| | December 20148CIOReviewIn 2001, Marc Andreessen stated that "software is eating the world" a reference to the new reality most organizations face across industries to embrace software development as a competitive asset. Software is eating the Utility industry and, over the next 20 years, energy retailers will need to adopt a "software company" mentality in order to survive and thrive in the new digital economy. Changing dynamics in the energy industry will birth new opportunities and disrupt entrenched players. The winners will be able to innovate with new products and customer service offerings largely based on digital technologies.The U.S. Labor department recently reported that the middle 60 percent of the U.S. population by income are spending less on entertainment, household furnishings, clothing, and child care, while increasing spending by up to 49 percent on smart phones with data plans. The world is rapidly moving digital and consumers will expect more and more of a digital experience with service providers. Digital experiences will open doors for complimentary or supplementary products and services that challenge entrenched industry players. Consider Amazon hammering away at Walmart's market share or Uber disrupting cab empires in a city near you. The Zappos online experience has eradicated the need to try on shoes at a local shoe store. Zappos has been wildly successful through a digital experience. All the innovation unleashed by these new players against traditional brick-n-mortar industries were based on digital techniques. And digital always leads back to software.What is a "software company" mentality?A software company mentality is a fast moving culture where everyone in the organization is engaged in how the organization's systems are designed and how they work. This is a strategic paradigm shift for most organizations. The organization's leadership must emphasize what is important, resulting in the following norms appearing in the organization:1. An automate-everything mentalityremove repetitive processes; get people thinking about how to solve problems and John BurkeSoftwareis Eating the Utility IndustryBy John Burke, CIO, Ambit Energyopinionin my
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