New products and services
Systematically achieving this outcome requires the disciplined analysis of market trends, anticipating customer needs, identifying opportunities, engaging in high-performance pilot plans and increasing the scale of the new product or service in the target markets.In a dynamic market such as that for energy, and given the context of the energy transition, the renovated offering of new products and services is what enables organizations to remain relevant and competitive, and to continue contributing to the constant creation of value for the communities and stakeholders we serve.
Our innovation management model contemplates three avenues for obtaining new products or services: the development of new solutions, the adaptation of existing solutions to other sectors or countries, and that require adjustments to our context, and the adoption of innovative technologies or processes with high potential in our markets. The purpose of managing the portfolio of innovation opportunities and projects is to leverage these three approaches to achieve a balance between risk, competitive advantage and created and captured value.
As a means to mitigate risks in the development and adjustment of new products and services, the projects evolve through three phases:
1. Concept test, during which a prototype of the product or service is developed to assess its functionality with a low level of investment.
2. High-performance pilot run, which consists in implementing the solution in a commercial environment, with a high level of monitoring, modeling and performance analysis, and the creation of a proprietary knowledge bank.
3. Increasing the scale, which is the deployment of the new product or service in selected markets, leveraging existing capabilities or capabilities developed during the previous phases.
During 2021, we developed an enriched the portfolio to serve a variety of residential, industrial and institutional customers, through effective process management and a commitment to the reduction of carbon emissions. We have increased investment in innovation projects in adjacent and transformational platforms of our business and set growth objectives for the next years. We have also developed innovative channels to be closer to our customers, and have implemented tools and strategies to improve the user’s experience, increase the efficiency, safety and flexibility of our operations, and anticipate market needs. Investment in new products and services increased significantly compared to the previous year, particularly in photovoltaic solar energy systems, new energy services, green gases and non-bank financing products.
Revenues derived from new products and services increased significantly as a proportion of consolidated operating revenues compared to 2020. This result was particularly noticeable in the case of new products and services of the companies Promisol, Surtigas and GdO, and the results of non-bank financing.
In order to promote the diversification of our new products and services portfolio, during 2021 activities were carried out focused on structuring, managing and implementing innovation opportunities and projects focused on creation and construction, leveraging their value to serve our stakeholders through new products and services that satisfy their current and future needs, problems and opportunities. The following are some of the main activities:
Through the innovation strategy deployed by means of the CIIEG, innovation efforts have been made in different renewable gases, including biomethane, hydrogen, synthetic natural gas and ammonia. A highlight is the work carried out by Promigas and its companies in structuring a platform of opportunities for the production and use of hydrogen, with a view for applications in transportation, distributed generation, mixing with natural gas in networks and decentralized production, as well as the development of two pilot projects on the use of hydrogen as an energy source in areas compatible with its business, one of which will come on stream in 2022.
Exploration of the new distributed generation opportunities, including the implementation of solar thermal systems in concentrations of commercial and industrial customers, and the promotion of thermal districts. Another highlight is the initiation of a technical and financial feasibility study of the implementation of solar thermal systems in concentrations of commercial and industrial customers in areas of influence of Promigas and its companies. This study was leveraged by a grant provided by USTDA to Promigas in 2019. It will have a ten-month duration and is being carried out by Worley Group Inc, a company with broad experience in thermal solar energy projects.
PA portfolio of over 30 projects at the Distribution SBG, CEO, GdO, Surtigas and Quavii, focused on the diversification of the service portfolio and on improving the user’s experience: flexible contracts, digital channels, new invoice design, e-wallets and sales portals.
Design of a new services portfolio for storage of natural gas by adsorption at low pressure in four applications in different segments of the natural gas transportation and distribution value chain in Colombia.
The following are the main achievements of all the activities and projects performed in 2021:
Consolidation of a sales model for renewable solar electric power at Compañía Energética de Occidente, Gases de Occidente and Surtigas, through which we become a partner for our customers in their energy transformation by offering integrated and sustainable solutions.
Implementation and consolidation of the new Brilla sales platform for massive performance of digital transactions, which opens the door to new non-physical channels to have access to non-bank financing, and bringing us closer to our customers.
Gases de Occidente, with support from CIIEG’s management, obtained a USD 100,000 grant to perform the engineering of the first thermal district in Cali. This grant was awarded by the Thermal District Project Management Unit in Colombia of the United Nations Industrial Development Organization (UNIDO).
The following are the proposed innovation management targets to continue with the diversification of our portfolio of new products and services, and with the purpose of knowing and satisfying the needs of our clients and partners:
Investment in projects for new products and services will be equal to or greater than 30% of R&D+i investments and expenses in 2025.
The revenues derived from new products and services as a percentage of the Company’s gross adjusted sales will be equal to or greater than 3% in 2025.
