pManifold Utility Practice 2015

Utility Research and Consulting

Partnering in Market Development for innovations in solutions, services and reform models

Customer Intelligence Market Intelligence Investment Intelligence

New Business Modeling POC/ Pilot Management M&E, Audit, Impact Assessment

Communication & Outreach Stakeholder Engagement Mobile & Web Apps

Our Sectors

Power Water

Waste Renewables

Cities

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include Utilities those provide services to the mass customers

…

Our Services

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help build local and global ‘Intelligence’ and ‘engaging’ stakeholders to shape ‘sustainable utility businesses’ and new solutions, services and reform models

INTELLIGENCE(DECISION SUPPORT)

ENGAGEMENT(POSITIONING & OUTREACH)

Market Intelligence- Market Sizing- Competitive Analysis- Stakeholder Analysis- Go-to-Market Strategy- Industry Outlook studies

Investment Intelligence- Market/ Business Due Diligence- Investment Feasibility- TEV study- Financial Modeling- IP Valuation

New Business Modeling, POC,Partnerships- New Business Modeling- Pilot Project Management- Scale-up Roadmap- Partnership Development- PPP Advisory

Customer Intelligence- CSAT, Feedback, VOC- Customer Service Quality- Willingness to Pay- Demand Assessment- Customer Data analytics- Custom Surveys

Monitoring and Evaluation- Performance Dashboards- Impact Assessment- Baseline and Benchmarking- Customer Service Level Benchmark- Audits

Communications & Outreach- Policy Advocacy- POV studies- Blogs & Webinars- Events- Whitepapers- Newsletters- Social Media Campaigns

Mobile & Web Apps

Our Value Proposition

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is to all players in the utility value chain. Additionally we engage them all to shape mass utility transformation.

Audit and improve business processes and end-customer services delivery

Operator

Conduct Go-to-Market intelligence, design business case, establish value proposition, engage POC/ pilot, Brand Rationalisation

Service Provider

Benchmark and strengthen PPP model design, conduct stakeholders consultation, build baseline data, model financial risk & returns

Consultant

Conduct business due-diligence, and performance benchmarking on emerging to-invest business models

Investor

Support market development of new innovations & reform models, engage POC/ pilot, conduct demand/ supply research, survey customers for service level benchmarking

Institution

Conduct impact assessment of existing policies through engaging key stakeholders and end-customers, and guide new policy formulation

Government

Our Clients

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span utility value chain, sectors, geography, size, countries

OPERATORS

INSTITUTIONS

INVESTORS CONSULTANTS

SERVICE PROVIDERS

and more….

• Dr. Ashok JhunjhunwalaProf. IIT-Madras

• Dinesh JainFounder Agaami Inc, USA

• Anil ParakhPartner VKSCA

• Dr. M. VidyasagarProf. Univ. Texas Dallas

Our Team

Management Team

• Rahul Bagdia – Co-Founder. Leads the Utility Practice and broader Business Development at pManifold. Earlier, he led the PE fund in Rural Energy for IFMR Trust, Chennai (supported by ICICI) and also the R&D for a German automotive component supplier BHTC Inc. in North America. He holds dual Masters (Mech. & EECS) from Univ. of Michigan, Ann Arbor; and a BE (Mechanical) from VNIT Nagpur.

• Faiz Wahid – Co-Founder. Leads Client Delivery & Engagement, and also IP Team at pManifold. Earlier, he worked in Product Marketing for NXP Semiconductors (formerly Philips) Netherlands and also led global Banking-Technology consulting assignments for Cognizant in Switzerland & India. He holds an MBA from HEC Paris/Univ. of Virginia USA, MS (Software Engg) from BITS Pilani and BE (Electrical) from VNIT Nagpur.

Advisory

is globally connected, locally immersed, functionally diverse, Knowledge driven …

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Our Forum

IUKAN is all-utility all-stakeholders engagement Conference

Conference HighlightsTopic Coverage1. Reinforcing Local Ecosystem for Reforms2. Benchmarking Operational success of PPPs3. Improving Performance Contracting of PPPs4. Innovating Outsourcing with Service Providers5. Marketing Mass Behaviour change in Customers6. Financing Loss Reduction& attracting Capital

Program Agenda- PowerProgram Agenda- Water

6 power packed sessions each in 2 Parallel Tracks48 thought leading speakers250+ participants from Companies150+ companies62 BEST Practices published from 36 companies11 Companies Awarded for their best practiceshttp://www.iukan.in/conference-2014

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IUKAN 2014 - Delhi

Our Projects

• Customer Intelligence

• Market Intelligence

• Investment Intelligence

• New Business Modeling, POC, Partnerships

• M&E, Audit & Assessment

• Stakeholder Engagement

• Communications & Outreach

• Mobile & Web Apps

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• 6300+ customers primary survey across 3 states of MS, MP and Orissa for 5+ new starting DFs, both Urban and Rural (completed as on Dec. 2012)

• Quantify, measure and support improvements of very objective of DF, the ‘Customer Satisfaction’

• Help prioritize initial Capex, setup Performance Management for OperationsTeam and design PR communications & campaign

• Door-to-door EUCOPS© survey of all socio-economic category of customers, across sampled Electrical Sub-divisions and zones.

• High data integrity with use of Technology – GPS & camera enabled touch-screen mobile phones. Real time survey form upload and download via GPRS.

Customer Satisfaction Performance Monitoring (EUCOPS©)

Measure Customer Expectations & Perceived Service Quality Experience and clientele

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Mapping Service Quality Indicators across all customer categories on GIS maps

0%

5%

10%

15%

20%

Power, Quality & Reliability

Customer Service

Communication

Meter, Billing & Payment

Price

Information Access & Rec

Handling

Company Image

Weighted CSI (Perception)

Weighted Order (Expectations)

Gap between Expectations & Perception of utility’s

PerformanceSatisfaction Level across different divisions

Key Observations

n= 1027

n= 340

n= 345 n= 342

Order of Importance

Inferences drawn from GIS map may not be statistically relevant.

HIGH LOW

Relative Order of Importance

Zone 1 Zone 2 Zone 3Overall

n= 1027

FACTOR I: POWER QUALITY & RELIABILITY

5/5/2012C

op

yright (c) p

Man

ifold

A1: Unplanned outages - How satisfied are you with frequency and duration of unplanned outages?

Around 30% respondents from all 3 zones are dissatisfied with ‘Unplanned Outages’

As per customers comments, there is high problem of ‘Unplanned Outages’ in areas of Zone 3

Number of client registered Log Complaints is higher in Zone 3, matching above CSAT results

7%

40%53%

L M H

0% 20% 40% 60% 80% 100%

VS S DS VDS NA

Zone 3Zone 2Zone 1Overall

• 1000+ customers primary survey across 40 sampled wards of one urban Maharashtra town (completed as on Sep. 2012)

• Validate the top line revenue projections from 24x7 Water project, and facilitated financial closure of Rs. 1000+ cr. for the project

• Door-to-door survey of all socio-economic category of customers, across sampled Electoral wards using Contingent Valuation Methodology (CVM).

• Benchmarking respondent profile, Water sources characterization, Opinion on existing MC water services, Willingness to receive & pay for improved services, Billing preferences

Tariff Rationalisation & Willingness to Pay (WTP) – Water 24x7

Measure Customer Expectations & Perceived Service Quality Experience and clientele

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Engaging Customers to map their WTP, and educating on benefits of Metering and new PPP

Sampled wards

Integrated Customer

Engagement Monitoring

Customer Records

Land survey

Online survey

Mobile SMS survey

Customer Facilitation

Center

Collection Center

Call Center

Distributed Control Center

Grievances Center

Online Social Media

Offline Campaigns

pManifold brings ‘Science, Sense, Integration and Regularity’ on Customer side of Utilities

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Most independently and skipping all hierarchies, we allow you active listening and acting upon to your ‘Customer voices’ across all touch points and utility processes

Strategic Decisions | Operational Decisions | Revenue Assurance

Informed decisions, in-time actions

Segmentation, Profiling Awareness, satisfaction

Better Customer Engagement + Expedited Loss Reduction

Customer Analytics

Locally immersed

Adv. Mobile UIs

Real time tracking

GIS integration

High security

Vetted Methodologies

Established processes

Robust quality control

Adv. statistics/analytics

Micro strategy BI

Strict confidentiality

Reliable Front End

Robust Back End

Market Research – Power Distribution Franchisee

Key Questions Answered..• What is potential of Distribution Franchisee (DF)

model?• Which states are looking to adopt the model?• What are key risks and challenges?• How is the bid process and how to analyze critical

contract terms and conditions in the RFP?• What is a typical Capex Distribution for new DFs?• What Returns to expect from a DF model, and what

key sensitivity parameters to analyze?• How has been the bidding scenario and trend in

previous DF bids?

Report Beneficiaries• Some select companies includes SBI

Caps, General Atlantic, L&T, ABB, Moser Baer, Essel, Spanco, PNC InfraTech, ACME, SIS, SMS, IRIDIS, SPML, MEIL

• Offered complementary workshop to their Top Management to understand report content, and help them with their entry and investment decision in DF business

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Building Knowledge on new PPP models in Utility Investment and Operations Teams

94.45%

64.96%

46.51%

33.04%

21.77%

11.44%

1.44%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2.50 2.70 2.90 3.10 3.30 3.50

Inve

stm

ent R

etur

ns (%

)

Levelised Input Price (Rs./kWh)

Sensitivity to Input Bid Price (fixed capex)

Equity IRR Project IRR

Bhiwandi

(MS)

Agra

(UP)

Aurangabad(

MS)

Nagpur(

MS)

Jalgaon(

MS)

Gwalior

(MP)*

Ranchi

*

Shil-Mumbra-

Kalwa

Bihar Inference / Recommendations

Contract Period

(long contracts preferred by bidders)

DF contract tenure has increased from 10 - 20, with most

new tenders settling for 15 years. Bidders favor 20 years to

meet their reform commitment better. Asset Health in RFP Baseline

(Ageing, Transformer Failure Rate,

etc.)

RFP baseline needs to further improve with all critical assets

details, ageing, R&M cycles, make etc. to allow bidders to

develop rational capex plan.Revenue & Customer Segmentation

(Absolute Number & Time Trend)

RFP baseline should share detailed customer segmentation -

meter types, numbers, consumption, arrears (Live & PD),

subsidy, payment, complaints etc.Performance Guarantee (Inclusion of

Electricity Duty)

DISCOM's risk is better covered, by adding few months ED

towards performance guarantee.Minimum Benchmark curve for Price

Bid (No benchmark is favored by

bidders)

Setting no min. benchmark curve will allow bidders to be

innovative in their price bid structuring. DISCOM should

instead share their calculations for viability.Arrear Recovery Sharing (Higher

share is better)

Higher arrear recovery sharing work as good incentives for

bidders. Ageing data will allow better analysis if to extend

incentive time period to 2-3 yrs. There is risk of public

agitation, if arrear recovery is focused first.Deputed Employees Terminal

Liability Payment by DF (sharing with

DF is fair)

Sharing part responsibility of deputed employee's terminal

liabilities (gratuity/pension) with DF, till service used, is

supportive to DISCOM business case for DF (lower HR and

O&M costs).Mandated AT&C Loss Reduction

Trajectory (No trajectory is preferred

by DF)

A bulk target of reducing AT&C losses to say 13% in 10 yrs.

has higher chances of success over year wise targets and

associated penalities. Ground conditions and engaging locals

could take good time. Penalties for Non Achievement of

Loss Reduction Targets (Lower is

better with bidder)

Keeping low penalties and extreme targets could not

guarantee compliance. Increased co-creation and sharing

between bidders will yield better contract.Treatment of Subsidy (Bid Price to

include subsidy retention by DL. Likely

more preferred by DF)

There is risk for subsidy collection from Govt. and DISCOMs

are suffering it already. This risk is better handled with

bidder costing it in the bid price itself. (Ideally, subsidy could

go away with strong delivery.)Payment of Electricity Duty by DF

(Payment Frequency)

Allowing ED to be paid in say 6 months, could give DF a good

working capital, over paying it every month. This could be

good incentive to DF from DISCOM.Quality of supply and standard of

performance, Customer Satisfaction

(KPIs & Targets defined in RFP)

Some core objectives of DF are PQR, customer satisfaction,

and most RFPs do not have any metrics to measure and

hence set targets & ask focused capex. MP policy makers

have made a good start.Terminal Option to DF (longer

visibility preferred by DF)

Option like DF extension, conversion to full privatization

model, all Buy-out, Exit etc. needs to be given detailed

thoughts, in light of changing electricity market.

Comparative Review of RFPs, Bidder Preferences & Outlook

Client Problem

Solution Approach

Results

Quarterly Assessment of Customer Satisfaction with Business Processes

• Client wanted to monitor each process which interfaces with the end customer to monitor the challenges being faced by them and to obtain their feedback and opinions on various aspects of its service delivery

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for a Power Distribution Franchisee company with 4+ lac consumers

• 800 systematically sampled customers were interviewed for the process that they had used in the last quarter.

• The results were presented as Management Dashboards with drill down capability in MS Excel.

• Key improvement Areas for each process was identified and presented to individual process owners and top management for action.• pManifold understood the business processes involved and

developed assessment questionnaires covering the key performance metrics of the process on which the customer feedback is collected. These primarily include Customer Satisfaction, Ease of process, Turn-around-Time, Staff behavior and Non-compliances e.g. additional payments, etc

• Computer Assisted Telephonic Interviewing (CATI) was used to reduce costs and ensure direct traceability to end customers.

• 8 customer facing process were covered,

– New Service Connection

– Meter Management

– Customer Service

– Meter Reading

– Bill Distribution

– Complaint Handling

– Collections

– Operations and Maintenance

Client Problem

Solution Approach

Results

Photo Meter Reading Mobile based App and Web integration with Billing CRM

• Client wanted to outsource its Meter Reading process and upgrade it to a Photo Meter Reading cycle. They want to deploy and expand currently used pilot mobile app, to a scalable and secured application and integrate with Billing CRM

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for a Water 24x7 company with 2.5+ lac consumers base

• pManifold has developed Mobile based Meter Reading application + Web Application + Hosting + year round Managed services model to service end-end requirements

• The Mobile and Web App is developed and currently getting field tested for Phase-1 of deployment with 80K+ customers.

• Key features of Mobile + Web App– Role-based access to Utility Operations and Billing Team to enable:

• SPMs access zone-wise data

• Management to have overall view of data

• Early identification of exceptions

– Import/Export Data for cross validations and final CIS upload by Billing Team

– Audit Checks and Workflows to enable SPMs check meter readings and “Recommend Field Re-visits”

– Meter Reader-wise Workload management for load balancing

DATA QUALITY MANAGEMENT

DATA MANAGEMENT

DATA CREATION

Mobile AppMeter Reading | Location|

Photo | Meter Status | …etc.

Quality Audit EngineEdit Checks | Automated Checks | Manual Checks

ONLINEData Corrections

Role based access | Edit Logs

Meter Data Store

Reporting EngineException Reporting |

Management Reporting | Data Tracking

HTTPAUTH

AdministrationUsers | Permissions | Backup

Data Import-ExportPre-defined Formats to be

uploaded into the CIS

Meter Reader Work Load Management

www.pManifold.com

HT

TPA

UTH

HTTPAUTH

Authorized Access

HT

TPA

UTH

Works

Meter Reading

Mobile Photo Meter

Reader

Meter Intelligence

Customer Information

Bill Generation

Vigilance

MeterCustomer QAQC

Analytics & Triggers

> Meter Reading> Meter Status

ServiceIntelligence> Service Status

> Service reports

Meter Maintenance

Meter Installation

CustomerIntelligence> Customer

Contact info –phone/email, GPS, address, name, etc,

APPAPP

APP

APP

Management

APP

WEB APP FOR OFFICE STAFF

MOBILE APP FOR FOS

MOBILE APP FOR CUSTOMERS

Inspection / Indexing

APP

Phase 1

Phase 2

Phase 3

APP

www.pManifold.com 16

Let’s get in touch…Jo

in u

s in

ou

r co

nve

rsat

ion

s at

,

Power Distribution Franchisee

AT&C Efficiencies

True Distributed GenerationPower Distribution

FranchiseeCommunity of Interest

Connecting talent & Making Local companies discoverable

pManifold InsightsPremium & Free Reports,

Presentations, and more…

pManifold Community BlogArticles, technical notes.

Talk to us or drop by…

Faiz Wahid

+91 88056-55069

[email protected]

Rahul Bagdia

+91 95610-94490

[email protected]

India (Head office)

741 Byramji Town

Opposite Marina Residency

Byramji, Nagpur - 440013

Maharashtra, INDIA

New Delhi

303 B, Enkay Town Plaza,

I-Block, Palam Vihar

Gurgaon-122017,

http://www.pmanifold.com

USA

2020 Calamos Ct.,

Suite 209

Naperville,

IL 60653, USA

Mr. Dinesh Jain

+1 630-853-3520

[email protected]

Let’s deploy our insights and actionsfor your business to improve and grow!

Water Sector Reforms - IndiaCommunity of Interest

5/2/2015 © pManifold. All rights reserved. 15