An Overview of SAP’s Solutions for Transmission & Distribution

Gero BieserIBU Utilities, SAP AG

1. The Environment of a T&D Company

2. SAP’s T&D Solution at a glance

3. Enterprise Asset Management

4. Details on Selected Scenarios

5. Customer Success Stories

Agenda

Distribution

Asset Value Chain (Supply)Generation, Transmission & Distribution

Energy Value Chain (Demand)Process and Delivery

Utilities Industry Ecosystem

Generation

Transmission

Meter Operation

Settlement

Energy SupplyTrans. Exchange

Consumption

Issues in Transmission & Distribution

Aging equipment and extensive wear and tear

Higher safety risks, costly unplanned resource changes,

wrong validation of service entries, …

Higher safety and compliance risks, penalties, image loss, …

Wrong decisions due to missing transparency into

maintenance cost structures, …

Extensive (emergency) repair and inspection cycles, higher

spare part inventory, ...

More overtime, higher quality costs, …

Need for Smart Grids, Unified Grids, Future Outage

Management Requirements

Increasing requirements to communicate with other

market participants

Lack of control over maintenance costs

Lack of control over maintenance policies

Lack of control over contractors

Aging workforce and knowledge drain

1. The Environment of a T&D Company

2. SAP’s T&D Solution at a glance

3. Enterprise Asset Management

4. Details on Selected Scenarios

5. Customer Success Stories

Agenda

SAP for UtilitiesThe Solution for T&D Companies

SAP NetWeaver

SAP for Utilities is a complete solution for T&D companies

Utility Specific Applications

SAP Customer Relationship and Billing for Utilities SAP Customer Financial Management for Utilities SAP Energy Data Management for Utilities SAP Meter Data Management for Water Utilities

SAP AMI Integration for Utilities SAP Collaborative Service Management for Utilities IDEX Country Solutions SAP Resource & Supplier Management for Utilities SAP Extended Sourcing for Utilities

Generic SAP solutions (most relevant for T&D companies)

SAP Resource and Portfolio Management

SAP Multi Resource Scheduling

SAP Work Clearance Management

Environment, Health & Safety

SAP Environmental Compliance

SAP Business Suite SAP ERP

Partner Solutions

Meridium RCMO

NRX Asset Center

StreamServe

SAP CRM SAP SCM SAP SRM SAP PLM

SAP Governance, Risk & Compliance

SAP Manufacturing Integration & Intelligence

SAP Contract Lifecycle Management

SAP Spend Analytics

SAP Auto ID Infrastructure

SAP Solution Map for T&D Companies:Solution Coverage – Part 1

SAP ERP

MeridiumRCMO

SAP Multi Resource

Scheduling

SAP Energy Data Mgmt for Utilities

SAP Resource &Supplier Mgmt for Utilities

SAP Resource &Portfolio Mgmt

NRX AssetCenter

SAP Work Clearance Mgmt

SAP Solution Map for T&D CompaniesSolution Coverage – Part 2

SAP Customer Relationship and Billing for Utilities

SAP CRM

SAP Customer Financial Mgmt for Utilities

SAP Collaborative Service Mgmt for Utilities

SAP ERP

StreamServe

IDEX country solutions

SAP Governance, Risk & Compliance

1. The Environment of a T&D Company

2. SAP’s T&D Solution at a glance

3. Enterprise Asset Management

4. Details on Selected Scenarios

5. Customer Success Stories

Agenda

The Generic Value Scenario“High Performing Assets”

Designing, building, and commissioningassets

DescriptionTypical Industries

A&D, Chems, EC&O, Mill, O&G, Utils, Trav & Log, Telco

COOVP EngineeringVP Manufacturing

Value Scenario

Asset visibility and performance

Manage build/buy of assets, including handover to operating owner from construction /engineering company.

COOVP ManufacturingPlant Mgr.

Optimized asset operations and maintenance

Sweat the Assets - Maximize available run time, manage facilities and suppliers to ensure SLA’s are enforced and minimize spare part investment.

COOVP Manufacturing CPOPlant Mgr.

Management of intellectual property assets

Provide single view of intellectual property rights ownership to maximize returns. Consolidate systems and contracts into a single view.

VP Rights & Royalties VP of R&D

Asset Safety and Compliance

Ensure regulatory compliance and risk mitigation. Provide reporting / tracking across the extended enterprise.

CFOChief Compl. Officer VP Manufacturing

A&D, Chems, CP, IM&C, HT, LS, Mill, Mining, O&G, Utils

Auto, Chems, CP, IM&C, HT, Mill, T&L, O&G, Utils, RE

Media, Telco, A&D, Chems, HT, LS

Chems, CP, EC&O, HT, LS, Mill, Mining, O&G, T & L, Utils

Provide a single, real time view of plant & ERP data for managers to take action. Maximize returns on a network of assets through optimization.

1

2

3

4

5

The Generic Value Scenario“Best People & Talent”

<Buying Center> <Buying Center>

Build the WorkforceBuild the Workforce

<Buying Center>

Hire & socialize employee

Measureresults

Identify newhire

Agile workforce

KPIs Cost to hire Time to hire Quality of hire

KPIs Time to Productivity New hire retention rate Completion rate of tasks

KPIs Employee engagement Diversity ratio New hires to top

performers in<18 months

Recruiting Onboarding Measuring

RecruiterProduction FloorSupervisor/Call-centerSupervisor/Line Mgr.

CFO/CIO

VP HR

Performance MonitorTime/cost to hireTime to productivityQuality of hiresDiversity

ControllingControlling Core HCMCore HCMGRC / Identity Hub

GRC / Identity Hub Procurement Procurement

Performance Mgmt

Performance Mgmt

Enterprise Learning

Enterprise Learning Service Delivery Service Delivery Analytics Analytics

External

Partner,

3rd party

SAP Portfolio

Looking at High Performing Assets from the T&D Perspective

Advanced EAM Practices & Processes

Core EAM Practices & Processes

ENTERPRISE LEARNING

MOBILE ASSET MGT

SCHEDULING & RESOURCE OPTIMIZATION

Field Service Integration

Knowledge Mgt & Collaboration

FINANCIALS

Enterprise Management & Support

ENGINEERING & CONSTRUCTION

Core Asset Management

GISOMS PLANT MGT

Operations Integration

Operational Risk Mgt

Advanced Maintenance

RISK-BASED MAINTENANCE

RCM

COLLABORATION

STRATEGIC ENTERPRISE MGT

DMSEMS

SCADA

ANALYTICS

REAL ESTATE MGT

EH&S

INDIRECT PROCUREMENT

PROJECT & PORTFOLIO MGT

QUALITY MGT

MAINTENANCE & OPERATIONS

DECOMMISSIONINGCONNECTIONS

MGT

INVENTORY MGT

PROCUREMENT SPARE PARTS & SERVICES

METER & DEVICE MGT

HUMAN CAPITAL MANAGEMENT

DOCUMENT REPOSITORIES

FMEA

WORKFORCE MGT

Utilities Asset Management Data and Process Platform

High Performing Assets for T&D:Solution Coverage

Core Asset Management

Enterprise Management & Support

Operations Integration

Field Service Integration

Knowledge Management

Advanced Maintenance

Operational Risk Management

SAP ERP (Enterprise Asset Management) SAP Resource and Supplier Management for Utilities SAP Work Clearance Management SAP Energy Data Management for Utilities Environment, Health & Safety SAP Environmental Compliance SAP NetWeaver Records Management

SAP ERP (HCM & Financials) SAP Resource and Portfolio Management SAP SRM SAP Contract Lifecycle Management SAP Real Estate Management SAP E-Recruiting SAP Payroll Processing

SAP NetWeaver Process Integration SAP NetWeaver Master Data Management SAP Manufacturing Integration and Intelligence

SAP ERP (Mobile Asset Management for Utilities) SAP Multi Resource Scheduling (MRS)

SAP Learning Solution & SAP Enterprise LearningSAP NetWeaver Enterprise PortalSAP PLM (Knowledge Managment, collaboration folder)

SAP ERP (Enterprise Asset Management)Meridium RCMO

SAP ERP (Strategic Enterprise Management)SAP Governance, Risk & Compliance

1. The T&D Environment

2. Overview of SAP’s T&D Solution

3. Advanced Enterprise Asset Management

4. Details on Selected Scenarios

5. Customer Success Stories

Agenda

Advanced Maintenance of Technical Assets

Declining maintenance budget due to cost pressure

Decreasing reliability of aging assets Lost experience due to aging workforce Enhanced reporting requirements Replacement of expensive legacy systems

Integrated asset maintenance and work order management

Deployment of new maintenance strategies, (e.g. reliability-centered maintenance)

Comprehensive asset database Integrated business intelligence

Well based asset management decisions Real-time reporting and budgeting Higher asset reliability at lower costs Shorter planned outages Higher customer satisfaction Regulatory compliance

Business Challenge for T&D Companies

Solution

Business Benefits

Asset & processoptimization

Definition of maintenance

strategy

Maintenance planning & work

order creation

Solution Map

SAP ERP Meridium RCMO

Maintenance cost budgeting

Inspection & maintenance work

Mobile Workforce Management

Lack of integration between field and back office

High level of back office processing High error rates and processing times Low percentage of wrench time Customer complaints on service quality

Field force automation Real-time processing of high priority work

orders Support of automatic scheduling

Lower field service costs due to timely, accurate information

Lower error rates on data capture Reduced back office operation costs Faster invoice generation Higher customer satisfaction and reduced

complaints

Business Challenge for T&D Companies

Solution

Business Benefits

Dispatch to mobile devices

Work ordercreation

Optimized scheduling

Customer service & maintenance work

Solution Map

SAP ERPincl. Mobile

Asset Mgmt for Utilities

SAP Multi Resource

Scheduling

Work order closing & evaluation

Advanced Meter Infrastructure (AMI)

Integration of heterogeneous AMI systems with existing software systems

Adaption of existing business processes Market requirements for new customer service

processes and flexible tariffs

AMI integrated with EAM, energy data mgmt, billing and customer service processes

Communication with Meter Data Unification Systems via enterprise services

Automatic processing of energy data and exception events* from AMI devices

Integration into existing system landscape with minimized project effort

Lower operational costs due to high degree of automatization

Increased customer satisfaction due to advanced customer services

Energy efficiency programs

Business Challenge for T&D Companies

Solution

Business Benefits

Installation & management

of AMI devices

Processing and billing of

energy data

Processing of exception events* from AMI devices

AMI enabled customer service processes

Solution Map

SAP AMI Integration for

Utilities

SAP Energy Data Mgmt for Utilities

* Planned for later release

Energy Capital Management

Processing of massive amount of energy data Adapting of systems and processes to share

data with external entities Leveraging of energy data to drive additional

revenue Fulfilling of regulatory requirements

Energy data and profile management Settlement management Scheduling and forecast management Data exchange with other market participants Reporting and analytic capabilities

Efficient management of energy data Ability to manage complex billing Ability to interface with other trading partners in

a deregulated environment Driving new revenue opportunities (for example,

offer forecast & scheduling for retailers) Meeting regulatory requirements

Business Challenge for T&D Companies

Solution

Business Benefits

Reconciliation & settlement

Management of meter and

devices

Storage of profiles and energy dataSolution Map

SAP Energy Data Mgmt for Utilities

SAP Collaborative Service Mgmt

for Utilities

Data exchange

Forecast & scheduling

Reporting & analytics

Inter-Company Data Exchange

Evolving regulations and market rules Country and division-specific market rules Design of efficient and sustainable market

processes Automization of collaborative processes

Enterprise service based B2B communication

Flexible infrastructure adaptable to liberalization requirements

Country & division-specific solutions

Lower operational costs Automation of business processes with

other market participants Efficient grid usage registration and billing Compliance with market regulatory rules Participation in other deregulated markets

Business Challenge for T&D Companies

Solution

Business BenefitsGrid usage and service billing

Modeling of collaborative processes

Registration for services and grid

usage (incl. supplier switch)

Metering point administration

Solution Map

IDEX Country Solutions

Regulatory compliance

SAP Collaborative Service Mgmt

for Utilities

Supplier Relationship Management

Globalization of professional purchasing and centralization of sourcing

Shortening of procurement life cycles Handling of complex services procurement Supplier evaluations and strategic planning Full transparency over all purchasing data Automation of interaction with suppliers

Strategic sourcing, bidding & tender handling, auctions and supplier evaluation

Procurement and sourcing related analyses Contract life cycle management Self-service procurement and

supplier self-service

Improved strategy & compliance Lower procurement & sourcing process costs Reduced maverick buying Spend visibility across decentralized

departments Shorter procurement cycles

Business Challenge for Utility Companies

Solution

Business Benefits

Supplier evaluation

Global demand analysis

Negotiation of outline agreements

Monitoringand analysis

Solution Map

SAP Resource and Supplier

Mgmt for Utilities

Bidding, tendering & auctioning

Centralized sourcing

Optional:

SAP Contract Lifecyle ManagementSAP Spend Analytics

SAP ERP

Architecture of a T&D Solution based on SAP NetWeaver

Other MarketParticipants:

Supplier, Retailer,ISO…..

Other MarketParticipants:

Supplier, Retailer,ISO…..

SCADASCADA SAP for UtilitiesApplications

SAP for UtilitiesApplications AMIAMI

T&D Analytics

T&D Business Processes

DMSOMS DMSOMS

GIS = Geographic Information SystemDMS = Distribution Management SystemOMS = Outage Management System

Enterprise PortalSAP NetWeaver

Process Integration Master Data Management

Business IntelligenceComposition Environment

Mobile Infrastructure

GIS GIS

Adobe Forms

ISO = Independent System Operator

Enterprise Services

Repository

1. The Environment of a T&D Company

2. SAP’s T&D Solution at a glance

3. Enterprise Asset Management

4. Details on Selected Scenarios

5. Customer Success Stories

Agenda

Industry-Driven Solutions Development

Compatible Units

AMI

Inter-Company Data Exchange

Work Clearance Mgmt

Customer Success StoriesElectricity

Electricity Conectiv Energy SAP ERP, SAP NetWeaver and NRX Asset Center Energie SaarLorLux AG SAP Collaborative Service Mgmt for Utilities, SAP

NetWeaver PI N-ERGIE AG SAP NetWeaver Mobile Infrastructure PacifiCorp SAP ERP Pfalzwerke SAP ERP Mobile Asset Management for Utilities Powercor SAP ERP Enterprise Asset Management RWE Energy AG SAP Energy Data Management for Utilities Rio Grande Energia SAP ERP Shanghai Power SAP ERP Stadtwerke Düsseldorf SAP ERP The United Illuminating Company SAP ERP, SAP CRM, SAP Energy Data Management Überlandwerk Fulda AG SAP for Utilities, SAP NetWeaver PI

Customer Success StoriesElectricity, Gas and Water

Electricity & Gas Agility SAP ERP and SAP-GIS Integration

Gas E.ON Ruhrgas SAP NetWeaver PI, Enterprise Portal, BI Energen SAP ERP

Water Aquarion Water Company SAP ERP incl. Mobile Asset Management for Utilities Newport News Waterworks SAP for Utilities, SAP NetWeaver PI Pittsburgh Water & Sewer Authority SAP ERP Vitens SAP ERP

Customer Success StoriesElectricity, Gas and Water

Electricity & Gas Agility SAP ERP and SAP-GIS Integration

Gas E.ON Ruhrgas SAP NetWeaver PI, Enterprise Portal, BI Energen SAP ERP

Water Aquarion Water Company SAP ERP incl. Mobile Asset Management for Utilities Newport News Waterworks SAP for Utilities, SAP NetWeaver PI Pittsburgh Water & Sewer Authority SAP ERP Vitens SAP ERP

Summary

Besides managing the life-cycle of the grid assets, T&D companies have to cover heterogeneous other tasks like manage the energy data, bill grid usage, enable AMI Integration and collaborate with other market participants.

Based on SAP ERP, SAP for Utilities offer an integrated bundle of solutions that cover these heterogenous requirements.

The SAP Solution Map shows you which solutions cover the business processes of a T&D company.

Make use of the conference to find out more about the solutions you are interested in and get in contact with the customers that succesfully run these solutions.

Thank you!

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