Roadmap for Next Generation Utilities
Nitin Joshi
Pre-Sales Manager (North & East) SAP India
SAP Overview Changing Energy Markets SAP for Utilities - “Why SAP… ?”
SAP Overview Changing Energy Markets SAP for Utilities - “Why SAP… ?”
Global Leader in Business Software Solutions
33+ years of success
Unparalleled global spread with 60,000+ installations in 120+ countries 23,600+ companies run SAP – the largest installed base in the enterprise software sector Strategic vertical solutions for 29 industries
The most complete business software suite
Strong focus on R&D with 10,000+ developers – a bigger investment than any other business software vendor
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP in India
SAP Labs – R&D Center at Bangalore
Over 50% of the SMB Marketshar e
India SAP user Forum Indus Customer Care Center at Bangalore
Mature India Localization & India Payroll
Established in 1996
850+ Customers In India
3000+ Employees & Growing
Large & Leveragable Skill Base
Knowledg e Services
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP for Utilities
Focus: End to End processes Customer-centric & Asset-centric
SAP
offers an end-to-end solution from ERP via CRM and Billing/Contract Accounting to internet solutions for utilities very high scalability
SAP´s
utilities solution covers processes for generation, transmission, distribution and sales of all types of energy, water, waste and additional services
Dedicated Development and Support Team
Industry
Business Unit (IBU) Utilities with experienced industry
experts
For all company roles (incumbent utility, energy supplier, transmission company, distribution company, meter operator, generation company, wholesaler, and so on)
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP for Utilities
Implemented by approx. 980 utility companies
In 70 countries, 26 languages 21 of the 25 largest international energy groups
Over 200 midsize utility companies (<€150 million ) Managing and billing of approx. 420 million utility contracts .. and industry segments (electricity, gas, water/waste water, ..)
With the highest market share in deregulated markets
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
META Spectrum Rankings 2003/2004
Utility Customer Information Systems Energy Utility Work Management Systems
(preliminairy version: not mentioned for release)
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP for Utilities Customers – Limited Sample
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP Overview Changing Energy Markets SAP for Utilities - “Why SAP… ?”
Current global Utilities Trends
European Union: Deregulation; Lead in Utility and IT technology
East Europe: Catching up with EU industry standards, preparation for EU deregulation
US: Slow economy, deregulation on hold, efficiency improvements, cost savings; applying new technology as far as this is improving efficiency and lowering costs
Latin America: still recovering from business depression and energy crisis; like US on a lower level
Japan: preparation for deregulation, trend to apply Standard Software Asia: General trend to increase automation of business processes, huge market, constrained on IT investment budgets
Middle East: starting to look for Standard Software for kernel utility processes
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
The 2 Utility Value Chains
The Asset Value Chain
enables utilities to engineer, construct, run and maintain power plants, networks and connections to premises in order generate, transmit and distribute energy or water
The Utilities Value Chain
Deregulation
The Energy Value Chain
includes all commercial, administrative and communicative processes that enable utilities to deliver energy to the consumer
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
CHALLENGES TO CHANGE CHANGE IS DIFFICULT
“What are the biggest stumbling blocks of change?”
Corporate culture Underlying IT systems
Org structure
56%
42%
42%
Business process
33%
Source: GartnerG2/Forbes.com Enlightened IT Use Survey, August 2003
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
TODAY’S IT IS NOT BUILT FOR CHANGE
A VICIOUS CYCLE?
CEO sets strategy Strategy for GROWTH
Prohibitive cost and time of IT changes
IT not aligned with the business
Business change
Quick fixes result in more future risk/cost
Companies move away from buy model into build model
Rs.
Ability to EXECUTE
Existing IT landscape enables work
>80% of IT budget spent on status quo
TCO pressures continue to rise
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP Overview Changing Energy Markets SAP for Utilities - “Why SAP… ?”
Building Blocks of SAP for Utilities
Enterprise Asset Management
Customer Relationship Management & Billing
Energy Capital Management
Enterprise Resource Planning (ERP)
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Solution Map Utilities
Suppliers & Partners Generation Transmission & Distribution Meter Operation Retail & Services Customers & Channels
Asset Lifecycle Management
Supply Operations
Meter Reading Services
Energy Capital Management
Selling of Energy & Services
Customer Service Management
Billing of Energy & Services
Customer Financial Management Collaborative Services & Intercompany Data Exchange
Enterprise Management & Support
Analytics
Strategic Enterprise Management
Financial Accounting
Financial Analytics
Operations Analytics
Workforce Analytics
Talent Management
Travel Management Life-Cycle Data Management
Financials Financial Supply Chain Management Accounting Corporate Governance Management Human Capital Management Workforce Prozess HCM Service Delivery Workforce Deployment Management Corporate Services Incentive & Commission Environment, Health & Safety Real Estate Management Management Operations Support Program & Project Quality Management Indirect Procurement Global Trade Services Management
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Asset and Work Management
Use mySAP Utilities Asset & Work management to manage all assets from entire plants down to metering devices
gain anytime easily full cost control handle the entire asset life cycle from purchasing and installation over maintenance and customer service to refurbishment and replacement
insure safe maintenance of security critical facilities offer attractive and reliable customer services
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Customer Relationship Management
Business analytics to identify opportunities and risks Multi-channel marketing to gain market share Customer centric call center to optimize sales & service
mySAP CRM
Business Warehouse
Customer Relationship Management for Utilities
Marketing - Sales - Service
Internet Sales to reduce sales and service cost Mobile solutions to improve customer relationships
Tools to measure and maintain profitable customers
Middleware is part of the product ! Industry Solution - Utilities Customer Care Services
Energy Data Management Billing & Invoicing Contract Accounting Inter Company Data Exchange Service Management IS-U/CCS
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Energy Billing and Collection
Scalable high performance billing solution
Flexible and easily adaptable tariffs
Joint invoicing capabilities Third party billing and settlement Multiple payment methods Flexible credit management
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Energy Data Management
Intelligent deployment of interval data
Powerful complex billing engine Highly flexible and adoptable reconciliation and settlement solution
Fully automized intercompany data exchange
Spot Price
Fixed Price
Priced separately
Minimum Price
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Business Intelligence
Data Warehousing
Analytics and Measurement Worldwide Access via the Web
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
SAP´s Blueprint for Sustainable Success
Enterprise Services Architecture is a Web services based architecture for adaptive business solutions
Business solution offering: 29 industries
my SAP Business Suite
SAP NetWeaver Adaptive Computing Infrastructure
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
What does it mean to you ….
Suppliers & Partners Generation Transmission & Distribution Meter Operation Retail & Services
Processes for construction and Plant Engineering and Construction Plant Maintenance and Operations operationDecommissioning of power plants
Asset Lifecycle & Resource Management
Customers & Channels
Processes for construction and operation Grid Engineering and Construction Grid Maintenance and Operation of transmission & Management distribution grids Connections
Supply Operations Workforce Management Processes for sourcing of material, spare parts, services andProcurement and Service of Spare Parts human workforce Inventory Management Meter Operations Meter (Reading) Consumption Data Collection Management Meter & device Management Energy Capital Management Processes for collection, analysis, aggregation, and combination of energy data Energy Data Management and the decision support processes,Ledger / Portfolio Management processes, and energy trading energy sales Energy processes based on this data Energy Trading Resource Management
Customer-oriented processes for the Campaign Management IC Marketing marketing and sale Residential Customers products of energy Sales Management for Sales Management for Commercial and Industrial Customers and water, as well as customer services Account and Contact Management relating toSales Planning andactivities Integrated these Analysis
Selling of Energy & Services Customer Service Management
Service Order Management with ERP Billing Customer-oriented service processes Customer Service Processes Service Contract and Entitlement Management relating to the fulfillment of terms Complaints and Returns Management of supplyCustomer Services Electronic contracts
Account and Contact Management
Billing of Energy & Services
Processes for billing and invoicing supply Billing for Commercial and Industrial Customers Billing of Unmetered Services contracts for energyofproducts and water Billing Services
Billing for Residential Customers
Processes for credit & collections Receivables and Collections Management Reconciliation and and contract accountClosing management Auditing
Customer Financial Management
Processes for adherence to Supplier Switch energy-related laws and industryReconciliation and Settlement binding regulations in the deregulated energy market Payment Processing
Collaborative Services & Intercompany Data Exchange
Enterprise Management & Support
SAP AG 2004, Evolution of SAP for Utilities / Nitin Joshi
Thank you for your attention…