Download pdf - Delivering Real-Time Business Value for Utilities

July 2013

Delivering Real-Time Business Value

for Utilities SAP Business Suite Powered by SAP HANA

Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

A smart digital utility orchestrates data to provide

innovative services and business models

Data orchestration layer

Smart digital utility Cost, revenue and

billing tracking

Customer and user data

Data storage

Data collection Data analytics

Monitoring and tracking

Asset management

Market com- munication

Security

Dynamic tariff and

pricing models

Energy mgmt.

for infrastructures

Demand-side I

ntegration

Mobile services

(bill shock)

Mobility services

Prosumers and

virtual power plants

Capacity mgmt. Grid and

data services

Investment

operations

and contracting

Controllable

local systems

Enterprise services

(energy footprint,

sustainability)

Trading and port-

folio services

Service provider

Social media

Energy storage

services

Market service layer


Manage the energy revolution in real-time

Maximize production

without compromising

safety or compliance

Optimize asset performance with streamlined and

integrated processes

Enhance visibility into asset performance to

improve maintenance efficiency and proactively

manage risk and safety

Optimize your asset

investments in

distribution

Provide deep insight into information across

multiple data sources to adopt state-of-the-art

maintenance strategies that ensure grid reliability

Support the decision-making of capital planning

and central treasury exposure management for

network expansion

Deliver greater value in

supply while consistently

reducing the cost

Enable timely and accurate reporting of financial

and operational performance

Enable call centers and online services to deep-

dive into high volume data for better customer

service.


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for utilities

Customer Experience

Multichannel Marketing

Sales and Customer Service for

Residential Customers


Commercial and Industrial Customers

Energy Supply Chain Optimization

Fuel Supply Chain Management

Metering Service Parts

Planning and Logistics

Energy Portfolio Management

Operational Efficiency for Plants

and Grids

Asset Portfolio and Commissioning

Asset Visibility and Performance

Asset Operations and Maintenance

Operational Risk Management

Energy Revolution Management

Smart Meter Data

Management and Operations

Demand Side Management

Energy and Environmental Resource

Management

People and

Talent

Core Human Resources and

Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and Financial

Close

Treasury and Financial Risk

Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management IT Strategy and Governance

Bill-to-Cash

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration


Industry value map for utilities Real-time value for key end-to-end processes

Customer Experience

Multichannel Marketing


Residential Customers


Commercial and Industrial Customers

Energy Supply Chain Optimization

Fuel Supply Chain Management

Metering Service Parts

Planning and Logistics

Energy Portfolio Management

Operational Efficiency for Plants

and Grids

Asset Portfolio and Commissioning

Asset Visibility and Performance

Asset Operations and Maintenance

Operational Risk Management

Energy Revolution Management

Smart Meter Data

Management and Operations

Demand Side Management

Energy and Environmental Resource

Management

People and

Talent

Core Human Resources and

Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and Financial

Close

Treasury and Financial Risk

Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management IT Strategy and Governance

Bill-to-Cash

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Highest real-time

business value

for utilities

2

4

1

5

6

3


Customer Cases

Japanese

technology firm

• SAP HANA products and SAP

Business Suite on SAP HANA

• Automated reporting

• Inventory optimization

• Predictive analytics

• Inventory visibility

European

technology firm

• SAP Business Suite on SAP HANA

• Real-time inventory

• Real-time material planning

• Marketing and sales

• Fast financial close

Leading U.S.

technology firm

• SAP HANA Platform and SAP

Business Suite on SAP HANA

• Variable margin analysis

• Customer service excellence

• Opportunity order analysis

• Predictive analytics

• Supplier network traceability

• Predictive scoring

$25 million

benefit over

five years

Annual

benefit

€85 million

Five-year net

value

$152 million


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As starting point, we recommend a performance

and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Appendix with detailed customer cases


Customer case: utilities provider in Russia Summary validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

HR reporting on

SAP HANA

(€150k)

Annual revenue: €2 billion

Financial reporting

on SAP HANA

(€250k)

SAP Business

Suite on

SAP HANA

SAP HANA

products

SAP HANA

Platform

Phase – deployment road map

1 Phase 1

HR reporting on SAP HANA

(Increase business user productivity)

Financial reporting on SAP HANA

(Increase business user productivity)

SAP HANA use cases mapped to industry value map end-to-end solutions


Customer case: utilities provider in Russia SAP HANA Platform

400

0

50

100

150

200

250

300

350

400

450

2013 Phase 1

Costs SoH Applications Platform

Anything built on the platform that is customer specific - new business processes and business models

SAP NetWeaver BW on SAP HANA, high performance apps (HPAs), apps powered by SAP HANA – mapped to IVM E2E

solutions

€

Currently available functionalities (SP0, 1, 2); 23 scenarios mapped to IVM E2E solutions; and planned functionalities (All of

the end-to-end solutions on the industry value map are in scope.)

SAP HANA Platform

SAP HANA products

SAP Business Suite on SAP HANA

SoH = SAP Business Suite on SAP HANA

Annual benefits, SAP HANA

Platform

Annual benefits, applications

powered by SAP HANA: €400k

Annual benefits, SAP Business

Suite on SAP HANA

Estimated deployment costs

Total transition cost

Based on actual SAP

customer engagements


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Financial reporting on SAP HANA Utilities

Business context and goals

This large utility provides heat and hot water in Moscow and the Moscow region.

Business challenges

Existing environment requires effort to collect accounts receivable (AR). There is a need to

optimize the process and make it more transparent and fast.

Process innovations

Centralized reporting on SAP NetWeaver Business Warehouse with a drill-down to specific

accounts

Contribution of SAP HANA

Meets requirements for performance and large volume of data

Value drivers/KPIs

Business user productivity

Innovation scope

SAP Business Suite on SAP HANA (now and

future)

E2E solution

Utilities – financial performance management

Value potential 2

Feasibility 3

Low High

1 5

Low High

1 5


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

HR reporting on SAP HANA Utilities

Business context and goals

This large utility provides heat and hot water in Moscow and the Moscow region.

Business challenges

Current reporting time for payroll and employee statistics (more than 20,000 employees) is slow,

which impacts the productivity of HR function

Process innovations

Centralized payroll processing for 20,000 employees based on SAP HANA technology – faster,

cuts down on errors, and requires fewer calculating resources

Contribution of SAP HANA

Meets requirements to performance and large volume of data

Value drivers/KPIs

Business user productivity

Innovation scope

SAP Business Suite on SAP HANA (now and

future)

E2E solution

Utilities – core human resources and payroll

Value potential 2

Feasibility 3

Low High

1 5

Low High

1 5


Reference utilities customer Summary validated scenarios (combined findings)

Feasibility

Bu

sin

ess v

alu

e

Me

d

Hig

h

Med High

HR

reporting

on SAP HANA

Sales and

operational

analytics on SAP

NetWeaver BW on

SAP HANA

Predictive

maintenance

Financial analytics

on SAP NetWeaver

BW on SAP HANA

Finance

reporting

on SAP HANA

Phase – deployment road map

1 Short term

EAM: Predictive maintenance: Predictive

maintenance for assets and facilities reduces

downtime and parts inventories while increasing

asset utilization.

CRM: Sales and operational analytics: Sell what is

available, merging information from multiple

LOBs in one real-time dashboard.

EPM: Financial analytics: Get real-time visibility into

profitability by segment and individual customer.

2 Medium term

FIN: Finance reporting: Existing environment

requires big efforts to collect AR data. There is a

need to optimize the process and make it more

transparent and fast.

HCM: HR reporting: Current reporting time for payroll

and employee statistics (more than 20,000

employees) is slow, which impacts the

productivity of the HR function.

SAP HANA Platform: customer specific SAP HANA products: SAP NetWeaver on SAP HANA , HPAs, apps powered by SAP HANA SAP Business Suite on SAP HANA

SAP HANA

use case

Legend

SAP Business

Suite on

SAP HANA

SAP HANA

products

SAP HANA

Platform

SAP HANA use cases mapped to industry value map end-to-end solutions


SAP Business Suite powered by SAP HANA Business value for each end-to-end process/implementable step

Line of business End-to-end process/implementable step

Finance

Financial performance management

Planning, budgeting, and forecasting

Profitability and cost analysis

Financial and managerial reporting

Accounting and financial close

Accounting and entity close

Collaborative financial operations

Receivables management

Payables management

Shared service framework

Enterprise risk and compliance

Access control role analytics

Human resources

Core HR and payroll

Payroll processing

Effective shared services delivery

Time and attendance management

Time and absence calculation

Workforce planning and analytics

Transactional analytics

Procurement Operational procurement

Manufacturing

Production Planning

Material requirement planning

Efficient manufacturing operations

Global plant performance management

Research and development and engineering

Enterprise portfolio and project management

Portfolio management (portfolio and project management)

Project management (portfolio and project management)

Project management (project system)

Supply chain Demand driven supply chain Supply chain monitoring Warehouse management

Sales, service, marketing

Marketing

Definition and execution of sales strategy, collaborative order to cash, collaborative sales force automation

Sales planning and monitoring (CRM), collaborative pipeline management, customer engagement intelligence, audience discovery and targeting

Sales

Multichannel marketing management, marketing operations, marketing demand management

Audience discovery and targeting, customer insight and segmentation, campaign management, marketing analytics and performance management

Service

Multichannel customer service

• Contact management with interaction center

Service

Asset operations and maintenance

• Asset planning and scheduling

Asset management Asset operations and maintenance

Asset planning and scheduling


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Asset operations and maintenance Asset planning and scheduling

Maintenance scheduling consumes a

great deal of time

High amount of master data

influences performance of data

maintenance

Manual and error-prone process of

preselection of maintenance plans

Potential to miss necessary objects

for maintenance calls

High number of maintenance plans

that need to be scheduled frequently

leads to a weekly scheduling scheme

Accelerated mass transactions

Instant analysis on top of

transactions

Preselection of due plans, speeding

up the process significantly

Real-time analytics on all data,

including machine sensor information

Scheduling of all maintenance plans

within a specific timeframe

Planning several times a day (instead

of once a week) results in

up-to-date scheduling information in

maintenance operations

Faster response times leads to more

accurate maintenance scheduling

Increase asset utilization

and reduce

unplanned asset

downtime

Maximize

Gain

asset uptime

up-to-date

scheduling

information on

maintenance

operations

With SAP Business Suite on

SAP HANA


Today


Asset portfolio and commissioning (1/2) Business value for portfolio management (SAP Portfolio and Project

Management)

Fact-based go/no-go decisions require

real-time information on the status of

the running projects and the project

proposals. Analysis for large portfolios

in the portfolio dashboards is time

consuming, leading to lack of

transparency.

Faster access to decision-making

information such as status, timeline,

and financials in dashboards

Accelerated comparison of running

projects and proposals in the

dashboards

Increase transparency for

decision-making

Improve speed of

aggregating

financial

information

Aggregation of financials, such as

actual or planned cost commitments

along the investment hierarchy, takes

a long time for large portfolios.

Outdated information on the

investment increases review efforts.

Manual editing of standard financial

KPIs such as net present value and

internal rate of return adds additional

tools and manual effort for portfolio

managers

Speeding up of aggregation of

financials along the investment area

hierarchy

Calculation of most important KPIs

based on values from financial

planning, removing manual calculation

With SAP Portfolio and Project

Management on SAP HANA


Today


Asset portfolio and commissioning (2/2) Business value for project management (SAP Portfolio and Project

Management)

Project members experience long

waiting times when starting the

project and task dashboards. This

reduces user productivity when

working on several projects and on

tasks across projects.

Updates on multiple tasks are

inefficient and time consuming as

project team members confirm tasks

one-by-one to reduce waiting times

Searching for documents across

projects takes a very long time for

large project portfolios

The process of finding projects,

tasks, and phases by responsible

project member is slow

Faster access to tasks and projects

Accelerated access to project, task,

and checklist items dashboards

Ability of project team members to

confirm times, status, and dates and

to attach documents for several tasks

at once

Increased user productivity

Accelerated search for documents

Ability to quickly find projects or tasks

by responsible project member

Increase user productivity

Reduce

Improve

time for task

confirmation

Search for

documents and

project elements

With SAP Portfolio and Project

Management on SAP HANA


Today


Procurement and order collaboration Business value for operational procurement

Missing real-time insight into

operational procurement reporting

Inability to dynamically create

operational procurement-related

reporting in a modern user interface

Slow and costly paper-based

processes

High transaction costs

Long running transactions while

posting documents with high volume

of line items

Frequent errors, yielding to maverick

spend

New configuration options for

procurement analysis

Modern and easy-to-consume user

interface

Complete visibility into end-to-end

procurement activities

Real-time insight and easy-to-

manipulate information

Accelerated long-lasting processing

of purchasing documents

Increase transparency

Lower

Increase

procurement

operations cost

process

effectiveness


SAP HANA


Today


Asset visibility and performance Business value for material requirements planning (MRP)

Decisions often based on periodic

MRP runs and outdated information;

process done in batches

Inability to replan quickly if conditions

change due to long run times.

Prediction of inventory coverage for

critical parts is difficult.

Inability to replan if conditions change

during the planning horizon due to

long run-times

Faster replanning allowing more

frequent MRP runs in shorter cycles

Instant reaction to demand changes

and updates to the supplier

Demand information propagated

faster through the supply chain

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees

Better synchronized material demand

and supply planning with reduced

bullwhip effect

Reduce out of stocks by

36%

Decrease

Limit

inventory and

safety stocks by

29%

bullwhip effect


SAP HANA


Today


Sales and customer service for residential customers Business value for contact management with interaction center

To successfully resolve customer

issues, companies need to be able to

quickly locate the right experts or

resources within the organization,

whether those experts work inside

the contact center or elsewhere

Managers and supervisors lack

actionable reporting and visibility into

the workload of their teams

High volume of customer records and

interactions results in increased

search times and greater difficulty

locating specific customer records

With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the most suitable employee roles

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees

Searches in the interaction center,

including account searches,

interaction history, and the customer

fact sheet, are significantly faster

Decrease average handling

time

Improve

Reduce

service-level

agreement

compliance

service cost


SAP HANA


Today


Financial performance management (1/3) Business value for planning, budgeting, and forecasting

Planning performance limited to

OLAP, staged cubes for transactional

and master data

Data load performance is driven by

the amount of data extracted from

SAP Business Suite

Reporting, loading, and retraction

performance limits planning iterations

Drilldown within OLAP cube, and

drill-through to SAP Business Suite

and OLTP data within standard times

Seamless replication of master and

transactional data from SAP

Business Suite

Availability of more granular data to

support planning

Big Data challenge is negated, and

allows for faster extract and DSO

activation times

Iterative planning and real-time

simulation are supported through

improved performance

Improved performance for drilldown

(expand) and consolidation (collapse)

Fast drill-through and live view of

transactional data in SAP Business

Suite

Improve service level

performance

Reduce

Minimize

cycle times and

manual effort

operating costs


SAP HANA


Today


Financial performance management (2/3) Business value for profitability and cost analysis

Data latencies and processes delays

impact the ability to react to issues

and opportunities

Lack of data depth and user self-

service affect internal decision

making

Long-running processes

Time-intensive data queries

Mostly manual data analysis

Substantial amount of time and effort

on processes that do not directly add

value

Suboptimal resource efficiency and

effectiveness

Timely execution of critical business

processes supports decision making

and increases the ability to act swiftly

(insight-to-action) in dynamic market

environments

Critical transactions and calculations

run quickly

Response times on queries are

instant

Prebuilt analytics automate the data

analysis process

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support


performance

Reduce

Minimize

cycle times and

manual effort

operating costs


SAP HANA


Today


Financial performance management (3/3) Business value for financial and managerial reporting

Risk of noncompliance due to

unfulfilled (overruns in) audits

A lot of data; decision-relevant

information not readily available

Data analysis not supported or

automated

Long-running batch jobs/reports

Time-intensive data analysis

Large number of time-consuming,

and non-value-added processes

required to access and provide

accurate, up-to-date information

Timely execution of compliance-

relevant validation tasks

Increased end-user satisfaction

(accurate, detailed, visualized, timely,

and actionable information)

Acceleration of key critical-path

processes and reports

Instant response time on most data

analysis queries

Elimination of workarounds and data

latencies

End-user data analysis through self-

service means


performance

Reduce

Minimize

month-end

closing time

operating costs


SAP HANA