Digital solutions in search of a problem? Balancing short-term and long-term needs in water utilities

Digitalisation has gained interest in the broader water sector, with data-driven solutions seen as key to this development. Digital technologies are often portrayed as solutions to current and future challenges and potential applications have been identified across all areas of urban water management. However, their implementation in water utilities remains limited. This paper examines how the use of data-driven solutions aligns with and addresses the perceived needs of water utilities. It is based on an interview study with 23 key informants from Swedish water utilities involved in implementing and using data-driven solutions in urban water management. Our findings suggest that these solutions are not yet well-aligned with the technical and organisational structures of utilities. While they can address the long-term needs of water utilities with promises of improved efficiency and performance, they are less equipped to meet short-term needs which call for simple, immediate-impact solutions. Although implementing data-driven solutions should be justified by actual organisational needs, we must distinguish between the short-term and long-term needs of water utilities. Prioritising short-term needs may be more efficient in the short run but can be detrimental in the long run, which creates an ambidexterity dilemma for water utilities. Utilities should formulate digital vision or strategies that consider both the short-term and long-term needs of utilities to benefit fully from digitalisation. • Despite being seen as solutions for urban water management, digital technologies are being adopted slowly. • Understanding utilities’ adoption of digital technologies requires considering short- and long-term organisational needs. • Digital technologies are misaligned with water utilities’ structures and fail to address their short-term needs. • Water utilities should aim for organisational ambidexterity where they balance current and future needs.