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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.
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TABLE OF CONTENTS
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.
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LEARNING OBJECTIVES
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PREREQUISITES
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."
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KEY VOCABULARY
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INDUSTRY SOLUTIONS – UTILITIES OVERVIEW
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
Designed for Industry — Scaled for Business — Ready for the Future
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
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.”
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UTILITIES INDUSTRY – A TIME OF CHALLENGE
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 for Utilities provides a number of
tools to help optimize these processes.
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SAP FOR UTILITIES – SOLUTION MAP
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
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.
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SAP SOLUTION MAP – UTILITIES
Suppliers & Generation Transmission & Meter Operation Retail & Services Customers &
Partners Distribution Channels
Supply Operations
Meter Reading Services
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.
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SAP SOLUTION MAP – UTILITIES
Suppliers & Generation Transmission & Meter Operation Retail & Services Customers &
Partners Distribution Channels
Project
The plant engineering
Execution and construction
scenario supports
engineering processes
Project and facilitates
Planning and
Scoping
construction project
management tasks.
Document
Management
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.
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SAP FOR UTILITIES – BUSINESS PROCESSES
We will now move on to discuss the common business processes within the SAP for
Utilities industry solution.
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SAP FOR UTILITIES – BUSINESS PROCESSES
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
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
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.
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SAP FOR UTILITIES – BUSINESS PROCESSES
Generation utilities
Transmission and distribution utilities
Retail and services utilities
Water utilities
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.
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SAP FOR UTILITIES – BUSINESS PROCESSES
Generation utilities
Transmission and distribution utilities
Retail and services utilities
Water utilities
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.
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SAP FOR UTILITIES – BUSINESS BENEFITS
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 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.
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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 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.
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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 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.
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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 solutions enable efficient data exchange with suppliers, contractors, regulators and
market participants for more efficient collaborative services.
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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
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.
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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
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.
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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 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.
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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 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.
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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 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.
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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
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.
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SAP FOR UTILITIES – MEETING
INDUSTRY REQUIREMENTS
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:
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MEETING INDUSTRY REQUIREMENTS
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MEETING INDUSTRY REQUIREMENTS
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.
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MEETING INDUSTRY REQUIREMENTS
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.
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MEETING INDUSTRY REQUIREMENTS
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.
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MEETING INDUSTRY REQUIREMENTS
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.
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MEETING INDUSTRY REQUIREMENTS
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.
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MEETING INDUSTRY REQUIREMENTS
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.
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SAP FOR UTILITIES – CUSTOMERS
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.
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SAMPLE OF CUSTOMERS USING
SAP FOR UTILITIES
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:
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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
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.”
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CUSTOMERS USING SAP FOR UTILITIES
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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
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CUSTOMERS USING SAP FOR UTILITIES
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CUSTOMERS USING SAP FOR UTILITIES
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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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:
• Increasing operational efficiencies,
• Mitigating and managing risk, and
• Driving innovation throughout the value chain.
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LEARNING OBJECTIVES RECAP
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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