Duke Energy EIM (IMA) Overview

Charlie WardChief Architect - Smart Energy Systems

2

• Inefficient access to company-wide information• Multiple companies and multiple functional

information silos• Various definitions and rules for information• Limited oversight of information quality and usage• Uncontrolled data proliferation through

“spreadmarts”

YESTERDAY

ASSETS

& FINANCIALS

PRODUCTS & SERVICES

CUSTOMERS

ONE COMPANY: Single version of the truth,

shared management of information assets

OPERATIONS

WORKFORCE

• Information strategies & stewardship implemented• “One company” approach; functional silos broken

for a process view• Highly leverage analytics for Business decisions• Acquisitions expedited• Cost and efficiency gains through improved

information access and quality

TODAY AND INTO THE FUTURE

Summary – Why EIM?

BACKGROUND

In 2005 Duke Energy adopted a strategy of growth through acquisition Target was 4X current size over 7 years = 14 states, 12 - 14M customers, 70,000

employees IT was commissioned to build a “scalable platform” to support future M&A

Standardized core systems Managed business data and information 1 system / 1 process “Plug & Play” for future acquisition

2005 – 2006 acquired/merged with Cinergy = 5 states, 4.5M customers, ~19000 employees

Designed and delivered the Information Management Architecture (IMA) for the scalable platform

Future M&A transactions would be executed as acquisitions – target company’s data converted and Duke Energy systems and processes adopted

EIM/IMA Benefits Reduces Application Dependency

When applications reference each other directly, changing one means all who reference must change also. Hubs eliminate direct reference and an application may change without impacting others. Lower cost of application life cycles.

Provides Single Version of the Truth When applications maintain their own version of enterprise data, inevitably, that data

over time will differ from the other versions found in other applications. Greater confidence in the data.

Provides Integrated Reporting/Analytics Reports can be constructed from the “single version of the truth” directly rather than

replicating data from various sources into numerous report-specific copies. Fewer data and reporting errors.

Multiple systems performing the same function—whether region-specific customer information, or systems of newly acquired companies—contribute to singular, consolidated reporting. Lower cost to prepare consolidated reports.

Total cost is lowered while information becomes more reliable

IMA 2006

Business Processes

Req to Pay,

Order to cash,

etc.

Transactional Systems

Applications and source data,

Transaction processing,

Operational reporting

Reporting

Standard Reports,

Ad hoc capabilities,

Dashboards

Analytics

Collection of Cubes &

Marts ,

Analytic Capabilities

Meta Data

What’s available,

What’s certified,

Data Move & Transform

Integration

Application Integration,

Data Move & Transform

Data Quality

Data Hubs

Data models independent of transactional systems,

Pro

cesses

Financial Systems

Customer System

other Systems

Financial Systems

other Systems

Financial Systems

other Systems

Work Mgmt Systems

Supply Chain Systems

Analytics Reporting

StandardReports

Ad HocReports

ManagedReports

Dashboard

Catalo

g L

ayer

EnterpriseApplicationIntegration

Data Hubs

Extract, Transform &

Load

Messaging

Web Services

M&A

EAM

SmartGrid

Security

Infrastructure

Finances

Materials

Products & Services

Customer

etc.

What is a Data Hub?

Based on this concept we manage information independent of the applications supporting business processes.

A Data Hub is a collection of data for a specific business subject area and is the authoritative source of data for application integration, and the authoritative source of data for reporting and analytics.

Each data hub is comprised of an operational data store (ODS) for system integration, and a data warehouse (DW) for reporting/business intelligence/analytics

The collection of subject area data warehouses in the IMA comprise Duke Energy’s enterprise data warehoues

Duke Energy Enterprise Data ModelCustomer

Facilities

Products &

Services

Workforce

Materials

Equipment

Finances

F/HFacilities

Customers

Nuclear Facilities

Duke Energy

Facilities

are sold to

X Y means X “is a type of” Y. Sub-types inherit relationships of the parent.

are delivered to

transport products to

produce

fund

compensate

pro

du

ce revenu

e

performs w

ork at

performs work at

maintained at

main

tained

at

T&D Facilities

Business Strategy Changes

Late 2007 - Duke Energy scales back M&A plans to focus on streamlining operations to strengthen the balance sheet

Late 2008 - Strategy changes to emphasize revenue growth via smart grid, investment shifts to: Green generation technologies – wind, solar, clean coal, CO2 scrubbers, etc.. Distribution grid modernization AMI meter and system deployment/upgrade New customer products and services Energy management and conservation

New Business Strategy Drives Change

Evolving integration requirements Future merger and acquisition (M&A) activities More external service providers and partners Data integration with exponentially larger volumes of data Cross functional data analytics Customer facing services

Reduce solution development, enhancement, and maintenance costs Faster time to market for new or enhanced solutions

Decrease development time via standard, reusable *services Shorten solution test cycles, particularly regression testing

Better visibility into system operational and performance metrics to preclude failure and speed problem troubleshooting and resolution

Business process and supporting system flexibility

Capabilities

The smart energy leadership team defined a set of business expectations IT needed to address to support program initiatives.

The Core Issues are the obstacles that need to be overcome.

The Architecture Capabilities are required specifically to:

Meet the Smart Energy and Smart Grid business needs

Overcome the Core Issues

Deliver and support the Business Drivers

Unproven scalability and reliability

Long projecttimelines

Difficult tocoordinate projects

Inconsistent or inaccurate data

Scope and budgetforce “get by” design

Poor visibility into technologies & use

Complexity ofpoint-to-point designs

Building “one offs”, poor reuse

Testing takestoo long

No SG Business Context

Application Integration

Data Integration

Time to Market

Cheaper Builds

Lower O&M

SG Analytics

Biz Agility

Biz Process Flexibility

Reliable HA

Business Drivers Core Issues

Data services

Application and integration services

Integratedtest methodologies

Ability to integrate capabilities and requirements

Standards based architectures

Servicesgovernance

Master data governance

Consistent and measurabledata quality

SLA definition and fulfillment

Business Architecture

Architecture Capabilities

1 A

2

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1

2

4

3

3

B

C

D

A

B

C

C

E

D4

5

6

7

8

9

4

5

6

7

8

9

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F

G

H

I

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8

3

7

8

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F

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H

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HC

G

B

B

B

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SOA

Enterprise Application Integration

11

The Enhanced IMA

Bu

sin

ess

Pro

ce

sse

s

Financial Systems

Customer System

other Systems

Financial Systems

other Systems

Financial Systems

Other Systems

Work Mgmt

Systems

Supply Chain

Systems

Analytics Reporting

StandardReports

Ad HocReports

ManagedReports

Dashboard

Cata

log

La

yer

Data Hubs

ETL MessagingWeb

Services

Security

Infrastructure

Finances

Facilities

Materials

Equipment.

Customers

Ma

na

ged

Ma

ste

r Da

ta Re

gis

try

End to End Testing Tools

Management and Monitoring (initially Registry & Repository, later BAM)

GIS

HRMS

Products &Services

Workforce

Information Integration Services

• Information Integrity Services• ETL Services• EII Services

Master Data Management

• Lifecycle Management• Hierarchy & Relationship Mgt• Data Quality Management• Authoring• Base Services• MMD Interface Services

Integration Middleware

• Enterprise Service Bus• Queue• Registry & Repository• Quality of Service

12

Business Strategy Changes Again

2011 – Duke Energy merges with Progress Energy to create the largest IOU in US. Announces it will probably execute another acquisition once Progress deal closes.

Agility and Flexibility are keys to success. EIM should be able to support any business strategy with little to no change.

Duke Energy’s IMA currently supports 3 major strategic initiatives…

(EIM) IMA supports integration of smart grid systems

Enhanced IMA supports a digital customer interaction strategy

Enhanced IMA supports M&A system integration

EIM Governance IT Governance Committee commissioned a working team to :

Evolve a definition of data stewardship Perform the role on an on-going basis Define a structure for Duke Energy data Make policy recommendations Data Stewardship will evolve over time

A cross functional technical governance team was formed to ensure the proper technologies are deployed, maintained, and managed

An Integration Center of Excellence was created to develop and provide expertise on the technologies and processes of EIM

Successes To-Date PeopleSoft Financials 8.9 avoided interface costs EAM able to design its interfaces to Finances and Customers data hubs rather than being

dependent on projects in those areas. Customers data hub allows a single interface in spite of their being four customer

information systems. OLS (~$200K /yr avoidance) , eBill, IVR (~$750K/yr avoidance) all benefit through interface consolidation

Enterprise Customer System architecture - ~$3M/2009 – 10 avoidance Customer data hub allows consolidated customer business intelligence (retail marketing,

call center agent operations). Financial analysts spend less time on data verification and more time on data analysis due

to improved data quality Financial report run times greatly reduced. Some taking hours before now run in minutes. Supply chain and work management report designers need not understand complex

Maximo (eMax) data structures, only the hub structures which are designed specifically for business intelligence and analytics

Challenges RemainCategory Challenge Response Call to Action

Change Management

Pushback from projects: “it costs more”

Building hubs is a lower cost approach, although projects that build them are often not the beneficiary. Optimizing costs in total across the Company and over time sometimes means incurring higher costs in certain areas.

Promote the use of data hubs for data sharing:– Find out what major projects in respective

areas are and are not using hubs– Demonstrate your support for utilization given

the benefits– Ensure projects include resource scope for

data hubs

Managing data independent of applications

The tendency is to think in terms of applications. But application are narrow in scope whereas hubs are intended to meet broad requirements across the Company.

Build out and populate the hubs:– Sponsor projects to identify enterprise

requirements (external to “owning” area)– Sponsor and sequence projects to close gaps

left by application projects

Ramifications of an “enterprise data platform”

Prioritization and funding when dependency is on others to provision information

Data hub owners serve the needs of Duke Energy, but those needing the data usually don’t control the resources that can populate hubs.

Ensure areas supporting a data hub budget for continued build out:– Review with each hub owner their plans and

budgets– Anticipate additional data needs

Electric Transmission Lines

Electric Substations

Electric Distribution Circuits

Gas Gate Stations

Gas Distribution Pipelines

Attachments

Gas Transmission Pipelines

General Ledger

Accounts Payable

Project

Statistics & Information

Consolidations

Investor Mgmt

Treasury Mgmt

Financial Reporting

Asset Accounting

Expense Administration

Financial Planning

Tax Accounting

Misc Billing

Accounts Recievable

Assets

Work Management

Equipment Measures

Compliance Programs

Customers

Customer Accounts

Prod & Serv Agreements

Customer Bills

Delinquencies

Payments

Orders

Credit

Forecasts

Products

Marketing Programs

Sales

Employees

Contractors

Other Persons

Benefits

Development

Time & Attendance

Organizational Structure

Payroll

Staffing

Compensation

Employee Relations

Built thru 2010Opportunity

can become

Products &

Services

Workforce

Materials*

Equipment*

F/HFacilities

Customers

Nuclear Facilities

Duke Energy

Facilities

are sold to

are delivered to

transport products to

produce

fund

compensate

pro

du

ce revenu

e

performs w

ork at

performs work at

main

tained

at

T&D Facilities

stored at

maintained at

Finances

Customer Facilitiesare located at

Service Point

PremiseJurisdiction

Sites

Facilities

Location

Space

Land

Leases

Projects

Structures

Operating Requirements

Generation Units

Plant Systems

Operating Requirements

Intra-Site Structures

Systems

Inventory

Services

Vendors

Commitment

Invoices

Procurement Engineering

MSDS

* Materials and Equipment includes Nuclear

Data Hub Maturity

QUESTIONS?