05_industry overview for utilities local government

8/3/2019 05_Industry Overview for Utilities Local Government

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SAP World TourAP World Tour - Zagreb, 10. & 11. 09. 2008.agreb, 10. & 11. 09. 2008."BUSINESS AT THE SPEED OF CHANGE"BUSINESS AT THE SPEED OF CHANGE"

SAP Uti l i t i esSAP Uti l i t i es

forfor

L ocal Gover nmentL ocal Gover nmentErtanrtan YORGANCIORGANCIINDUSTRYDUSTRY PRINCIPALINCIPAL UTILITIESTILITIESSAP South East Europe & Middle East


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Overview of the Electric Municipality Market

SAP Utility Solution Overview

SAP Positioning for the Municipality Market


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Asset Value Chain (Supply)Generation, Transmission & Distribution Energy Value Chain (Demand)Process and Delivery

Consumer

Municipality

Settlement

Elec t r ic Munic ipa li ty Ecosyst em

Distribution

Generation

Transmission

Local Govnmt

Meter Operation

IOU/ISO/RTO

Large Munis

Large Munis


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Todays Agenda of the Ut i l i t i es Industry

Compl ianceEnergy Sourc es

De-Regulat ionGlobal izat ion

New Techno log iesPro f i tab i l i t y

Re l iab i l i t y & Safe tyEnergy Pol i t ic s


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In tegrat ion Chal lenges in the Ut i l i t ies Industry

Intra - Company

Heterogeneous System LandscapeNumerous 1:1 Interfaces

New Market Models

Inter - Company

Trading / Power

ExchangeCustomer

Other SupplierOther Disco

Generation Transco

Financials andHuman Resources

Customer Serviceand Billing

Outage Management

Forecasting

GIS Work Management

Energy Procurement /Portfolio Management /Trading

Technical AssetManagement

Operations Management

Meter Management


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From Point Solut ions t o Collaborat ion

Intra - Company

Business and Market Collaboration byIndustry Business Process Platform

Inter - Company

IndustryBusinessProcessPlatform

Meter Management

Energy Procurement /Portfolio Management /Trading

Work Management

Generation Transco

Trading / PowerExchange

Customer

Other SupplierOther Disco

Forecasting

GIS

Outage Management

Customer Serviceand Billing

Financials andHuman Resources

Technical AssetManagement

Operations Management


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Evolv ing Market Dynamic s

Customers have increasing choice in the market

Increased competition from deregulation hasforced traditional utilities to increasingly focusand manage customer satisfaction

Deregulated markets requires traditional utilities toengage with their customers and trading partners in

different ways

Separating retail from traditional verticallyintegrated utility

Management of trading partners

Complex billing and need for integratedcustomer care

Higher energy prices place risks on supply chainaround customer satisfaction and increased fuelcosts

EPAct 2005 has mandated states to look at time-of-use scenarios for demand management

Competitive Markets

Utilities have to adapt to new market dynamicswith a new mindset, processes and systemscapabilities

Utilities have to be able to offer new servicecapabilities to customers and partners while

continuously driving costs out of the business(for e.g., time-of-use information, electronic billpresentment and payment)

Increased need for information transparencyacross the enterprise to mitigate risks fromtrading partners in the marketplace

Mistakes made around customer relationshave resulted in large fines.

Utilities are now attempting rate increasesbased upon higher fuel costs for generationand operations.

Key Implications

The Key Question For Utilities: How can I create additional sourcesof economic added value while optimizing my core business?


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Tec hnology Dr ivers and Chal lenges

for Munic ipal i t ies

Challenges

Largely a regulated monopoly businesswith limited competitive market-basedcatalysts for change near term

Non-profit business model means publicopinion matters most

Aged electric infrastructure requiresupgrade

Aging workforce issues

Efficiently manage Meter to Cash

Security of supply and terrorism Threats

Drivers

Utilities ranked the linkage of IT investmentto improvements in profitability or productivityas the No. 1 catalyst for IT investment

Pervasive emphasis on technologyinvestment that will improve cost managementand/or generate cost savings

Receptive to: IT, BPO and industrialoutsourcing to reduce operating and capitalcosts

Geographic, asset/customer base businessand infrastructure expansion strategies

Leading business management initiative isCIS, followed by EBPP, remote access

technologies, and process control systemsupgrade

Strong uptake of mobile communications,Windows XP deployment, and call centerintegration planned during 2006

Cost management remains a leadingbusiness driver for utilities


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Internal Challenges

CustomerSatisfaction

Aging Workforce

High Energy Costs

Elect r ic Munic ipal i t y Organizat ional

Chal lenges

Setting and managing expectationsfor organizational execution acrossthe enterprise

Delivering against higher customerexpectations in an increasingly

demanding market

Optimizing use of assets and data to

drive quality up and costs down

Streamlining and managing costs,

specifically with higher fuel costsand an aging workforce

Managing Standard & Poors assetvaluation expectations

Leading to Difficulties in

Aging Assets


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Municipality Strategic Imperatives

Aggressively manage operating costs and process efficiency

Leverage newer technological capabilities to drive outexcess costs related to infrastructure and internal processes

Reduce TCO through vendor solution consolidation

Leveraging technology and providing outsourced solutions

for neighboring Utilities

Ancillary services for revenue growth by attracting businessand residential customers

WiFi internet access will be seen as good will forcommunity and helps build the infrastructure for AMR

Develop new innovative products and services driven bycustomer needs (e.g. mobile computing process, scheduleoptimization, real-time integration from the call center to thefield)

Leverage best practices from other industries to benchmarkand improve business operations

Each utility must pursue these strategic imperatives in waysappropriate to its unique strengths and market position.

Key St ra teg ic Imperat ives to address

chal lenges

Drive Innovation

Accelerate Growth

Reduce Costs


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Today Change is Too Cost ly and Slow for

U t i l i t i es

Complex , manual processes

Hard-w i red

Ente rpr ise System s

People as Human

Integrators

Purchaser Work Planner Accountant

SRM(Supplier)

SCM(internal)

ERP(internal)

EA M(internal)

SRM(Buyer)

SCM(Supplier)


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Appl icat ion Categor ies of IT Spend 2005 -

2009

Source: The 2005 Utility Enterprise Solutions Report, Energy CenSource: The 2005 Utility Enterprise Solutions Report, Energy Centraltral


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Leadersh ip in th e Ut i l i t i es Indust ry

More than 1350 in t ernat iona l U t i l i t ies have dec ided for SAPsolut ions. . . 33 of the 50 worlds largest international energy groups

Utilities with 3.000 customers up to Utilities with 30.000,000 customers 500 million Utilities supply contracts billed (Electricity, Gas, Water)

SAP for Utilitiesranked No 1 in CRM& Billing (65% m-share) & EAM (Gartner &Utilipoint)

600 Utilities customers for Billing and and Customer Services

Largest single live installation with 17 Million supply contracts billed

400 EAM customers (250 T&D and 150 Powergen)

Used by all company roles (Generation, Transmission, Distribution, Meter Operation,Retail, Wholesale, Clearinghouse) and for all sectors (Electricity, Gas, Water. a.a.)

Custom ers expec t SAP to be a Thought Leader in Enterpr iseAppl icat ion Solu t ions for t he Ut i l i t ies Indus t ry


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SAP in t he Ut i l i t i es sec t or?

Comm i t ment and thought leadership

# Customers1.350

# Customers by Roles Electricity: 900 (66%) Gas: 350 (25%) Water: 380 (28%)

G+E+W: 100 (7%) G+E: 170 (12%) E+W / G+W: 130 (10%)

E only: 700 (50%) G only: 140 (10%) W only: 250 (18%)

# Customers by Region EMEA: 1.000 NA: 140 APJ: 100 LA: 100

# Customers by Application EAM: 600 IS-U: 540 EDM: 190 CRM: 160 SRM: 107 IDE: 50

# Customers by Size Large: 500+

Medium / Small: 800+

IS-U adressed contracts Energy: 360 million Energy Water: 50 million

EAM adressed MW 570.000 MW (1900 units a 300MW)

Share of Vallet by Size Energy: 94% (Large) 6% (Medium / Small)

Water: 80% (Large) 20% (Medium / Small)

Licensed Users Est 600.000


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SAP 2008 / Industry Overview for Utilities /Page 16

SAP Is t he Undisputed Leader In Ut i l i t ies

VendorQuadrant CMI

Source: CMI, analysis basedon product capabilities

for complete EAS functionality

Product Functionality

Industry

Presence

PSFT

OracleSiebel

SPL

Peace

Excelergy

Lodestar

MRO

0,0

25,0

50,0

75,0

100,0

0,00 25,00 50,00 75,00 100,00

Indus/SCT

SAP


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SAPs Comm it m ent t o t he Indust ry


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SAP NetWeaver Business Platform

SCM

PLM

SRM CRM

HumanCapitalMgmt

Admin. & Operations

FinancialMgmt

SAP ERP

The Trans format ion Foundat ion for SAP for Ut i l i t ies

CompanyManagement

Supplier

Supply ChainPartner

Customer

CustomerRelationship

Management

Supply ChainCollaboration

SupplierRelationship

Management

Enterprise

Managementand Support


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High Level Business Process Model

Business Warehouse

Ent erpr ise Managem ent & Bus iness Suppor t

CRM & Bi l l ing Energy Capi t a lManagementEnterpr ise AssetManagement

Business WarehouseSAP for Ut i l i t ies

Plant Lifecycle Mgmt Plant Engineering & Construction

Plant Maintenance & Operations Decommissioning

Network Lifecycle Mgmt Grid Engineering & Construction

Grid Maintenance & Operations

Connections Management

Resource & Supplier Management Workforce Management

Procurement & Service of Spare

Parts

Inventory Management

Selling of Energy & Services Campaign Management Sales Management (Res./C&I) Account & Contact Mgmt

Sales Planning & Analysis Customer Service Mgmt Service Order Management Customer Service Processes Electronic Self Services Account & Contact Mgmt

Billing of Energy & Services Billin g (Residential / C&I) Billing of Unmetered Services Billing of Services

Customer Financials Mgmt Receivables & Collections Mgmt Reconciliation & Closing

Auditing Intercompany Data Exchange Change of Supplier Reconciliation & Settlement Grid usage Billing

Meter Operations Meter & Device Management

Consumption Data Collection Energy Capital Management Energy Data Management

Energy Ledger /

Energy Portfolio Management

Energy Trading

Analytics Financials Human CapitalManagement

CorporateServices

OperationsSupport


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Ut i l i t ies Solut ion Map 2008Suppliers&Partners CustomersGeneration Transmission/Distribu

tion

Meter Operation Energy Retail

Plant Engineering and ConstructionPlant Maintenance and Operations

Decommissioning

Grid Engineering and ConstructionGrid Maintenance and Operation


Meter&Device Management

Energy Data ManagementEnergy Ledger / Portfolio Management

Energy Trading

Campaign ManagementIC Marketing

Sales Management for Residential CustomersSales Management for Commercial and Industrial Customers

Account and Contact ManagementIntegrated Sales Planning and Analysis

Service Order Management with ERP BillingCustomer Service Processes

Service Contract and Entitlement ManagementComplaints and Returns Management

Electronic Customer ServicesAccount and Contact Management

Billing for Residential CustomersBilling for Commercial and Industrial Customers

Billing of Unmetered ServicesBilling of Services

Receivables and Collections ManagementReconciliation and Closing

Auditing

Change of SupplierReconciliation and Settlement

Payment Processing

Workforce Management

Procurement and Service of Spare Parts


Consumption Data Collection

Network Lifecycle Management

Meter Operations

Energy Capital Management

Selling of Energy & Services

Customer Service Management

Billing of Energy & Services

Customer Financial Management

Collaborative Services & Intercompany Data Exchange

Resource & Supplier Management

Plant Lifecycle Management

Enterprise Management & Business Support


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Ut i l i t ies Solut ion Map 2008Suppliers&Partners

CustomersGeneration Transmission&Distrib

ution

Meter Operation Energy Retail

Plant Engineering and ConstructionPlant Maintenance and Operations

Decommissioning

Grid Engineering and ConstructionGrid Maintenance and Operation


Meter&Device Management

Energy Data ManagementEnergy Ledger / Portfolio Management

Energy Trading

Campaign ManagementIC Marketing

Sales Management for Residential CustomersSales Management for Commercial and Industrial Customers

Account and Contact ManagementIntegrated Sales Planning and Analysis

Service Order Management with ERP BillingCustomer Service Processes

Service Contract and Entitlement ManagementComplaints and Returns Management

Electronic Customer ServicesAccount and Contact Management

Billing for Residential CustomersBilling for Commercial and Industrial Customers

Billing of Unmetered ServicesBilling of Services

Receivables and Collections ManagementReconciliation and Closing

Auditing

Change of SupplierReconciliation and Settlement

Payment Processing

Workforce Management

Procurement and Service of Spare Parts


Consumption Data Collection

Network Lifecycle Management

Meter Operations

Energy Capital Management

Selling of Energy & Services

Customer Service Management

Billing of Energy & Services

Customer Financial Management

Collaborative Services & Intercompany Data Exchange

Resource & Supplier Management

Plant Lifecycle Management

Processes for Enterpr ise Managem ent and Business Suppor t

Processes for Planing, Bui ld, Operat ionand Maintenance of Powe r P lantsProcesses for Planing, Bui ld,Operat ion and Maint enance ofTransmiss ion&Dis t r ibut ion Gr ids

Processes for t he Procurement of Assets , Mater ia l ,Spare Part s , Serv ices and Hum an ResourcesMeter/Device MgmtMeter Reading

Processes for the Col lect ion, Analys is , Aggregat ion and Combinat ion ofEnergy Dat a as the Basis for Market ing and Sales of Energy Produc ts,for Energy Trading and the Manageme nt of Energy Port fol iosProcesses of Market i ng and Salesof Energy Product s to Consumers

Customer Serv ice ProcessesReal t ive to the Ful f i l lmentof (Energy) Supply Contrc ats

Processes for Bi l l ing and Invoic ing ofSupply Cont ract s for Energy Products, Transmiss i on& Dis t r ibut io n Serv ices and re lated Anc i l lary Serv icesProcesses of (Mass) Acc ount s Rece ivablesand Credi t & Col lec t ion Serv ices

Interoperat ive Processes betw een the Market P layersaccord ing t o the ( local ) Market Rules


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Connect ionMgmtEnergyDataMgmt Bi l l ing

CustomerFinanc ialsMgmtPrem ise, Meter , Consum pt ion Data, Bi l l , Paym ent

BackOff iceProcesses

Custom er Serv ice Processes

Cust om er , Pr ices , Cont rac tMarke t ing Sales FrontOf f ice

ProcessesServ ice

W W WIVR

End-to-end-process


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Industry B usiness Proc ess Plat form

SAP provid es t he Indust ry Bus iness Proc ess Plat form to Design,Implement and Operate Nex t Genera t ion Ut i l it y Business App li ca t ions

Duet MobilePortal FormsProject Muse

SAP Net WeaverEnterpriseServicesRepository

OtherUtilityServiceProvider

SupplierISVUtilityExtension

Ut i l i t y xAppsby SAP

Ut i l i t y xAppsby Par tners

SAPUtilitiesExtensions IS-U

SAP GenericApplications

Enterpr i se Management& Business Support

EnterpriseAssetManagement

CustomerRelat ionshipManagement& B i l l i ngEnergyCapi ta lManagement

Meter

AMIBPO

Partner

Thin Client

HoldingPower

XchangeAP fo r U t i l i t i es App l i ca t ions


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Innovat ion AND Col laborat ion Plat form for

U t i l i t i es

Utility Web Services

Utility Best Practices

Scalable, Reliable, Reusable

Robust Implementation

AND

Process Innovation

Process Orchestration

Explore and Compose

Model based X-Apps

Enterpr ise Archi tec t Business Process Expert


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Business Proces s Plat f orm for Ut i l i t ies

(BPP4U)

ANDENTERPRISESERVICES REGISTRY

ES Workplac e

Publish

Enterprise SOAImplementation

Enterprise ServiceArchitecture viewmodeling

Navigation fromBusiness View toArchitecture View

SAPSolution Manager

Solution Manager

Navigation fromBusiness View toConfigurationView

Enterprise SOAComposition

Composi t ion Plat formSAP NetWeaverERP CRM EAM Billing ECM

ES Repository

Enterpr ise Archi tec t Business Process Expert


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Comprehensive Solut i ons for Ut i l i t ies

Industry Packages

Included items

Generic building blocks Industry specific options

Technical Asset Managementfor Utilities

Advanced Manufacturing Demand & Supply Planning

Mobile Asset Management for Utilities GIS Business Connector

Resource and SupplierManagement for Utilities

Supplier Relationship Management -

Energy Data Management for

Utilities -

Device Management Meter Reading Management Energy Data Management

Customer Relationship & Billingfor Utilities

CRM Foundation Marketing Sales Management Service Management Customer Service & Aftersales

Support

Campaign Management for Utilities Sales Management for Residential

Customers Sales Management for C&I Customers Service Management for Utilities Billing for Utilities

Customer FinancialManagement for Utilities

-

Contract Accounting for Utilities Credit & Collections Management Utility Customer eServices

Collaborative ServicesManagement for Utilities

- Collaborative Services & Intercompany

Data Exchange

S

APf

orUtilities

SAP xApps

SAP xApp Resource and Program Management

SAP xApp Emission Management

SAP xApp Mergers and Acquisitions

SAP xMII (Real-Time Asset Monitoring)

SAP xApp Automated Meter Management


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SAP undisputed leader in Ut i l i t ies

Why SAP ?SAP undisputed leader in Utilities (solution proven during 25 years)

78% of Fortune 500 Utilities companies run SAP

SAP Utilities bills approx. 600 Million contracts

1350 Utilities customers run SAP

SAP market share in Utilities is over 60% vs Top 8 competitors

SAP developed the SW framework to handle the deregulation requirements

SAP contributes to Utilities business transformation as a trusted advisor

SAP best completeness solution against best of breed or business suitesSAP Netweaver (NW) is SAP Service Oriented flexible technology platform

handling Utilities Business Process

SAP is member of the Advisory Council of European Commission for Electricity ofthe future

SAP targets to become #1 of the SME market

...SAP undisputed leader , 1020 c ustom ers , bi l l ing o f 450Mi l l ion c ont rac t s , 60% mark et share (peers)


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Copyr ight 2007 SAP AG. Al le Rec ht e

vorbehal ten

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Die von SAP AG oder deren Vertriebsfirmen angebotenen Softwareprodukte knnen Softwarekomponenten auch anderer Softwarehersteller enthalten.

Microsoft, WINDOWS, NT, EXCEL, Word, PowerPointund SQL Serversind eingetragene Marken der Microsoft Corporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, System i, System i5, System p, System p5,System x, System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, OpenPower und PowerPC sind Marken odereingetragene Marken der IBM Corporation.

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HTML, DHTML, XML, XHTML sind Marken oder eingetragene Marken des W3C, World Wide Web Consortium, Massachusetts Institute of Technology.

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JAVASCRIPT ist eine eingetragene Marke der Sun Microsystems, Inc., verwendet unter der Lizenz der von Netscape entwickelten und implementierten Technologie.

MaxDB ist eine Marke von MySQL AB, Schweden.

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auch immer, nur mit ausdrcklicher schriftlicher Genehmigung durch SAP AG gestattet.

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05_industry overview for utilities local government

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