If ever there was a time for the U.S. water and wastewater sector to embrace data, it’s now as challenges mount: an ever-aging infrastructure in need of upgrades, increasing retirements in the workforce, heightened demand for water and a shifting regulatory environment.
Data — or in today’s parlance, “digital water” — holds the key to unlocking a trove of promise and rewards in its power and potential to deliver actionable information, get higher investment returns and, perhaps most importantly, bolster resiliency by getting the most out of aging assets.
Yet a survey of nearly 630 respondents for Black & Veatch’s 2024 Water Report continues to show missed opportunity, with lagging adoption of digital solutions keeping utilities from the multiple benefits that can come from the vast amount of data generated but not leveraged.
This is illustrated by respondents of our survey who were asked whether the use of their utility’s data and digital solutions strategies are achieving the intended objectives (Figure 20). Only 4 percent said they were achieving all their objectives, while 18 percent believed most of their targets were being realized.
While 22 percent of respondents consider they are meeting most of their objectives from these strategies, 25 percent stated they are only meeting some of their objectives. There has, however, been an increase in the number of respondents who are in the process of actively defining these objectives, up to 21 percent from last year’s 14 percent. Yet strikingly, one in four respondents say they’re only meeting “some” of the objectives — a slide from last year’s 42 percent.
The takeaway: some utility leaders are finding that even though they thought they were on their way with a solid set of strategic objectives, that’s not the case, and they’re now reassessing and perhaps even going back to the drawing board.
When asked to identify the top objectives for data and digital solutions strategies, asset management — listed as asset monitoring, measurement and analysis — and cybersecurity drew an equal share of attention, at 58 percent. Operations planning and control (37 percent) and monitoring and compliance (31 percent) round out the top four responses.
Data Maturity Levels on the Rise
Constraints to progress in digital water always seem to be prominent, but this year’s survey actually showed a sizable drop in some categories compared with 2023 (Figure 21).
When it comes to data or digital solutions, survey results suggest that digital strategies certainly are being reassessed, with the maturity levels of those roadmaps within the organizations rising. For instance, operations, maintenance and asset management all rose at least 10 points in 2024 compared with the previous year, suggesting that utilities have recognized the need for and are implementing their improvement strategies to keep pace with the changing needs of the water industry. One notable exception is training, which as a category dropped about 8 percentage points over 2023. This could be attributed to a move back to normalcy since the COVID-19 pandemic prompted a flood of training in virtual control and monitoring.
Perhaps not surprisingly, funding — or lack thereof — led the way with 39 percent of respondents listing it as an impairment to digital adaptation. But other categories declined year over year: legacy systems fell to 33 percent from 45 percent; resources were listed by 31 percent of respondents, down 17 percentage points; and leadership guidance drew 29 percent as a constraint, compared with 35 percent in 2023.
Nearly one in five (19 percent) said they had no constraints at all, up from 14 percent in 2023. This points to some progress being made in eliminating the barriers to harnessing the benefits of data — and perhaps suggests more funds and resources are being allocated for software systems.
Producing Good Data
The survey appeared to show that respondents are learning to discern what’s good data and what isn’t. When it came to rating the effectiveness of the current data being collected, one in five said they were collecting some data but not leveraging it effectively, while 42 percent said they were collecting a lot of data but not putting it to best use. In either case, 62 percent felt they were falling short of being effective with the current data they had, up 7 percentage points from 2023. Only 38 percent felt they effectively were using their current data (Figure 22).
When asked to describe the quality of information their organization has on the assets it owns and operates, about 43 percent rated it as very good or good for asset operations and maintenance costs, a decline from 50 percent in 2023. Likewise, almost half rated information for asset condition and performance as very good or good, about the same as 2023’s 51 percent. (Figure 23).
Respondents appear more aware of what’s good data, and many realize they simply don’t have it. Utilities need to focus on solid processes for the data they collect. Governing and managing the data are paramount to ensuring the quality is high.
Overall, when looking at the quality of information that utilities have on the assets they own and operate, there are not drastic changes from 2023, but the data instead paints a picture of an industry with work to be done progressing the information from “average” or “poor” to “good” or “very good.”
Looking ahead, when asked which types of technology water utilities should most emphasize, respondents cited asset management, cybersecurity and operations as the top three, in congruence with the top objectives for a digital strategy (Figure 24). However, the change was noticed when comparing the response to last year; both asset management and operations declined several percentage points from 2023, while cybersecurity jumped 9 points.
Cybersecurity’s continued rise in prominence (see this report’s cybersecurity section) comes as the industry works to fortify itself against the growing threat of cyberattacks. The U.S. Environmental Protection Agency (EPA) has pushed hard to get water utilities large and small to beef up their defenses, recently announcing its formation of a water sector cybersecurity task force to combat threats faced by water systems nationwide.
When asked to rate their organization’s level of expertise in a variety of technologies, geographic information systems (GIS) — the original digital model more than two decades ago — topped the list, followed by advanced metering infrastructure (AMI), another well-trusted and mature technology solutions making up the lower half of the list included mobile workforce technology, enterprise resource management systems (ERM), data visualization and energy management systems. These are tools that utilities will eventually need to reduce maintenance, energy and labor costs, meaning a pathway has been mapped out for them as to where expertise gaps exist, which utilities should be attempting to fill the pathway to better secure their future.
Some such future solutions are now appearing over the horizon — things like artificial intelligence (AI), machine learning (ML), computerized maintenance management systems (CMMS) and building information modeling (BIM). These technologies will take time; there is no “flipping the switch” to solve issues here, though the time invested now will pay huge dividends later.
The majority of utilities are working on how these technologies can be used to solve business problems. The key being to move away from what is possible and instead focus on practical solutions where AI/ML and other advanced technologies can show a clear return on investment (ROI). Utilities that have been successful in the deployment of these solutions typically have started small, clearly defined the business problem and then shared the results of successful pilot applications to gain the alignment and buy in of the organization through demonstrating value.
A move forward toward a true digital water world begins with having a vision for where each utility wants to be as a digital entity, and there’s palpable signs of progress. For instance, our clients are reporting significant success with their water-loss campaigns, given that data helps pinpoint water loss issues and enables them to resolve the issue in a cost-effective way. GIS and AMI also are mature strategies that have proven successful, serving as further inspiration for emerging technologies.
Leaders who are innovative in managing their operations will be called upon to spearhead the path to a more robust digital water world. Technologies now commonplace once were frontiers, and if viewed from that perspective, it is only a matter of time before we’ll see giant leaps and greater benefits in the use of digital water.
