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8/11/2019 Enablement of Analytics and Cloud Blueprint for Future Utilities_distributech v1
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Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation
Blueprint for future utilities -Enablement of Analytics & Cloud computing
Authors: Jayaprakash Ponraj, Paul Yin, IBM Global E&U CoC
Ajit Tawde, IBM, Global E&U GD
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Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation
Introduction
What are utility industry challenges and trends?How technology could make an impact?What are the benefits utility should target?Analytics for utilities our point of viewCloud for utilities our point of viewKey considerations on smart grid solution architectureKey considerations on implementation plan & requirements
What are next steps?
Agenda
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Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation
Introduction
Challenges for managing electrical utilities
Discuss how the emerging technologies like analytics and cloudcomputing will impact the way utilities would operate and service thecustomer in future
Exploit convergence of technologies to bring benefit of operating costsreduction, improved customer satisfaction and earn goodwill fromregulators
Discuss key solutions architecture and implementation considerationsincluding information security
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Challenges & market forces shaping the utilities landscape
IMPLICATIONSThe traditional utility businessmodel is upended; new businessmodels and alliances will berequired to sustain revenuegrowth
ConsumersConsumers want the same highlevel of service from energyproviders as from otherconsumer-oriented companies
Threats to RevenueEnergy efficiency, slowereconomic growth, and newentrants negatively affecthistorical patterns of demand
InformationUtilities now have to manage ahuge volume, veracity, velocityand variety of data from bothexternal and internal sources
Data and analytics move from aback-office competency to acritical profit enabler, requiringinnovation in the front office
Innovate, partner, or diebecomes an unspoken mandateas new entrants reach outdirectly to consumers andbypass energy providers
Convergence of Information Technology and Operations Technology
Threats to RevenueEnergy efficiency, slower economic growth, and new entrants negatively affect historical patterns of demand
Smart appliancesbecome ubiquitous
Consumers can easily sellsurplus energy to the grid orcontract with a third party
Regulatory environmentallows new businessopportunities
Battery technology willbecome increasinglyavailable
Electric vehicles are affordable,& utility-sponsored purchasingprograms are available
Microgrids emerge whereexisting infrastructure isinsufficient
Consumer-owned generationis affordable for the averagehousehold
Home energymanagement systemsare inexpensive &prevalent
4
Evolving UtilityBusinessModels
Ageing Assets& Workforce
New Entrants,DisruptiveTechnology
Regulatory &Social Pressure
ExponentialData Growth
Climate Change& EnvironmentConcerns
MARKET FORCES
CHALLENGES
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GridPlanning
EnterpriseAnalytics
RegulatoryCompliance
GridOperation
Field Service /MaintenanceCustomer
service
CustomerDemographics,usage patterns
SocialCustomer sentiment
GridEquipment, sensors,
smart meters
GenerationTradingpartners,capacity,
generationschedules
Eventsweather, local
events
GeospatialLocation
information
One grid, multiple stakeholders and solutions, variety of datasource and type
Leveraging all these data regardless of source or type or current
usage by utilities is essential5
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Typical usage patterns of data for utilities
Grid Operations
Utility company in Italy
How can I detect and act onpower outages before
customers call?
Captured and analyzed data fromgrid sensors for a comprehensive
view of grid performance
99.9% faster problem diagnosis byproviding a comprehensive, near-
real-time view of the grid
Asset & WorkforceManagement
How can I anticipate assetfailures and predict the need
for maintenance?
25% improvement in crewutilization and 10% fuel savings
North American natural gasdistributor
Correlated data from multiplesources to better plan and deploy
inspection, detection, maintenance,
repair and replacement resourcesand personnel
Smart Metering
How can I use smart meterinformation to improve
customer service?
North American utility
Analysis of Time Series energyusage, flag & event data combinedwith other customer asset & work
data
Saved $176M as a result of capitalinvestment & operations savings
6
Utilities are progressively transforming and indorsing tangible
benefits
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Typical examples of ongoing analytics programsExamples:
Time of Use and Demand Response programs Customer Segmentation and individualized programs
Outage restoration and customer notification
Capital planning & budgeting Revenue assurance Improved supply chain and logistics Real-time dashboards
Optimized asset performance Predictive asset maintenance Distributed generation integration Workforce management optimization
Operational, financial and environmental risk visibility Policy and compliance simplification Fraud identification Assessment of asset infrastructure
Grow, retain andsatisfy customers
Manage risk, fraud ®ulatory compliance
Increase operationalefficiency
Transform financialprocesses
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Turning the vast amounts of data collected into usable and
actionable insight are bringing new opportunities
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright MassachusettsInstitute of Technology 2011Source: 2011 State of the U.S. Business Analytics Software Market: End-User Perspective by Vertical Industry and Company Size IDC, June 2011Outperforming in a data-rich, hyper-connected world , IBM Center for Applied Insights study conducted in cooperation with the Economist Intelligence Unit and the IBM Instituteof Business Value. 2012
2.2x
Analytically sophisticatedcompanies outperform
their competition
more likely tooutperform industry
peers 260%more likely to betop performers
Harnessing Data presents a significant newopportunity for E&U companies
Typical meter readings per day tomanage distribution grid500 millionSmart grid instrumentation,social media data, smartdevices, location data, etc.80 %
datagrowth
Weather modeling data foroptimizing siting &performance of wind turbines4 petabytes
V o
l u m e
V e
l o c
i t y
V a r i e
t y87%
of utilities hadinvested in
business analytics;over 1/3
demonstratedpositive net results
Analytics has evolved from initiative to business imperative
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Why & how cloud would impact utility business?
Cause
Rise in substitutes for thetraditional franchise model
Regulatory and marketchange create uncertainty
Above all, there is acontinued resistance to rateincreases
BusinessTransformation
OrganizationOptimization
Cost and resource constraintsrequire utilities to do more withless
Focus on customer engagementand aligning services tocustomer needs
Develop new business servicesor seek new or geographicalexpansion
Impact
Enables Transformation
Drives Need
Cloud will be a keyenabler for thistransformation. It
Improves Agility Cost Flexibility Business
Scalability Market Adoptability
These business trends will drive transformation in the organization
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Emergence of cloud
1/4 thOf the worlds applicationswill be available in thecloud by 2016 .
50%Of large enterprises willhave hybrid clouds by2017.
85%Of new software is nowbeing built for thecloud.
Invest in cloud to date tobuild cloud capabilities.
Invest in Data centerexpansion
Focus on High
Revenue Cloud Deals
The emergenceof cloud istransformingbusiness and ITprocesses
SystemIntegrators areremaking theera of cloud
Utility organizations have already focusing to benefit fromcloud based investments
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What typical benefits utilities should target from thesetechnologies & changes?
Analytics Cloud
Improve reliability
Improve efficiency
Reduce outages & durations
Integrate Distributed Energy Resources
Increased participation of Customer
Effectively manage ageing asset systems
Better utilization of assets
Better utilization of workforce
Improved Capital Planning and cashflow
Reduce operational expenditures
Minimize losses
Improve customer satisfaction and retention
Leverage information to increase customer insight Establish a trusted relationship with regulators
Ensure regulatory compliance and reporting
Customer
Satisfaction
Regulatory & goodwill
ApplicabilityTypical BenefitsBenefit Area
OperationalExcellence
FinancialPerformance
Utilities advance greater transparency into metrics achievedper stimulus quickly
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Analytics for utilities our point of viewData is emerging as the utilities newest resource for competitiveadvantage, as the value of data continues to grow currentsystems wont keep pace.
Analytics are key to unlocking insights into high volumes of data(e.g., real time grid data)
Business value driven analytics would influence the utilitybusiness rather than discrete applications or software packages.Disruption occurs more rapidly, utilities management are
sensitive to value realized per spend
Decision-making is moving from the elite few to the empoweredmany. Utility organizations maturity level changes withtransformation progress. Utilities would expect flexibility innumber of users empowered on any specific analytics
depending on their current maturity
Increase in need for business user friendly analytical solutionsand focus for reduction of dependence on highly skilled ITexpertise increases self empowerment
Analytics isindispensable notjust for utilitytransformation, butfor sustenance ofcurrent business &maturity
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Cloud for utilities our point of view
Early cloudadopters will haveadvantage asbusiness
transformationoccurs and industryconcerns diminish
Cloud would enable the desired express deployment ofanalytics & other applications that transform the utility business
Cloud would help to reduce time to value, increase the appetite
for risk taking and thus accelerate the innovation drive
Focus on increased intelligence, modeling, forecasting,predictive analysis will be improved with the availability of dataaccessible over cloud by user with 360deg perspective attracts increased response by researchers and students
Integration of public and private clouds with backend systemsthat will create effective hybrid environments would createdemand for development of large middleware deals & services
Maximization of cloud efforts will need innovation andreinvention of core business processes
Adoption to interoperability standards and high attention end-to-end security & data privacy is mandatory
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LoadForecasting
Mobileworkforce
Asset Mgmt.
OutageMgmt
Warranty /Quality
SCADA
ERP/ MRP
EAM
SocialMedia
DCS
Telematics
Grid
Information Integration & Governance
SystemsSystems SecuritySecurity
On premise, Cloud, As a serviceStorageStorage
What actionshould I
take?Decisionmanagement
Landing,Explorationand Archivedata zone
EDW anddata mart
zone
Operationaldata zone
Real-time Data Processing & Analytics What ishappening?Discovery and
exploration
Why did ithappen?
Reporting andanalysis
What couldhappen?Predictive
analytics andmodeling
DeepAnalyticsdata zone What did
I learn,whats best?Cognitive
I n t e r n e
t s c a
l e m e s s a g
i n g
New/EnhancedApplications
All DataKey considerations for cloud based typical analytics architecture
Monitor the performance ofequipment and assets during
operation
Predict an equipment failure andavoid an outage
Recommend preventativemaintenance
Consolidate grid data for a360 degree view of the grid or
generation plant
AMI
DistributionMgmt.
Discover and navigate throughstructured and unstructured
data across the entireenterprise
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One size does not fit all, especially for utilities
The attributes of dynamic clouds should be aligned best to the
needs of the industry
Private CloudBenefits:
Aligns to capital expenseconsiderations
Fully customizable Different build/operate models
Robust management
Secure by design
Maximize return on existing ITinvestments
Aligns to Capital Expense
Enables Op Ex services tocapture benefits of public cloud
Configured to meet yoursecurity needs
Balance the security benefitsof private with the on demandvalue of a public cloud
Benefits:
Low entry cost
Pay-per-use
Highly elastic Op Ex focus
Focal point for Op Ex alignedservices
Dynamic Hybrid
Public Cloud
Hybrid Cloud+
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Other energy & utility industry considerations
Security, capital recovery model & changing attitudes
would influence implementation approaches
Energy providers are subject totight regulations which governcompliance in both data security
and privacy
Many providers in the utilityindustry prefer capital
expenditure investment fortheir IT needs
Gradually c hanging regulations
and market pressure will increasecloud value and activity
Security & DataPrivacy
Capital Recovery
Model
In the near term, primaryadoption will be privateand hybrid models
ChangingAttitudes
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Generation andDistributed
Energy Resources
Substation / DistributionAutomation
Field Devices(sensors, fault,locators, powerquality devices)
Field Devices suchas IEDs / RTUs
Field Devices (forPhysical security,
Fire,intrusion protection
Metering Subnet Other Control Center F i e l d
D e v
i c e s
C
o m m
E&U Industry standard based Operation Service Bus
Control Center
DERGateway
SCADAGateway
ICCPGateway
Device SpecificGateways
VideoGateway
Multi VendorHead Ends
Utility Communication Network MPLS / IP
O p e r a
t i o n a
l T e c h n o
l o g y
I n t e g r a
t i o n
SCADA /EMS DMS/OMS
Physicalsafety &Security
Enterprise Service Bus
WFM AM GIS CIS CustomerPortal TCS/IVR
MiddlewareBridge
E n
t e r p r i s e
MDM OMS MarketOperations
Network Element Management
Commun.NMS
DeviceManagement
61850 SCLgateway
SNMPgateway
AMI NMS
ProprietaryGateway
Choice of these applications can be either on enterprise servicebus or operational service bus depending on as-is scenario
Potential candidates for cloud solutions
Applications & integrations offered on cloud in energy & utility industryare growing more rapidly
17
C l o u
d
c a n
d i d a
t e s
C l o
u d
c an
d i d
a t e s
Historian
DER
Ref. DataModel
Real Time Proprietary Bus
Planning Engineering Protection PerformanceManagement
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Typical portfolio of cloud solutions
Development& DevOps
Big Data &AnalyticsSecurityMobile
Business Processas a Service
Automating Business Innovation
Marketplace of High Value Consumable Business Applications
Rapid App Development through Composable and Integrated PlatformBuilt using open standards
Enterprise Class, Optimized InfrastructureBuilt using open standards
Integration TraditionalWorkloadsIntegration/API Mgmt
Compute Storage Networking
Procurement PaymentProcessing Help Desk AccountingRecruiting
Commerce SupplyChain AnalyticsTalent
ManagementCollaboration IT
ManagementMarketingSoftwareas a Service
Platformas a Service
Infrastructureas a Service
18
Collect & managesmart meter data
smart meteranalytics
Collect & manageGrid sensor data
Grid Planninganalytics
Grid OptimizationanalyticsBusiness
Processes
Cloud solutions to help customers achieve anticipated business
outcomes, no matter where your entry point is.
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What next?Engage with different stakeholders including smart grid cloudconsultants, system providers, investors and researchers to buildtarget portfolio of analytics & cloud to maximize potential benefits
Create target reference architecture including middleware (integrationbus), cloud and analytics with detailed specification of systemcapabilities
Target to develop in-house senior level professionals with industrybackground (both OT & IT skills), standard maturity andunderstanding of security for effective cloud environmentmanagement & work to optimize business processes
Gain support from regulators and ensure to document target businessmodel of future which will help shape analytics and cloud architectureand capabilities
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Backup
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Author profile
22
Dr. Xiaodong (Paul) Yin Brief Description of Projects and Associated Responsibilities
Executive SummarySenior Managing Consultant in aspecialist group of industry subject matterexperts in Transmission & DistributionSystems20 years experience in design anddelivery of energy, distributionmanagement systems projects, complexInformation & Technology projects inPower Industry
Relevant experienceReal-time Grid OperationsSCADA,EMS,DMS,OMSAMI, MDM, EAM and System Integrations
Prior ExperiencePast working experience with SiemensT&D and ALSTOM GridTPDDL SG Pilot Project, ENMAX,CenterPoint Energy, Progress Energy,Puget Sound Energy, Luminant, ERCOT,ISO New England, etc.
EducationPhD in Electrical Power Engineering
Paul Yin is a Senior Managing Consultant in the IBM Global Center of Competence for Energy & Utilities. He is a SmartGrid architect specializing in Grid Operations, AMI, MDM, EAM and system integrations.
Paul has over twenty years experiences in design and delivery of complex information and technology projects in electricalpower industries. Paul has deep subject matter expertise in the following specialties: power system engineering, SCADA,Distribution management system (DMS), Energy management system (EMS), Market management system (MMS), Outagemanagement system (OMS), Advanced Metering Infrastructure (AMI) and Enterprise Asset Management (EAM).
He gained this expertise through work as a consultant with IBM and as a project engineer with Alstom Grid and SiemensT&D. His utilities experience includes TPDDL, ENMAX, CenterPoint Energy, Progress Energy Florida, Puget SoundEnergy, Luminant, ERCOT, ISO New England, PG&E, CAISO, etc.
Paul started his career in 1994 as an R&D Engineer with the Belgian Nuclear Research Center. He has Ph.D. in ElectricalEngineering from the Universit Catholique de Louvain, Belgium and speaks English, Chinese and French.
Smart GridArchitect,E&U CoC
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Author profile
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Ajit Tawde Brief Description of Projects and Associated Responsibilities
Executive SummarySenior Managing Consultant in Global BusinessServices
22 years experience in IT, predominantlyinEnergy & Utilities sector focusing on SmartGrid projects.
Relevant experienceTPDDL ADR PilotDistributed Grid Monitoring asset developmentTechnical sales consultant discomsAdani Power
Prior ExperienceComputer Science Corp.TCS
EducationBachelor of Engineering in Comp Science
Ajit is a Senior Managing Consultant in the Global Delivery center of IBM India.
Prior to GBS , Ajit was working as solutions architect in sales division focusing on E&U &Smarter City domains.. He worked on RfI responses & technical solution for multiple R-APRDP tenders.
Ajit was Industry Leader in GBSC managing team of technical & domain experts whichcreated software assets for multiple utilities solutions like low voltage grid monitoring,meter data analytics, SCADA data analytics.
IBM IndiaGlobal BusinessServicesIndustryConsultant E&U