November 2006

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The 3The 3rdrd annual Metering, billing annual Metering, billing

and CRM/CIS Middle Eastand CRM/CIS Middle EastSharmSharm El Sheikh, 2006El Sheikh, 2006

Building the IT systems architecture for a comprehensive electricity company: A Blueprint

by

Adel Ibrahim, Director, Information Technology Company (ITC), Saudi Arabia

November 2006

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TABLE OF CONTENTS

1 - INTRODUCTION

2 - UTILITY & TECHNOLOGY DRIVERS

3 - BLUEPRINT

4 - QUICK-TRACK4.1 FAS4.2 OIS4.2 BUSINESS INTELLIGENCE

5 – APPROACH – THE SISP

6 – Q & A

November 2006

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In a report of the American Public Power Association concerning the 21st Century offers 10 recommendations for approaching policy directions

1 – Provide Superior customer service

2 – Deliver value through power supply management

3 – Focus on distribution performance and opportunity

4 – Keep the “Public” in public power

5 – Optimize Community Infrastructure

6 – Lead in environmental stewardship

7 – Build consensus through Democratic governance

8 – Promote Human Resource excellence

9 – Engage policy makers through legislative advocacy

10 – Invest in your technology future

November 2006

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UTILITIES INDUSTRY OVERVIEWTypical Revenue Sources

Residential 35%Commercial 28%

Industrial 34% Other 3%

• The residential sector includes private households and apartmentbuildings customers

• Commercial customers include office buildings, retail outlets, hotels and small manufacturers

• The industrial sector includes: manufacturing, construction, mining, agriculture, fishing, and forestry establishments

• The other sector includes: public street and highway lighting, railroads and railways, municipalities, divisions or agencies of Regional and central Governments

Source: Electric Power Annual 1995, Energy Information Administration, 7/96

November 2006

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& The Middle EastThe Middle East region has a relatively small population

and is not a major energy consumer but rather an exporter; however, rapid population growth is expected to result in more energy use for transportation in the future. The region’s energy demand for transportation grows from 4.2 quadrillion Btu in 2003 to 5.2 quadrillion Btu in 2015 and 6.2 quadrillion Btu in 2030. Demand for transportation fuels in traditional exporting countries such as Saudi Arabia, Kuwait, Iraq, Oman, the United Arab Emirates, Yemen, and, most notably, Iran made the region a net importer of gasoline in 2003; however, that trend is expected to be reversed by 2010, when planned additions to refinery capacity come on line.

Report #:DOE/EIA-0484(2006)Release Date: June 2006Next Release Date: June 2007

November 2006

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THE ELECTRIC UTILITIES DRIVERS (1)

1. LOAD ANALYSIS, FORECASTING, DEMAND & FULFILMENT

Flexible and responsive generation expansion planning

2. FIXED PLANT RECORDS & OPERATING SYSTEMS

Minimize long term risk and unnecessary capital expenditure

3. CUSTOMER INFORMATION SYSTEMS RELATED TO METER READINGS & BILLING

Good customer serviceReliable energy service

4. SOPHISTICATED FUEL MANAGEMENT SYSTEMS

Control fuel while maintaining adequate supplies of energy

November 2006

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THE ELECTRIC UTILITIES DRIVERS (2)

5. NETWORK MANAGEMENT & EXPANSION

Continued maintenance and upgrading of plants and networks

6. PROFITABILITY ANALYSIS & COST OF SERVICE SYSTEMS

Innovative rate structuring

7. COMMUNITY AWARENESS

Comply with regulatory & environmental agencies

8. GOING CONCERN

Effective cash management and securing immediate and/or long-term financing

November 2006

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THE TECHNOLOGY DRIVERS

Currently there are five areas that appear in the landscape of the IT Industry

“The Web changes everything”e.commerce – Internet/Intranet/Extranet –e.”anything”

Processing Architecture evolutionclient/server, thin client, rightsizing

Improved Developer Productivity

Reductions in storage cost

Knowledge Management

November 2006

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••••

••••

••••

DOCUMENT MANAGEMENTWORKFLOWOFFICE PRODUCTIVITYGROUPWARE

REPORTINGOFFICE PRODUCTIVITY

LEGACYOLTPOPERATIONAL DATA STORE

TECHNOLOGY

WEB SERVICES(BROWSERS/PORTALS)

SERVICE ORIENTED ARCHITECTURE - SOA

DATE WAREHOUSEDECISION SUPPORT APPLICATION

TRANSACTIONAL WEB SERVICESSERLETS/APPLETSSECURITY

NEW “VIRTUAL”CORPORATION

DOMAIN

THE NEED FOR SYSTEMS & TECHNOLOGY IMPACT

POLICIES & PROCEDURESPRODUCTSTRAININGSTANDARD FORMS

INFORMATIONAL

MANAGEMENT DECISIONSPLANNING & TRENDSSTATISTICSWHAT-IF, MODELS, TRENDS

DECISIONAL

DEFINITIONSERRORS CORRECTIONOPERATIONS MONITORINGOPTIMIZE BUSINESS PROCESSES

OPERATIONAL

BUSINESSNEED

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ENTERPRISE MAP

Corporate/Back OfficeCorporate/Back Office

GenerationGeneration TransmissionTransmission DistributionDistribution RetailRetail Energy Energy TradingTrading

SOA BackboneSOA Backbone

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THE ELECTRIC UTILITY BLUEPRINT

PRODUCT CENTRIC

PRODUCT CENTRIC

CUSTOMER CENTRIC

CUSTOMER CENTRIC

EXECUTIVECENTRIC

EXECUTIVECENTRIC

ORGANIZATIONCENTRIC

ORGANIZATIONCENTRIC

AUDIT/REPORTBUS. INTELLIGENCE.

ELECTRIC DISTRIBUTION ELECTRIC OPERATIONSPLANT & FACILITIES

CUSTOMER SERVICESMETERING & BILLING

FINANCEHUMAN RESOUCESENGINEERINGOTHER

MATERIALS MANAGEMENTMAINTENANCE MANAGEMENTCONSTRUCTION PROJECTS

ACCOUNTINGMISPROCUREMENT

GIS

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[1. PRODUCT CENTRIC]

ELECTRIC OPERATIONS Load Management & ForecastingFuel ManagementFossil Power GenerationPlant OperationOutage Planning & SchedulingUsage ForecastingSystem Reliability, Security & SafetyEnvironmental Regulatory ComplianceElectric Systems PlanningQuality AssurancePeak Load Management

System and Transmission OperationsNetwork Management & ExpansionField ServiceDispatch

ELECTRIC TRANSMISSION& DISTRIBUTION

Plant Design, Construction, Acquisition & LeasingTesting (Equipment)Facilities PlanningPhysical Plant Security

PLANT & FACILITIES

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[2. CUSTOMER CENTRIC]

Complaints & InquiriesCustomer Relations & MarketingNetwork ExpansionField Operations ManagementRate DesignTariffs & AgreementsRate Application Management

CUSTOMER SERVICE

Customer accountingMeter readingCredit and collectionCustomer billing

METERING & BILLING

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[3. ORGANIZATION CENTRIC]

FINANCIAL PLANNING & CONTROL Financial PlanningCash ManagementCapital BudgetingCorporate FinanceGeneral BudgetingProfitability AnalysisCost ControlPerformance AnalysisTax Compliance

ACCOUNTING General AccountingCost AccountingInternal AuditProperty Record AccountingStores AccountingFixed Assets AccountingFinancial ReportingRegulatory Reporting

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[3. ORGANIZATION CENTRIC]

HUMAN RESOURCES Personnel Strategy & PlanningTraining & Staff DevelopmentCompensation PlanningPension ManagementRecruitingSalary and Benefits AdministrationGeneral Personnel AdministrationSafety Compliance & Certification

Materials & Services PurchasingClaims HandlingContract Administration and InspectionVendor Maintenance

PROCUREMENT

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[3. ORGANIZATION CENTRIC]

OTHER Insurance & ClaimsLegalDocument ManagementEngineering & ComputingOffice AdministrationReal EstatePhysical SecurityElectronic Communication ServicesFleet ManagementPublic Relations

ENGINEERING Civil EngineeringElectrical EngineeringMechanical EngineeringIndustrial EngineeringDesignR & D

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[4. EXECUTIVE CENTRIC]

EXECUTIVE MANAGEMENT Corporate PlanningDisaster RecoveryInter-utility Affairs

KPI’sAlerts & ExceptionsImprove quality of service

AUDITING & REPORTING

BUSINESS INTELLIGENCE Understand business trendsUnderstand customer behaviourData Warehousing/Data mining

November 2006

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BUSINESS FUNCTIONS & PROCESSES SYSTEMS[SPANNING MULTIPLE AREAS]

MATERIALS MANAGEMENT Stores Management (Receipt, Storage & Control, Distribution, Salvage)

MAINTENANCE MANAGEMENT Plant MaintenanceFacilities Maintenance

Cities LayoutFacilities LayersTransmission Lines Geography

GEOGRAPHICAL INFORMATION SYSTEMS

CONSTRUCTION PROJECTSBuilding ConstructionPlant ConstructionElectrical TransmissionConstruction Work Order Management

November 2006

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QUICK-TRACK IMPLEMENTATION OF THE BLUEPRINT

(FAS)(FAS)(OIS)(OIS)

November 2006

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EXECUTIVE INFORMATION

SYSTEMS(EIS)

EXECUTIVE INFORMATION

SYSTEMS(EIS)

PROCUREMENTPROCUREMENT

ACCOUNTING(BUDGETS)

ACCOUNTING(BUDGETS)

HUMANRESOURCES

HUMANRESOURCES

PROJECTSPROJECTS

SERVICESERVICE

------------------------

COLLECTIONCOLLECTION

CUSTOMER SERVICE & BILLING

CUSTOMER SERVICE & BILLINGSERVICE

W/O & PROJECTSSERVICE

W/O & PROJECTS

DISTRIBUTION&

FAULT

DISTRIBUTION&

FAULT

GENERATIONGENERATION

MATERIALSMANAGEMENT

MATERIALSMANAGEMENT

November 2006

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DATA WAREHOUSING/DATA MINING

Definitions (among others):

(1) Data Warehouses are built in the interest of business decision support & contains historical data summarized and consolidated from detailed individual records from a number of operational databases.

(2) Data mining is a knowledge discovery process of extracting previously unknown actionable information from very large databases.

Aaron Zornes, The META Group

November 2006

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DATA-TO-INFORMATION PROCESS

November 2006

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EXAMPLE OF A Quick-track

Customer OrderManagement

WorkManagement

Design andMapping

PlantMaintenance

InitiateWork

Resources,Rates

Estimate,Schedule

ActualAmounts

Status,As-Built

OperationsCost Control

OperationsRevenue & Billing

Operations Data Repository(Projects Management)

Activity Management Gateway

FinancialManagement

EnterpriseDecision Support

General Ledger Apps Data Whse

Transaction Import

Time Material Equipment Contractor Statistics

Transaction Processing SystemsHuman Resource

SystemsSupply Chain

SystemsAccounting

SystemsOperations

Systems

November 2006

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The Strategic information System Plan

Project Management

SISPReport

Package Acquisition

Application Threads

Application Development

Current System Porting

Deployment threads can be complete sub projects or components of a project.

They are defined in the Preliminary Study Report

The most appropriate methodology is chosen for each deployment thread

Decision toproceed

SISPAnalysis

Applications portfolio

Technical Infrastructure

Manpower Required

Transition Plan

November 2006

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The Next Step

Interviews

Regulatory/Statutory

RequirementsIT Trends

StrategicBusiness Plan

(EDL)

ExistingSystems

(EDL) Industry BestPractices/Standards

PoliticalEnvironment/

Culture

PreliminaryStudy -Report

Preliminary Study -Analysis

November 2006

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THANK YOUTHANK YOUTHANK YOUAdel Ibrahim: agerges@case-sa.com

C A S E

An ITC company