Bruce Goldblatt, DirectorAlliance Data Systems

April 12, 20056th Annual Metering, Billing,

CRM/CIS ConferenceLas Vegas, NV

 CIS Selection and Implementation and the Importance of Integrated

Planning

Agenda

The need for integrated planning Developing an integrated plan

CIS context and scope Program Management Conclusions Q & A

The Need for Integrated Planning

CIS/CRM implementations are becoming increasingly more complex.

CIS/CRM implementations continue to be very a very risky and costly undertaking.

On-time Overdue

WithinBudget

OverBudget

65%

5%15%

15%

Typical CIS Implementation Outcomes

Example: mid-western municipal utility

New CIS evaluation/selection/implementation New City-wide cashiering system New IVR evaluation/selection New bill production New EBPP rollout New City-wide telephone system – VOIP New City-wide wireless network rollout New Development Center/Permitting system New lab system GIS upgrade ERP upgrade Rate changes Technology refresh And don’t forget the need to run the business!!

The Need for Integrated Planning

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2

Retail Customer Management

Wholesale Customer/Market Management

MeterManagement

WorkManagement

Distribution Construction Management

Asset/ Maintenance Management

Technology

2004 2005 2006

Yes

Implement/TransitionImplement/Transition

Implement New CIS

Define Wholesale & Gas Mgmt. Direction

Feasible Outsourcing

Options?

Implement New MIA System*Implement Marketer Auto-Service*

Define Work Mgmt. & GIS

Direction

New Work Mgmt. Package Needed?

Define Automated Dispatch Direction

Define Meter Mgmt.

Direction

Conduct AM Pilot

…

Implement Meter Data Mgmt.

…

Define Corporate Analytics &

Portfolio Mgmt. Direction

Implement New CIS

New Gas Mgmt. Solution Needed?

Yes Implement New Gas Management System

Select Gas Mgmt. Vendor

Design/Build/Implement Custom “Wholesale CIS” Components

…

AM viable as enterprise system?

Yes

No

Define Enterprise

Rollout Approach Store all meter asset

information in AM?Yes

Yes or No

Select New CIS …

Implement Meter Asset Management

Implement Meter Data Mgmt

Upgrade/Consolidate AD Systems

Implement MAM

Select Meter Data Collection

Hardware/Software Vendor* Upgrade/Consolidate AD Systems …

…

Meter Data Mgmt. Solution

Needed?

Yes

No

Select MDM Vendor

Use new Retail Cust. Mgmt. Solution for MDM

…Design/Build/Implement Custom “Wholesale CIS” Components

Assess CIS SourcingOptions

Select Outsourcer

No

Yes

No

Implement EAI

Workflow

Update Technology Roadmap

Update Technology Roadmap

Incrementally Deploy AM as Enterprise Solution

Assess AM Pilot…

Enhanced CIS User Interface

Perform Application Migrations/Technology Upgrades*

Implement Short-term Work Mgmt. & GIS Solutions

Replace Meter Data Collection Hardware/Software

Define and Implement Enhancements

No

Define Meter Data Mgmt.

Options

Assess Pilot

Result

Illustrative

CIS/CRM Selection Considerations

Determine CIS/CRM scope: current definition vs. future definition. Align with overall business strategy.

Identify/Access ancillary projects

Determine replacement strategy, license based vs. outsourced vs. enhancement vs. hybrid

Conduct evaluation/selection

Develop integrated plan: people, processes, systems and time

What is CIS/CRM Scope?

Utility Billing

Non-Utility Billing

Consumption HistoryRates & Tariffs

Customer Information

Meter/Equipment Inventory

AR/Credit & Collection

Workflow

Service Orders

Management Reporting

Service Information

Controls & Audit

Ad-hoc Reporting

Meter Reading

Customer Self Service (Web)

Remittance Processing

CIS/CRM

CIS/CRM Context – as is

CIS/CRM

MeterReading

Cashiering

G/L

AP

WorkManagement

3rd PartyBilling

ComplexBilling

CollectionAgency

Payments/Bank Drafts

Payments

Man

ualCredit R

efunds

Journal Entries

Re

ad

Info

Consumptio

n

Ma

nu

al

Remittance Processing

CASSCertification

Credit Agency

Mailing Addresses

Delinquent Accounts

Credit Info

CIS/CRM Context – to be

NewCIS/CRM

MeterReading

Cashiering

G/L

AP

WorkManagement

3rd PartyBilling

ComplexBilling

CollectionAgency

Payments/Bank Drafts

Payments

Work

OrdersCredit Refunds

Journal Entries

Re

ad

Info

Consu

mpt

ion

Ma

nu

al

Remittance Processing

CASSCertification

CreditAgency

Mailing Addresses

Delinquent Accounts

Credit Info

GIS

IVR/ACD Consumption

StatementGeneration

SystemsPlanning

Customer Info

Billing In

fo Geo Info

Billing Determ

inants

Permit Info

No

Developing an Integrated Plan

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2

Retail Customer Management

MeterManagement

2004 2005 2006

Yes Implement/Transition

Implement/TransitionOutsource?

…

…

Implement New CIS

…

Select New CIS

…

Implement Meter Data Mgmt

Select Meter Data Collection Hardware/Software Vendor*

Meter Data Mgmt. Solution Needed?

Yes

No

Select MDM Vendor

Use new Retail Cust. Mgmt. Solution for MDM

Select Outsourcer

Enhance CIS User Interface

Replace Meter Data Collection Hardware/Software

Define Meter Data Mgmt. Options

Illustrative

Assess CISOptions

Define Meter Mgmt. Direction

Developing an Integrated Plan

People Limited availability of resources Need to run the business vs. new projects Change management

Processes Increased need to integrate across operational

boundaries Need for standardization

Technology Increased need for automation across the

organization Increased need for data access across the

organization

All of these aspects need to be considered when planning to replace a CIS

Program Management

Project

Metrics

Project

Metrics

Project

Metrics

Project

Metrics

ProjectMetrics

ProjectMetrics

ProjectMetrics

ProjectMetrics

Project

Metrics

Project

Metrics

Project

Metrics

Project

Metrics

Program Management

CIS

SteeringCommittee

----- Executive Oversight and Strategy

----- Integrated Planning

----- Operational ResponsibilityAMR Project 1 Project 2

Program Management is NOT Project Management

Program Management Focus

Project Management Focus

• Tight alignment with business priorities

• Business impact measurement

• Prioritized allocation of scarce resources

• Enterprise communications

• Identification and tracking of results

• Ability to assess impact of changes

• Tracking promised benefits

• Project-vested interest in control

• Completing the project on-time

• Budget / contract instead of value-add

• Their own problems• Day-to-day project work• Delivery of a specific

service

=

Conclusions

CIS replacement efforts take a long time and continue to be very risky and costly

Risk mitigation: Integration planning starts in the CIS/CRM

selection effort Integration planning is refined and managed

during the implementation effort Strong project management is critical Establishment of a corporate program

management office and process is essential Executive involvement in the decision

making Communicate, communicate, communicate

Questions