Herding Cats in the Digital World

with you

Herding Cats in the Digital World

David DuCharme, Victor Jimenez Mike Swatek

Oracle OpenWorld | 29 September 2014

2 Copyright © 2014 Capgemini. All Rights Reserved

Presenters

David DuCharme, VP NA Utilities, Capgemini David leads the Utility practice in North America for Capgemini. He brings many years of

experience in the energy industry covering a wide range of initiatives including multi-state utility mergers, the reorganization of several state run utilities, the rollout of smart meter/smart grid across North America and most recently operational excellence.

Mike Swatek, Enterprise Information Architect, Pacific Gas and Electric Mike joined PG&E to lead Enterprise Information Architecture in 2012 after developing and

implementing an Information Management and Business Intelligence strategy for Bank of Hawaii that contributed to substantial performance improvements across the bank, helped to minimize the impact of the banking crisis of 2008 to Bank of Hawaii, and contributed to Bank of Hawaii being chosen as the Nation's Best Bank by Forbes Magazine in 2009 and 2010 and number two in 2011.

Victor Jimenez, Energy & Utilities Executive, Capgemini Victor has 20 years of experience in the utility industry. In his current role, Mr. Jimenez leads

Capgemini’s utility analytics and Oracle solutions. Prior to joining Capgemini, Mr. Jimenez held positions as an executive at Oracle and senior technology roles at a utility.


Agenda

Digital Utilities Transformation

Challenges

Analytics

PG&E Story


Digital Utility Transformation (DUT): The changing digital relationships at two ends of the utility value chain

Customer and External Market

Assets and People Backoffice

Transformation Transformation

Rationalization

= Application Count Across the Value Chain

Companies that embrace digital transformation

financially outperform their peers by 26% - Digital Transformation Study

Conducted by Capgemini and MIT

Enterprise Wide Data Layer


Some industries are more mature than others…

Average industry maturity*

* Average maturity of industries for which we received at least 20 survey responses

Telecomm

High Technology

Banking Retail

Travel and hospitality

Consumer Packaged Goods

Pharmaceuticals

Insurance

Utilities

Manufacturing

Telecomm

High Technology

BankingRetail

Travel andhospitality

ConsumerPackaged Goods

Pharmaceuticals

Insurance

Utilities

Manufacturing

DIGIRATI FASHIONISTAS

BEGINNERS CONSERVATIVES

Digital inten

sity

Transforma>on management intensity


Every Industry has Digital Leaders

“Utilities are in great majority conservatives"

“There is a great consensus around the transformative

potential of Digital Technologies, although with limited hope for significantly

increasing revenue"


Key messages from the Utilities sample

1)  Utilities have only started adopting digital technologies in specific areas such as the customer experience. Our European retail benchmark shows that customer satisfaction and optimized channel mix (3 at the most) are necessary for reaching low cost to serve

2)  Analytics is not widely used in either customer or operational applications

3)  Untapped opportunities may exist in worker enablement and process digitization

4)  Data and integration issues may present challenges in other areas

5)  Utilities’ digital transformation management practices are relatively more mature than their use of digital technologies


Digital transformation opportunities for Energy retailers

Proactive listening to the

market

Digital Processes

Customer Behavior

understanding

Customer Self services

Personalization of services

Correlating competitor rates against churn and monitoring social media

Improve Internal experiences that

enhance customer engagement Analytically led service

Collaborative working with the customer in the

field

Consumption through smart metering and

design specific offerings

Customer

Field Staff

Back Office


5 major technology trends drive the digital transformation with composite solutions addressing business opportunities

Collaboration Internet

Appification

BPM

Intelligent devices

BPMS Big data

Cloud

Mobility Composite Digital

Solutions

Customer Experience

Business model

Operational Process

accelerating with you

Analytics


Capgemini’s H-model Architecture is fundamental for DUT: Enabling Speed of Digital Innovation

The H-model distinguishes the robust application layer and the agile interaction.

Security Layer

Governance Layer Orchestration & Integration Layer

Application & Data Layer

Channel Service

Personalization & Interaction Layer Insight Layer

Robust Application Layer

Agile Interaction Layer

Indu

stria

lizat

ion

Cos

t red

uctio

n

Spee

d

Valu

e

Systems of Records

Systems of Differentiation

Systems of Innovation

Indu

stria

lizat

ion

Cos

t red

uctio

n

Spee

d

Valu

e Overall

Objectives


Oracle Utilities Study – Revisited

Enablers Barriers Cloud

Readiness

Customer Value

1.  Meter 2.  Outage 3.  SCADA 4.  Customer

Operational Value Skills

Source: Oracle Study 2013 “Utilities and Big Data: Accelerating the Drive to Value”

Data Required


Study Revisited – Where are we now?

Drivers

Use cases and data sources define value proposition of analytics solutions especially when resulting in operational efficiency

Smart Meter programs are a catalyst for change but others have emerged (assets, pricing, customer, cross-functional)

DW Enrichment

Big data does not replace DW but is complementary. Tools

Centers of Excellence and new analytics organizations (business and IT) are emerging

Governance and Change Management has emerged as a key requirement

Big Data Definition has changed for utilities – mostly focused on hadoop implementations and Information Management maturity

Trends Visualization, self-services, Data Lake, predictive, real-time and operational / events

Skill barriers are still there although mitigated by technology: cloud, engineered systems, data models.

Enablers BarriersCloud

Readiness

Customer Value

1. Meter2. Outage3. SCADA4. Customer

Operational ValueSkills

Data Required

Peop

le


Enablers – Big Data

Big Data Appliance is Engineered for Savings

Big Data SQL

It’s not just about a hadoop implementation


Enabling DUT (analytics) across the value chain

Customer and External Market

Assets and People Backoffice

Transformation Transformation

Rationalization

Enterprise Wide Data Layer

Generation Electric Gas Customer Procurement Corp Services

How do we solution across all business units? How do we minimize data silos?

How do we fund the enterprise solution?


How do we proceed?

People and Transformation !  Develop an analytics strategy !  Center of Excellence, analytics organization

Big Data initiatives !  Smart Grid or Smart Meter !  Pilots and POCs

Data warehouse enrichment !  BI technology upgrades to achieve strategic goals !  Rationalize BI technology components

1 0 0 1 0 1 0

0 1

0 1 1 1 0

1 0 1 1 0 0 1 1 1 0 1

0 1 0 0 1 1 0 1 1 0 1 0 1 1 0 0

1 0 1 1

accelerating with you

PG&E Story


PG&E Analytics Journey

We’re starting with … !  Hundreds of data silos, thousands of data files,

tens of thousands of Excel workbooks. !  No data inventory, metadata, business glossary !  Data is not integrated or correlated !  Poor quality, unreliable, often late data !  Limited analytics tool expertise !  Basic BI is very manual and labor intensive !  BI, analytics and data are not trusted; opinion

drives decisions

But we want … !  Real-time situational awareness !  Situational Intelligence !  Predictive asset management !  Grid & pipeline risk modeling !  Predictive outage alerting !  Volt/VAR control & optimization !  Short/Medium/Long-term demand forecasting !  Emergency response modeling !  Reduce operating and project costs !  Accelerate time to market

1 0 0 1 0 1 0

0 1

0 1 1 1 0


The Digital Utility

Data is the life-blood of the Digital Utility


Analytics Vision

!  Develop competency in 3 Core Capabilities for Analytics Success

!  Align Roles of Business and IT –  IT’s Role: Provide trusted

data and analytics tools to the Business

–  Business’ Role: Develop and apply information to high-value decisions and processes

!  Establish Analytics Center for Excellence

!  Establish Enterprise Information Governance

Enterprise Information Governance

Data

Management & Analytics

Analytics Center for

Excellence

Bus

ines

s

IT

Today Target

Information-driven Culture

Information Factory

Data Management

PROCESS PEOPLE TECHNOLOGY

Ana

lytic

s D

evel

oper

s

Bus

ines

s

IT


Where are we now?

Underway … !  Data Management and Analytics Strategy !  Strategic plans are gaining support !  Influencing some key projects:

!  STAR !  GOSI !  IKON !  STDF

!  Data Management & Analytics Organization !  Analytics Center for Excellence !  Enterprise Information Governance

On the horizon… !  Inventory our data and data stores !  Consolidate into a few core platforms !  Virtualize to accelerate delivery !  Analytics sandboxes !  Monitor, measure, & assure data quality !  Advance our analytics skills and maturity !  Introduce new tools and methods !  Pervasive Intelligence !  Enterprise funding model


Contact Information

Dave DuCharme VP NA Utilities Leader [email protected]

Victor Jimenez Utilities Executive [email protected]

Mike Swatek Enterprise Information Architect [email protected]

The information contained in this presentation is proprietary. Copyright © 2014 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With almost 140,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion.

Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organizat ion, Capgemini has developed i ts own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com.