SAP® FOR UTILITIES

POWER GENERATION: INDUSTRY OVERVIEW

and capital expenditures for new or enhanced generation capacity.TIMES ARE CHANGING The SAP® for Utilities set of solutions enables power generation utilities to manage assets. The solutions can handle all enterprise asset management processes from collaborative engineering to financial management and analytics. and comply with regulatory. . and security requirements. costs. safety.

a powerful integration and application platform. SAP for Utilities solutions can help your utility improve its operational efficiency. meter operation. . SAP for Utilities solutions are an investment you can’t outgrow – no matter how times are changing. transmission and distribution. And they help you adopt the best practices SAP has developed in over 30 years of working with major utilities and industry leaders from around the world. . AND SO MUST YOU SAP® SOLUTIONS MAKE CHANGE EASIER You don’t run a generic business. So why use generic solutions? SAP for Utilities is a set of state-of-the-art software solutions tailored to the specific standards. tools. these solutions deliver rich functionality and productivity-building tools throughout your organization. and challenges of the diverse utilities industry. And because they offer easy integration and virtually unlimited scalability. operate. They are built to fit the way you do business. You can minimize risk and increase the reliability of your solution because SAP for Utilities provides the content. helping utilities gain enterprise-wide visibility for better decision making in critical business areas. processes. and retail and services utilities. while enabling innovative business models and customer services. . Supported by the SAP NetWeaver™ platform. And they comprise the industry’s leading and most comprehensive set of solutions. and monitor your enterprise solution. and methodologies you need to implement. and increase profitability. including power generation.. mitigate risk.

These solutions deliver the functionality. and good corporate governance – all of these factors result in regulations that must be managed along with your competitive requirements. Heightened public scrutiny. Yet. with an R & D investment that tops US$1. regardless of the capital costs and investments required. environmental controls. Synchronous information has upgraded our employees’ operational capability. outage periods. SAP is ready when you are. and regulatory compliance. As energy markets undergo the complex transition from incumbent to competitive. The future is at stake. integration. But are you ready for it? You are.3 billion and supports continuous innovation. costs. As the market leader. Built from decades of experience with the best-run utilities companies in the world. The demand to find new ways to reduce costs – while managing asset reliability. The pressures to effectively manage your growing portfolios of fleets and assets are immense. Chief Management Head of the Enterprise ERP Office. the reliability and capacity of your power plants must be maintained. These challenges have to be met. SAP for Utilities solutions support critical processes and leading industry practices that run your company. To help your company get ready for tomorrow. and the SAP for Utilities set of solutions. strict schedule compliance. you must adapt with them. . That is why more than 950 utilities worldwide trust SAP with their future. Korea Hydro & Nuclear Power Company SAP Is Ready When You Are These are times of significant challenge for power generation companies. the world’s leading provider of business software. and flexibility you need to overcome the challenges of today’s and tomorrow’s power generation markets. SAP is ready today. And only SAP offers the SAP NetWeaver platform – the integration and application platform supporting these solutions and allowing for integration of processes and information among disparate business and technical applications. activity-based costing. and balanced scorecard] are linked in real time. and the emergence of renewable energy supplies – is nonstop.” Woo Bang Lee. increased emphasis on data and access security. if you have the support of SAP. regulations. Only SAP for Utilities offers a complete set of integrated solutions for your power plant – solutions that fully support the best and next practices required by leading entities like the Institute of Nuclear Power Operations (INPO) and North American Electric Reliability Council (NERC).WHEN OPPORTUNIT Y KNOCKS BUILT FOR YOUR INDUSTRY SCALED TO YOUR BUSINESS DESIGNED FOR YOUR FUTURE “All tasks [strategic enterprise management. And the system ensures business transparency throughout the entire asset value chain. Integrated plant-management support gives you visibility into your complete asset life cycle from design to decommissioning – managing your asset reliability.

. YOU HAVE TO BE READY SAP® solutions for power generation utilities enable the key processes that are critical to running power plants and facilities – including enterprise asset management – with support that’s centered on reliability. . . . and regulatory compliance. reduced costs.

environment. financials. costs. plant maintenance and workforce management. and subcontracting. as well as project and document management. Standard budgets can be generated automatically based on the desired budget strategy. turnaround. and safety procedures. with financial information. You can better manage the risks of unplanned downtimes and increase the efficiency and safety levels of maintenance planning and execution. work clearance and permitting processes.GETTING READY MEANS GET READY FOR INTEGRATED PLANT MANAGEMENT PROCESSES The SAP for Utilities solutions support the key processes that are critical to running power plants and facilities. . such as actual maintenance costs. planned maintenance costs. health. power generation companies must be able to guarantee schedule compliance with optimized outage timelines to meet their customers’ energy demands. and maintenance-related budget data. spare parts management. Because critical information. Maintenance Cost Budgeting Plant Maintenance and Safety Regardless of the financial resources available for operating and maintaining technical installations. including end-to-end support for your asset management practices. generation companies can face considerable difficulty developing accurate maintenance budgets. while at the same time adhering to a slate of stringent safety regulations. They provide generation companies with improved operational visibility to support equipment monitoring along the entire asset life cycle of a plant and manage shutdown. project and document management. analytics. and regulations. reducing budget preparation time. plants’ life cycles by integrating plant maintenance. The SAP for Utilities solutions give you added value by providing an integrated flow of information from procurement. The SAP for Utilities solutions allow generation companies to define a maintenance budget and run maintenance analytics on existing asset life-cycle management data. and outage periods most efficiently. The SAP for Utilities solutions are helping generation companies take a more strategic approach to managing their power For power generation companies. maintenance expenditures typically account for a significant amount of operating costs. integrated resource planning and risk evaluation capabilities. and investment planning processes – giving you true. Your maintenance processes need to be centered on reliability. are often insufficiently integrated.

Relevant systems and key performance indicators can be accessed from a single user interface. . and complete information from technical and business domains. enter. Information about asset-related processes and documents. and market prices. and share role-based information from any location using any mobile device to perform short. financials and controlling. up-to-date. is readily available. production costs. The SAP for Utilities solutions allow field employees to access. Unified Plant and Business Information The emissions management capability lets you leverage the functionality of the SAP for Utilities solutions for the cost-efficient monitoring and controlling of emissions output. and generating reports.. As a result. such as the Clean Air Act and the Kyoto protocols. accurate. such as load capability and reserve capacity. they lead to improved plant operations and reduced plant costs. and they manage compliance to regulations. inspecting. The SAP for Utilities solutions enable the integration and unification of plant and business information into a single view. they allow for better-informed riskmanagement decisions. while managers from all levels need fast. and overhauling equipment. . including Competitive energy markets create the need for greater velocity in business decision making.and long-cycle work for repairing. GETTING INTEGRATED Mobile Asset Management Power generation companies are seeking ways to eliminate the inefficiencies of paper-based systems and extend the ability of service technicians to connect easily from repair sites to asset information. . tracking compliance. Emissions Management decisions for new generation facilities and future costs of emissions rights. and productionrelevant data.

.GETTING INTEGRATED MEANS SAP for Utilities solutions deliver added value by providing an integrated flow of information across your entire value chain – information you need for integrated resource planning and risk evaluation.

purchase-order management. align employee goals with organizational goals. and reduces transaction costs. . Integrated Financial Information The SAP for Utilities solutions support employee life-cycle management to help power generation companies identify and retain top performers. environmental processes. including administration. To gain visibility along the entire value chain. monitor project progress. enables collaboration with customers and vendors on payment and settlement activities. strategic decision making. . This improves investor communication. and maximize the impact of training. such as requisitioning.. and invoice verification. nies lower costs. companies are unable to make informed strategic decisions. bidding and contract management. time management. They enable supplier qualification and candidate selection. The SAP for Utilities solutions integrate all financial and business performance information with management processes for effective. more accurate reporting. and supply security. employee transactionmanagement features streamline and integrate essential human capital management processes. leverage their talents. Management must be able to demonstrate compliance and good faith through accurate and detailed records. leading to reduced material inventory and more efficient information exchange with contractors and suppliers. The SAP for Utilities solutions support workforce deployment by allowing companies to create project teams based on skills and availability. The SAP for Utilities solutions improve corporate governance and help manage compliance by providing functions that centralize the documentation of internal controls. payroll. and collaborative engineering and project management. as well as financials. streamlines the financial supply chain. but also catalog-based self-service requisitioning for material and services. enabling detailed insight into various audit functions and providing faster. These include online controls for internal and external auditors and the ability to export data to auditing software. And to help compa- Without insight into financial and business performance. performance ratings. labor-law compliance. Corporate Governance and Regulatory Compliance Human Capital Management and Workforce Deployment Utilities around the world face close scrutiny of financial records. and legal reporting. . GETTING SAP FOR UTILITIES Procurement The SAP for Utilities solutions help power generation companies to streamline procurement and revision processes. and analyze results. safety precautions. Support for whistle blowers helps organizations cost-effectively address the legal requirements of the SarbanesOxley Act and reduce the risk of noncompliance. track time. procurement is tightly integrated with maintenance operations and project management. SAP for Utilities solutions support not only traditional processes.

and third-party expenditures. contractors. monitoring project costs and regulatory risks. as well as streamlining corporate-wide buying processes • Real-time information through integration of technical and commercial processes and systems • Better management of investment opportunities and risks supporting acquisition and retirement strategies through provision of key performance indicators and the integration of strategic enterprise management techniques • Integrated financial information using standardized processes providing visibility on capital. and partners.AND GETTING SAP FOR UTILITIES MEANS GET READY FOR BUSINESS BENEFITS “The project helps reduce the existing range of software considerably – and the heterogeneous data-processing landscape.” Norbert Stoll. and innovative employee life-cycle management that aligns employee talents with corporate goals . and handle compliance for environmental standards and corporate governance.ON Kraftwerke GmbH The SAP for Utilities solutions enable power companies to manage asset reliability and costs. contractors. increase safety and security. authorities. and business data protection • Optimized procurement processes and material inventory by enabling collaboration and contracting of operational management services with suppliers. facility access. The implementation of SAP for Utilities plant maintenance software enables all the technical and commercial areas involved at the various manufacturing sites to handle the entire integrated process of maintenance processing using SAP applications. deployment of the workforce based on skills and availability. processes. Key attendant business benefits of implementing these solutions include: • Improved management of asset reliability and costs by providing a consistent view on asset life-cycle information – from design to decommissioning • Increased plant and work safety through visibility and validation of all critical work sequences and responsibilities • Better management of environmental compliance through monitoring and reporting of critical processes and assets • Expanded security through monitoring of project resources. E. They provide a business solution for faster decision making and more efficient collaboration within the company and with suppliers. Project Manager. energy wholesalers. and integrating business performance information with management processes • Streamlined and simplified workforce-related processes through integrated employee transaction management. operational. and other market participants.

Asset Specification. .. health. including work clearance management • Investment management • Collaborative engineering and project management Procurement and Asset Construction. and Implementation • Mobile asset management • Material parts and services procurement • Employee and contractor management • Integrated asset accounting and maintenance budgeting • Supplier qualification and candidate selection • Asset performance analysis Decommissioning and Disposal • Bidding and contract management • Collaborative engineering and project management • Asset transfer and disposal • Collaborative engineering and project management • Project and investment controlling Maintenance and Operations Management • Technical assets management. and safety management. G E T T I N G R E S U LT S SAP for Utilities Supports Business Processes Investment Planning. including document and equipment data management • Waste management • Regulatory compliance management • Asset remarketing Enterprise Management • Maintenance planning and execution • Preventive and predictive maintenance • Reliability-centered maintenance • Financial supply chain management • Human capital management . . Installation. • Environment. and Design SAP for Utilities solutions enable power generation companies to benefit from cost management and asset optimization strategies needed to address high capital costs and investments for plant reliability and capacity upgrades.

You can adapt rapidly to new or modified business processes. do business more effectively with external business partners. the value and life expectancy of your current systems are increased. enterprise-scale business solutions. the SAP NetWeaver platform enables Enterprise Services Architecture.WITH SAP SOLUTIONS. As the technical foundation for SAP service-based. YOU’RE READY GET READY FOR LOWER TCO AND FASTER ROI – POWERED BY SAP NetWeaver With the SAP NetWeaver platform powering SAP for Utilities solutions. design. operating costs decline. which provides a blueprint for serviceoriented business solutions. It is the power of SAP NetWeaver that enables SAP solutions to support the complex processes inherent to the utilities industry. while IT investments go further than ever. . and replace your old and outdated business practices with best practices. you can flexibly and quickly plan. Using this power. The SAP NetWeaver platform combines SAP’s experience in integrated enterprise applications with the flexibility of Web services and open standards. Because you can create new solutions on top of existing applications. and execute new processes and business strategies. These capabilities set your utility company on a firm foundation for flexible growth and give you the high levels of adaptability and openness required to reduce total cost of ownership. speeding up your ROI. implement.

. and meet the challenges of increasingly competitive energy markets head-on. You can master business processes up and down your asset value chain. accurately monitor your environmental performance. You can adapt to changing markets.sap.com/utilities. visit the SAP Web site today at www. . You can be ready for whatever tomorrow brings. . FOR T ODAY AND T OMORROW ARE YOU READY TO MEET THE FUTURE? SAP Is SAP Is Ready – Are You? And with the SAP for Utilities solutions for power generation companies. For more detailed information about the SAP for Utilities solutions for power generation companies and how they can help your business always be ready. you can be too..

in 70 countries around the globe. and deregulated markets rely on SAP for Utilities. water. . transitioning.AS TIMES CHANGE. and municipality utilities in regulated. gas. more than 950 leading electricity. EVERYONE NEEDS Today.

education. they integrate with virtually all SAP and non-SAP applications.com/industries/utilities. Today. including yours.” Lars Holten. including the following: consulting.450 customers in over 120 countries run more than 84. SOMEONE THEY CAN COUNT ON A PARTNER WHO IS ALWAYS READY SAP is the world’s leading provider of business software solutions.sap. • SAP xApp™ Emissions Management packaged composite application • mySAP™ Supplier Relationship Management solution • mySAP ERP solution Each solution is backed by the global expertise of SAP services. and support to custom development and hosting. And SAP’s global organization includes hundreds of professionals who work exclusively with your industry. The best-run companies are ready for anything. And SAP NetWeaver is an ideal platform for optimizing and developing our IT environment. SAP offers best-in-class solutions and applications for virtually every aspect of your power generation business. the open integration and application technology platform from SAP. more than 24. present. from • Solutions scaled to your business: Although SAP is known for serving the world’s largest corporations – including 80 of the FORTUNE 100 – nearly two-thirds of SAP customers have annual revenues of US$500 million or less. .000 installations of SAP software – from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. offering the widest range of services and support that organizations require. Statkraft • SAP Service and Asset Management solution • SAP Mobile Asset Management application • Solutions designed for your industry: SAP offers a full range of software that supports the most important business processes and best practices in more than 25 industries. SAP solutions fit your size and budget today – while offering unlimited scalability for tomorrow.. and future. . our employees no longer have to come to grips with a new system every time new functionality is introduced. Read on for more details about how the SAP for Utilities set of solutions can help you join the best-run utilities that run SAP: www. your utilities business is assured of the following: “Thanks to SAP Enterprise Portal. . CIO. By choosing SAP. leveraging your investments – past. • Solutions made for your success: Because SAP solutions are built on the SAP NetWeaver platform.

Printed on environmentally friendly paper. All other product and service names mentioned are the trademarks of their respective companies. xApps. SAP. xApp. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only. and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. R/3.com.www. © These materials are subject to change without notice. . SAP NetWeaver. without representation or warranty of any kind.com /contactsap 50 073 530 (05/03) 2005 by SAP AG. and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services. if any.sap. mySAP. All rights reserved. Nothing herein should be construed as constituting an additional warranty. mySAP. Data contained in this document serves informational purposes only. National product specifications may vary.

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