Aaum's Presentation on Analytics for Water Utilities

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AAUM Confidential
Analytics for
Water Utilities

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Corporate profile
Founded by IIT Madras alumnus having extensive global business experience with Fortune 100
companies in United States and India having three lines of business
Prof Prakash Sai
Dr. Prakash Sai is professor at the Department
of Management Studies, Indian Institute of
Technology Madras. He has wealth of
international consulting experience in Strategy
Formulation
Puneet Gupta
Puneet spearheads the IFMR Mezzanine
Finance (Mezz Co.), is strengthening the
delivery of financial services to rural households
and urban poor by making investments in local
financial institutions.
Padma Shri Dr. Ashok Jhunjhunwala
Dr. Ashok Jhunjhunwala is Professor at the
Department of Electrical Engineering, Indian
Institute of Technology Madras India. He holds a
B.Tech degree from IIT, Kanpur, and M.S. and
Ph.D degrees from the University of Maine, USA.
Analytics
• Appropriate statistical models
through which clients can measure
and grow their business.
Competitive Intelligence
• Actionable insights to clients for
their business excellence
Livelihood
•Services ranging from promotion of
livelihoods, implementation services,
livelihood & feasibility studies.
 Key Focus Areas in Advanced analytics and Predictive analytics
 Product – geniSIGHTS (Analytics/BI), Ordo-ab-Chao (Social Media)
 More than 25 consulting assignments for Businesses & Govt orgs
 Partnership – Actuate, IIT Madras, TIE and 3 strategic partnerships
 Dedicated corporate office at IIT Madras Research park since 2009
Aaum’s office, IIT Madras Research Park

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Competencies in
Advanced analytics
Build appropriate statistical models through
which clients can measure and grow their
business.
Expertise in
• Digital Media
• Finance/Insurance
• Retail
• Entertainment
• Human Capital
• Government organizations
• Research & training
Competitive
assessment
Competitive intelligence
Provide actionable insights to clients for
their business excellence.
Expertise in
• Business Entry
• Business Expansion
• Market research
Livelihood
Perform livelihood services ranging from
promotion of livelihoods, implementation
services, livelihood and feasibility studies.
Expertise in
• Government
organizations
• Non Government
organizations
• Corporate with livelihood
focus
• Research

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AAUM’s capability in analytics stems from expertise to extract insights from data sources with the
ability to develop advanced models aided by actual understanding
Data sources
Business
Rules
formulation
Analytical
model development
Analytical Advantage Using Mathematical modeling
Secondary
research
Client
Primary
research
Census
Research
firms
Statistical Tools
R (Statistical
System)
WEKA (Machine
learning software)
SPSS (Multivariate
Statistical Analysis)
SAS (Data mining,
Statistical, and
Econometric
modeling)
Analytical Advantage
Profiling &
Segmentation
Product
/Process
performance
Product
/process
innovation
Valuation,
Loyalty & life
time
Market Intelligence | Finance | Retail | Telecom | Supply Chain |Utility | Consulting
Client

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Our Analytical services includes:-
Services
Cross and up
selling Analytics
Collection
Analytics
Rewarding
Analytics
Customer
Analytics
Metering Analytics
Complaint
Analytics

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“Organizations are competing on
analytics not just because they can-
but because they should…”
Thank You

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Cross selling / up selling
 An effective method to manage a growing customer base is the ability to under-
stand the increasing and needs of customers through past interactions with them.
Thus it enables the utilities to:
•Increase customer loyalty by offering them appropriate service for them
•Increase revenue from existing customer base
Methodologies:
 Cross/Up Sell Model Data mart.
Data required:
• Customer, Contract, Account
• Services, Plan data

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Complaints Analytics
 Customer Complaints Analytics (CCA) Platform is a turnkey solution that identifies the root cause of the
customer complaints and predicts the future trends.
 CCA Platform helps the utility providers in:
•Identifying the critical pain areas of the customers in various target segments, resolution of which
reduces expenditure on customer care, reduces customer churn and increases customer
satisfaction and loyalty.
•Monitoring customer care executives’/agency’s performance and tracking resolution time.
•Identifying the root cause of the customer complaints.
Methodologies:
 Granularly segregating the complaints data on a common taxonomy, based on a standard lexicon of
definitions of terminology and types of complaints.
 Qualifying the raw data in more granular terms by adding parameters like severity of problem,
periodicity of occurrence, type of fault detected etc
 Run statistical analysis across parameters and help derive intelligent insights from the data either as
predictive models, or as behavior model or segment the data into intelligent patterns
 The system identifies new issues in the field and flags higher-than-normal rate faults and notifies the
appropriate analyst to let them know there is a problem that needs investigating.
Data required:
customer care complaints database.
complaints on the water database.

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Collection analytics
 Analyze the credit history and behavior patterns of various customer segments as
well as the performance of various collection agencies/methods to determine which
collection agencies are suitable for different customer segments.
Methodology:
Collection model data mart
Data required:
Customer, Contract, Account, Services, Plan data

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Customer Analytics
 Customer Analytics provides a solution framework which helps utility firms to
classify customers under groups of individuals that are similar in specific ways viz,
spending habits, interests, age, gender, demographic patterns etc.
Methodologies:
Customer Segmentation for Trend Monitoring and Forecasting
Customer segmentation using decision tree
Marketing Response Analysis with Gains & Profit Charts
Data required:
 Geographic variables
 Psychographic segmentation variables
 Behavioral segmentation variables

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Rewarding Analytics
 Rewarding Analytics helps the firm to identify customers conserving water and
rewarding with attractive offers.
Methodologies:
In order to better analyze the performance, one needs to ensure following steps are
followed.
Gathering data
Analyzing data
Presenting information in a meaningful way.
Data required:
 Customer database
 Metering database

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Metering Analytics
 Meter Data Analytics provides a mashup of Automated Meter Reading, CIS and GIS
data in a simple to use web portal for utility customers, customer service
representatives, engineers and executives to enable faster, smarter decision making.
Powel MDA delivers accuracy, end-to-end visibility and real-time control over
business processes related to smart metering.
Methodologies:
In order to better analyze the performance, one needs to ensure following steps are
followed.
Gathering data
Analyzing data
Presenting information in a meaningful way.
Data required:
 Customer database
 Metering database

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Most water utilities in England and Wales are classified as
The primary underpinning of these ratings is our view of low business risk in the
sector, which is characterised by:
 A significant share of their profits coming from low-risk regulated activities;
 Established and relatively transparent regulatory processes;
 Strong and stable operating performance;
 And strategic focus on owning and managing regulated water and sewerage assets.
BBB +A -
GRADE
Source: Utilityweek.uk/OFWAT

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Evolution of the UK water industry Driven by the need for integrated
planning and infrastructure investment
Early years
 Over 1,600 Local Authority water and
sewerage departments
 30 Statutory ‘water only’ companies
1973 Water Act
 Created 10 regional water authorities (but
‘poacher and gamekeeper’)
1989 Water Act
 Privatized the water industry in England &
Wales
 Shares sold on LSE, proceeds to Government
 Set up three national regulators - Ofwat, EA,
DWI
DWI
COMPANY
EA
OFWAT
A Balance of Regulatory Tensions

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EXHIBIT 1
Regina Finn, Ofwat Chief Executive Officer said:
 "We understand times are hard and we have listened to what customers have told
us. They want a safe, reliable water supply at a reasonable cost.
 "People can shop around for the best deal on many things, but not water. That's
why we've challenged the companies' plans rigorously to ensure that customers get
the best value for money from the £21 billion of investment.
 "Our proposals allow the companies to build on the successes of the past, keep
bills broadly stable and create a better environment.
 "Our decisions allow efficient, well run companies to invest in the right place at the
right time for the right price."

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EXHIBIT 2
Ms Finn said:
"We've reduced bills, whilst allowing extensive investment of almost £21 billion.
Everyone will see real benefits as a result of our proposals.
 "Not only will customers continue to receive a safe, reliable supply of water, but we
have worked closely with our partners to ensure our environment gets a better deal
too.
 "Events such as flooding can seriously affect water supplies. We need to help guard
against that. Investment over the next five years will help keep the taps running by
reducing the risk of supply interruptions for around 10 million people.
 "But it doesn't stop here. Once we finalise prices in November, we will continue to
hold companies to account by making sure they deliver on their investment
promises. Should they fail to do so we will take action."

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A Small Number of Key Water Companies
NORTHUMBRIAN
WATER
YORKSHIRE
NORTH
WEST
ANGLIAN
SEVERN
TRENT
THAMES
SOUTH
DWR CYMRU
(Welsh)
WEST
SOUTHERN
THAMES
WESSEX
Water and Sewerage Companies Water Only Companies