Perspective on todays utilities and the industry

20
Oracle Open World Perspective on Today’s Utilities and the Industry Vision for Tomorrow Perry Stoneman, Capgemini September 2013

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By Perry Stoneman, Capgemini September 2013, Oracle OpenWorld

Transcript of Perspective on todays utilities and the industry

Page 1: Perspective on todays utilities and the industry

Oracle Open World Perspective on Today’s Utilities and the Industry Vision for Tomorrow

Perry Stoneman, Capgemini

September 2013

Page 2: Perspective on todays utilities and the industry

2 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Big Trends in the Global Utility Industry

1. Digitization of the electrical grid

through Smart Meter and Smart

Grid Programs

2. Diversification of the energy mix –

decentralized renewable energy

3. The social explosion through the

internet, and proliferation of mobile

devices

Transformations we are seeing…

Page 3: Perspective on todays utilities and the industry

3 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Big Trends in the Global Utility Industry

Not enough focus on IT OT convergence.

Only a few forward-looking utilities are

addressing the convergence and

coordination of IT and OT.

Little future-focused work has been done on

business process, for example utilities are

not prepared for Distributed Energy impacts.

Receptivity to the 5 major technology trends

of Big Data, Cloud, BPMS, Mobility and

Intelligent devices is increasing, but adoption

is slow and far from widespread.

What we are not seeing…

We call the adoption of the 5 major technology trends

Digital Maturity

BPM

CollaborationInternet

Appification

5 major digital technology trends

Page 4: Perspective on todays utilities and the industry

4 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

What is Digital

Transformation and

why you should care!

Page 5: Perspective on todays utilities and the industry

5 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Four levels of digital maturity

Transformation management intensity

Conservatives Overarching digital vision exists,

but may be underdeveloped Few advanced digital features, but

traditional capabilities may be Strong governance across silos Taking active steps to build digital

skills and culture

Beginners Management skeptical of the

business value of advanced digital technologies

May be carrying out some experiments

Immature digital culture

Fashionistas Many advanced digital features

(such as social, mobile) in silos No overarching vision Underdeveloped coordination Digital culture may exist in silos

Digirati Strong overarching digital vision Good governance Many digital initiatives generating

business value in measurable ways

Strong digital culture

Dig

ita

l in

ten

sit

y

Page 6: Perspective on todays utilities and the industry

6 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Digital maturity varies widely*

Dig

ira

ti

Co

ns

erv

ati

ve

s

Fa

sh

ion

ista

s

Be

gin

ne

rs

* Digital maturity of 391 companies in our sample

Page 7: Perspective on todays utilities and the industry

7 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Digitally-mature companies have significantly better financial performance

-11% +26%

-24% +9%

Basket of indicators:

• Tobin’s Q Ratio

• Price / book ratio

Cost Effectiveness Market Valuation

-12% +12%

-7% +7%

Page 8: Perspective on todays utilities and the industry

8 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Some industries are more mature than others…

* Average maturity of industries for which we received at least 20 survey responses

Banking

Consumer Packaged Goods

Insurance

Manufacturing

Pharmaceuticals

Retail

High

Technology

Telecoms

Travel and hospitality

Utilities

Average

industry

maturity

*

Transformation management intensity

Dig

ita

l in

ten

sit

y

Page 9: Perspective on todays utilities and the industry

9 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Utilities specific findings

1. Utilities have only started adopting digital technologies in specific areas such as the customer experience

2. Analytics is not widely used in either customer or operational applications

3. Untapped opportunities may exist in worker enablement and process digitization

4. Data and integration issues may present challenges in other areas

5. Utilities’ digital transformation management practices are relatively more mature than their use of digital technologies

Page 10: Perspective on todays utilities and the industry

10 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The Value of the

Capgemini Oracle

partnership

Page 11: Perspective on todays utilities and the industry

11 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The value of the Capgemini - Oracle partnership

#1 in Utilities for IT Services in Western Europe* (Gartner)

#3 in Utilities for IT Services Worldwide* (Gartner)

Leader for IT services in the EMEA Utilities Market** (IDC)

Over 75 Smart Energy clients worldwide

Smart Energy projects for over 113M smart meters

We are a leader in digital transformation in most sectors

Capgemini is

a leader in

Utilities for IT

Services

Capgemini-

Oracle

Partnership

Formed in 2006, the Smart Energy Alliance

Oracle Software part of every smart energy

project of Capgemini

Data from 113 million smart meters flowing through

Capgemini and Oracle architected AMI solutions

Lead partners on the largest approved meter rollout

in Europe featuring MDM 2.0.

* Ranked by Gartner based on 2012 revenue; Source: Gartner, Inc., “Market Share: IT Services, 2012”, Kathryn Hale et al, 29 March 2013

**Source: IDC: “IDC MarketScape: IT Service Providers in the EMEA Utilities Market 2013 Vendor Assessment,” Doc #EIOS02V, May 2013.

Page 12: Perspective on todays utilities and the industry

12 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Introducing Capgemini

Immediate Architecture

designed for digitally

enabled businesses!

Revealing for the

1st time our Agile

Architecture

Page 13: Perspective on todays utilities and the industry

13 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Co

nsu

mer

dri

ven

mark

et

With the evolution of consumers and maturing technology, IT will become business!

Transition to information utilities and empowered customers bring

Business and IT together

Unaware

Aware Low energy lighting

Efficient heating

Insulation

Supplier comparison

Self service

Passive Interest Green energy

Renewables sources

Energy labels

Energy efficiency advice

Active involved Energy conversation

programs

Smart meters

Energy management tools

Community involvement United consumers

Communities

Demand shift

Consumer storage

Advance energy management

Uti

lity

dri

ven

mark

et

Interactive involved Local generation

New pricing models

Demand response programs

Customer analytics

Consumer - Prosumer

Page 14: Perspective on todays utilities and the industry

14 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Capgemini’s H-model Architecture is fundamental for DUT: Enabling speed of digital innovation

The H-model distinguishes the robust application layer and

the agile interaction.

Systems of Innovation

Systems of Differentiation

Systems of Records

Sp

ee

d

Va

lue

Ind

ustr

ialis

ation

Cost re

du

ctio

n

Overall objectives

Sp

ee

d

Va

lue

Ind

ustr

ialis

ation

Cost re

du

ctio

n Layer

Layer

,

Channel Service

Security

Layer

Application & Data Layer

Orchestration & Integration Layer

Personalization &

Interaction Layer Insight Layer

Robust Application

Layer

Agile Interaction Layer

Governance

Layer

Page 15: Perspective on todays utilities and the industry

15 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The Capgemini H Model Architecture Core Framework

Layer

,

Channel Service

Security

Layer

Application & Data Layer

Orchestration & Integration

Layer

Personalization &

Interaction Layer Insight Layer

Robust Application Layer

Agile Interaction Layer

Governance

Layer

Page 16: Perspective on todays utilities and the industry

16 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

Layer

,

Channel Service

Security

Layer

Application & Data Layer

Orchestration & Integration

Layer

Personalization &

Interaction Layer Insight Layer

Robust Application Layer

Agile Interaction Layer

Governance

Layer

The Capgemini H Model Architecture Front End Services – The Agile Interaction Layer

Channel Service

Apps Web Call IVR SMS Chat

Personalization &

Interaction Layer

Social Media E-Commerce

Insight Layer

Big Data Analytics

Channel Service

CSS – Customer Self Service Cloud Solutions

Personalization &

Interaction Layer

SRM Right now

Insight Layer

OBIEE OBIU

Page 17: Perspective on todays utilities and the industry

17 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The Capgemini H Model Architecture Stable Domain – The Robust Application Layer

Layer

,

Channel Service

Security

Layer

Application & Data Layer

Orchestration & Integration

Layer

Personalization &

Interaction Layer Insight Layer

Robust Application Layer

Agile Interaction Layer

Governance

Layer

Application & Data Layer

MDMS OMS DMS DRMS HES

EAM GIS CIS Power

System DB MWFM

Application & Data Layer

MDM NMS (OMS & DMS) DSM

(to come)

Smart Grid

Gateway

WAM GIS CC&B ODM MWM

Page 18: Perspective on todays utilities and the industry

18 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The Capgemini H Model Architecture Orchestration and Integration Service Layer – Oracle Applications and Technologies

Layer

,

Channel Service

Security

Layer

Application & Data Layer

Orchestration & Integration

Layer

Personalization &

Interaction Layer Insight Layer

Robust Application Layer

Agile Interaction Layer

Governance

Layer

Orchestration and Integration Service Layer

Business Process

Management

Master Data

Management

Business Activity

Monitoring

Work Flow

Management

Extract, Transform &

Load Traffic Management

Oracle Fusion Middleware

Page 19: Perspective on todays utilities and the industry

19 Copyright © Capgemini 2013. All Rights Reserved

OOW Capgemini input (draft 01) | September 2013

The Capgemini H Model Architecture Governance Layer – Oracle Applications and Technologies

,

Channel Service Security

Layer

Application & Data Layer

Orchestration & Integration Layer

Personalization & Interaction

Layer

Insight Layer

Robust Application Layer

Agile Interaction Layer

Governance

Layer

Authorization

Authentication

System Activity

Infrastructure

Security

Logging, Auditing &

Reporting

Configuration

Management

IT Service

Management

Business Service

Management

User Support

Continuity

Management

Business Process

Management Master Data Management

Business Activity

Monitoring

Work Flow Management Extract, Transform &

Load Traffic Management

MDM NMS (OMS & DMS) DSM

(to come)

Smart Grid

Gateway

WAM GIS CC&B ODM MWM

Oracle Fusion Middleware

CSS – Customer Self Service Cloud Solutions

SRM Right now OBIEE OBIU

Page 20: Perspective on todays utilities and the industry

The information contained in this presentation is proprietary.

Copyright ©2013 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With more than 125,000 people in 44 countries, Capgemini is one

of the world's foremost providers of consulting, technology and

outsourcing services. The Group reported 2012 global revenues

of EUR 10.3 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on Rightshore®,

its worldwide delivery model.

Learn more about us at www.capgemini.com