Chapter 21 “The Cold War Era, Decolonization, and the Emergence of a New Europe”
Emergence and transformation of digital utilities in the “smart” era
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Transcript of Emergence and transformation of digital utilities in the “smart” era
Emergence and Transformation of Digital Utilities in the “Smart” Era Jonathan D Loretto, Michel van Zutphen
Oracle Open World 2013
2 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Agenda
The Emergence of the Digital Utility
Reinventing the Digital Customer Experience
Illustrative CX examples
Oracle CX
Conclusion
3 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Digital transformation of global corporations is driven by
outside-in changes
where innovation appears faster at the far reaches of the organisation
digital, cloud-based services provide new opportunities for
agile global platforms through centralised management
digital transformation offers a different paradigm for
global IT organisations and new prospects to be grasped
4 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
The digital generation is setting expectations on global corporations and driving demand for digital transformation
The digital consumer
drives outside-in
transformation
Agile digital
platforms exploit
federated services
The realisation of
benefits needs to be
weeks not years
5 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
The digital consumer drives a need to transform outside-in versus inside-out, to drive speed-to-benefit and to reduce costs
Customer Focus Consistent customer experience
Multiple channels and devices
Immediate 360 view of customers
Agile response to new demands
Proactive creation of new offers
Corporate Focus Re-use system investments
Align old and new worlds
Consistent processes and data
Central governance & security
Cost efficient operation
Inside-Out for stability
and integration
Outside-In for speed
and flexibility
Digital
Enterprise
6 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Technology-enabled initiatives in:
• Customer Experience
• Internal Operations
• Business models
• Core digital capabilities
Leadership capabilities including:
• Vision
• Governance
• Engagement
• IT-Business Relationships
• Change management
Digital leaders exhibit two common traits: Digital Intensity and Transformation Management Intensity
Digital Intensity Transformation Management
Intensity
7 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
This is not for us!
Beginners
Building the Digital Advantage…. D
igit
al in
ten
sit
y
Transformation management intensity
8 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
digital
This is not for us!
digital digital
digital
digital
digital
Beginners
Fashionistas
Building the Digital Advantage…. D
igit
al in
ten
sit
y
Transformation management intensity
9 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
digital
This is not for us!
digital digital
digital
digital
digital
Analogue Transformation
Beginners
Fashionistas
Conservatives
Building the Digital Advantage…. D
igit
al in
ten
sit
y
Transformation management intensity
10 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
digital
This is not for us!
digital digital
digital
digital
digital
Analogue Transformation
Digirati!
GROWTH + 9 %
PROFIT + 26 %
MARKET VALUE + 12 %
Beginners
Fashionistas
Conservatives
Building the Digital Advantage…. D
igit
al in
ten
sit
y
Transformation management intensity
11 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Every Industry has Digital Leaders
“Utilities are in
great majority
conservatives"
“There is a great
consensus around
the transformative
potential of Digital
Technologies,
although with
limited hope for
significantly
increasing
revenue"
12 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Digital Utilities Transformation: Driving value from the smart energy infrastructure
SMART RENEWABLE SMART CONSUMER SMART GRID SMART METERING
ELECTRIC
VEHICLES
PHOTO
VOLTAIC SMART
DEVICES HOME ENERGY
MANAGEMENT
DIGITAL
ASSETS
SMART
METERS
BUSINESS AS USUAL DIGITAL ENABLED BUSINESS DIGITAL UTILITIES TRANSFORMATION
CLOUD MOBILITY BPMS BIG DATA
Technology Advancement & Consumer pull
Energy transition
Service Improvement & Cost Saving Pressure
13 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Agenda
The Emergence of the Digital Utility
Reinventing the Digital Customer Experience
Illustrative CX examples
Oracle CX
Conclusion
14 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
With the developments such as smart meters, utility customer‟s needs and expectations are higher than ever
Improve Customer Relationship
Better understanding of customers
Billing on actual usage
Better responsiveness for the interventions
Improvement of existing services
Diversification of offerings and services
Tariffed offering differentiated according to fixed or variable periods
Be informed when the tariff is higher
Be able to act to generate savings (even thinking about it)
Compensation in case of load shedding without a control system
Optimization & Financial gains
Decrease in the volume of claims
Optimization of certain processes
Reduction in the billing cycle
Decrease in the fraud
Reduction in the average cost of supply
Smart environment raise the customer expectations with a right balance between comfort and energy savings
While People are taking control of their energy consumption and automating their home, Energy suppliers interacting with their customers in new ways Help them understand how they consume energy
Help them reduce bills, while retaining their desired level of comfort
Provide new services, such as micro-generation, storage and electric vehicle battery management
Receive the request for load shedding by SMS or any other digital channels.
Access to a web portal allowing a view of the load curve and a summary of load shedding
15 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
These changes have led to key business and information challenges faced by Utilities
Business Challenges
High cost to serve: phone channel still dominant; high call volumes & low FTR
Lack of Insights: poor data quality & analytics relative to other industries means opportunities are lost
SMART: large & complex requirements that requires focus & investment
Social media: accelerates the impact & frequency of negative customer experiences by going viral
Low NPS: Customers compare Utility experience against banking, TV, mobile & broadband – not other Utilities
Price: Managing customers‟ expectations around the increasing price of electricity
Low Engagement: Customers have been indifferent & disengaged for Utility
Sophisticated buyers: increasingly demanding consumers want more for less
Customers are forcing change and it aggravates Utilities‟ existing challenges and introduces new challenges
Information Challenges
Limited Context
– Situation: Information is too generic for action
– Problem: Not made available in context
– Impact: Decline in resolution of issues
Information is required in Real-time
– Situation: Information is too late for action
– Problem: No method to process events
– Impact: Limited operational responsiveness
Actionable Information
– Situation: Information has no guidance
– Problem: No insight for next steps
– Impact: Increased cost to business
Consumer behaviour is undergoing on a major shift due to the digital revolution
16 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
The new norm of Customer Experience in Utilities
“Utilities have analyzed data for many years, with spreadsheets and custom tools; mere fraction of data generated by smart meters and IEDs have transformed the behavior of
customer , which now requires new ways / transformation in analyzing Customer behaviors to provide insights which is delivered using DUT”
Multiple Channel Communications
Customer Segmentation and
Empowerment
Customized Product & Service
for everyone
Smart Meter data Analytics
Changing Perception- From
Ratepayers to Valued Customers
@
How can I provide
right service to
right customer
through right
channel?
Does he belong to
high temperature
geography and
might buy rooftop
Solar PV?
Kevin‟s job, work-
timings and
preferences very
different from his
neighbors
Smart meter, IHD
generate huge &
variety of data; how
can I have
actionable insights?
How to win the
trust of my
customers & make
them feel special?
17 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Digital transformation offers a different paradigm for global IT organisations and new prospects to be grasped
Technology Architecture
• Connects omniChannel
to existing back office
investments
• Agile framework e.g. Plug
& Play, PAYG services,
in line with business need
Operating Model
• Spans governance,
ownership,
accountability,
organisation structure,
new ways of working
• Best of breed vendors
managed in an integrated
service framework
• Managed service
delivered to agreed SLAs
Commercial Model
• Utility pricing aligned to
business outcomes
• Pay as you go to reduce
upfront investment
Digital
Enterprise
Technology
Architecture
Commercial
Model
Operating
Model
18 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
...and is already adopted by Capgemini; Immediate™ Framework.
Indu
stria
lisat
ion
Cos
t red
uctio
n
Spe
ed
Val
ue
Systems of Records
Systems of Dif ferentiation
Systems of Innovation
Overall object ive
Agile interaction layer
Robust application layer
Pace-layering distinguishes the robust application layer and the agile interaction.
Spee
d
Val
ue
Ind
ust
rial
isat
ion
C
ost
red
uct
ion
19 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Agenda
The Emergence of the Digital Utility
Reinventing the Digital Customer Experience
Illustrative CX examples
• Lean energy retailer
• Energy efficiency
• Self-sufficient energy community
Oracle CX
Conclusion
20 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Lean energy retailer in a competitive market Business context
Business issues • Competition and more in particular
new entrants, fuel a pressure on retail prices
• Cost-to-Serve and cost-to-acquire levels need to be lower to preserve a healthy margin
• Differentiating offerings and good customer service are required to win, grow and keep customers
Revenues Total Operational
CostsOPEX
Energy Cost(including costs and charges)
Gross Margin
Operational Cost to Serve
General Marketing Costs
Distribution Costs
CtA general
CtS general
Net Margin*
Full Cost to Acquire (CtA)
Full Marketing Costs
Full Cost to Serve (CtS)
Operational Cost to Acquire
Operational Marketing Cost
Transformation program • Transform to a customer-focused energy retailer first focusing on optimizing the operational model:
Standard products and services
Lean & mean processes
Aggressive financial steering & control
Agile IT platform.
And then get, keep and grow profitable customers
21 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Lean energy retailer in a competitive market Business transformation via layered IT-platform
Layered IT Platform
Multiple Layers
Presentation – Process –
Integration – Transaction –
Data
Service Oriented
Architecture
Application functionality
shared via services
Combining build to
change, build to last
Web based portals. BPM for
flexible processes. ERP
systems in Back-end
1
CRM
Campaign management
Sales
Contracts
Employee Portal
Othersystem
Datahub Other apps
Orchestration layer
Web Portal
Self Service Portal
Datawarehouse
BAM
Reporting (tac & strat)
Marketing intelligence
AVAYACTI
IVR
Output managementdocument formatting & routing
ECM @Mail E-mail Web
Other interfaces
Banking
General ledger
Social services
SMS
Central registers
Billing
Billing
Credit & Collections mgt
Consumption
Data Quality
Mkt. Fulfillment
Meetdata bedrijf
UWL Top 10transactions
Integration layer webservicewebservicewebservicewebservicewebservicewebservice
22 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Energy Efficiency for San Diego Gas & Electric - Business context
Objective and scope • Provide customers with new insights,
convenience and practical support for being more energy conscious
• Give SDGE a new channel for interaction with customers through marketing offers, goals and actions – and links with the customer portal, outage management and social media
• Future extension for Demand Response, Home Automation, Electric Vehicle Management etc.
Home Energy Management is no longer an adjunct to “Smart”, it is a key part of Digital strategy
23 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Energy Efficiency for San Diego Gas & Electric - Solution
• Goals and actions
• Tips and hints
• Compare vs weather
• Compare vs previous periods
• Customer offers
• „Ecoscore‟
Android
App
iOS App
Data Services
Transform Layer
Applications API
Access
Co
ntr
ol
Visualization
Layer
Gateway Stack Access C
on
tro
l
Browsers
72
Premises Devices
Cloud Services
Gateway
Normalized Data
Warehouse
Enterprise & 3rd
Party Systems
Apps
The SDGE PowerTools app has energy consumption as its core information
But the app also provides the opportunity for interaction with the customer...
• YouTube videos
• Twitter feed
• Outage map
• Link to customer portal (e.g. for mobile bill payment)
24 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Texel: self-sufficient energy community Context
The island of Texel wishes to supply its energy needs entirely from local renewable sources in 2020
Dutch island in the North sea
165 km2 & 6,000 households.
Industries: Recreation, Fishery, Agriculture
Energy needs (year) Elektricity : 80 tWh, Gas 22 mio m3
Road map to a sustainability Texel 2020
Community Energy Management: Cloud Power
Urban solar (PV) projects
Solar-farms
Biogas digesters
Biogas fired CHP (electricity and heating)
And in the orientation phase:
Wind turbines
Deep geothermal energy
Tidal
TexelEnergie, a local Energy community
Fulfils the community energy needs
Sells, produces and buys renewable energy;
Encourage and assist its members in the reduction of their energy consumption;
Encourage and assist its members in the implementation of domestic power generation - like PV-panels -;
Contribute to the local economy on the Island of Texel.
25 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Control
signals
Texel: self-sufficient energy community Solution
Individual participants Community Grid company
Collective generation
Local
generation
Metering
Home Energy
Management Electricity, gas,
heating, cold, water
Central Energy
Management
Interval readings
Interval
readings
Interval readings
Interval readings
Energy advices
One-hour-ahead price-signals
(Real-time signals)
One-day-ahead price-signals
Smart Appliances /
Equipment
Household profiles
Control
signals
• Control appliances, smart plugs and lighting • Inform occupant on the hourly prices (TOU) • Home energy management (Home as a microgrid) • Analyses of volumes
consumption, production, exchanged energy with the community (grid) smart appliances, equipment and smart plugs
• Budgetary control and analyses
Smart Home • Forecasting • Balancing & Scheduling • Execution & monitoring Energy program • Deliver volumes and prices to Billing • Analyses and generate energy advices
Virtual Smart Grid Smart Metering
26 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Agenda
The Emergence of the Digital Utility
Reinventing the Digital Customer Experience
Illustrative CX examples
Oracle CX
Conclusion
27 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Capgemini‟s H-architecture for Customer Experience
Multi channel Experience
Insight & Analytics
Personalized environment Social Media integration
CRM – Mark. &
ServiceAutom. DecisioningeCommerce
Se
cu
rity
Integration and Orchestration
Meter Data CC&B EMS
HEMS
ESR Service
Delivery
NMS
Go
ve
rna
nce
28 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
The Oracle solution stack against H-model
Multi channel Experience
Insight & Analytics
Personalized environment Social Media integration
CRM – Mark. &
ServiceAutom. DecisioningeCommerce
Se
cu
rity
Integration and Orchestration
Meter Data CC&B EMS
HEMS
ESR Service
Delivery
NMS
Go
ve
rna
nce
ACCESS MANAGEMENT
REAL TIME DECISIONING
CC&B MDM NMS
WAM
Siebel
BPM BAM
MWM
29 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Capgemini‟s Customer journeys in Oracle
• Social Media monitoring and Churn Management
• Focus on new digital channels (social media listening and response)
• Shift focus from selling commodity electricity and gas towards energy saving advice and
additional services
• Retention offers based on the retention budget/customer values
• Cross and Upsell additional services and products to existing clients
• Inform and update customers about all products and services and is able to sell them
• Enhancing the customer service experience
• Feature-rich web portal for customer service representatives
• Tailored offers and services
• Provide Energy Management advice
• Real time decision enablement
• Sign up for energy alerts services
30 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Agenda
The Emergence of the Digital Utility
Reinventing the Digital Customer Experience
Illustrative CX examples
Oracle CX
Conclusion
31 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
The Key Messages
Your customer’s expectations are changing
Think digital when designing your customer journeys
Digital is not just about customer experience
The Digirati apply an integrated approach to digital
Carefully consider your operating model before
embarking
New techniques may be required [that are counter
cultural]
Measure, measure, measure
32 Copyright © Capgemini 2013. All Rights Reserved
Emergence and Transformation of Digital Utilities in the “Smart” Era | Sept. 2013
Contact Information
Michel van Zutphen Vice President and Global Technology Lead,
Digital Utilities Transformation, Capgemini
Jonathan D Loretto Chief Digital Evangelist
Digital Services North America
www.capgemini.com
The information contained in this presentation is proprietary.
Copyright © 2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues
of EUR 10.3 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.