Utilities Transformation: Improving the Time to Value of Technology

with you
Utilities Transformation:
Improving the Time to
Value of Technology
Perry Stoneman, Global Head of Sectors &
Utilities Global Sector Lead, Capgemini
Oracle OpenWorld | 29 September 2014

Copyright © 2014 Capgemini. All Rights Reserved 2
Agenda
What is Digital Transformation and why you should care
A case for transformation now
A time to act and how

2 Decades of Change
1980 – 2000 2000 – 2014

Digirati
! Strong overarching digital vision
! Good governance
! Many digital initiatives generating
business value in measurable ways
! Strong digital culture
Conservatives
! Overarching digital vision exists, but
may be underdeveloped
! Few advanced digital features, but
traditional capabilities may be
! Strong governance across silos
! Taking active steps to build digital
skills and culture
Four Levels of Digital Maturity
Fashionistas
! Many advanced digital features
(such as social, mobile) in silos
! No overarching vision
! Underdeveloped coordination
! Digital culture may exist in silos
Beginners
! Management skeptical of the
business value of advanced
digital technologies
! May be carrying out some
experiments
! Immature digital culture
Transformation management intensity
Digital intensity

Digital maturity varies widely*
Beginners Fashionistas
Digirati Conservatives
* Digital maturity of 391 companies in our sample

Digitally-mature companies have significantly better financial performance
-12% +12%
-7% +7%
Cost Effectiveness Market Valuation
-11% +26%
-24% +9%
Basket of indicators:
! Tobin’s Q Ratio
! Price / Book Ratio

Some industries are more mature than others…
* Average maturity of industries for which we received at least 20 survey responses
High
Technology
Banking
Consumer
Packaged Goods Insurance
Manufacturing
Pharmaceuticals
Retail
Telecoms
Travel and
hospitality
Utilities
Average
Industry
Maturity*
Transformation management intensity
Digital intensity

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A case for transformation now

#1 New and deep-pocketed players are entering the industry
The Case to Transform Now
! Google, Amazon, Apple, Comcast and Wal-Mart are entering the industry and offering an array of
consumer products that integrate electricity, security, and networking.
“Google Acquires Smart Thermostat
Maker Nest for $3.2 Billion”
Forbes
“Samsung Buys Into Home Automation with
SmartThings Acquisition”
Time

#2 Technology advancements and better pricing for solar panels
! 50% of utility customers are considering solar power and estimates have solar panel installations
5 year CAGR of 600%.
! The prices of the panels have plunged 70 percent in the past five years.

#3 Builders are becoming disruptive
! Lennar the nation’s second-largest homebuilder has about 100 subdivisions in California where
new homes automatically get solar panels on the roof.
! Lennar recently decided to expand that program to more states starting with Colorado.

! Battery technology advancement and massive factories will dramatically reduce the cost to store
energy for the home.
! Tesla is building a Mega factory that will reduce the price on lithium ion batteries by 40%.
#4 Battery Technologies and Mega Factories
Nevada Selected As Official Site for
Tesla Battery Gigafactory
Thursday, September 4, 2014
Tesla

#5 Big Oil Wants In
! Rockefeller …
“Rockefellers dumping oil to
make statement.”
USA Today
“Rockefeller family sells
out of fossil fuels and into
clean energy.”
BBC News US & Canada
NY Times
“Rockefeller Trust Will Divest Itself
of Oil Investments.”
NBC News “Rockefeller Fund Built on Oil to Abandon Fossil Fuels.”
Bloomberg
“Philanthropies, Including Rockefellers,
and Investors Pledge $50 Billion Fossil
Fuel Divestment.”
Business Insider
“Rockefeller family to sell oil
investments to reinvest in renewables.”
ABC News Australia

! Customer analytics
! Consumer - Prosumer
#6 We are in a customer driven world
! Customers will become disruptive. Customers want more.
Unaware
Passive Interest
! Green energy
! Renewables sources
! Energy labels
! Energy efficiency
Aware
! Low energy lighting
! Efficient heating
! Insulation
! Supplier comparison
! Self service
Interactive involved
! Local generation
! New pricing models
! Demand response programs
Active involved
! Energy conversation
programs
! Smart meters
! Energy management tools
Consumer
driven market
Community involvement
! United consumers Communities
! Demand shift
! Consumer storage
! Advance energy management
Utility driven
market

Oracle Best Practices & EnergyDirect – What we bring
Recommendations
1. Engage with your customers
2. Recognize analytics can deliver
many benefits
3. Optimize the distribution grid and
integrate renewable energy and
storage
4. Consider tapping into other funding
to develop micro grids
Now is a Time to Act!
Utility Industry Disruptions
1. New and deep-pocketed players are
entering the industry
2. Technology advancements and
better pricing for solar panels
3. Builders are becoming disruptive
4. Battery Technologies and Mega
Factories
5. Big Oil Wants In
6. We are in a customer driven world

acwceilethra tyinog u
A time to act

How to Move Fast and Deliver Value
Too much focus on requirements creates an artificial boundary between the Business and IT sides of an organization. It’s a
bridge, but one that is often difficult to cross. Instead, IT should be providing a flexible, scalable preconfigured solution that
integrates industry best practices into a preconfigured package.
At Capgemini we call our new accelerated suite
of preconfigured utility Oracle solutions
EnergyDirect.

Capgemini & Oracle
Capgemini EnergyDirect consists of three primary elements…
! A detailed step-by-step implementation procedure, including automated activities
! Extensive, reusable documentation that you can use for self-study, evaluation, and training of the project team and
end users
! Preconfigured settings that you need to run key functionality (not all functionality) specific to Utility. The configuration
is documented and includes support for business processes, training material, user roles, data conversion tools,
and test catalogs.

Client Specific
Oracle Best Practices & EnergyDirect – Stacking it up
Client Specific
Oracle Best Practices
Core Oracle Functionality
EnergyDirect
Oracle Best Practices
Core Oracle Functionality
Based on experience using similar solutions EnergyDirect implementations
could provide up to 30% productivity gain compared with Standard
software implementations
30% FASTER + 30% CHEAPER

• Utility End-to-End Solution
• Industrial Project Management
• Integration Test Scripts
• Training Artifacts
• Technical Command Center
• Immediate Architecture
Oracle Best Practices & EnergyDirect – What we bring
• Industry Best Solution Portfolio
• Business Process Master List
• Process Flows
• Design Documents
• Internal controls
• Unit Test Cases

ODM
LA
Cust Engagement
CSS
SFA, Prog Mgmt
CRM
RightNow
SGG
OEM
Sustainability
EAR
SSDM
GRC
Oracle Utilities Application Footprint for EnergyConnect
Energy Supply Network
Management Asset Management Energy Delivery Customer Service Operations
Planning/Settlement
LPSS
Contracts
CCB
CRM
Supply Chain
BI and Analytics
Shared Services
Core Tech Stack
Maintenance Network Assets Metering Rating and Billing SMOC
Primavera
Manage network WAM
WAM
MWM
NMS
DGM
WAM
ERP
Primavera
Hyperion
EBS AM
CCB
BC
MDM
SGG
ODM
MWM
ERP
MWM
OBIEE Hyperion OBIU OUDM Endeca Big Data
ERP (JDE, EBS) Hyperion Supply Chain
HW Cloud SOA/BPM Security OEM
ERP
General
UGBU Foundation Integration (AIA, PIP) Operational Reporting (OBIU) OUAF
Data Raker
Non-UGBU UGBU
GRC HCM

Go see Capgemini CX demo for a sample of our Ready2Run series
Ajay
Verma
Victor
Jimenez

www.capgemini.com
The information contained in this presentation is proprietary.
Copyright © 2014 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
About Capgemini
With almost 140,000 people in over 40 countries, Capgemini is one of the world's
foremost providers of consulting, technology and outsourcing services. The Group
reported 2013 global revenues of EUR 10.1 billion.
Together with its clients, Capgemini creates and delivers business and technology
solutions that fit their needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working,
the Collaborative Business Experience™, and draws on Rightshore®, its worldwide
delivery model.
Learn more about us at www.capgemini.com.

Utilities Transformation: Improving the Time to Value of Technology

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