Delivering Real-Time Business Value for Utilities

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This deck is a SoH Executive positioning document in 3 parts for Utilities

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Delivering Real-Time Business Value for Utilities

  1. 1. July 2013 Delivering Real-Time Business Value for Utilities SAP Business Suite Powered by SAP HANA Public
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public A smart digital utility orchestrates data to provide innovative services and business models Data orchestration layer Smart digital utility Cost, revenue and billing tracking Customer and user data Data storage Data collectionData analytics Monitoring and tracking Asset management Market com- munication Security Dynamic tariff and pricing models Energy mgmt. for infrastructures Demand-side I ntegration Mobile services (bill shock) Mobility services Prosumers and virtual power plants Capacity mgmt. Grid and data services Investment operations and contracting Controllable local systems Enterprise services (energy footprint, sustainability) Trading and port- folio services Service provider Social media Energy storage services Market service layer
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public Manage the energy revolution in real-time Maximize production without compromising safety or compliance  Optimize asset performance with streamlined and integrated processes  Enhance visibility into asset performance to improve maintenance efficiency and proactively manage risk and safety Optimize your asset investments in distribution  Provide deep insight into information across multiple data sources to adopt state-of-the-art maintenance strategies that ensure grid reliability  Support the decision-making of capital planning and central treasury exposure management for network expansion Deliver greater value in supply while consistently reducing the cost  Enable timely and accurate reporting of financial and operational performance  Enable call centers and online services to deep- dive into high volume data for better customer service.
  4. 4. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public SAP Business Suite powered by SAP HANA The next-generation business platform Real-time business In-memory Business transactions Digital connections Collaborative business CloudSocial Big DataMobile One platform bringing it all together Advanced analytics
  5. 5. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Industry value map for utilities Customer Experience Multichannel Marketing Sales and Customer Service for Residential Customers Sales and Customer Service for Commercial and Industrial Customers Energy Supply Chain Optimization Fuel Supply Chain Management Metering Service Parts Planning and Logistics Energy Portfolio Management Operational Efficiency for Plants and Grids Asset Portfolio and Commissioning Asset Visibility and Performance Asset Operations and Maintenance Operational Risk Management Energy Revolution Management Smart Meter Data Management and Operations Demand Side Management Energy and Environmental Resource Management People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Bill-to-Cash Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Industry value map for utilities Real-time value for key end-to-end processes Customer Experience Multichannel Marketing Sales and Customer Service for Residential Customers Sales and Customer Service for Commercial and Industrial Customers Energy Supply Chain Optimization Fuel Supply Chain Management Metering Service Parts Planning and Logistics Energy Portfolio Management Operational Efficiency for Plants and Grids Asset Portfolio and Commissioning Asset Visibility and Performance Asset Operations and Maintenance Operational Risk Management Energy Revolution Management Smart Meter Data Management and Operations Demand Side Management Energy and Environmental Resource Management People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Bill-to-Cash Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration Highest real-time business value for utilities 2 4 1 5 6 3
  7. 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Customer Cases Japanese technology firm • SAP HANA products and SAP Business Suite on SAP HANA • Automated reporting • Inventory optimization • Predictive analytics • Inventory visibility European technology firm • SAP Business Suite on SAP HANA • Real-time inventory • Real-time material planning • Marketing and sales • Fast financial close Leading U.S. technology firm • SAP HANA Platform and SAP Business Suite on SAP HANA • Variable margin analysis • Customer service excellence • Opportunity order analysis • Predictive analytics • Supplier network traceability • Predictive scoring $25 million benefit over five years Annual benefit €85 million Five-year net value $152 million
  8. 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover the customer-specific business improvement areas and quantify value potential.  We suggest such a workshop with your line-of-business and IT experts.  As starting point, we recommend a performance and usage analysis of your current system.
  9. 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you
  10. 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Customer case: utilities provider in Russia Summary validated scenarios Feasibility Businessvalue Legend LowHigh Low High HR reporting on SAP HANA (€150k) Annual revenue: €2 billion Financial reporting on SAP HANA (€250k) SAP Business Suite on SAP HANA SAP HANA products SAP HANA Platform Phase – deployment road map 1 Phase 1 HR reporting on SAP HANA (Increase business user productivity) Financial reporting on SAP HANA (Increase business user productivity) SAP HANA use cases mapped to industry value map end-to-end solutions
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public Customer case: utilities provider in Russia SAP HANA Platform 400 0 50 100 150 200 250 300 350 400 450 2013 Phase 1 Costs SoH Applications Platform Anything built on the platform that is customer specific - new business processes and business models SAP NetWeaver BW on SAP HANA, high performance apps (HPAs), apps powered by SAP HANA – mapped to IVM E2E solutions € Currently available functionalities (SP0, 1, 2); 23 scenarios mapped to IVM E2E solutions; and planned functionalities (All of the end-to-end solutions on the industry value map are in scope.) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA SoH = SAP Business Suite on SAP HANA Annual benefits, SAP HANA Platform Annual benefits, applications powered by SAP HANA: €400k Annual benefits, SAP Business Suite on SAP HANA Estimated deployment costs Total transition cost Based on actual SAP customer engagements
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. Financial reporting on SAP HANA Utilities Business context and goals  This large utility provides heat and hot water in Moscow and the Moscow region. Business challenges  Existing environment requires effort to collect accounts receivable (AR). There is a need to optimize the process and make it more transparent and fast. Process innovations  Centralized reporting on SAP NetWeaver Business Warehouse with a drill-down to specific accounts Contribution of SAP HANA  Meets requirements for performance and large volume of data Value drivers/KPIs  Business user productivity Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Utilities – financial performance management Value potential 2 Feasibility 3 Low High 1 5 Low High 1 5
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. HR reporting on SAP HANA Utilities Business context and goals  This large utility provides heat and hot water in Moscow and the Moscow region. Business challenges  Current reporting time for payroll and employee statistics (more than 20,000 employees) is slow, which impacts the productivity of HR function Process innovations  Centralized payroll processing for 20,000 employees based on SAP HANA technology – faster, cuts down on errors, and requires fewer calculating resources Contribution of SAP HANA  Meets requirements to performance and large volume of data Value drivers/KPIs  Business user productivity Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Utilities – core human resources and payroll Value potential 2 Feasibility 3 Low High 1 5 Low High 1 5
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Reference utilities customer Summary validated scenarios (combined findings) Feasibility BusinessvalueMedHigh Med High HR reporting on SAP HANA Sales and operational analytics on SAP NetWeaver BW on SAP HANA Predictive maintenance Financial analytics on SAP NetWeaver BW on SAP HANA Finance reporting on SAP HANA Phase – deployment road map 1 Short term EAM: Predictive maintenance: Predictive maintenance for assets and facilities reduces downtime and parts inventories while increasing asset utilization. CRM: Sales and operational analytics: Sell what is available, merging information from multiple LOBs in one real-time dashboard. EPM: Financial analytics: Get real-time visibility into profitability by segment and individual customer. 2 Medium term FIN: Finance reporting: Existing environment requires big efforts to collect AR data. There is a need to optimize the process and make it more transparent and fast. HCM: HR reporting: Current reporting time for payroll and employee statistics (more than 20,000 employees) is slow, which impacts the productivity of the HR function. SAP HANA Platform: customer specific SAP HANA products: SAP NetWeaver on SAP HANA , HPAs, apps powered by SAP HANA SAP Business Suite on SAP HANA SAP HANA use case Legend SAP Business Suite on SAP HANA SAP HANA products SAP HANA Platform SAP HANA use cases mapped to industry value map end-to-end solutions
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public SAP Business Suite powered by SAP HANA Business value for each end-to-end process/implementable step Line of business End-to-end process/implementable step Finance Financial performance management  Planning, budgeting, and forecasting  Profitability and cost analysis  Financial and managerial reporting Accounting and financial close  Accounting and entity close Collaborative financial operations  Receivables management  Payables management  Shared service framework Enterprise risk and compliance  Access control role analytics Human resources Core HR and payroll  Payroll processing  Effective shared services delivery Time and attendance management  Time and absence calculation Workforce planning and analytics  Transactional analytics Procurement Operational procurement Manufacturing Production Planning  Material requirement planning Efficient manufacturing operations  Global plant performance management Research and development and engineering Enterprise portfolio and project management  Portfolio management (portfolio and project management)  Project management (portfolio and project management)  Project management (project system) Supply chain Demand driven supply chain Supply chain monitoring Warehouse management Sales, service, marketing Marketing Definition and execution of sales strategy, collaborative order to cash, collaborative sales force automation  Sales planning and monitoring (CRM), collaborative pipeline management, customer engagement intelligence, audience discovery and targeting Sales Multichannel marketing management, marketing operations, marketing demand management  Audience discovery and targeting, customer insight and segmentation, campaign management, marketing analytics and performance management Service Multichannel customer service • Contact management with interaction center Service Asset operations and maintenance • Asset planning and scheduling Asset management Asset operations and maintenance  Asset planning and scheduling
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Asset operations and maintenance Asset planning and scheduling  Maintenance scheduling consumes a great deal of time  High amount of master data influences performance of data maintenance  Manual and error-prone process of preselection of maintenance plans  Potential to miss necessary objects for maintenance calls  High number of maintenance plans that need to be scheduled frequently leads to a weekly scheduling scheme  Accelerated mass transactions  Instant analysis on top of transactions  Preselection of due plans, speeding up the process significantly  Real-time analytics on all data, including machine sensor information  Scheduling of all maintenance plans within a specific timeframe  Planning several times a day (instead of once a week) results in up-to-date scheduling information in maintenance operations  Faster response times leads to more accurate maintenance scheduling Increase asset utilization and reduce unplanned asset downtime Maximize Gain asset uptime up-to-date scheduling information on maintenance operations With SAP Business Suite on SAP HANA
  18. 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Asset portfolio and commissioning (1/2) Business value for portfolio management (SAP Portfolio and Project Management)  Fact-based go/no-go decisions require real-time information on the status of the running projects and the project proposals. Analysis for large portfolios in the portfolio dashboards is time consuming, leading to lack of transparency.  Faster access to decision-making information such as status, timeline, and financials in dashboards  Accelerated comparison of running projects and proposals in the dashboards Increase transparency for decision-making Improve speed of aggregating financial information  Aggregation of financials, such as actual or planned cost commitments along the investment hierarchy, takes a long time for large portfolios. Outdated information on the investment increases review efforts.  Manual editing of standard financial KPIs such as net present value and internal rate of return adds additional tools and manual effort for portfolio managers  Speeding up of aggregation of financials along the investment area hierarchy  Calculation of most important KPIs based on values from financial planning, removing manual calculation With SAP Portfolio and Project Management on SAP HANA
  19. 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Asset portfolio and commissioning (2/2) Business value for project management (SAP Portfolio and Project Management)  Project members experience long waiting times when starting the project and task dashboards. This reduces user productivity when working on several projects and on tasks across projects.  Updates on multiple tasks are inefficient and time consuming as project team members confirm tasks one-by-one to reduce waiting times  Searching for documents across projects takes a very long time for large project portfolios  The process of finding projects, tasks, and phases by responsible project member is slow  Faster access to tasks and projects  Accelerated access to project, task, and checklist items dashboards  Ability of project team members to confirm times, status, and dates and to attach documents for several tasks at once  Increased user productivity  Accelerated search for documents  Ability to quickly find projects or tasks by responsible project member Increase user productivity Reduce Improve time for task confirmation Search for documents and project elements With SAP Portfolio and Project Management on SAP HANA
  20. 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Procurement and order collaboration Business value for operational procurement  Missing real-time insight into operational procurement reporting  Inability to dynamically create operational procurement-related reporting in a modern user interface  Slow and costly paper-based processes  High transaction costs  Long running transactions while posting documents with high volume of line items  Frequent errors, yielding to maverick spend  New configuration options for procurement analysis  Modern and easy-to-consume user interface  Complete visibility into end-to-end procurement activities  Real-time insight and easy-to- manipulate information  Accelerated long-lasting processing of purchasing documents Increase transparency Lower Increase procurement operations cost process effectiveness With SAP Business Suite on SAP HANA
  21. 21. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Asset visibility and performance Business value for material requirements planning (MRP)  Decisions often based on periodic MRP runs and outdated information; process done in batches  Inability to replan quickly if conditions change due to long run times. Prediction of inventory coverage for critical parts is difficult.  Inability to replan if conditions change during the planning horizon due to long run-times  Faster replanning allowing more frequent MRP runs in shorter cycles  Instant reaction to demand changes and updates to the supplier  Demand information propagated faster through the supply chain  A new interactive work distribution dashboard provides supervisors with actionable insights into the workload of their teams and employees  Better synchronized material demand and supply planning with reduced bullwhip effect Reduce out of stocks by 36% Decrease Limit inventory and safety stocks by 29% bullwhip effect With SAP Business Suite on SAP HANA
  22. 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Sales and customer service for residential customers Business value for contact management with interaction center  To successfully resolve customer issues, companies need to be able to quickly locate the right experts or resources within the organization, whether those experts work inside the contact center or elsewhere  Managers and supervisors lack actionable reporting and visibility into the workload of their teams  High volume of customer records and interactions results in increased search times and greater difficulty locating specific customer records  With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the most suitable employee roles  A new interactive work distribution dashboard provides supervisors with actionable insights into the workload of their teams and employees  Searches in the interaction center, including account searches, interaction history, and the customer fact sheet, are significantly faster Decrease average handling time Improve Reduce service-level agreement compliance service cost With SAP Business Suite on SAP HANA
  23. 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (1/3) Business value for planning, budgeting, and forecasting  Planning performance limited to OLAP, staged cubes for transactional and master data  Data load performance is driven by the amount of data extracted from SAP Business Suite  Reporting, loading, and retraction performance limits planning iterations  Drilldown within OLAP cube, and drill-through to SAP Business Suite and OLTP data within standard times  Seamless replication of master and transactional data from SAP Business Suite  Availability of more granular data to support planning  Big Data challenge is negated, and allows for faster extract and DSO activation times  Iterative planning and real-time simulation are supported through improved performance  Improved performance for drilldown (expand) and consolidation (collapse)  Fast drill-through and live view of transactional data in SAP Business Suite Improve service level performance Reduce Minimize cycle times and manual effort operating costs With SAP Business Suite on SAP HANA
  24. 24. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (2/3) Business value for profitability and cost analysis  Data latencies and processes delays impact the ability to react to issues and opportunities  Lack of data depth and user self- service affect internal decision making  Long-running processes  Time-intensive data queries  Mostly manual data analysis  Substantial amount of time and effort on processes that do not directly add value  Suboptimal resource efficiency and effectiveness  Timely execution of critical business processes supports decision making and increases the ability to act swiftly (insight-to-action) in dynamic market environments  Critical transactions and calculations run quickly  Response times on queries are instant  Prebuilt analytics automate the data analysis process  Leaner processes from data capture through data analysis  Increased productivity through process-optimized analytics and mobile support Improve service level performance Reduce Minimize cycle times and manual effort operating costs With SAP Business Suite on SAP HANA
  25. 25. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 26Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (3/3) Business value for financial and managerial reporting  Risk of noncompliance due to unfulfilled (overruns in) audits  A lot of data; decision-relevant information not readily available  Data analysis not supported or automated  Long-running batch jobs/reports  Time-intensive data analysis  Large number of time-consuming, and non-value-added processes required to access and provide accurate, up-to-date information  Timely execution of compliance- relevant validation tasks  Increased end-user satisfaction (accurate, detailed, visualized, timely, and actionable information)  Acceleration of key critical-path processes and reports  Instant response time on most data analysis queries  Elimination of workarounds and data latencies  End-user data analysis through self- service means Improve service level performance Reduce Minimize month-end closing time operating costs With SAP Business Suite on SAP HANA

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