The Evolution of mySAP Utilities - Actual Development Focus and Release Strategy
Stefan EngelhardtHead of Business DevelopmentIBU Utilities, SAP AG
SAP AG 2003, Stefan Engelhardt 2
Agenda
Market Update
Release Strategy
Actual and Future Development Focus
SAP AG 2003, Stefan Engelhardt 3
Enterprise Application Software industry-independent mySAP Solutions
850 customers in 56 countries Approximately 40% world market share 1)
More than 85% market share in Germany
Customer Information and Billing Systemsindustry-specific solution IS-U
>380 customers in 50 countries Approximately 25% world market share 2)
76 % market share in Germany Market-leading position in the US 3)
1): User work places
2): approximately 250 Million licensed supply contracts
3): META Spectrum Market Summary , February 2002; META Report 09/2002
Position of SAP in the Global Utilities Market
SAP AG 2003, Stefan Engelhardt 4
Analyst’s point of view …
META Report 9/2002
SAP AG 2003, Stefan Engelhardt 5
Agenda
Market Update
Release Strategy
Actual and Future Development Focus
SAP AG 2003, Stefan Engelhardt 6
Ind
epen
den
t System
Op
erator
Enterprise ManagementStrategic
Enterprise Management
Business AnalyticsBusiness
Intelligence & Decision Support
AccountingEmployee Relationship
Management & Workforce Analytics
Regulatory Reporting/FERC
Customer Relationship & Service Management
Marketing Sales ServiceSpecial Customer
ProcessesTransaction Exchange
Analytics
Generation Engineering & Construction Production Plant Maintenance Decommissioning
Transmission & Distribution
Engineering & Construction Operations ManagementMaintenance & Work
ManagementTransmission & Distribution
Service
Installation Services Connection & Installation Management Installation Service Management Meter Reading Management
Energy Capital Management
Energy Data Management
ForecastingPortfolio
ManagementComplex Billing Energy Trading
Reconciliation and Settlement
Energy Billing Tariff Management Scheduling Billing Calculation Special Billing Processes
Revenue Management Invoicing Receivables Management Third Party Settlement
Business SupportEmployee Life-Cycle &
Transaction Management
ProcurementFinancial Supply Chain
ManagementFixed Asset Management
Real Estate Management
Utilities Solution Map, Edition 2003
Major development areas of Releases 4.71 and 4.72
SAP AG 2003, Stefan Engelhardt 7
Campaign Lead Opportunity Quotation Contract
Sales process for residential customers mySAP BI IS-U/CCS IS-U/CCS
Sales process for commercial and industrial customers (*)
Campaign Lead Opportunity Quotation Contract
(*): Including chain and clustered customers
IS-U/CCS
!03/
2003
IS-U/CCSmySAP BI IS-U/CCS IS-U/CCS
mySAP CRM<>IS-U/CCS: Development Steps
SAP AG 2003, Stefan Engelhardt 8
Calculation
Central Function: Quotation Calculation (4.71)
Distributor search
Determination of grid usage fees
Access to consumption data and
load profiles from SAP IS-U-EDM or external systems
Access to controlling data from SAP’s cost accounting system
(SEM/BI)
Quotation
Calculation for a point of delivery Calculation for multiple points of delivery (for example, chain and cluster customers) Calculation of prices and margins Storage of planning data (for example, margins) in SAP Business Information Warehouse Automatic generation and dispatch of quotation
OpportunityOpportunity ContractContract
MS Excel External calculation tools SAP calculation tools
MS Excel External calculation tools SAP calculation tools
... ...
SAP AG 2003, Stefan Engelhardt 9
Key Account Manager Portal: The Interface (4.71)
SAP AG 2003, Stefan Engelhardt 10
Business Challenges - Service
The Pressure Service is traditionally treated as
a cost center Service has no representation at
the executive level Businesses feel pressure to find
new sources of revenue Trying to reduce the high costs
involved in service delivery and execution
Difficulty building customer loyalty
The Opportunity Service is becoming more and
more critical to organizational success
Able to create long term service business relationships
Transform the service organization from a cost center into a thriving service business
Create a consistent revenue stream of service business
SAP AG 2003, Stefan Engelhardt 11
Customer Centric Business with mySAP CRM
Service as integral Part of CRMRich Functionality and Supporting Capabilities
Planned Services Individual or periodical scheduling of planned services Intervals of planned service can be based on time, counter or both Automatic generation of follow-up documents (service orders,
quotations, activities) at definable points in time
Case Management Transaction management – supports the linking of business
transactions to a case
Case hierarchy – supports visibility of relationships among cases
Service Order Management Consideration of required qualifications and skills during scheduling Amount Allocation - Ability to define who should pay which amount
shortly before billing Service Order Quotation
Mobile Service Processes For Laptops and Handheld Devices
New
wit
h S
AP C
RM
4.0
SAP AG 2003, Stefan Engelhardt 12
New Project „Efficient Call Center Processes“ (4.64+)
Focus on Top Dialogue Processes IS-U/CCS plus FI-CA End-User Processes Frequent and Commonly Used Processes Measurable Improvement of Process Efficiency
Implementation Strategy Within the Standard, not Project Based Available on Release 4.64 and 4.71 1st Phase until Q2 2003
SAP AG 2003, Stefan Engelhardt 13
Solution Package New “Express Transactions” Enhancement of Existing Transactions Customizing Templates (BC Sets) Extensive Documentation Service-Team Power-User Community
New Project „Efficient Call Center Processes“(4.64+)
SAP AG 2003, Stefan Engelhardt 14
Top n Dialogue Processes
Move-In and Move-OutMove-In and Move-Out
Customer Overview (incl. Meter Readings, Consumptions, Account Customer Overview (incl. Meter Readings, Consumptions, Account Balance)Balance)
Account BalanceAccount Balance
Invoice CorrectionInvoice Correction
Meter Reading CorrectionMeter Reading Correction
Rate ChangeRate Change
Budget Billing Plan MaintenanceBudget Billing Plan Maintenance
Bank Account MaintenanceBank Account Maintenance
New Contracts (Retailer)New Contracts (Retailer)
Meter Reading to CashMeter Reading to Cash
Disconnection / ReconnectionDisconnection / Reconnection
Master data MaintenanceMaster data Maintenance
CIC-Navigation (Framework for all the above Processes)CIC-Navigation (Framework for all the above Processes)
SAP AG 2003, Stefan Engelhardt 15
Example: Move-In
SAP AG 2003, Stefan Engelhardt 16
SAP Voice: The Superior Self-Service Alternative
IVR
New order
Change of Address
Complex HR help
IVR
Order status
Account status
Service request
Support pre-screen
Payment extension
“Virtual” Agents
Simple HR ESS
Inventory query
Payment extension
Password Reset
SCM event updateTech support
Complaints
Billing inquiry
New orders
Change of Address
Complex HR help
Order statusOrder status
Account statusAccount status
Service requestService request
Support pre-screenSupport pre-screen
Payment extensionPayment extension
Simple HR ESSSimple HR ESS
Inventory queryInventory query
Payment extensionPayment extension
Password ResetPassword Reset
SCM event updateSCM event update
Tech support
Complaints
Billing inquiry
Today:
With Voice:
Expensive, long hold times, limited hours of availabilityExpensive, long hold times, limited hours of availability
Less expensive, no waiting on hold, 24x7x365 availabilityLess expensive, no waiting on hold, 24x7x365 availability
Live Agents
Live Agents
SAP AG 2003, Stefan Engelhardt 17
First half 2003
SAP BW 3.2 SAP BW 3.2
- Utilities-specific KPIsUtilities-specific KPIs- EDM contentEDM content- Master agreementMaster agreement- CollectionCollection
SAP BW Release Planning SAP IS-U
2003/20042003/2004
SAP BW 4.0 (forecast)SAP BW 4.0 (forecast)
- Utilities-specific KPIs Utilities-specific KPIs (for example, meter reading, (for example, meter reading, process analyses)process analyses)- ......
BW 3.2: Available June 2003
SAP AG 2003, Stefan Engelhardt 18
Optimization of back-
office processes
Goal
Minimizing of billing errors
Optimization of the meter-reading process
Optimization of the payment process
Critical factors for success
OK
Not OK
OK
OK
Not OK
Not OK
Result
% Fully paid bills
KPI
% Returns per reason
# Readings per employee
% correct data received
Time betw. reading & payment
% billing errors
99%
< 3%
5 days
>97%
100
< 1%
Benchmark
Business Goals, Success Factors and KPIs (4.72)
SAP AG 2003, Stefan Engelhardt 19
Identification of the relevant KPIs (4.72)
KPIs in SAP BW InfoCubes:KPIs in SAP BW InfoCubes: 65% of the Top 20 KPIs are already
contained 25% of the 40 ‘high-priority’ KPIs are
already contained
~1,000~1,000
190
Sources
Total
High
60Top
20
SAP AG 2003, Stefan Engelhardt 20
Start End
Meter Read to Billing Billing to Invoicing Invoicing to Payment
Meter ReadingPreparation
Meter ReadingPerformed
BillingOutsorting
InvoiceCorrection
KPI Example: Back Office Performance (4.72)
# Reading
# Incorrect reads
Ø Time for correcting reads
# Billing errors
# Outsortings
Ø Time for processing outsortings
# Invoice correction
Ø Time for correcting invoices
costs = # processes x time spent per process
Time between meter reading and invoicing
Time between invoicing and payment
SAP AG 2003, Stefan Engelhardt 22
Marketing
(planning, analysis,execution)
Marketing
(planning, analysis,execution)
Salesportfolio
Salesportfolio
Sales
PurchasingcontractsSchedules
PurchasingcontractsSchedules
Grid topologyGrid access
Grid topologyGrid access
Capacity planningand forecast
Capacity planningand forecast
ControllingControlling
Purchasing
PortfolioManagementOptimization of energy
procurement,energy sales,
risk management
EXTERNAL TOOLS Energy (paper) trade Analysis/forecast Grid optimization
EXTERNAL TOOLS Energy (paper) trade Analysis/forecast Grid optimization
Planned!Planned!
Settlementand billing
Settlementand billing
Portfolio Management – a Logical Enhancement
Technical data(point of delivery,
meter reading data,load profiles)
Technical data(point of delivery,
meter reading data,load profiles)
SAP AG 2003, Stefan Engelhardt 23
Agenda
Market Update
Release Strategy
Actual and Future Development Focus
SAP AG 2003, Stefan Engelhardt 24
03/99 06/01
09/99
IS-U 4.61IS-U 4.61 R/3 4.6B
05/00 12/03
IS-U 1.1BIS-U 1.1BR/3 4.0B
10/98 12/00
06/02
IS-U Support
IS-U DevelopmentMay 2003
IS-U 4.62IS-U 4.62R/3 4.6C
11/00 12/02
IS-U 4.63IS-U 4.63R/3 4.6C
06/01 06/04
IS-U 4.64IS-U 4.64 R/3 4.6C
03/02 IS-U 4.71IS-U 4.71
R/3 4.7 *03/03
1998 1999 2000 2001 2002 2003 2004 2005 2006
03/06
03/05
04/04
2007
IS-U 1.2IS-U 1.2R/3 4.0B
IS-U 4.51IS-U 4.51R/3 4.5B
* Enterprise
mySAP Utilities – Release Strategy of IS-Utilities
SAP AG 2003, Stefan Engelhardt 25
03/99 06/01
09/99
IS-U 4.61IS-U 4.61 R/3 4.6B
05/00 12/03
IS-U 1.1BIS-U 1.1BR/3 4.0B
10/98 12/00
06/02
IS-U Support
IS-U DevelopmentMay 2003
IS-U 4.62IS-U 4.62R/3 4.6C
11/00 12/02
IS-U 4.63IS-U 4.63R/3 4.6C
06/01 06/04
IS-U 4.64IS-U 4.64 R/3 4.6C
03/02 IS-U 4.71IS-U 4.71
R/3 4.7 *03/03
1998 1999 2000 2001 2002 2003 2004 2005 2006
03/06
03/05 IS-U 4.72IS-U 4.72
R/3 4.7 *04/04
Prolonged maintenance until April 2008!
2007
IS-U 1.2IS-U 1.2R/3 4.0B
IS-U 4.51IS-U 4.51R/3 4.5B
* Enterprise
For selected customers only
mySAP Utilities – Release Strategy of IS-Utilities
SAP AG 2003, Stefan Engelhardt 27
mySAP Utilities Release Strategy
Q2/2001 Q3/2001 Q4/2001 Q1/2002 Q2/2002 Q3/2002 Q4/2002 Q1/2003 Q2/2003
R/3 Standard
SAP IS-U/CCS
SAP CRM
4.64(4.6C)
4.63(4.6C)
4.71
3.0 3.0 4.0* 4.0*
4.7(Enterprise)
* planned
4.6C4.6C
3.1 3.1
4.64+(4.6C)
July 2003