Strategic Management of Technology

Technology is now one of the most important instruments in providing a company with a competitive edge. It is exactly for this reason that the management of this resource poses a challenge, especially when one must select the technological projects that are to be developed, including those related to research and development. And, when an electrical utility is involved, making the right kind of investments becomes imperative. With this in mind, Cemig bet on the Strategic Management of Technology Program (GET), thus becoming the first electrical utility in the Country to take this step.

In the search for increased competitiveness, cost reductions and optimization of results, the implementation of the program began with a diagnostic of the technological strategies of Cemig, stressing internal awareness of the importance of technology for the competitiveness of the Company. Thus, the Strategic Management of Technology gained the support of the sectors for the subsequent phase: the establishment of a Master Technology Plan for Cemig.

Produced on an annual basis, the Master Technology Plan contains a set of technological projects (not only Research and Development) defined and compiled by the different areas, prioritized and approved by the Board of Directors and included in the Five-Year Business Plan.

Based on the Master Plan and using the GET methodology, one of the most important phases of the process is performed: the selection and prioritization of research projects to be developed over the year. During the following phase, it must be decided whether the program will be developed internally or if third party resources will be employed, since the cost of innovation, the growing complexity of the technology, the timeframes involved, the risks and the need to innovate before the competition does require quick and effective decisions.

Over the past three years, Cemig has reaped pleasing results from the Strategic Management of Technology program, such as the re-orientation of technological activities, the establishment of technological guidelines that are more consistent, the utilization of analysis and prioritization of procedures that are more suitable and the elimination of redundancies, in addition to integration of various areas of the company.

With well-defined strategies, Cemig was able to invest in technological projects that enabled more safety and reliability in the operation of the system and utilization of alternative sources of energy, improving the quality of the energy supplied to consumers through a process of continuous innovation of resources and processes. Other projects that also benefit the communities are those intended for the preservation of the environment, protection and preservation of threatened species, knowledge of flora and fauna of the various regions of the State and reforestation, among others.

In addition, the program has triggered actions to protect the technology it develops, such as the consolidation of the Patents Office and implementation of mechanisms for the protection and marketing of proprietary rights of the Company.

Even without the full development of techniques that allow the gauging of the results from investments in this technology, Cemig is certain that it has hit the mark by implementing the Strategic Management of Technology and is now investing in the necessary adjustments to obtain even greater interaction between the various sectors of the Company.

Partnerships

Currently, Cemig invests some R$18 million (equivalent to 0.5% of its net operational revenues) in research and development, divided into three basic themes: the optimization and improvement of the performance and safety of the power system; decentralized generation systems and new energy sources and environmental control. Such projects are developed through partnerships with private companies and various teaching and research institutions.

The establishment of partnerships is of great importance to the development of technological processes, rationalization of efforts, expansion of the knowledge base and the development of expertise both inside and outside the Company.

The importance of these partnerships is also demonstrated in their enabling of Cemig to participate proactively in the project development process, achieving the proposed objectives more effectively and allowing a more efficient utilization of the R&D expertise and structures.

All technologies used by the Company are reviewed when these projects are initiated, including those not directly related with the project. In doing so, the Company maintains its overall vision of the whole added-value chain, thus creating an interrelationship between all business units.