IT-Business Alignment: Western Power’s Strategic Move

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Western Power has embarked on a significant transformation of its technology function, elevating it from a support-oriented role to a strategically aligned, business-focused powerhouse. This evolution has redefined the organization’s IT operations, with changes extending across its structural frameworks, funding models, and performance metrics. The result is a technology function that is deeply integrated with the business, capable of addressing the increasing complexities of the energy industry while aligning with Western Power’s long-term goals.

Tracy Deveugle-Frink, Head of Digital Products at Western Power, shared insights into this transformation at the Forrester Technology & Innovation Summit APAC. She explained that the IT function has moved away from its traditional project-based approach and adopted a product-focused model. This shift has led to the creation of “evergreen” product teams, which are designed to provide continuous support to specific business areas. These teams are categorized to align with key operational domains, including asset management, customer-based products, corporate services such as HR, payroll, and finance, and operations-focused teams that cater to field and network activities.

This product-centric structure has enabled Western Power to consolidate technology expertise within cohesive teams, fostering strong partnerships between IT and business units. By aligning these teams with the goals of the business areas they serve, the organization has built what Deveugle-Frink referred to as “business intimacy,” ensuring seamless collaboration. This deep integration has created a shared accountability model where both IT and business units are equally responsible for delivering outcomes. “We’re married, we’re jointly committed to this together, and we’re jointly accountable,” she stated, highlighting the interdependence of the two functions.

The transition to a product-focused model has also reshaped Western Power’s engagement with vendor partners. In the past, the utility relied on fixed-cost outsourcing for predefined work packages. Today, it leverages external expertise by embedding external specialists, such as developers or change managers, directly into its product teams. This approach has allowed for greater flexibility and integration, ensuring external partners work seamlessly within the existing team structure. Looking forward, the organization plans to scale this strategy further by exploring how entire service capabilities can be procured and integrated rather than hiring individual roles.

The transformation has also brought about a fundamental change in how the organization funds its technology initiatives. Traditional funding models were often too rigid to keep pace with the agile, dynamic nature of the product teams. To address this, Western Power introduced the concept of “investment cases,” a structured mechanism for securing funding. These investment cases articulate the rationale for a proposed technology initiative, define the expected outcomes, and outline a prudent investment level needed to achieve those outcomes. This method aligns financial planning with technology goals, ensuring transparency and a clear basis for evaluating the success of technology projects.

These changes have positioned Western Power’s technology function to address the increasingly complex challenges of the energy sector. The rise of a two-sided energy market, where electricity generation and distribution are becoming more decentralized, has made grid management significantly more complicated. The need for advanced technology to monitor and ensure grid safety has grown exponentially. At the same time, the regulatory landscape has become more demanding, requiring robust and adaptive technological solutions to ensure compliance.

In addition to operational improvements, Western Power’s technology transformation supports its broader objectives, including decarbonization and sustainability efforts. Deveugle-Frink highlighted that the utility operates in a highly dynamic environment characterized by disruptions unprecedented in its history. This underscores the importance of a flexible and innovative technology function capable of addressing industry shifts, regulatory challenges, and sustainability goals.

By embedding technology at the core of its operations and fostering a collaborative, product-focused culture, Western Power has laid a strong foundation to navigate the complexities of the modern energy market. This transformation not only enhances the organization’s ability to respond to current challenges but also ensures it remains agile and future-ready, supporting innovation and driving progress across all facets of its operations.