A three-year, $A300-million digital transformation programme announced by leading Australian utility AGL Energy Limited (AGL) aims to improve customers’ experience with the company.

AGL Managing Director & CEO, Andy Vesey, announced the initiative alongside the release of AGL’s annual results, which show a loss after tax of $A408 million for the financial year ended 30 June 2016. The loss was explained as resulting from costs associated with the exit of gas exploration and production assets.

“Our key generation assets, wholesale market operations and customer portfolios delivered a strong Underlying Profit result. This reflects our focus on operational execution and driving value through margin and cost discipline at the same time as we undertake the transformation of AGL,” said Vesey.

“Today we have announced an indicative $300 million capital expenditure program over three years to drive the digital transformation of our customers’ experience. This is a key component of the delivery of our strategic framework to embrace transformation, drive productivity and unlock growth as the energy sector evolves.” 

He outlined three elements that would make up the $300M program: foundational capability, digital adoption and signature moments.

“The foundational capability component relates to the significant investment in core technologies, processes and people to create the digital platform,” Vesey said.

“Bear in mind much of our IT architecture predates the smartphone age. We are now in a period where customer expectations are being set broadly in a digital world and we must invest now to keep pace.

“Much of the capability that we are seeking to build relates to the personalisation of services based on data-driven decision-making.

“The digital adoption component relates to the digital enablement of all key customer interactions, such as signing up to AGL, billing, issue resolution and moving house,” Vesey told the briefing.

“The signature moment component is the part of the transformation that relates to delivering digital experiences that charm and delight the customer in unmatched ways.”

“We anticipate improved customer acquisition and retention, improved front-office efficiency and accelerated take up of new, profitable digital offerings, the CEO said.