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Policy and Strategy Implications of Smart Electricity Distribution Technologies in the Perspective of IT Ecosystem  

Kim, Tae-Ha (College of Business Administration, Chung-Ang University)
Park, Chan-Hi (College of Business Administration, Chung-Ang University)
Publication Information
Information Systems Review / v.12, no.1, 2010 , pp. 189-207 More about this Journal
Abstract
We applied IT ecosystem analysis to Smart Grid system in this paper and thereby compared various arguments about Smart Grid technologies against the reality of the power generation and distribution in South Korea with a special attention to the power distribution side. Our work attempts to propose policy implications in the government-level based on a firm-level analysis using the framework of the competitive strategy and advantage. The Smart Grid initiative is expected to enhance the efficiency in the power generation and distribution. In addition, the Smart Grid initiative aims at capturing the opportunities in the electric power business such as parts, components, supplies, and system products in the global arena. Prerequisites of smart distribution system include building infrastructure based on smart distribution parts, information systems, communication technologies, and developing various application programs and interfaces that would interact with the consumers. Consumers are expected to play an integral role by changing their consumption patterns in response to dynamic pricing and quality choices enabled by the smart distribution technologies. In order to induce the consumers to participate actively in the program, firms and policy makers should consider providing consumers economic incentives and proper education for better understanding of new technologies. Our work helps policy makers and firm better understand the nature of technology and stakeholders for the successful implementation of smart distribution technologies.
Keywords
Smart Grid; Smart Distribution; IT Ecosystem; Demand Response System;
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