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Business Analytics the way we see it

Smart Analytics for
the Utility Sector

Table of contents The need for a paradigm shift 1 The Partnership Model 6 Capgemini and Business Information Management 8 .


The need for a paradigm shift 1 .

simply storing the data? Utilities today must take prompt ƒƒ Do you have a strategy in place for action to secure capabilities to interpret managing and organizing the data to consumer usage patterns and develop facilitate analysis and enable competencies to forecast demand and business decisions? plan generation. Utilities today are struggling to react ƒƒ The Public Utility Commission to this “explosion of data” which is a (PUC) was threatening a seven digit consequence of the “Smart Revolution”. utility customer will suffer. the CEO of a large electric to the entire customer base. It’s an all too frequent scenario. processed and vendors will be very happy and the company over 25 years. technology and data management outage. At the same time ƒƒ Do you have access to cross- they are faced with one of the biggest functional data from operations. However. with new sources of data and had little experience of how to deal with it. with an ever increasing demand and ƒƒ Calls from customers in the Smart technology advances has resulted in Meter rollout pilot were pouring in. Call detail (their ƒƒ Have you been able to utilize your equivalent of utility Smart Meter or data repository to provide strategic Smart Grid data) is a rich data set that insights to different functional units. they will better new ERP. As additional revenue. “We just spent three telecommunications companies were for competitive advantage and generate years and US$50 million installing a faced with similar challenges. And you are telling ƒƒ A Private Equity firm that was me we cannot answer some pretty basic interested in taking the utility questions?” private had for weeks been asking for performance information. that this collection of industry experts if utilities view the explosion of data as couldn’t solve some basic blocking and In the 1980’s and 1990’s. exponential increases in data volumes. state-ofthe- covered: art Storage Area Network (SAN) to store all of this data. he was amazed stored. We have launched a Smart new technology was introduced. the industry treats the daunting task installing an average of four devices for of storing all this data as just another As the CEO glanced around the room at every meter monitored and this critical cost of doing business. Business Analytics the way we see it At work Meter Pilot and plan to spend an While preparing for a weekly staff additional US$500 million rolling it out meeting. Is your organization prepared They struggled to store and to process it (processing was a must for billing!) but for the future? largely ignored proactively managing Here are some questions to consider it and seldom thought to analyze it as you think about the state of your for business benefit. an opportunity to leverage information tackling problems. continue to make the grid smarter. If one place as the basis for e-analysis? 2 . the storage the staff. of an average tenure with the data must be collected. claiming 2X to 5X increases in their This is compounded as utilities monthly bills. fine for non-compliance in the A mature infrastructure burdened service order performance reporting. We have utility highlighted three key issues to be implemented a new 50TB. And yet today. organization’s readiness to cope with the telecommunications industry is emerging needs: one of the most “analytically savvy” in the business world. control the vital data elements of their companies were inundated business. customer and metering in challenges the world has ever seen. is mined extensively by their marketing while containing costs? Or are you departments with astounding results.

it is time for utilities posterity. preferences.can unlock participate in the Demand Response base to create a segmented. to support been cited as a key business tool the needs of their increasingly vocal for utilities to leverage this data and social stakeholders – the citizens. utility manage their information and support companies will need to implement their future business operations in an similar demand response programs. available to limit usage during are sometimes likened to bringing the ƒƒ Proactive maintenance of expensive periods of peak demand. 3 . Currently. and Initiatives such as Automated Meter ƒƒ Detection of theft and fraud in the ƒƒ Educating residents about incentives Infrastructure (AMI) and Smart Grid grid can reveal lost revenue. event. utilities have especially with the media attention had visibility into C&I customers’ given to current ‘smart’ infrastructure consumption patterns. transformers and other such heavy Enabling direct communication with equipment in the grid can save By working with customers enrolled metering devices opens up a realm of millions of dollars by postponing in the Demand Response program to possibilities for understanding usage replacement to the future. data is available to answer questions posed by managers.It is imperative for utilities to take the long view and build a With the installation of smart meters robust and competitive capability to at domestic residences. eBay and organizations where they represent a Yahoo. They the data. Facebook. executives and In preparation for these and other regulators. it needs to be structured in can also avoid the costly alternatives a logical manner which represents of building ‘peaking’ power generation the business model. Today’s consumers expect their utilities to evolve to the same levels. targeting significant value: program. Using interval meters. utility companies can In order to realize such value from service all customers effectively. utility industry into the Internet age. upgrades. entailing data organized on legacy models or conventional manual meter reading. much more automation. and consumption on a more granular basis to find the customers most likely to dynamics of your diverse customer – in time and in detail . during times of peak demand. approach for rate plans and energy ƒƒ Analyzing individual customer efficiency programs? ƒƒ Unbilled consumption identified by usage behavior and aggregated following the ‘meter-to-cash’ trail trends during a Demand Response The future of utilities can generate incremental revenue. This strategic capabilities or buying additional view is essential to ensuring that the power from the spot market. not merely stored for future challenges. from ‘smart’ devices. lower the demand on the grid during patterns that were not even registered. peak periods. to adopt a customer centric view of their world and organize their Demand Response programs have information accordingly. The is it spread over disparate systems or advantages to be gained include: technologies? The ability to measure and analyze ƒƒ Are you able to interpret and data about electricity distribution and ƒƒ Analyzing the entire customer base forecast the needs.ƒƒ Is your operational and customer let alone analyzed and leveraged with but on a much larger scale. efficient and sustainable manner. have set high standards for large opportunity for load reduction customer service and user experience. Online social networks and such programs are already in use at e-commerce. with industry leaders Commercial and Industrial (C&I) like Google.

payment.8% per Outage Management: campaign First call resolution Improved by 50% * Based on Capgemini experience 4 . ƒƒ Meter-to-Cash Analysis ƒƒ Customer Usage Pattern Analysis Fraud & Loss Prevention – Utilities ƒƒ Service reliability and performance reporting to regulatory bodies need near real time information about ƒƒ Transformer overload detection and circuit analysis loads to detect system energy losses ƒƒ Extension of the life of assets via predictive and pro-active maintenance through fraud or theft. These activities will need to be supported Potential impact* with timely analysis and data-driven insights. pilot. Forecasting and Load Management Demand Response programs that – Accurate forecasting is essential to enable customers to contribute to Customer Care and Management – timely and economical demand and energy load reduction during times of Utilities are now expected to provide supply management. Such ƒƒ Load profile characterization and definition for segmented customers – capabilities can realize significant residential and commercial financial benefits. Ensuring all meters are accounted for and billed accurately is essential to maximizing Example usage scenarios for Smart Analytics: revenue recovery. Revenue Management: Demand response: Compliance – Regulatory Improvements of 2% . and minimize the need for expensive challenging. and historical usage spot market purchases of power. Utilities are finding proactive process monitoring to be the ƒƒ Calculation and verification of demand response at a customer level key to quickly identifying unbilled ƒƒ Identification of fraud/theft of power via bottom-up consumption analysis and under-billed meters. demonstrate that business operations are functioning optimally. complete and accurate Collections Management: Reduction in technical losses by 15% reports on operational KPIs. utility companies expensive assets and avoid unplanned need to design and implement service interruptions.5% of annual Energy conservation: Non-compliance could result in Accounts Receivable Reduction of non-technical losses companies incurring penalties. Improvements of 3% . ƒƒ Calculation. companies need to billing. Business Analytics the way we see it Business drivers for Smart Asset Maintenance and Management information. weather capabilities to view and manage and supply constraints to effectively Revenue Management – As requests all aspects of their relationships manage their wholesale operations – for rate increases become more well beyond the basic enrollment. ‘smart’ technologies. customers with web-based interactive leverage data on consumption. programs to educate consumers in their service areas about energy efficiency and conservation. Utilities need to peak demand. Utilities need to develop Analytics – The ability to identify potential tailored pricing plans and provide Demand Response – To realize one problems in grid and power supply incentives for customers to use energy of the key benefits of implementing equipment can extend the life of efficiently. monitor and run response and interruptible load control programs). Customer Management: by 50% Cost improvements of 4% . verification and audit of assured load relief performance by load aggregators Energy Efficiency – Utilities need to ƒƒ Capacity Offset Forecasting for load reduction programs (like demand create.4% of Reduction in peak load by 5% requirements drive the need for annual revenues Energy conservation: consistent.

select Offset now How does my home compare? $58 Avg. Current Period Scope Filters Total Meters Installed Dollars (USD) Units ƒƒ Robust and scalable data model Periods Feb’10 150.542 2.450 2.208 958 Total Invoiced Amount for the Period Current Peroid $15.35 Tonnes levels of the organization. Home Offset Now ƒƒ Improved interfaces and decision Electricity Costs 04/16/2009 to 05/15/2009 Uses Least Uses Most support in the form of interactive REBATE PROGRAMS Energy $46 Energy Solar Rebate dashboards.884 Maintenance.825 7.335 5 . reports and ad hoc Winterizing Rebate My Home Window Rebate query tools to analyze data from $350 How does my usage compare? $320 ENERGY DIRECTORY Find a product or service different business areas in a single Usage Comparison Electric Use (KW/h) supplier in your area ENERGY ANALYSIS reporting solution thus providing May 2008 May 2009 My Energy Analyzer cross-functional business insights Home Profile Questions not previously available.360.468 3.Invoiced In Current Period ƒƒ Exploratory analysis of rate case Meters Invoiced studies.211 2.40 Tonnes Lighting $10 Food Storage $9 WORLD AVERAGE Key benefits of Smart Analytics 4.162.915 Past Peroid $1.000 solutions for utilities (uLDM) Utility Type Route Cycle Meters Assigned to Route Cycle Not Assigned to Route Cycle developed by Teradata that ensure Assignment Electric 147. via segmentation ƒƒ Ability to educate customers on the financial and environmental impacts Meter to Cash Decomposition Analysis Meter to Cash Decomposition Analysis of their energy usage via interactive tools and portals. Predictive Asset Residential C&I Roads 121. and energy efficiency Invoices 15. AVERAGE 20. It pushes “actionable intelligence” to all YOUR FOOTPRINT How does my home use energy? Electricity Costs 04/16/2009 to 05/15/2009 Hot water $13 17.002 5.121 1.287 programs Actual roads Estimated roads Zero Consumption Roads 13.885 like Demand Response West Management.S. Other $11 U. How can Smart Analytics help Interactive Dashboards your business? Smart Analytics offers utilities multidimensional support across MANAGE SUPPORT functional areas and provides Account Overview Bill & Payments My Energy Usage My Carbon Footprint My Devices My Profile an integrated platform for the My Carbon Footprint deployment of business intelligence.00 Tonnes Heating $2 Cooking $1 capabilities include: Analyze My Appliances To offset some of your carbon footprint. South ƒƒ Monitoring and analysis solutions Meters Invoiced Invoices pending validation Meters not invoiced East Invoices 130.420 $17. ƒƒ Improved ability to analyze and understand customers’ energy use patterns.801.083 resulting in time and cost savings.550 data accessibility. enable reuse Region Roads Collected Roads Not Collected Roads – AMI Not Responsive comprehensive documentation North Meter Roads 137. Time of Use (ToU) Premise Type Actual reads Estimated reads Zero Consumption billing. Previous period Roads .354 14.

from Teradata) that provide a robust deploy solutions for organizations of and flexible map demonstrating how all sizes.The Partnership Model Strategic partnership enhances their Customer. and easy-to. Teradata’s ability to store data automatically and economically by Our partner Teradata is a global how often it is accessed (i. hot/ leader in enterprise data warehousing warm/cold data). data attributes are related across the enterprise. ƒƒ Linear scalability that allows even Partnering provides the toolsets the largest of data sets to be to deliver solutions tailored to our analyzed.e. ƒƒ Centralization of data for analysis ƒƒ An analytical platform from Teradata and reporting. providing ƒƒ Utility Logical Data Models (uLDM affordable. powerful. Operational and the speed of delivery for analytical Financial information in order to solutions and helps create operational gain new business insights. enabling utility companies to evaluate usage information from Smart Meter technology alongside PARTY EVENT FINANCE INFRASTRUCTURE MASTER OFFERING FINANCIAL MANAGEMENT PROMOTION 6 . and facilitating enterprise Key partnership solutions include: business intelligence platforms. efficiencies while reducing risks. and analytic technologies. clients’ varying requirements and ƒƒ Historical information analysis using disparate systems.

faster decisions. About Teradata Teradata is the world’s largest company solely focused on raising intelligence through data warehousing. consulting services and enterprise analytics. Visit www. Teradata addresses a range of needs from data mart appliances to active enterprise data warehousing strategies. data warehouse appliances. and easy-to-deploy solutions. consulting services. Teradata gives companies a smarter. with affordable. Providing data warehousing for companies of all sizes. and 7 . needs. powerful. Teradata Active Enterprise Intelligence solutions give actionable insight for smarter. adding value and real opportunity across countless dimensions. and applications tailored to specific issues in a variety of industries.teradata. more competitive enterprise.

Capgemini has over 7. enables its clients to transform and perform through technologies. It provides high- function analytics-based solutions to all major industry sectors and business functions. drawing on a database of over 100 analytics client credentials and analytical models. the Collaborative Business ExperienceTM. technology and outsourcing services. one of the world’s foremost providers of consulting. from high-level strategy to managed outsourced services. We work with all the leading big data and analytical technologies. Capgemini Business Analytics Capgemini’s Business Analytics global practice network is a core unit within the Business Information Management (BIM) global service line and operates in 25 locations across the world. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working. and provide services to support business analytics. Business Analytics the way we see it Capgemini and Business Information Management About Capgemini Capgemini. and have experts and solutions across all of them. We recognize that analytics are specific to industry sector and sub-sector. 8 .000 consultants working in BIM across the world.

7 billion. Capgemini offices and research is available at creates and delivers business and www. its worldwide The Group reported 2011 global delivery model.000 A deeply multicultural organization. revenues of EUR 9. Together with its clients.capgemini. Business Experience™. Capgemini has developed its own Capgemini is one of the world’s way of working. All Rights Reserved. the Collaborative foremost providers of consulting. More information about our technology solutions that fit their needs and drive the results they want. .capgemini. and draws technology and outsourcing No part of this document may be modified.capgemini. on Rightshore®. Rightshore® is a trademark belonging to Capgemini © 2012 Capgemini. or visit About Capgemini and the Collaborative Business Experience With around 120. deleted or expanded by any process or means without prior written permission from Capgemini. For more information contact us at : bim@capgemini. people in 40 countries.