The Evolution of mySAP Utilities - Actual Development Focus and Release Strategy Stefan Engelhardt Head of Business Development IBU Utilities, SAP AG

The Evolution of mySAP Utilities - Actual Development Focus and Release Strategy

Stefan EngelhardtHead of Business DevelopmentIBU Utilities, SAP AG

SAP AG 2003, Stefan Engelhardt 2

Agenda

Market Update

Release Strategy

Actual and Future Development Focus


Enterprise Application Software industry-independent mySAP Solutions

850 customers in 56 countries Approximately 40% world market share 1)

More than 85% market share in Germany

Customer Information and Billing Systemsindustry-specific solution IS-U

>380 customers in 50 countries Approximately 25% world market share 2)

76 % market share in Germany Market-leading position in the US 3)

1): User work places

2): approximately 250 Million licensed supply contracts

3): META Spectrum Market Summary , February 2002; META Report 09/2002

Position of SAP in the Global Utilities Market


Analyst’s point of view …

META Report 9/2002


Agenda

Market Update

Release Strategy



Ind

epen

den

t System

Op

erator

Enterprise ManagementStrategic

Enterprise Management

Business AnalyticsBusiness

Intelligence & Decision Support

AccountingEmployee Relationship

Management & Workforce Analytics

Regulatory Reporting/FERC

Customer Relationship & Service Management

Marketing Sales ServiceSpecial Customer

ProcessesTransaction Exchange

Analytics

Generation Engineering & Construction Production Plant Maintenance Decommissioning

Transmission & Distribution

Engineering & Construction Operations ManagementMaintenance & Work

ManagementTransmission & Distribution

Service

Installation Services Connection & Installation Management Installation Service Management Meter Reading Management

Energy Capital Management

Energy Data Management

ForecastingPortfolio

ManagementComplex Billing Energy Trading

Reconciliation and Settlement

Energy Billing Tariff Management Scheduling Billing Calculation Special Billing Processes

Revenue Management Invoicing Receivables Management Third Party Settlement

Business SupportEmployee Life-Cycle &

Transaction Management

ProcurementFinancial Supply Chain

ManagementFixed Asset Management

Real Estate Management

Utilities Solution Map, Edition 2003

Major development areas of Releases 4.71 and 4.72


Campaign Lead Opportunity Quotation Contract

Sales process for residential customers mySAP BI IS-U/CCS IS-U/CCS

Sales process for commercial and industrial customers (*)

Campaign Lead Opportunity Quotation Contract

(*): Including chain and clustered customers

IS-U/CCS

!03/

2003

IS-U/CCSmySAP BI IS-U/CCS IS-U/CCS

mySAP CRM<>IS-U/CCS: Development Steps


Calculation

Central Function: Quotation Calculation (4.71)

Distributor search

Determination of grid usage fees

Access to consumption data and

load profiles from SAP IS-U-EDM or external systems

Access to controlling data from SAP’s cost accounting system

(SEM/BI)

Quotation

Calculation for a point of delivery Calculation for multiple points of delivery (for example, chain and cluster customers) Calculation of prices and margins Storage of planning data (for example, margins) in SAP Business Information Warehouse Automatic generation and dispatch of quotation

OpportunityOpportunity ContractContract

MS Excel External calculation tools SAP calculation tools

MS Excel External calculation tools SAP calculation tools

... ...


Key Account Manager Portal: The Interface (4.71)


Business Challenges - Service

The Pressure Service is traditionally treated as

a cost center Service has no representation at

the executive level Businesses feel pressure to find

new sources of revenue Trying to reduce the high costs

involved in service delivery and execution

Difficulty building customer loyalty

The Opportunity Service is becoming more and

more critical to organizational success

Able to create long term service business relationships

Transform the service organization from a cost center into a thriving service business

Create a consistent revenue stream of service business


Customer Centric Business with mySAP CRM

Service as integral Part of CRMRich Functionality and Supporting Capabilities

Planned Services Individual or periodical scheduling of planned services Intervals of planned service can be based on time, counter or both Automatic generation of follow-up documents (service orders,

quotations, activities) at definable points in time

Case Management Transaction management – supports the linking of business

transactions to a case

Case hierarchy – supports visibility of relationships among cases

Service Order Management Consideration of required qualifications and skills during scheduling Amount Allocation - Ability to define who should pay which amount

shortly before billing Service Order Quotation

Mobile Service Processes For Laptops and Handheld Devices

New

wit

h S

AP C

RM

4.0


New Project „Efficient Call Center Processes“ (4.64+)

Focus on Top Dialogue Processes IS-U/CCS plus FI-CA End-User Processes Frequent and Commonly Used Processes Measurable Improvement of Process Efficiency

Implementation Strategy Within the Standard, not Project Based Available on Release 4.64 and 4.71 1st Phase until Q2 2003


Solution Package New “Express Transactions” Enhancement of Existing Transactions Customizing Templates (BC Sets) Extensive Documentation Service-Team Power-User Community

New Project „Efficient Call Center Processes“(4.64+)


Top n Dialogue Processes

Move-In and Move-OutMove-In and Move-Out

Customer Overview (incl. Meter Readings, Consumptions, Account Customer Overview (incl. Meter Readings, Consumptions, Account Balance)Balance)

Account BalanceAccount Balance

Invoice CorrectionInvoice Correction

Meter Reading CorrectionMeter Reading Correction

Rate ChangeRate Change

Budget Billing Plan MaintenanceBudget Billing Plan Maintenance

Bank Account MaintenanceBank Account Maintenance

New Contracts (Retailer)New Contracts (Retailer)

Meter Reading to CashMeter Reading to Cash

Disconnection / ReconnectionDisconnection / Reconnection

Master data MaintenanceMaster data Maintenance

CIC-Navigation (Framework for all the above Processes)CIC-Navigation (Framework for all the above Processes)


Example: Move-In


SAP Voice: The Superior Self-Service Alternative

IVR

New order

Change of Address

Complex HR help

IVR

Order status

Account status

Service request

Support pre-screen

Payment extension

“Virtual” Agents

Simple HR ESS

Inventory query

Payment extension

Password Reset

SCM event updateTech support

Complaints

Billing inquiry

New orders

Change of Address

Complex HR help

Order statusOrder status

Account statusAccount status

Service requestService request

Support pre-screenSupport pre-screen

Payment extensionPayment extension

Simple HR ESSSimple HR ESS

Inventory queryInventory query

Payment extensionPayment extension

Password ResetPassword Reset

SCM event updateSCM event update

Tech support

Complaints

Billing inquiry

Today:

With Voice:

Expensive, long hold times, limited hours of availabilityExpensive, long hold times, limited hours of availability

Less expensive, no waiting on hold, 24x7x365 availabilityLess expensive, no waiting on hold, 24x7x365 availability

Live Agents

Live Agents


First half 2003

SAP BW 3.2 SAP BW 3.2

- Utilities-specific KPIsUtilities-specific KPIs- EDM contentEDM content- Master agreementMaster agreement- CollectionCollection

SAP BW Release Planning SAP IS-U

2003/20042003/2004

SAP BW 4.0 (forecast)SAP BW 4.0 (forecast)

- Utilities-specific KPIs Utilities-specific KPIs (for example, meter reading, (for example, meter reading, process analyses)process analyses)- ......

BW 3.2: Available June 2003


Optimization of back-

office processes

Goal

Minimizing of billing errors

Optimization of the meter-reading process

Optimization of the payment process

Critical factors for success

OK

Not OK

OK

OK

Not OK

Not OK

Result

% Fully paid bills

KPI

% Returns per reason

# Readings per employee

% correct data received

Time betw. reading & payment

% billing errors

99%

< 3%

5 days

>97%

100

< 1%

Benchmark

Business Goals, Success Factors and KPIs (4.72)


Identification of the relevant KPIs (4.72)

KPIs in SAP BW InfoCubes:KPIs in SAP BW InfoCubes: 65% of the Top 20 KPIs are already

contained 25% of the 40 ‘high-priority’ KPIs are

already contained

~1,000~1,000

190

Sources

Total

High

60Top

20


Start End

Meter Read to Billing Billing to Invoicing Invoicing to Payment

Meter ReadingPreparation

Meter ReadingPerformed

BillingOutsorting

InvoiceCorrection

KPI Example: Back Office Performance (4.72)

# Reading

# Incorrect reads

Ø Time for correcting reads

# Billing errors

# Outsortings

Ø Time for processing outsortings

# Invoice correction

Ø Time for correcting invoices

costs = # processes x time spent per process

Time between meter reading and invoicing

Time between invoicing and payment


Marketing

(planning, analysis,execution)

Marketing

(planning, analysis,execution)

Salesportfolio

Salesportfolio

Sales

PurchasingcontractsSchedules

PurchasingcontractsSchedules

Grid topologyGrid access

Grid topologyGrid access

Capacity planningand forecast

Capacity planningand forecast

ControllingControlling

Purchasing

PortfolioManagementOptimization of energy

procurement,energy sales,

risk management

EXTERNAL TOOLS Energy (paper) trade Analysis/forecast Grid optimization

EXTERNAL TOOLS Energy (paper) trade Analysis/forecast Grid optimization

Planned!Planned!

Settlementand billing

Settlementand billing

Portfolio Management – a Logical Enhancement

Technical data(point of delivery,

meter reading data,load profiles)

Technical data(point of delivery,

meter reading data,load profiles)


Agenda

Market Update

Release Strategy



03/99 06/01

09/99

IS-U 4.61IS-U 4.61 R/3 4.6B

05/00 12/03

IS-U 1.1BIS-U 1.1BR/3 4.0B

10/98 12/00

06/02

IS-U Support

IS-U DevelopmentMay 2003

IS-U 4.62IS-U 4.62R/3 4.6C

11/00 12/02

IS-U 4.63IS-U 4.63R/3 4.6C

06/01 06/04

IS-U 4.64IS-U 4.64 R/3 4.6C

03/02 IS-U 4.71IS-U 4.71

R/3 4.7 *03/03

1998 1999 2000 2001 2002 2003 2004 2005 2006

03/06

03/05

04/04

2007

IS-U 1.2IS-U 1.2R/3 4.0B

IS-U 4.51IS-U 4.51R/3 4.5B

* Enterprise

mySAP Utilities – Release Strategy of IS-Utilities


03/99 06/01

09/99

IS-U 4.61IS-U 4.61 R/3 4.6B

05/00 12/03

IS-U 1.1BIS-U 1.1BR/3 4.0B

10/98 12/00

06/02

IS-U Support

IS-U DevelopmentMay 2003

IS-U 4.62IS-U 4.62R/3 4.6C

11/00 12/02

IS-U 4.63IS-U 4.63R/3 4.6C

06/01 06/04

IS-U 4.64IS-U 4.64 R/3 4.6C

03/02 IS-U 4.71IS-U 4.71

R/3 4.7 *03/03

1998 1999 2000 2001 2002 2003 2004 2005 2006

03/06

03/05 IS-U 4.72IS-U 4.72

R/3 4.7 *04/04

Prolonged maintenance until April 2008!

2007

IS-U 1.2IS-U 1.2R/3 4.0B

IS-U 4.51IS-U 4.51R/3 4.5B

* Enterprise

For selected customers only

mySAP Utilities – Release Strategy of IS-Utilities


mySAP Utilities Release Strategy

Q2/2001 Q3/2001 Q4/2001 Q1/2002 Q2/2002 Q3/2002 Q4/2002 Q1/2003 Q2/2003

R/3 Standard

SAP IS-U/CCS

SAP CRM

4.64(4.6C)

4.63(4.6C)

4.71

3.0 3.0 4.0* 4.0*

4.7(Enterprise)

* planned

4.6C4.6C

3.1 3.1

4.64+(4.6C)

July 2003


Questions?

Contact: [email protected]

Documents

The Evolution of mySAP Utilities - Actual Development Focus and Release Strategy Stefan Engelhardt Head of Business Development IBU Utilities, SAP AG