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AAUM Confidential

Analytics for

Water Utilities

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Corporate profile

Founded by IIT Madras alumnus having extensive global business experience with Fortune 100

companies in United States and India having three lines of business

Prof Prakash Sai

Dr. Prakash Sai is professor at the Department of Management Studies, Indian Institute of Technology Madras. He has wealth of international consulting experience in Strategy Formulation

Puneet Gupta

Puneet spearheads the IFMR Mezzanine Finance (Mezz Co.), is strengthening the delivery of financial services to rural households and urban poor by making investments in local financial institutions.

Padma Shri Dr. Ashok Jhunjhunwala

Dr. Ashok Jhunjhunwala is Professor at the Department of Electrical Engineering, Indian Institute of Technology Madras India. He holds a B.Tech degree from IIT, Kanpur, and M.S. and Ph.D degrees from the University of Maine, USA.

Analytics

• Appropriate statistical models

through which clients can measure

and grow their business.

Competitive Intelligence

• Actionable insights to clients for

their business excellence

Livelihood

•Services ranging from promotion of

livelihoods, implementation services,

livelihood & feasibility studies.

Key Focus Areas in Advanced analytics and Predictive analytics

Product – geniSIGHTS (Analytics/BI), Ordo-ab-Chao (Social Media)

More than 25 consulting assignments for Businesses & Govt orgs

Partnership – Actuate, IIT Madras, TIE and 3 strategic partnerships

Dedicated corporate office at IIT Madras Research park since 2009

Aaum’s office, IIT Madras Research Park

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Competencies in

Advanced analytics

Build appropriate statistical models through

which clients can measure and grow their

business.

Expertise in

• Digital Media

• Finance/Insurance

• Retail

• Entertainment

• Human Capital

• Government organizations

• Research & training

Competitive

assessment

Competitive intelligence

Provide actionable insights to clients for

their business excellence.

Expertise in

• Business Entry

• Business Expansion

• Market research

Livelihood

Perform livelihood services ranging from

promotion of livelihoods, implementation

services, livelihood and feasibility studies.

Expertise in

• Government

organizations

• Non Government

organizations

• Corporate with livelihood

focus

• Research

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AAUM’s capability in analytics stems from expertise to extract insights from data sources with the

ability to develop advanced models aided by actual understanding

Data sources

Business

Rules

formulation

Analytical

model development

Analytical Advantage Using Mathematical modeling

Secondary

research

Client Primary

research Census

Research

firms

Statistical Tools

R (Statistical

System)

WEKA (Machine

learning software)

SPSS (Multivariate

Statistical Analysis)

SAS (Data mining,

Statistical, and

Econometric

modeling)

Analytical Advantage

Profiling &

Segmentation

Product

/Process

performance

Product

/process

innovation

Valuation,

Loyalty & life

time

Market Intelligence | Finance | Retail | Telecom | Supply Chain |Utility | Consulting

Client

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Our Analytical services includes:-

Services

Cross and up selling Analytics

Collection Analytics

Rewarding Analytics

Customer Analytics

Metering Analytics

Complaint Analytics

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“Organizations are competing on

analytics not just because they can-

but because they should…”

Thank You

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Cross selling / up selling

An effective method to manage a growing customer base is the ability to under-

stand the increasing and needs of customers through past interactions with them.

Thus it enables the utilities to:

•Increase customer loyalty by offering them appropriate service for them

•Increase revenue from existing customer base

Methodologies:

Cross/Up Sell Model Data mart.

Data required:

• Customer, Contract, Account

• Services, Plan data

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Complaints Analytics

Customer Complaints Analytics (CCA) Platform is a turnkey solution that identifies the root cause of the customer complaints and predicts the future trends.

CCA Platform helps the utility providers in:

•Identifying the critical pain areas of the customers in various target segments, resolution of which reduces expenditure on customer care, reduces customer churn and increases customer satisfaction and loyalty.

•Monitoring customer care executives’/agency’s performance and tracking resolution time.

•Identifying the root cause of the customer complaints.

Methodologies:

Granularly segregating the complaints data on a common taxonomy, based on a standard lexicon of definitions of terminology and types of complaints.

Qualifying the raw data in more granular terms by adding parameters like severity of problem, periodicity of occurrence, type of fault detected etc

Run statistical analysis across parameters and help derive intelligent insights from the data either as predictive models, or as behavior model or segment the data into intelligent patterns

The system identifies new issues in the field and flags higher-than-normal rate faults and notifies the appropriate analyst to let them know there is a problem that needs investigating.

Data required:

customer care complaints database.

complaints on the water database.

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Collection analytics

Analyze the credit history and behavior patterns of various customer segments as

well as the performance of various collection agencies/methods to determine which

collection agencies are suitable for different customer segments.

Methodology:

Collection model data mart

Data required:

Customer, Contract, Account, Services, Plan data

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Customer Analytics

Customer Analytics provides a solution framework which helps utility firms to

classify customers under groups of individuals that are similar in specific ways viz,

spending habits, interests, age, gender, demographic patterns etc.

Methodologies:

Customer Segmentation for Trend Monitoring and Forecasting

Customer segmentation using decision tree

Marketing Response Analysis with Gains & Profit Charts

Data required:

Geographic variables

Psychographic segmentation variables

Behavioral segmentation variables

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Rewarding Analytics

Rewarding Analytics helps the firm to identify customers conserving water and

rewarding with attractive offers.

Methodologies:

In order to better analyze the performance, one needs to ensure following steps are

followed.

Gathering data

Analyzing data

Presenting information in a meaningful way.

Data required:

Customer database

Metering database

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Metering Analytics

Meter Data Analytics provides a mashup of Automated Meter Reading, CIS and GIS

data in a simple to use web portal for utility customers, customer service

representatives, engineers and executives to enable faster, smarter decision making.

Powel MDA delivers accuracy, end-to-end visibility and real-time control over

business processes related to smart metering.

Methodologies:

In order to better analyze the performance, one needs to ensure following steps are

followed.

Gathering data

Analyzing data

Presenting information in a meaningful way.

Data required:

Customer database

Metering database

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Most water utilities in England and Wales are classified as

The primary underpinning of these ratings is our view of low business risk in the

sector, which is characterised by:

A significant share of their profits coming from low-risk regulated activities;

Established and relatively transparent regulatory processes;

Strong and stable operating performance;

And strategic focus on owning and managing regulated water and sewerage assets.

BBB + A -

GRADE

Source: Utilityweek.uk/OFWAT

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Evolution of the UK water industry Driven by the need for integrated

planning and infrastructure investment

Early years

Over 1,600 Local Authority water and sewerage departments

30 Statutory ‘water only’ companies

1973 Water Act

Created 10 regional water authorities (but ‘poacher and gamekeeper’)

1989 Water Act

Privatized the water industry in England & Wales

Shares sold on LSE, proceeds to Government

Set up three national regulators - Ofwat, EA, DWI

DWI

COMPANY

EA

OFWAT

A Balance of Regulatory Tensions

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EXHIBIT 1

Regina Finn, Ofwat Chief Executive Officer said:

"We understand times are hard and we have listened to what customers have told

us. They want a safe, reliable water supply at a reasonable cost.

"People can shop around for the best deal on many things, but not water. That's

why we've challenged the companies' plans rigorously to ensure that customers get

the best value for money from the £21 billion of investment.

"Our proposals allow the companies to build on the successes of the past, keep

bills broadly stable and create a better environment.

"Our decisions allow efficient, well run companies to invest in the right place at the

right time for the right price."

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EXHIBIT 2

Ms Finn said:

"We've reduced bills, whilst allowing extensive investment of almost £21 billion.

Everyone will see real benefits as a result of our proposals.

"Not only will customers continue to receive a safe, reliable supply of water, but we

have worked closely with our partners to ensure our environment gets a better deal

too.

"Events such as flooding can seriously affect water supplies. We need to help guard

against that. Investment over the next five years will help keep the taps running by

reducing the risk of supply interruptions for around 10 million people.

"But it doesn't stop here. Once we finalise prices in November, we will continue to

hold companies to account by making sure they deliver on their investment

promises. Should they fail to do so we will take action."

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A Small Number of Key Water Companies

NORTHUMBRIAN

WATER

YORKSHIRE

NORTH

WEST

ANGLIAN SEVERN

TRENT

THAMES

SOUTH

DWR CYMRU (Welsh)

WEST

SOUTHERN

THAMES

WESSEX

Water and Sewerage Companies Water Only Companies