sap for utilities overview and outlook 03 2008

SAP for UtilitiesOverview and Outlook

Ertan Yorganci, BD Utilities, SAPPhilipp Freudenberger, IBU Utilities, SAPSofia, March 12th, 2008

© SAP 2007 /

Utilities Solution Map 2006

Generation Transmission & Distribution Meter Operation Retail & Services

Plant Engineering and ConstructionPlant Maintenance and Operations

Decommissioning

Grid Engineering and ConstructionGrid Maintenance and Operation

Connections Management

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 ManagementProcurement and Service of Spare Parts

Inventory Management

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 & Support

EAM

ECM

CRM&

Billing

ERP

EnterpriseAsset

Management

EnergyCapital

Management

© SAP 2007 /

Industry-oriented Application Platform – ProcessView

Business Warehouse

Enterprise Resource Planning (ERP)

CRM & Billing Energy CapitalManagement

Business WarehouseSAP for Utilities

Business Process FlowBusiness Process Flow

Plant Lifecycle MgmtPlant Engineering&ConstructionPlant Maintenance&OperationsDecommisioning

Network Lifecycle MgmtGrid Engineering&ConstructionGrid Maintenance&OperationsConnections Management

Resource&SupplierWorkforce ManagementProcurement & Service of SparePartsInventory Management

Selling of Energy&ServicesCampaign ManagementSales Management (Res./C&I)Account & Contact MgmtSales Planning & Analysis

Customer Service MgmtService Order ManagementCustomer Service ProcessesElectronic Self ServicesAccount & Contact Mgmt

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

Customer Financials MgmtReceivables & Collections MgmtReconciliation & ClosingAuditing

Intercompany Data ExchangeChange of SupplierReconciliation & SettlementGrid usage Billing

Meter OperationsMeter & Device ManagementConsumption Data Collection

Energy Capital ManagementEnergy Data ManagementEnergy Ledger /Energy Portfolio ManagementEnergy Trading

Analytics Financials Human CapitalManagement

CorporateServices

OperationsSupport

Enterprise AssetManagement

© SAP 2007 /

1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service

2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections

3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook

Agenda

© SAP 2007 /

Basement

Apartment 2

Apartment 3

Apartment 1 Hall

Service Connection: Electricity

Service Connection: WaterSupplyGrid

Street

Connection Object

= Premise

Device locationBasement

Device locationHall

Businesspartner

Contract 1:Electricity

Contract 2:Municipal

Rate

Contract 3:Water

Installation 1:Electricty

meter

Installation 2:Municipal

Installation 3:

Water meter

Contractaccount

The Utilities House

© SAP 2007 /

Classic and Deregulated Data Model

Service-provider

Service

POD

Installation

Device

Register

Premise

Contract

ContractAccount

Business-partner

Synt.Profile

Profiles

ConnectionObject

Regional-structure

Service-provider

Grid

Regional-structure

Service-provider

© SAP 2007 /

Connectionobject

Premise

Installation

Device

Business partner

Contract account

Move-in

Move-In: Master DataTechnical master dataBusiness master data

ContractContract

© SAP 2007 /

Move-out

Contract 2Contract 2

01.02.2003

Move-inMove-in

02. Nov. 02. Dec 03. Jan. 03. Mar. 03.Apr 03. May03. Feb.

Customer 1 Customer 2Customer 2

Installation

Move-in

Contract 1

No Changes to Installation Data

© SAP 2007 /

Meter Reading / Billing / Invoicing ProcessFlow

Create MROrder

MeterReading

Order

BillingOrder

Entry MRResults

BillingOrder

Billing

BillingDocument

Invoicing &Bill Printout

PlausibleMR Result

ImplausibleMR Result

Meter ReadingCorrection

© SAP 2007 /

Regional structure SchedulingMaster data

Meterreading

unit

Businesspartner

Connectionobject

Premise

Account

Installation

Contract

CityCity StreetStreet StreetsectionStreetsection

Politicalstructure

PortionPostal regional structure

Regional Structure and Scheduling

© SAP 2007 /

QUANTITY FACTOR QUANTITYCalculates x% of a quantity

. . .

. . .NUMBER OF DEMAND PEAKS DEMANDCalculates N peak averagesDEMAND PRICE BILLING LINE ITEMSValuates demand with a price

. . .QUANTITY QUANTITY QUANTITYDifference of two quantities

. . .

. . .QTY PRICE BILLING LINEValuates energy with a price ITEMS

ACT_KWH 0.5 ACT_50%

-REACT_KWH - ACT_50% BILL_REACTBILL_REACT USD 0.06 BILLING LINE

ITEMS

Variant pool

Variant pool

Contract text:The reactive energy that exceeds50% of the active energy is valuatedusing a separate price.

*

*

**

*

-

Example: Billing Rule for Electricity

© SAP 2007 /

Budgetbilling plans

Billingdocuments

FI-CA documents

Print

Invoicing- Data entry- Validation- ProcessingFI-CA documents

Manualbilling

Printdocuments

Postingdocument

FI-CA

Budget billingplans

SD documents

Invoicing Tasks

Receivable 100Credit 20

© SAP 2007 /

Optimizationof back-

officeprocesses

Goal

Minimizing ofbilling errors

Optimizationof the meter-readingprocess

Optimizationof the paymentprocess

Critical factorsfor success

OK

Not OK

OK

OK

Not OK

Not OK

Result

% Fully paid bills

KPI

% Returns per reason

# Readings per employee

% correct data received

Time betw. reading & payment

% billing errors

99%

< 3%

5 days

>97%

100

< 1%

Benchmark

Business Goals, Success Factors and KPIs

© SAP 2007 /

Start End

Meter Read to Billing Billing to Invoicing Invoicing to Payment

Meter ReadingPreparation

Meter ReadingPerformed

BillingOutsorting

InvoiceCorrection

KPI Example: Back Office Performance

# Reading# Incorrect readsØ Time for correctingreads

# Billing errors# OutsortingsØ Time for processingoutsortings

# Invoice correctionØ Time for correctinginvoices

costs = # processes x time spent per process

Time between meterreading and invoicing

Time between invoicingand payment

Data Migration...the forgotten functionality

IS-U Migration WorkbenchA tool that compliments the known migration techniquesUsed to migrate IS-U/CCS and IS-Waste business objectsComprehensive coverage of all actions around data transfer

High Performance MigrationImport programs based on fast direct inputHighly parallel import possibleInterface structure width can be reduced

Well and truly stress tested>400 Productive customers

© SAP 2007 /




Agenda

© SAP 2007 /

Frontoffice• IS-U/CCS 1.2

Evolution of the Call Center Agents WorkPlace

L-shape CIC• IS-U/CCS 4.61

IC im CRM• CRM 3.0

IC WebClient• CRM 4.0, 5.0

und 2006s/2

© SAP 2007 /

Analyses

Back end Front end

ITS

CTITele-

business

Electronicbusiness(Internet)

MobileAppl-

ications

SAPIS-U/CCS

SAP BW

Business partnerContract accountsContractsConnection objectsPoints of delivery

Business partnerContract accountsContractsConnection objectsPoints of delivery

Synchronized Business Objects

Business objectssuch as businesspartner, activities,

contracts, products,sales and

distribution projects

© SAP 2007 /

Analyses

Back end Front end

ITS

CTICTI

Business objectssuch as businesspartner, contracts

and products.

Electronicbusiness(Internet)

MobileComponents

SAPIS-U/CCS

SAP BW

Business partner transfer totarget group selection

2) Target group selection

3) Transfer of target groupto SAP CRM

4) Marketing planning5) Campaign creation6) Campaign execution7) Activity management8) Campaign feedback (BW)9) Contract creation10) Contract synchronization

11) Automatic creation of contracts12) IDE communication with prior

supplier or transmission company13) Automatic creation or change of

master data-----14) Transfer of meter reading results15) Billing and invoicing16) Transfer of sales and transaction

statistics to BW17) Optional: Commission

determination

1(a) Import of externaladdresses to targetgroup selection

Example: Marketing and Sales Process

Tele-business

© SAP 2007 /

Synchronization between CRM and IS-U: DataModel

ConnectionobjectInstallation

Contract

Premise

Point ofdelivery

Contractaccount

Bill

Billing

mySAP Utilities mySAP CRM

Point ofdelivery

Contract

Businesspartner

Businesspartner

Businessagreement

Connectionobject

© SAP 2007 /

For Release 2007, we will significantly strengthen the Interaction Center WebClientfor Utilities

The IC WebClient for Utilities will provide more comprehensive out-of-the-boxfunctionality for Utilities than the IC WinClient

If required, the IC WebClient for Utilities can leverage functionality that wasoriginally developed for the IC WinClient

The Agent’s User Interface starting with “Release2007”

© SAP 2007 /

General Advantages of the IC WebClient

1. Complete processes faster through intuitive userinterface and process design

2. Less user errors by leading the agentthrough the process

3. Increase user satisfactionIncrease agent retention periods

4. Train agents faster and with lower cost

5. Reuse available processes no matter if they residein CRM or IS-U/CCS

6. Easier configuration and extensibilityespecially on the UI

7. Small installation and administration cost (TCO)

© SAP 2007 /

Business Scenario in focus

Customer identification/creation

7

4

23

5

1

8

6

Productproposal/pricedetermination

Collection ofcustomer data

Creation ofcontracts

Quotations andoffers

Fulfillment andsettlement

Sales analytics

Set up and perform acampaign setup and

execution

© SAP 2007 /

ToolbarSystemAlerts

Navigation

Work Area

News and alerts

Notes CustomeInfo

Alerts CommunicationsInfo

Contextarea

Title

Interaction Center Web Client: Layout

© SAP 2007 /

Manage contracts and quotations

Minimizing number of clicks - Easy creation of contracts and quotations

From quotation: 1-click „Accept quotation“

From contracts: “follow-up“ contract, „follow-up“ quotation

Prefill product configuration from CRM and IS-U data

Calculate price for energy contracts via IS-U

Check of credit worthiness data via SAP Credit Server (e.g. score)

Create budget billing plans, also for quotations

Generate documents through word integration

Send documents via e-mail and fax

© SAP 2007 /

Contract maintenance - Supporting regulated and deregulated markets

Quotations and Contract management

Move-In New contract

Move-out End contract

Move In/Out for premise New contract with forced end contract

Move In/out for business partner Move to other premise

Change move-in date Change start of contract

Product change Change contract

Reverse product change Reverse change

© SAP 2007 /

Interactive scripts for product proposal

Dynamic scripts include CRM and IS-U data„Currently, we have recorded people living at your premises.“

Answers update system data

Result: List of products to be selected for a quotation or contract

Product proposal

4

© SAP 2007 /

UCES: a complete Customer Portal Solution

Bill Payment

BillPresentment

OverviewPaid Bills

OverviewOpen Bills

Direct DebitSupport

PartialPayments

PaymentDetails

PaymentOverview

EmployeeConfirmation

Process

Create / EditCredit Card

Data

Create / EditBank Data

EditMaster Data

CreateInquiry

E-MailNotification

OffsetCredits withOpen items

CreditsOverview

Move In Move Out Move In/Out EnterMeter Reading

Documentationof

User Acitvities

FAQ

ChangePassword

RequestUser

ScheduledMeter Reading

Dates

ConsumptionOverview

Meter ReadingHistory

ContractDetails

DisplayBudget Billing

Plan

ChangeBudget Billing

Plan

Integration offurther SAPApplications

Integration offurther non SAP

Applications

Role Concept

Collaboration

KnowledgeManagement

Chat DiscussionForum

QuickPoll News

GenericBiller Direct

Content

Utilities-specificE-services

Generic PortalContentLegend:

© SAP 2007 /

Browser

Firewall

Firewall

WebServer

or

SAPEnterprise

Portal

Company Network

UCES architecture based on WAS or EP

SAP ApplicationServer

SAP Web ApplicationServer

SAP UtilityCustomer E-

ServicesFrontend

(Java)

JavaCon-

nector

SAP IS-U/CCS(incl. FI-CA)

Firewall

© SAP 2007 /




Agenda

© SAP 2007 /

Integrating Customer Interaction with FinancialProcesses

ReceivablesManagement

CreditManagement

ProfitabilityAnalysis

Marketing

……

PartnerRelationshipManagement

Customer

CollectionsManagement

Sales &Contract

Management

Customer Relationship Management Customer Financials Management

CustomerCare

Billing ManagementFinancial Inquiries

Dispute ManagementInteractive Collections

Customer&Contact MgmtContract Management…

Order & ServiceManagement

CustomerField ServiceManagement

Logistics & InstallationManagement

CustomerTrouble

Management

ServiceProvisioning/ Activation

OrderManagement

…

CashManagement

© SAP 2007 /

Basic Features of Contract Accounting

CRM

Invoicing

Accounting

Account Management Payment processing Collection GL Traitment

Banks, collections agencies, distributor

Single view ofinvoices frommultiple sources

Display of customeraccount

operationsrecording

Transfer fromaccount to an otheraccount

Interest calculationInstallment planDue date

rescheduling

Payment processingPayment advice

note processingGeneration of

payment files forbanks (ETEBAC)

ReturnsReturns activitiesInbound payments

(TIP, check, creditcard)

clearing of openitems

Dunning proposalsDunning activities

generationDunning chargesCollection agencies

managementScoring

Transfer of openitems in doubtful andautomaticprovisioning

automatic andmanual write off

provisioningadjustment based onevents (paymentreceived from thecustomer or write off)

AccountMaintenanceOperations Payments Dunning

activities Scoring

StandardInterface

PaymentsReturns

Paymentsadvice

Transferto collection

agencies

Discon-nection

© SAP 2007 /

FIFI--CACA

IS-U InvoicingIS-U Invoicing

CO

CashManage-

ment

CashManage-

ment

SDSDinvoiceinvoice

CO-PA

Centralaccounting

interface

FI-GLFI-GL

FI-CA standard integration within ERP:Overview

© SAP 2007 /

FI-CAembedded in IS-U

Customer Financial Management: ModularOverview

Credit / Risk Management

Funds Management

Additional Billing:SD

CRMexternal Systems

GeneralLedger

CostAccounting

Analytics(BW)

DisputeManagement

Worklist Processing

Service OrderManagement /

Mobil AssetManagement for

Utilities

CallcenterIntegration

© SAP 2007 /




Agenda

© SAP 2007 /

Situation Today

In 2003 North American Utilities had to write off ~ $ 1,6 billionof their revenue *)

High DSO blocks working capital

The probability to get paiddecreases with the age ofthe debt

*) Source: Chartwell Credit and Collections Report 2004Months

Prob

abili

ty to

get

pai

d

3 6 12

Example:1 bn revenue and financing costs of 7 %

Reducing DSO by 1 day saves ~ $US 200.000

90 %

60 %48 %

Source: A&S Collection Associates

© SAP 2007 /

Credit & Collections Management – Key Issues

Effective and efficient credit management processesin a distributed sales and billing systems landscape

Central information repository needed for credit decisions

Access to external information required when doing business with newcustomers

Merging of external and internal knowledge about business partner

Tight integration of credit management and collections management

Treatment strategies based on a variety of customer characteristics andtheir risk assignment

© SAP 2007 /

Credit Risk Management in Customer Lifecycle

Move In/Move/Supplier Switch

Consumption BillPaymentProcessing

CollectionsManagement

Credit Risk Monitoring

CampainManagement

DisputeManagement

Credit Risk Evaluation /Customer Segmentation

Field Service OrderManagement

© SAP 2007 /

Collections Management – Overview *)

ExecuteCollectionStrategies

DetermineAgents/Teams

BalanceCapacity

Supported functions• Integration with

Business RulesFramework brings fullflexibility regardingactivity determination

Supported functions• Collections organiza-

tion can be set up inSAP OrganizationalManagement

• Tasks, rules andresponsibilities areused to determine theresponsible team oragent

Supported functions• Capacity for each

activity and teamand/or agent can beset up

• Available capacitiesare taken into accountin activity determina-tion

• Priority assignmentthrough BusinessRules Framework

ManageWork Lists

Supported functions• Release of work lists• Monitoring of

collections progress• (Re-)assignment of

work items• (Re-)prioritization of

work

Process WorkItems

Supported functions• Processing of work

items in theinteraction center

• Promise-to-pay• Collection fact sheet• Collection progress

Issue correspondenceEtc.

Execute Activities:

ICWebClientERP ERP ERP ERP

*) including latest capabilities with ERP6.0/EhP2

© SAP 2007 /

Determination of the Risk Class

External Score Demographic dataAge of the business relationship

Negative credit eventBusiness volume

Direct debit customer

FI-CA creditworthiness

‘Blacklisted‘ customer

Current liability Division/Business Area

ScoreScore

BusinessPartner

Credit Profile

No Contract

Risk Class

High RiskMedium RiskLow RiskNo Risk

Scoring Rule /Formula

© SAP 2007 /

Score

Risk Class II

Def

ault

Pro

babi

lity

Very Good Very Bad

10%

20%

30%

• Payment via DirectDebit

• Tight Credit Limit• Security deposit

= Customers

Risk Hedging by customer segmentation andderivation of appropriate activities in sales and collections

Collections According to the Risk Class

Risk Class III

• Reject Contract• Prepaid Meter• Special payment

options

Risk Class I

• Payment on account• Good Payment

Terms

© SAP 2007 /

Dynamic Activity Determination - Example

Dynamic evaluation of any parameterLinear as well as decision-tree based evaluationsLogic is transparent to the businessConfigurable by the business userNo programming requiredTight integration of manual and automatic activities is possible

NextTreatment: L2

Previoustreatment

L1?

Previoustreatment

L2?

L1 – Earlyreminder

Treatementso far?

High Risk? Medium Risk? ELSE?

Send to legalcollections

Brokenpromises?

Send to externalcollections

Call customer(L3A)

Final contract? ...

Send to legalcollections

Y N

N N

Y

Y

N Y

Y

Y

© SAP 2007 /

CollectionsTeam 1Collections

Team 1

Collections Embedded in OrganizationalStructure

Multiple independent collectionsorganizations can be set up

Teams or individuals can be determinedbased on business rules

Taking into account absence of agents

Automatic determination and manualintervention by collection manager

Prerequisite for workload balancing

CollectionCenter

Region West

Position:Collection Manager

Sandy

Responsiblefor CollectionsIn Region West

CollectionsTeam 1

CollectionsTeam 2

Position:Team Lead

John

Responsiblefor PrivateCustomers

Position:Collection Agent

CathyPosition:Collection Agent

Fred

For customersrange A-K

Responsible

For bankruptcustomers

Responsible

© SAP 2007 /




Agenda

© SAP 2007 /

Market Model and resulting requirements foran ECM

Technique

New generation of metersAdvance Meter Infrastructure (AMI)New types of communication

UtilityUnbundling, competitionAccess to grids without discriminationNew market participants, processes andopportunitiesCooperations, mergers and acquisitions

Information TechnologyIncreased demands on the quality of dataFast availabilityReasonable implementationReliability of investmentsIntegration of heterogeneous systems

Customer

Transparency, reasonable pricesIndividual contractsPersonalised ServiceUse of the Internet

Market

Competition for all customersegmentsSpotmarkets, Markets for futuresand optionsContracts with short validityperiods

© SAP 2007 /

Market and Company Changes

Transmission company

Customer

Transmission, maintenance,removal and safety / guarantee

of supply

Market, bilateral contractsor in-plant generation

Supply contract forenergy, customer service,

and other services

Customer information,load shapes, payment

consolidation, etc.Distribution

company

Distribution, maintenance,removal and safety / guarantee

of supply

Supplier

Load shapes,measured values,

etc.

Energyprocurement

© SAP 2007 /

Lifecycle of the Energy Data Management

Profile Data Management

11

33

5544

66

Formula Calculation &Synthetic Profiling

7722

Upload and Store intoEnergy Data Repository

Plausibility Checking& Value Substitution

Processing Energy Data(Complex Billing, Settlement)

Archive Energy Data

Creation ofMaster Data (e.g. Profile Header)

© SAP 2007 /

IS-U/CCS

Discretedata

EDI / XML

EDI / XML

IS-U

Ene

rgy

Dat

a R

epos

itor

y

PODdata

Loadshapedata

Load shapemeter

AMR

Meterreading

docs

Download

Upload

Data Entry

PrintMeter

Signal

Download

W W W

Integrationto other

applications

ComplexBilling

SchedulingIM

POR

T / EXPOR

T

IMPO

RT

/ EXP

OR

T

ContractA/R & A/P

Invoicing

DeviceManagement

Customer/contract

data

IS-U/EDM within SAP for Utilities

Meter readingby customer

DataEntry

Settlement

IS-U/EDM

© SAP 2007 /

Data Objects for ECM

Serviceprovider

Service

PoD

Anlage

Device(info record)

Register

Premise

Contract

Contractaccount

Businesspartner

Syntheticprofile

Profile

Connectionobject

Regionalstructure

Serviceprovider

Grid

Regionalstructure

Serviceprovider

© SAP 2007 /

Consistency Checks

From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.20001:00:00 01:14:5901:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014

From-time To-time Value00:00:00 00:14:59 10.00000:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.20001:00:00 01:14:59 5.02001:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014

From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.200

01:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014

From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 100.00000:30:00 00:44:59 10.20001:00:00 01:14:59 5.02001:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014

Gapcheck

Overlapcheck

Completenesscheck

Tolerancecheck

© SAP 2007 /

Replacement Value Procedures

0102030405060708090

1. Qrtl. 2. Qrtl. 3. Qrtl. 4. Qrtl.

Ost

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

Missing values

Linear replacement value procedure

0

20

40

60

80

100


Ost

West

Nord

0

10

20

30

40

50

60

70

Minimum valuereplacement valueprocedure

0

20

40

60

80

100


Ost

West

Nord

0

10

20

30

40

50

60

70

Maximum valuereplacement valueprocedure

© SAP 2007 /

30 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

50 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Inter-/Extrapolation

02.10.2004

KW

00:00 12:00 24:00

Interpolation

Extrapolation

01.07.2004

© SAP 2007 /

Formula Profiles

Formulas:SUMSUBTCOPYMULTILIMIT...

Customer-specific calculation algorithmsAny desired hierarchyEvent-controlledSynchronous/asynchronous calculation

© SAP 2007 /

Complex Billing: Real-Time-Pricing & Time of UseBilling

Demand-dependentlimit*

*) Fixed value, profile, schedule...

Time-dependentlimit 1

Time-dependentlimit 2

© SAP 2007 /

…and what you will see in the system

On Peak

Consumption

Off Peak

Consumption

On Peak

Consumption

Maximum demand

Off Peak

Consumption

p

t

Off Peak

Consumption

Rate category EDM_01

Period for Sport Agreement (limited)

Spot-Cons.above

Spot-Cons.below

© SAP 2007 /

Example: settlement by distributor

Aggregated loadprofile per supplier

Energy feeding curve

at grid connection points

Control Area Operator/Settlement Coordinator

3rd party customers

Load profile percustomer and supplier

Distributor

Supplier III

Supplier II

Supplier I

© SAP 2007 /

Outlook: Portfolio Management Processes

Risk Management

Analytics

SalesProcess

forEnd

Customer

DemandPlanning

ProcurementProcess

SalesProcess

EnergyTrading

Administrationof Sales &

ProcurementPortfolio

© SAP 2007 /




Agenda

© SAP 2007 /

SAP for Utilities – CRM & Billing

DeviceMgmtMeter

Reading

Energy DataRepository

Real TimePricing

PortfolioManagement

Billing

Intercompany Data Exchange (IS-U/IDE)

IS-U/EDM IS-U/CCS

mySAP CRM

Middleware

Marketing Sales Service

InvoicingContractAccounting

Deregulation processes for specific Country and Sector

© SAP 2007 /

Infrastructure

SAP IDE: Solution for the liberalised EnergyMarket

Processes +

© SAP 2007 /

SAP IDE: Building Blocks

Infrastructure

Processes•Point of Delivery, Service Provider

•Supply Scenario

•Service Provider Agreement

•Switch document

•Data Exchange

•Monitoring

•Check Framework

•Exception handling framework

•List processing …

•customer win, customer loss

•change of supplier

•grid usage billing

•grid usage bill validation and payment

•change of device

•change of customer data

• …

© SAP 2007 /

Master Data Model

Serviceprovider

Service

PoD

Installation

Device(info record)

Register

Premise

Contract

Contractaccount

Businesspartnr

Synth.profile

Profile

Connectionobject

Regionalstructure

Serviceprovider

Grid

Regionalstructure

Serviceprovider

© SAP 2007 /

Example: SAP IDE - Change of Supplier

Switch document

Service provider agreement

Check framework

Period management

Supply scenario

IDOCBOR

BOR

BOR

BOR

BOR

Terminationprocessingworkflow

Supplyregistration

workflow

Change ofsupplierworkflow

Deregulation Process:GRIDUSAGE

Master data

UTILMD

Front officeprocess

Workflowinbox

InfrastructureDeliveredProcess Examples

BOR

Data exchange process

© SAP 2007 /

Changing to New Market Model:From Incumbent …

2574 1

Grid AccessProvider

Metering PointAdministrator

Metered DataCollector

GridOperator

Metered DataResponsible

TradeResponsible

Party

BillingAgent

CollectionAgent

CustomerService

ResponsibleBalanceSupplier

Engineering &Construction

PlantOperator

MaintenanceEngineering

Plant audit& inspection

PlantDesign

MeterOperator

MeterAdministrator

Metered DataAggregator

. . .Customer

Premise

Generation

Distribution Service Operation

Energy Retail

“Incumbent”The vertically integrated Utility

© SAP 2007 /

Generator /Energy Trader

1. Plant designer2. Plant engineer &

constructor3. Plant operator4. Maintenance engineer5. Plant auditor &inspector

1 2 3 4 5

DSO

1 2 3 4 5

1. Grid Access Provider2. Grid Operator3. Metering Point Admin.4. Meter Administrator5. Meter Data Aggregator6. Meter Data Responsible7. Meter Data Collector8. Meter Operator

6 7

. . . to Highly „Role“-SpecializedService Providers

Competitive open market

Natural Monopoly(regulated)

Retailer

1 2 3 4 5

1. Balance Supplier2. Trade Resp. Party3. Billing Agent4. Collection Agent5. Customer Service

Responsible

© SAP 2007 /

... and Market-Specific Rules

2574 1

Energy Market

DSO

Market C

omm

unication

Premise

Customer

highlyautomated

mass processes

Retailer Generator

Trader

© SAP 2007 /

Roadmap to the European Energy Market

Central South Liberalization Hub(Connecting markets)

Central East Central West

Baltic UK & Ireland

Northern South WestERGEG regional market initiatives (electricity):

time

Today Future(as to ERGEG)

© SAP 2007 /

Etso/ebIX Role Model

etso and ebIXworking together in order to define a model ofthe European liberalized energy markets.

This model :describes the various roles for the electricity marketand their relationshipsaims at developing a common understanding of themarkets serving as a basis for the development of :

IT data modelbusiness processesexchange of information SAP supports ebIX activities

SAP feeds inputs into ebIXworking groups

© SAP 2007 /

Grid AccessProvider

MeteringPoint

Administrator

MeteredData

CollectorGrid

OperatorMetered DataResponsible

The Concept of a New Market Role Model

Market

Role

MarketParticipant DSO

© SAP 2007 /

SAP Solution Approach for Liberalized Markets

SAP for Utilitiesincluding

SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for Utilities. . . . .

SAP Collaborative Services for Utilities (IS-U/IDE)Infrastructure and Toolbox for the adaptation of

SAP for Utilities to regulatory market rules

ERP2005

SAP CRM,IS-U/CCSIS-U/EDM

IS-U/IDEXExtension for compliance to market rules

per country/region gas and electricity

© SAP 2007 /

SAP for Utilities Compliant to Regulatory MarketRules

SAP‘s offer to local liberalized markets:Compliance for DSO/Retailer/Meter Operator, Gas/ElectricityExtended maintenance including adaptation to future regulatory rules

SAP counts on common initiatives including all customers per marketto define the Add-On solution scopeTerms and Conditions to be defined per market

IDEX-??IDEX-NLIDEX-UK IDEX-GE...

SAP ERP2005including SAP IS-U/CCS, SAP IS-

U/EDM

ERP2005SAP for Utilitiesincluding

SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for UtilitiesSAP Collaborative Services for Utilities. . . . .

SAP CRM,IS-U/CCSIS-U/EDMIS-U/IDE

SAP for Utilities Liberalization Competence Centre

© SAP 2007 /

Main Areas of Future SAP Developments

Deregulation

Continuous enhancement of deregulationframework for electricity and gas based onenterprise SOAProcess adoption to European market rolemodel

CompetitiveRetail View

Further usability improvements throughconsequent ICWC process adoptionRetail Template (incl. C&I processes)Energy Ledger

EnterpriseAsset

Management

Reliability Centered Maintenance OptimizationProcessing of Compatible UnitsMultiple Resource SchedulingProcurement of Complex Services

AMI&

Smart Grids

Comprehensive AMI process integrationSmart interfaces to technical MDM / AMIsolutionsSpecification of process requirements forsmart grids

ente

rpri

se S

OA

ado

ptio

nfo

r new

and

exi

stin

g pr

oces

ses

© SAP 2007 /

Advanced Meter InfrastructureProvides (at least) hourly meterreadings to utility (every day) onreliable basisAutomation of common businessprocesses, e.g. disconnection ofmeter

The Evolution in Metering

Conventional Meter ReadingManual readings/customer selfreadsMDE devicesAutomated Meter Readings(AMR), e.g. C&I customers

Change of Paradigm

Meter Meter

Advanced Metering Infrastructure (AMI)“… refers to systems that measure, collect and analyze energy usage, from advanceddevices such as electricity meters, gas meters, and/or water meters, through variouscommunication media on request or on a pre-defined schedule. “ (Source: Wikipedia)

© SAP 2007 /

2574 1

Premise(Power-generating)

Smart

Meter

Improvement of Energy Efficiency through“Advanced Metering Infrastructure” (AMI)

Energy Market

DSO

Market C

omm

unication

Customer

Retailer Generator

Traderhighlyautomated

mass processes

© SAP 2007 /

SAP for Utilities Liberalization Competence Center

Consists of a dedicated team of SAP experts that bundles know how about theliberalized market

Works closely with customers in deregulated markets around the world toidentify and translate the new specific regional needs

Offers solutions (IDEX Add-Ons) that enhance the SAP for Utilities solution tosupport the new local market rules of deregulated markets

SAP for Utilities Liberalization CompetenceCenter (LCC)

Commitment & Thought Leadership

Henning Kagermann announced at the 6th SAPInternational Utilities Conference (Feb. 2007):

SAP has launched the SAP for UtilitiesLiberalization Competence Center

© SAP 2007 /

LCC Team

Liberalization Competence Centre (LCC) – TeamStructure

LCC Steering Committee

Program Manager LCC

ExecutionTeam

LCC Program Monitoring

SolutionManagement

BusinessDev.

IBU FieldServices

IBU Sol.Man.

AGS

Consulting

Industry Dev.

LCC GlobalSponsor

CustomDevelopment

IMS

Sales EMEA /IBD

LCC Core Team

SAP Country

© SAP 2007 /

Co-Innovation with Customers and Partners

Industry ValueNetworks

LeadingIndustry Solutions

Industry AdvisoryCouncils

SAP for Utilities based onSAP’s Business Process

Platform

SAP has 20+ years ofUtility Industry Experience

Industry Thought Leadership

© SAP 2007 /

SAP Solution Approach for Liberalized Markets

SAP for Utilitiesincluding

SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for Utilities. . . . .

SAP Collaborative Services for Utilities (IS-U/IDE)Infrastructure and Toolbox for the adaptation of

SAP for Utilities to regulatory market rules

ERP2005

SAP CRM,IS-U/CCSIS-U/EDM

IS-U/IDEXExtension for compliance to market rules

per country/region gas and electricity

© SAP 2007 /

SAP for Utilities Compliant to Regulatory MarketRules

SAP‘s offer to local liberalized markets:Compliance for DSO/Retailer/Meter Operator, Gas/ElectricityExtended maintenance including adaptation to future regulatory rules

SAP counts on common initiatives including all customers per marketto define the Add-On solution scopeTerms and Conditions to be defined per market

IDEX-??IDEX-NLIDEX-UK IDEX-GE...

SAP ERP2005including SAP IS-U/CCS, SAP IS-

U/EDM

ERP2005SAP for Utilitiesincluding

SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for UtilitiesSAP Collaborative Services for Utilities. . . . .

SAP CRM,IS-U/CCSIS-U/EDMIS-U/IDE

SAP for Utilities Liberalization Competence Centre

© SAP 2007 /

AMI@SAP Project

AMI@SAPAMI@SAPProjectProject

ItronItroneMetereMeter

OSIsoftOSIsoft

FPLUtility

CustomerAdvisoryCouncil

© SAP 2007 /

The SAP for Utilities Enterprise SOA Roadmap

Learn and Trial PhasePrototyping of services and Composite Applications

Execution PhaseService development on a large scale

Service Definition and Execution PhaseService definition and business object modelingDevelopment of key services

Time

Number ofServices

2006

2007

2008

© SAP 2007 /

Utilities Enterprise SOA RoadmapBusiness Process Platform for Utilities (BPP4U)

Advanced MeterInfrastructure

services to allow new innovativeand highly automated meter

processes

Market Communication

services to enable thecommunication and transactionexecution between the different

company roles

CustomerCommunication

services allowing innovative andcompetitive products and

services

Bill to Cash

services ensuring highly flexiblecomposite applications offering

new services and improvecash/flow

Integrated NetworkAsset Register

basic interoperability betweenGeographic Information

Systems (GIS) and the IndustrySolution SAP Utilities

5 Enterprise Service Bundles with 300+ enterprise services

© SAP 2007 /

Retailer GenerationGasFull ServiceSuppliers &

PartnersCustomers &

ChannelsGeneration Transmission &

DistributionMeter Operation Retail & Services


Plant Life Cycle Management

Grid Life Cycle Management

Resource ManagementMeter Reading

Services


Selling of Energy and Services


Billing of Energy and Services

Customer Financials Management


Suppliers &Partners

Customers &Channels

Generation Transmission &Distribution

Meter Operation Retail & ServicesSuppliers &Partners

Customers &Channels


Meter Operation Retail & Services


Plant Life Cycle ManagementPlant Life Cycle Management

Grid Life Cycle ManagementGrid Life Cycle Management

Resource ManagementResource ManagementMeter Reading

ServicesMeter Reading

Services

Energy Capital ManagementEnergy Capital Management

Selling of Energy and ServicesSelling of Energy and Services

Customer Service ManagementCustomer Service Management

Billing of Energy and ServicesBilling of Energy and Services

Customer Financials ManagementCustomer Financials Management

Collaborative Services & Intercompany Data ExchangeCollaborative Services & Intercompany Data Exchange

Suppliers & Partners Customers & ChannelsTransmission & Distr ibution Meter Operation Services


Grid Life Cycle Management

Resource Management

Meter Reading Services



Billing of Energy & Transmission Services



Suppliers & Partners Wholesale & RetailersGeneration


Asset Life Cycle Management

Resource Management


WaterSuppliers & Partners Customers & ChannelsExploitation & Preparation Transport & Distr ibution Retail & Services


Plant Life CycleManagement

Grid Life CycleManagement

Resource Management

Meter ReadingServices

Customer ServiceManagement

Billing of W ater& Services

Customer FinancialsManagement

Selling of W ater&Services

Suppliers &Partners

Customers &Channels




Selling of Energy & Services




Billing of Energy & Services



Suppliers &Partners

Customers &Channels




Suppliers &Partners

Customers &Channels


Meter Operation Retail & ServicesSuppliers &Partners

Customers &Channels




Selling of Energy & ServicesSelling of Energy & Services



Energy Capital ManagementEnergy Capital Management

Customer Service ManagementCustomer Service Management

Billing of Energy & ServicesBilling of Energy & Services

Customer Financials ManagementCustomer Financials Management

Collaborative Services & Intercompany Data ExchangeCollaborative Services & Intercompany Data Exchange

BPP4U: marktrollen-spezifische Ausprägungder SAP for Utilities Plattform

© SAP 2007 /

mySAP™ ERP 2005 –Stable Foundation for the Next 5 Years

2006 2007 2008 2009 2010

mySAP ERP 2005

SAP NetWeaver

Enhancement Packages

2005

Enhancement packages delivercontinuous innovation withoutupgrades and can include …

Technical and functional enhancementsNew enterprise servicesComposite applications

2011

Nextrelease

© SAP 2007 /

1. Market Drivers and Future Vision2. SAP for Utilities Development Roadmap until 20103. New SAP for Utilities/CRM Strategy

Agenda

© SAP 2007 /

On course to retail success with SAPfor Utilities

COMPREHENSIVESIMPLE FLEXIBLE

SAP for Utilities - CRM Development Roadmap

“CRM 7.0”Extended sales & serviceReal-time offer managementImproved handling of B2BcontractsNew Enterprise ServicesSupports new customer-relatedprocesses within an AdvancedMeter Infrastructure like smartproducts for remote disconnect

Available ~ Q4/2008

CRM 2007Customer Service&Salesin the Interaction Center - B2Cfor key account managers - B2BEnhanced Self ServiceCapabilitiesMarketing andCampaign AutomationEnterprise Services for

Customer CommunicationMarket communicationAvailable now

© SAP 2007 /

Our plans for the future

“Striving for the ultimate sales machine”Deep integration of real-time offer managementMuch improved design and deployment of energy products/bundlesBetter integration into marketing for campaigns and promotionsSupport of new “smart products” for retailers operating in an AMIenvironment that

are aware of additional smart meter capabilitieslike load limitingsupport load management programssupport prepay products w/o special prepay meters

Integration of CRM into the portfolio management processPlanned 2009

COMPREHENSIVESIMPLE FLEXIBLE

SAP for Utilities - CRM Development Roadmap

© SAP 2007 /

Industry-Specific CRM-Integration

BusinessWarehouse

Portal

CRM

mySAP Utilities/ERP

Kalkulationstools, Office, CTI etc.

Call Center

© SAP 2007 /

ComprehensiveBest-in-class CRM with the power of the back office

End-to-endProcesses

Marketing, sales,service and all customerinteraction channels

End-to-end processes

Industry solutions

Self-service InteractionCenter PartnerField

Multi-channel

sap for utilities overview and outlook 03 2008

Documents