CIS Modernization Assessment

for AMI Implementation

Abstract

Infosys is working with one of North America’s largest investor-owned utility

to assess the Customer Service system readiness for AMI Implementation.

Infosys assessed the current Customer service application landscape and

utility’s AMI requirements to come up with a roadmap for making the

required system changes. The solution leverages Infosys’ CIS and AMI-MDM

integration experience, and service offerings for implementing large-scale

integration programs.

May 2010

2 | Infosys – Case Study

Client OverviewThe client is one of North America’s largest investor-owned utilities, with a base of 4.5 million customers.

The Business Need• The utility is in the process of deploying smart meters in its service territory. To fully realize the potential, it needs to

make changes to some of the CIS components.

• The current CIS application, which is 20 yrs old, has an inflexible architecture on a legacy platform, which makes it difficult and expensive to make ongoing changes.

• The utility is exploring options to extend the life of CIS, and surrounding applications, by 5-7 years.

• Several systems also need new components or complete replacement, due to technology obsolescence.

Expectation from AMI Implementation

Utility’s AMI implementation and the larger Smart Grid program is the main driver for making the changes to the customer service applications. The AMI implementation includes installing 4 key systems, integrating it with the remaining customer service application and enhancing the customer service applications, to deliver the full potential of the AMI implementation.

• Smart Meters

• Mesh (Neighborhood Area) Network

• Head-End System

• Meter Data Management

The utility expects the following features to be implemented as part of the AMI program:

• Implementation of a dynamic rate structure, which includes Time of Usage(TOU) rates with 4 to 6 tiers and a combined CPP and PTR program

• Remote Connect/ Disconnect

• Demand Response, Home Area Network (HAN) and Demand Side Management (DSM) Programs

• Smart Customer Energy Management Portal

• Distributed Generation

• Pre-pay Metering with real time billing

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Key ChallengesThe current application landscape has limitations, making the AMI changes difficult and costly. The challenges can be categorized as follows:

• Low flexibility of application because

of monolithic application design.

• Higher time-to-market. For example,

Introduction of a new rate/ charge

takes around 10 months to implement

and costs around 0.8 M USD.

• Testing effort in enhancements/ small

development takes a considerable

amount of time (more than 40% of

total effort).

PROC

ESS

• Monolithic architecture, making the

system rigid

• Point-to-point interaction between

interfacing applications

• Aging technology - SmallTalk,

Gemstone and COBOLTECH

NOLOG

Y

• Difficult to retain skills for the complex

application/ niche technologies.SKILL

S

4 | Infosys – Case Study

The Infosys SolutionInfosys conducted a 6-week assessment, which included a 2-week onsite workshop to understand the utility’s AMI roadmap, the current customer service application landscape, overall customer service and IT strategies.

At the end of the assessment workshop, Infosys delivered the final report on the architectural changes required, within the current system, to support the AMI changes. A roadmap for implementing the changes and the budgetary estimates for those changes was also provided.

The following activities were performed as part of the Assessment Workshop.

Proposed System ChangesBased on the utility’s current customer service application landscape and the requirement to change it for AMI implementation, Infosys proposed 2 solution options:

Implement a Package Solution (Minimal

changes to support business, till then by

extending the current architecture)

OPTION 1

Decide on Custom Solution (Incrementally

move systems/ components to the desired to-

be-state)

OPTION 2

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Why Option 2 when we have Option 1?CIS replacement projects:

• Cost too much, and the original estimate and final cost can be very different

• Take too long - approximately 3 to 4 years

• Overwhelm the organization, involve huge change -management and need high subject matter expertise (SME) commitment

• Are extremely risky, have a success ratio less than 50%, and need huge investment with no guarantee of success

How is Option 2 any better?CIS Modernization projects:

• Improve legacy CIS in steps for continuous value delivery

• Involve custom approach as per needs- replace and repair

• Need manageable investment amounts -typically 25% of CIS replacement

• Manage risk with relatively small incremental investment each year

• Involve focused limited scope and retraining needs

• Transform CIS, both functionally and technically

6 | Infosys – Case Study

Modernizing CISAn ‘as-is’ system landscape transformed into a ‘to-be’ simplified system landscape.

BILLING STESSA & SERIWGNIRETEM

FINANCECUSTOMER MANAGEMENTFIELD SERVICE

MeterInventory

AutomatedMeter Reading

MeterMaintenance

RouteManagement

BillPresentment

Tariff & Exception

Management

Billing Engine Complex Billing Usage

Asset & Work Maintenance

Outage Management

Automation &Control

Demand Side Management

Work Allocation

Order Dispatch

Order Completion Field Devices

Customer Information

Customer Relationship

Service & Trouble Orders

Call Center Management

Credit & Collections

Payment Processing

Deposit AdjustmentsManagement

• The various options, suggested along with

the cost and the roadmap, helped the

client prepare their implementation

roadmap

• The client could take an informed decision

on CIS modernization versus CIS

replacement

• The client also benefited from Infosys'

knowledge of AMI changes from other

utilities, as a validation based on what is

happening in the industry

Questions? Opinions?Please visit

http://www.infosys.com/offerings/industries/utilities/pages/index.aspx