Abstract for: Roadmap for Adopting New Technology in the Utility Industry
We present an end-to-end solution framework for addressing the various analytical challenges that are involved in developing an optimal deployment plan, from a business case development perspective. Our solution framework uses a judicious combination of system dynamics modeling, econometric modeling and mathematical programming based optimization modeling. A system dynamics model is used to estimate the dynamics of user adoption of the new technology, relative to deployment, which results from marketing effectiveness for the new technology, as well as the viral effect of word-of-mouth interactions among users. The model is also used to estimate the lag in benefits realization from the new technology deployment, arising from the above dynamics of user adoption, coupled with a lag in the maturity of the supporting Information Systems that enable effective functioning of the new technology. These estimates are then subsequently used in a mathematical programming model, which solves a multi-period, resource-constrained optimal deployment planning problem that is subjected to the lags in user adoption and benefit realization, which are estimated by the system dynamics model.