BSC Panel ELEXON Information Systems Strategy …...BSC Panel ELEXON Information Systems Strategy...

BSC Panel ELEXON Information Systems

Strategy briefing

13 November 2014

Public

Chris Rowell and Chris Braley

We are keen to discuss our IS Strategy with any interested BSC Parties. If you would like to discuss please contact Chris Braley, [email protected], 07551124612

Aim and content of the session

■ ELEXON has produced an IS Strategy for taking forward the BSC Systems. This reflects:

– the status of our aging systems

– the changes that are projected for the market and the BSC

– the capabilities of current technologies

■ Fundamental to any transformation and central to any IS Strategy is the need to maintain operational integrity of settlement

■ The aim of this session is to:

–Share the current work with the Panel, highlighting where Panel input would be required

–Discuss the Panel’s thoughts on the IS Strategy

If the Panel have any questions in the meantime please contact Chris Braley, [email protected], 07551124612

BSC Panel– IS Strategy Briefing November 2014 2

Target State We discussed and agreed the Future State Vision for ELEXON’s services and the capabilities required to support this.

Future State Vision for Services

The Road Map We reviewed the roadmap to achieve the transition to Target State and the next steps to refine the road map and prepare for transformation

Road Map v1.0

Current State We discussed and agreed the Current state assessment.

Capabilities to Support Future Services

IS Strategy process

IS Drivers

Value for money

Flexibility

Customer experience

Market leadership

Operational risk

Current Service Issues

DisputeService

Manage Entry / Exit

Service

Settlement Service

Reporting & Data Service

Assurance Service

BSC Secretariat & AdministrationService

Thought LeadershipAnalytical & Modelling Service

Dir

ect

Ma

na

ge

Ex

ecu

te

Cu

stom

er S

up

po

rt Se

rvic

e

Change Service Training Service

CS OR

CS OR A

CS

CS

OR

Collect Data DetermineImbalance

Calculate Price & Costs

Manage Invoicing &

Billing

ORCS CR

A A

CS CROR

DisputeService

Manage Entry / Exit ServiceDevelop a streamlined online and guided process with intelligent data capture, validation and progress tracking. Enable more self service.

Settlement ServiceIntegrate the service end to end across data capture, imbalance calculation, calculating prices and invoicing and billing. Deliver quick and cost effective implementation of BSC changes. Increase users’ visibility of base data used for settlement

Reporting & Data ServiceIntroduce a flexible platform to allow ELEXON/BSC Parties to extract the information they want, when they want in the format that they want. Automate and standardise reports where needed and provide analysis tools to interpret data and trends.

Assurance ServiceMove to a holistic approach of all BSC Parties compliance with the code. Produce live data on compliance and deliver the ability to take action to improve the performance of Settlements.

BSC Secretariat & Administration

Service

Thought Leadership / Analytical & Modelling ServiceDevelop modelling capability to show future impacts on the market. Create a joined up approach across the organisation and collaborate where appropriate to address skills gaps and keep abreast of latest thinking and approaches.D

irect

Man

age

Exec

ute

Customer Support Service

Produce a single source for all contact and company profile information. Associate all customer queries with a customer profile to enable the delivery of a more joined up customer service approach. Use customer insight to drive continuous improvement to services. Develop better tools to enable the provision of best in class market advice whilst maintaining independence. Enable better explanations of the code to be accessed by customers.

Change ServiceEstablish a consistent approach to tracking, planning and managing all changes. Develop modelling capability to predict the impact of future changes on the BSC.

Training Service

2014 - 2015

TARGET

2020

Wave 1

Wave 2

Wave 3

Wave 4

Next Stage Plan 2014 2015

Jul Aug Sep Oct Nov Dec Jan Feb Mar

Pro

cure

men

tA

rchi

tect

ure

BSC

Cha

nges

Pro

gram

me

Man

agem

ent

Serv

ice

Tran

sfor

mat

ion

Legacy Procurement Strategy Approved

9.6 Contract Structure Review (ongoing)

Develop Blueprint (Architecture, Operating Model, Organisation)

Identify Process Only Changes (non-technology related)

Confirm BSC & CSD impacts on transformational change Develop BSC Change Strategy

Programme Plan in placeProgramme Planning

Adopt Transformational Method

BPR Phase 1 (Pilot)

8.3 Improve Assurance Compliance Processes (on going)

Budget Round Starts

Confirm Thought Leadership Common Strategy

Procurement Preparation Legacy Procurement

Build Transformation Change Capability

Transformation Services Procurement Preparation

Market Test

Transformation Procurement

Strategy Approved

New BMRS Phase 2 New BMRS Phase 1 Delivered

BPR Phase 2-& 3BPR Phase 1 Delivered

IS Strategy Approved

Programme Business Case Approved

Blueprint iApproved

Transformation Services Pre-procurement PreparationProducts and providers

Analysis Agreed


Traditional BSC services / systems diagrams


Our processes are more generic than our language suggests ! Keeping it bespoke drives costs upwards.

Potential BSC Parties / Service Providers (SPs)

Ofgem & DECC

Existing BSC Parties & SPs

Nat Grid & Dist Bus

ELEXON Staff

BSC Panel

ELEXON’s business – what we do

This is our simpler view of ELEXON’s processes


ELEXON’s Core Services C

ustom

er Support Service

Provide back office functions to support ELEXON’s business but DO NOT provide services to our customers

This is our view of what the customer sees


Inte

rnal

Ex

tern

al

What is driving our IS Strategy?

Threats & Opportunities

CHANGE

IS Strategy

Aging Systems

Contract Expiry

As Is

To Be

Existing/ Potential BSC

Parties

Service Providers

BSC Panel

Nat Grid & Dist Bus

Ofgem & DECC

ELEXON Staff – Exec - Board

User Needs

Market Changes

Technology

Operational Efficiency

This slide shows the key business drivers and target audience. In designing the future we need your input.

BPO

BPR BMRS

• Systems • Processes • People


What are the IS drivers

In considering how to take forward the IS estate we have consolidated the key drivers and considered how well the IS estate meets these today and why and how it should address these drivers in the future.

Minimising risk of process failure and data quality issues Operational Risk

Economy & Efficiency of operating the service Value for money

Maximising speed and minimising cost of introducing new services and functionality

Flexibility

Maximising accessibility to data and simplifying processes

Customer Experience

Enabling us to explore new ideas Market Leadership

right combination =

customer satisfaction


Issues in as-is estate driving change

Dispute Service

Manage

Entry/ Exit Service

Settlement Service

Reporting & Data Service

Assurance Service

BSC Secretariat & Administration Service

Thought Leadership Analytical & Modelling Service

Dir

ect

Man

age

Exec

ute

Cu

stomer Su

pport Service

Change Service Training Service

IS Transformation work a priority

IS Transformation work required

CE OR

F

VM CE

OR

CE OR F

Customer Experience

Operational Risk

Value for Money

Flexibility

Issues

CE

CE

OR

Collect Data

Determine Imbalance

Calculate Price & Costs

Manage Invoicing &

Billing

OR CE VM

F

CE OR

No significant IS Impact

Registration

Service

OR CE

Market Leadership

ML

OR

OR

OR

F F F

F F VM VM

VM

VM

F

ML

ML

ML ML

ML

ML


We have captured the issues for each service and categorised them in terms of the IS drivers discussed on the previous page. Once the issues were grouped together we gave the service an overall RAG (red, amber, green) status based on the overall impact of these issues on the service in qualitative terms, and by the perceived opportunity for improvement. The diagram below summarizes this analysis.

Target State Requirements by Service

An overall description of the future service and how it will be different

A description for the Outlook for a service and the areas of focus for its improvement

A summary of the issues currently encountered in the operation of the service

High level requirements for a service in the future state

EXAMPLE

Main changes in capabilities and technical enablers required to implement the future state requirements


To understand what the future might look like we detailed out the issues of each service at a high level and understood the capabilities and technology needed to address them. Below is an example of the Reporting and Data service. An overview of the target for all future services is provided in the next slide.

Target 2020 – Services

Dispute Service

Manage Entry/Exit Service

Develop a streamlined online and guided process with progress tracking. Enable more self service, simple and easy customer experience.

Settlement Service Integrate the service end to end across data capture, imbalance calculation, calculating prices and invoicing and billing. Deliver quick and cost effective implementation of BSC changes. Increase users’ visibility of base data used for settlement.

Reporting & Data Service Introduce a flexible platform to allow ELEXON/BSC Parties to extract the information they want, when they want, in the format that they want. Automate and standardise reports, and provide analysis tools to interpret data and trends.

Assurance Service Move to a holistic approach of all BSC Parties compliance with the code. Produce live data on compliance and deliver the ability to take action to improve the performance of Settlements.

BSC Secretariat & Administration

Service

Thought Leadership / Analytical & Modelling Service Develop modelling capability to show future impacts on the market. Create a joined up approach across the organisation and collaborate where appropriate to address skills gaps and keep abreast of latest thinking and approaches.

Dire

ct

Man

age

Exec

ute

Customer Support Service

Produce a single source for all contact and company profile information. Associate all customer queries with a customer profile to enable the delivery of a more joined up customer service approach. Use customer insight to drive continuous improvement to services. Develop better tools to enable the provision of best in class market advice whilst maintaining independence. Enable better explanations of the code to be accessed by customers.

Change Service Establish a consistent approach to tracking, planning and managing all changes. Develop modelling capability to predict the impact of future changes on the BSC.

Training Service

Registration Service Develop a simple guided process with intelligent data capture, validation and progress tracking. Removing the need to enter data multiple times


Target 2020 – An IS Enabled Business

ELEXON is a customer focussed organisation that is flexible to the evolving Electricity Market by delivering change quickly and cost effectively. ELEXON delivers a set of services tailored to meet customer needs, enable market competition and manage the risk in the Settlement of Electricity as a priority. ELEXON uses the latest technology where appropriate, collaborate with other organisations to study future impacts and develop solutions to industry wide problems

ELEXON’s Vision

To be a leader in the efficient transformation of energy markets - by providing shared solutions to address common industry problems

ELEXON’s Mission

To deliver the BSC effectively, efficiently and economically, to the benefit of our customers.


These statements summarise the fully IS enabled business that we believe we should and can achieve by 2020. Delivery will be across the period.

Roadmap definition approach

Future State

Future Services

Future Capabilities

Technical Enablers

Unconstrained Initial Road Map

Gap Analysis, Planning &

Prioritisation Inputs

1. Service Prioritisation 2. Impact of Regulation 3. Constraining Volume of Change 4. BSC Change Lead Times 5. Technical Dependencies

Roadmap Guiding Principles

2014 - 2015

TARGET

2020

Wave 1

Wave 2

Wave 3

Wave 4


The following outlines the process used to define the roadmap. In particular a number of assessments were carried out (see 1-5 in the diagram below) to enable us to identify grouped activities. In addition a number of principles were also used in guiding the formulation of the roadmap. A selection of the inputs which are most relevant to the Panel are further explained on the following slides.

Example: Input 1. Prioritise services by benefits

Overall benefit

across IS drivers

Implementation Complexity

High

Low

High Medium Low

6. Invoicing & Billing

(1.5)

1 Entry / Exit (1.4)

2. Registration

(1.7)

3. Collect & Manage Data

(1.9)

4/5. Determine Imbalance,

Prices & Costs. (1.2)

7. Reporting & Data (2.4)

8. Customer Support

(1.3) 9. Change

(1.2)

11. Thought Leadership

(0.7)

10. Assurance

Service (1.5)

For further information on how service benefits and complexity has been derived please see Appendix A1 & A2.


The roadmap was initially shaped by the priority of required improvements to the services. Each of the services to be transformed within the scope IS Strategy has been prioritised in terms of the overall benefits it delivers across all IS drivers (y axis) and in terms of the complexity of the delivering the change required (x axis). This analysis and been used to prioritise the delivery of the services providing the most benefit first. Note that both benefits and complexity have been assessed based on qualitative rather than quantitative inputs and feedback.

Regulatory changes in 2014 - 2016 will be delivered from our existing IS estate, unless we have invested in service transformation (i.e. BMRS and BPR).

Regulatory changes in 2016 – 2018 are driven by smart enabled changes and reducing settlement timescales. The focus is on the services of Registration, Collect Data and Assurance. These are key enablers in reducing settlement timescales. Central registration, data collection and data aggregation plus dynamic switching of smart meters are also likely. There is also a noticeable ‘low change’ window around the key settlement services of imbalance calculations & pricing, billing, and reporting.

All remaining services need to be transformed for the wider reforms targeted for 2020.

Example: Input 2. The Impact of Industry Change

Implementation date is not yet confirmed; date shown is best estimate. High impact on the service Medium impact on the service Low impact on the service

Summary of key findings

Regulation Project Probability of Regulation Proceeding

Implementation Date

Entry/Exit Registration Collect Data Determine Imbalance

Calculate Prices & Costs

Invoice & Billing

Reporting & Data

Customer Support

Assurance Change Thought Leadership

SCR - PAR 250 (P304) HIGH Q4 2014 Transparency of Information (P291 + P295) HIGH Q4 2014 SCR– Single price + VOLL (P305) HIGH Q4 2015 EMR - Contracts for Difference HIGH Q4 2015 SMIP - Metering Roll Out HIGH Q4 2015 Change of Supplier - Smart (P302) HIGH Q1 2016 Scottish Independence (separate market) MEDIUM Q2 2016 Mandating HH settlement non domestic (P272) HIGH Q2 2016 Capacity Allocation and Congestion Management HIGH Q1 2016 European Balancing Network Codes HIGH Q1 2016 PSR - Dynamic Switching of SMART Meters HIGH Q2 2018 COS - next day switching HIGH Q2 2018 SMIP - DCC Central Registration HIGH Q2 2018 EMR - Capacity Market HIGH Q1 2018 PSR - Reducing Settlement Timescales HIGH Q2 2017, 2020 Electricity Settlement Reform HIGH Q2 2020 FTA - ALL 1st Conclusions LOW Q4 2020 SMIP - Central Data Collection + Data Aggreg MEDIUM Q1 2020 Demand Side Response (NEW MARKET) HIGH Q1 2025

1

2

3

1

2

3

The anticipated impact of regulation has been assessed. The table below sets out the known upcoming regulatory changes and how they are expected to impact on ELEXON’ services. The findings drawn are drawn from information currently available, however Regulation and its impact on the IS Roadmap should be reviewed on a periodic and ongoing basis. Note the ‘low change’ window afforded in 2016 – 2018.

BMRS / BPR

‘Low Change’ window


Example: Input 4. Changes required to BSC

Service BSC Change Required? (9 -12 months)

Code Subsidiary Documents (CSD’s) - (6 – 9 months)

Comments

Entry / Exit Yes May be Due to streamlining of processes

Registration Yes Yes – Must

There is the potential for a change in sourcing of the operation of this service, changing this would require a change to the BSC. A CSD is potentially required for streamlining of the process

Collect & Manage Data Yes Yes – Must Change to BSC likely due to change in process

Imbalance, prices & costs No Yes - Probable Panel approval for new system required. Highly likely that changes to Service Descriptions are required and possible BSCPs

Invoicing & Billing Yes Yes – Must

There is the potential for a change in sourcing of the operation of this service, changing this would require a change to the BSC. A CSD is potentially required for streamlining of the process

Reporting & Data Probable Yes – Must Change to the BSC is probable in order to remove prescriptions with the current service. CSD changes would support further streamlining

Customer Support No May be

Change Probable May be Changes to Section F of BSC are likely. Change to BSCP40 (change management) is also slikely

Assurance Probable Yes – must Probably yes for some areas like compliance and in particular for the taking action process, no for others

Thought Leadership No No


The broad over all lead times for modifications to the code has been considered. The detail of this is explained below, note that further analysis will be needed to understand the nature of the code changes required.

2014 - 2015

TARGET

2020

Wave 1

Wave 2

Wave 3

Wave 4SERVICES

CAPABILITIES

SOURCING & PROCUREMENT

TECHNOLOGY

Initial ELEXON BSC Road Map - Guide

Organised into 5 waves that each deliver a significant change and transition in state to ELEXON’s operating model

The outcomes we expect to achieve are called out

individually

The roadmap is organised into 4 themes that describe the different types

of outcomes that will be achieved

Describes how services will be transformed throughout the roadmap

Describes how capabilities will be enhanced or built

throughout the roadmap

Describes services that will be procured and how adapting the sourcing of

ELEXON’s operations will be addressed

Sets out the enabling technologies that will be deployed to support transformation of services and

capabilities

The target state encompassing what ELEXON

wants to achieve by 2020

Work has already started on delivering some outcomes in the 2014-15 wave. These are shaded in pink.


The initial roadmap has been illustrated overleaf sets out the key outcomes to be achieved on a timeline toward the target state in 2020. Below we have explained how the road map is structured to aid with its understanding.

Initial ELEXON BSC Roadmap v1.0

18

Target State 2020

Identify Process Improvements

Confirmed Thought

Leadership Strategy

Build Transformation

Change Capability

Defined Enterprise Architecture

Defined Operating Model

Market Test Solutions

Market Test Service Providers

BSC Agent Services

Transitioned

IT Services Transitioned

Improved & Flexible Data Validation,

Collection & Mmgt

Improved & Flexible Validation

& Mgmt of Registration Data

Self Service Registration & Collect Data

Services

Speedier Resolution of Meter Data

Collection Issues

Improved Works Management

Capability

Operational Reporting Platform

ETL

Meter Data Management

Solution

Integration Tool

Adjust Sourcing of Data Collection

Operations

Billing & Invoicing Ops & Customer

Experience Optimised

Adjust Sourcing of Billing & Invoicing

Operations

2014 - 2015 Wave 1 Wave 2 Wave 3 Wave 4

Deliver Improved & Consistent

Customer Support & Analytics

Build Customer Insight& Service Improvement

Capability

Accounting & Billing Calculation

Package

Master Data Management

Solution

Self Service Technology

Workflow

Customer Relationship Management

Solution

Guided & Self Service Market

Entry Experience

Improved & Automated Market

Exit Process

Flexible & Settlement

Calculation & Rpts

Simulate and Commit

Alternative Settlements

Improved Risk Management

Flexible Settlement

Calculation Engine

Industry Modelling Tool

Build Rules Configuration

Capability

Build what/if Change Modelling

Capability

Build Industry Modelling Capability

SERVICES

CAPABILITIES

SOURCING & PROCUREMENT

TECHNOLOGY

Transformed Assurance

Performance Management

Build Thought Leadership

Relationships & Collaboration

Collaboration Tool

Improved change costs benchmarks & configuration management

Streamlined testing and automation introduced

Settlement Risk Management

System

BSC Change Strategy

Works Management

Document & Configuration

Management Tool

Improved Flexible Access to

Settlement Data (BPR)

New Regulatory Reporting with

Performant Flexible Access (BMRS)

Delivery of Assurance Reports Streamlined (BPR)

IT Service Provider(s) Procured

BSC Agent Service Provider(s) Procured

Analytical Reporting Platform

Deployed

Transformational Provider(s) Procured

Data Streaming Platform Deployed

Delivery of Unconstrained

Process Improvements

Next steps

■ Discuss views on IS Strategy and case for change with Panel members (ELEXON & Panel Members Nov - Dec 2014)

■ Analyse options and develop business case (ELEXON Dec 2014 – Jan 2015)

■ Present case for change to the ELEXON Board and Panel (Board and Panel meetings early 2015)

■ Proceed with Procurement of new service provider(s) (ELEXON & Panel early 2015)


BSC Panel ELEXON Information Systems Strategy …...BSC Panel ELEXON Information Systems Strategy...

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