SAP for UtilitiesOverview and Outlook
Ertan Yorganci, BD Utilities, SAPPhilipp Freudenberger, IBU Utilities, SAPSofia, March 12th, 2008
© SAP 2007 / Page 2
Utilities Solution Map 2006
Generation Transmission & Distribution Meter Operation Retail & Services
Plant Engineering and ConstructionPlant Maintenance and Operations
Decommissioning
Grid Engineering and ConstructionGrid Maintenance and Operation
Connections Management
Meter&Device Management
Energy Data ManagementEnergy Ledger / Portfolio Management
Energy Trading
Campaign ManagementIC Marketing
Sales Management for Residential CustomersSales Management for Commercial and Industrial Customers
Account and Contact ManagementIntegrated Sales Planning and Analysis
Service Order Management with ERP BillingCustomer Service Processes
Service Contract and Entitlement ManagementComplaints and Returns Management
Electronic Customer ServicesAccount and Contact Management
Billing for Residential CustomersBilling for Commercial and Industrial Customers
Billing of Unmetered ServicesBilling of Services
Receivables and Collections ManagementReconciliation and Closing
Auditing
Change of SupplierReconciliation and Settlement
Payment Processing
Workforce ManagementProcurement and Service of Spare Parts
Inventory Management
Consumption Data Collection
Network Lifecycle Management
Meter Operations
Energy Capital Management
Selling of Energy & Services
Customer Service Management
Billing of Energy & Services
Customer Financial Management
Collaborative Services & Intercompany Data Exchange
Resource & Supplier Management
Plant Lifecycle Management
Enterprise Management & Support
EAM
ECM
CRM&
Billing
ERP
EnterpriseAsset
Management
EnergyCapital
Management
© SAP 2007 / Page 3
Industry-oriented Application Platform – ProcessView
Business Warehouse
Enterprise Resource Planning (ERP)
CRM & Billing Energy CapitalManagement
Business WarehouseSAP for Utilities
Business Process FlowBusiness Process Flow
Plant Lifecycle MgmtPlant Engineering&ConstructionPlant Maintenance&OperationsDecommisioning
Network Lifecycle MgmtGrid Engineering&ConstructionGrid Maintenance&OperationsConnections Management
Resource&SupplierWorkforce ManagementProcurement & Service of SparePartsInventory Management
Selling of Energy&ServicesCampaign ManagementSales Management (Res./C&I)Account & Contact MgmtSales Planning & Analysis
Customer Service MgmtService Order ManagementCustomer Service ProcessesElectronic Self ServicesAccount & Contact Mgmt
Billing of Energy&ServicesBilling (Residential / C&I)Billing of Unmetered ServicesBilling of Services
Customer Financials MgmtReceivables & Collections MgmtReconciliation & ClosingAuditing
Intercompany Data ExchangeChange of SupplierReconciliation & SettlementGrid usage Billing
Meter OperationsMeter & Device ManagementConsumption Data Collection
Energy Capital ManagementEnergy Data ManagementEnergy Ledger /Energy Portfolio ManagementEnergy Trading
Analytics Financials Human CapitalManagement
CorporateServices
OperationsSupport
Enterprise AssetManagement
© SAP 2007 / Page 4
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 5
Basement
Apartment 2
Apartment 3
Apartment 1 Hall
Service Connection: Electricity
Service Connection: WaterSupplyGrid
Street
Connection Object
= Premise
Device locationBasement
Device locationHall
Businesspartner
Contract 1:Electricity
Contract 2:Municipal
Rate
Contract 3:Water
Installation 1:Electricty
meter
Installation 2:Municipal
Installation 3:
Water meter
Contractaccount
The Utilities House
© SAP 2007 / Page 6
Classic and Deregulated Data Model
Service-provider
Service
POD
Installation
Device
Register
Premise
Contract
ContractAccount
Business-partner
Synt.Profile
Profiles
ConnectionObject
Regional-structure
Service-provider
Grid
Regional-structure
Service-provider
© SAP 2007 / Page 7
Connectionobject
Premise
Installation
Device
Business partner
Contract account
Move-in
Move-In: Master DataTechnical master dataBusiness master data
ContractContract
© SAP 2007 / Page 8
Move-out
Contract 2Contract 2
01.02.2003
Move-inMove-in
02. Nov. 02. Dec 03. Jan. 03. Mar. 03.Apr 03. May03. Feb.
Customer 1 Customer 2Customer 2
Installation
Move-in
Contract 1
No Changes to Installation Data
© SAP 2007 / Page 9
Meter Reading / Billing / Invoicing ProcessFlow
Create MROrder
MeterReading
Order
BillingOrder
Entry MRResults
BillingOrder
Billing
BillingDocument
Invoicing &Bill Printout
PlausibleMR Result
ImplausibleMR Result
Meter ReadingCorrection
© SAP 2007 / Page 10
Regional structure SchedulingMaster data
Meterreading
unit
Businesspartner
Connectionobject
Premise
Account
Installation
Contract
CityCity StreetStreet StreetsectionStreetsection
Politicalstructure
PortionPostal regional structure
Regional Structure and Scheduling
© SAP 2007 / Page 11
QUANTITY FACTOR QUANTITYCalculates x% of a quantity
. . .
. . .NUMBER OF DEMAND PEAKS DEMANDCalculates N peak averagesDEMAND PRICE BILLING LINE ITEMSValuates demand with a price
. . .QUANTITY QUANTITY QUANTITYDifference of two quantities
. . .
. . .QTY PRICE BILLING LINEValuates energy with a price ITEMS
ACT_KWH 0.5 ACT_50%
-REACT_KWH - ACT_50% BILL_REACTBILL_REACT USD 0.06 BILLING LINE
ITEMS
Variant pool
Variant pool
Contract text:The reactive energy that exceeds50% of the active energy is valuatedusing a separate price.
*
*
**
*
-
Example: Billing Rule for Electricity
© SAP 2007 / Page 12
Budgetbilling plans
Billingdocuments
FI-CA documents
Invoicing- Data entry- Validation- ProcessingFI-CA documents
Manualbilling
Printdocuments
Postingdocument
FI-CA
Budget billingplans
SD documents
Invoicing Tasks
Receivable 100Credit 20
© SAP 2007 / Page 13
Optimizationof back-
officeprocesses
Goal
Minimizing ofbilling errors
Optimizationof the meter-readingprocess
Optimizationof the paymentprocess
Critical factorsfor success
OK
Not OK
OK
OK
Not OK
Not OK
Result
% Fully paid bills
KPI
% Returns per reason
# Readings per employee
% correct data received
Time betw. reading & payment
% billing errors
99%
< 3%
5 days
>97%
100
< 1%
Benchmark
Business Goals, Success Factors and KPIs
© SAP 2007 / Page 14
Start End
Meter Read to Billing Billing to Invoicing Invoicing to Payment
Meter ReadingPreparation
Meter ReadingPerformed
BillingOutsorting
InvoiceCorrection
KPI Example: Back Office Performance
# Reading# Incorrect readsØ Time for correctingreads
# Billing errors# OutsortingsØ Time for processingoutsortings
# Invoice correctionØ Time for correctinginvoices
costs = # processes x time spent per process
Time between meterreading and invoicing
Time between invoicingand payment
Data Migration...the forgotten functionality
IS-U Migration WorkbenchA tool that compliments the known migration techniquesUsed to migrate IS-U/CCS and IS-Waste business objectsComprehensive coverage of all actions around data transfer
High Performance MigrationImport programs based on fast direct inputHighly parallel import possibleInterface structure width can be reduced
Well and truly stress tested>400 Productive customers
© SAP 2007 / Page 16
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 17
Frontoffice• IS-U/CCS 1.2
Evolution of the Call Center Agents WorkPlace
L-shape CIC• IS-U/CCS 4.61
IC im CRM• CRM 3.0
IC WebClient• CRM 4.0, 5.0
und 2006s/2
© SAP 2007 / Page 18
Analyses
Back end Front end
ITS
CTITele-
business
Electronicbusiness(Internet)
MobileAppl-
ications
SAPIS-U/CCS
SAP BW
Business partnerContract accountsContractsConnection objectsPoints of delivery
Business partnerContract accountsContractsConnection objectsPoints of delivery
Synchronized Business Objects
Business objectssuch as businesspartner, activities,
contracts, products,sales and
distribution projects
© SAP 2007 / Page 19
Analyses
Back end Front end
ITS
CTICTI
Business objectssuch as businesspartner, contracts
and products.
Electronicbusiness(Internet)
MobileComponents
SAPIS-U/CCS
SAP BW
Business partner transfer totarget group selection
2) Target group selection
3) Transfer of target groupto SAP CRM
4) Marketing planning5) Campaign creation6) Campaign execution7) Activity management8) Campaign feedback (BW)9) Contract creation10) Contract synchronization
11) Automatic creation of contracts12) IDE communication with prior
supplier or transmission company13) Automatic creation or change of
master data-----14) Transfer of meter reading results15) Billing and invoicing16) Transfer of sales and transaction
statistics to BW17) Optional: Commission
determination
1(a) Import of externaladdresses to targetgroup selection
Example: Marketing and Sales Process
Tele-business
© SAP 2007 / Page 20
Synchronization between CRM and IS-U: DataModel
ConnectionobjectInstallation
Contract
Premise
Point ofdelivery
Contractaccount
Bill
Billing
mySAP Utilities mySAP CRM
Point ofdelivery
Contract
Businesspartner
Businesspartner
Businessagreement
Connectionobject
© SAP 2007 / Page 21
For Release 2007, we will significantly strengthen the Interaction Center WebClientfor Utilities
The IC WebClient for Utilities will provide more comprehensive out-of-the-boxfunctionality for Utilities than the IC WinClient
If required, the IC WebClient for Utilities can leverage functionality that wasoriginally developed for the IC WinClient
The Agent’s User Interface starting with “Release2007”
© SAP 2007 / Page 22
General Advantages of the IC WebClient
1. Complete processes faster through intuitive userinterface and process design
2. Less user errors by leading the agentthrough the process
3. Increase user satisfactionIncrease agent retention periods
4. Train agents faster and with lower cost
5. Reuse available processes no matter if they residein CRM or IS-U/CCS
6. Easier configuration and extensibilityespecially on the UI
7. Small installation and administration cost (TCO)
© SAP 2007 / Page 23
Business Scenario in focus
Customer identification/creation
7
4
23
5
1
8
6
Productproposal/pricedetermination
Collection ofcustomer data
Creation ofcontracts
Quotations andoffers
Fulfillment andsettlement
Sales analytics
Set up and perform acampaign setup and
execution
© SAP 2007 / Page 24
ToolbarSystemAlerts
Navigation
Work Area
News and alerts
Notes CustomeInfo
Alerts CommunicationsInfo
Contextarea
Title
Interaction Center Web Client: Layout
© SAP 2007 / Page 25
Manage contracts and quotations
Minimizing number of clicks - Easy creation of contracts and quotations
From quotation: 1-click „Accept quotation“
From contracts: “follow-up“ contract, „follow-up“ quotation
Prefill product configuration from CRM and IS-U data
Calculate price for energy contracts via IS-U
Check of credit worthiness data via SAP Credit Server (e.g. score)
Create budget billing plans, also for quotations
Generate documents through word integration
Send documents via e-mail and fax
© SAP 2007 / Page 26
Contract maintenance - Supporting regulated and deregulated markets
Quotations and Contract management
Move-In New contract
Move-out End contract
Move In/Out for premise New contract with forced end contract
Move In/out for business partner Move to other premise
Change move-in date Change start of contract
Product change Change contract
Reverse product change Reverse change
© SAP 2007 / Page 27
Interactive scripts for product proposal
Dynamic scripts include CRM and IS-U data„Currently, we have recorded people living at your premises.“
Answers update system data
Result: List of products to be selected for a quotation or contract
Product proposal
4
© SAP 2007 / Page 28
UCES: a complete Customer Portal Solution
Bill Payment
BillPresentment
OverviewPaid Bills
OverviewOpen Bills
Direct DebitSupport
PartialPayments
PaymentDetails
PaymentOverview
EmployeeConfirmation
Process
Create / EditCredit Card
Data
Create / EditBank Data
EditMaster Data
CreateInquiry
E-MailNotification
OffsetCredits withOpen items
CreditsOverview
Move In Move Out Move In/Out EnterMeter Reading
Documentationof
User Acitvities
FAQ
ChangePassword
RequestUser
ScheduledMeter Reading
Dates
ConsumptionOverview
Meter ReadingHistory
ContractDetails
DisplayBudget Billing
Plan
ChangeBudget Billing
Plan
Integration offurther SAPApplications
Integration offurther non SAP
Applications
Role Concept
Collaboration
KnowledgeManagement
Chat DiscussionForum
QuickPoll News
GenericBiller Direct
Content
Utilities-specificE-services
Generic PortalContentLegend:
© SAP 2007 / Page 29
Browser
Firewall
Firewall
WebServer
or
SAPEnterprise
Portal
Company Network
UCES architecture based on WAS or EP
SAP ApplicationServer
SAP Web ApplicationServer
SAP UtilityCustomer E-
ServicesFrontend
(Java)
JavaCon-
nector
SAP IS-U/CCS(incl. FI-CA)
Firewall
© SAP 2007 / Page 30
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 31
Integrating Customer Interaction with FinancialProcesses
ReceivablesManagement
CreditManagement
ProfitabilityAnalysis
Marketing
……
PartnerRelationshipManagement
Customer
CollectionsManagement
Sales &Contract
Management
Customer Relationship Management Customer Financials Management
CustomerCare
Billing ManagementFinancial Inquiries
Dispute ManagementInteractive Collections
Customer&Contact MgmtContract Management…
Order & ServiceManagement
CustomerField ServiceManagement
Logistics & InstallationManagement
CustomerTrouble
Management
ServiceProvisioning/ Activation
OrderManagement
…
CashManagement
© SAP 2007 / Page 32
Basic Features of Contract Accounting
CRM
Invoicing
Accounting
Account Management Payment processing Collection GL Traitment
Banks, collections agencies, distributor
Single view ofinvoices frommultiple sources
Display of customeraccount
operationsrecording
Transfer fromaccount to an otheraccount
Interest calculationInstallment planDue date
rescheduling
Payment processingPayment advice
note processingGeneration of
payment files forbanks (ETEBAC)
ReturnsReturns activitiesInbound payments
(TIP, check, creditcard)
clearing of openitems
Dunning proposalsDunning activities
generationDunning chargesCollection agencies
managementScoring
Transfer of openitems in doubtful andautomaticprovisioning
automatic andmanual write off
provisioningadjustment based onevents (paymentreceived from thecustomer or write off)
AccountMaintenanceOperations Payments Dunning
activities Scoring
StandardInterface
PaymentsReturns
Paymentsadvice
Transferto collection
agencies
Discon-nection
© SAP 2007 / Page 33
FIFI--CACA
IS-U InvoicingIS-U Invoicing
CO
CashManage-
ment
CashManage-
ment
SDSDinvoiceinvoice
CO-PA
Centralaccounting
interface
FI-GLFI-GL
FI-CA standard integration within ERP:Overview
© SAP 2007 / Page 34
FI-CAembedded in IS-U
Customer Financial Management: ModularOverview
Credit / Risk Management
Funds Management
Additional Billing:SD
CRMexternal Systems
GeneralLedger
CostAccounting
Analytics(BW)
DisputeManagement
Worklist Processing
Service OrderManagement /
Mobil AssetManagement for
Utilities
CallcenterIntegration
© SAP 2007 / Page 35
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 36
Situation Today
In 2003 North American Utilities had to write off ~ $ 1,6 billionof their revenue *)
High DSO blocks working capital
The probability to get paiddecreases with the age ofthe debt
*) Source: Chartwell Credit and Collections Report 2004Months
Prob
abili
ty to
get
pai
d
3 6 12
Example:1 bn revenue and financing costs of 7 %
Reducing DSO by 1 day saves ~ $US 200.000
90 %
60 %48 %
Source: A&S Collection Associates
© SAP 2007 / Page 37
Credit & Collections Management – Key Issues
Effective and efficient credit management processesin a distributed sales and billing systems landscape
Central information repository needed for credit decisions
Access to external information required when doing business with newcustomers
Merging of external and internal knowledge about business partner
Tight integration of credit management and collections management
Treatment strategies based on a variety of customer characteristics andtheir risk assignment
© SAP 2007 / Page 38
Credit Risk Management in Customer Lifecycle
Move In/Move/Supplier Switch
Consumption BillPaymentProcessing
CollectionsManagement
Credit Risk Monitoring
CampainManagement
DisputeManagement
Credit Risk Evaluation /Customer Segmentation
Field Service OrderManagement
© SAP 2007 / Page 39
Collections Management – Overview *)
ExecuteCollectionStrategies
DetermineAgents/Teams
BalanceCapacity
Supported functions• Integration with
Business RulesFramework brings fullflexibility regardingactivity determination
Supported functions• Collections organiza-
tion can be set up inSAP OrganizationalManagement
• Tasks, rules andresponsibilities areused to determine theresponsible team oragent
Supported functions• Capacity for each
activity and teamand/or agent can beset up
• Available capacitiesare taken into accountin activity determina-tion
• Priority assignmentthrough BusinessRules Framework
ManageWork Lists
Supported functions• Release of work lists• Monitoring of
collections progress• (Re-)assignment of
work items• (Re-)prioritization of
work
Process WorkItems
Supported functions• Processing of work
items in theinteraction center
• Promise-to-pay• Collection fact sheet• Collection progress
Issue correspondenceEtc.
Execute Activities:
ICWebClientERP ERP ERP ERP
*) including latest capabilities with ERP6.0/EhP2
© SAP 2007 / Page 40
Determination of the Risk Class
External Score Demographic dataAge of the business relationship
Negative credit eventBusiness volume
Direct debit customer
FI-CA creditworthiness
‘Blacklisted‘ customer
Current liability Division/Business Area
ScoreScore
BusinessPartner
Credit Profile
No Contract
Risk Class
High RiskMedium RiskLow RiskNo Risk
Scoring Rule /Formula
© SAP 2007 / Page 41
Score
Risk Class II
Def
ault
Pro
babi
lity
Very Good Very Bad
10%
20%
30%
• Payment via DirectDebit
• Tight Credit Limit• Security deposit
= Customers
Risk Hedging by customer segmentation andderivation of appropriate activities in sales and collections
Collections According to the Risk Class
Risk Class III
• Reject Contract• Prepaid Meter• Special payment
options
Risk Class I
• Payment on account• Good Payment
Terms
© SAP 2007 / Page 42
Dynamic Activity Determination - Example
Dynamic evaluation of any parameterLinear as well as decision-tree based evaluationsLogic is transparent to the businessConfigurable by the business userNo programming requiredTight integration of manual and automatic activities is possible
NextTreatment: L2
Previoustreatment
L1?
Previoustreatment
L2?
L1 – Earlyreminder
Treatementso far?
High Risk? Medium Risk? ELSE?
Send to legalcollections
Brokenpromises?
Send to externalcollections
Call customer(L3A)
Final contract? ...
Send to legalcollections
Y N
N N
Y
Y
N Y
Y
Y
© SAP 2007 / Page 43
CollectionsTeam 1Collections
Team 1
Collections Embedded in OrganizationalStructure
Multiple independent collectionsorganizations can be set up
Teams or individuals can be determinedbased on business rules
Taking into account absence of agents
Automatic determination and manualintervention by collection manager
Prerequisite for workload balancing
CollectionCenter
Region West
Position:Collection Manager
Sandy
Responsiblefor CollectionsIn Region West
CollectionsTeam 1
CollectionsTeam 2
Position:Team Lead
John
Responsiblefor PrivateCustomers
Position:Collection Agent
CathyPosition:Collection Agent
Fred
For customersrange A-K
Responsible
For bankruptcustomers
Responsible
© SAP 2007 / Page 44
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 45
Market Model and resulting requirements foran ECM
Technique
New generation of metersAdvance Meter Infrastructure (AMI)New types of communication
UtilityUnbundling, competitionAccess to grids without discriminationNew market participants, processes andopportunitiesCooperations, mergers and acquisitions
Information TechnologyIncreased demands on the quality of dataFast availabilityReasonable implementationReliability of investmentsIntegration of heterogeneous systems
Customer
Transparency, reasonable pricesIndividual contractsPersonalised ServiceUse of the Internet
Market
Competition for all customersegmentsSpotmarkets, Markets for futuresand optionsContracts with short validityperiods
© SAP 2007 / Page 46
Market and Company Changes
Transmission company
Customer
Transmission, maintenance,removal and safety / guarantee
of supply
Market, bilateral contractsor in-plant generation
Supply contract forenergy, customer service,
and other services
Customer information,load shapes, payment
consolidation, etc.Distribution
company
Distribution, maintenance,removal and safety / guarantee
of supply
Supplier
Load shapes,measured values,
etc.
Energyprocurement
© SAP 2007 / Page 47
Lifecycle of the Energy Data Management
Profile Data Management
11
33
5544
66
Formula Calculation &Synthetic Profiling
7722
Upload and Store intoEnergy Data Repository
Plausibility Checking& Value Substitution
Processing Energy Data(Complex Billing, Settlement)
Archive Energy Data
Creation ofMaster Data (e.g. Profile Header)
© SAP 2007 / Page 48
IS-U/CCS
Discretedata
EDI / XML
EDI / XML
IS-U
Ene
rgy
Dat
a R
epos
itor
y
PODdata
Loadshapedata
Load shapemeter
AMR
Meterreading
docs
Download
Upload
Data Entry
PrintMeter
Signal
Download
W W W
Integrationto other
applications
ComplexBilling
SchedulingIM
POR
T / EXPOR
T
IMPO
RT
/ EXP
OR
T
ContractA/R & A/P
Invoicing
DeviceManagement
Customer/contract
data
IS-U/EDM within SAP for Utilities
Meter readingby customer
DataEntry
Settlement
IS-U/EDM
© SAP 2007 / Page 49
Data Objects for ECM
Serviceprovider
Service
PoD
Anlage
Device(info record)
Register
Premise
Contract
Contractaccount
Businesspartner
Syntheticprofile
Profile
Connectionobject
Regionalstructure
Serviceprovider
Grid
Regionalstructure
Serviceprovider
© SAP 2007 / Page 50
Consistency Checks
From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.20001:00:00 01:14:5901:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014
From-time To-time Value00:00:00 00:14:59 10.00000:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.20001:00:00 01:14:59 5.02001:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014
From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 9.00000:30:00 00:44:59 10.200
01:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014
From-time To-time Value00:00:00 00:14:59 10.00000:15:00 00:29:59 100.00000:30:00 00:44:59 10.20001:00:00 01:14:59 5.02001:15:00 01:29:59 10.01001:30:00 01:44:59 11.00002:00:00 02:14:59 7.014
Gapcheck
Overlapcheck
Completenesscheck
Tolerancecheck
© SAP 2007 / Page 51
Replacement Value Procedures
0102030405060708090
1. Qrtl. 2. Qrtl. 3. Qrtl. 4. Qrtl.
Ost
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
Missing values
Linear replacement value procedure
0
20
40
60
80
100
1. Qrtl. 2. Qrtl. 3. Qrtl. 4. Qrtl.
Ost
West
Nord
0
10
20
30
40
50
60
70
Minimum valuereplacement valueprocedure
0
20
40
60
80
100
1. Qrtl. 2. Qrtl. 3. Qrtl. 4. Qrtl.
Ost
West
Nord
0
10
20
30
40
50
60
70
Maximum valuereplacement valueprocedure
© SAP 2007 / Page 52
30 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
10 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
50 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Inter-/Extrapolation
02.10.2004
KW
00:00 12:00 24:00
Interpolation
Extrapolation
01.07.2004
© SAP 2007 / Page 53
Formula Profiles
Formulas:SUMSUBTCOPYMULTILIMIT...
Customer-specific calculation algorithmsAny desired hierarchyEvent-controlledSynchronous/asynchronous calculation
© SAP 2007 / Page 54
Complex Billing: Real-Time-Pricing & Time of UseBilling
Demand-dependentlimit*
*) Fixed value, profile, schedule...
Time-dependentlimit 1
Time-dependentlimit 2
© SAP 2007 / Page 55
…and what you will see in the system
On Peak
Consumption
Off Peak
Consumption
On Peak
Consumption
Maximum demand
Off Peak
Consumption
p
t
Off Peak
Consumption
Rate category EDM_01
Period for Sport Agreement (limited)
Spot-Cons.above
Spot-Cons.below
© SAP 2007 / Page 56
Example: settlement by distributor
Aggregated loadprofile per supplier
Energy feeding curve
at grid connection points
Control Area Operator/Settlement Coordinator
3rd party customers
Load profile percustomer and supplier
Distributor
Supplier III
Supplier II
Supplier I
© SAP 2007 / Page 57
Outlook: Portfolio Management Processes
Risk Management
Analytics
SalesProcess
forEnd
Customer
DemandPlanning
ProcurementProcess
SalesProcess
EnergyTrading
Administrationof Sales &
ProcurementPortfolio
© SAP 2007 / Page 58
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 59
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 60
SAP for Utilities – CRM & Billing
DeviceMgmtMeter
Reading
Energy DataRepository
Real TimePricing
PortfolioManagement
Billing
Intercompany Data Exchange (IS-U/IDE)
IS-U/EDM IS-U/CCS
mySAP CRM
Middleware
Marketing Sales Service
InvoicingContractAccounting
Deregulation processes for specific Country and Sector
© SAP 2007 / Page 61
Infrastructure
SAP IDE: Solution for the liberalised EnergyMarket
Processes +
© SAP 2007 / Page 62
SAP IDE: Building Blocks
Infrastructure
Processes•Point of Delivery, Service Provider
•Supply Scenario
•Service Provider Agreement
•Switch document
•Data Exchange
•Monitoring
•Check Framework
•Exception handling framework
•List processing …
•customer win, customer loss
•change of supplier
•grid usage billing
•grid usage bill validation and payment
•change of device
•change of customer data
• …
© SAP 2007 / Page 63
Master Data Model
Serviceprovider
Service
PoD
Installation
Device(info record)
Register
Premise
Contract
Contractaccount
Businesspartnr
Synth.profile
Profile
Connectionobject
Regionalstructure
Serviceprovider
Grid
Regionalstructure
Serviceprovider
© SAP 2007 / Page 64
Example: SAP IDE - Change of Supplier
Switch document
Service provider agreement
Check framework
Period management
Supply scenario
IDOCBOR
BOR
BOR
BOR
BOR
Terminationprocessingworkflow
Supplyregistration
workflow
Change ofsupplierworkflow
Deregulation Process:GRIDUSAGE
Master data
UTILMD
Front officeprocess
Workflowinbox
InfrastructureDeliveredProcess Examples
BOR
Data exchange process
© SAP 2007 / Page 65
Changing to New Market Model:From Incumbent …
2574 1
Grid AccessProvider
Metering PointAdministrator
Metered DataCollector
GridOperator
Metered DataResponsible
TradeResponsible
Party
BillingAgent
CollectionAgent
CustomerService
ResponsibleBalanceSupplier
Engineering &Construction
PlantOperator
MaintenanceEngineering
Plant audit& inspection
PlantDesign
MeterOperator
MeterAdministrator
Metered DataAggregator
. . .Customer
Premise
Generation
Distribution Service Operation
Energy Retail
“Incumbent”The vertically integrated Utility
© SAP 2007 / Page 66
Generator /Energy Trader
1. Plant designer2. Plant engineer &
constructor3. Plant operator4. Maintenance engineer5. Plant auditor &inspector
1 2 3 4 5
DSO
1 2 3 4 5
1. Grid Access Provider2. Grid Operator3. Metering Point Admin.4. Meter Administrator5. Meter Data Aggregator6. Meter Data Responsible7. Meter Data Collector8. Meter Operator
6 7
. . . to Highly „Role“-SpecializedService Providers
Competitive open market
Natural Monopoly(regulated)
Retailer
1 2 3 4 5
1. Balance Supplier2. Trade Resp. Party3. Billing Agent4. Collection Agent5. Customer Service
Responsible
© SAP 2007 / Page 67
... and Market-Specific Rules
2574 1
Energy Market
DSO
Market C
omm
unication
Premise
Customer
highlyautomated
mass processes
Retailer Generator
Trader
© SAP 2007 / Page 68
Roadmap to the European Energy Market
Central South Liberalization Hub(Connecting markets)
Central East Central West
Baltic UK & Ireland
Northern South WestERGEG regional market initiatives (electricity):
time
Today Future(as to ERGEG)
© SAP 2007 / Page 69
Etso/ebIX Role Model
etso and ebIXworking together in order to define a model ofthe European liberalized energy markets.
This model :describes the various roles for the electricity marketand their relationshipsaims at developing a common understanding of themarkets serving as a basis for the development of :
IT data modelbusiness processesexchange of information SAP supports ebIX activities
SAP feeds inputs into ebIXworking groups
© SAP 2007 / Page 70
Grid AccessProvider
MeteringPoint
Administrator
MeteredData
CollectorGrid
OperatorMetered DataResponsible
The Concept of a New Market Role Model
Market
Role
MarketParticipant DSO
© SAP 2007 / Page 71
SAP Solution Approach for Liberalized Markets
SAP for Utilitiesincluding
SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for Utilities. . . . .
SAP Collaborative Services for Utilities (IS-U/IDE)Infrastructure and Toolbox for the adaptation of
SAP for Utilities to regulatory market rules
ERP2005
SAP CRM,IS-U/CCSIS-U/EDM
IS-U/IDEXExtension for compliance to market rules
per country/region gas and electricity
© SAP 2007 / Page 72
SAP for Utilities Compliant to Regulatory MarketRules
SAP‘s offer to local liberalized markets:Compliance for DSO/Retailer/Meter Operator, Gas/ElectricityExtended maintenance including adaptation to future regulatory rules
SAP counts on common initiatives including all customers per marketto define the Add-On solution scopeTerms and Conditions to be defined per market
IDEX-??IDEX-NLIDEX-UK IDEX-GE...
SAP ERP2005including SAP IS-U/CCS, SAP IS-
U/EDM
ERP2005SAP for Utilitiesincluding
SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for UtilitiesSAP Collaborative Services for Utilities. . . . .
SAP CRM,IS-U/CCSIS-U/EDMIS-U/IDE
SAP for Utilities Liberalization Competence Centre
© SAP 2007 / Page 73
1. CRM and Billing1.1. Basics & Meter-to-Bill Process1.2. Sales and Customer Service
2. Customer Financial management2.1. Contract accounting and Integration into the General Ledger2.2. Credit and Collections
3. Energy Capital Management4. Enterprise Asset Management5. Deregulation and Market Communication6. Outlook
Agenda
© SAP 2007 / Page 74
Main Areas of Future SAP Developments
Deregulation
Continuous enhancement of deregulationframework for electricity and gas based onenterprise SOAProcess adoption to European market rolemodel
CompetitiveRetail View
Further usability improvements throughconsequent ICWC process adoptionRetail Template (incl. C&I processes)Energy Ledger
EnterpriseAsset
Management
Reliability Centered Maintenance OptimizationProcessing of Compatible UnitsMultiple Resource SchedulingProcurement of Complex Services
AMI&
Smart Grids
Comprehensive AMI process integrationSmart interfaces to technical MDM / AMIsolutionsSpecification of process requirements forsmart grids
ente
rpri
se S
OA
ado
ptio
nfo
r new
and
exi
stin
g pr
oces
ses
© SAP 2007 / Page 75
Advanced Meter InfrastructureProvides (at least) hourly meterreadings to utility (every day) onreliable basisAutomation of common businessprocesses, e.g. disconnection ofmeter
The Evolution in Metering
Conventional Meter ReadingManual readings/customer selfreadsMDE devicesAutomated Meter Readings(AMR), e.g. C&I customers
Change of Paradigm
Meter Meter
Advanced Metering Infrastructure (AMI)“… refers to systems that measure, collect and analyze energy usage, from advanceddevices such as electricity meters, gas meters, and/or water meters, through variouscommunication media on request or on a pre-defined schedule. “ (Source: Wikipedia)
© SAP 2007 / Page 76
2574 1
Premise(Power-generating)
Smart
Meter
Improvement of Energy Efficiency through“Advanced Metering Infrastructure” (AMI)
Energy Market
DSO
Market C
omm
unication
Customer
Retailer Generator
Traderhighlyautomated
mass processes
© SAP 2007 / Page 77
Smart Grids: Mixture of Central & Virtual PowerPlants
© SAP 2007 / Page 78
Smart Grids: Active Houses
© SAP 2007 / Page 79
Future Energy Infrastructure – An ecosystem
© SAP 2007 / Page 80
SAP for Utilities Liberalization Competence Center
Consists of a dedicated team of SAP experts that bundles know how about theliberalized market
Works closely with customers in deregulated markets around the world toidentify and translate the new specific regional needs
Offers solutions (IDEX Add-Ons) that enhance the SAP for Utilities solution tosupport the new local market rules of deregulated markets
SAP for Utilities Liberalization CompetenceCenter (LCC)
Commitment & Thought Leadership
Henning Kagermann announced at the 6th SAPInternational Utilities Conference (Feb. 2007):
SAP has launched the SAP for UtilitiesLiberalization Competence Center
© SAP 2007 / Page 81
LCC Team
Liberalization Competence Centre (LCC) – TeamStructure
LCC Steering Committee
Program Manager LCC
ExecutionTeam
LCC Program Monitoring
SolutionManagement
BusinessDev.
IBU FieldServices
IBU Sol.Man.
AGS
Consulting
Industry Dev.
LCC GlobalSponsor
CustomDevelopment
IMS
Sales EMEA /IBD
LCC Core Team
SAP Country
© SAP 2007 / Page 82
Co-Innovation with Customers and Partners
Industry ValueNetworks
LeadingIndustry Solutions
Industry AdvisoryCouncils
SAP for Utilities based onSAP’s Business Process
Platform
SAP has 20+ years ofUtility Industry Experience
Industry Thought Leadership
© SAP 2007 / Page 83
SAP Solution Approach for Liberalized Markets
SAP for Utilitiesincluding
SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for Utilities. . . . .
SAP Collaborative Services for Utilities (IS-U/IDE)Infrastructure and Toolbox for the adaptation of
SAP for Utilities to regulatory market rules
ERP2005
SAP CRM,IS-U/CCSIS-U/EDM
IS-U/IDEXExtension for compliance to market rules
per country/region gas and electricity
© SAP 2007 / Page 84
SAP for Utilities Compliant to Regulatory MarketRules
SAP‘s offer to local liberalized markets:Compliance for DSO/Retailer/Meter Operator, Gas/ElectricityExtended maintenance including adaptation to future regulatory rules
SAP counts on common initiatives including all customers per marketto define the Add-On solution scopeTerms and Conditions to be defined per market
IDEX-??IDEX-NLIDEX-UK IDEX-GE...
SAP ERP2005including SAP IS-U/CCS, SAP IS-
U/EDM
ERP2005SAP for Utilitiesincluding
SAP Customer Relationship & Billing for UtilitiesSAP Customer Financial Management for UtilitiesSAP Energy Data Management for UtilitiesSAP Collaborative Services for Utilities. . . . .
SAP CRM,IS-U/CCSIS-U/EDMIS-U/IDE
SAP for Utilities Liberalization Competence Centre
© SAP 2007 / Page 85
AMI@SAP Project
AMI@SAPAMI@SAPProjectProject
ItronItroneMetereMeter
OSIsoftOSIsoft
FPLUtility
CustomerAdvisoryCouncil
© SAP 2007 / Page 86
The SAP for Utilities Enterprise SOA Roadmap
Learn and Trial PhasePrototyping of services and Composite Applications
Execution PhaseService development on a large scale
Service Definition and Execution PhaseService definition and business object modelingDevelopment of key services
Time
Number ofServices
2006
2007
2008
© SAP 2007 / Page 87
Utilities Enterprise SOA RoadmapBusiness Process Platform for Utilities (BPP4U)
Advanced MeterInfrastructure
services to allow new innovativeand highly automated meter
processes
Market Communication
services to enable thecommunication and transactionexecution between the different
company roles
CustomerCommunication
services allowing innovative andcompetitive products and
services
Bill to Cash
services ensuring highly flexiblecomposite applications offering
new services and improvecash/flow
Integrated NetworkAsset Register
basic interoperability betweenGeographic Information
Systems (GIS) and the IndustrySolution SAP Utilities
5 Enterprise Service Bundles with 300+ enterprise services
© SAP 2007 / Page 88
Retailer GenerationGasFull ServiceSuppliers &
PartnersCustomers &
ChannelsGeneration Transmission &
DistributionMeter Operation Retail & Services
Enterprise Management & Support
Plant Life Cycle Management
Grid Life Cycle Management
Resource ManagementMeter Reading
Services
Energy Capital Management
Selling of Energy and Services
Customer Service Management
Billing of Energy and Services
Customer Financials Management
Collaborative Services & Intercompany Data Exchange
Suppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & ServicesSuppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & Services
Enterprise Management & Support
Plant Life Cycle ManagementPlant Life Cycle Management
Grid Life Cycle ManagementGrid Life Cycle Management
Resource ManagementResource ManagementMeter Reading
ServicesMeter Reading
Services
Energy Capital ManagementEnergy Capital Management
Selling of Energy and ServicesSelling of Energy and Services
Customer Service ManagementCustomer Service Management
Billing of Energy and ServicesBilling of Energy and Services
Customer Financials ManagementCustomer Financials Management
Collaborative Services & Intercompany Data ExchangeCollaborative Services & Intercompany Data Exchange
Suppliers & Partners Customers & ChannelsTransmission & Distr ibution Meter Operation Services
Enterprise Management & Support
Grid Life Cycle Management
Resource Management
Meter Reading Services
Energy Capital Management
Customer Service Management
Billing of Energy & Transmission Services
Customer Financials Management
Collaborative Services & Intercompany Data Exchange
Suppliers & Partners Wholesale & RetailersGeneration
Enterprise Management & Support
Asset Life Cycle Management
Resource Management
Energy Capital Management
WaterSuppliers & Partners Customers & ChannelsExploitation & Preparation Transport & Distr ibution Retail & Services
Enterprise Management & Support
Plant Life CycleManagement
Grid Life CycleManagement
Resource Management
Meter ReadingServices
Customer ServiceManagement
Billing of W ater& Services
Customer FinancialsManagement
Selling of W ater&Services
Suppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & Services
Enterprise Management & Support
Selling of Energy & Services
Meter ReadingServices
Energy Capital Management
Customer Service Management
Billing of Energy & Services
Customer Financials Management
Collaborative Services & Intercompany Data Exchange
Suppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & Services
Enterprise Management & Support
Suppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & ServicesSuppliers &Partners
Customers &Channels
Generation Transmission &Distribution
Meter Operation Retail & Services
Enterprise Management & Support
Selling of Energy & ServicesSelling of Energy & Services
Meter ReadingServices
Meter ReadingServices
Energy Capital ManagementEnergy Capital Management
Customer Service ManagementCustomer Service Management
Billing of Energy & ServicesBilling of Energy & Services
Customer Financials ManagementCustomer Financials Management
Collaborative Services & Intercompany Data ExchangeCollaborative Services & Intercompany Data Exchange
BPP4U: marktrollen-spezifische Ausprägungder SAP for Utilities Plattform
© SAP 2007 / Page 89
mySAP™ ERP 2005 –Stable Foundation for the Next 5 Years
2006 2007 2008 2009 2010
mySAP ERP 2005
SAP NetWeaver
Enhancement Packages
2005
Enhancement packages delivercontinuous innovation withoutupgrades and can include …
Technical and functional enhancementsNew enterprise servicesComposite applications
2011
Nextrelease
© SAP 2007 / Page 90
1. Market Drivers and Future Vision2. SAP for Utilities Development Roadmap until 20103. New SAP for Utilities/CRM Strategy
Agenda
© SAP 2007 / Page 91
On course to retail success with SAPfor Utilities
COMPREHENSIVESIMPLE FLEXIBLE
SAP for Utilities - CRM Development Roadmap
“CRM 7.0”Extended sales & serviceReal-time offer managementImproved handling of B2BcontractsNew Enterprise ServicesSupports new customer-relatedprocesses within an AdvancedMeter Infrastructure like smartproducts for remote disconnect
Available ~ Q4/2008
CRM 2007Customer Service&Salesin the Interaction Center - B2Cfor key account managers - B2BEnhanced Self ServiceCapabilitiesMarketing andCampaign AutomationEnterprise Services for
Customer CommunicationMarket communicationAvailable now
© SAP 2007 / Page 92
Our plans for the future
“Striving for the ultimate sales machine”Deep integration of real-time offer managementMuch improved design and deployment of energy products/bundlesBetter integration into marketing for campaigns and promotionsSupport of new “smart products” for retailers operating in an AMIenvironment that
are aware of additional smart meter capabilitieslike load limitingsupport load management programssupport prepay products w/o special prepay meters
Integration of CRM into the portfolio management processPlanned 2009
COMPREHENSIVESIMPLE FLEXIBLE
SAP for Utilities - CRM Development Roadmap
© SAP 2007 / Page 93
Industry-Specific CRM-Integration
BusinessWarehouse
Portal
CRM
mySAP Utilities/ERP
Kalkulationstools, Office, CTI etc.
Call Center
© SAP 2007 / Page 94
ComprehensiveBest-in-class CRM with the power of the back office
End-to-endProcesses
Marketing, sales,service and all customerinteraction channels
End-to-end processes
Industry solutions
Self-service InteractionCenter PartnerField
Multi-channel
© SAP 2007 / Page 95
Thank you!