utilities transformation: improving the time to value of technology

with you

Utilities Transformation: Improving the Time to

Value of Technology Perry Stoneman, Global Head of Sectors &

Utilities Global Sector Lead, Capgemini Oracle OpenWorld | 29 September 2014

2 Copyright © 2014 Capgemini. All Rights Reserved

Agenda

What is Digital Transformation and why you should care

A case for transformation now

A time to act and how


2 Decades of Change

2000 – 2014 1980 – 2000


Four Levels of Digital Maturity

Transformation management intensity

Conservatives !  Overarching digital vision exists, but

may be underdeveloped !  Few advanced digital features, but

traditional capabilities may be !  Strong governance across silos !  Taking active steps to build digital

skills and culture

Beginners !  Management skeptical of the

business value of advanced digital technologies

!  May be carrying out some experiments

!  Immature digital culture

Fashionistas !  Many advanced digital features

(such as social, mobile) in silos !  No overarching vision !  Underdeveloped coordination !  Digital culture may exist in silos

Digirati !  Strong overarching digital vision !  Good governance !  Many digital initiatives generating

business value in measurable ways !  Strong digital culture

Dig

ital i

nten

sity


Digital maturity varies widely*

Fash

ioni

stas

B

egin

ners

Digirati

Conservatives

* Digital maturity of 391 companies in our sample


Market Valuation Cost Effectiveness

Digitally-mature companies have significantly better financial performance

-11% +26%

-24% +9%

Basket of indicators: ! Tobin’s Q Ratio ! Price / Book Ratio

-12% +12%

-7% +7%


Some industries are more mature than others…

* Average maturity of industries for which we received at least 20 survey responses

Banking

Consumer Packaged Goods Insurance

Manufacturing

Pharmaceuticals

Retail

High Technology

Telecoms

Travel and hospitality

Utilities

Average Industry Maturity*

Transformation management intensity

Dig

ital i

nten

sity


accelerating with you

A case for transformation now


The Case to Transform Now

!  Google, Amazon, Apple, Comcast and Wal-Mart are entering the industry and offering an array of consumer products that integrate electricity, security, and networking.

#1 New and deep-pocketed players are entering the industry

“Google Acquires Smart Thermostat Maker Nest for $3.2 Billion”

Forbes

“Samsung Buys Into Home Automation with SmartThings Acquisition”

Time



!  50% of utility customers are considering solar power and estimates have solar panel installations 5 year CAGR of 600%.

!  The prices of the panels have plunged 70 percent in the past five years.

#2 Technology advancements and better pricing for solar panels



!  Lennar the nation’s second-largest homebuilder has about 100 subdivisions in California where new homes automatically get solar panels on the roof.

!  Lennar recently decided to expand that program to more states starting with Colorado.

#3 Builders are becoming disruptive


!  Battery technology advancement and massive factories will dramatically reduce the cost to store energy for the home.

!  Tesla is building a Mega factory that will reduce the price on lithium ion batteries by 40%.

#4 Battery Technologies and Mega Factories


Nevada Selected As Official Site for Tesla Battery Gigafactory

Thursday, September 4, 2014 Tesla


!  Rockefeller …

#5 Big Oil Wants In


“Rockefeller family sells out of fossil fuels and into clean energy.” BBC News US & Canada

“Rockefellers dumping oil to make statement.” USA Today

“Rockefeller Trust Will Divest Itself of Oil Investments.” NBC News “Rockefeller Fund Built on Oil to Abandon Fossil Fuels.”

Bloomberg

NY Times

“Philanthropies, Including Rockefellers, and Investors Pledge $50 Billion Fossil Fuel Divestment.” Business Insider

“Rockefeller family to sell oil investments to reinvest in renewables.” ABC News Australia


!  Customers will become disruptive. Customers want more.

#6 We are in a customer driven world


Unaware

Aware !  Low energy lighting !  Efficient heating !  Insulation !  Supplier comparison !  Self service

Passive Interest !  Green energy !  Renewables sources !  Energy labels !  Energy efficiency

Active involved !  Energy conversation

programs !  Smart meters !  Energy management tools

Community involvement !  United consumers Communities !  Demand shift !  Consumer storage !  Advance energy management

Interactive involved !  Local generation !  New pricing models !  Demand response programs

!  Customer analytics !  Consumer - Prosumer

Con

sum

er

driv

en m

arke

t

Util

ity d

riven

m

arke

t


Recommendations 1.  Engage with your customers 2.  Recognize analytics can deliver

many benefits 3.  Optimize the distribution grid and

integrate renewable energy and storage

4.  Consider tapping into other funding to develop micro grids

Now is a Time to Act!

Oracle Best Practices & EnergyDirect – What we bring

1.  New and deep-pocketed players are entering the industry

2.  Technology advancements and better pricing for solar panels

3.  Builders are becoming disruptive 4.  Battery Technologies and Mega

Factories 5.  Big Oil Wants In 6.  We are in a customer driven world

Utility Industry Disruptions


accelerating with you

A time to act


How to Move Fast and Deliver Value

Too much focus on requirements creates an artificial boundary between the Business and IT sides of an organization. It’s a bridge, but one that is often difficult to cross. Instead, IT should be providing a flexible, scalable preconfigured solution that integrates industry best practices into a preconfigured package.

At Capgemini we call our new accelerated suite of preconfigured utility Oracle solutions EnergyDirect.


Capgemini EnergyDirect consists of three primary elements… !  A detailed step-by-step implementation procedure, including automated activities

!  Extensive, reusable documentation that you can use for self-study, evaluation, and training of the project team and end users

!  Preconfigured settings that you need to run key functionality (not all functionality) specific to Utility. The configuration is documented and includes support for business processes, training material, user roles, data conversion tools, and test catalogs.

Capgemini & Oracle


Oracle Best Practices & EnergyDirect – Stacking it up

Client Specific

Oracle Best Practices Core Oracle Functionality

EnergyDirect

Oracle Best Practices Core Oracle Functionality

Client Specific

Based on experience using similar solutions EnergyDirect implementations could provide up to 30% productivity gain compared with Standard

software implementations

30% FASTER + 30% CHEAPER


•  Utility End-to-End Solution •  Industrial Project Management •  Integration Test Scripts •  Training Artifacts •  Technical Command Center •  Immediate Architecture

Oracle Best Practices & EnergyDirect – What we bring

•  Industry Best Solution Portfolio •  Business Process Master List •  Process Flows •  Design Documents •  Internal controls •  Unit Test Cases


Oracle Utilities Application Footprint for EnergyConnect

Energy Supply Network Management Asset Management Energy Delivery Customer Service Operations

Planning/Settlement

Core Tech Stack

Shared Services

BI and Analytics

LPSS

CCB Contracts

CRM

Maintenance Network Assets Metering Rating and Billing SMOC

WAM

Primavera

MWM NMS DGM

OBIEE OBIU Hyperion OUDM Endeca Big Data

ERP (JDE, EBS) Hyperion Supply Chain

EBS AM

HW Cloud SOA/BPM Security OEM

CCB BC

MDM SGG

ODM

SFA, Prog Mgmt CRM

RightNow

Cust Engagement CSS

MWM

SGG

OEM MWM ERP

LA

WAM

ERP Primavera Hyperion

Sustainability EAR

SSDM GRC

ERP Supply Chain

General

UGBU Foundation Integration (AIA, PIP) Operational Reporting (OBIU) OUAF

Manage network WAM ODM

Data Raker

Non-UGBU UGBU

GRC HCM


Go see Capgemini CX demo for a sample of our Ready2Run series

Ajay Verma

Victor Jimenez

The information contained in this presentation is proprietary. Copyright © 2014 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With almost 140,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion.

Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organizat ion, Capgemini has developed i ts own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

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