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Ericsson Smart Metering as a Service

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Ericsson Smart Metering as a Service

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Ericsson’s Smart Metering as a Service (SMaas) is an end-to-end business process outsourcing solution that streamline utility business processes, reduce costs and allows utilities to focus on their core business.

Ericsson’s Smart Metering as a Service (SMaas) is an end-to-end business process outsourcing solution that streamline utility business processes, reduce costs and allows utilities to focus on their core business.


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Ericsson Smart Metering as a Service

  1. 1. SMaaS Launch | January 2016 | Page 1 Smart Metering as a service Pierre fitzgerald Global Utility Lead, North America
  2. 2. SMaaS Launch | January 2016 | Page 2 Utilities Public safety Transport Industries in transformation Industry & Society › Focus on industries that are transforming using information communication technology › New business line established 2014 › Based on existing offerings › Proven customer track record 65% of smart city investments in Utility, Transport and Safety
  3. 3. SMaaS Launch | January 2016 | Page 3 CAGR 2015 – 2018: 16 – 18% Market outlook This slide contains forward-looking statements. Actual result may be materially different. Smart metering, Smart grid communication Grid control Asset & Critical infrastructure management Customer and Revenue management ICT infra for road / rail Transport transactions Traffic management Connected vehicle, connected vessel First responder networks (PS-LTE) Disaster and Emergency management Critical Infrastructure protection Strategic government networks Addressable Market 32 35 BUSD 20142013 63 39 2015 2018 36% 8% CAGR ’15-’18 I&S Public Safety Transport Utilities 7%
  4. 4. SMaaS Launch | January 2016 | Page 4 A changing utilities arena Integration of renewables Aging infrastructure & workforce Sustainability Consumer experiences New technologies Deregulated markets, increased competition
  5. 5. SMaaS Launch | January 2016 | Page 5 What utilities need to do Innovate for better customer experience New eco- systems and business models 2 3 Utilize ICT as an enabler 1
  6. 6. SMaaS Launch | January 2016 | Page 6 31,1% will have some level of third-party management by 2023* Utilities can: › Focus on core business › Secure continuous improvement in service quality › Release capacity for innovation * Navigant Research, “Smart Grid as a Service “, Q4 2014
  7. 7. SMaaS Launch | January 2016 | Page 7 Smart Metering As A Service Specific service functions IT & data functions Communication management E2E Business Process Outsourcing Order to Service | Case to Resolve | Meter to Cash
  8. 8. SMaaS Launch | January 2016 | Page 8 E2E Business Process Outsourcing DRIVE COST EFFICIENCIES Operational efficiency Reduced complexity Reduced investments BENEFITS BEYOND COST Improved quality & user experience Time to market & differentiation 20% operative cost savings 60% reduced fault correction time
  9. 9. SMaaS Launch | January 2016 | Page 9 Energy utilities need a reliable way to collect smart meter data: fast, efficient and with small upfront investments. To accomplish this, utilities are more and more outsourcing smart meter operations. As prime, sub-prime or systems integrator, Ericsson supplies, deploys and manages smart metering systems and operations as a managed service to more than 25 energy utilities in Northern Europe. MASTERING COMPLEXITY SYNERGY CIRCLE LEVERAGING SCALE SUPERIOR EXPERIENCE Smart metering as a service Northern Europe, 2 million meters for >25 customers
  10. 10. SMaaS Launch | January 2016 | Page 10 smart Metering as a Service Customer operations in Northern Europe SOLUTION › Reliable meter data collection and processing › Metering devices management › Dispatching, field services and connectivity management › Transparent governance and change management process RESULT › Modernization leap › Optimization of system architecture and processes › 20% reduced operational cost › Secured evolution of the solution, competence and regulatory compliance CHALLENGE › Utilities need efficient smart metering operations and fast introduction of new services › Large spread of legacy systems, communication technologies and meter vendors › Operate multi utility smart meter reading in wide geographical areas Reliable and efficient metering data operation Efficient meter reading operations Outsourced business process
  11. 11. SMaaS Launch | January 2016 | Page 11 Our global utilities experience >42 MILLION METERS World’s largest First 4G (LTE) NETWORK FOR A UTILITY DEPLOYED GRID EDGE NODE DEPLOYMENT

Editor's Notes

  • Global Utility Lead, NA

  • Source for 65 %: Navigant smart city study Nov 2014

    Cities often become a focal point of transformation
    Challenges are present in a dense location, and they are economic centers of the world

    Rapid urbanization

    The world is rapidly moving into cities. Estimates tell us that by 2050, around 70% of the worlds population will live in cities compared to 50% by 2015. This puts enormous stress on the city infrastructure in everything from securing housing to making city functions cope.

    Water quality & access, Utility/Energy access

    Access to clean water in an efficient manner is crucial in any society. With increased strain and density in cities this will be a key challenge to address for city authorities. Many developing countries are experiences high rates of energy theft, and unreliable grids

    Complex transport management

    With a big rise of citizens, transport will change dramatically. There is a need to increase usage of public transport in many places so that we can share resources more efficiently, there is a need to prepare for autonomous driving as well as a need to understand the challenges of electrical vehicles.

    Department in silos

    Possibly the biggest challenge is to transform how a city is managed and run. Today most cities run their functional departments in silos where everyone does their own thing without systematic collaboration. To cope with upcoming challenges this needs to be changed. We can’t solve problems in isolation anymore but to create horizontal platforms on top of which every department contributes to every other department and work in unison to tackle the big challenges.

  • Notes to be added.
  • Access to electricity is a prerequisite for our society and a foundation for the future. The way we live today and will live tomorrow requires more and more electricity. At the same time, the climate effect from electricity consumption must be kept to a minimum.

    Aging infrastructure and workforce in large parts of the grid

    Drives a need for replacement and a change in how things are done process wise.
    Nearly 70 % of utility leaders believe their organization will have workforce challenges because of employee retirements during the next five years. Source: Black & Veatch, 2014 Strategic Directions US Electric Industry

    Integration of new & advancing technologies

    New technologies open new opportunities for utilities and needs to be captured.

    Societal pressure for cleaner, more efficient energy

    A big driver to reduce environmental impact for utilities companies, something that new technologies can help to realize

    Move from integrated monopolies to open competitive markets

    In many markets, the utilities industry is moving from tightly integrated monopolies to open competitive markets. Poses new challenges for especially energy retailers that compete on a market and need to fight for revenues with new services and new customer experiences.

    Increased demand for better consumer experiences

    Consumers are getting used to better consumer experiences from other industries and this impacts their desire for better experiences in every part of their life. Utilities companies need to step up and compete.

    Integration of renewables into the grid

    A new mode of energy production where everyone can be both a consumer and a producer of energy is happening. This puts requirements on the grid and it needs to be updated to manage two way interaction with consumers.
  • Utilize ICT
    Expertise and insight in all areas of ICT need to come together to create new opportunities for energy and utility businesses. Opportunities that come from;
    - near real-time business management.
    - using smart devices and networks to create a truly responsive and adaptive enterprise.
    - cloud-based services that gives limitless room to grow and change direction without costly investment in systems and skills.
    - Managed service knowledge and abilities from our global telecom operations

    Innovate for better customer experience
    Electricity utilities have been focusing on smart metering for many years, which will make an abundance of consumption data available. But this does not address consumer engagement, customer experience, or the effects of electricity consumption.

    The era of building new, big centralized solutions is coming to an end. The expansion of new generation needs to come from renewables and distributed generation to a larger extent.
    The energy utility industry needs to utilize the opportunities offered by distributed generation and storage to facilitate change and continue to drive a development that supports renewables.

    At the edge of the grid, where storage, distributed & aggregated generation, home energy management and other connected home services thrive, there are large opportunities for innovation and new revenue sources.

    New ecosystems
    Developing a new mindset, new competencies and establish a new ecosystem of business partners will be crucial to gain clock speed and deliver world-class customer experiences. It might be hard to start to look for dissimilarities in new partner arrangements but that is needed. More of the same will not generate new revenue.

    Business models
    New business models will emerge based not only on hardware such as storage and generation, but also from data generated by assets in the system. Smart meters are only one type of sensor, and however important the consumption and delivery quality data are, many new services for consumers will emerge from sensory data outside the actual grid. In a networked society, all assets that benefit from being connected, will be connected.

    The border between the physical and digital worlds will become translucent. Data captured from the environment (weather), houses, appliances, smartphones and wearables will be used in combinations and for purposes we can only imagine. Utilities that want to survive this flood of possibilities need to be open minded and let go of their traditional businesses – to nurture ideas and drive from emerging players.

    Energy utilities need to question current business, but also operations: What are their core business, what parts of the processes must they run in-house and what can (should) be run by other actors. As a first step I this direction ->NEXT
  • While utilities have historically not embraced outsourcing, attitudes are shifting. The complexities of smart grid deployments and systems integration are a few of the drivers behind a growing market opportunity for outsourcing of smart metering operations. As a result, power industry hardware and software vendors are increasingly offering managed services solutions.

    In their report, “Smart Grids as a Service”, research firm Navigant Research expects that of all smart meters installed globally, 31,1% will have some level of third-party management by 2023.

    Today, Ericsson is launching exactly that, the Ericsson Smart Grid as a Service.
  • At a time when ICT becomes increasingly critical for electricity providers as they look to improve operational efficiency and find ways to innovate for better customer experience, we’re launching Smart Metering as a Service (SMaaS).

    SMaaS is an end-to-end business process outsourcing from Ericsson, riding on our experience of working with over 42 million utility meters worldwide today. A key advantage of SMaaS that will directly benefit consumers is that it gives utilities companies much faster time-to-market, as well as superior meter management and operations with maximum cost savings. For consumers, this means greater control and more reliable electricity services – including much more accurate billing and trouble shooting. It also means possibilities for advanced home services in the future – such as alerts when appliances are left on, or automation for lighting, heating and cooling – which our ConsumerLab research has confirmed as areas that attract high consumer interest.

    For utilities, the transparent governance and performance reporting in SMaaS allow them to keep control on business processes and focus on their core business. In short, utility providers will enjoy lowered Total Cost of Ownership, reduced complexity as they will have Ericsson as a single point of contact, and improved quality of service, which ultimately means improved consumer experience.

    Multi-utility, by that we mean Electricity, Gas , Water and Heating /Cooling
    The Communication Functions consists of:
    - Communication Network & Topology management
    - Connectivity management: Third party management of other service providers , like for example the connectivity solution

    Ericsson supports customers on communications strategies with clients and other external stakeholders
  • 1.
    Utility benefits from SMAAS by having:
    - Fast start/Short time to market without huge upfront investment since Capex is transferred to Opex over the contract years (typically 5), and utility pays for the capacity actually used.
    Utility does not need to invest in competence development for activity which is out of their core business
    High efficency of multi customer service delivery and resource sharing may decrease the cost of operation for 20% or more.
    All this together results in reduced Total Cost of Ownership for Utility

    2. Reduced complexity is another benfit.
    Ericsson provides Utility with Single point of contact for all aspects of Smart Metering process,
    including the follow up of changing Legislation and technology requirements.
    Clear responsibility definition and distribution, between Ericsson and Utility in all areas and during complete life cycle of solution, such as Delivery management, Planning and Engineering, Deployment and Integration and Service Operations.
    Ericsson Governance Model enables Utility to keep control of outsourced function and to participate in taking all important decisions influencing solution operation and future development together with Ericsson.
    The model that ensures focus and accountability consists of three levels:
    On the Performance Review forum, the daily operational matters are discussed including service performance.
    On the Business Development Forum, the required Volumes, capacity and new services plans are exchanged.
    The Board of Directors forum discusses strategic lines and overall budget and contract performance follow-up.

    Ericsson delivers the services based on mutually agreed Service Levels with focus on Key Performance Indicators corresponding to Utility Business Needs, and provides Utility with transparent reporting.
    Ericsson constantly measures and improves the Quality of Service, which is reflected in improved Utility End User experience, giving Utility neccesary competitive advantage on the market.
  • >42 million meters:
    Managed by platforms developed, operated or maintained by Ericsson

    Focus on innovation for utilities, participating in several innovations projects such as GAD, Stockholm Royal Seaport, Ausgrid, Finseny, Address, price and ELVIIS.

    Participating in several standardization bodies for utilities such as mandates M441 and M449, ESMIG, ETSI M2M, NISR, IEEE, UTC, GWAC etc