replacement of legacy cis with sap cr&b at phi
TRANSCRIPT
Replacement of a Legacy CIS (Customer
Information System) with SAP CR&B
SAP for Utilities Conference – 2013
Presented by: Thomas J. Pierpoint, Director, Business Applications
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Topics
About Pepco Holdings, Inc.
A moment of recognition
Background of customer information systems at PHI
Decision options around the going-forward path
Process used to make the decisions
Overall timeline of key activities
Moving forward on our SolutionOne project
Q&A
3
About Pepco Holdings, Inc.
Approximately 2 million customer
accounts in Delaware, the District of
Columbia, Maryland and New Jersey
Total population served is 5.6 million
Three T&D operating companies provide
regulated electricity service
• Atlantic City Electric,
• Delmarva Power (gas & electric)
• Pepco (including one of the top four
largest underground systems in the
country)
Pepco Energy Service provides energy
efficiency and renewable energy services
Photo by Rick Giammaria, Staff Photographer, PHI
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Pepco Holdings, Inc. Quick Facts
Incorporated in 2002
Service territory:
8,340 square miles
Customers served
• Atlantic City Electric:
– 545,000 – electric
• Delmarva Power:
– 503,000 – electric
– 125,000 – natural gas
• Pepco:
– 793,000 – electric
Total population served:
5.6 million
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At PHI, each day we…
Handle 13,000 customer phone calls
Respond to and restore 144 electrical outages
Read 60,000 meters and send out the same number of accurate bills
Connect 46 additional customers (17,000 per year)
Reconnect and/or disconnect 455 customers
Replace 16 poles (nearly 6,000 per year)
Deliver 135 million kWh of electricity
Deliver 64,000 Mcf gas to 118,000 gas customers
Incur $1.4 million in construction costs
Maintain 3,500 miles of transmission lines and 30,000 miles of
distribution lines
Maintain 530 substations and 400,000 distribution transformers
6 Work Management Workshop July 28 2009
The vast networks of electrification have had the
biggest impact on the quality of life and represents the
greatest engineering achievement of the 20th century Astronaut Neil Armstrong on behalf of the
National Academy of Engineering
The interconnected electric grid in North America is
the most complex machine ever invented Special panel of Leaders
from over 200 organizations convened by the
Electrical Power Research Institute
Electrification powers almost every pursuit and
enterprise in modern society National Academy of Engineering
A moment of recognition
Thank you to all that serve this critical industry!
Photo courtesy of EPRI
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Current Systems Landscape*
SAP ECC
CO – Controlling (CCA/IO)
FI – Finance (GL/AP/AR/T&E)
AM – Asset Management
PS – Project System
MM – Materials Management (PUR/IM)
PM – Plant Maintenance
CS – Customer Service
SD – Sales & Distribution
HR – Human Resources (PA/PD/OM)
PY - Payroll
FERC
CATS
FSCM – Dispute & Collections
GRC – Compliance Calibrator
Dolphin PTS
UFA – Utility Financial Accelerator
PPM – Portfolio & Project Management
* This info is intended only for high-level discussion purposes at the SAP Utilities
Conference and is greatly simplified with most systems and details removed
Customer Mobile & Web
Legacy Customer
Information Systems
Other Systems
Business Warehouse
Enterprise Portal
SAP - BPC
SAP GUI
Solution Manager
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Background of the customer information systems at PHI
There are three T&D utility operating companies at PHI and two CIS systems
C3 for Atlantic City Electric and Delmarva Power
CIS for Pepco
These systems provide numerous benefits through the automation of many customer service activities such as billing, call center, and the movement of work tickets to field groups.
Both systems are largely based upon technologies implemented 30-35 years ago.
CIS Industry Evolution
1st Gen
Late
1960’s
2nd
Gen
1970’s
3rd Gen
mid-1980’s
4th Gen
late
1990’s
5th Gen
early
2000’s
6th Gen
later
2000’s
CIS C3
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These systems have performed very well for many years in
supporting a relatively stable business environment . . .
However, PHI is proactively making many changes to stay
ahead of accelerating change in our industry
Starting in 2005 major new capabilities were incrementally added to improve levels of customer service and provide new offerings including new rates, demand response, web, mobile, self-service with AMI as a key enabler.
The effort required to interface with the legacy systems can be complex and time-consuming. This is increasingly proving to be “critical path” in the deployment of further new functionality, especially for customer-facing deliverables.
The systems continue to perform core business processes very well, but there are many newer processes they do not fully enable. Workarounds are sometimes in place to address these limitations.
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PHI has regularly evaluated the life-cycle of the existing
systems to determine the best path forward
An Evaluation of Options has been performed every 24-30
months since 2003 at PHI
Each option had pros and cons and the best course was to
“stay the course” and incrementally add new technologies
around the legacy systems
A high-level evaluation in late 2010 revealed that some
underlying factors would likely change and that a further,
more detailed evaluation was appropriate during 2011
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The replacement of a legacy CIS is a big commitment for
any utility. A few of the Critical Success Factors for the
detailed analysis to evaluate replacement options include. .
Provide a structured, incremental approach including stage
gates
Engage all principal stakeholders
Expand the traditional cost-benefits analysis to include
possible emerging benefits from our changing industry
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The structured, incremental analysis had key phases
with stage gates prior to the next phase
• Phase 0 was done in late 2010 and revealed that some underlying
factors would likely change. The recommendation was to perform the
next level of a detailed analysis.
• Phase I was done in the 1st quarter of 2011. This was a “Gap-Fit”
analysis that indicated substantial potential benefits of replacing the
existing CIS systems with a commercial technology. The
recommendation was to perform a more detailed analysis and make
preliminary plans for a possible project.
• Phase II was done in the 2nd and 3rd quarter of 2011 and drove to a
greater level of detail on scope of work, resource requirements, cost
estimates, and the viability of SAP CR&B for PHI. The recommendation
was to proceed with replacement of the legacy systems and set up a
formal and funded project.
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Key stakeholders at PHI were engaged and involved
During the 1st quarter of 2011, 150 PHI personnel evaluated the
applicability, scope, cost, and schedule for their replacement of C3
and CIS with a commercial “off the shelf” (COTS) system from SAP or
Oracle.
This evaluation included 28 structured workshops to review key
business processes and to confirm the scope of a possible project.
Industry experts and PHI personnel conducted and facilitated the
workshops and performed demonstrations of the SAP system in
conjunction with SAP processes.
Accenture provided key support
for much of this effort
SAP and IBM provided support
and insight in targeted areas
Many other industry experts
also provided insights
14
The traditional costs-benefit models typically address a
number of important areas
• Preservation of the existing benefits gained by a current CIS
– These benefits are substantial at many utilities
– These benefits should not be ignored (or jeopardized)
• Direct support of legacy systems
– Mainframe and licenses, usually increasing as user base at a utility
shrinks
– Staff of specialists
• Continuing modifications to legacy systems
• Business process inefficiencies
• New and needed capabilities that have been identified
– Complex rates
– CRM
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A traditional cost-benefit analysis should also include
considerations for a changing business environment
Newer variable, time-based rates
Increasing needs to extract data
Built-in business intelligence
Multi-channel, multi-device
communication, supporting a single
system of record for all customer
communications
Non-revenue products and services
such as demand response, energy
efficiency, or net metering
Will the pace, breadth and depth of future changes overwhelm the ability
of a utility to make timely and cost efficient changes to legacy systems?
New, adaptable credit and
collections services
Increasing levels of CRM
capabilities
Consolidation and accuracy of
master data, especially related to
customers
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Guiding principles were established early in this effort
Quality First - The quality of the implementation is paramount.
Design for Flexibility and Adaptability - Architecture must facilitate rapid
implementation of future enhancements.
Virtue in Simplicity, with the scope including three core components:
- fundamental CIS functionality
- functionality to meet public commitments
- some additional, value adding, out of the box capabilities
Change the Process, Not the System - A bias toward process change to
conform to out of the box functionality.
Not Everything is a Day One Deliverable - Deliverables will be pushed
to Phase 2 if they shift focus from a high quality implementation of the
three core deliverables.
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Guiding principles were established early in this effort
Good Ideas Don't All Have to be Built – Some new functions can be
obtained by “innovation through adoption” of best functionality built by
other utilities.
What is the Impact on Customer Care and Operations? - Project
decisions need to be made with a clear understanding of the potential
impact on the operating areas.
Dedicated Team - Allow the assigned resources to focus exclusively on
this project and seek to capitalize on their fresh perspectives.
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Timeline of initial activities
2010 2011 2012
8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
We Are Here
Phase 0
Analysis
Phase 1
Gap-Fit
Phase 2
Detailed Plan & Budget
Software
Selection
Select TPA
for SI Bid
Select Project
Leaders & Team
Selection of
System Integrator
BOD
Approval
Executive Approval
to Proceed
Executive Approval
to Proceed
Executive Approval
Stage Gate/Decision Point
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Moving Forward with SolutionOne
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Timeline of activities
2012 2013 2014 2015
8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5
Plan
Analyze
Design
Build
Test
Assembly Product ORT
Final Testing, Deploy, Stabilize & Ongoing Support
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Primary Objectives of Business Readiness
• Reduce the intensity and duration of the transition period
following the Go-Live to better serve our customers
• Prepare our employees
– Communication venues for our leaders
– Develop and execute a plan to utilize Customer Care
resources at key stages of project
– Collaborate with Change Management team on detailed
training, communications, and knowledge transfer plans
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A great deal of attention is focused on the User Experience
Customer Info Alerts IVR Data
Navigation
Bar Flyout Menu
Messages
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We will continue to deliver a solid customer experience
during the systems transition
• PHI mobile applications and web sites are
heavily used by our customers and the general
public
• Billing information to our customers
• Electric outage and restoration information to
our customers as well as the public
• These sites are heavily accessed, especially
during a storm or event
• A key enabler is a solid foundation of business
processes and technologies that needs to be
maintained during the transition of systems
Photo by Rick Giammaria,
Staff Photographer, PHI
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Collaboration
and Teamwork…
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… are Key to
Success
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Questions, thoughts, comments?
Again, thank you to all of you that support our
industry and have contributed to the many advances!
Photo by Rick Giammaria, Staff Photographer, PHI
Contacts:
Tom Pierpoint
Director, Business Applications
Mike Poncia
Director, SolutionOne Project
