Herding Cats in the Digital World

with you
Herding Cats in the
Digital World
David DuCharme, Victor Jimenez
Mike Swatek
Oracle OpenWorld | 29 September 2014

Copyright © 2014 Capgemini. All Rights Reserved 2
Presenters
David DuCharme, VP NA Utilities, Capgemini
David leads the Utility practice in North America for Capgemini. He brings many years of
experience in the energy industry covering a wide range of initiatives including multi-state
utility mergers, the reorganization of several state run utilities, the rollout of smart meter/
smart grid across North America and most recently operational excellence.
Mike Swatek, Enterprise Information Architect, Pacific Gas and Electric
Mike joined PG&E to lead Enterprise Information Architecture in 2012 after developing and
implementing an Information Management and Business Intelligence strategy for Bank of
Hawaii that contributed to substantial performance improvements across the bank, helped
to minimize the impact of the banking crisis of 2008 to Bank of Hawaii, and contributed to
Bank of Hawaii being chosen as the Nation's Best Bank by Forbes Magazine in 2009 and
2010 and number two in 2011.
Victor Jimenez, Energy & Utilities Executive, Capgemini
Victor has 20 years of experience in the utility industry. In his current role, Mr. Jimenez leads
Capgemini’s utility analytics and Oracle solutions. Prior to joining Capgemini, Mr. Jimenez
held positions as an executive at Oracle and senior technology roles at a utility.

Agenda
Digital Utilities Transformation
Challenges
Analytics
PG&E Story

Digital Utility Transformation (DUT):
The changing digital relationships at two ends of the utility value chain
Transformation Transformation
Customer and
External Market
Rationalization
Assets and
People Backoffice
= Application Count Across the Value Chain
Companies that embrace
digital transformation
financially outperform their
peers by 26% - Digital
Transformation Study
Conducted by Capgemini
and MIT
Enterprise Wide Data Layer

Some industries are more mature than others…
Average
industry
maturity*
* Average maturity of industries for which we
received at least 20 survey responses
Telecomm
High Technology
Retail Banking
Travel and
hospitality
Consumer
Packaged Goods
Pharmaceuticals
Insurance
Utilities
Manufacturing
Telecomm
High Technology
Retail Banking
Travel and
hospitality
Consumer
Packaged Goods
Pharmaceuticals
Insurance
Utilities
Manufacturing
FASHIONISTAS DIGIRATI
BEGINNERS CONSERVATIVES
Digital
intensity
Transforma>on
management
intensity

Every Industry has Digital Leaders
“Utilities are in great majority
conservatives"
“There is a great consensus
around the transformative
potential of Digital
Technologies, although with
limited hope for significantly
increasing revenue"

Key messages from the Utilities sample
1) Utilities have only started adopting digital
technologies in specific areas such as the
customer experience. Our European retail benchmark shows
that customer satisfaction and optimized channel mix (3 at the most)
are necessary for reaching low cost to serve
2) Analytics is not widely used in either customer or
operational applications
3) Untapped opportunities may exist in worker
enablement and process digitization
4) Data and integration issues may present
challenges in other areas
5) Utilities’ digital transformation management
practices are relatively more mature than their use
of digital technologies

Digital transformation opportunities for Energy retailers
Proactive
listening to the
market
Digital
Processes
Customer
Behavior
understanding
Customer Self
services
Personalization
of services
Correlating competitor
rates against churn and
monitoring social media
Improve Internal
experiences that
enhance customer
engagement Analytically led service
Collaborative working
with the customer in the
field
Consumption through
smart metering and
design specific offerings
Field
Staff
Back
Office
Customer

5 major technology trends drive the digital transformation with composite
solutions addressing business opportunities
Internet Collaboration
Appification
BPM
Intelligent devices
BPMS Big data
Cloud
Mobility
Composite Digital
Solutions
Customer
Experience
Business
model
Operational
Process

acwceilethra tyinog u
Analytics

Governance
Agile Interaction Layer
Channel Service
Personalization &
Interaction Layer Insight Layer
Orchestration & Integration Layer Layer
Speed
Value
Industrialization
Cost reduction
Capgemini’s H-model Architecture is fundamental for DUT:
Enabling Speed of Digital Innovation
Security
Layer
Application & Data Layer
Robust Application
Layer
Overall
Objectives
Systems of
Innovation
Systems of
Differentiation
Systems of Records
Speed
Value
Industrialization
Cost reduction
The H-model distinguishes the robust application layer and the agile interaction.

Oracle Utilities Study – Revisited
Enablers Barriers
Cloud
Readiness
Customer Value
Data Required
1. Meter
2. Outage
3. SCADA
4. Customer
Operational Value
Skills
Source: Oracle Study 2013 “Utilities and Big Data: Accelerating the Drive to Value”

Governance and Change
Management has emerged as a key
requirement
Study Revisited – Where are we now?
Drivers
Use cases and data sources define
value proposition of analytics
solutions especially when resulting
in operational efficiency
Smart Meter programs are a
catalyst for change but others have
emerged (assets, pricing, customer,
cross-functional)
DW Enrichment
Big data does not replace DW but is
complementary. Tools
Centers of Excellence and new
analytics organizations (business
and IT) are emerging
Big Data
Definition has changed for utilities –
mostly focused on hadoop
implementations and Information
Management maturity
Trends
Visualization, self-services, Data
Lake, predictive, real-time and
operational / events
Skill barriers are still there although
mitigated by technology: cloud,
engineered systems, data models.
Enablers Barriers
Cloud
Readiness
Customer Value
1. Meter
2. Outage
3. SCADA
4. Customer
Operational Value
Skills
Data Required
People

Enablers – Big Data
Big Data Appliance is
Engineered for Savings
Big Data SQL
It’s not just about a hadoop implementation

Transformation Transformation
Enabling DUT (analytics) across the value chain
Customer and
External Market
Rationalization
Assets and
People Backoffice
Enterprise Wide Data Layer
Generation Procurement Electric Gas Customer Corp Services
How do we solution across all business units?
How do we minimize data silos?
How do we fund the enterprise solution?

How do we proceed?
People and Transformation
! Develop an analytics strategy
! Center of Excellence, analytics organization
Big Data initiatives
! Smart Grid or Smart Meter
! Pilots and POCs
1 0
0 1
1 1 0
1 0 0 1 0
0 1
Data warehouse enrichment
! BI technology upgrades to achieve strategic goals
! Rationalize BI technology components
1 0 1 1
0 0 1 1 1 0 1
0 1 0 0 1 1 0 1
1 0 1 0 1 1 0 0
1 0 1 1

acwceilethra tyinog u
PG&E Story

0 1
1 1 0
PG&E Analytics Journey
We’re starting with …
! Hundreds of data silos, thousands of data files,
tens of thousands of Excel workbooks.
! No data inventory, metadata, business glossary
! Data is not integrated or correlated
! Poor quality, unreliable, often late data
! Limited analytics tool expertise
! Basic BI is very manual and labor intensive
! BI, analytics and data are not trusted; opinion
drives decisions
But we want …
! Real-time situational awareness
! Situational Intelligence
! Predictive asset management
! Grid & pipeline risk modeling
! Predictive outage alerting
! Volt/VAR control & optimization
! Short/Medium/Long-term demand forecasting
! Emergency response modeling
! Reduce operating and project costs
! Accelerate time to market
1 0
1 0 0 1 0
0 1

The Digital Utility
Data is the life-blood of the Digital Utility

Analytics
Center for
Excellence
Analytics Vision
! Develop competency in 3 Core
Capabilities for Analytics Success
! Align Roles of Business and IT
– IT’s Role: Provide trusted
data and analytics tools to
the Business
– Business’ Role: Develop and
apply information to high-value
decisions and processes
! Establish Analytics Center for
Excellence
! Establish Enterprise Information
Governance
Enterprise
Information
Governance
Data
Management
& Analytics
Business
IT
Today Target
Information-driven
Culture
Information
Factory
Data
Management
PEOPLE PROCESS TECHNOLOGY
Analytics
Developers
Business
IT

Where are we now?
Underway …
! Data Management and Analytics Strategy
! Strategic plans are gaining support
! Influencing some key projects:
! STAR
! GOSI
! IKON
! STDF
! Data Management & Analytics Organization
! Analytics Center for Excellence
! Enterprise Information Governance
On the horizon…
! Inventory our data and data stores
! Consolidate into a few core platforms
! Virtualize to accelerate delivery
! Analytics sandboxes
! Monitor, measure, & assure data quality
! Advance our analytics skills and maturity
! Introduce new tools and methods
! Pervasive Intelligence
! Enterprise funding model

Contact Information
Dave
DuCharme
VP NA Utilities Leader
david.ducharme@capgemini.com
Victor
Jimenez
Utilities Executive
victor.jimenez@capgemini.com
Mike
Swatek
Enterprise Information Architect
mike.swatek@pge.com

www.capgemini.com
The information contained in this presentation is proprietary.
Copyright © 2014 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
About Capgemini
With almost 140,000 people in over 40 countries, Capgemini is one of the world's
foremost providers of consulting, technology and outsourcing services. The Group
reported 2013 global revenues of EUR 10.1 billion.
Together with its clients, Capgemini creates and delivers business and technology
solutions that fit their needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working,
the Collaborative Business Experience™, and draws on Rightshore®, its worldwide
delivery model.
Learn more about us at www.capgemini.com.

Herding Cats in the Digital World

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (15)

Similar to Herding Cats in the Digital World

Similar to Herding Cats in the Digital World (20)

More from Capgemini

More from Capgemini (20)

Recently uploaded

Recently uploaded (20)

Herding Cats in the Digital World