Building a Business Plan, Strategy and Roadmap to support Asset Management Initiatives Frank Grablutz (Aqua America) Ross Smith (PA Consulting Group) May.

Building a Business Plan, Strategy and Roadmap to support Asset Management Initiatives

Frank Grablutz (Aqua America)

Ross Smith (PA Consulting Group)

May 4th 2005

© PA Knowledge Limited 2003. All rights reserved.-xxx- 25/03/2002- 2

Gaining sustained executive level support for “GIS Projects” can be challenging

We will explore how you can secure budget, resources and executive support for your program by:

– Developing a fact-based, business-led “GIS” Strategy and Business Plan

– Engaging a wide cross-section of senior stakeholders from the business

– Defining performance metrics and targets that are achievable and measurable

– Treating your “GIS program” as a Business Transformation (Change) program from day one


We’ll start with a simple premise…

The sustainable service delivery capability of a Water Utility is fundamentally based on their ability to efficiently install, manage, repair, upgrade and optimize their deployed physical network infrastructure.

– What network assets do we have?

– How are our network assets connected?

– Where are our network assets?

– Where are our customers in relation to our network assets?

…and a summary of Aqua Pennsylvania’s drivers for constructing an Asset Management focused business plan & roadmap


Aqua America is the largest US-based publicly-traded water utility…


Aqua Pennsylvania is the largest operating division within Aqua America’s territories (2005 map shown)


Aqua Penn has a “pseudo” GIS but does not currently capture, store or utilize asset data within a GIS


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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Aqua Penn’s water Main Renewal Investment program has increased dramatically over the past 10 years


Case Study: Infrastructure Asset Management Project for Mains replacement/renewal…

Key Business Objectives:

1. Optimize capital expenditure for effectiveness and efficiency

• How do we align our systems, processes, data, standards and operations to make the best use of our capital funds for mains replacement/renewal?

2. Determine how to establish the optimum level of expenditure required to sustain/maintain our infrastructure


Mains replacement/renewal decision making is based upon how well Aqua knows it’s own network

Understanding what is happening to aging infrastructure in the distribution system is important for future decision-making about public safety, risk management, replacement capital projects, service reliability and future maintenance work loads

These decisions will be aided by certain information or indicators. Examples include the type of pipe, condition of pipes, leak rate, public safety, environmental impacts, criticality rating etc.

Influencing

Factors

Engineering

(Inventory)

Performance

Indicators

Location(where, and

in relation to..)Condition

Information

Decision

How effective is asset-related decision

making? Is it having a beneficial impact for

the business and customers?


Users of network asset information are diverse…

Customer ServiceI want to quickly and efficiently connect new customers or respond to quality issues.

Main Break RepairI want respond more quickly when a network fault occurs.

Capital Budget PlanningI want better allocation of capital expenditure.

Asset ValuationI want to be able to value our network assets.

MarketingI want to better target prospects with marketing campaigns.

Installations & RepairI need to action a workorder on a network element.

Network Design

I want to do network planning and design using

quality network data.

Asset UtilizationI want to analyze network optimization.

Fire HydrantI want to better manage

public safety by systematically improving

fire flow

Service Quality StrategyWe want to minimize dirty water complaints and improve services on our network.

Outage ManagementWhich customers were affected by the outage?

Plant EnquiryI need to provide our records for Digging PermitsNETWORK

ASSET RECORDS

Regulatory ComplianceI need to ensure we’re complying with the Utility Commission


There appears to be an obvious answer to overcoming these challenges!

GIS technology is a natural fit for Water utilities seeking to improve decision making, improve customer service, competitive advantage, cost savings, regulatory compliance etc in a cost effective and efficient manner.

It has unifying capabilities that helps overcome existing problems with storing, disseminating, managing and using spatial data that describes the physical network.

Prove it!


One approach is to use a One Page Strategy to develop a fact-based, business-led GIS/Network Asset Strategy

The One Page Strategy is an approach to developing a creative, ambitious and achievable strategy and building commitment to its implementation.

Cross-functional involvement is the key to success – building

commitment and ownership within the

business for the outcomes


The One Page Strategy provides a framework to build a business case, strategy and roadmap

Business ProcessVisions

Strategic Initiatives to

Transform the Business System

Goals forCustomerRelations

Targets

Goals forService Delivery

Goals & Targets for Excellence in critical

processes

Goals Asset Management

Targets

What we need to do? Initiatives defined to achieve targets and

goals

Ambition & Strategy

Targets

Projects to set up measures and/or achieve short-term focussed improvements

Projects to change the

strategic directionand/or transform ways of working

TechnologyData

PeopleProcess

Organization






Targets



processes


Targets


goals

Ambition & Strategy

Targets




TechnologyData

PeopleProcess

Organization

Understanding the business’ goals and objectives is critical to demonstrating value derived from the GIS

Focusing on business outcomes ensures that we remain benefit-focused while we

identify & plan initiatives which will improve our decision making capability and

overcome “information anarchy”

Business Goals & Objectives are hollow without defining targets. Meaningful

metrics bring your business case/strategy to life and provide a means to demonstrate

business value






Targets



processes


Targets


goals

Ambition & Strategy

Targets




TechnologyData

PeopleProcess

Organization

An honest assessment of the ‘business design’ (people, process, technology, data) reveals strengths & weaknesses

Assess your Business Design – the technology, data, processes, people and organizational

structure supporting asset-related decision making






Targets



processes


Targets


goals

Ambition & Strategy

Targets




TechnologyData

PeopleProcess

Organization

We are now in a position to identify tactical and strategic initiatives (projects) that will address issues identified

We can now define the scope, resource requirements, duration,

budget etc for discrete projects that will effect the changes required to

meet our goals & objectives.


Each initiative identified is grouped into an appropriate phase of delivery matching resource/budget constraints

© PA Knowledge Limited 2005. All rights reserved. RS Presentation2 19 January 2005 42

Project A

DescriptionThe aim of this project is to leverage the existing asset related information systems (both paper&digital: excel, access, field notes etc) to develop a consolidated infrastructure asset data model. This initiative will eliminate data duplication and establish a common repository for asset data, thus eliminating data islands, inconsistency in asset naming and permit governance and process to be established across functions.

Key Activities

1. Define Data Model Requirements including all entities, attributes, mandatory fields, relationships and look-up lists.

2. Ensure all required data from existing databases and spreadsheets (primarily pipes, regulators, valves etc) is supported in the target data model

3. Develop the data model in Oracle/SQL Server, defining business rules to protect integrity within the RDBMS

Project Objectives

To standardize database platforms and technologies to enhance supportability and enable integration

To consolidate Infrastructure Asset Data ‘information systems’ into a common repository built using corporate standards

To enable cross-departmental access to system functionality (including ad-hoc reporting)

To build, convert, cleanse and consolidate network asset management information which will support efficient and effective risk management, capital planning etc.

Key Outcome/Deliverable

1.A common enterprise data model and repository that standardizes asset data in a consistent manner.

Estimated Duration

21 3 4 5 6 7 8 9 9 10 11 12 13

Months


Project A


Key Activities




Project Objectives







Estimated Duration

21 3 4 5 6 7 8 9 9 10 11 12 13

Months


Project A


Key Activities




Project Objectives







Estimated Duration

21 3 4 5 6 7 8 9 9 10 11 12 13

Months

Roadmap

Initiatives

Benefits-focused delivery


The One Page Strategy output encapsulates all relevant inputs, analysis and findings

Example

Business Goals & Objectives

Supported by Targets/Metrics

What do we want to achieve?

What’s wrong with how things are

today?

What needs to be changed to reflect how it should be e.g.

vision of tomorrow?

What do we practically have to do?


Gaining sustained executive level support for “GIS Projects” doesn’t need to be challenging

We have explored how you can secure budget, resources and executive support for your program by:

– Developing a fact-based, business-led “GIS” One Page Strategy

– Leverage Industry Best Practices by applying the Capability Maturity Model to focus on key capabilities

– Engaging a wide cross-section of stakeholders from the business to identify strengths & weaknesses in the Business Design

– Defining performance metrics and targets that are achievable and measurable

– Treating your “GIS program” as a Business Transformation (Change) program from day one

– Building a roadmap with gated check-points…building on each success

Stay benefits-focussed. Gain consensus. Foster ownership. Enable communication.


Questions…

?Ross Smith Managing ConsultantPA Consulting Group

Frank Grablutz GIS ManagerAqua America

Building a Business Plan, Strategy and Roadmap to support Asset Management Initiatives Frank Grablutz (Aqua America) Ross Smith (PA Consulting Group) May.

Documents

pa knowledge limited

gis slide

infrastructure slide

network assets

gis program

traded water utility

asset data

gis projects