Smart Analytics for Utilities POV

8/9/2019 Smart Analytics for Utilities POV

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The need for a paradigm shift 1

The Partnership Model 6

Capgemini and Business Information Management 8

Table of contents


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4/12 1

The need for a paradigm shift

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5/12

At workWhile preparing for a weekly staffmeeting, the CEO of a large electricutility highlighted three key issues to becovered:

A Private Equity firm that wasinterested in taking the utilityprivate had for weeks been askingfor performance information;

The Public Utility Commission(PUC) was threatening a seven digitfine for non-compliance in theservice order performance reporting;

Calls from customers in the SmartMeter rollout pilot were pouring in,claiming 2X to 5X increases in theirmonthly bills.

As the CEO glanced around the room atthe staff, of an average tenure with thecompany over 25 years, he was amazedthat this collection of industry expertscouldnt solve some basic blocking andtackling problems. We just spent threeyears and US$50 million installing anew ERP. We have launched a Smart

Meter Pilot and plan to spend anadditional US$500 million rolling it outto the entire customer base. We haveimplemented a new 50TB, state-ofthe-art Storage Area Network (SAN) tostore all of this data. And you are telling

me we cannot answer some pretty basicquestions?

Its an all too frequent scenario.Utilities today are struggling to reactto this explosion of data which is aconsequence of the Smart Revolution.

A mature infrastructure burdenedwith an ever increasing demand andtechnology advances has resulted inexponential increases in data volumes.This is compounded as utilitiescontinue to make the grid smarter,

installing an average of four devices forevery meter monitored and this criticaldata must be collected, processed andstored.

In the 1980s and 1990s,telecommunications companies werefaced with similar challenges. Asnew technology was introduced,companies were inundatedwith new sources of data and had littleexperience of how to deal with it.They struggled to store and to process it(processing was a must for billing!) but

largely ignored proactively managingit and seldom thought to analyze itfor business benefit. And yet today,the telecommunications industry isone of the most analytically savvy inthe business world. Call detail (theirequivalent of utility Smart Meter orSmart Grid data) is a rich data set thatis mined extensively by their marketingdepartments with astounding results.

Utilities today must take promptaction to secure capabilities to interpret

consumer usage patterns and developcompetencies to forecast demand andplan generation. At the same timethey are faced with one of the biggesttechnology and data managementchallenges the world has ever seen. If

Business Analytics the way we see it

2

the industry treats the daunting task

of storing all this data as just anothercost of doing business, the storagevendors will be very happy and theutility customer will suffer. However,if utilities view the explosion of data asan opportunity to leverage informationfor competitive advantage and generateadditional revenue, they will bettercontrol the vital data elements of theirbusiness.

Is your organization prepared

for the future?

Here are some questions to consideras you think about the state of yourorganizations readiness to cope withemerging needs:

Have you been able to utilize yourdata repository to provide strategicinsights to different functional units,while containing costs? Or are yousimply storing the data?

Do you have a strategy in place formanaging and organizing the data tofacilitate analysis and enablebusiness decisions?

Do you have access to cross-functional data from operations,outage, customer and metering inone place as the basis for e-analysis?


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Is your operational and customerdata organized on legacy models oris it spread over disparate systems ortechnologies?

Are you able to interpret and

forecast the needs, preferences, anddynamics of your diverse customerbase to create a segmented, targetingapproach for rate plans and energyefficiency programs?

The future of utilities

Initiatives such as Automated MeterInfrastructure (AMI) and Smart Gridare sometimes likened to bringing theutility industry into the Internet age.Enabling direct communication withmetering devices opens up a realm of

possibilities for understanding usagepatterns that were not even registered,

3

let alone analyzed and leveraged withconventional manual meter reading.

The ability to measure and analyzedata about electricity distribution and

consumption on a more granular basis in time and in detail - can unlocksignificant value:

Unbilled consumption identified byfollowing the meter-to-cash trailcan generate incremental revenue.

Detection of theft and fraud in thegrid can reveal lost revenue.

Proactive maintenance of expensivetransformers and other such heavyequipment in the grid can savemillions of dollars by postponing

replacement to the future.

In order to realize such value fromthe data, it needs to be structured ina logical manner which representsthe business model. This strategicview is essential to ensuring that thedata is available to answer questionsposed by managers, executives andregulators, not merely stored forposterity.

Demand Response programs havebeen cited as a key business toolfor utilities to leverage this datafrom smart devices. Currently,such programs are already in use atCommercial and Industrial (C&I)organizations where they represent alarge opportunity for load reductionduring times of peak demand.

Using interval meters, utilities havehad visibility into C&I customersconsumption patterns.

With the installation of smart metersat domestic residences, utilitycompanies will need to implementsimilar demand response programs,

but on a much larger scale, entailingmuch more automation. Theadvantages to be gained include:

Analyzing the entire customer base

to find the customers most likely toparticipate in the Demand Responseprogram;

Analyzing individual customerusage behavior and aggregatedtrends during a Demand Responseevent; and

Educating residents about incentivesavailable to limit usage duringperiods of peak demand.

By working with customers enrolledin the Demand Response program to

lower the demand on the grid duringpeak periods, utility companies canservice all customers effectively. Theycan also avoid the costly alternativesof building peaking power generationcapabilities or buying additionalpower from the spot market.

In preparation for these and otherfuture challenges, it is time for utilitiesto adopt a customer centric view oftheir world and organize their

information accordingly, to supportthe needs of their increasingly vocaland social stakeholders the citizens.Online social networks ande-commerce, with industry leaderslike Google, Facebook, eBay and

Yahoo, have set high standards forcustomer service and user experience.Todays consumers expect theirutilities to evolve to the same levels,especially with the media attentiongiven to current smart infrastructureupgrades.It is imperative for utilitiesto take the long view and build arobust and competitive capability tomanage their information and supporttheir future business operations in anefficient and sustainable manner.


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Business drivers for Smart

Analytics

Demand Response To realize oneof the key benefits of implementingsmart technologies, utility companies

need to design and implementDemand Response programs thatenable customers to contribute toenergy load reduction during times ofpeak demand.

Revenue Management As requestsfor rate increases become morechallenging, companies need todemonstrate that business operationsare functioning optimally. Ensuring allmeters are accounted for and billedaccurately is essential to maximizing

revenue recovery. Utilities are findingproactive process monitoring to be thekey to quickly identifying unbilledand under-billed meters.

Fraud & Loss Prevention Utilitiesneed near real time information aboutloads to detect system energy lossesthrough fraud or theft. Suchcapabilities can realize significantfinancial benefits.

Energy Efficiency Utilities need tocreate, pilot, monitor and runprograms to educate consumersin their service areas about energyefficiency and conservation. Theseactivities will need to be supportedwith timely analysis and data-driveninsights.

Compliance Regulatoryrequirements drive the need forconsistent, complete and accuratereports on operational KPIs.Non-compliance could result incompanies incurring penalties.

Calculation and verification of demand response at a customer level

Identification of fraud/theft of power via bottom-up consumption analysis

Meter-to-Cash Analysis

Customer Usage Pattern Analysis

Service reliability and performance reporting to regulatory bodies

Transformer overload detection and circuit analysis

Extension of the life of assets via predictive and pro-active maintenance

Load profile characterization and definition for segmented customers residential and commercial

Calculation, verification and audit of assured load relief performance byload aggregators

Capacity Offset Forecasting for load reduction programs (like demandresponse and interruptible load control programs).

Example usage scenarios for Smart Analytics:

Asset Maintenance and Management The ability to identify potentialproblems in grid and power supplyequipment can extend the life ofexpensive assets and avoid unplannedservice interruptions.

Customer Care and Management Utilities are now expected to providecustomers with web-based interactivecapabilities to view and manageall aspects of their relationshipswell beyond the basic enrollment,billing, payment, and historical usage

information. Utilities need to developtailored pricing plans and provideincentives for customers to use energyefficiently.Forecasting and Load Management Accurate forecasting is essential totimely and economical demand andsupply management. Utilities need toleverage data on consumption, weatherand supply constraints to effectivelymanage their wholesale operations and minimize the need for expensivespot market purchases of power.

Potential impact*

Revenue Management:

Improvements of 2% - 4% of

annual revenues

Collections Management:

Improvements of 3% - 5% of annual

Accounts Receivable

Customer Management:

Cost improvements of 4% - 8% per

campaign

Demand response:

Reduction in peak load by 5%

Energy conservation:

Reduction in technical losses by 15%

Energy conservation:

Reduction of non-technical losses

by 50%

Outage Management:

First call resolution Improved by 50%

* Based on Capgemini experience


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How can Smart Analytics help

your business?

Smart Analytics offers utilitiesmultidimensional support acrossfunctional areas and providesan integrated platform for thedeployment of business intelligence. Itpushes actionable intelligence to alllevels of the organization.

Key benefits of Smart Analyticscapabilities include:

Improved interfaces and decisionsupport in the form of interactivedashboards, reports and ad hocquery tools to analyze data fromdifferent business areas in a single

reporting solution thus providingcross-functional business insightsnot previously available.

Improved ability to analyze andunderstand customers energy usepatterns, via segmentation

Ability to educate customers on thefinancial and environmental impactsof their energy usage via interactivetools and portals.

Robust and scalable data modelsolutions for utilities (uLDM)

developed by Teradata that ensuredata accessibility, enable reusecomprehensive documentationresulting in time and cost savings.

Monitoring and analysis solutionslike Demand ResponseManagement, Time of Use (ToU)billing, Predictive AssetMaintenance.

Exploratory analysis of rate casestudies, and energy efficiencyprograms

Interactive Dashboards

Meter to Cash Decomposition Analysis

Hot water $13

Other $11

Lighting $10

Food Storage $9

Cooking $1

Heating $2

How does my home use energy?Electricity Costs 04/16/2009 to 05/15/2009

Analyze My Appliances

My Carbon Footprint

How does my home compare?Electricity Costs 04/16/2009 to 05/15/2009

UsesLeast

Energy

How does my usage compare?

Usage Comparison

Electric Use (KW/h)

$320$350

May 2008 May 2009

UsesMost

Energy

$58Avg. Home

$46My Home

My Carbon FootprintAccount Overview Bill & Payments My Energy Usage My Devices My Profile

MANAGE SUPPORT

Offset Now

To offset some of your carbonfootprint, select Offset now

YOUR FOOTPRINT

U.S. AVERAGE

WORLD AVERAGE

17.35 Tonnes

20.40 Tonnes

4.00 Tonnes

My Energy Analyzer

REBATE PROGRAMS

ENERGY DIRECTORY

ENERGY ANALYSIS

Solar RebateWinterizing RebateWindow Rebate

Find a product or servicesupplier in your area

Home Profile Questions

Scope Filters

Premise Type

Region

Utility Type

Periods

Feb10

Electric

North

South

East

West

C & I

Residential

$15,360,915 $1,801,420 $17,162,335Current Peroid Past Peroid

Total Invoiced Amount for the Period

Total Meters Installed

Current Period

Dollars (USD)

Units

150,000

Zero ConsumptionActual roads Estimated roads

Roads

Invoices

Meters Invoiced

Previous period Roads - Invoiced In Current Period

Zero ConsumptionActual reads Estimated reads

Meters Invoiced Invoices pending validation Meters not invoiced

Roads

Invoices

Meter Roads

Route CycleAssignment

Roads Collected Roads Not Collected Roads AMI Not Responsive

Met ers A ss ig ne d t o Rou te Cyc le Not A ss ig ne d t o Rou te Cyc le

147,450 2,550

137,542 2,825 7,083

130,354 2,88514,211

121,468 3,002 5,884

15,287

1,208 95813,121


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Strategic partnership enhancesthe speed of delivery for analyticalsolutions and helps create operationalefficiencies while reducing risks.Partnering provides the toolsets

to deliver solutions tailored to ourclients varying requirements anddisparate systems.

Our partner Teradata is a globalleader in enterprise data warehousingand analytic technologies, providingaffordable, powerful, and easy-to-deploy solutions for organizations ofall sizes.

Key partnership solutions include:

An analytical platform from Teradataenabling utility companies toevaluate usage information fromSmart Meter technology alongside

their Customer, Operational andFinancial information in order togain new business insights.

Linear scalability that allows eventhe largest of data sets to be

analyzed.Historical information analysis usingTeradatas ability to store dataautomatically and economically byhow often it is accessed (i.e. hot/warm/cold data).

Utility Logical Data Models (uLDMfrom Teradata) that provide a robustand flexible map demonstrating howdata attributes are related across theenterprise. and facilitating enterprisebusiness intelligence platforms.

Centralization of data for analysis

and reporting.

The Partnership Model

PARTY

EVENT FINANCE

MASTER OFFERING

PROMOTIONFINANCIAL MANAGEMENT

INFRASTRUCTURE


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About Teradata

Teradata is the worlds largestcompany solely focused onraising intelligence through data

warehousing, data warehouseappliances, consulting services andenterprise analytics, with affordable,powerful, and easy-to-deploysolutions. Teradata addresses a rangeof needs from data mart appliancesto active enterprise data warehousingstrategies, consulting services, andapplications tailored to specific issuesin a variety of industries. Teradata

Active Enterprise Intelligencesolutions give actionable insight forsmarter, faster decisions, adding value

and real opportunity across countlessdimensions.

Providing data warehousing forcompanies of all sizes, needs, andbudgets, Teradata gives companies asmarter, more competitive enterprise.

Visit www.teradata.com.

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8

Capgemini and Business InformationManagement

About CapgeminiCapgemini, one of the worldsforemost providers of consulting,technology and outsourcing services,enables its clients to transformand perform through technologies.Capgemini provides its clients withinsights and capabilities that boosttheir freedom to achieve superiorresults through a unique way ofworking, the Collaborative BusinessExperienceTM.

Capgemini Business Analytics

Capgeminis Business Analytics globalpractice network is a core unit withinthe Business Information Management(BIM) global service line and operatesin 25 locations across the world,drawing on a database of over 100analytics client credentials andanalytical models. It provides high-function analytics-based solutionsto all major industry sectors andbusiness functions.

Capgemini has over 7,000 consultantsworking in BIM across the world.

We work with all the leading bigdata and analytical technologies, andprovide services to support businessanalytics, from high-level strategy tomanaged outsourced services. Werecognize that analytics are specific toindustry sector and sub-sector, andhave experts and solutions across allof them.


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www.capgemini.com

About Capgemini and the

Collaborative Business Experience

No part of this document may be modified, deleted or expanded by any process or means withoutprior written permission from Capgemini.

Rightshoreis a trademark belonging to Capgemini

For more information contact us at :[email protected] visit www.capgemini.com/bim

With around 120,000

people in 40 countries,Capgemini is one of the worldsforemost providers of consulting,

technology and outsourcing services.The Group reported 2011 globalrevenues of EUR 9.7 billion.

Together with its clients, Capgeminicreates and delivers business and

technology solutions that fit their needsand drive the results they want.

A deeply multicultural organizat ion,Capgemini has developed its ownway of working, the Collaborative

Business Experience, and draws

on Rightshore

, its worldwidedelivery model.

More information about our services,offices and research is available atwww.capgemini.com

2012 Capgemini. All Rights Reserved.

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Smart Analytics for Utilities POV