Perspective on todays utilities and the industry

Oracle Open World
Perspective on Today’s
Utilities and the Industry
Vision for Tomorrow
Perry Stoneman, Capgemini
September 2013

2Copyright © Capgemini 2013. All Rights Reserved
OOW Capgemini input (draft 01) | September 2013
Big Trends in the Global Utility Industry
1. Digitization of the electrical grid
through Smart Meter and Smart
Grid Programs
2. Diversification of the energy mix –
decentralized renewable energy
3. The social explosion through the
internet, and proliferation of mobile
devices
Transformations we are seeing…

Big Trends in the Global Utility Industry
 Not enough focus on IT OT convergence.
Only a few forward-looking utilities are
addressing the convergence and
coordination of IT and OT.
 Little future-focused work has been done on
business process, for example utilities are
not prepared for Distributed Energy impacts.
 Receptivity to the 5 major technology trends
of Big Data, Cloud, BPMS, Mobility and
Intelligent devices is increasing, but adoption
is slow and far from widespread.
What we are not seeing…
We call the adoption of the 5 major technology trends
Digital Maturity
BPM
CollaborationInternet
Appification
5 major digital technology trends

What is Digital
Transformation and
why you should care!

Four levels of digital maturity
Transformation management intensity
Conservatives
 Overarching digital vision exists,
but may be underdeveloped
 Few advanced digital features, but
traditional capabilities may be
 Strong governance across silos
 Taking active steps to build digital
skills and culture
Beginners
 Management skeptical of the
business value of advanced
digital technologies
 May be carrying out some
experiments
 Immature digital culture
Fashionistas
 Many advanced digital features
(such as social, mobile) in silos
 No overarching vision
 Underdeveloped coordination
 Digital culture may exist in silos
Digirati
 Strong overarching digital vision
 Good governance
 Many digital initiatives generating
business value in measurable
ways
 Strong digital culture
Digitalintensity

Digital maturity varies widely*
DigiratiConservatives
FashionistasBeginners
* Digital maturity of 391 companies in our sample

Digitally-mature companies have significantly better
financial performance
-11% +26%
-24% +9%
Basket of indicators:
• Tobin’s Q Ratio
• Price / book ratio
Cost Effectiveness Market Valuation
-12% +12%
-7% +7%

Some industries are more mature than others…
* Average maturity of industries for which we received at least 20 survey responses
Banking
Consumer
Packaged Goods
Insurance
Manufacturing
Pharmaceuticals
Retail
High
Technology
Telecoms
Travel and
hospitality
Utilities
Average
industry
maturity
*
Transformation management intensity
Digitalintensity

Utilities specific findings
1. Utilities have only started adopting digital
technologies in specific areas such as the
customer experience
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

The Value of the
Capgemini Oracle
partnership

The value of the Capgemini - Oracle partnership
 #1 in Utilities for IT Services in Western Europe* (Gartner)
 #3 in Utilities for IT Services Worldwide* (Gartner)
 Leader for IT services in the EMEA Utilities Market** (IDC)
 Over 75 Smart Energy clients worldwide
 Smart Energy projects for over 113M smart meters
 We are a leader in digital transformation in most sectors
Capgemini is
a leader in
Utilities for IT
Services
Capgemini-
Oracle
Partnership
 Formed in 2006, the Smart Energy Alliance
 Oracle Software part of every smart energy
project of Capgemini
 Data from 113 million smart meters flowing through
Capgemini and Oracle architected AMI solutions
 Lead partners on the largest approved meter rollout
in Europe featuring MDM 2.0.
* Ranked by Gartner based on 2012 revenue; Source: Gartner, Inc., “Market Share: IT Services, 2012”, Kathryn Hale et al, 29 March 2013
**Source: IDC: “IDC MarketScape: IT Service Providers in the EMEA Utilities Market 2013 Vendor Assessment,” Doc #EIOS02V, May 2013.

Introducing Capgemini
Immediate Architecture
designed for digitally
enabled businesses!
Revealing for the
1st time our Agile
Architecture

Consumerdriven
market
With the evolution of consumers and maturing
technology, IT will become business!
Transition to information utilities and empowered customers bring
Business and IT together
Unaware
Aware
 Low energy lighting
 Efficient heating
 Insulation
 Supplier comparison
 Self service
Passive Interest
 Green energy
 Renewables sources
 Energy labels
 Energy efficiency advice
Active involved
 Energy conversation
programs
 Smart meters
 Energy management tools
Community involvement
 United consumers
Communities
 Demand shift
 Consumer storage
 Advance energy management
Utilitydriven
market
Interactive involved
 Local generation
 New pricing models
 Demand response programs
 Customer analytics
 Consumer - Prosumer

Capgemini’s H-model Architecture is fundamental for
DUT: Enabling speed of digital innovation
The H-model distinguishes the robust application layer and
the agile interaction.
Systems of
Innovation
Systems of
Differentiation
Systems of Records
Speed
Value
Industrialisation
Costreduction
Overall objectives
Speed
Value
Industrialisation
Costreduction
Layer
Layer
,
Channel Service
Security
Layer
Application & Data Layer
Orchestration & Integration Layer
Personalization &
Interaction Layer
Insight Layer
Robust Application
Layer
Agile Interaction Layer
Governance
Layer

The Capgemini H Model Architecture
Core Framework
Layer
,
Channel Service
Security
Layer
Orchestration & Integration
Layer
Personalization &
Interaction Layer
Insight Layer
Robust Application Layer
Governance
Layer

Layer
,
Channel Service
Security
Layer
Layer
Personalization &
Interaction Layer
Insight Layer
Governance
Layer
Front End Services – The Agile Interaction Layer
Channel Service
Apps Web Call IVR SMS Chat
Personalization &
Interaction Layer
Social Media E-Commerce
Insight Layer
Big Data Analytics
Channel Service
CSS – Customer Self Service Cloud Solutions
Personalization &
Interaction Layer
SRM Right now
Insight Layer
OBIEE OBIU

Stable Domain – The Robust Application Layer
Layer
,
Channel Service
Security
Layer
Layer
Personalization &
Interaction Layer
Insight Layer
Governance
Layer
MDMS OMS DMS DRMS HES
EAM GIS CIS
Power
System DB
MWFM
MDM NMS (OMS & DMS)
DSM
(to come)
Smart Grid
Gateway
WAM GIS CC&B ODM MWM

Orchestration and Integration Service Layer – Oracle Applications
and Technologies
Layer
,
Channel Service
Security
Layer
Layer
Personalization &
Interaction Layer
Insight Layer
Governance
Layer
Orchestration and Integration Service Layer
Business Process
Management
Master Data
Management
Business Activity
Monitoring
Work Flow
Management
Extract, Transform &
Load
Traffic Management
Oracle Fusion Middleware

Governance Layer – Oracle Applications and Technologies
,
Channel ServiceSecurity
Layer
Orchestration & Integration Layer
Personalization & Interaction
Layer
Insight Layer
Governance
Layer
Authorization
Authentication
System Activity
Infrastructure
Security
Logging, Auditing &
Reporting
Configuration
Management
IT Service
Management
Business Service
Management
User Support
Continuity
Management
Business Process
Management
Master Data Management
Business Activity
Monitoring
Work Flow Management
Extract, Transform &
Load
Traffic Management
MDM NMS (OMS & DMS)
DSM
(to come)
Smart Grid
Gateway
WAM GIS CC&B ODM MWM
Oracle Fusion Middleware
CSS – Customer Self Service Cloud Solutions
SRM Right now OBIEE OBIU

The information contained in this presentation is proprietary.
Copyright ©2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues
of EUR 10.3 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 ExperienceTM, and draws on Rightshore®,
its worldwide delivery model.
Learn more about us at www.capgemini.com

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