Presentation by Pete Massey from National Grid UK on Esri European User Conference.

1. Esri European User Conference
26th October 2011, Madrid, Spain
Right People, Right Process, Right Technology
Pete Massey, Director,
Gas Distribution Transformation
National Grid plc

2. Disclaimer
“The information contained in this presentation has been compiled
by National Grid Group from sources believed to be reliable, but no
representation or warranty, express or implied, is made by National
Grid Group its affiliates or any other person as to its accuracy,
completeness or correctness. Accordingly, National Grid Group or
their agents, servants or contractors do not accept any liability for
any losses arising under or in connection with this information.
This limit on liability applies to all and any claims in contract, tort
(including negligence), misrepresentation (excluding fraudulent
misrepresentation), breach of statutory duty or otherwise. This limit
on liability does not exclude or restrict liability where prohibited by
the law.”

3. Agenda
Who we are…
The Case for Change…
Technology Innovation: SAP/ESRI design integration
The Transformation Journey…
Lessons Learnt so far…

4. Gas Distribution Transformation
National Grid – who we are…
UK and
based in the 27,000 employees 60% work One of the world’s largest
northeastern US in the US; 40% work in the UK Investor -owned utilities
£30bn asset base £3.6bn operating profit £22bn investment (2010-2015)
We own the high-voltage electricity transmission system in England and Wales and operate the
system across Great Britain. We own and operate the high pressure gas transmission
system in Britain, and Britain’s largest gas distribution business delivering gas to almost 11 million homes
and businesses. In the US we distribute electricity to 3.4 million customers and we distribute natural
gas to 3.5 million customers
unregulated businesses: liquefied
generation plants with a
19m industrial, commercial and natural gas(LNG) importation,
capacity of >4,000 mW
domestic customers land remediation, metering and
interconnectors
A dedicated electricity and gas company…

5. Our core purpose…
…to connect people to the energy they use everyday

6. Our current world…
FORMER
PUBLIC
SERVICE
NEW
>20 YEARS
REGULATORY
PRIVATE
INCENTIVES
COLLAB-
UNBUNDLING
ORATIVE
WORKING
DISENGAGED ACQUISITION
WORKFORCE MERGERS
POOR IT OLD
PROJECT MULTIPLE
MANAGEMENT IT
SYSTEMS
BEHIND THE
COMPETITON

7. The case for change
ASPIRATION
GD IDNs
Performance Efficiency – opex
Challenge Best in
Poor £285M* £230m
class
Efficiency - totex
Poor £75 £71 Best in
FRONTIER class
Customer
Poor Best in
7.5 7.9 8.3
class
Safety
Poor Best in
0.12 0.05 class
People
Poor 68% 78%
Best in
class
Poor customer
satisfaction

8. Simplifying the systems landscape
Existing patchwork Landscape
L3 C apa bilities Em er ge ncy M aintena nc e R epair Cus tom e r Drive n
C ons truc tion Construction
A ss et Ma nagem ent
A P1 D eve lo p & Ma na ge A sset Stra te g y & P olicy Offline MIMS 4 .3 Offl ine Offli ne Offl in e
IM5 D eve lo p Inve stme nt Strate gy & Pl an Offline Offli ne Offl ine Offli ne Offl in e
IM7 P ost In ve stmen t A pp raisal N /A Offli ne Offl ine Offli ne Offl in e
AD 4 In vestme nt Ap pro val / Sa ncti on Offline Offli ne Offl ine Offli ne Offl in e
AD 5 Te chn ica l Ap pro val / Sa nctio n N /A Offli ne N/A Offli ne Offl in e
AD 6 Ge ne rate D es ign N /A N /A N/A MP R S, M RDST QS AQ S TE AR , N GS
P11 U nd erta ke R eg ula tory R ep ortin g EE&MW
&MW S AP BO MIMS 4 .3 QB Ntw ks S AP BO T EA R MP RS, M RD S T QS AQ S TE AR , C MS
P12 P rog ramm e Ini ti atio n N /A MIMS 4 .3 N/A S TOR M S T EA R, MRD ST QS AQ S TE A R, STO RM S
Work De liv er y
RM 3 M an age Pe rmits & No tifica tion s ETON (ma nu al ) Offli ne ETON S TORM S E TON S TORMS E TON ST ORMS
RM 5
RM 6
M an age Re sou rce R eq ui rem en ts
D eve lo p Inte gra te d Wo rk an d R eso urc e Pla n
Offline
E&MW
QB MAR S
MIMS 4 .3
S TO RM S
Offl ine
Offli ne
Offli ne
Offl in e
Offl in e
To be Landscape
RM 7 M an age Integ ra te d Wo rk & Re sou rce Pl an Offline MIMS 4 .3 WA M - QB QB Ntwk s ST OR MS QB Ntwk s ST ORMS
RM 9 M an age Ma te ria ls, Plant, Equ ip me nt & Lo gis tics SAP B O Offli ne S AP BO DODS SA P BO D ODS SAP B O D OD S
R M10 S che du le Wo rk & Re sou rce s E &MW - JIS MIMS 4 .3 S TORMS QB Off P rima vera WA M C ons truc tion Cus tom er Dr ive n
L3 C apa bilities Em er ge ncy M aintena nc e R epair
R M11 D isp atch W ork & R eso urce s E &MW - JIS QB MAR S S TORMS QB QB N etw orks Constr uction
A ss et Ma nagem ent Ne two rks
Off QB
WE4 E xecu te Work E &MW - JIS QB MAR S QB A P1 orks evelo p & Ma na ge QB Ne Strarks y & P oli cy
N etw D A sset two te g QB N etw orks AP
S SAP SAP S AP SAP
WI 9 In cid en t Ma na ge me nt Offline N /A ST ORMS IM5 D evelo p Inve stme nt Strate gy & Pl an
QB N/A S AP SAP SAP M RD ST, SA P SAP
N /A
WE12 P erform an ce Ma na ge me nt B usi ne ss Ob je cts QB MAR S MIMS 4 .3 IM7 M
WA P ost In ve stmen t A pp raiWAM
sal WA M N /A SAP SAP SA P, GIS SAP
WE15 M an age Work C lo sure & In form atio n C ap tu re E&MW - JIS/FA QB MAR S MIMS 4 .3 QB Ne t AD 4 S TOR M S nt Ap pro val et Sa ncti on OR MS
In vestme QB N / ST QB N et STS AP
ORMS SAP SAP S AP SAP
C us tome r AD 5 Techn ica l Ap proval / Sanctio n N /A SAP N/A SA P, GIS SAP, GIS
C M01 R ece ive Cu stome r Co nta ct E &MW - E CH P Offli ne AD 6
N/A Ge ne rate D es ign lliances &
A
EC HP QS, A QS S AP/A
N BO N /A N/A SA P, GIS SAP, GIS
Coaliti ons *
C M02 M an age Enq uiry E &MW - E CH P S hare p oin t Sha rep oi ntU nd erta ke R egula tory R ep ortin g
P11 Offli ne Offl in e SAP BI S AP BI SAP BI SAP BI SAP B I
C M04 C rea te / In itia te Cu stom er Qu ote N /A N /A P12
N/A P rog ramm e Ini ti atio n N /A Q S, AQS S AP/A
N BO SAP N/A S AP SAP
C M05 C rea te o r U pd ate C us to me r W ork E&MW N /A N/A Work De liv er y N /A Q S, AQS S AP BO
C M06 M an age Co mpl aint S ha rep oi nt S hare p oin t Sha rep oi ntM an age Pe rmits & No tifica tionnt
RM 3
S ha rep oi s Sha rep oi nt ETON
SAP, SAP, ETON SA P, ETON SAP, ETON SA P, E TON
RM 5 M an age Re source R eq ui rem ents SA P, S& D SAP, S&D S AP, S &D SA P, S& D SAP, S&D
C M07 M an age Outbo un d C usto mer C om mun ic atio ns E&MW Offli ne Offl ine Lotu s No te s DB Q S, AQS S AP BO
RM 6 D evelo p Integra te d Wo rk an d R eso urc e Pla n
C M08 A nal yse to Imp ro ve C ustom er Se rvic e Offline Offli ne Offl ine Offli ne Offl in eSA P, S& D SAP, S&D S AP, S &D SA P, S& D SAP, S&D
RM 7 M an age Integ ra te d Wo rk & Re sou rce Pl an SA P, S& D SAP, S&D S AP, S &D SA P, S& D SAP, S&D
RM 9 M an age Ma te rials, Pl ant, Equ ipme nt & Lo gis ti cs S AP SAP SAP S AP SAP
R M10 S chedule Wo rk & Re sou rce s SA P, S& D SAP, S&D S AP, S &D SA P, S& D SAP, S&D
R M11 D isp atch W ork & R eso urce s S& D (Bo B) S&D (BoB ) S&D (Bo B) S& D (Bo B) S&D ( BoB)
WE4 E xecu te Work Mob il e (BoB ) Mo b ile ( BoB) Mo bil e (Bo B) Mob il e (BoB ) Mo bi le (Bo B)
WI 9 In cid en t Ma na ge me nt SA P, S& D N /A S AP, S &D N /A N/A
WE12 P erform an ce Ma na ge me nt SAP BI S AP BI SAP BI SAP BI SAP B I
WE15 M an age Work C lo sure & In form atio n C ap tu re S AP, Mob ile (BoB ) SA P, Mobi le ( BoB) SAP, Mob il e (Bo B) S AP, Mob ile (BoB ) SAP , Mo bi le (B oB)
C us tome r
C M01 R eceive Cu stome r Co nta ct S AP CR M SA P C R M SAP CR M S AP CR M SAP C RM
C M02 M an age Enqui ry S AP CR M SA P C R M SAP CR M S AP CR M SAP C RM
C M04 C rea te / In itia te Custom er Qu ote N /A N /A N/A N /A SAP C RM + SAP
C M05 C rea te o r U pd ate C us tome r W ork S AP CR M N /A N/A N /A SAP C RM + SAP
C M06 M an age Co mpl ai nt S AP CR M SA P, C RM SAP, CR M S AP, CR M SAP , C RM
C M07 M an age Outbo un d C usto mer C om mun ic atio ns S AP CR M SA P, C RM SAP, CR M S AP, CR M SAP , C RM
C M08 A nal yse to Imp ro ve C ustom er Se rvic e S AP CR M SA P, C RM SAP, CR M S AP, CR M SAP , C RM
…a proven SAP backbone with selected best of breed applications reduces 40 core 9
systems to 4 to create a simplified, standardised and integrated systems landscape…

9. UK Gas Distribution Transformation
...step change in ...make life simpler ...make us more ...build robust
customer service for our people productive process & controls
Complex business
Large scale IT investment change journey
Depth of Solution
(Business Business
Functionality) Performance
/Perceptions Our controlled change
100% Uncontrolled change
Planned
Performance
Release 3
Fear Performance
Enthusiasm risk
50%
Release 2 Under
Realisation Performance
Depression
Release 1
Breadth of Anger Understanding
Solution
(Software
50% 100% Components) Time
... Our comprehensive approach to business engagement underpins the design and delivery of benefits.
Our deployment strategy reduces the technology risk by focusing Release 1 to core foundational
components and progressively embedding business improvement through Release 2 and 3…

10. UK Gas Distribution Transformation
...delight our ...make life simpler ...make us more ...build robust
customers for our people productive process & controls
Complex business
Large scale IT investment change journey
Largest single GD capex investment >35,000 types of legacy • A journey that taps to the core
>£200m delivers annual data rationalised to 5,000 on
of our established culture and
performance
benefits of >£39m new systems
• 4500
employees to successfully
engage and train
7 vendor partners operating as one 40m data items to be cleansed • Implement new process centric
team across 5 countries and 13m new data items to be
organisation and create new
(18 hours/day at peak) created Customer Centre
• Developour process skills and
>50,000 tests to be leadership capabilities
Up to 500 staff onshore and
offshore undertaken • Deliver
over 100 innovative
business engagement events
… Our comprehensive approach to business engagement underpins the delivery of benefits.
Our deployment strategy seeks to reduce the technology risk by narrowing the focus of Release 1
to core foundational components and enabling an early release of the emergency solution…

11. SAP- centric solution with integrated geospatial
planning, scheduling and mobile applications
Our Customers
Customer Centre Solution
• Telephony
• Intelligent Call Handling
• Contact Management
Integration to Specialist systems:
• Highway Authority Noticing & Permits
• Network Analysis
• Mains Risk Score Management
Our Processes
Enterprise Asset Management (EAM)
• Asset & Work Management Geographical Information System (GIS)
• Customer Contact Management • GIS Desktop
• Projects & Portfolio Management • GIS Designer
• External Partner Access (Portal) • GIS Mobile (Field Solution)
• Document Management • LocatorHub (Address Management)
• Management Information
• Back Office (HR, Finance, Procurement)
Advanced Work Scheduling &
Planning
• Work Forecasting & Planning
Our Field Force
• Work Scheduling Smart
Mobile • Work Location Travel
Work Mgt • Work Analytics (GPS)
Mobile GIS
3G
GPRS
GSM

12. SAP Central Hub with ClickSoftware
Dynamic auto-scheduling for optimisation of resources
Visibility of all work and ability to bulk issue and drip-feed work
Integration with Smart Travel via ClickLocate provides real time
geographical view of all work and vehicles

13. Unlocking knowledge using GIS
Graphical information layers and analysis
Asset and Work Management performance online
Linear assets mastered in GIS and replicated in SAP
Work creation from either SAP or ESRI
Single address management across all applications

14. Innovation in the Design Process
Old Process
1 2 3 4 5 6 7 9
Manually Issue Subdivide Recreate
Manual Capture Job Manually
Create Work pack into scheme
paper Build Record digitise in
Work to parcels templates
design & Paper core GIS
Orders Alliance of work in CAD
‘As Built’
8
New Process
1 2 3 4 5 6
Subdivide Promote
Print Issue
into design to
Create design polygon, design assets design SAP Build
parcels ‘As Built’
using CU’s, create engineering jobs templates Work Order
of work on GIS
- Electronic re-design
- Electronic Design based upon CU’s as required -Work orders -Removes manual
automatically digitisation
- Identification and creation of service jobs created using
the design -QA check only
- Improved estimates & tracking of costs
- Automated splitting of pipes

15. ArcFm Designer –
Create design polygon and select asset to be replaced…

16. ArcFm Designer –
Design new asset (Cyan Line) insertion route in existing pipe

17. ArcFm Designer –
Use Address Layer to identify affected services

18. ArcFm Designer –
Postcode and NRSWA notice period automatically from spatial layer

19. ArcFm Designer –
Design sent to SAP and Work Orders automatically created in SAP

20. ArcFM Designer – Scheme Template
Changes updated ‘as built’ and then promoted to final asset record.

21. Engagement from the start of design
July 2009 - March 2011 Jan 2010 - Oct 2012
Design
• Design Theatres • ‘man-in-a-van’ Testing
• Deep Dive and End to End • Get Connected
• Mobile Screen Design (HCI) • Supervisor training
• Acceleration Weeks • Individual training
• Offshore detailed design • Health Checks
• Partner Collaboration • Post Go-Live Support
• Mobile screen review
• How we should do a great job? • Detailed design output
• Apply the ‘customer lens’… • Learning….
• Verify controls & change impacts

22. Scale of the transformation
Implementing a new process
centric operating model
Developing our talent and
senior succession plans
hardware
Leadership Structures ‘‘Rigorous Execution’
Defining clear behavioural
expectations and working Implementation of GDFO
Systems
practices Behaviours
Developing our longer Developing new process
term resourcing strategy Performance Desired capabilities
Process Putting customer at the
Management Culture
heart of our processes
software Organisational
‘Harnessing Energy’ Readiness Environment
Creating a new
Design Theatres Customer Centre
Managing implementation risk Governance Management
Preparing for RIIO-GD1 Information
Improving data quality and
regulatory reporting
Demonstrating our compliance and
improving process and data controls
…we need to address all the dimensions of transformation, both ‘hardware’
and ‘software’, to create the desired culture and achieve sustainable success…

23. Transformation Roadmap
Release 3:
Release 2: 3,000 people
Release 1: 2,800 people Repair
Full emergency Construction & Customer
Collaborative
1,200 people deployment driven construction
design theatres Smart travel (GPS) New Customer Centre and
Enhanced mobile data
Maintenance capture for maintenance organisation in place
Emergency early Customer Centre New leadership and staff
release area Telephony & CRM structure in place
A Process centric
operating model
Integrated
solution
B
2 3
design
Build the
1 May 2011 to
November 2011 to
architectural May 2012
October 2010 October 2012
and capability
foundation
Function
Process

24. Lesson Learnt so far…
Click Schedule
Everyday
Planning & Dispatch Regular milk-runs Skills sets
behaviours critical
Process end to end view Engagement needs to manage People like the screen
creates transparency and expectations, hold to commitments. designs – because
enables focused actions Extend beyond go-live to establish new they designed them!
to raise performance ways of working and maintain buy-in
Thinking spatially opens up new dimensions in understanding the performance of the business – but
very few people naturally think this way…

25. Summary
The Transformation of our Gas Distribution business is a exciting mix of
exploiting new technology and leading the management of change to
fundamentally transform the way we work.
The integrated ESRI/SAP/Syclo design will improve the efficiency and
effectiveness of our end-to-end process by helping get better designs,
streamlining capital planning and opening up our asset information
management to enable better asset decisions.
Our People and our asset data remains critical to the effectiveness of our
business and we are tackling all aspects of our culture to ensure we can
achieve sustainable business results:
Right People, Right Process, Right Technology

26. Summary
Las Personas Correctas…
Procesco Correcto…
La Tecnologia Correcta…