Duke Energy EIM (IMA) Overview
Charlie WardChief Architect - Smart Energy Systems
2
• Inefficient access to company-wide information• Multiple companies and multiple functional
information silos• Various definitions and rules for information• Limited oversight of information quality and usage• Uncontrolled data proliferation through
“spreadmarts”
YESTERDAY
ASSETS
& FINANCIALS
PRODUCTS & SERVICES
CUSTOMERS
ONE COMPANY: Single version of the truth,
shared management of information assets
OPERATIONS
WORKFORCE
• Information strategies & stewardship implemented• “One company” approach; functional silos broken
for a process view• Highly leverage analytics for Business decisions• Acquisitions expedited• Cost and efficiency gains through improved
information access and quality
TODAY AND INTO THE FUTURE
Summary – Why EIM?
BACKGROUND
In 2005 Duke Energy adopted a strategy of growth through acquisition Target was 4X current size over 7 years = 14 states, 12 - 14M customers, 70,000
employees IT was commissioned to build a “scalable platform” to support future M&A
Standardized core systems Managed business data and information 1 system / 1 process “Plug & Play” for future acquisition
2005 – 2006 acquired/merged with Cinergy = 5 states, 4.5M customers, ~19000 employees
Designed and delivered the Information Management Architecture (IMA) for the scalable platform
Future M&A transactions would be executed as acquisitions – target company’s data converted and Duke Energy systems and processes adopted
EIM/IMA Benefits Reduces Application Dependency
When applications reference each other directly, changing one means all who reference must change also. Hubs eliminate direct reference and an application may change without impacting others. Lower cost of application life cycles.
Provides Single Version of the Truth When applications maintain their own version of enterprise data, inevitably, that data
over time will differ from the other versions found in other applications. Greater confidence in the data.
Provides Integrated Reporting/Analytics Reports can be constructed from the “single version of the truth” directly rather than
replicating data from various sources into numerous report-specific copies. Fewer data and reporting errors.
Multiple systems performing the same function—whether region-specific customer information, or systems of newly acquired companies—contribute to singular, consolidated reporting. Lower cost to prepare consolidated reports.
Total cost is lowered while information becomes more reliable
IMA 2006
Business Processes
Req to Pay,
Order to cash,
etc.
Transactional Systems
Applications and source data,
Transaction processing,
Operational reporting
Reporting
Standard Reports,
Ad hoc capabilities,
Dashboards
Analytics
Collection of Cubes &
Marts ,
Analytic Capabilities
Meta Data
What’s available,
What’s certified,
Data Move & Transform
Integration
Application Integration,
Data Move & Transform
Data Quality
Data Hubs
Data models independent of transactional systems,
Pro
cesses
Financial Systems
Customer System
other Systems
Financial Systems
other Systems
Financial Systems
other Systems
Work Mgmt Systems
Supply Chain Systems
Analytics Reporting
StandardReports
Ad HocReports
ManagedReports
Dashboard
Catalo
g L
ayer
EnterpriseApplicationIntegration
Data Hubs
Extract, Transform &
Load
Messaging
Web Services
M&A
EAM
SmartGrid
Security
Infrastructure
Finances
Materials
Products & Services
Customer
etc.
What is a Data Hub?
Based on this concept we manage information independent of the applications supporting business processes.
A Data Hub is a collection of data for a specific business subject area and is the authoritative source of data for application integration, and the authoritative source of data for reporting and analytics.
Each data hub is comprised of an operational data store (ODS) for system integration, and a data warehouse (DW) for reporting/business intelligence/analytics
The collection of subject area data warehouses in the IMA comprise Duke Energy’s enterprise data warehoues
Duke Energy Enterprise Data ModelCustomer
Facilities
Products &
Services
Workforce
Materials
Equipment
Finances
F/HFacilities
Customers
Nuclear Facilities
Duke Energy
Facilities
are sold to
X Y means X “is a type of” Y. Sub-types inherit relationships of the parent.
are delivered to
transport products to
produce
fund
compensate
pro
du
ce revenu
e
performs w
ork at
performs work at
maintained at
main
tained
at
T&D Facilities
Business Strategy Changes
Late 2007 - Duke Energy scales back M&A plans to focus on streamlining operations to strengthen the balance sheet
Late 2008 - Strategy changes to emphasize revenue growth via smart grid, investment shifts to: Green generation technologies – wind, solar, clean coal, CO2 scrubbers, etc.. Distribution grid modernization AMI meter and system deployment/upgrade New customer products and services Energy management and conservation
New Business Strategy Drives Change
Evolving integration requirements Future merger and acquisition (M&A) activities More external service providers and partners Data integration with exponentially larger volumes of data Cross functional data analytics Customer facing services
Reduce solution development, enhancement, and maintenance costs Faster time to market for new or enhanced solutions
Decrease development time via standard, reusable *services Shorten solution test cycles, particularly regression testing
Better visibility into system operational and performance metrics to preclude failure and speed problem troubleshooting and resolution
Business process and supporting system flexibility
Capabilities
The smart energy leadership team defined a set of business expectations IT needed to address to support program initiatives.
The Core Issues are the obstacles that need to be overcome.
The Architecture Capabilities are required specifically to:
Meet the Smart Energy and Smart Grid business needs
Overcome the Core Issues
Deliver and support the Business Drivers
Unproven scalability and reliability
Long projecttimelines
Difficult tocoordinate projects
Inconsistent or inaccurate data
Scope and budgetforce “get by” design
Poor visibility into technologies & use
Complexity ofpoint-to-point designs
Building “one offs”, poor reuse
Testing takestoo long
No SG Business Context
Application Integration
Data Integration
Time to Market
Cheaper Builds
Lower O&M
SG Analytics
Biz Agility
Biz Process Flexibility
Reliable HA
Business Drivers Core Issues
Data services
Application and integration services
Integratedtest methodologies
Ability to integrate capabilities and requirements
Standards based architectures
Servicesgovernance
Master data governance
Consistent and measurabledata quality
SLA definition and fulfillment
Business Architecture
Architecture Capabilities
1 A
2
3 1
1
2
4
3
3
B
C
D
A
B
C
C
E
D4
5
6
7
8
9
4
5
6
7
8
9
E
F
G
H
I
1
8
3
7
8
9
G
H
I
D
D
E
G
G
A
2
6
7
4
2
D
I
F
H
H
I
A
E
F
A
H
J 3
7
8
E
J
HC
G
B
B
B
B
SOA
Enterprise Application Integration
11
The Enhanced IMA
Bu
sin
ess
Pro
ce
sse
s
Financial Systems
Customer System
other Systems
Financial Systems
other Systems
Financial Systems
Other Systems
Work Mgmt
Systems
Supply Chain
Systems
Analytics Reporting
StandardReports
Ad HocReports
ManagedReports
Dashboard
Cata
log
La
yer
Data Hubs
ETL MessagingWeb
Services
Security
Infrastructure
Finances
Facilities
Materials
Equipment.
Customers
Ma
na
ged
Ma
ste
r Da
ta Re
gis
try
End to End Testing Tools
Management and Monitoring (initially Registry & Repository, later BAM)
GIS
HRMS
Products &Services
Workforce
Information Integration Services
• Information Integrity Services• ETL Services• EII Services
Master Data Management
• Lifecycle Management• Hierarchy & Relationship Mgt• Data Quality Management• Authoring• Base Services• MMD Interface Services
Integration Middleware
• Enterprise Service Bus• Queue• Registry & Repository• Quality of Service
12
Business Strategy Changes Again
2011 – Duke Energy merges with Progress Energy to create the largest IOU in US. Announces it will probably execute another acquisition once Progress deal closes.
Agility and Flexibility are keys to success. EIM should be able to support any business strategy with little to no change.
Duke Energy’s IMA currently supports 3 major strategic initiatives…
(EIM) IMA supports integration of smart grid systems
Enhanced IMA supports a digital customer interaction strategy
Enhanced IMA supports M&A system integration
EIM Governance IT Governance Committee commissioned a working team to :
Evolve a definition of data stewardship Perform the role on an on-going basis Define a structure for Duke Energy data Make policy recommendations Data Stewardship will evolve over time
A cross functional technical governance team was formed to ensure the proper technologies are deployed, maintained, and managed
An Integration Center of Excellence was created to develop and provide expertise on the technologies and processes of EIM
Successes To-Date PeopleSoft Financials 8.9 avoided interface costs EAM able to design its interfaces to Finances and Customers data hubs rather than being
dependent on projects in those areas. Customers data hub allows a single interface in spite of their being four customer
information systems. OLS (~$200K /yr avoidance) , eBill, IVR (~$750K/yr avoidance) all benefit through interface consolidation
Enterprise Customer System architecture - ~$3M/2009 – 10 avoidance Customer data hub allows consolidated customer business intelligence (retail marketing,
call center agent operations). Financial analysts spend less time on data verification and more time on data analysis due
to improved data quality Financial report run times greatly reduced. Some taking hours before now run in minutes. Supply chain and work management report designers need not understand complex
Maximo (eMax) data structures, only the hub structures which are designed specifically for business intelligence and analytics
Challenges RemainCategory Challenge Response Call to Action
Change Management
Pushback from projects: “it costs more”
Building hubs is a lower cost approach, although projects that build them are often not the beneficiary. Optimizing costs in total across the Company and over time sometimes means incurring higher costs in certain areas.
Promote the use of data hubs for data sharing:– Find out what major projects in respective
areas are and are not using hubs– Demonstrate your support for utilization given
the benefits– Ensure projects include resource scope for
data hubs
Managing data independent of applications
The tendency is to think in terms of applications. But application are narrow in scope whereas hubs are intended to meet broad requirements across the Company.
Build out and populate the hubs:– Sponsor projects to identify enterprise
requirements (external to “owning” area)– Sponsor and sequence projects to close gaps
left by application projects
Ramifications of an “enterprise data platform”
Prioritization and funding when dependency is on others to provision information
Data hub owners serve the needs of Duke Energy, but those needing the data usually don’t control the resources that can populate hubs.
Ensure areas supporting a data hub budget for continued build out:– Review with each hub owner their plans and
budgets– Anticipate additional data needs
Electric Transmission Lines
Electric Substations
Electric Distribution Circuits
Gas Gate Stations
Gas Distribution Pipelines
Attachments
Gas Transmission Pipelines
General Ledger
Accounts Payable
Project
Statistics & Information
Consolidations
Investor Mgmt
Treasury Mgmt
Financial Reporting
Asset Accounting
Expense Administration
Financial Planning
Tax Accounting
Misc Billing
Accounts Recievable
Assets
Work Management
Equipment Measures
Compliance Programs
Customers
Customer Accounts
Prod & Serv Agreements
Customer Bills
Delinquencies
Payments
Orders
Credit
Forecasts
Products
Marketing Programs
Sales
Employees
Contractors
Other Persons
Benefits
Development
Time & Attendance
Organizational Structure
Payroll
Staffing
Compensation
Employee Relations
Built thru 2010Opportunity
can become
Products &
Services
Workforce
Materials*
Equipment*
F/HFacilities
Customers
Nuclear Facilities
Duke Energy
Facilities
are sold to
are delivered to
transport products to
produce
fund
compensate
pro
du
ce revenu
e
performs w
ork at
performs work at
main
tained
at
T&D Facilities
stored at
maintained at
Finances
Customer Facilitiesare located at
Service Point
PremiseJurisdiction
Sites
Facilities
Location
Space
Land
Leases
Projects
Structures
Operating Requirements
Generation Units
Plant Systems
Operating Requirements
Intra-Site Structures
Systems
Inventory
Services
Vendors
Commitment
Invoices
Procurement Engineering
MSDS
* Materials and Equipment includes Nuclear
Data Hub Maturity
QUESTIONS?