Utilities UAN Business Pitch Nov04 - Oracleopnpublic/documents/webcontent/...Universal Application Network for the Utilities Industry. Agenda Achieving end-to-end billing and service

<Name><Title>

Universal

Application

Network for the

Utilities Industry

Agenda

Achieving end-to-end billing and service management

• Streamlined customer care

• Performance & Scalability

• Global deployment support

The Utility Industry Landscape

Growing Market

Complexity,

Competition, and

Price Pressure

Aging IT System

and Inefficient

Business

Processes

Efficient Delivery

of Products

and Services

Improving

Customer

Service

Primary Utility Strategies

PRIMARY UTILITY STRATEGIES KEY SIEBEL

SOLUTION SETSINDUSTRY

TRENDS

• Identify & retain high value customers to

focus on quality revenue

• Launch new products and services quickly to

improve competitiveness

• Provide more flexible front-office IT

infrastructure

• Extend life of existing CIS application

• Reduce operating costs by improving

efficiency

• Leverage business processes across

divisions and geographies

• Drive customers to more cost effective

service channels

•• Develop new partnerships to deliver end to

end solutions

• Train agents & resellers to sell new products

Streamlined

Customer

Care

Growing Market

Complexity,

Competition, &

Price Pressure

Improving

Customer

Service

Aging IT System

& Inefficient

Business

Processes

Efficient

Delivery

of Products

& Services

Streamlined Customer Care

Pain Points & Siebel Best Practices

� Streamlined Customer Care removes multiple back office systems from the agent desktop and leads to a reduction in call handling time, manual steps, field calls and agent train time

� Key Solution Components

1. Billing Inquiry Resolution

�Manage complete billing inquiry process

�Capture customer payments

�Process adjustments and repayments

2. Manage Energy Order

�Streamline customer setup and move in and move out processes

�Manage service disconnect

�Process deposit for services

Siebel Solution

� Most Utilities are still using legacy back-office systems to run the front office

� Approximately 60% of inbound calls are billing related

� 20% of inquiries are not resolved during the first interaction

� 38% of Collections calls take over 5 minutes to resolve

Pain Points

Payment Arrangements

18%

Collection22%

Other

18%

Transfer/New Service

25%

High Bill Inquiry 17%

Source: Financial Times Energy, Inc

Utility Calls - Decomposition


Billing Inquiry Resolution Processes

Answer Billing InquiriesAnswer Billing Inquiries

Answer all billing inquiries utilizing a single application to provide access to complete set of customer billing data, with minimal screens, views and navigations

PaymentsPayments

Capture customer payment requests for an invoice or outstanding balance, submit requests to billing and view outcome

AdjustmentsAdjustments

Create adjustment requests against invoices, submit for approval, submit to billing and view outcome

Repayment PlansRepayment Plans

Create monetary repayment plans for outstanding invoice balance, submit to billing and view outcome

Cancel and Cancel and RebillRebillCreate a request to cancel the invoice and recalculate using a new rate/usage value

Budget BillingBudget Billing Apply Budget Billing plans to customer services


Billing Inquiry Resolution Processes

Siebel Solution

� Provide unified access to back-office billing systems for dealing with customer inquiries

� Utilize customer billing history to optimize other business decisions e.g. disconnects, credit approval, customer value, cross-selling etc.

� Provide consistent and accurate single view of all billing information to customers across all channels

� Manage customer billing interaction from the front office dashboard to multiple back office billers

Answer Billing InquiriesAnswer Billing Inquiries

PaymentsPayments

AdjustmentsAdjustments

Repayment PlansRepayment Plans

Cancel and Cancel and RebillRebill

Budget BillingBudget Billing

Streamlined Customer Care Business Process for Answer Billing Inquiries

Customer

Siebel

Energy

LodeStar

Document

Mgmt

• Leverage back office investment with unifying UI

• Single application to show all customer data

• Real time inquiry resolution without cost of call backs

• Simpler application to reduce CSR training time

• View all data to reduce expensive field visits

UAN

Generate

Inquiry

Generate

Inquiry

Discuss

Outcome

Discuss

Outcome

Identify

Customer

Identify

Customer

Gas

Legacy

Review

Invoice

Energy

Legacy

Retrieve

Details

View Image

Generate

Invoice

Image

Investigate

Usage

Retrieve

Details

Initiate

Further

Action

Initiate

Further

Action

Sync

Account

Sync

Account

Query

Invoice

Details

Query

Invoice

Details

Query Meter

Usage Data

Query Meter

Usage DataRequest Bill

Adjustment

Request Bill

Adjustment

Review

Adjustment

Request Bill

Duplicate

Request Bill

Duplicate

Take

Payment

Take

Payment

Sync

Payment

Sync

Payment

Accept

Payment


Manage Energy Order Process

Customer Set UpCustomer Set UpComplete customer data capture include premise, service points, credit check and profile

Move InMove In

Creation of streamlined customer order containing services, premise and service points, and meter read data

Move Out/Move In (Transfer)Move Out/Move In (Transfer)

Streamlined order for disconnecting and reconnecting services between customer premises

Disconnect ServiceDisconnect Service

Automated and manual disconnects of service at customer premises based on Move Out or Dunning and collections

Manage DepositManage DepositCapture required deposit information as part of service activation


Manage Energy Order Process

Siebel Solution

� Manage all end to end processes for customer move in, switching and disconnects from a single application without having to “swivel-chair” to other systems

� Reduce number of screens and views for streamlined navigation

� Clearly understand value of customer through credit scoring, user profiles, service and financial history, and analytics

� Proactively offer products and services dynamically tailored to the customer profile for up-selling and cross-selling

Customer Set UpCustomer Set Up

Move InMove In

Move Out/Move In (Transfer)Move Out/Move In (Transfer)

Disconnect ServiceDisconnect Service

Manage DepositManage Deposit


Business Process for Move In / Move Out

Customer

Siebel

Energy

UAN

Add

Products

Add

ProductsValidate

Premise

Validate

PremiseCreate

Order

Create

Order

Confirm

Order

Confirm

Order

Request

New

Service

Request

New

Service

Request

Address

Validation

Request

Address

Validation

LodeStar

Schedule

Appt

Schedule

Appt

Dispatch

Crew

Get

Meter

Read

Get

Meter

Read

Submit

Order

Submit

Order

Update

Order

Line Item

Update

Order

Line Item

Get

Update

Get

Update

Process

Order /

Billing

Order

Process

Order /

Billing

Order

Process

Order /

Activate

Bill Cycle

Retrieve

Details

Query Meter

Usage Data

Query Meter

Usage Data

External

Address

Database

• Single application for all product ordering

• Scheduling and dispatch is integrated for optimized scheduling

• Automated response provides up to the minute data on order


Simplified Agent Desktop

Streamlined Customer Care Single View of Customer, Billing & Meter Data


UAN @ Modesto Irrigation District

� Lack of single view of customer across programs and services

� Manual processes, redundancy, and other inefficiencies driving up costs

� Multiple billing systems—no integration

Business Challenges

� Better access to reliable information organization-wide

� Significantly reduced operations, management, and maintenance costs

� 30% reduction in integration efforts; improved agility for future enhancements

Business Benefits

Siebel

Energy

BillingMeter

Data

Integration Bus

“UAN provides us with best practices and standardized integration processes that essentially gets us 80 percent down the integration path. As a result of using UAN, we reduced our integration effort by 30%.”— Cindy Minter, CIO, MID

Agenda





Performance & Scalability

UCM has Almost Linear Scalability

• Customer Benchmark

• 1TB Database with 100M Customers and 200M Financial Holdings

• Continuous request for customer name and address retrieval

• Test findings – scalability primarily depends on concurrent users and

applications integrated


Test Configuration for UCM

LoadRunner

UserWorkload

Generation&

Logging

DB2

DB Server

z990 LPAR

- 7 CPs

- 16GB Stg

p690 LPAR

- 4 CPs

- 48GB Stg

p690 LPAR

- 16 CPs

- 48GB Stg

Users

Per TestScenario

EAIWEB

IBMHTTPServer

p690 LPAR

- 4 CPs

- 16GB Stg

Multiple

Active

Multiple

Active

EAISiebelApp

Server

p690 LPAR

- 16 CPs

- 48GB Stg

Multiple

Active

Multiple

Active

Multiple

Active

Multiple

Active

Sessionsper TestScenario

CF

z990 LPAR

- 1 CP, 4GB Stg

CF

z990 LPAR

- 1 CP, 4GB Stg

ESS1

M800

8 Ficon

ESS2

M800

8 Ficon

UIWEB

IBMHTTP

Serverp690 LPAR

- 4 CPs

- 16GB Stg

UI

SiebelApp

Server

ResonateLoad

Balancer


UAN has Almost Linear Scalability

• UAN Architecture

is scalable

• Scalability

primarily depends

on Integration

Servers

• Performance KPIs:

• Actual latency averages less than 0.5 sec

• Throughput is around 15 transactions per second

Scalability by Adding Integration Servers

Number of Integration Server Threads

10

15

20

30

35

0

25

2.8

15.2

• Cross Reference DB Server utilization (CPU): 10%• Integration Server 1 (CPU): 43%,• Siebel Server 1 (CPU): 67%• Integration Server 2 (CPU): 39%• Siebel Server 2 (CPU): 53%

5

30

Ord

ers

/Se

c

1 10 20

Performance & Scalability Cross-Industry Performance Requirements for UAN

545,000 Txns/DayCreate OrderCommunication

Company

1.816,000 Orders/DayCreate OrderPharmaceutical

Company

117,600 Orders/dayCME Process Order Communication

Company

7200,000 Orders/ dayCME Process Order Communication

Company

4.580,000 Orders/DayCreate OrderHealth Care

Provider

951.7 Million

Updates/Day

Sync ContactAutomotive

Manufacturer

1.730,000 Customers

Updates /Day

Sync ContactStorage

Technology

Provider

1*18,000 Orders/DayCreate OrderComputer

Manufacturer

Transactions

per Second

Peak Transaction

Volumes

Integration ProcessCustomer

Performance & ScalabilityTest Configuration for UAN

Siebel Call Center

Integration Server (for Siebel Business Integration Applications)

4X4 CPUWin 2K

Siebel v7.5.24X4 CPUWin 2K

MS SQL DB

Oracle DB4X4 CPUWin 2K

HTTPJDBCSQL

Oracle 11i

Cross

Reference

Database

Oracle

Interface

Tables

Integration Integration

ServerServer

Performance & ScalabilityUAN & UCM @ U.S. Citizenship and Immigration Services

� Over 6,000 concurrent users

�Out of 15,000 employees and 5,000 contractors

� Over 50 million applicant profiles

�8.5 million citizenship applications received yearly

� Information spread across 22 agencies


� Compliance with section 451 of Homeland Security Act of 2002

�Mandates elimination of 3.5 million citizenship application backlog

� “Single view of Terrorist”

� Integrates 30+ watch lists to front-line

� “Single View of Applicant History”

�Limits fraud

Business Benefits

Siebel

Public Sector

Integration Bus

Customer

MasterData

Warehouse

Back office

from 22

agencies

Data Quality

Performance & ScalabilityUCM @ Financial Institution, ‘Know the Customer’ project

� 130 million customer records

�Duplicated across 40 + systems

�Representing over 8 terabytes of data

� 142,000 employees

�7 million customer interactions daily

� High availability, 24x7 system

�180 million updates daily


� Consolidated, real time access to complete and clean customer profile

� Reduced errors and inconsistencies

� Increased marketing campaign effectiveness

� Effective cross-sell across business units

Business Benefits

Siebel

Finance

Integration Bus

Customer

Master

40+ Legacy

Applications

Global Deployment SupportStrong Market Demand for CDI – T-Mobile

� Over 20,000 employees

� Almost 9 million customers

�1.3 million customer interactions daily

�500,000 invoices daily

�500,000 payments daily


� End-to-end customer service and billing process

� Single view of the customer across channels

� One-and-done experience for the customer

� Reduced call-handling time

Business Benefits

Siebel

Comms

Integration Bus

Billing InventoryData

Warehouse

Performance & Scalability UAN @ South African Revenue Service

� 9.5 million active taxpayer records

� 8,000 tax advisors

� Information spread across 12 separate systems


� Achieved complete return on investment in days

� Potential future saving of almost U.S.$3 million each day

� Improved quality of service to 20 million taxpayers

� Increased efficiency by introducing consistency into business processes

Business Benefits

Siebel

Call-Center

Integration Bus

“Using Siebel’s Single View of the Taxpayer solution to create a unified view across 12 different systems could save SARS almost $90 million every month.”— Ken Jarvis, CIO, SARS

12 Legacy

Systems

Customer

Master (not active)

Agenda





Global deployment SupportNearly 100 UCM/UAN Customers Globally

High Tech CME Public Sector Life SciencesFINS

Global Deployment SupportNearly 125 Energy-Utility Customers Globally

Service

Providers

Competitive

Market

Retailers

Distribution

Utilities

Energy

Conglo-

merates

Government

Owned

Utilities

Grid Operators

Global Deployment SupportSignificant Resources Invested in Customer Data Integration

• Siebel doubles the

number of dedicated

resources every year

• Siebel leverages its

partner’s ecosystem to

increase its delivery

capabilities

• Accenture

• IBM

• HP

• Sierra Atlantic

0

100

200

300

400

500

2003 2004

Engineers & QA Product Specialists Delivery Specialists

+125% growth

per year

CDI dedicated resources (*)

(*) Delivery Specialists include Siebel and Sierra Atlantic resources. Additional resources from IBM, Accenture and other partners can be leveraged globally. Engineering and Q&A does not include non-dedicated Siebel CRM resources

Global Deployment SupportStrong Market Demand for CDI Across Industries

� Tens of millions of customer records

� Millions of transactions daily

� Tens of thousands of employees

� High availability, 24x7, globally

� Service-oriented architecture


� Single view of the customer

�Master Data and Metadata Management

� One-and-done service

�End-to-end customer service and billing process

� Operational efficiency

�Data quality

�Reduced call-handling time

�Lower system maintenance costs

Business Benefits

<Name><Title>

Appendix

Implementation

best practices

Global Deployment SupportCustomer Experience Blueprint for CDI

• Implementation Methods

• Leverages Siebel Implementation Methodology

• Leverages UCM Implementation expertise, lessons learned and Tools

• Architectural Planning is Key

• Based on enterprise business process and data requirements

• Data quality strategy

• Integration Strategy

• Access to Critical

Resources

• UCM – Technical

Solutions Group

Global Deployment Support

Success Factors for UCM Adoption

• Ensure executive sponsorship for enterprise data strategy

• Gain enterprise-wide support for UCM implementation

• Establish business ownership of master data

• Identify business and IT stakeholders across the enterprise

• Plan architecture early

• System Architecture Depicting Data Flow Requirements

• Data Modeling and Mapping are key

• Phase deployment as much as possible

• Minimize overall efforts in development and maintenance

• Keep the technical components minimum during design time

• Be flexible on the UI design and accommodate some changes

• For a large volume of initial data load, use EIM to shorten the deployment timeframe

• Engage UCM experts to benefit from UCM implementation best practices

Global Deployment Support

Success Factors for UAN Adoption

• Ensure Management Support and Sponsorship

• Gain enterprise-wide support for UAN implementation

• Ensure Business Participation including Subject Matter Experts

• Manage Scope of Overall Project and Project Phases

• Phase the rollout rather than attempt “big bang”

• Establish centralized change management board

• Achieve Quick Wins with Pilots of Small Scope with High Impact &

Reduces Risk from Unknown Elements

• Establish Centralized Standards

• Development Standards

• Naming Standards

• Version Control

• Error Handling Standards

• Engage UAN Technology Solutions Group to benefit from UAN

implementation best practices

<Name><Title>

Appendices for

Endesa

Siebel vs. SAP

LegacyLegacyOSSOSSHRHR CustomCustomSAPSAP ERPERP CIFCIF SCMSCM

Process & Data IntegrationProcess & Data Integration

Division A Division B Division C

Employee Alignment

Business Intelligence & Analytics

Sales, Marketing, Service Best Practices

Multichannel

Customer


Process & Data Integration


Process & Data IntegrationProcess & Data IntegrationProcess & Data Integration

Division A Division B Division C

Employee AlignmentEmployee Alignment

Business Intelligence & AnalyticsBusiness Intelligence & Analytics

Sales, Marketing, Service Best PracticesSales, Marketing, Service Best Practices

MultichannelMultichannel

Customer

Streamline

business

processes with

Universal

Application

Network

SP: Submit and Process Order (Shared)

Sales Manager

Integration

Server

Fulfillm

ent

Start

Save Order

Submit

Confirmation

Submit Order

Create

Order_RMA

Order Fulfillment

EndReview Order

for Holds

Order on

Hold?

No

Process HoldYes

7.5 7.5 7.5 7.5

Siebel Offers Comprehensive Customer

Data and Business Process Integration

Achieve a Single View

of the Customer with

Siebel UCM

1984Since

MarriedStatus

#4Address2

CA 94110State

510-681-1399Tel.

117-78-1856SSN

$52.78Balance

San FranciscoCity

1867 Pierce Address1

Mary SmithName

1989Since

MarriedStatus

#4Address2

CA 94110State

415-437-1790Tel.

117-78-1856SSN

$62.34Balance

San FranciscoCity


Mary EvansName

1974Since

SingleStatus

#4Address2

CA 94110State

510-681-1399Tel.

117-78-1856SSN

$102.11Balance

San FranciscoCity


Mary SmithName

Customer Data Integration Challenge Front Office vs. Back Office

Back officeFront Office

� Data can be ambiguous, a lot of grey

areas Example: Customer name can have multiple correct

versions: William Smith, Bill Smith, William J. Smith Sr

� Most data entities are incompleteExample: a customer can be defined even with a single

attribute.

� Establishing the best version of the truth

based on limited information

� Requires very sophisticated matching,

merging, cleansing, deduplication,

survivorship, identification and cross-

referencing functionality

In order to grasp the differences between Siebel UCM and SAP MDM, it is

important first to understand the fundamental difference between the master

data challenge in the front and back office

� Data is ether right or wrongExample: A product is defined by exact attributes,

there can be no uncertainly that they are. Variations in

attributes will result in a different product or wrong

product

� Data entities cannot be incompleteExample: A car model cannot be defined without

specifying all attributes: engine, chasse etc

� Establishing right or wrong by simple

look up and comparison

� Requires relatively simple matching and

cross referencing functionality

The Master Data Challenge is about:

This is what SAP has built

Siebel UCM vs. SAP MDM Siebel UCM Gaining Customer and Market Momentum

Customer Momentum

� Customer momentum across key industries.

Life SciencesLife SciencesTelecom & EnergyTelecom & Energy High TechHigh TechFinanceFinance

Product Highlights

� Enables a single view of the customer across the enterprise

� Market leading solution for customer data integration:

�Industry-specific data model

�Closed-loop data quality

�End-to-end processes for customer lifecycle management

�Best-in-class customer data profiling

* 2003 license revenue for packaged CDI solutions and tools, source: Forrester** 2007 market potential for product and services, source: AMR

SAP has only a few MDM

references

SAP MDM is a new,

unproven product that

lacks basic customer

master functionalities:

•no data model•no merge capabilities

•no survivorship capabilities

Siebel UCM vs. SAP Master Data

Management (MDM)

Siebel is a

leader in CDI

SAP is a late

follower

Source: META, December 2003

“Enterprises should not implement MDM without due diligence and a willingness to work closely with SAP as an early adopter.”Gartner

September 2003

Siebel vs. SAP

Integration TechnologiesSiebel Integration

OptionsWhen to choose which Option?

Siebel eBusiness

Application

Integration (Siebel

EAI)

� Ability to access Siebel business

logic & data using standard

protocols and programming

languages

Universal

Application

Network (UAN)

� Based on Siebel EAI

� Orchestration of customer-centric

business integration processes to access

Siebel and other application functionality

as services

Siebel SAP, Oracle

Connectors

� Shallow point-to-point integration

between Siebel and SAP or Oracle

Siebel Enterprise

Integration

Manger (EIM)

� Large volume data loads in batch

mode (import, export, merge, and

delete) between Siebel and other

apps

SAP offers only

one option:

SAP XI.

UAN vs. SAP XI UAN has Customer Results and Product Leadership

Customer Results

� Proven customer success across key industries.

Product Leadership

� Addresses #1 CIO concern - business integration

� Standards-based architecture

� Enables mission critical end-to-end business processes on all leading integration server

� Reduces time, cost, and risk of business integration

High Tech Comms Media/Energy Public SectorFINS

Life Sciences

SAP XI has been rated by

Gartner and META as

too immature for

enterprise integration

SAP Customers use SAP

XI for limited integration

requirements, primarily

for SAP-to-SAP

integration:

Siebel vs. SAP: Integration Server

Siebel and leading

Integration Server

Providers

SAP’s proprietary

integration server

UAN and UCM @ ENI

Single View of the Customer

CompanyCompany

�Difficult to maintain and synchronize customer data across disparate systems

�Customer data discrepancy across operating business units

�Duplication of supplier qualification efforts across operating business units

�No cross-systems checks on customer and supplier financial reliability

�Achieved a single view of customer and supplier information

�Complies with accounting requirements re: inventory of customers and suppliers

� Increased efficiency in qualification and evaluation of suppliers

�Significantly reduced mailing errors and costs

�Estimated total annual cost savings of €1.2M, with an expected payback in only 1 year

�Phase 1 already generating €306k

� IRR of the overall investment is 92% over 5 years

IssuesIssues BenefitsBenefits

� Integrated energy company operating in the oil, natural gas, electricity generation petrochemicals industries

�$51 billion in annual revenue

�76,521 employees

�Recent integration of Agip Petroliincreased complexity of IT landscape, making system integration a top priority

� IT Environment�Siebel CRM�SAP IS-Oil�SAP R/3�Custom CIS/billing�TIBCO BusinessWorks

Eni will generate an estimated total annual cost savings of €1.2M, with an expected payback in only 1 year from its implementation of customer lifecycle management integration processes to synchronize customer information across Siebel UCM, and two instances of SAP back office applications.

Documents

Utilities UAN Business Pitch Nov04 - Oracleopnpublic/documents/webcontent/...Universal Application Network for the Utilities Industry. Agenda Achieving end-to-end billing and service