what does digital transformation mean for water utilities?€¦ · global smart water meter...

What does digital transformation

mean for water utilities?

Brian Williams

ENR Industry Advisor, SAP EMEA South

What does digital transformation

mean for water utilities?

…..it depends….

Content

• Trends

• Price of water

• Digital transformation case studies

• Priorities

• Customer Service to Customer Engagement

• Digital Asset Management

• Reporting and Analytics

• Conclusions

Trends

Water Supply

If present trends continue, two out of every three people on Earth will live in in countries considered to be "water stressed" by 2025.Source: Millennium Report of the Secretary-General of the United Nations

Water Infrastructure

Organizations generating maintenance work orders mostly from preventive and predictive maintenance inspections have on average 42% higher return on assets.Source: SAP EAM Benchmarking Study based on 60+ companies

According to various industry sources in the United States,

about 40% of all water valves and 10% of hydrant valves are

inoperable.Source: Warren B. Causey, Five Point Partners LLC

“Important Issues Water Utilities Face”

US water utility executives estimate they will need about $335 billion in capital investment over the next 20 years just to keep the water flowing.Source: Warren B. CauseyFive Point Partners LLC“Important Issues Water Utilities Face”

With much of the world’s water infrastructure nearly a century

old, there’s a crying need to prevent “non-revenue” losses

suffered by water utilities. The World Bank estimates that

worldwide costs from unmetered water total $14 billion annually.

Source:

www.greentechmedia.com/articles/read/the-smart-grid-for-water-gets-bigger

Improve Energy Efficiency of Water Supply

In California sourcing, moving, treating, heating, collecting, re-treating, and disposing of water consumed 19 percent of the state’s electricity, 32 percent of its natural gas, and 88 billion gallons of diesel fuel each year.“Source: California Energy Commission

Studies estimate potential savings of 15-30 percent that are "readily achievable" in water and wastewater plants.Source: http://water.epa.gov/infrastructure/sustain/energyefficiency.cfm

The energy costs account for up to 20% of the overall costs. Processes in waterworks and waste water treatment plants still have an energy efficiency potential of up to 20% though quite some optimization already happened.Dr. Christoph Donner, Ronald RoepkeRheinisch-Westfälische Wasserwerksgesellschaft mbH, Nov.2010

Global smart water meter shipments are expected to reach 29.9 million units by 2017, up from just 10.3 million meters in 2011.Source: Pike Research, May. 2012

Water leakages and unmetered water are driving increased investment in technology to properly meter water, detect leaks, identify degrading systems and otherwise make water delivery more efficient. Source: www.greentechmedia.com/articles/read/the-smart-grid-for-water-gets-bigger/

Take Advantage of Next-Generation Technology

New water meters helping to detect thousands of leaks in southeast England. Source: METERING.COM July 2012

Price of water

Price of water

• Based on published tariffs and exchange rates as of 10 May• Each city has 4 or more tariff categories. Non-metered property based tariffs have many more.• Excludes sewerage (sewer fees are approx. 65-75% of water)• Includes VAT where applicable (at time of tariff being published)

Cape Town Lagos Nairobi* Cairo Casablanca Dubai Riyadh Rome Athens Karachi* London* Charlotte

Residential (Lowest) (kl) 6 6 10 6 27.27 50 7.67 5 4.473

Residential (Highest) (kl) 35 60 40 120 54.56 300 30.67 35 25.23

Residential (Lowest) (USD/kl) 0.33$ 0.56$ 0.00$ 0.03$ 0.25$ 2.58$ 0.03$ 0.25$ 0.42$ 0.23$ 1.74$ 0.56$

Residential (Highest) (USD/kl) 3.13$ 0.73$ 0.64$ 0.45$ 1.17$ 3.27$ 1.60$ 5.93$ 3.81$ 3.15$

OR OR

Residential (Lowest) 5.26$ -$ 0.50$ -$ 0.64$ -$ -$ 3.33$ 1.19$ 0.84$ 28.17$ 4.02$

Residential (Highest) 14.66$ -$ 1.00$ -$ 1.07$ -$ -$ 3.33$ 1.19$ 77.10$ 316.58$ 4.02$

Fixed Fee

(Water Only)

Metered

Consumption

Desalination and reuse in Israel:• Average residential tariff for potable water is USD 2.58/kl (5 different grades of water nationally)• EVERY DROP of every water quality is metered with a detailed national true up monthly• By far leading the world in reclaiming wastewater, Israel treats more than 90% of its sewage – most of which

is then reused.

Desalination Cost (USD/kl): 0.84Ground water reuse (USD/kl): 0.20

Digital transformation case studies

Dubai Electricity & Water Authority

Technical Review Middle East

4 December 2016:

DEWA introduces world’s first

virtual reality utility inspection

project

Dubai Electricity and Water Authority

(DEWA) has launched a pilot project for the

world’s first virtual reality (VR) remote inspection for utility maintenance. The pilot project combines autonomous robots from SAP’s VR and Internet of Things (IoT) to remotely inspect DEWA’s electricity and water networks.

Dubai Electricity & Water Authority

Simplification and Process ImprovementSeven Domains Identified

Tactical

Ad

van

ced

Asset

Man

ag

em

en

t/

Asset

Netw

ork

Customer Experience Supply Chain Mgt

Strategic

Inte

llig

en

t G

rid

Finance Talent Management

Operational

27

24

110

11

12

1314

15

16

17

19

20

21

22

23

25

28

26

17

SAP HANA PLATFORM

1

6

2

4

53 7

1 Visualization concept in CHP plants' control rooms, 3D modelling

10Integrated production transportation and distribution optimization

11Predictive maintenance, Asset Monitoring12Predictive Call Center and Next Best Actions / Predicting

customer behavior13Revenue leakage analytics - Fraud, losses..14Smart Meter analytics; Predicting customer behavior;

network consumption and evolution15Marketing and Social 16Supplier collaboration 17OEM suppliers asset collaboration 19Spatial Analytics on Customers20 Demand Forecasting21 Spare parts optimization22 Human & Intellectual Capital23 Risk Management24 Process Utilities25 Supply Chain Optimization & Traceability28 Financial & Audit26 Mobile workforce 27 Digitalize the Boardroom

The SAP Team identified 20 use cases/services which can be enabled by SAP

technology and are relevant for DEWA. Jointly with DEWA the use case have been

grouped into seven investment domains:

Acea (Rome)

Acea is the leading Italian operator in the water sector supplying 9 million inhabitants in Lazio, Tuscany, Umbria and Campania; it’s one of the major players in Italy in terms of the distribution and sale of electricity, distributing 10 TWh and selling 8.3 TWh. Acea is the sixth biggest Italian waste-to-energy operator, and has processed 820.000 tons of waste. On 31 December 2016 the Group was employing 4.968 people.

In March 2016, the Acea Board of Directors approved the Group’s 2016-2020 Business Plan. The Business Plan confirms Company strategy is focused on regulated business, the innovation and rationalisation of internal processes, and service quality. Forecasts allow for the new electricity and water distribution regulatory framework, with the consequent optimisation of the allocation of resources in the most profitable business segments. Furthermore, there is a hypothesis for acceleration and the expansion of efficiency objectives, especially with reference to the Acea 2.0 digital innovation project.

Acea (Rome)

1) SITUATION BEFORE DIGITALIZATION• Acea is a multi-utility company, supplying water and electricity and

distributing energy to other retailers on the free market• Acea worked on previous three different business areas (water supply, energy

distribution and energy supply) with three different systems, solutions and approaches

• In addition each company of the Acea group was using different corporate solutions in the areas of financial, controlling, treasury, HR and reporting

• The three CRM systems were different, no customer unique database was available

2) NEED FOR CHANGE• The first important need of Acea was to improve its operational cycles. That

means to optimize the way Acea handles the maintenance of the water pipelines, pumps, meters, electrical stations, wires and illumination services. Main goal is to lower the costs of maintenance improving the service.

• The second important need of Acea was to improve the meter-to-cash processes. That is to improve all the processes that generate revenue to the company.

• The third need of Acea was to centralize all corporate systems to have a common and unique handling instead of a multicompany one.

3) SITUATION AFTER DIGITALIZATION• CRM and IS-U solutions for Water and Distribution sectors• CRM and IS-U solution work-in-progress for Energy sectors• Work Force Manager solution (with SAP PM, Syclo and Click Schedule) to

handle the operational cycle of the whole group.• Centralized financial, controlling and treasury processes for all companies • Unique reporting database and functionalities• Unique procurement process and system for all companies and employees

of the group• New customer engagement approach through C4C and Hybris to be

delivered by last quarter 2016

4) TANGIBLE RESULTS• The 3500 workers that do active maintenance of wires, pipes and facilities

have optimized plans and schedules based on their working shifts and with automatic geolocalization of the failures, being monitored on realtimethrough tablets.

• The maintenance workers exchange information on jam collaboration groups through new mobile apps

• Unique controlling model for the whole group allowing the comparison of costs across the different companies

• From October onwards centralized handling of all customers and prospects with a new multichannel approach

• Unification of the systems supporting the call centers and the customer desks. Unique customer database.

Acea (Rome)

Innovation: a new ENEA software to enhance resilience to severe weather and related hazards

ENEA and ACEA Distribuzione are testing an innovative software allowing to predict the risk posed to energy and water infrastructures by extreme weather events such as severe rainstorms, floods and landslides.

"Once data from sensors and weather forecasts are acquired -Vittorio Rosato, Head of the ENEA Laboratory for the Analysis and Protection of Critical Infrastructures, explains- the application develops risk scenarios, identifies the elements of the infrastructure that are at risk and calculates the impact of a possible electricity outage on citizens and the productive system. Acquiring this information - Rosato adds- enables the electric utility and the authorities to deal with emergency situations, taking effective measures to ensure prompt interventions“

The system ENEA is testing in collaboration with ACEA Distribuzione - soon to be extended to the ATO2 water network - is part of the project RoMA (Resilience Enhancement of Metropolitan Areas), funded by the Ministry of Education, University and Research. The project was inspired by the technologies developed under the European project CIPRNet (Critical Infrastructure Preparedness and Resilience Research Network) for the Competence Centers for the analysis of the risk of critical infrastructures in Europe, that will provide a 24-h risk analysis of critical infrastructures with a prediction from afew hours to a few days.

Acea (Rome)

“Rome, City of Ancient Aqueducts, Faces Water

Rationing” July 27, 2017, The New York TimesA severe drought and sweltering temperatures have led city officials to

consider rationing drinking water for eight hours a day for a million and a half

Rome residents.

Since May, the city-controlled water utility, Acea, has rushed to repair 2,000 of its 7,000 kilometers of water pipes, recovering a hundred liters of water per second.You have 4 free articles remaining.

Even as the Acea website boasts “Roma, Regina Aquarum” (Rome, Queen of the Waters), its system has become so decrepit that about 44 percent of the water is stolen, spills out underground or pools onto the street.

National Water Company (Riyadh)

Most of Saudi Arabia is a desert: Very hot, dry, windy, extremely dusty and with isolated rare big storms that inundate infrastructure.

National Water Company (Riyadh)

Saline Water Conversion Corp. (Riyadh)

“WCC continues to exert efforts to provide desalinated water from its 28 operational plants scattered across the Arabian Gulf and the Red Sea in KSA. During the year (2014), the total desalinated water exports amounted to (1107.6) million cubic meters.”

Saline Water Conversion Corp. (Riaydh)

Solution Enablers• Asset Information Governance helps to

create master data in a centralized, fully governed process and correlate disparate asset information.

• Maintenance Planning and Scheduling:Enables Utility to plan work and assign the “right” skilled person. A company can then measure planning by comparing planned hours versus booked hours on jobs.

• Mobile Asset Management Enables mobile maintenance processes to improve technician productivity, asset uptime, and safety. A complete suite of already built in

applications for field workers: meter management, network inspections, construction works and additional Technical Asset Related processes.

• Multi Resource Scheduling. Promptly assign the best available resource for each job. Scheduling and dispatching – Use an intuitive graphical planning board to meet service demand. Optimization of schedules – Match demand with the right resources using key criteria

Solution EnablersSense• Remotely sense operational data from

equipment: SAP Predictive Maintenance and Service collects sensor data, merges it with business information (like past maintenance records) and other data such as weather or text information

Predict• Analyze and monitor equipment data to

find conditions or patterns for failures, correlating with business information and applying rules to predict future malfunctions

• At any point in time, gain full visibility into current asset health and asset health predictions by monitoring and analyzing Big Data with SAP HANA in-memory computing

Act• When necessary, apply preventive counter

measures that trigger maintenance orders in service or plant maintenance systems

• Optimize maintenance and service operations and enable new business models around the equipment

Solution EnablersPortfolio Planning and Monitoring• Portfolio Planning & Prioritization• Visibility into the performance of the

capital project portfolioProject Management and Execution• Developing detailed project plans and

cost estimates, monitoring financial information and project progress relative to these plans, and roll up detailed costs for cross-project analysis.

• Tracking the procurement of parts, equipment, and services related to the project structures.

• Continuous progress monitoring, status update reporting, and cash flow control across all projects

“This innovation blueprint presents a new approach to managing innovation and digital transformation for Thames Water, Wastewater in line with the digital age; with the aim of working smarter, more efficiently and with less risk ahead of the market deregulation in 2017.

This blueprint is the outcome of a journey that began with an innovation workshop held on the 13th of November, during which 167 raw ideas were generated. These were subsequently refined, prioritised and developed into 5 strategic themes for innovation and digital transformation.”

Thames Water (London)


Is there a way for the network to use machine learning to identify its assets (and asset health) by itself?

# Risk 2016/17 Comments

Acce

ssib

ility

Tim

elin

ess

Accu

racy

Re

liab

ility

Co

mp

lete

ne

ss

Tra

nsp

are

ncy

1

Risk that leakage performance

reporting is incomplete, inaccurate,

unreliable and not communicated in a

transparent way (Customer priority)

X X X X X Our mitigation activities as detailed in our Assurance Plans are deemed to reasonably reduce the reporting

risk surrounding leakage performance.

We have noted that further development is required to continue to involve and educate customers and

stakeholders; we feel that this relates to reporting on all of our complex performance commitments

generally. As leakage is of high importance to our customers we have concluded that this item should remain

as an ongoing targeted risk' to ensure that we continually seek to improve our reporting and engage with our

customers frequently to ensure that we are meeting their needs.

2

Risk that sewer flooding performance

reporting is incomplete, inaccurate,

unreliable and not communicated in a

transparent way (Customer priority)

X X X X X In 2015/16, a deep dive exercise highlighted issues regarding the completeness of sewer flooding data. We

have now completed our internal review of the 15,599 records which were potentially affected and identified

2,365 incidents which were potentially due a GSS payment and 1,775 additional internal SFOC incidents

which would have been reportable under AMP5 guidance. From our findings, we have made a total of 1,795

GSS payments to the value of £736,570 and also made a payment of £210,328 to our Trust Fund to reflect

those 295 customers who could not be located. To prevent this issue from recurring in future we have

adopted the following:

1) Added in two additional layers of verification checks

2) Re-trained over 550 employees to date (the vast majority, with the residual due to sickness or holiday)

3) Completed our first iteration of the Compliance Manual which captures existing controls and drives a

programme of continuous improvement in flooding data.

4) System fixes are underway with system replacement due in the Summer of 2017.

Due to the significance within customer priorities, conclusion is to keep this as a risk in 2016/17.

Risk Category


# Risk 2016/17 Comments

Accessib

ility

Tim

elin

ess

Accura

cy

Relia

bili

ty

Com

ple

teness

Tra

nspare

ncy

3

Risk that complex Performance

Commitment reporting is incomplete,

inaccurate, unreliable and not

communicated in a transparent way

X X X X X X We have noted during completion of our Assurance Plans that timeliness of PC reporting is significant for customers and

stakeholders. We will therefore keep this tem within the 'targeted risks' table for 2016/17 in order to seek consultation

during initial stakeholder engagement phase.

4Cost Allocation* – risk that costs are not

allocated accurately and clearly X X X X

Due to ongoing developments of reporting requirements and that any potential misallocation of costs would have

significant impact on information reported in general, our conclusion is to keep this as a risk in 2016/17.

5

Forecasting accuracy risk (new Ofwat

guideline to provide a forecast of the end

of AMP6 value and reward/ penalty for

each PC, as part of our Annual

Performance eport)

X X X X

We have noted during completion of our Assurance Plans that where the target measure is set for the end of the AMP

period (that is, 2020), it may not be possible to

assess the measure accurately and it may be out of context part way through the AMP. Given that we are currently in the

second year of the AMP period, we are not required to forecast the end of AMP6 value and reward/penalty for each PC

and therefore, do not consider forecasting accuracy risk to be of particular concern during 2016/17 however, we note

that this will gain prominence the closer we get to the end of AMP 6. We have therefore kept this item as a risk for

2016/17.

6

Risk that reporting is not accessible, clear,

transparent, timely and does not reflect

context X X X

During 2016/17 we have engaged with external experts to seek guidance on how to improve our reporting style and

embarked on digital re-platforming to improve our website. We have concluded that this item should remain as an

ongoing 'targeted risk' to ensure that we continually seek to improve our reporting and engage with our customers

frequently to check that we are meeting their needs.

7

Risk that performance reporting in relation

to new Water Resources and Bio Resources

is incomplete, inaccurate, unreliable and

not communicated in a transparent way.

X X X X

For 2016/17, new reporting requirements will be introduced for Water Resources and Bio Resources in anticipation of

these being new price controls in AMP7.

Due to the new reporting requirements we believe there is increased risk surrounding the following:

1) Heightened risk of misallocation of costs between price controls

2) Potential for misinterpretation of regulatory accounting guidelines

3) Comparison to the Final Determination (FD) will become more complex as it will require aggregation of information

where there are new price controls not in the FD.

This could make it more difficult to explain performance in the future.

Risk Category



Water Resources Management Plan 2019

If it is always raining in London, so why do we need a

desalination plant? Do we have the wrong kind of rain? Well,

yes. London is damp and dreary a lot of the year, but we get

less annual rainfall on average than Sydney and Barcelona.

20% of London's water supply is from ground water. The

remaining 80% comes from the Rivers Thames and Lee. The

water in our rivers also mostly comes from under the ground.

London's water supply depends on topping up ground water

every winter. If we have more than one dry winter, river flows

start to drop and we risk running out of water.

The 'desal' plant is a backup supply for drought. It provides

resilience to London's water supply system for when we have

a few dry winters in a row. When operating at full steam it can

supply 400,000 homes (900,000 people).

Priorities• Customer Service to Customer Engagement

• Digital Asset Management• 5 Dimensions of Insight

Happy Customer

John is unaware of anything out of the

ordinary…

Customer Service to Customer Engagement

Happy Customer

A smart meter detects increased water

consumption.

Or?


Happy Customer


Happy Customer

Dear John, we noticed

that water consumption

for the last 24 hours is

much higher than

average.

Are you aware of that

situation? “Yes” or “No”


Happy Customer

John -- Alert 1

Alert 2


Happy Customer

70% higher than the average

for the last month


Happy Customer

System already qualified the

case for potential malfunction

and sent SMS to the customer

twice in 2 hours.


Happy Customer

No Response


Happy Customer

On the screen agent sees John’s location and

availability of technical crews who can take this order.

She calls John and informs him about

potential problem and proposes that

somebody can come within 90-120

minutes. She informs John that this is paid

inspection (AED100), but daily cost of

additional energy consumption is AED 25.

John confirms the visit.


Happy Customer

Technician arrives and traces the source of

the high water consumption


Happy Customer

Technician sends the information to customer services agent confirming the problem.

Customer services agent recommends a Partner’s Service The agent sees available resources and agrees with John on

proposed date and time


Happy Customer

Proposes solutions which can

decrease water consumption and

water bills

Utility can sell as a bundle of repair

and warranty services

Water monitoring and management

means that John will no longer have

to worry about too high water bills.


43CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Asset Management: Connected Assets

Physical World

Asset

Digital World

Edge

Gateway

Condition monitoring

Asset history

Augmented reality

Digital Twin

Business Context

Maintenance

Management…

Performance

and Risk

Management

Claims

Management

Statistical and Machine

Learning modelsPhysics-based models

ERP

…

Manufacturing

PLM

Business

Partners

Design &

Simulation

Equipment details

BOM / 3D

Spare parts

Inventory

Serialization

Roles

Business partners

Contracts

Financials

Performance optimization

Risk reduction


Digital Twin Supports Complete Asset Lifecycle Management

Plan & Design

Procurement &

Manufacturing

Installation & Commissioning

Operation & Maintenance Disposal

Digital Twin 3D Models,

Drawings,

EBOM, P&ID,

As Designed

Spec Sheets,

Production

Quality Data,

MBOM, As Build

Installation and

Testing Specs,

As Installed

Shut Down

procedures,

Dismantling &

Disposal

Instructions

Maintenance,

Safety &

Emergency

Procedures, As

Maintained


Digital Asset Management Scope

Predictive

Engineering

Insights

Asset

Strategy and

Performance

Management

Predictive

Maintenance

and Service

IoT Foundation

SAP Leonardo

Digital Core

ERP

PdMS, add-on

for Utilities

Supplier &

Manufactur

er

Meter Sensor SCADA Data Historian

GIS

Geo

Enablement

Framework

Master Data

Governance for

EAM

Extended

Enterprise

Content

Management

Asset Core

Multi Resource Scheduling

Work Manager & Asset Manager

Asset

Intelligence

Network

Sensor

Data

Insight

ActivitiesCollaboration

Engineering Tools


Asset Management for water network operators

We think about the world in geospatial terms.

We assume network operators will have a

GIS deployed across most of their network.

Geospatial attributes are recorded with

the technical object master record in

SAP (usually Flocs, but can also be

Eqpts and Assys).

Ideally changes in SAP are

synchronized in GIS and vice versa.

Goal: Actionable

data presented in

a geospatial way

Geospatial information is an essential management decision making tool


Digital EAM: Business Network

Predictive

Engineering

Insights

Asset Strategy

and

Performance

Management

Predictive

Maintenance

and Service

IoT Foundation

SAP Leonardo

Digital Core

SAP ERP

PdMS, add-on

for Utilities

Supplier &

Manufacturer


GIS

SAP Geo

Enablement

Framework

SAP Master Data

Governance

EAM extension by

Utopia

SAP Extended

Enterprise Content

Management by

OpenText

Asset Core

SAP Multi Resource Scheduling

SAP Work Manager & SAP Asset Manager

Asset

Intelligence

Network

Collaborate with suppliers on

maintenance procedures and

strategies

Share asset documents, service

bulletins, sensor readings


Digital EAM: Business Network

Predictive

Engineering

Insights

Asset Strategy

and

Performance

Management

Predictive

Maintenance

and Service

IoT Foundation

SAP Leonardo

Digital Core

SAP ERP

PdMS, add-on

for Utilities

Supplier &

Manufacturer


GIS

SAP Geo

Enablement

Framework

SAP Master Data

Governance

EAM extension by

Utopia

SAP Extended

Enterprise Content

Management by

OpenText

Asset Core



Asset

Intelligence

Network

Identify critical assets and

define maintenance strategy

Risk assessment with a focus

on safety, finance, security of

supply


ASPM and Maintenance Strategy Development

Asset Criticality Assessment

Asset Management

Strategy

Asset Management Monitoring

Functional Analysis

Criticality Assessment

Criticality

Reliability Centered

Maintenance

Failure Modes and Effects

Analysis

Structured Review

Maintenance Strategy

Implement Strategy in SAP PM

Collect Work History

High Medium Low

Evaluate Strategy and Optimize


Digital EAM: Finite Element Analysis

Predictive

Engineering

Insights

Asset Strategy

and

Performance

Management

Predictive

Maintenance

and Service

SAP Leonardo IoT Foundation

SAP Leonardo

Digital Core

SAP ERP

PdMS, add-on

for Utilities

Supplier &

Manufacturer


GIS

SAP Geo

Enablement

Framework

SAP Master Data

Governance

EAM extension by

Utopia

SAP Extended

Enterprise Content

Management by

OpenText

Asset Core



Asset

Intelligence

Network

Calculate forces and stresses in

structures & simulate extended

operation scenarios

For example for wind turbines


Business DataSensor Data

SAP Data Hub on SAP Cloud Platform

Predictive Engineering Insights

Maintenance Execution Systems

Structural

Behavior

Fo

un

da

tio

nF

ea

ture

s

Vibrational

Diagnostics

Machine

LearningFedem

Simulatio

n

SAP PEI: Structural Behavior


Digital EAM: Predictive Maintenance

Predictive

Engineering

Insights

Asset Strategy

and

Performance

Management

Predictive

Maintenance

and Service

IoT Foundation

SAP Leonardo

Digital Core

SAP ERP

PdMS, add-on

for Utilities

Supplier &

Manufacturer


GIS

SAP Geo

Enablement

Framework

SAP Master Data

Governance

EAM extension by

Utopia

SAP Extended

Enterprise Content

Management by

OpenText

Asset Core



Asset

Intelligence

Network

Calculate asset health and

predict remaining life time

For example based on gas

concentrations in the transformer oil


SAP PdMS: Machine Learning Engine

Business DataMachine Data

Machine Learning Engine

Analysis Tools Catalog

SAP Predictive Maintenance and Service

Explorer Details

Logistics & Maintenance

Execution Systems

SAP Leonardo Foundation

SAP Leonardo for Edge Computing

Continuous Improvement & Learning

Failure

Prediction

Trigger prediction when

algorithm detects a

specific combination of

input variables

Anomaly Detection

Trigger anomaly alert

when the algorithm

detects an abnormal

pattern

New

Algorithms

Extensibility

Model

Management

Tools

Reinforcement*

Domain expert

feedback

*Roadmap Item


*Roadmap Item

Continuous Improvement & Learning

Failure

Prediction

Trigger prediction when

algorithm detects a

specific combination of

input variables

Anomaly Detection

Trigger anomaly alert

when the algorithm

detects an abnormal

pattern

New

Algorithms

Extensibility

Model

Management

Tools

Reinforcement*

Domain expert

feedback

• Supervised learning enables failure

predictions like Remaining Useful Life

• Finds contributing factors to failure events

• Unsupervised learning detects anomalies

• Enables Health Scores

• Expert feedback

• Models change as operational

environment changes

• Extensibility for out-of-the-box

algorithms

• Possibilities to deploy new

R based algorithms

*Roadmap Item

SAP PdMS: Machine Learning Engine

Remaining

Useful LifeAnomaly

ScoreHealth

Status

2530 days

Equipment

Operat-ional

Tactical

Strategic

Real-time event and performance monitoring for immediate equipment level supervisory decision making

SAP can compliment real-time supervisory decision making but is not a real-time control system

Equipment level sensing and reporting

Reporting and Analytics

Equip-ment

Operat-ional

Tactical

Strategic

Real-time event and performance monitoring of all network performance variables for operational decision making

SAP can compliment real-time supervisory decision making but is not a real-time control system

Operational level monitoring of network performance


Operational View: Thames Water

The AORTA (Asset Operations Real Time Analytics) project has allowed the utility provider to consolidate data feeds from a number of legacy control systems, including production planning, water in supply and event monitoring, into a single platform.

Wipro's AORTA solution uses OSISoft PI technology as this main platform, which it claims allows it to create this ‘single version of the truth’ and is scalable to store 20 years of operational data.

Computerworld UK spoke to Chris Featherstone, head of operational control and planning for Thames Water, who explained that the motivation behind the project was to upgrade legacy systems to improve customer care.

“As a control facility we have tried to adopt a model which allows us to bring into one building the majority of our control,planning and scheduling applications, along with our customer contact facility. This allows us to bring all the information we need to deal with ongoing service issues for our customers onto one floor area,” said Featherstone.

“The main drive was to ensure that we had clearly defined and joined up processes that allow us to drive a higher degree of customer service. It hasn’t been driven from a cost savings perspective, it’s been about trying to deliver the best possible customer service.”

From 2013: http://www.computerworlduk.com/it-vendors/thames-water-spends-4m-overhauling-control-centre-improve-analytics-3455584/


Operational level monitoring of network performance

http://www.computerworlduk.com/it-vendors/thames-water-spends-4m-overhauling-control-centre-improve-analytics-3455584/

Near real-time event and performance monitoring PLUS information about ongoing and scheduled and non-

scheduled operations, maintenance and project work.

Equip-ment

Operat-ional

Tactical

Strategic


Tactical level reporting and management of O&M activities

• Health status at a glance• Health status of the complete fleet• Aggregated from component health

scores• Based on out-of-the-box machine

learning• Derived signals management

• Personal and extensible• Flexibly composed by insight providers• Drill-down into one machine

• Integrated into operational processes• E.g. close-loop integration for services

via Multi-Resource Scheduling (MRS)

Asset health control center: Supervise machine health and act on issues


Tactical level reporting and management of O&M activities

Analytically derived and calculated asset health indices and risk scores PLUS financial information to support medium-

and long-term capital investment decision making

Equip-ment

Operat-ional

Tactical

Strateg-ic


Strategic level consolidation and analysis for business planning

Capital Investment Decision Making

Capital Investment Decision Making is concerned with understanding asset degradation and trading-off capital costs, maintenance costs, risks and their probabilities in order to optimise a capital investment decision, both in terms of timing and in terms of the choice of asset. In order to undertake this decision-making effectively, the costs and risks associated with an asset, and how these costs and risks change over time or with usage, need to be understood.

The diagram shows how costs and risks might change with time for any given asset or asset system.

Capital Investment Decision-Making involves both understanding these lifecycle costs and risks and also determining the best point at which to overhaul or renew the asset. Lifecycle cost analysis is typically used to determine the intervention(s) that represent the lowest lifecycle costs.

Capital Investment Decision-Making is an integral element of ISO 55000.

Source: The Institute of Asset Management, “Asset Management – An Anatomy”, Version 2, July 2014.



Thames Water annual performance report 2015/16

WB1: We did not meet our target for customers without water for more than 12 hours and therefore our asset health is assessed as marginal. A major factor in our failure was a large burst in Enfield affecting 6,090 properties. Due to the size of the broken main there was no alternative pipe available to supply our customers while repairs were carried out.

An additional burst at Flaxlands(Swindon) affecting 3,751 properties and one in Slough affecting 1,134 properties pushed us further from our target. To minimise the impact of significant bursts in the future we have taken steps to improve our network monitoring systems and response to emergencies.



Capital Investment Decision-Making Process is part of ISO55000

ISO 55000 Asset Management System Capital Investment Decision-Making Process



Conclusions

Conclusions

1. Drivers for digital transformation are as unique as every water company and the political and financial constraints of their jurisdiction.

2. A digital transformation is an enabler to a larger business transformation; ie. to achieve a step change in operational efficiency, revenue retention, customer service and/or capital efficiency.

3. Justifying digital investments vs. other water investments remains a challenge when money is tight. At a minimum, a basic level of digitalization to provide management with accurate information in order to make science-based investment decisions should not be avoided.

4. Digital transformations broadly combine one or more of the following:

a) Customer Service to Customer Engagement

b) Digital Asset Management

c) Reporting and Analytics

Digital transformation scope

Configurable analytics engine

Business rules framework and algorithms

OT data model IT data model

EAMTime-SeriesEvent Data

GISReal-time Systems

ERPOther

Asset DBsOutage

DataCIS

Rich visualization

Situational awareness

Core business domains coverage

Configurable SAP HANA with

predictive analytics capability

Assets Customer EnterpriseOperations

OEM Direct HANA© Adapters Accenture services for IT/OT integration

Tiered storage

capability

IT/OT integration

Ingest structured and unstructured

data

Conclusions

SAP’s Vision: Please come talk to us!

Brian Williams

ENR Industry Advisor

SAP EMEA South

Cell: +971 56 998 5031

Email: [email protected]

mailto:[email protected]

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