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INDUSTRY SOLUTIONS –

SAP FOR UTILITIES HIGHLIGHTS

Welcome to the lesson on "Industry Solutions – SAP for Utilities Highlights.“ This lesson
will help you understand how an SAP solution works for a particular industry, in this case,
companies in the utilities industry.

1
TABLE OF CONTENTS

Industry Solutions – Utilities Overview……….……............. 6

SAP for Utilities Solution Map………………………….……. 11

SAP for Utilities – Business Processes……………………. 16

SAP for Utilities – Business Benefits…….……….............. 22

SAP for Utilities – Meeting Industry Requirements........... 34

SAP for Utilities – Customers…….…….……….................. 42

© SAP AG 2005, Channel Partner Sales Training 2

In the overview lesson on "SAP Industry Solutions" in Learning Map 3, you learned how
industry solutions are developed, how well SAP is established in developing industry
solutions, and how these solutions deliver value. This lesson will provide you with a high-
level view of the SAP industry solution for utilities and demonstrate how SAP is working
to provide solutions within this industry.

We will begin with an overview of the utilities industry and the challenges that companies
in that industry face. We will then take a tour of the SAP for Utilities Solution Map and
after that review the business processes and benefits provided by SAP for Utilities. We
will follow that with a discussion about how SAP for Utilities meets the requirements of
the utilities industry and conclude with a look at a sample of the many customers who
have benefitted from implementing SAP for Utilities.

2
LEARNING OBJECTIVES

At the end of this lesson, you will be able to:


„ Identify the challenges, business processes, and
requirements of the utilities industry
„ Explain how the SAP for Utilities solution delivers benefits
for the utilities industry
„ Describe the SAP for Utilities Solution Map and value chain

© SAP AG 2005, Channel Partner Sales Training 3

At the end of this lesson, you will be able to:


• Identify the challenges, business processes, and requirements of the utilities
industry,
• Explain how the SAP for Utilities industry solution delivers benefits for the utilities
industry, and
• Describe the SAP Utilities Solution Map and value chain.

3
PREREQUISITES

Review these lessons:


„ "Introduction to mySAP Business Suite"
„ "SAP NetWeaver Highlights"
„ "mySAP ERP Highlights"
„ "SAP Industry Solutions – Overview"

© SAP AG 2005, Channel Partner Sales Training 4

As a prerequisite to this lesson, please make sure that you have reviewed these lessons
in Learning Map 3:
• "Introduction to mySAP Business Suite,"
• "SAP NetWeaver Highlights,"
• "mySAP ERP Highlights," and
• "SAP Industry Solutions – Overview."

4
KEY VOCABULARY

„ CAD – Computer-aided Design

„ CAM – Computer-aided Manufacturing

„ ERP – Enterprise Resource Planning

„ ROI – Return on Investment

„ SCADA – Supervisory Control and Data Acquisition

„ SCM – Supply Chain Management

„ SRM – Supplier Relationship Management

© SAP AG 2005, Channel Partner Sales Training 5

Key terms used during this lesson include:


• CAD — Computer-aided Design,
• CAM — Computer-aided Manufacturing,
• ERP — Enterprise Resource Planning,
• ROI — Return on Investment,
• SCADA — Supervisory Control and Data Acquisition,
• SCM — Supply Chain Management, and
• SRM — Supplier Relationship Management.

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INDUSTRY SOLUTIONS – UTILITIES OVERVIEW

© SAP AG 2005, Channel Partner Sales Training 6

SAP for Utilities is only one example of the many industry solutions provided by SAP.
Additional information on this and SAP's other industry solutions can always be found at
www.sap.com.

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INDUSTRY SOLUTION TYPES

Financial Services Service Industries


SAP for Banking SAP for Media
SAP for Insurance SAP for Logistics Service Providers
SAP for Financial Service Providers SAP for Telecommunications
SAP for Professional Services SAP for Utilities
SAP for Hospitality Services
Discrete Industries
SAP for Aerospace & Defense Process Industries
SAP for Automotive SAP for Chemicals
SAP for Engineering, Construction & Operations SAP for Mill Products
SAP for High Tech SAP for Oil & Gas
SAP for Industrial Machinery & Components SAP for Mining
SAP for Railways SAP for Life Sciences
Public Services Consumer Industries
SAP for Healthcare SAP for Consumer Products
SAP for Higher Education & Research SAP for Retail
SAP for Public Sector
SAP for Postal Services

Designed for Industry — Scaled for Business — Ready for the Future

© SAP AG 2005, Channel Partner Sales Training 7

In the "SAP Industry Solutions–Overview" lesson, you learned that SAP ensures that our
industry solutions provide the end-to-end functionality needed to run your customers'
enterprises more efficiently. These comprehensive solutions are now available for more
than 25 industries, one of which is SAP for Utilities. We'll begin by looking at the
challenges that utility companies face today.

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UTILITIES INDUSTRY – A TIME OF CHALLENGE

“This is a time of significant change and challenge for utilities. The


best companies will adapt and thrive amidst the new market dynamics
and will use information technology as the basis for their success.”
- Zarko Sumic, Vice President, META Group, Inc.

© SAP AG 2005, Channel Partner Sales Training 8

According to Zarko Sumic, Vice President of META Group, Inc., “This is a time of
significant change and challenge for utilities. The best companies will adapt and thrive
amidst the new market dynamics and will use information technology as the basis for
their success.”

8
UTILITIES INDUSTRY – A TIME OF CHALLENGE

“This is a time of significant change and challenge for utilities. The


best companies will adapt and thrive amidst the new market dynamics
and will use information technology as the basis for their success.”
- Zarko Sumic, Vice President, META Group, Inc.

© SAP AG 2005, Channel Partner Sales Training 9

As you have just heard, the utilities industry is facing significant challenges. Today’s
utilities face ongoing demands from regulatory bodies, as well as constant pressure to
raise productivity and lower costs. As energy markets are undergoing a complex
transition from incumbent to competitive and are moving toward increasingly global
operations and cooperation, utilities must remain focused on their primary goal: to
provide more competitive electricity, gas and water services for residential, commercial
and industrial customers.

To do this, utilities are looking beyond standard practices to new business strategies that
promise results. But what strategies and practices are right for a given company? How
can it thrive amid regulatory and public scrutiny? How can it balance reliability of supply,
operational excellence, and workforce optimization? And what are the best solutions for
facilitating its strategies? To answer these questions, utilities can benefit from strategic
insight and practical advice from thought leaders within the utilities industry.

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SAP SOLUTIONS FOR ELECTRICITY, GAS AND
WATER UTILITIES

The SAP for Utilities set of


solutions is designed to
help utilities master
business processes along
the entire asset- and
customer-centric value
chain and across all
segments—including
electricity, gas and water.

© SAP AG 2005, Channel Partner Sales Training 10

The SAP for Utilities set of solutions is designed to help utilities master business
processes along the entire asset- and customer-centric value chain and across all
segments—including electricity, gas and water. SAP for Utilities provides a number of
tools to help optimize these processes.

10
SAP FOR UTILITIES – SOLUTION MAP

© SAP AG 2005, Channel Partner Sales Training 11

One of these tools is the solution map, which is built using input from customers and
industry analysts, and added to the technical expertise SAP has acquired through our
own extensive business experience and research. SAP solution maps are multilevel
blueprints of processes defined for a particular industry. They help your customers
visualize, plan, and implement a coherent, integrated and comprehensive information
technology solution. They also show how various business processes are handled,
including those processes supported by SAP and our partners. With solution maps, your
customers quickly understand business solutions and the business value they can bring.

We'll now look at an overview of the Solution Map for the SAP for Utilities solution.

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SAP SOLUTION MAP – UTILITIES
Suppliers & Generation Transmission & Meter Operation Retail & Services Customers &
Partners Distribution Channels

Asset Lifecycle & Resource Management


Supply Operations
Meter Reading Services

Energy Capital Management


Selling of Energy and Services
Customer Service Management
Billing of Energy and Services
Customer Financial Management
Collaborative Services & Intercompany Data Exchange

Enterprise Management & Support


Analytics
Strategic Enterprise
Financial Analytics Operations Analytics Workforce Analytics
Management
Financials
Financial Supply Chain
Financial Accounting Management Accounting Corporate Governance
Management
Human Capital Management
Workforce Process
Talent Management HCM Service Delivery Workforce Deployment
Management
Corporate Services
Environment, Health Incentive and Commission
Travel Management Real Estate Management
and Safety Management
Operations Support
Lifecycle Data Project Portfolio
Quality Management Indirect Procurement Global Trade Services
Management Management

© SAP AG 2005, Channel Partner Sales Training 12

The SAP for Utilities Solution Map shows the industry value chain at the top, which
details the different processes and operations within the industry. And for each of these
processes, the maps have interactive drill-down functionality.

12
SAP SOLUTION MAP – UTILITIES
Suppliers & Generation Transmission & Meter Operation Retail & Services Customers &
Partners Distribution Channels

Asset Lifecycle & Resource Management


Plant Engineering and Construction
Plant Maintenance and Operations
Decommissioning

Supply Operations
Meter Reading Services

The Asset Lifecycle andEnergy


Resource Management
Capital Management
scenario group supports all processes for
Selling the planning,
of Energy and Services
construction, operation, maintenance and disconnection
Customer Service Management

of technical installations. Billing of Energy and Services


Customer Financial Management
Collaborative Services & Intercompany Data Exchange

Enterprise Management & Support


Analytics
Strategic Enterprise
Financial Analytics Operations Analytics Workforce Analytics
Management
Financials
Financial Supply Chain
Financial Accounting Management Accounting Corporate Governance
Management
Human Capital Management
Workforce Process
Talent Management HCM Service Delivery Workforce Deployment
Management
Corporate Services

© SAP AG 2005, Channel Partner Sales Training 13

Here you see detail on the Asset Lifecycle and Resource Management scenario group,
which supports all processes for the planning, construction, operation, maintenance, and
disconnection of technical installations.

As we follow the drill-down functionality for the Asset Lifecycle and Resource
Management group, you are then presented with the additional functions of:
• Plant Engineering and Construction,
• Plant Maintenance and Operations, and
• Decommissioning.

13
SAP SOLUTION MAP – UTILITIES
Suppliers & Generation Transmission & Meter Operation Retail & Services Customers &
Partners Distribution Channels

Asset Lifecycle & Resource Management


Plant Engineering and Construction
Plant Maintenance and Operations
Decommissioning
Business Goals & Objectives
Managing Fixed Assets & Resources
„ Reduce lifecycle costs
„ Optimize capital equipment and asset utilization

Project
The plant engineering
Execution and construction
scenario supports
engineering processes
Project and facilitates
Planning and
Scoping
construction project
management tasks.

Document
Management

© SAP AG 2005, Channel Partner Sales Training 14

From that level, you can drill down still further from the Plant Engineering and
Construction scenario, which supports engineering processes and facilitates construction
project management tasks. You are then presented with the tasks and processes that fall
within this area, including Project Execution, Project Planning and Scoping, and
Document Management. You are also provided with information on how SAP provides
the solution.

The complete solution map for the utilities industry is available at


www.sap.com/solutions/businessmaps. And for more information on the use of solution
maps, please refer to the "SAP Solution Composer and SAP Business Maps—Overview"
lesson in Learning Map 2, as well as the lesson on “How to Use Solution Composer” in
the Just-in-Time section of Learning Map 2.

14
15
SAP FOR UTILITIES – BUSINESS PROCESSES

© SAP AG 2005, Channel Partner Sales Training 16

We will now move on to discuss the common business processes within the SAP for
Utilities industry solution.

16
SAP FOR UTILITIES – BUSINESS PROCESSES

© SAP AG 2005, Channel Partner Sales Training 17

The SAP for Utilities solution portfolio enables utilities of any size to manage and
optimize core business processes. The solution provides the functionality needed to
increase operational efficiencies, mitigate and manage risk, and drive innovation
throughout the value chain. Additional benefits include enterprise-wide visibility for better
decision making and competitive advantage.

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SAP FOR UTILITIES – BUSINESS PROCESSES

„ Generation utilities
„ Transmission and distribution utilities
„ Retail and services utilities
„ Water utilities

© SAP AG 2005, Channel Partner Sales Training 18

And SAP solutions support business processes in specific segments within the utilities
industry, addressing the needs of various types of utilities.
Generation utilities, for example, handle key engineering activities, perform plant
operations and maintenance, and manage decommissioning of generation units or
plants.

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SAP FOR UTILITIES – BUSINESS PROCESSES

„ Generation utilities
„ Transmission and distribution utilities
„ Retail and services utilities
„ Water utilities

© SAP AG 2005, Channel Partner Sales Training 19

Transmission and distribution utilities operate and maintain the grid infrastructure;
perform a comprehensive range of billing procedures; handle reconciliation, settlement,
and supplier-switch activities in deregulated markets; and manage complex energy data.

19
SAP FOR UTILITIES – BUSINESS PROCESSES

„ Generation utilities
„ Transmission and distribution utilities
„ Retail and services utilities
„ Water utilities

© SAP AG 2005, Channel Partner Sales Training 20

Retail and services utilities manage marketing campaigns and multichannel sales
processes, increase the service efficiency, perform a comprehensive range of billing
procedures, and handle supplier-switch activities in deregulated markets.

20
SAP FOR UTILITIES – BUSINESS PROCESSES

„ Generation utilities
„ Transmission and distribution utilities
„ Retail and services utilities
„ Water utilities

© SAP AG 2005, Channel Partner Sales Training 21

And water utilities manage the connection and device infrastructure, handle customer-
service activities, and take advantage of the functionality for accounts receivable and
collections handling.

21
SAP FOR UTILITIES – BUSINESS BENEFITS

© SAP AG 2005, Channel Partner Sales Training 22

So how does the SAP for Utilities Industry Solution deliver business benefits for your
customers? Let’s take a look…

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SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 23

SAP for Utilities delivers new efficiencies in business processes, customer relationships,
and partnerships, and offers additional business benefits, such as enhanced
responsiveness. This enables enterprise-wide visibility for better decision making in key
business areas, which leads to increased operational efficiency, reduced risk, and
greater innovation throughout your customer's value chain.

23
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 24

SAP solutions support the mass processing of consumption billing and customer-related
financial data, increasing the efficiency of back-office processes. SAP solutions also
integrate financial and customer service capabilities, and help your customers comply
with compliance requirements, such as those of the Sarbanes-Oxley Act.

24
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 25

SAP solutions offer your customers' companies improved asset management, as their
companies can manage assets throughout their lifecycle, integrating information and
processes from financials, procurement, plant and network maintenance, and technical
systems.

25
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 26

SAP solutions enable efficient data exchange with suppliers, contractors, regulators and
market participants for more efficient collaborative services.

26
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 27

The SAP for Utilities solution improves security and safety compliance, through
supporting validations of critical work sequences and responsibilities, providing clear
audit trails and enabling the analysis of failures and their causes.

27
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 28

With SAP solutions, utilities gain enhanced sales and marketing capabilities, as they can
execute commercial, industrial, chain and clustered-sales contracts. The management of
sales order processes for residential clients is also provided.

28
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 29

SAP solutions improve customer service for residential, chain, commercial and industrial
customers. They can assist in delivering fast and personalized services, provide up-to-
the-minute account information and manage service-level agreements, which leads to
more loyal customers and greater profit.

According to a satisfied customer at Energie AG, “The main advantage is that—thanks to


total integration with SAP for Utilities and its energy data management capabilities—we
were able to improve customer information and billing processes considerably and
perform our sales activities much more efficiently.”

29
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 30

SAP solutions help identify and retain top performers, align employee and organizational
goals, and optimize training with human resources. These simplified workforce processes
also streamline key processes involving administration, payroll, time management and
legal reporting.

30
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 31

SAP solutions integrate financial data with management processes for effective decision
making. Better integration of financial information improves investor communications,
streamlines the financial supply chain, and reduces transaction costs.

31
SAP FOR UTILITIES – BUSINESS BENEFITS

„ Enhanced responsiveness
„ Increased efficiency of back-office processes
„ Improved asset management
„ More efficient collaborative services
„ Improved security and safety compliance
„ Enhanced sales and marketing
„ Improved customer service for more
loyal customers
„ Simplified workforce processes
„ Better integration of financial information
„ Lower Total Cost of Ownership

© SAP AG 2005, Channel Partner Sales Training 32

And SAP for Utilities enables the leveraging of existing IT investments and integrates
with Computer-aided Design (or CAD), Computer-aided Manufacturing (or CAM), plant
information, Supervisory Control and Data Acquisition (or SCADA), outage management,
portfolio management and automated meter-reading systems, all of which results in
lower Total Cost of Ownership.

32
33
SAP FOR UTILITIES – MEETING
INDUSTRY REQUIREMENTS

© SAP AG 2005, Channel Partner Sales Training 34

Here are some examples of how SAP meets the specific requirements of the utilities
industry, through functionality that meets the needs of your present and future customer
base:

34
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 35

SAP solutions increase your customers' responsiveness through enterprise-wide visibility


for better decision making in critical business areas. This helps increase operational
efficiency, mitigates risk, and supports innovation. In addition, SAP for Utilities integrates
the entire utilities value chain—from meter reading to invoicing, and from design to
decommissioning.

35
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 36

SAP solutions help your customers solidify risk management through efficient load
schedule management, reliable forecasting, and the management of high-volume interval
data. And your utilities customers can integrate information and processes from portfolio
management, energy trading, and risk management.

36
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 37

SAP solutions improve corporate governance and help your customers manage
regulatory compliance by providing functions that centralize the documentation of internal
controls. These functions include online controls for internal and external auditors, as
well as the ability to export data to auditing software. This enables detailed insight into
audit functions and provides faster, more accurate reporting. And support for whistle-
blowers helps organizations cost-effectively address the legal requirements of the
Sarbanes-Oxley Act and reduce the risk of noncompliance.

37
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 38

SAP solutions help utilities take a strategic approach to managing assets throughout the
equipment lifecycle, and improve asset utilization and reliability. SAP solutions integrate
information and processes from financials, investment planning, procurement, plant and
network maintenance, and work clearance management and connect project and work
management capabilities with best-of-breed solutions for geographic information
systems, scheduling, outage management and construction planning.

38
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 39

SAP solutions automate core billing and settlement processes by meeting the demands
for mass processing of billing consumption and customer-related financial data. This
integrates the flow of data, such as meter reading, credit processing, and collections,
while facilitating compliance with legal requirements. SAP solutions enable efficient and
automated data exchange processes with suppliers and contractors, regulators, and
market participants, and support the management of high-volume data like billing and
settlement processes.

39
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 40

SAP solutions help utilities excel in customer service management for residential, chain,
commercial, and industrial customers to increase customer loyalty and build profitable
customer relations. Utilities can deliver fast and personalized services; provide up-to-the-
minute information on interaction history, technical environment, and account status; and
effectively manage service-level agreements.

40
MEETING INDUSTRY REQUIREMENTS

„ Increase responsiveness through


enterprise-wide visibility
„ Solidify risk management
„ Manage regulatory compliance
„ Improve asset utilization
and reliability
„ Automate core billing and
settlement processes
„ Excel in service management to
increase customer loyalty
„ Acquire new customers with
expanded service portfolios

© SAP AG 2005, Channel Partner Sales Training 41

And finally, SAP solutions make it easier than ever for your customers to themselves
acquire new customers with expanded service portfolios. SAP solutions support
commercial, industrial, chain, and clustered sales contracts, and offer closed-loop
processes from quotation to service delivery. Utilities can design, coordinate, execute,
and evaluate targeted and personalized marketing campaigns by using utility-specific
information, such as consumer behavior or technical environment. Sales and marketing
are tightly integrated with service, billing, financials, and energy data management, which
supports efficient acquisition, service, data exchange, and partner collaboration.

41
SAP FOR UTILITIES – CUSTOMERS

© SAP AG 2005, Channel Partner Sales Training 42

One of the best measures of the success of SAP's solutions is the satisfaction of our
customers. Let’s look at the track record for SAP Industry Solutions for Utilities.

42
SAMPLE OF CUSTOMERS USING
SAP FOR UTILITIES

„ EDF, France „ Entergy, U.S.


„ Enel, Italy „ FirstEnergy, U.S.
„ EDP, Portugal „ City of Tacoma, U.S.
„ RWE, Germany „ Public Service Electric & Gas, U.S.
„ E.ON, Germany „ BC Hydro, Canada
„ EnBW, Germany „ GazMet, Canada
„ Vattenfall, Nordics/Germany „ CLP Power, Hong Kong
„ Centrica, UK „ Kyushu Electric Power, Japan
„ Yorkshire Water, UK „ EnergyAustralia, Australia
„ Electrabel, Belgium „ City of Cape Town, South Africa
„ NUON, Netherlands „ Aguas Argentinas, Argentina
„ Iberdrola, Spain „ Bandeirante Energia, Brazil

© SAP AG 2005, Channel Partner Sales Training 43

SAP for Utilities solutions are currently used around the world by more than 950 investor-
owned and public utilities in electricity, gas and water. The companies listed here
represent just some of the customers of SAP for Utilities, many of whom have achieved
significant benefits. We would like to share with you what some of these customers have
to say:

43
CUSTOMERS USING SAP FOR UTILITIES

“The main advantage is that thanks to total integration with SAP for
Utilities and its energy data management capabilities, we were able to
improve customer information and billing processes considerably and
perform our sales activities much more efficiently.”
- Dr. Stefan L. Grill, Project Lead, Energie AG

© SAP AG 2005, Channel Partner Sales Training 44

Dr. Stefan L. Grill, Project Lead for Energie AG says “The main advantage is that thanks
to total integration with SAP for Utilities and its energy data management capabilities, we
were able to improve customer information and billing processes considerably and
perform our sales activities much more efficiently.”

44
CUSTOMERS USING SAP FOR UTILITIES

“Thanks to efficient communication through SAP solutions for mobile


business, we anticipate that our employees will gain 30 minutes a day
in productivity. If you multiply this by 1,500 service employees, the
return on investment is impressive.”
- Conny Frankenberg, IT Project Executive,
Vattenfall Service Company

© SAP AG 2005, Channel Partner Sales Training 45

And from Conny Frankenberg, IT Project Executive of Vattenfall Service Company:


"Thanks to efficient communication through SAP solutions for mobile business, we
anticipate that our employees will gain 30 minutes a day in productivity. If you multiply
this by 1,500 service employees, the return on investment is impressive.”

45
CUSTOMERS USING SAP FOR UTILITIES

“SAP for Utilities helps us meet our overall strategy to support growth
and implement business process efficiencies to continue to deliver
value to our customers. SAP delivers a high degree of flexibility and
adaptability to support the needs of all customer groups—residential,
commercial and industrial.”
- Hughes Beaudoin, IT Director, Gaz Métropolitain

© SAP AG 2005, Channel Partner Sales Training 46

According to Hughes Beaudoin, IT director of Gaz Métropolitain:


“SAP for Utilities helps us meet our overall strategy to support growth and implement
business process efficiencies to continue to deliver value to our customers. SAP delivers
a high degree of flexibility and adaptability to support the needs of all customer groups—
residential, commercial and industrial.”

46
CUSTOMERS USING SAP FOR UTILITIES

“SAP for Utilities offers companies great flexibility, increasing their


efficiency and their capability to explore new business opportunities.”
- J. Guimarães, Director of the ClienteMais Project,
Electricidade de Portugal, S.A.

© SAP AG 2005, Channel Partner Sales Training 47

From J. Guimarães, Director of the ClienteMais Project of Electricidade de Portugal:


“SAP for Utilities offers companies great flexibility, increasing their efficiency and their
capability to explore new business opportunities.”

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CUSTOMERS USING SAP FOR UTILITIES

“All tasks [Strategic Enterprise Management, activity-based costing,


and balanced scorecard] are linked in real time. Synchronous
information has upgraded employees’ operational capability. And the
system ensures business transparency throughout the entire asset
value chain.”
- Woo Bang Lee,
Head of the Enterprise ERP Office,
Korea Hydro & Nuclear Power Company
© SAP AG 2005, Channel Partner Sales Training 48

And from Woo Bang Lee, Head of the Enterprise ERP Office of the Korea Hydro &
Nuclear Power Company:
“All tasks [Strategic Enterprise Management, activity-based costing, and balanced
scorecard] are linked in real time. Synchronous information has upgraded employees’
operational capability. And the system ensures business transparency throughout the
entire asset value chain.”

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49
SUMMARY

„ SAP for Utilities is used by over 950 companies around the


world, helping utilities master business processes along the
entire value chain.
„ SAP for Utilities’ Solution Map shows the industry value
chain at the top, with interactive drill-down functionality.
„ SAP for Utilities enables utility companies to optimize core
business processes with functionality that includes:
z Increasing operational efficiencies
z Mitigating and managing risk
z Driving innovation throughout the value chain

© SAP AG 2005, Channel Partner Sales Training 50

SAP for Utilities is used by over 950 companies around the world, helping utilities master
business processes along the entire value chain.
SAP for Utilities’ Solution Map shows the industry value chain at the top, with interactive
drill-down functionality.
SAP for Utilities enables utility companies to optimize core business processes with
functionality that includes:
• Increasing operational efficiencies,
• Mitigating and managing risk, and
• Driving innovation throughout the value chain.

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LEARNING OBJECTIVES RECAP

You should now be able to:


„ Identify the challenges, business processes and
requirements of the utilities industry
„ Explain how the SAP for Utilities industry solution delivers
benefits for the utilities industry
„ Describe the SAP Utilities Solution Map and value chain

© SAP AG 2005, Channel Partner Sales Training 51

You should now be able to:


• Identify the challenges, business processes, and requirements of the utilities
industry,
• Explain how the SAP for Utilities industry solution delivers benefits for the utilities
industry, and
• Describe the SAP Utilities Solution Map and value chain.

If you feel you need to review any part of this lesson, use the navigation bar on the left-
hand side of the screen to jump to a particular section.

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© SAP AG 2005, Channel Partner Sales Training 52

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