Understanding MIS - Information Systems

Understanding MIS - Information Systems

Smart Grids

Difference between Smart Grids and Current Electricity Infrastructure in US

The major difference between the both is the use of digital technology. The smart grids use digital and latest technology that not only saves energy but also reduces the cost, and reliable too as compare to current electricity infrastructure that is not updated with latest technologies neither efficient (Laudon & Loudan, 2012). The current electricity grids lack in providing information about the consumption of electricity that make it difficult to distribute the electricity efficiently and according to the customers use. Smart grids conversely provide all necessary information to distributors about the consumption of electricity that assist in a better decision making.

Considering Issues for Developing Smart Grids

The management issue while developing the smart grids is to make it convenience to the customer to switch to the latest technology and bring awareness to the customers that this system will going to help them to use energy efficiently and reduce their electricity bill. The management will also make sure that the customer information will be kept confidential and by providing feedback regarding the use of energy will help customers to use energy in an efficient manner (Laudon & Loudan, 2012).

The organization would face the issue of high cost of installation of these smart grids. Most of consumers would not like to spend in installing the new meters that would cost them around $250-$500. The organization may face the risk of losing revenues as each individual will able to save energy (Laudon & Loudan, 2012).

The technology related issue may be the awareness of technology to households and the new technology may also not be user friendly. There, a risk of cybercrimes is also existed.

Challenges for Smart Grids

The challenges that may hinder the development of smart grids would be the fact that initially there is a big cost required to completely replace the existing technology by installing a new system that can cost the energy providers around $75 billion and the installation of new meters by consumers that can cost them around $250 to $500 (Laudon & Loudan, 2012). This new technology also have threats of cybercrime and user friendly interface, as some people have a hard time to read and analyze the meter readings of the existing system. The energy providers have to address all these issues and must convince the nation to switch to the technology (Farhangi, 2010).

Smart Grids for Other Areas

Smart technology can analyze, monitor and assess any type of data and optimize the utilization of resources to enable consumers to use them efficiently. Smart technology can be installed in smart car to optimize the use of gasoline by enhancing the mileage ratio. Smart technology can also be used in the communication industry to know the location of the other person. Smart technologies must use to monitor and preserve the nonrenewable resources (Laudon & Loudan, 2012).

Personal Comments

Personally, I would not like to switch to this technology. I think this technology is for those ...