© 2008 eventure events. all rights reserved. process standardization to support growth targets...
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© 2008 Eventure Events. All rights reserved.
Process Standardization to Support Growth Targets
Roehl NavarroGlobal Director, GRC
AES Corporation
Jimmy Lewis AES Global Account Manager
SAP Utilities
Executive Summary
• 123 Generation plants in 29 countries, 43,000+ MW
• 7 integrated utility companies in Brazil, Argentina, Ukraine, EL Salvador, USA, Kazakhstan, Chile- Over 14M Customers
• Emerging Leadership in Alternative Energies
• Our mission is to produce CLEAN SUSTAINABLE ELECTRICITY
1. The various markets we operate in have different regulations
2. Our diverse operating environments dictate the need for a federated IT infrastructure that supports local operating requirements while promoting standardization and global KPI monitoring to whatever extent possible
The big challenge to execute is determining what can be standardized and what must remain localized.
• Even Localized Infrastructures can participate in the global view. A perfect example is our CIS environment in Brazil, with ~5.5 M customers. Our infrastructure must obviously address local regulations, be highly scalable, and integrate with our corporate financial system. SAP CCS for Brazil was the only choice.
Federated IT Governance
Structure and Management
Federated IT Governance
Structure and Management
Global Support of Local DeploymentsGlobal Support of
Local Deployments
Enablement of our Business.
Enablement of our Business.
Value RealizationValue Realization
Ukraine
Brazil
Spain
Chile
United States
El Salvador
TurkeyBulgaria
Jordan
Argentina
SAP has been deployed within AES to 10* countries so far, supporting over 8 million + contracts world-wide so far
* Brazil implemented SAP ERP before the start of the genesis program. In February 2008, there were 4,000 active users. The SAP Customer Care & Service (CCS) module was also implemented in Brazil and supports 5M customers. ** Ukraine has also implemented the CCS module and now supports 1.3M customers.
Deployments to this point have provided substantial control coverage (~50% of Assets, ~60% of Revenue and ~67% of Income from Continuing Operations)
Deployments to this point have provided substantial control coverage (~50% of Assets, ~60% of Revenue and ~67% of Income from Continuing Operations)
Country Business Locations Users Go-Live
Date
Argentina Alicura 5 300 10/01/08
Jordan Jordan PSC 1 30 05/12/08
Bulgaria Maritza East 2 60 05/12/08
Turkey AES Turkey 1 50 05/12/08
United States Corp Treasury
1 100 1/01/08
Spain Cartagena 1 60 8/01/07
El Salvador Caess-BS Clesa
1 500 7/01/07
Ukraine Kievoblenergo/
Rivnoenergo / Energoline
3 1,500 4/1/07
Chile / Argentina
Gener 16 560 1/1/07
Brazil Electropaulo / Sul / Tiete
3 4,000 1/22/08
Total Countries: 10
34 7,160 users
Who we are in Latin America
26 Countries
30,000 Collaborators
The largest energy distributor in Latin AmericaThe largest energy distributor in Latin America
5.5 million consumer units5.5 million consumer units
16.5 Million inhabitants16.5 Million inhabitants
~36% of AES global revenue~36% of AES global revenue
~$6B annual revenue~$6B annual revenue
4,000 Users4,000 Users
The largest energy distributor in Latin AmericaThe largest energy distributor in Latin America
5.5 million consumer units5.5 million consumer units
16.5 Million inhabitants16.5 Million inhabitants
~36% of AES global revenue~36% of AES global revenue
~$6B annual revenue~$6B annual revenue
4,000 Users4,000 Users
IntroductionGenesis Initiative
Implement a common business model for AES
Define and implement standardized and harmonized business processes in the countries AES has Generation and Distribution Companies
Standardize and harmonize master data such as material master, customer and supplier data
Implement a global template reflecting the AES standards as much as possible
Rollout the template into the countries defined in scope
Key Goals of the whole InitiativeKey Goals of the whole Initiative
Drive quality financial information
Create repeatable roll-in model
Improve productivity at businesses
Became a Learning Organization
Manage total cost of IT ownership
Improve & reduce cost of compliance
Business DriversBusiness Drivers
Reduce operating cost
Improve productivity and performance
Achieve additional capability around financial reporting
Improve overall quality of information
Improve standardization
AES ObjectivesAES Objectives
In 2004 AES decided to adopt SAP as our main platform for our Global Operations. Phased deployment plan. We are implementing project after project AES globally is ~130 operating companies. Brazil’s CIS needs and Corporate Financial were very high priority
In 2004 AES decided to adopt SAP as our main platform for our Global Operations. Phased deployment plan. We are implementing project after project AES globally is ~130 operating companies. Brazil’s CIS needs and Corporate Financial were very high priority
• Implementation of commercial management systems for high, medium and low voltage clients, based on SAP, CCS 4.7.2, CRM 4.0, BI 3.5 Solution for the Utilities industry, replacing the current commercial systems, mainly Pegasus (AT/MT) and Sicon (BT)
• Implementation of commercial management systems for high, medium and low voltage clients, based on SAP, CCS 4.7.2, CRM 4.0, BI 3.5 Solution for the Utilities industry, replacing the current commercial systems, mainly Pegasus (AT/MT) and Sicon (BT)
Five billing systems
Difficulty in the collection management
Not consistent management information
Difficulty in the accounting closing process
Lack of continuity of the billing system for High and Medium voltage clients
Programs at their technical maintenance limit
High maintenance costs
Operations focused on processes and not on integrated systems
Drivers
© SAP 2008 / Page 3
CCS Implementation for AES EletropauloOverview
• SAP CRM, IS-U CCS, XI and BW systems implemented;
• More than 100 FTE's, involving resources from System Integrator, Delivery Center, SAP AG, Third Parties, AES Eletropaulo and AES Corporate;
• More than 120 business processes in place;
• Batch Chain invoicing daily about 300,000 contracts
• More than 3,500 people trained
• 10 months of training sessions in Low Voltage processes
• Innovative SAP landscape: multiple applications and DB servers using Oracle RAC and 10g database, ensuring a high availability environment
• SAP CRM, IS-U CCS, XI and BW systems implemented;
• More than 100 FTE's, involving resources from System Integrator, Delivery Center, SAP AG, Third Parties, AES Eletropaulo and AES Corporate;
• More than 120 business processes in place;
• Batch Chain invoicing daily about 300,000 contracts
• More than 3,500 people trained
• 10 months of training sessions in Low Voltage processes
• Innovative SAP landscape: multiple applications and DB servers using Oracle RAC and 10g database, ensuring a high availability environment
Other important aspects of this implementationOther important aspects of this implementation
CCS Implementation for AES EletropauloOverview
• Hot site with on-line data replication (US and in UK) – in order to guarantee AES business continuity
• Biggest data migration already in production in Brazil, with more than 5.5M Business Partners; replacing around 10 legacy systems
• Integration services using SAP-XI
• Internet Solution – integration with SAP via NetWeaver
• Call center solution using IVR/CTI, integrated with SAP-CRM
• Select Target solution for Loss Prevention processes, integrated on-line with CCS and BW
• More than 90 BW reports available via web
• Hot site with on-line data replication (US and in UK) – in order to guarantee AES business continuity
• Biggest data migration already in production in Brazil, with more than 5.5M Business Partners; replacing around 10 legacy systems
• Integration services using SAP-XI
• Internet Solution – integration with SAP via NetWeaver
• Call center solution using IVR/CTI, integrated with SAP-CRM
• Select Target solution for Loss Prevention processes, integrated on-line with CCS and BW
• More than 90 BW reports available via web
LossRecovery
SAT-S
SAT-R
ATENDE
OUVIDORIA
SGO
PSE
PEGASUS
SICON-B
SIGEN
CODENRECIBO
FATURA
AUTOFAT
NEGOCIAÇÃO
SICON-F
SAF
SGFA
INSP
ATENDE CI
QUALPROX
SAT CELULAR
CENTRAL DE
CALCULO
CONTACT
CENTER
SCE
SIC / RIC / DW
28 Systems
ATENDE.COM
TELA FÁCIL
MainFrame
Previous Situation in AES Brazil CIS Arena
CollectionBillingReadingSalesRelationship
Present Situation
Integration, simplification and sustainability.
• SAP pre analysis
– Data model
– Capability with SAP
• Organization redness
– Executives
– End users
• Budget estimation
Timeline Strategy
• Construct + tests
• Unit + integration
• Business involvement
Evaluation Model Solution Parallel Tests
Blueprint
Kick off
Checkpoint
design
Weekly milestones monitoring
Cutover
Simulation
Technical
go live
Public go live
Billing 1,5%
Migration99%
Pre-Analysis
• SAP pre analysis
– Data model
– Capability with SAP
• Organization redness
– Executives
– End users
• Budget estimation
• Construct + tests
• Unit + integration
• Public Go Live - Synchronize go lives with social windows = Window of opportunity
Year end or carnival
Use holidays (stop of operations)
• Respect SOX requirements
• Public Go Live - Synchronize go lives with social windows = Window of opportunity
Year end or carnival
Use holidays (stop of operations)
• Respect SOX requirements
There are Never Too many TestsThe methodology used in Genesis project includes a battery of tests to guarantee the quality and the integrity of solution.
In Genesis project the main testing phases were:
Unit testsUnit tests test the business transactions unitarily
Integrated tests
Integrated tests
test the business process and its integration. In Genesis more than 120 processes were defined and tested
Parallel testsParallel tests test to validate the revenue cycle and compare the results between the new
and the legacy systems – for the 2nd go live, it was executed two cycles of this test, with the scope of 1 week of billing cycle (representative sample)
User Acceptance
User Acceptance
consists on testing the designed processes, using migrated data, and obtaining the acceptance of the process owners. The process and variants executed during Solution User Acceptance phase were defined and validated with Business Owners.
Testing Streams
Stress Tests Stress Tests Data Migration CyclesData Migration Cycles Cutover simulation Cutover simulation
Consists on performing the tests to
ensure that business processes
run with adequate time,
considering the on-line and batch
scenarios, including all the SAP
systems (CCS, CRM BW, XI). AES
Eletropaulo’s scope includes to
invoice daily around 300.000
contracts and to load these
invoices information to BW system.
ETL (extraction, transformation and load) process. In general, the major part of the data is migrated using a specific IS-U CCS tool (IS-U Migration Workbench). In total, AES Eletropaulo’s migration included more than 5.5M of Business Partners; replacing around 10 legacy systems. The data cleansing project was segmented in the following topics to better produce results:
Addresses
Customer data
Receivables
Equipment data
Fraud data
The activities of the cutover period were simulated, in terms of data extraction, loading in CCS, loading in BW, replication to CRM, processes recovering, interfaces activation, etc. 1st go live: the cutover period
was one extended weekend. 2nd go live: 2 weeks of cutover
period, where the downtime of SAP (already in place) was 1 week and the downtime of the LV legacy system was 2 weeks. Around 200k services had to be recovered after the go-live, major part in the end of the cutover period, due to downtime issue. A specific tool was designed and implemented by the project specifically to cover this subject during the cutover period
Communications Strategy
© SAP 2008 / Page 13
Involve everyone and tell everyone. Don’t make the new billing system a surprise to your customers!
When implementing a CCS to cover 5.5M customers, a well organized War Room is essential.
Bu
sin
ess
War Room Coordination
Business Areas Support
Delivery
Center
Incidents Resolution
Operation
Infrastructure
Transition Coordination
Pro
ject
Steering Committee
War Room Objectives
• Coordinate actions during transition period (Cut-Over).
• Initiate the business operation stabilization.
• Control and monitor the execution of the operational and commercial processes:
— Meter Reading/Invoicing
— Collection
— Attending
— Service Orders
Set of business and project people with specific roles forSet of business and project people with specific roles for
Operating 24x7 and located in a same physical place
© SAP 2008 / Page 15
• Identify the source of the problems (in the business operation or in the system). Coordinate actions.
• Integrated understanding about the transformation progress
• Communicate unique and trustable information to the company
War RoomCoordination
• Takes the necessary business decisions during the transition period (Cut-over)
• Takes the basic operative decisions to stabilize the business after Go Live
• Prioritizes problems resolution
• Coordinates and decides the contingency actions
• Decides the Roll back point
• Coordinator: Business Area Represent on Executive Level
• Takes the necessary business decisions during the transition period (Cut-over)
• Takes the basic operative decisions to stabilize the business after Go Live
• Prioritizes problems resolution
• Coordinates and decides the contingency actions
• Decides the Roll back point
• Coordinator: Business Area Represent on Executive Level
War Room Coordinator
ReceivablesStabilization
AttendingStabilization
Service OrdersStabilization
FinancialStabilization
SolutionStabilization
InfrastructureStabilization
AES & SAP
SAP is a dedicated member of our leadership team, not just a vendorSAP is a dedicated member of our leadership team, not just a vendor
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