SP Services' Implementation of a New Billing System for ... 4_Lawrence Lee... · project risks 6. Implementation of risk ... CIA BRM EBT DMS Kinetiq . ... UAT (Inc. Mini Market Trial)

Copyright © SP Services Ltd 2012

Confidential Information. Not to be reproduced without written permission from SP Services Ltd

SP Services' Implementation of a New Billing

System for Contestable Customers

Lawrence Lee

Director (Operations)

SP Services Ltd



Installation

Metering

Consolidated Billing

Payment Collection

Customer Services

Debt Management

1-Stop Service

Regulated

Business

Non-Regulated

Business

• Market Support Services

Licensee

• Supplier for NCC

• Retail Settlement /

Switching

• Billing and Collection

Agent

1-Stop Service

Scope of Business

http://www.tuaspower.com.sg/html/index.html

http://www.nea.gov.sg/

http://images.google.com.sg/imgres?imgurl=http://sg.jobstreet.com/logos/agenalogos/city_gas_logo.jpg&imgrefurl=http://sg.jobstreet.com/jobs/2009/6/default/20/2103638.htm?fr=J&usg=__EISWX75XgcRCcbrID9NpEZsQF0U=&h=140&w=211&sz=4&hl=en&start=2&um=1&tbnid=0zBV0e9t4JqIFM:&tbnh=70&tbnw=106&prev=/images?q=citygas+logo&hl=en&sa=N&um=1

http://images.google.com.sg/imgres?imgurl=http://govbill.ecitizen.gov.sg/obcs/images/PUB.gif&imgrefurl=https://www.psi.gov.sg/NASApp/tmf/TMFServlet?isNew=true&Reload=true&app=OBCS-PUBLIC-I&AgencyId=PUB&ServiceCd=S1&usg=__XPd-Hm2vyNu5quZYrAoQpfJ_N0w=&h=80&w=160&sz=5&hl=en&start=2&um=1&tbnid=POYH5G7xjrzaTM:&tbnh=49&tbnw=98&prev=/images?q=public+utilities+board&hl=en&um=1

http://www.sembwaste.com/imgs/logo.gif

http://images.google.com.sg/imgres?imgurl=http://awma.multiview.com/userlogo/awma/18782v2v1.jpg&imgrefurl=http://awmabuyersguide.com/company.php?id=18782&company=Veolia+ES+Technical+Solutions&term=&usg=__u-f-EZHF-bVJS_y2wpMKraJeyrI=&h=168&w=338&sz=12&hl=en&start=6&um=1&tbnid=Vximb1DOxWpl0M:&tbnh=59&tbnw=119&prev=/images?q=veolia+ES&hl=en&um=1

http://images.google.com.sg/imgres?imgurl=http://www.colex.com.sg/images/colex_logo.jpg&imgrefurl=http://www.colex.com.sg/colex_profile.html&usg=__6MIDuY6QgbtVggvso1-5IG_lWY8=&h=79&w=65&sz=5&hl=en&start=3&um=1&tbnid=IgGza19fSQSGMM:&tbnh=73&tbnw=60&prev=/images?q=colex+logo&hl=en&um=1



Key Statistics

Send 1.3 million bills monthly

Read 3.2 million electricity, water and gas

meters bi-monthly

Receive 75,000 calls monthly



Key Statistics

Process $6billion in utility payments annually

Disconnect / Re-connect 14,500 accounts

monthly

Process 31,000 move-in / move-out requests

monthly

http://www.btgjobsight.co.uk/images/accounts.jpg



National Electricity Market



Background

Legacy MSSL IT System was implemented in Jan 2003

Retailers

MSSL

Contestable

Consumers

Wholesale Market Retail Market

Daily

Metering File

Price File

Generation

Companies



Rationale for Upgrade

Upgraded

MSSL IT System

MSSL IT System

1. In use for more than 8 years

2. Migrate to SAP platform

3. Drive new efficiencies

4. Support growing customer base



Project Objectives

Project Objectives Target

1. Implement MSSL on SAP Platform Successfully • On time and on budget

• Without impacting business operations

√

2. Improve Operational Efficiency • Integration between functions

• Improve, Streamline and Automate existing processes

√

3. Review & Identify Existing Processes for

Improvement and Automation √

4. Achieve Scalability • Provide a scalable platform to support growing number

of contestable customers

√



Project Governance

Project Leaders

Working Committee

Steering Committee

SP Services Board

Project Leaders

Project Management Office

Internal Audit

Risk Management



Project Implementation Plan

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

2010 2010 2011 2011 2012 Timeline

Blueprint Completed

Warranty

Go - Live and Documentation Accepted

Warranty Period

Completed

Key Milestone

Market Trial

Pre - Roll - Out

Parallel Run

UAT Accepted

Data Migration Accepted

Stress / Load Test & Technical Test Completed

Testing

SIT 1 SIT 2 SIT 3

Regression Test

System Integration Test (SIT) accepted

System Go - Live

Blueprint: 6 months

Major activities

• Conduct User Workshop • Dev. Change Management Approach • Dev. Conversion Approach • Dev. Technical Arch Approach • Dev. Business Process Design • Dev. Solution Paper • Dev. Functional Design

Realization: 6 months

Major activities • Dev. Functional Design • Dev. Report, Interface, Conversion, Enhancement, Form, Workflow • Conduct Unit Test • Configure System • Develop Training Material

Testing: 7 months Major activities • Execute System Integration Test • Execute User Acceptance Test • Execute regression Test on EBS • Conduct Mock Conversion • Conduct Stress / Load Test • Conduct High Availability Test • Conduct Disaster Recovery Test • Preparation for Parallel Run and

Market Trial

Pre - Roll - Out: 4 months Major activities

• Conduct Training • Conduct Dress Rehearsals • Conduct Parallel Run • Conduct Market Trial

Major activities

Blueprint

• Fix defect

Realization Realization Completed

Develop RICEFW

UAT 1

UAT 2

UAT 3



Project Risk Management

Lifecycle Project Risk Management adopted from early

planning stage to implementation phase

Early Planning Stage

1. Follow Large IT

Procurement procedure

2. Include Audit and Group

Risk Management in the

Steering Committee

3. Detailed scoping of

requirements

4. Focus on core modules to

minimise customisation

Tendering & Contract

Negotiation

1. Stringent vendor

selection process

2. Require vendor to

include risk management

approach in tender

document

3. Establish project risk

register

Implementation Stage

1. Monthly Steering

Committee Meeting

2. Fortnightly Working

Committee Meeting

3. Various stages of testing

requirements

4. Stringent Exit Criteria

5. Regular assessment of

project risks

6. Implementation of risk

mitigations




Quality

Assurance

SAP

Solution

Review

Integration Review

Deliverable Review

• Carried out quarterly by vendor’s independent

Senior Executives

• Review conducted at blueprint & parallel run

• Review of Blueprint Solution by SAP

• Review of integrated solution by Solution

Architect

• Review carried out internally on an on-going

basis within project team and Steering

Committee




System Integration Test UAT Pre-Rollout

5 Months 3 Months 2 Months

SIT

Cycle 1

SIT

Cycle 2

SIT

Cycle 3

Test functionalities within

specific functional areas:

• Finance

• Billing

• Metering Data Management

• Market Interactions

UAT

Cycle 1

UAT

Cycle 2

UAT

Cycle 3

Test functionalities within

specific areas &

integration testing based

on user-defined

scenarios

Parallel

Run

Market

Trial

DR 1

• Validate system

functionalities against

legacy

• Test connectivity with

retailers & EMC

• Prepare environment to

test technical data &

validate cutover plan to

ensure predictability of

project

DR 2



Project Roll Out



3 Golden Rules

No Hard Coding

Ensure SQL Statements are Well Written and Efficient

No Unauthorised Modification

ACTION: As part of the code review process, an automated tool that searches for instances of hard coding was run and potential issues highlighted. Any hard coding found was addressed by the development team.

ACTION: As part of the code review process, a senior member of the development team will review SQL statements relating to the 15 biggest tables. Issues such as loops within loops and inefficient select statements were reported to the developer and addressed.

ACTION: Modification of core functionalities require an access key from SAP. No developer has this key and any request to obtain it will go through the Steering Committee.



Technical Architecture Design

Key Solution Elements

1. Re-alignment to standard

functionality

2. Leverage on SAP’s Best Practices

3. Support future growth and

business evolution

4. Improve operational efficiency

Testing Requirements

1. Support multiple parallel streams

of testing

Conversion Requirements

1. Accuracy in converting historical

data

Batch Requirements

1. Support integrated batch

schedule for MSSL

Key Tech Arch Considerations

1. Minimise implementation risk

2. Uphold system performance

objectives

3. Optimise system reliability,

maintainability and

scalability

Technical

Architecture

Design



Test Methodology



functionality



business evolution


Lesson Learned

1. Early Involvement of users in

System Integration Test (SIT)

2. Multiple environments for testing

to avoid unnecessary impact to

the project schedule

3. Focus on critical business

scenarios first

Key Test Methodology

Considerations

1. System is up-to-date with the

latest enhancement pack

2. MSSL operations not

adversely affected

3. MSSL processes and objects

are thoroughly tested

4. Capitalise on lessons learned

from implementation of

existing non-contestable and

legacy MSSL systems

Test

Approach



Conversion & Cutover Strategy



functionality



business evolution


Lesson Learned

1. Proven mock conversions,

dress rehearsal and fall-back

approaches

2. Data reconciliation and

verification approaches and

expectation

3. Complexity in data extraction

from proprietary data sources

Conversion and Cutover

Strategy Considerations

1. Minimal impact to production

environment & Market

Participants

2. Integrity of MSSL data is not

compromised

3. Capitalise on lessons learned

from implementation of

existing non-contestable and

legacy MSSL systems

Conversion

Data Model

Data

Extraction

Approach

Verification

And

Reconciliation

Approach

Cutover

Approach



Conversion & Cutover Strategy

Data Conversion Approach 1. Accuracy and quality of conversion

2. Data integrity is not compromise

Data Extraction Approach Challenges:

1. Large data volume

2. Complex data formats

3. Data exist in different systems

4. Data extraction logic to handle exception scenarios

Verification and Reconciliation Approach Adopted from previous implementation experience

• Reconciliation checkpoints throughout conversion process

• Multiple reconciliation methodology:

i. Checksum

ii. Eyeballing

iii. Finance reconciliation

iv. Auto Reconciliation reports

File

Extract Transform CRM

R

C

1

Recon

Report

R

C

2

R

C

3

Load File (Transformed

data)

Recon

Report

R

C

4

MSSL

Extract Legacy Transform Load

CIA BRM

EBT DMS

Kinetiq



Stress Test

Objective

To ensure system can perform

within the set targets

Process

Integration CRM IS-U

Scope Test Set Up Results

Online Stress

Test

a. 26 key online transactions across

functions with processes integrated

between systems

b. Peak load at 168 virtual users with

additional 20 online active users

Online performance met

target with response time

< 1s

Batch Test

a. Generate 13,000 invoices

b. Daily main stream batch jobs

Batch performance met

production requirements



Retailers’ Participation

Activities Timeline Scope

Connectivity Testing Apr - Jul 11 Connectivity testing and sending of sample

messages (inbound and outbound)

UAT (Inc. Mini

Market Trial) Aug – Sept 11

Testing of one message of each type per

retailer (inbound and outbound)

Parallel Run Oct – Nov 11

Limited involvement from Retailers / EMC

submitting transactions that occurred in “real

life”

Dress Rehearsal DR1 Sept 11

DR2 Nov 11

Rehearse connectivity switch and testing as

part of simulated cutover

Market Trial Sept – Dec 11 Testing and verification of market messages

generated during the market trial period

Go-live 3 Jan 12 Final connectivity switch as part of

actual cutover



Cutover Readiness



Project Dashboard

Work Stream Schedule Scope Resources Issues /

Risks Remarks

1. Overall Programme Completed

2. Functional Team Completed

2.1 Business Process Design Completed

2.2 Solution Paper Completed

2.3 Functional Design Completed

3. Data Conversion Completed

4. Change Management Completed

5. Basis & Authorisation Completed

6. Development Completed

7. Mock Conversion Completed

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G



Project Dashboard

Work Stream Schedule Scope Resources Issues /

Risks Remarks

8. Development of Training

Material Completed

9. System Integration Test Completed

10. User Acceptance Test Completed

11. Dress Rehearsal Completed

12. Parallel Run Completed

13. Market Trial Completed

14. User Training Completed

15. Go Live & Warranty Period In Progress

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G

G G G G



Key Risks & Mitigations

Key Risks Mitigation Status

Delay in Project

implementation

1. Regular assessment & reporting

• Fortnightly Working Committee Meeting

• Monthly Steering Committee Meeting

2. Strict control over customisation

Cost Overrun 1. Optimise re-use functionalities

2. Efficient resource allocation

3. Strict control over change requests

Failure to reconcile

data in old

and new system after

data

conversion

1. Conduct mock-conversion exercise

2. Eyeballing of data

3. Users performed detailed checking on

migrated data in UAT Cycle 1, 2 and 3

Poor quality of

deliverables &

assumptions not

validated

1. Various checkpoints and sign-off processes

2. Regular QA review by SAP

3. Close work relationships between users and

SI

4. Prior screening of SI for key personnel

G

G

G

G



Communications Plan

Communications Strategy 1. To engage the relevant stakeholders to facilitate a smooth cutover

2. To manage strategic communications with the public should there be

any complications

Non-Contestable Customers

• Cutover should be a non-event to non-contestable customers

• No publicity / media release for this segment

Market participants / Stakeholders

• A targeted approach to reach out to Retailers, EMC, EMA, SPPG,

contestable customers

• Communications through the respective service touch points

• Templates, FAQs and media drawer statement prepared in readiness on

possible scenarios / complications



Communications Plan

Audience Activity Key Objectives

SP Services Market

Participants

(Retailers)

• Market participant’s

briefing

• Communicate Project and key phase

objectives / high level approach

• Project timelines

• Extent of involvement and when

Transmission Licensee

(SP PowerGrid (SPPG))

• Transmission Licensee

briefing





SP Services Partners

(3rd party suppliers - banks)

• 3rd party meetings • Communicate Project and key phase




Market Operator

(EMC)

• Market operator

briefing



• Key phase activity timeline

• Extent of involvement expected during

Testing phase (UAT)

Regulator

(EMA)

• Regulator briefing



• Key phase activity timeline

• Cutover / Fallback / Contingency plans



Cutover



Cutover Timeline

December 2011 January 2012

We 21 Th 22 Fr 23 Sa 24 Su 25 Mo 26 Tu 27 We 28 Th 29 Fr 30 Sa 31 Su 1 Mo 2 Tu 3 We 4

Cutover Prep Pre-Load

Period MD

Pre-Load Period

Historical Data Cutover Period

Post

Cutover

Checkpoints

MSSL

SAP

MSSL

Legacy

0 1 2 3A 3B 3C 3D 3E 4 5 6 7

Conv.

Data

Prep

System

Prep.

Manual tracking of transactions that change master data

converted in Pre-Load Period Master Data

Load master

data and

recon

Load 4 years of meter readings and recon

Load trans

data and

recon

Connectivity

Switch and

test

Man

ual C

atc

h-u

p

Catc

h-u

p B

atc

h

Batc

h f

ile In

c.

Sett

lem

en

t fi

le

fro

m 2

3-2

6 D

ec Process

EBT

transaction

Update master data

Generation of Settlement and Usage files

Market Message Transactions

Hold MDA, Refund Request and SD Review

Prep.

extraction

environment

Extract master

data

Legacy System Freeze

Prepare cutover

extraction

Cutover

extraction

Business

Conversion

Technical



Fallback Action Plan

December 2011 January 2012

We 21 Th 22 Fr 23 Sa 24 Su 25 Mo 26 Tu 27 We 28 Th 29 Fr 30 Sa 31 Su 1 Mo 2 Tu 3 We 4

Cutover Prep Pre-Load

Period MD

Pre-Load Period

Historical Data Cutover Period

Post

Cutover

Checkpoints 0 1 2 3A 3B 3C 3D 3E 4 5 6 7

Trigger point to fallback to the legacy system, rollback activities:

1. Manual catch-up on frozen transactions such as MDA, refund

requests, open Lotus Notes workflow


1. Manual catch-up on frozen transactions such as MDA, refund

requests, open Lotus Notes workflow

2. Connectivity switch back to retailers

3. Run catch up batch

4. Open access to legacy MSSL system

5. Restart normal batch


1. Manual catch-up on frozen transactions such as MDA, refund requests, open

Lotus Notes workflow

2. Connectivity switch back to retailers

3. Run catch up batch

4. Open access to legacy MSSL system

5. Restart normal batch

6. Continue to process settlement file in DMS for 23 - 26 Dec

Legend

• Go-live Go / No-Go checkpoint

• Point-of-no return checkpoint

• Go-live date: 3rd Jan 2012

• Fallback target: Generate

Settlement & Usage file by 5pm

on 3rd Jan 2012

6

7



Settlement / Usage Files

3 January 2012

Hours 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

MV90

MSSL

SAP

MSSL

Legacy

Collect Meter

Data

Run batch to

generate

Settlement &

Usage files

Check

against

DMS

Export Meter

Data & Comm.

Log to Stage

Verification

DMS: Run

batch to

generate

Settlement &

Usage files

CIA

sc

he

du

ler

run

Checkpoint 7:

Point of No

Return

Buffer

Settlement & Usage File

submission

Catch up batch

Payment, Returns, Dunning, CIA scheduler,

PV2 Stage, Masterfile

Catch up manual transactions:

refund requests, MDA, LN

workflow

Connectivity

Switch

Catch up market

messages

Legacy ready

to start the

regular batch



Post Go-Live

EDM processing 5 days of meter

readings

Onsite support during batch run

1 x EDM Func. Support

1 x Developer

1st Month End

Onsite support

during batch run

1 x FI Func.

Support

1 x Developer

Dunning Activated

Ops to confirm dunning

jobs are activated

1st Aggregated Bill


1 x BI Func. Support

1st Billing Month End Report


1 x BI Func. Support

1 x Developer

1st Settlement File & EBT

Messages

Onsite support of


1 x CS Func. Support

1 x Developer

1 x PI Developer

1st MSSL Bill

Onsite support from Jetform

Dec January February

F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S

30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5

MSSL BP 20 25 01 05 10 15

Agg. BP 20 25 01 05 10 15

Generation of 5 days of settlement

files



1 x Developer 1

2

3

4

5

6

7

8



Post Go-Live

1. Post Go-live checkpoint meetings were held daily

2. Performance on key business activities were monitored daily i. Key reports generated were monitored and verified

ii. All inbound and outbound files were monitored

iii. All inbound and outbound messages were tracked

3. Daily settlement and usage files were held back for users’

verification before sending out

4. 100% bill checking for two full billing cycles

Level MSSL Customers Retailers

1 : General Bill Alignment with

Simple Calculation

100% Hardcopy Bills -

2 : Detailed Bill Checking with

Reference to System

100% Online Bills 100% Online Bills



Post Go-Live

4. Key dates identified that may impact settlement & usage

files - Interim process of holding settlement and usage files for users’

verification before sending out

5. 100% bill checking for key dates identified

Special Scenario Date Reading Date Settlement-Ready Date

Leap year 29 Feb 1 Mar 7 Mar

New Price 1 Apr 2 Apr 9 Apr

New TLF value 1 Apr 2 Apr 9 Apr

New SSAF 1 Apr 2 Apr 9 Apr



Key Success Factors

Change Management

User Involvement & Communication

Senior Management Commitment & Support

Timely Decision Making, Sign Off & Resolution

Joint Effort to Transfer Skills & Knowledge

Adhere to Deadlines

Leverage on Best Practices

Work as ONE Team



Thank You

Questions and Answers

Documents

SP Services' Implementation of a New Billing System for ... 4_Lawrence Lee... · project risks 6. Implementation of risk ... CIA BRM EBT DMS Kinetiq . ... UAT (Inc. Mini Market Trial)