Oracle Open World Perspective on Today’s Utilities and the Industry Vision for Tomorrow
Perry Stoneman, Capgemini
September 2013
2 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Big Trends in the Global Utility Industry
1. Digitization of the electrical grid
through Smart Meter and Smart
Grid Programs
2. Diversification of the energy mix –
decentralized renewable energy
3. The social explosion through the
internet, and proliferation of mobile
devices
Transformations we are seeing…
3 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Big Trends in the Global Utility Industry
Not enough focus on IT OT convergence.
Only a few forward-looking utilities are
addressing the convergence and
coordination of IT and OT.
Little future-focused work has been done on
business process, for example utilities are
not prepared for Distributed Energy impacts.
Receptivity to the 5 major technology trends
of Big Data, Cloud, BPMS, Mobility and
Intelligent devices is increasing, but adoption
is slow and far from widespread.
What we are not seeing…
We call the adoption of the 5 major technology trends
Digital Maturity
BPM
CollaborationInternet
Appification
5 major digital technology trends
4 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
What is Digital
Transformation and
why you should care!
5 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Four levels of digital maturity
Transformation management intensity
Conservatives Overarching digital vision exists,
but may be underdeveloped Few advanced digital features, but
traditional capabilities may be Strong governance across silos Taking active steps to build digital
skills and culture
Beginners Management skeptical of the
business value of advanced digital technologies
May be carrying out some experiments
Immature digital culture
Fashionistas Many advanced digital features
(such as social, mobile) in silos No overarching vision Underdeveloped coordination Digital culture may exist in silos
Digirati Strong overarching digital vision Good governance Many digital initiatives generating
business value in measurable ways
Strong digital culture
Dig
ita
l in
ten
sit
y
6 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Digital maturity varies widely*
Dig
ira
ti
Co
ns
erv
ati
ve
s
Fa
sh
ion
ista
s
Be
gin
ne
rs
* Digital maturity of 391 companies in our sample
7 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Digitally-mature companies have significantly better financial performance
-11% +26%
-24% +9%
Basket of indicators:
• Tobin’s Q Ratio
• Price / book ratio
Cost Effectiveness Market Valuation
-12% +12%
-7% +7%
8 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Some industries are more mature than others…
* Average maturity of industries for which we received at least 20 survey responses
Banking
Consumer Packaged Goods
Insurance
Manufacturing
Pharmaceuticals
Retail
High
Technology
Telecoms
Travel and hospitality
Utilities
Average
industry
maturity
*
Transformation management intensity
Dig
ita
l in
ten
sit
y
9 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Utilities specific findings
1. Utilities have only started adopting digital technologies in specific areas such as the customer experience
2. Analytics is not widely used in either customer or operational applications
3. Untapped opportunities may exist in worker enablement and process digitization
4. Data and integration issues may present challenges in other areas
5. Utilities’ digital transformation management practices are relatively more mature than their use of digital technologies
10 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The Value of the
Capgemini Oracle
partnership
11 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The value of the Capgemini - Oracle partnership
#1 in Utilities for IT Services in Western Europe* (Gartner)
#3 in Utilities for IT Services Worldwide* (Gartner)
Leader for IT services in the EMEA Utilities Market** (IDC)
Over 75 Smart Energy clients worldwide
Smart Energy projects for over 113M smart meters
We are a leader in digital transformation in most sectors
Capgemini is
a leader in
Utilities for IT
Services
Capgemini-
Oracle
Partnership
Formed in 2006, the Smart Energy Alliance
Oracle Software part of every smart energy
project of Capgemini
Data from 113 million smart meters flowing through
Capgemini and Oracle architected AMI solutions
Lead partners on the largest approved meter rollout
in Europe featuring MDM 2.0.
* Ranked by Gartner based on 2012 revenue; Source: Gartner, Inc., “Market Share: IT Services, 2012”, Kathryn Hale et al, 29 March 2013
**Source: IDC: “IDC MarketScape: IT Service Providers in the EMEA Utilities Market 2013 Vendor Assessment,” Doc #EIOS02V, May 2013.
12 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Introducing Capgemini
Immediate Architecture
designed for digitally
enabled businesses!
Revealing for the
1st time our Agile
Architecture
13 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Co
nsu
mer
dri
ven
mark
et
With the evolution of consumers and maturing technology, IT will become business!
Transition to information utilities and empowered customers bring
Business and IT together
Unaware
Aware Low energy lighting
Efficient heating
Insulation
Supplier comparison
Self service
Passive Interest Green energy
Renewables sources
Energy labels
Energy efficiency advice
Active involved Energy conversation
programs
Smart meters
Energy management tools
Community involvement United consumers
Communities
Demand shift
Consumer storage
Advance energy management
Uti
lity
dri
ven
mark
et
Interactive involved Local generation
New pricing models
Demand response programs
Customer analytics
Consumer - Prosumer
14 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Capgemini’s H-model Architecture is fundamental for DUT: Enabling speed of digital innovation
The H-model distinguishes the robust application layer and
the agile interaction.
Systems of Innovation
Systems of Differentiation
Systems of Records
Sp
ee
d
Va
lue
Ind
ustr
ialis
ation
Cost re
du
ctio
n
Overall objectives
Sp
ee
d
Va
lue
Ind
ustr
ialis
ation
Cost re
du
ctio
n Layer
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration Layer
Personalization &
Interaction Layer Insight Layer
Robust Application
Layer
Agile Interaction Layer
Governance
Layer
15 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The Capgemini H Model Architecture Core Framework
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration
Layer
Personalization &
Interaction Layer Insight Layer
Robust Application Layer
Agile Interaction Layer
Governance
Layer
16 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration
Layer
Personalization &
Interaction Layer Insight Layer
Robust Application Layer
Agile Interaction Layer
Governance
Layer
The Capgemini H Model Architecture Front End Services – The Agile Interaction Layer
Channel Service
Apps Web Call IVR SMS Chat
Personalization &
Interaction Layer
Social Media E-Commerce
Insight Layer
Big Data Analytics
Channel Service
CSS – Customer Self Service Cloud Solutions
Personalization &
Interaction Layer
SRM Right now
Insight Layer
OBIEE OBIU
17 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The Capgemini H Model Architecture Stable Domain – The Robust Application Layer
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration
Layer
Personalization &
Interaction Layer Insight Layer
Robust Application Layer
Agile Interaction Layer
Governance
Layer
Application & Data Layer
MDMS OMS DMS DRMS HES
EAM GIS CIS Power
System DB MWFM
Application & Data Layer
MDM NMS (OMS & DMS) DSM
(to come)
Smart Grid
Gateway
WAM GIS CC&B ODM MWM
18 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The Capgemini H Model Architecture Orchestration and Integration Service Layer – Oracle Applications and Technologies
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration
Layer
Personalization &
Interaction Layer Insight Layer
Robust Application Layer
Agile Interaction Layer
Governance
Layer
Orchestration and Integration Service Layer
Business Process
Management
Master Data
Management
Business Activity
Monitoring
Work Flow
Management
Extract, Transform &
Load Traffic Management
Oracle Fusion Middleware
19 Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
The Capgemini H Model Architecture Governance Layer – Oracle Applications and Technologies
,
Channel Service Security
Layer
Application & Data Layer
Orchestration & Integration Layer
Personalization & Interaction
Layer
Insight Layer
Robust Application Layer
Agile Interaction Layer
Governance
Layer
Authorization
Authentication
System Activity
Infrastructure
Security
Logging, Auditing &
Reporting
Configuration
Management
IT Service
Management
Business Service
Management
User Support
Continuity
Management
Business Process
Management Master Data Management
Business Activity
Monitoring
Work Flow Management Extract, Transform &
Load Traffic Management
MDM NMS (OMS & DMS) DSM
(to come)
Smart Grid
Gateway
WAM GIS CC&B ODM MWM
Oracle Fusion Middleware
CSS – Customer Self Service Cloud Solutions
SRM Right now OBIEE OBIU
The information contained in this presentation is proprietary.
Copyright ©2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues
of EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore®,
its worldwide delivery model.
Learn more about us at www.capgemini.com