Utilities Quarterly Newsletter – First Edition

ATCO

OneATCO – Better, Integrated Websites Enhancing brand and customer experience as well as employee productivity

Engagement Summary

ATCO has started an initiative moving to the oneATCO.com site. The key drivers for the initiative are:

• Digital environment consistency

• Ease of maintenance

• Bring all external web and mobile websites to a single platform

• Drive business objectives for this touchpoint

The current 2010 SharePoint websites are reaching the end of service life. ATCO has chosen Adobe as

the platform of choice for all external facing websites. The redesign of the home page will adhere to

responsive design and multi-language support is required.

As a diversified company with a history of providing products and services through its Global Business

Units, ATCO has recognized the need and the opportunity to create a more unified, customer centric

brand to their customers. The need was to create a seamless digital experience, so that regardless of

the internal business unit, a customer could explore, learn and purchase across ATCO’s entire offering.

Business Opportunity

Employ a best in class digital marketing platform to enable the business to communicate the “oneATCO”

message. The new online presence would need to be responsive to any browser/device combination

and would need to allow business users to manage their own content. Finally, the platform would be a

cornerstone in their marketing plan and serve as a catalyst for future growth.

Wipro Solution

The legacy web presence was implemented as separate web properties hosted by SharePoint instances.

After examining the content and structure of the “as-is” digital presence, ATCO decided to create a new

taxonomy, structure, and rewrite content to have a consistent voice across all business lines. Wipro

provided best in class Adobe Experience Manager implementation services to orchestrate the digital

marketing objectives.

Business Benefit

Digital transformation by combining the business unit offerings into a coherent set of customer centric

marketing content positions ATCO for better cross selling and upselling opportunities. In addition,

digital assets can be leveraged across the entire landscape of online experiences driving efficiency and

consistency. With a strong digital platform as a base, ATCO is also well positioned for personalization,

multi-channel content delivery and data driven marketing in the future.

Wipro HOLMESTM

For ATCO Electric, Wipro has enabled an ongoing service – Robotic Process Automation and Application

Portfolio Rationalization (RPA-APR) through HOLMESTM and related products that will help in:

• Hyper Automation in IT Managed Services

• Automate manual and repeptive tasks

• Process automation to eliminate non-value add activities

• Cognitive and analytics in critical services to study patterns and predict events.

Wipro will enable the ongoing service through HOLMESTM and other related products that will help in:

• Proactive automation

• Resolution by chat bots

• Agent assist bots

• Manual effort elimination due to process automation

• Reduction of tickets due to self and automatic resolution

• Productivity improvement due to faster allocation of resolution detail

• Faster turnaround time for requests to support personnel

• Increased proactive monitoring of applications for lesser incidents

Time wasted to assign a ticket to the right person or to find the correct resolution, may be contributing

to higher mean time to resolution (MTTR) in e-mail and portal raised tickets. Wipro will be using

HOLMESTM to achieve the following benefits:

• Improvement in same day resolution of e-mail issues

• Reduction in MTTR

• Reduction in the number of ticket hops

• Chat bots to interact with humans in natural language and help in logging in as well as resolving

simple tickets such as ticket status check, password and access requests, frequently asked

questions / service requests, basic infrastructure issues such as printer and email problems.

Wipro will be implementing an Application Health and Fixomatic Platform which will provide a

framework to automate the process of analyzing applications and infrastructure, increasing the

quantum of proactive automation and self-healing features. Specifically, they will help:

• Define the Application Component Hierarchy Model

• Define elements/services to be monitored and associate the script and monitoring schedule

• Define rules on how the failure events impact the application and infrastructure health

• Provide dashboards that help monitor and track critical elements

• Maximize scrips that can be customized and leveraged for Helpdesk Automation, Event

Remediation, Automated Ticket Remediation and Compliance Management

The goal of this project is to improve the operational efficiency of

providing IT Services to realize direct savings to ATCO Electric through a

licensed-to-use service created by the implementation of new

technology products and solutions.

Current Status

• Application Health Check (AHC) will be released to ATCO on 16-July-2017.

• Classifier BOT (Automated classification and routing of ticket to appropriate resolver group using

ServiceNow). Development and internal testing complete. UAT pending.

• Chat BOT (Automated response to users using Skype chat that provides technical/FAQ

documents for users to try before logging a ticket). Under development.

Oracle Cloud at ATCO Simplifying IT and moving back-office systems to the cloud

Cloud represents a huge opportunity for ATCO to increase innovation and agility, while reducing cost

and complexity. This is an important partnership for Wipro and we are excited about helping ATCO with

their back-office transformation. With Oracle’s leading cloud products, coupled with the services of

Wipro and Drivestream, we will be providing ATCO with the foundation they need to succeed with the

cloud:

• Creating a digital enterprise

• Operating at a lower cost

• Enabling ATCO’s future growth

The objectives that the program aims to achieve are:

• Transitioning to Cloud ERP & HCM

• Implement modern best practices on Oracle ERP & HCM cloud to support back-office processes

• Enabling global chart of accounts for Global Business Units

• Enabling shared services on Oracle ERP cloud

• ‘Zero’ customizations to ensure standardization and scalability

• Integration between front-office and back-office environments

• ‘Zero’ impact to ATCO business system availability

Guiding principles for back office transformation

This program creates a foundation for the one ATCO vision in the following ways:

• Implements out-of-the-box while leveraging Wipro’s library of process blueprints with zero

customization

• Achieve quick wins with the rollout of Sourcing, HCM & ERP

• Single integrated program to stitch across HCM, FIN, SCM, Organization Change Management

and all ATCO business units.

• Agile execution for faster business benefits realization, early visibility and higher assurance

Mobile Apps Improved mobility and user experience with apps

Current State

Wipro’s Mobile Application Factory @ATCO started with the establishment of MAF reference

architecture moving on to develop POC apps with dummy data. It then finalized and made the backend

cloud infrastructure stronger and better to productionize applications by integrating it to ATCO backend

systems. Since then we have made several enhancements including:

• Establishing ATCO Mobile App Factory (MAF) Reference Architecture Guidelines and Principles

• Establishing ATCO MAF frontend technology stack

• Sample Cloud based backend integration

• iOS and Android OS build setup

• Configuring developer and distribution certificates (B2E apps)

• Demo app distribution through ATCO’s App Store for internal ATCO employees

• Developing AE Connects Prototype Mobile App

• Developing Outage Notification Prototype App

From this point, we plan to achieve a higher degree in the existing technology and make relevant

advancement in both frontend and backend processes. We plan to:

• Formally rollout MAF framework, operating model and reference architecture

• Continue with the requirements finalization, development, testing and production release of the

Outage Notification and AE Connects applications

• Establish the governance model for the MAF setup

• Planning cycle for new ATCO mobile apps

Next Steps

The proposed plan for the frontend will include discovering the formal requirements gathering and early

prototype of new features. Wireframe, Storyboard and UI will be used for the purpose of designing the

system and data. We also plan to develop a testing framework that will be used for developing test

cases and performing system and user acceptance testing.

The next step will be to publish the AE Connects application in AirWatch MDM Store and submit the

Outage Notification app to the Apple APP Store and the Google Play Store.

The plan for the backend will include finalizing the cloud infrastructure and architecture and security

reviews. We also plan to setup an authentication process that will include the setup of an Identify

Manager or similar token based authentication and an ATCO security review.

Design work will also be undertaken that will include integrating token based authentication at the

application level, role based API services, and system of record/master record integration.

Common Core Program Integrating disparate utility business lines with a common vision for utilities

The Common Core Program is a key enabler to achieve ATCO Utilities’ strategic objectives by providing

the enterprise systems and capabilities required to ensure that business operations are efficient,

scalable and technologically advanced, without compromising on safety, reliability or service excellence.

ATCO understands the importance of expanding into new markets and regions. However, future growth

is constrained by the current operating landscape – what served ATCO in the past has become

inefficient. Some of the issues that lead to errors, delays and reduced operational efficiency are:

• Paper based transaction processing

• Significant delays in data processing

• Disparate processes for the same work

• Manual work planning, scheduling and execution

• People dependent processes

• Disintegrated and out-of-date view of data

• Technologies that lack integration and scale

The Common Core Program will be a significant step towards operationalizing the ‘One ATCO’ approach.

It will enable capital planning across global business units, support future growth through mergers and

acquisitions and establish a customer focused mindset. It will create opportunities for significant

efficiency gains and position the business for the long term with critical core technology and processes

for which future capabilities can be realized.

The program includes the delivery of a common business model for the Energy and Utility companies,

providing industry standard and best practice technology and processes to enable a step change in

operational efficiency. As a single large initiative, the program builds upon the foundational work that

was previously started in other improvement projects including the ATCO Gas CORE Program. The

Program is being delivered by two sub-programs, the Work and Asset Management (WAM) Sub-Program

and the CIS Replacement Sub-Program. The WAM Sub-Program is concerned with implementing

common processes and technology based solutions using industry leading COTS products for asset

management, work and workforce management and geographic information systems. The CIS

Replacement Sub-Program is concerned with implementing a comprehensive customer care and billing

and meter data management solution in a fully managed service model.

Wipro is bringing all its knowledge and experience in the utilities sector and leveraging previous

experience in similar utilities to provide the best guidance in terms of technology knowhow, faster time

to implement and standardization of business processes. It is a multi-year program at the forefront of

ATCO’s business transformation.

Current Status

The Common Core Program was initiated in January 2017 and has completed the following:

• WAM Sub-Program

o All CRP (conference room pilot) sessions completed for Operate & Maintain (O&M) and

Customer Service (CS) business processes, which received good feedback from the

Business community. This has helped align work and asset management business

processes across ATCO business units.

o Requirements for O&M baselined after several validation sessions.

o Design and build in progress for O&M related to applications and data migration are in

progress.

• CIS Replacement Sub-Program

o Retail CRPs

▪ 4 show & tells conducted in June - Customer Enrollment/DE-enrollment,

Energizing/Energizing Customer, Rate Management and Retail Billing.

▪ All 4 CRPs received positive feedback and response from customer

▪ 2 additional CRPs scheduled in July/Aug - Payment, Credit and Collection

o Draft Technical Architecture for Retail and Distribution completed and delivered

o Draft Test Approach delivered.

o Data migration approach being validated and refined

Shared Services – Supply Chain, Fleet & Facilities

Defining the organization and operating model for a new shared services organization

In November 2015, ATCO announced the formation of a Shared Services Group for the delivery of non-

core work to their Global Business Units. As part of the transformation, ATCO was seeking to transform

its Sourcing, Procurement, Inventory, and Warehouse Management (Supply Chain) functions followed

by Fleet and Facilities. The objective – the delivery of streamlined, cost-effective services through the

Shared Services Group that would contribute to an increased competitive advantage. Within the ATCO

Group of Companies there were opportunities to align processes, technologies and organizational

structure.

ATCO Supply Chain Opportunity

Starting in May 2016, the challenge for Wipro was to meet ATCO Group's objective of delivering non-

core services through a cost-effective Supply Chain Shared Services organization. The Supply Chain

functions were further broken down geographically or by workgroup in some operating companies. In

some cases, different processes, technology and organizational structures were being utilized to

perform the same supply chain activities. This resulted in inconsistencies for customers, inefficiencies

internally, and increased costs for ATCO. Supply Chain functions which consisted of

sourcing/contracting, purchasing, logistics, warehousing, and inventory management are currently

managed independently in each of the Global Business Unit’s (GBU’s) operating companies by

approximately 240 FTEs.

An additional analysis on the current Oracle system within ATCO concluded that problems such as

multiple systems being used for procurement, lack of training and difficulties using data analysis tools

contribute to supply chain inefficiencies.

In addition, the potential third party savings opportunity available to ATCO by jointly purchasing

common goods and services using leading practices was evaluated. The conclusion was that ATCO’s

Supply Chain functions had an opportunity to reduce third party spend. This could be accomplished by

consolidating buying power between the GBUs and allowing ATCO to work with the supply community

more effectively during the negotiation and contracting process.

Design and Speed Sourcing

Wipro’s plan will deliver a Shared Service model for implementation in 16 weeks. Their repeatable,

proven methodology would be used in this phase, and would be leveraged to move future functional

areas into ATCO’s new Supply Chain Shared Services organization.

The Shared Services Model (Target Operating Model) included: the types of services being delivered; the

organizational structure; the Governance structure; Core Process; KPIs and other metrics; and the

Technology improvement needs.

In parallel, Wipro conducted a speed sourcing initiative to develop supply agreements for high impact

areas that can be leveraged enterprise-wide to generate savings far in advance of the implementation of

the Shared Services organization. This initiative was a joint effort allowing for continuous knowledge

transfer and upskilling of the ATCO resources, thereby building the new ATCO Shared Services

competencies before the organization is launched.

In order to deliver on this first Design Phase, Wipro assembled a senior team of highly experienced

consultants that each has over 20 years of global experience in planning, designing and/or operating

Shared Services environments in procurement and other functions.

Figure 1 - Project team surveys the Drumheller storage yard during the initial Blueprint phase

Implementation Support

An initial restructuring process has been achieved that allows the GBUs to realize cost efficiencies in its

operations. Additionally, ATCO is progressing on the implementation of the new designed Shared

Services business model to realize more efficiencies in Supply Chain support functions.

The implementation of Customer Services includes transforming individual business functions from their

current distributed state, where the services are provided within each individual business unit, to the

new state where the service is transformed and then provided from one customer service group to all

the business units. The primary business outcomes are to improve productivity, agility, scalability, and

capability through redesigned Supply Chain functions.

KPI and SLA discussions are ongoing for the new Supply Chain Organization.

Supply chain benefits

• Enterprise-level Sourcing: Reduced capital spend - $4.5 million in projected savings and cost

avoidance to date

• Estimated that a minimum of 2% savings of sourceable spend can be achieved through

improved category management, aggregation of spend, and application of leading sourcing

practices. ATCO has approximately $2B of sourceable spend, a savings of at least $40M in multi-

year cash flow savings is anticipated in the sourcing area. These savings will be validated

through the course of the Supply Chain Shared Services implementation.

• 26% reduction in Sourcing and Procurement FTE counts - Procurement savings will be achieved

through streamlining processes and automating activities.

• 10-15% - potential value of inventory reduction based on better inventory visibility, accuracy,

utilization, and better order fulfillment.

• 40% reduction in total number of inventory locations (warehouses). The need for better

inventory organization and control reduces the need for over 80 inventory locations used by

ATCO.

• 10-15% improvement in Logistics Costs by reducing the number of 3rd Party providers,

negotiating rates, improving routes, and consolidating loads.

ATCO Fleet & Facilities Opportunity

Quickly following the start of ATCO’s Shared Services Project, Wipro was asked to assist in the

transformation of the fleet and facilities organization.

This program had similar objectives – to streamline and provide cost effective services through the

creation of a Shared Services Organization to increase competitive advantage. The new organization

was to align processes, technologies and consolidate the organization structure

Design and Implementation

Using Wipro’s four stage design process separate Fleet and Facilities Shared Services Organizations were

designed, providing a blueprint for the future state Target Operating Model.

In parallel, Wipro and the new Fleet and Facilities teams leveraged Wipro’s Speed Sourcing techniques

to generate savings to fund the initiative in the short term while working through longer term saving and

efficiency opportunities

Fleet and Facilities benefits

• Standardized fleet and facilities procurement contracts saving over $2M per year

• Reduced the number of fuel cards and standardized what can be purchased on the fuel card

yielding over $1M annually

• Reorganized Fleet Services into regions and optimized fleet services yielding more productivity

and better customer service

• Reviewed facilities design and décor standards to improve cost efficiency of the work space and

productivity of the employee

• Renegotiated facilities maintenance, services and supply contracts lowering annual costs over

$1M

• A comprehensive review of facilities utilization and reclassification will produce longer term

costs savings and improved working capital