may increase as well.
Conclusion
In conclusion, it should be mentioned that the use of different diagrams and carts for problem identification and quality management is a good idea as it allows a group of people implement different ideas, express personal opinion, discuss and come to the best possible conclusion.
Referencing to the ADWEA and the analysis of the project it is implementing at the moment, it can be concluded that the flowchart system is a good strategy for identifying the possible problems and their discussion. The flowcharts may help solve the problems before they have happened.
Dubai Electricity and Water Authority (DEWA) is an executive electricity and water provider in Dubai. It is responsible for the management, operation, and maintenance of electricity generation and water supply. In its operations, DEWA strives to achieve an extreme level of effectiveness and accuracy. Considering this, the given paper aims to evaluate the role of asset lifecycle management in the energy supply industry, to identify its role in strategic decision making and provide relevant practical recommendations for DEWA, which can be used in quality, safety, and cost-efficiency improvement efforts.
Hypothesis
Asset lifecycle integration is a few-step process. It is characterized by complexity and is associated with multiple risks. For this reason, it is hypothesized that a well-developed operation management system is essential for DEWA to design an effective decision-making strategy for its departments within its assets lifecycle management model. To verify or deny this hypothesis, 11 scholarly articles will be reviewed in the following paragraphs.
Literature Review
According to Akhtar et al. (2015), the lifecycle can be defined as the course of the product/material lifespan starting from its production, utilization, and maintenance to its ultimate disposal. When applied to the energy and water supply industry, the term lifecycle can be applied either to separate technology and resource or infrastructure as a whole, e.g., the water distribution system. If the infrastructure and material lifecycle is not taken into account in operation and strategic management, the organization can suffer significant economic losses due to disruptions in internal and external operations and processes.
To prevent this, the performance of life cycle assessment (LCA) is recommended. It implies a holistic approach to decision making aimed at raw materials acquisition, product manufacture, transportation, installation, operation and maintenance, and ultimately recycling and waste disposal (Akhtar et al., 2015, p. 974).
Production and System Construction Decision
A strategic decision on every stage of lifecycle and operation management can be made by using various decision support systems (DSSs). Razmak and Aouni (2015) claim that a software analytical DSS can be applied for strategic sourcing (i.e., acquisition of materials). Such tools provide a multi-criteria decision aid and help eliminate the factor of information overflow that can substantially bias a qualitative decision-making process.
At the system construction stage, the assessment of environmental opportunities and threats, as well as internal strengths and weaknesses is recommended (Lelek et al., 2016). For instance, LCA can be performed to determine and compare the impact of current and intended electricity production and supply on final users and the organization itself based on economic or environmental factors. As Lelek et al. (2016) notice, if a system involves multi-output processes (like DEWA does), the choice of an allocation method as described by y ISO 14044 (#4.3.4.2) can have a considerable impact on the outcomes. Additionally, the ways of partitioning inputs and outputs between co-products should be assumed the management must reflect on their physical relationships and economic value (Lelek et al., 2016). In this way, volumes of production and price of water and electricity for the current years analyzed should be used by DEWA as the allocation criteria.
Operation and Support Decision
The operations included in asset lifecycle assessment and management are primarily related to such areas of performance as logistics and supply chain. The given fields are concerned with both supply and distribution networks, as well as value chain management. Even by merely focusing on such logistics operation as transportation and designing the best possible routes and means of distribution the company may reduce multi-commodity flow issues and excess financial and time costs (Li, 2014). At the same time, the optimization of logistics operations can help decrease the organizations environmental footprint and, in this way add extra customer value to the final product or service, improving customer perception of the company (Braziotis et al., 2013).
Wai Foon and Terziovski (2014) state that, in the electricity supply industry, the strategic activities included in total quality management (TQM) quality improvement efforts and total productive maintenance (TPM) prevention maintenance, record keeping, reliability centered maintenance, etc. are the most essential. These operation models include both tangible and intangible elements.
Tangible practices are technical-oriented and focused on physical assets, while the intangible ones are people-oriented (Wai Foon and Terziovski, 2014). As stated by Baum and Vlok (2013), physical assets include plant infrastructure, machinery, vehicles, and other items that are of distinct value to an organization (p. 48). These physical assets often serve as the main sources of revenue. Heavy industries, such as the energy and water supply industry, especially rely on the built infrastructures as the major means for operation and service delivery (Baum & Vlok, 2013).
Since efficient management of physical assets is core to profitability and business sustainability, the role of physical asset management (PAM) is hard to underestimate. Overall, as stated by Baum and Vlok (2013), PAM implies the support of an organizational strategic plan by ensuring service delivery and the most effective use of physical assets (p. 48). PAM is meant to translate strategic goals into actionable steps focusing on operation optimization and elimination of existing defects in the system.
It includes the design of information flows, structural changes, alignment of motivations, and clarification of strategic decisions. For this reason, Baum and Vlok (2013) state that such intangible or soft factors as supporting organizational culture, cross-sectional collaboration, increased employee motivation, and commitment are required. The leverage of such intangible assets as human capital, information systems, customer relationships, leadership, and innovation capabilities may have a favorable effect on physical asset management and mobilization of operational efficiency (Kaplan and Norton, 2004).
Retirement and Disposal Decisions
Different physical assets in organizations are associated with distinct life expectancy. For instance, various facilities, such as chemical and power plants, usually exceed the anticipated time of the function, while systems operating there often become worn more rapidly and require replacement (Schuman and Brent, 2005). During previous stages of the system development, the management should thus always keep possible asset retirement in mind and create systems in a way that leads to greater cost-efficiency and environmental sustainability (Schuman and Brent, 2005).
At the final stage of lifecycle management, its holistic nature becomes especially evident. The functional flow in the lifecycle of assets comprises the identification of need, design, implementation, and disposal. As the final phase is achieved, the management and lifecycle development repeats.
Cost Management
According to Sinisuka and Nugraha (2013), lifecycle cost is defined as the total discounted dollar cost of owning, operating, maintaining, and disposing of a building or a building system within a certain amount of time (p. 5). It is also associated with such operations as asset acquisition, maintenance, and disposal. However, the assessment of the lifecycles cost efficiency should include the measurement of probabilistic costs including cost of failure, repairs, spare parts, downtime, lost gross margin, etc. (Sinisuka & Nugraha, 2013, p. 5). The given type of evaluation is essential to strategic management because it allows choosing the most cost-effective alternatives and identifying the lowest long-term costs of ownership.
Conclusion and Recommendations
Asset management and operational performance are interrelated practices. As the literature review shows, asset acquisition, maintenance, and disposal may pose a big challenge for companies in the energy supply industry. To sustain operational efficacy and availability of equipment, infrastructures, and facilities, and meet costs and regulatory requirements, appropriate operation management systems should be integrated into DEWAs strategic management.
The system should comprise solid analytical assessment tools and practices (e.g., DSS, inter-departmental decision making), for the implementation of which structural and cultural changes may be needed. The costs and prices, environmental impacts, as well as other possible good or bad value chain outputs, must be measured throughout the asset lifecycle management. The results of the assessment may serve as the foundation for operational and infrastructural improvements at DEWA.
Annotated Bibliography
El-Akruti, K & Dwight, R 2013, A framework for the engineering asset management system, Journal of Quality in Maintenance Engineering, vol. 19, no. 4, pp. 398-412.
Aim
In the present-day management discourse, the role of asset management in controlling various organizational operations is not well comprehended. Therefore, in their study, El-Akruti and Dwight (2013) aimed to integrate asset lifecycle management activities into the strategic management model. To achieve this, the authors focused on the way asset management practices, interrelations, and mechanisms control asset-related activities within a company.
Summary
By using the results of the systematic literature review and the theoretical framework of Porters value chain model, El-Akruti and Dwight (2013) outlined and described the major asset management activities: acquisition, deployment, operation, and disposal. Additionally, they indicated the role of asset management in strategic management. As the authors state, when using Porters value chain model, asset management contributes to the firms value creation capacity by providing the required assets that allow the management to actualize the initial strategic intent. However, not all asset management activities are similarly relevant to strategic value creation.
For example, asset maintenance is regarded by El-Akruti and Dwight (2013) as the most significant as it is related to business operations, compared to asset acquisition, which is considered to be linked only to supporting operational activities. However, asset management practices as such substantially assist organizations in developing competitive advantages including better prices, unique products, and valuable services, etc.
Evaluation
The study provides a unique perspective on asset lifecycle management activities and its interconnections with organizational strategic management and value creation endeavors. Since the available evidence in the given area of knowledge remains scarce, the authors contribution to the research is essential and unarguably valuable. The findings and conclusions made by El-Akruti and Dwight (2013) have some practical implications as well they provide clear recommendations for the implementation of the asset management framework, indicate the barriers to its application (e.g., the need for extensive cross-sectional and cross-level collaboration), and suggest the ways for the elimination of those obstacles (e.g., development of supporting organizational culture). However, the qualitative and theoretical nature of the study may have some drawbacks regarding the credibility findings. The introduction of new empirical qualitative data could help increase evidence validity to a large extent.
Conclusion
To sum up the research paper, El-Akruti and Dwight (2013) briefly recapped the major findings. The authors stated that proper information and knowledge management systems could facilitate the integration of the asset management framework at the whole-organization level. Additionally, they acknowledged the limitations of the given study by mentioning that further applied research might be required to validate the framework they have developed.
Reference List
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Baum, J & Vlok, P J 2013, Mapping primary constraints in physical asset management strategy execution, using social network analysis, South African Journal of Industrial Engineering, vol. 24, no. 2, pp. 47-58.
Braziotis, C, Bourlakis, M, Rogers, H & Tannock, J 2013, Supply chains and supply networks: distinctions and overlaps, Supply Chain Management, vol. 18, no. 6, pp. 644-652.
El-Akruti, K & Dwight, R 2013, A framework for the engineering asset management system, Journal of Quality in Maintenance Engineering, vol. 19, no. 4, pp. 398-412.
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Lelek, L, Kulczycka, J, Lewandowska, A & Zarebska, J 2016, Life cycle assessment of energy generation in Poland, International Journal of Life Cycle Assessment, vol. 21, no. 1, pp. 1-14.
Li, X 2014, Operations management of logistics and supply chain: issues and directions, Discrete Dynamics in Nature and Society, vol. 2014, pp. 1-7.
Razmak, J & Aouni, B 2015, decision support system and multi-criteria decision aid: a state of the art and perspectives, Journal of Multi-Criteria Decision Analysis, vol. 22, no. 1/2, pp. 101-117.
Schuman, C A & Brent, A C 2005, Asset life cycle management: towards improving physical asset performance in the process industry, International Journal of Operations & Production Management, vol. 25, no. 5, pp. 566-579.
Sinisuka, N I & Nugraha, H 2013, Life cycle cost analysis on the operation of power generation, Journal of Quality in Maintenance Engineering, vol. 19, no. 1, pp. 5-24.
Wai Foon, S & Terziovski, M 2014, The impact of operations and maintenance practices on power plant performance. Journal of Manufacturing Technology Management, vol. 25, no. 8, pp. 1148-1173.
Modern organisations develop and function in the rapidly changing world dominated by information technologies that serve as the drivers of success and growth. As a result, the organisations that are willing to stay at the top of their industries and remain, strong competitors, tend to adopt new technologies actively for the purpose of enhancing their performance. In turn, the adopted innovations and information technologies tend to produce a powerful impact on various elements of an organisation including its contextual and structural aspects.
The organisation overviewed in this report is Dubai Electricity and Water Authority (DEWA) one of the most influential and powerful corporations in the UAE. Due to its orientation at innovative practices and active adoption of the latest technologies, DEWA managed to achieve a high level of excellence in many of its services and operations.
However, regardless of the active addition of new technologies to its working process, the creation of Smart services and Data Hub, the structure of this organisation remains surprisingly vertical keeping its stiff hierarchy and a confusing division of power and leadership with overlapping spheres of expertise that are likely to slow down many of its functions.
Introduction
The contemporary world is known for its rapid development due to the advancement of information technology that serves as a major driver of growth in many other industries. Moreover, information technology seems to have become a very important part of many spheres of life and activities of the modern people of developed and emerging economies, thus achieving ubiquity in the majority of the worlds most powerful countries.
The benefits brought about by the IT are diverse and multiple; also, they are strongly associated with the opportunities for advancement and development of an industry or a business. As a result, many organisations are focused on adopting new technologies and embracing the latest IT practices for the purpose of becoming stronger competitors in modern business realities. However, the adoption of information technologies calls for significant changes in the working processes, operations, communications, and systems of organisations. Basically, an organisations IT practices often end up reshaping its entire structure and changing its business strategies and approaches.
The major purpose of the present paper is to review this process using a specific organisation and explore the impact that information technologies tend to produce on this organization. The establishment selected for this project is called Dubai Electricity and Water Authority (DEWA) that is a large and powerful government corporation that is focused on staying on track with the latest innovative practices and technologies, expanding its impact, and shaping its operations and systems in an optimised and efficient manner allowing this organisation to function successfully and fulfil its multiple tasks and duties.
Literature Review
Since the present paper is focused on the exploration of Dubai Electricity and Water Authority, it would make sense to use the official website of this organisation (www.dewa.gov.ae) as one of the major references for the report. In fact, this website contains a substantial body of information covering many different aspects of the organisation, its development, future projects, history, culture, structure and hierarchy, as well as its vision, mission, values, and the overall motivation for the growth and expansion.
In addition to the diversity of information presented, the official website of DEWA also can be seen as one of the most reliable primary sources reporting the companys news and changes. In that way, the website contains information about the deals and partnerships DEWA has formed recently for the purpose of improving its operations and achieving an even higher level of excellence.
Also, since DEWA is extremely innovative and focused on the adoption of the latest technologies as the tools and instruments helping boost its performance, many of the news articles placed on the organisations official website are there to inform the readers about the new projects involving various information technologies. For instance, some of the articles that can be found on the website include the news about DEWAs adoption of Microsofts HoloLens, a new cutting edge technology working on the basis of augmented and virtual reality and the recent partnerships with some of the most well-known IT companies for the purpose of enhancing the technologies employed by DEWA these days.
The work titled Impact of IT on the organisations performance by Md. Saifullah is another useful source that could drive the research for this report. This article is focused on the assessment of the influences information technologies can produce on the elements and aspects of an organisation (Saifullah, 2013).
The source offers a strong theoretical basis concerning the ways in which the IT tends to cause transformations in the structure, hierarchy, and culture of organisations; the purpose of this source is informing about the areas and aspects where the major changes occur and what processes and factors are involved in the transformations (Saifullah, 2013). Overall, the author specified that the assessment of impacts of the IT on an organisation is a very complex task due to the ever-evolving nature of the technologies organisations adopt and the long- and short-term results and changes that they can bring about.
When it comes to DEWA, the organisation selected for this report, there exist many news articles that report its active and ongoing improvement and the expansion of its practices. Some of the most renowned achievements made by DEWA are focused on its customer service excellence where it managed to show flawless responsiveness and cover all the requests of the customers, as well as the innovation department that is tirelessly seeking out new technologies that would help the organisation boost its capacity ( DEWA customer service department of the year, 2017; DEWA adopts Microsoft HoloLens technology to enhance electricity and water services in Dubai, 2017).
Organisation Description/Context
Since the United Arab Emirates has a very successful and intense history of business and economic advancement, many of its influential and well-known contemporary organisations were founded just about a decade or two ago; some went a further way and grew over many decades. Dubai Electricity and Water Authority is an organisation with an interesting and lengthy history that is longer than that of many other successful modern organisations of Dubai.
The corporation was founded in winter of 1992, which is only 25 years ago. The main founder of the corporation is Sheikh Maktoum bin Rashid Al Maktoum, a leader with a strong vision of how the organisation should function and develop in the future.
In fact, Sheikh Maktoum bin Rashid Al Maktoum was the initiator of the two organisations that were merged and taken over by Dubai Electricity and Water Authority, they appeared in 1959; however, it was The major purpose with which DEWA was formed was to unite two independently operating organisations Dubai Water Department and Dubai Electric Company. This merger helped to consolidate, centralise, and organise the processes and operations required for the effective provision of electric energy in the Emirate of Dubai, as well as manage its water supply.
Over the 25 years of its existence, the organisation has undergone a wide range of changes in culture, approaches to practice, and activities that it fulfils. DEWA has significantly expanded its influence in Dubai, took over many new practices, and changed its structure and operations, adjusted its communications, and eventually defeated all of its competitors, thus becoming the only supplier of water and electricity in the Emirate of Dubai. In addition, becoming stronger and more influential, the organisation started to feel the need to expand its staff and hire more people. As a result, communication between different parts, branches, departments, and offices of DEWA needed to be accomplished in a more successful manner that would take less time and allow the company to cater to a larger base of customers.
These days, DEWA has a large staff and employs about 8000 workers dedicated to the management of as many as 880 kilometres mains for the transmission of water that has different diameters that vary from 900 to 1200 mm ( Dubai Electricity and Water Authority adopts advanced gis-centric modelling technology, 2017). Moreover, the combined capacity of the corporations mains and pipes is 300MIG.
Working in the areas as large and active as Dubai, DEWA has to improve and better itself constantly because the demands of the region grow all the time; for example, the overall consumption of water in the area grew significantly over the last ten years. To be more precise, in 2007, DEWA supplied 72,588 million gallons of water to the residents and businesses of Dubai, and next year, the total consumption level grew to 83,397 million gallons ( Dubai Electricity and Water Authority adopt advanced gis-centric modelling technology, 2017).
One of the main goals on which the corporation is working is the adoption of clean sources of energy for the area. DEWA has made a wide range of important achievements in this regard, as well as in terms of improving its customer service. Currently, DEWA is recognised as one of the most successful and producing infrastructure organisations and utilities in the world ( Our history, 2017). The approximate customer base of Dubai Electricity and Water Authority today equals as many as 780 000 people; and the overall rate of customer satisfaction and happiness with the services of the Authority is 95% ( Our history, 2017).
Moreover, working on its major tasks and fulfilling its duties, DEWA has achieved the level of excellence that helped it surpass some of its influential global competitors of the United States and the European Union. To be more precise, DEWA managed to cut its losses in such networks as power transmission and distribution to 3.3% (accordingly, the same statistics for American and European utilities showed the reduction to 6-7% which is quite close to the success of DEWA) ( Our history, 2017).
Also, DEWAs results in the reduction of losses in water networks also qualify as some of the best worldwide with 8% rate total (North America managed to make cuts that equalled 15%) ( Our history, 2017). Moreover, in terms of customer service, DEWA has made some significant and noteworthy improvements. In particular, in regard to the customer minutes lost annually, DEWAs results showed only 3.28 minutes while the same losses reported by some of the leading infrastructure companies in the European Union equalled about 15 minutes ( Our history, 2017).
All of these admirable results point to the successful development and active improvement of the organisation under review that was made possible due to its timely adoption of the latest IT technologies, and their successful integration into the working process, operations, and systems carried out on a daily basis.
Analysis/Discussions
When it comes to the ways in which information technology can impact organisations and their performance, it is, first of all, important to point out that the IT tends to alter the core ways in which people receive, store, and process information; and in that way, the entire communication system, as well as its media, speed, and effectiveness start to change (Saifullah, 2013). Since communications represent one of the major systems driving the performance of an organisation, the changes that it undergoes tend to impact the entire company.
To be more precise, due to the transformation of the ways in which people communicate with one another within the organisation, its structure begins to change accordingly. Practically, when communication is achieved quickly and successfully, the additional links in the chain of communication become unneeded. Specifically, when a manager is able to send a memo to the entire department of workers, there no longer is a need for him or her to outsource this task for their assistants or other supervisors. Consequently, this change leads to the flattening of the organisational hierarchy that starts to have fewer levels due to the easier communication between their representatives.
Hierarchy and Centralisation
In the company such as Dubai Electricity and Water Authority that is initially divided into two major parts following the nature of its activities, it is very important to establish a clear and simple hierarchy that would prevent the time-consuming duplication of tasks and duties that causes chaos and confusion in the executive and bottom levels of management.
However, the actual chart of the organisational hierarchy that can be found on the official website of DEWA depicts a wide variety of departments and levels of power. In particular, at the very top of DEWAs chart, there is the corporations MD and CEO, below are several groups of top executives and other authorities that are subdivided into the following groups and positions: CLA (Chief Legal Assistant) legal affairs, VP (Vice President) marketing and corporative communication, as well as internal audit, EVP (Executive Vice President) strategy and business development, CFO (Chief Financial Officer) finance, and technical advisors ( Organisation chart, 2017).
After this level, there goes the division into departments and branches that include as many as eight different parts such as power and water planning, power and water generation, the transmission of power, distribution of power, customer happiness, water and civil, business support and human resources, innovation and the future ( Organisation chart, 2017). It is important to notice that the chart provides information that all of these departments answer to Executive Vice President. In turn, each of these eight departments has multiple other subdivisions; for instance, the power and water generation department has as many as nine different parts that answer to different leaders ( Organisation chart, 2017).
To be more precise, the administration of security and fire answers to an SM (Senior Manager), while production planning and mechanical maintenance are the parts controlled by the VP ( Organisation chart, 2017). The same dynamics are happening in other departments. This kind of hierarchy is very complex, and it is difficult to understand which leader is in charge of which branches and tasks.
This hierarchy is very vertical which means that the significant technological advancement that Dubai Electricity and Water Authority has undergone throughout the last couple of decades did not affect the organisations structure and did not help to flatten its hierarchy. It must be very difficult for the company with so many responsibilities and tasks to operate relying on such complicated hierarchy with multiple levels of leadership, power, and intersecting spheres.
However, based on the exceptional efficiency and success of the corporation, it is possible to make a conclusion that leaders of DEWA managed to find a way to work around this problem and keep the vertical hierarchy without having to flatten it and without facing challenges due to the structure of the organisation. Also, it looks like the decentralisation of DEWA did not spread too far, thus making the organisation slightly more decentralised than an authoritative company with a sole leader by still keeping a great amount of centralisation for the establishment of control over its multiple departments and branches.
Data Operations
Similarly to the other large infrastructure and utility organisations worldwide, at some point in its recent history, Dubai Electricity and Water Authority faced the problem of storing and processing of information. In particular, prior to the rapid development of the IT and its penetration in the business sector, the information and data of all organisations used to be stored in hard copies which called for the additional space and time management since the physical data storages had to be maintained and organised. Also, it took time to find and access the required files, look through them, send them to another department for analysis or processing them for a report.
Today, due to the use of information technologies, DEWA was able to create what is known as Data Hub that is constantly expanding and impacting other organisations as an example for the innovative data management, as well as an excellent technology helping a large corporation with diverse tasks and duties to prevent confusion and enable all the employees with timely access to the information they need for work.
In fact, realising that information technologies are one of the main assets of the organisation, the leaders of DEWA tend to improve the technologies they use for data management. Specifically, not so long ago, DEWA has signed memoranda of understanding with several IT organisations such as Microsoft and SAP for the purpose of cooperating in the future ( DEWAs MORO signs MoU with SAP to provide innovative data storage & cloud computing services, 2017; DEWA signs MoU with Microsoft, 2016).
In particular, one of the important new technologies adopted by DEWA recently is Microsoft HoloLens a product that allows the recreation of 3D models and presentations in confined spaces and, basically, helps apply theoretical projects and plans to the physical environments through a form of augmented reality that allows the viewers combine the present state of things with the desired or planned constructions ( DEWA adopts Microsoft HoloLens technology to enhance electricity and water services in Dubai, 2017).
Customer Service
As it was previously mentioned in the organisation description section, Dubai Electricity and Water Authority have excellent results when it comes to customer service. In particular, the customer minutes loss has been reduced to a minimum and now the result is much better than the statistics presented by the leading utility organisations in Europe. In addition, DEWAs customer happiness department is proud of responding to and resolving 100% of all the customer requests sent to the organisation within a year ( DEWA customer service department of the year, 2017).
This exceptional level of excellence was achieved due to the adoption of new software and hardware allowing the company to stay more interactive and responsive, inform its customers about all the changes and answer to their claims and questions as soon as they arise. The active use of smart services promoted by the organisation has proved to produce a powerful positive impact on the level of customer satisfaction and happiness (Wam, 2017). In fact, the Smart Centre of the organisation operates as a part of its customer happiness department, and it focuses specifically on the implementation of innovative changes that are directed at the improvement of customer experience on a daily basis.
Conclusion
As mentioned by Saifullah (2013), the evaluation of the exact impact produced by information technologies on various elements of an organisation is a difficult task due to its flowing and ever-changing nature. At the same time, Brodar, Calopa and Pihir (2009) pointed out that the mere fact of the adoption of information technologies by an organisation means that certain changes and adjustments of the organisations contextual and structural dimensions will occur as the consequences.
This tendency persists because organisations are dynamic and all of their elements are in constant and ongoing interaction with one another; as a result, changes in one of the elements will cause the adjustment of all the related ones.
In that way, DEWA has walked a long way from being a merger of two different organisations with two different types of responsibilities and purposes to transforming into the only supplier of water in the Emirate of Dubai, saving to close to 800 000 consumers and creating one of the largest power plants in the region. The organisations strong orientation at innovations and technologies has played an important role in this transformation.
Due to its information technologies, DEWA became the number one customer service provider of the year managing to cover 100% of tall the requests from its numerous consumers, showing excellent responsiveness to its latest customer service software and smart services that proved to enhance customer happiness significantly.
Additionally, DEWA operates a large amount of data daily, and its Data Hub is a helpful and creative way out of data management situations that usually occur in large customer service organisations.
Finally, one of the structural aspects of DEWA that does not seem to have been impacted by the IT is its hierarchy that still remains predominantly vertical with many decision-makers and overlapping spheres of expertise.
References
Brodar, K., Calopa, K., & Pihir, I. (2009). Impact of ICT on the structural and contextual organizational elements: Case study of the Varazdin County. Journal of Information and Organizational Sciences, 33(2), 243-254.
In this day and age, our society is heavily dependent on electricity. Although we may not realize it, we use electricity to do nearly every daily activity. In the hypothetical situation that the United States lost power for up to seven days, the consequences of this scenario could become extremely severe.
The first day without power would be an inconvenience to many, but not a severe situation. When there is a loss of power, wells with an electric pump are not able to pump out water. Individuals would not be able to complete the actions of flushing a toilet, using a sink, or taking a shower. However, people with city water would still have access to water. This would be a major inconvenience for me, but not life-threatening, because it would be possible to find other public places that use city water. Nevertheless, heat, hot water, and cooking would not be accessible for those who do not have backup generators. Those who do have backup generators would be able to go a certain period without these inconveniences, depending on how much energy they use. With no electricity and no cooking, food in the refrigerator will begin to spoil. An immediate response to this problem would be to go to the grocery store. However, when arriving at the grocery store, the lights will not be on so it would be difficult to navigate through the store, and the scanners to scan and purchase food with a credit card would not work. If I ran out of cash, I would not be able to purchase anything.
On a larger scale, the lack of electricity would turn off the traffic lights. This would become a problem, especially in the more populated areas. It is likely that the police and fire department would be occupied with other issues and would not be able to direct traffic. An example of an issue could be individuals stuck in elevators if they happened to be in one when the power outage occurred. Most importantly, the grid that our cell phones use would be down. Therefore, calling, texting, or using data would not be possible. Due to it only being the first day of the power outage, my phone would still be accessible as long as I had battery life. All in all, one day without power is manageable but can become detrimental very quickly.
On the third day without power, resources would begin to run out. Those who have city water will eventually run out of water. This would affect the entirety of the public due to those who may be using city water from public buildings or places. This would affect me and all other students at Hope College because nobody would have access to any kind of water on campus. Cooking would not be possible now because food that needs to be refrigerated would have gone bad. The food found in grocery stores would become scarce due to a large demand throughout the area. I would need to depend on other resources besides the dining halls at Hope College because it is likely that the dining halls would run out of food.
At this time, those depending on generators may lose power. Generators run on gasoline, and once gasoline runs out, the power goes out. Also, a large problem with communication could begin to occur. Too many callers calling into the police and fire departments may cause a lack of service on other devices, and once the power backup of the grid runs out, there would no longer be cell service. If this happened, I would not be able to contact anyone, which could become a safety hazard. Lastly, it would be impossible to leave campus because gas pumps would not work, and it is likely that I would run out of the gas that was previously in my car.
On the seventh day of the power outage, severe consequences begin to develop. It is likely that theft and crime may arise, creating an unsafe environment for me. It is possible that people may begin to steal necessary items to survive. It is known that nuclear power plants need electricity to cool off their systems. If systems do not get cooled off, explosions and fires may be the result. In the worst-case scenario, an explosion could cause a radiation leak that could affect life in nearby areas. Consequences from the first through third days would carry on into the seventh, creating a larger lack of food and water. Living near Lake Michigan, it would be possible to obtain water from the lake, but may not be safe drinking water.
As this hypothetical situation of being without electricity for just seven days shows, the consequences of this scenario can be extremely serious. And while it would be perfectly possible for me to live a whole day without electricity with little inconvenience, it would be simply impossible to continue my normal lifestyle any longer. This once again confirms how important electricity is now and life without it is no longer possible.
Obesity is one of the frequent and serious disorders in the world. There have to be cases of obesity no count number in city or rural area, as it is a tremendous and escalating concern. It does now not simply show up in adults as adolescents also can also have the possibility because they are less subject about their fitness nowadays. Obesity is certainly a condition whereby bizarre or immoderate fats accumulation that may impair health and additionally the genetic and environmental elements that are tough to manipulate when dieting. For the charge of weight, problems have been growing in each adult and child. Obesity has twice increment around the world because 1980 and extra than 1.4 billion adults, 20 and older have been overweight. From these obese adults, it has over 200 million guys and about 300 million women were obese. According to a hefty new analysis from the Global Burden Of Disease Study 2013, it is mentioned that the quantity of obese and overweight people rising from 857 million in 1980 to 2.1 billion in 2013. However, the fee exchange noticeably in the course of the world. More than half of the world’s 671 million chubby individuals living in solely ten countries, which is 15% mixed in China and India, extra than 13% in the USA, Egypt, Brazil, Pakistan, Mexico, Russia, Germany, and Indonesia. The USA, one of the high-salary countries, has the easiest will increase in-person obesity, where approximately one 0.33 of the grownup populace are obese. In Australia, it is estimated around 28% of guys and 30% of women are obese, and in the UK is about a quarter of the population is obese
There are mainly many threat elements of obesity. Obesity is in general due to the overindulging unhealthy food regimen and eating habits. Many people just consume something they like besides difficulty about the fee of nutritious. Nowadays, many speedy meals shops are opened and it is getting greater and greater all around the nook of the world. Those quick ingredients are a food plan which is excessive in energy and the trans fats contained may additionally raise the LDL cholesterol, or known as terrible LDL cholesterol, and leads to a heart assault or any different cardiovascular diseases. Examples of such meals excessive in trans fat consist of French fries and cheese. Eating canned food and ingesting too a whole lot of sugary drinks or alcohol will additionally purpose obesity, as the food and drinks incorporate excessive fees in fats and sugar. Eating in a large component and habits of relief eating is additionally no longer good, given that forcing yourself to consume plenty will reason incomplete digestion. In order to reduce this risk, a healthful and balanced food regimen ought to be well-planned daily. A wholesome and balanced eating regimen ought to be consist of 7 primary instructions of food and the most vital component is to devour extra veggies and fruits. Reduce the consumption of meals that are excessive in sugar and fats and you can additionally try change kilojoule heavy cakes with fruits. Eat-in an appropriate element too to preserve a healthy physique and weight. Other than that, lack of physical exercise is additionally the imperative aspect that leads to obesity. Nowadays, many human beings have jobs that involve sitting at a desk for most of the day and also traumatic lifestyles. They additionally count on transportation such as bus or automobile alternatively than walking or cycling. Sometimes, even when the peoples have stress, the ways they select to loosen up is by using staring at the TV, enjoying computer games, and also browsing the internet. This sort of way of life can be recognized as a sedentary way of life and so did not burn the energy in their body. Besides, if the power supplied via meals is now not used, more electricity consumption will be saved as fats in the body. Hence, regular exercise should be accomplished due to the fact it helps in burning away the energy in human body. To preserve excellent health, reasonable intensity workouts have to be performed for at least 1 hour most days of the week. During the day, easy workouts such as take the stairs and additionally get up regularly from your chair or couch may additionally help too.
Obesity normally takes place when adipose cells, which adipose cells are cells that provide storage for more energy, are increasing absurdly in dimension and additionally the number (hyperplasia). An increase in the dimension of adipose mobile is called hypertrophic, whilst an amplify in the number of fat mobile phones is recognized as hyperplastic. Thus, an increase in hypertrophic or hyperplastic ensuing in obesity. Besides, adipose cells additionally follow a normal pattern of increase and development. For instance, adipose cells extra developed and each phone grows greatly, which ensuing in hypertrophic or hyperplastic obesity. While for adulthood, an individual typically has an everyday variety of adipose cells, however, there is a giant amount of fat in every cell. Insure excessive cases, adult-onset obesity can be hypertrophic or hyperplastic. Then, the fats cells do now not disappear in the grownup nation once they developed. Furthermore, weight problems additionally develop in many instances as weight is won over a period of time. When the quantity of electricity which additionally means calories ate up in food and drinks exceeds the energy used for workout and metabolic approaches in the body, weight reap will occur. This is also recognized as a superb power balance. The extra power will be stored as fat. Each kilogram of fats stores around 9000 kcal. When the physique wishes extra energy than available from food, the fats can be misplaced or decreased from the strength stores. This is well regarded as poor energy balance. So, a lack of electricity balance might also finally purpose obesity.
Obesity has big results for fitness and it is linked to a wide range of diseases. One of the ailments that are usually triggered with the aid of obesity is coronary heart disease. Coronary heart sickness is usually brought on with the aid of a build-up of fatty deposits on the partitions of the arteries around the heart. This layer of build-up acid is normally amassed from the meals that we consume daily. Foods that comprise excessive fats price will in the end construct up the fatty credit score called atheroma. It is also made up of cholesterol and different waste substances. Once the atheroma build-up on the partitions of the coronary arteries, this will make the arteries emerge narrower and minimize the blood flow to the coronary heart muscle. This manner is referred to as atherosclerosis. If extra severe, obesity can lead to coronary heart failure which your coronary heart can’t pump sufficient blood to meet your physique requirement. In addition, kind 2 diabetes is also one of the health problems caused by using obesity. Those who are chubby are more likely to advance kind two diabetes disease. Being overweights will add more strain on the body’s ability to control blood sugar the usage of insulin and so makes it a lot extra probably to improve diabetes. In type 2 diabetes, the body produces insulin however its insulin can’t be used properly. The body overproduces insulin at first to preserve the blood sugar normally. But over time, this motivates the physique to lose the capacity to produce sufficient insulin to keep the blood sugar stage at a normal rate, and will sooner or later lead to kidney failure and coronary heart disease. Furthermore, obesity may also additionally lead to high blood pressure, which is known as a silent killer. The blood vessels want to flow into extra blood to the fat tissue, as the extra fat tissue in the body wants nutrients and oxygen to survive. Due to this, the workload of the heart will be growing because extra blood is needed to pump thru the extra blood vessels. The more the circulating blood, then there is greater the pressure on the wall of the artery. Consequently, the higher stress on the artery wall will make bigger the blood pressure.
There are true quite a few methods to treat obesity. Obesity can be cured either by way of drug therapy or bariatric surgery, as it is an extra effective treatment. For drug therapy treatment, there are two kinds of drugs that are encouraged as it can be used for long term, which is orlistat and sibutramine. Orlistat is a gastrointestinal lipase inhibitor that helps to reduce a patient’s weight by around three kg on average and also reduces sufferers to be at an excessive risk of diabetes. It will be effective if a low-calorie diet is alongside the treatment. In the orlistat way of treatment, the fat is absorbed and digested into the body. It then works on the small gut and stomach to keep away from the motion of two enzymes located in digestive juices. The enzyme is typically destroyed down the fat which bumps off in a meal. So, orlistat blocks the fat from being digested as it will be passed out as feces as a substitute for being absorbed into the body. Another drug, sibutramine which is recognized as a monoamine-reuptake inhibitor, can help to reduce weight and the suggest of weight losses is around 4-5 kg, but is related to amplify of pulse price and blood pressure. Sibutramine is known as an appetite suppressant in remedy class and it works to limit appetite through performing on urge for food manipulate facilities in the brain. Furthermore, bariatric surgical operation, additionally recognized as gastrointestinal surgery helps to decrease weight in a rapid way, by altering the digestive process. The operation can be divided into two that is malabsorptive and restrictive. Malabsorptive weight loss surgery leaves out nearly all of the nutrients of the small intestine from the digestive tract to decrease the number of nutrients and calories absorbed. For restrictive weight loss surgery, it creates a narrow passage from the top part belly to the large decrease phase to reduce the intake of food and additionally slowing the passage of meals to the stomach.
In conclusion, obesity ailment ought to be greater involved and awarded by means of all people in the society as this disease increasingly more on the upward thrust nowadays. So, anyone ought to have well-planned for a health-enhancing lifestyle. Bad dependency should be quite as fast as possible to shop own life for exact health. There is a pronouncing that healthful food is now not tasty but alternatively, this is the golden phrase which leads absolutely everyone to a long-life span.
Electricity is an essential part of modern society. Many humans depend on it. Electricity helps power our computers and mobile devices, making work easier for millions of people. Electricity helps power stoves and microwaves, making it more convenient to cook and warm food. Electricity has made a huge impact on technological advancement and will continue to in the near future.
There are many ways to generate electricity. One way is generators, where kinetic energy is converted into electrical energy. Another way is electrochemistry, where chemical energy is directly converted into electrical energy, for instance, a battery. Electricity is generated in power plants, industrial facilities reserved for the generation of electricity.
The speed of electricity is incredibly fast. Electricity travels at the speed of light or 186,000 miles per second. Electricity can also have a dangerously high voltage, going up to 25.5 megavolts.
Electricity is the best form of energy that can be transferred from one place to another. This is usually done with the help of long conductive cabling. These cablings can run from one city to another.
Electricity is stored in many ways. Direct current electricity is stored in batteries. For example, car batteries, cell phone batteries, and other things. There is no way to store alternate current electricity as it is a favorable means for transferring electricity.
Another form of electricity is static electricity. It is generated on the surface of objects and it can jump from one object to another, creating a spark. Static electricity shocks can be damaging to electronics if not properly grounded. A single spark of static electricity can measure up to 3,000 volts.
Electrical energy can be converted into mechanical energy by using motors. This process is the reverse of electricity generation from mechanical energy. This is applied in several industries including electric cars, heavy industry, and many more applications.
When electricity flows through a conductor, it produces a magnetic field around it. This phenomenon can be used to make electromagnets. In an electromagnet, the force of the magnetic field is available as long as an electric current is flowing through the conductor.
An interesting fact is that the human body also has its own electricity to function. A person’s heartbeat is controlled by electrical signals sent from the brain. The muscles inside the heart contract and relax in response to electrical impulses.
Electricity as a form of energy is an extremely interesting phenomenon, which is confirmed by the information presented in this essay.
