Informatique de Gestion GETI-2100
From the Business Model to the IT Architecture
Electricity Network Case 3 October 2002
@
@
Agenda
Objectives
Electricity Utility Context
Project Approach
Business Model
Process Model
Vendor Solutions
As-Is Application Architecture
To-Be Application Architecture
IT Migration plan
Example 1: Analyse and Manage Disturbances
Example 2: Metering
Objectives
Who are we?
Management consulting firm
48 Countries
Professionals
Why are we lecturing?
Academic knowledge + Business references = understanding
Get to know us – Demistify the consulting world
Challenge ideas
Objectives
Business Students and IT world
There is no Business without IT
Data is nothing, Information is everything
IT + People = Better business results
IT is not coding
Connections
Transformation Station
Wires/Cables
Pillars
Meters
The business domain of the client in this case is the distribution of gas, water and electricity
105
103
107
101
108
111
Zoom In
Distribution Network
Network Distribution Client
Electricity Utility Context
The European Parliament guidelines require the unbundling of the Distribution in a Supply and a Network organization. This will have a major impact on the organization, processes and IT Systems
Electricity Utility Context
Deregulation
Regulated Monopoly
Price control by regulator
Competitive market
Gradual liberalization of customers
Production 1
Transport
Network
Distribution
Network
Production 3
Integrated Utility monopoly
Unbundling of Distribution in Network & Supply:
Organization
Processes
IT Systems
Production 2
Supply 1
Supply 3
Supply 2
European directive
A preliminary assessment of the current IT systems concludes the following weaknesses:
The architecture is fragmented in a high number of applications and interfaces.
The same business functions are supported by different applications over the regions. (. Technical Databases)
No Business approach for the Network (Financial Performance is not linked with Technical Performance)
It contains several mainframe applications.
Several applications do not cover the new requirements of Unbundling. (eg. No Access & Transit application).
Several applications will have to be split due to Unbundling (eg. Customer database includes commercial and technical connection information)
Project Approach
Situation
The To Be Application Architecture needs to be defined and implemented, starting from the Business Model ...
Project Approach
Methodology
Business
Model
Process
Model
Vendors
Solutions
To-Be
Application
Architecture
As-Is
Application
Architecture
Migration
Plan
Based on International Best Practices
Generic set of new capabilities for future Business needs, processes, roles, Key Performance Indicators’s
Design specific processes according to local Market situation and specific business
Evaluate and pre-select relevant vendor Applications in line with the Process Model
Define detailed ideal To Be Application Architecture according to futues Business needs
Detailed inventory of current Application Architecture
Plan the implementation according to:
Time-to implement
Business Case
Constraints (resistance to change, burning platform…)
Availability of vendors applications
Execute Connections
Execute Network Works
Material Supply
Operations Management
Network
Access and Transit
Procurement & Methods
Invoicing & Collection
Network Planning
Studies
Metering
Supply
Sales/Customer Relationship Mgmt
Marketing
Invoicing & Collection
Call Center Platform
The Business Model anticipates the changing context and is based on capabilities to build for future business needs. The Business Model is the foundation of the future Application Architecture.
Key assumptions for the client:
- The two métiers will operate as separate companies. There will be two financial systems needed.
1. Business Model
Project Approach
According to the Business Model capabilities defined, we need to map the future activities and roles in the “To Be” process model.
Network Management
Network Planning
Determine network new extension plan
Determine network maintenance plan
Access and Transit
Studies
Design infrastructure
Prepare infrastructure work
Budget & plan infrastructure
Procurement & Methodes
Procure material and services
Implement methods and choose materials
Execute Network Works
Build extensions
Repair net element
Execute maintenance
Operations Management
Monitor net & Prevent disturbance
Analyse and manage disturbances
Execute switching
Material supply
Supply material
Supply services
Execute Connections
Execute standard connections
Execute non-standard connections
Remove connection disturbances
Metering
Install, remove, disconnect devices
Remove meter disturbances
Read and forward meter data
Invoicing and Collection
2. Process Model
1. Detail the To Be Process Model
Project Approach
Process: Invoicing & Collection
For each Business Model capability, we need to identify the To Be process model including all activities and the respective roles
Identify future application needs
Identify the current application support
2. Process Model
Project Approach
Process: Invoicing & Collection
3. Vendor Solutions
Enterprise Management
Customer Relationship Management
Transmission & Distribution
Installation Services
Energy Service
Energy Trading
Revenue Management
Business Support
Pool/ISO
Strategic Enterprise Management
Business Intelligence & Data Warehousing
Managerial Accounting
Financial Accounting
Regulatory Reporting/FERC
Customer Service
Market Research & Analysis
Product/Brand Marketing
Marketing Program Management
Sales Management
Sales Channels
Generation
Engineering & Construction
Production
Plant Maintenance
Decommissioning
Engineering & Construction
Operations Management
Maintenance & Work Management
Transmission & Distribution Service
Sales Cycle & Billing
Connection & Installation Management
Service Management
Meter Reading Management
Sales Cycle
Service Agreement
Special Customer Processes
Retail Billing
Energy Data Management
Traders Workbench
Risk Management
Wholesale Billing
Reconciliation & Settlement
Invoicing
Receivables Management
Third Party Settlement
Human Resource Management
Procurement
Treasury
Fixed Asset Management
Real Estate
Make or buy?
Project Approach
CRM
SAP R/3
Regional
PS
SD
MM
WM
FI
CO
AA
ISU
FERC
Orbit
Supply/ Network Environment
Internet Application
Sales and Marketing
Application
Call Center
Voice Response Unit
Documents
Archiving
SAP R/3
incl. CCS
HR
WF
PM
SD
MM
ISU
EDM
ISU
CCS
FI
CM
CO
Warehouse
SAP R/3
MM
WM
FI
CO
Tele-reading
SAP R/3
BW
Works
Geo
map
Net
calcul
Repair
reports
Technical
databases
HT
meters
Network planning
SCADA
Risk
Mgmt
Business Information Warehouse
Indexphone
Injection
points
Billing
Resident.
LT
meters
Controle -
Metrol
Isadres
Works
Mgmt
Key
cust.
billing
Billing
Ind.
Automatic interface
Manual interface
Billing
Resid.
Large
wrorks
Patrimony
CAD
HT
Meters
Geo-
Synergie
Data
Mining
Measurement
on the net
Triangle
4. As Is Application Architecture
Project Approach
The IT strategy of the client provides the following Application Architecture guidelines:
Use always SAP where this ERP (Enterprise Resource Planning) package offers the adequate solution (in order to minimize integration/interfacing effort)
Evaluate the use of other packages only for functionalities that are not offered / not sufficiently covered by SAP
Aim for a maximal simplification and integration of applications (unless not allowed because of regulations)
[aim for integrated applications and shared use of applications to limit the number of applications and the integration problem]
Replace mainframe applications
5. To-Be Application Architecture
Project Approach
Based on these results, we needed to define the To Be Application Architecture
Network Environment
Internet Application
Workforce
Management
SAP R/3
MM
WM
FI
CO
Archiving
Outage
Management
GIS
mobile
meter reading
Tele-reading
SAP R/3
BW
Asset Management
System
Business Information Warehouse
Indexphone
CAD
CRM
SAP R/3
incl. CCS
HR
WF
PS
PM
SD
MM
WM
ISU
EDM
ISU
CCS
FI
CO
AA
ISU
FERC
SEM
CRM
Warehouse
Measurement
on the net
Supply environment
Sales and Marketing
Application
Billing simulation
Call Center
Voice Response Unit
IXOS
Bills
Printing
SAP R/3
incl. CCS
HR
WF
PM
SD
MM
ISU
EDM
ISU
CCS
FI
CM
CO
Internet Application
SAP R/3
BW
Business Information Warehouse
5. To-Be Application Architecture
Project Approach
The To Be Application Architecture will be implemented in several releases
Identify the project implications
end 2001
end 2002
end 2003
end 200X
One Environment
FI
AA
CO
MM
U
BW
UniP
HR
...
CO
AA
FI
SD
MM
PS
FERC
WM
PM
UniVlam/Wall/Centr
ISU
EDM
CCS
HR
B2C
CRM
SAP R
FI
CO
MM
EDM
RTP
AA
HR
Net Environment
FI
AA
CO
MM
Un
BW
Supply Environment
...
(1)
Corporate Level
KW
CO
AA
FI
SD
MM
PS
FERC
WM
PM
UniVlam/Wall/Centr
ISU
EDM
CCS
HR
CRM
B2C
CRM
CCS
CO-PA
IDE
SAP R
FI
CO
MM
EDM
RTP
AA
HR
B2C
*
One Environment
FI
AA
CO
MM
U
BW
UniP
HR
...
CO
AA
FI
SD
MM
PS
FERC
WM
PM
UniVlam/Wall/Centr
ISU
EDM
CCS
HR
SAP R
FI
CO
MM
EDM
RTP
AA
HR
One Environment
FI
AA
CO
MM
U
BW
UniP
HR
...
CO
AA
FI
SD
MM
PS
FERC
WM
PM
UniVlam/Wall/Centr
ISU
EDM
CCS
HR
SAP R
FI
CO
MM
EDM
RTP
AA
HR
6. Migration Plan
Define milestones for intermediate architectures
Derive the migraton path
Project Approach
Domain
2002
2003
2004
2005
Affected Applications
Asset Management
Geographical Information Systems
Outage Management
Workforce Management
Logistics/Financials
Document Mgmt
Metering
Technical databases
Geomap, Geosynergies
Works, large works
Repair reports, technical databases
FI, CO, AA, IS-U FERC, PM, PS, MM, SD
CCS, IS-U EDM
Triangle
Small Works Implementation
Implementation Phase 1
Implementation Phase 1
Merging Regional ERP?
Finally, to realise the Business Model, the Application architecture projects have been planned and will be realized by the end of 2004
Meter Reading, Device Mgmt, Energy Data Mgmt
Implementation
Phase 2
Implementation Phase 2
Maintenance Implementation
Implementation
Trouble Ticketing, Quality of Supply
6. Migration Plan
Project Approach
Example 1:
Analyse and manage disturbances
Business Model
Example 1: Analyse and manage disturbances
Example: The process ANALYSE AND MANAGE DISTURBANCES
Process Model
Example 1: Analyse and manage disturbances
What are the main steps for analysing and managing disturbances?
Customer informs of Disturbance
Network monitors disturbance
Disturbance is notified by Call Center or Operations Management
Check for completeliness of notification
Determine if individual failure
Determine type of customer
Determine urgency
Determine impact of failure
Estimate removal time
Create intervention request according to type of failure (connection, network, meter…)
Close trouble ticket
Process Model
Example 1: Analyse and manage disturbances
Customer invoicing information
Example 1: Analyse and manage disturbances
Individual
failure?
Determine type
and extent of
disturbance
Accepted?
YES
Trouble ticket
NO
NO
Trouble ticket
Disturbance
notification
Receive
Trouble
ticket
As Is Applications
The only existing current application is a customer invoicing system that will be replaced in the future
Individual
failure?
Determine type
and extent of
disturbance
Accepted?
YES
Trouble ticket
NO
NO
Trouble ticket
Disturbance
notification
Receive
Example 1: Analyse and manage disturbances
Trouble
ticket
A future Trouble Ticketing Application will have to manage information from various sources
Call center
Customer info
Network status
Monitoring
Geographic
Information
Systems
Work
Management
…
Process Model
Example of Trouble Ticketing System
To Be Applications
The To be application Architecture will be based on a tailor made application, as no standard packages can integrate so many specific requirements
Example 1: Analyse and manage disturbances
Example 2:
Metering process
Example 2: Metering
Business Model
Example: The process READ AND FORWARD METER DATA
Example 2: Read and forward meter data
1. Establish list of meter to be read
2. V….
3. R…
4. V…
5. A…
6. B…
The exceptions must be handled too
What are the steps in the manual meter reading process?
Process Model
Example 2: Read and forward meter data
Process Model
Validate
(Technically)
Cluster Metering
data (including
MR method) per
supply
Invoice and
collect for
energy and
services
Invoice
Transit services
Aggregate
Metering Data
Customer Invoicing system
GAPS
As Is Application
Example 2: Read and forward meter data
Metering
Data
Repository
WEB INTERF.
e-Billing
Acquisition AMR
Acquisition HR
Validate
(Technically)
Cluster Metering
data (including
MR method) per
supply
Invoice and
collect for
energy and
services
Invoice
Transit services
Aggregate
Metering Data
Billing
Engine
Paper
Billing
To Be Application
Example 2: Read and forward meter data
Talk about Accenture’s KX
Vizualize the different elements of a Network Distribution Client
Utility is broader, including Production & Transport
VDD: décomposition des processus
1er contact client
Before we start a project, we often do some interviews on the current situation with key people in the company.
This gives us some hints about the culture of the company and the potential areas for improvement
VDD: pourquoi le client est-il insatisfait du système actuel, last point is a future need (besoin)
How to do this: workshop with potential new nominated top management
Takes at least a couple of month, why?
Data gathering period (process model,
Lots of people involved to detail the models
Several workshops to detail & validate the concept (each 2 weeks)
Test the concept with people at a lower level in the company
…
VDD: buy or make ( = peut-être une question d’examen)
Determine which Capability in which organization
Capability >< organogram (. sales & marketing)
Each METIER/CAPABILITY of the Business Model is detailed in a detailed Process Model, strategic drivers, KPI’s, Options taken… (example shown later)
Detail Capability in :
Key roles, activities & information flow
Process model=diagramme des flux
Nouvelle activité au centre d’un réseau d’information:
Centrelize information; Metering = read data
Supply=customer invoicing adress
Software vendors build specific industry solutions based
Logistics: preliminary planning as final decision is still to take based on business case
Asset Mgmt: strategic for ROI optimization
GIS: Needed system for Asset Mgmt, major investment, weak business case. Implement ASAP before regulator reduces the margins
Outage Mgmt: strategic for customer service
Metering: Strategic, but as regulation is not yet clear delay one year
Workforce Management: not strategic, but big business case as prices and outsourcing is high
Document Management: nice to have. As project resources are low, delay 2 years
New capabilities of the Business Model have to be implemented
New capabilities of the Business Model have to be implemented
The complete Process model including activities and roles looks as follows
Management of the Trouble Ticket with multiple sources and replacement of old systems like Clifax that provide customer information
Customer Visit
Meter Reading
Data Validation
Data Aggregation
Billing
Exceptions: What happens when the customer is not home?
What do we do in case of fraud?
