Enablement of Analytics and Cloud – Blueprint for Future Utilities_distributech v1

8/11/2019 Enablement of Analytics and Cloud Blueprint for Future Utilities_distributech v1

1/23

Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation

Blueprint for future utilities -Enablement of Analytics & Cloud computing

Authors: Jayaprakash Ponraj, Paul Yin, IBM Global E&U CoC

Ajit Tawde, IBM, Global E&U GD


2/23


Introduction

What are utility industry challenges and trends?How technology could make an impact?What are the benefits utility should target?Analytics for utilities our point of viewCloud for utilities our point of viewKey considerations on smart grid solution architectureKey considerations on implementation plan & requirements

What are next steps?

Agenda

2


3/23


Introduction

Challenges for managing electrical utilities

Discuss how the emerging technologies like analytics and cloudcomputing will impact the way utilities would operate and service thecustomer in future

Exploit convergence of technologies to bring benefit of operating costsreduction, improved customer satisfaction and earn goodwill fromregulators

Discuss key solutions architecture and implementation considerationsincluding information security

3


4/23


Challenges & market forces shaping the utilities landscape

IMPLICATIONSThe traditional utility businessmodel is upended; new businessmodels and alliances will berequired to sustain revenuegrowth

ConsumersConsumers want the same highlevel of service from energyproviders as from otherconsumer-oriented companies

Threats to RevenueEnergy efficiency, slowereconomic growth, and newentrants negatively affecthistorical patterns of demand

InformationUtilities now have to manage ahuge volume, veracity, velocityand variety of data from bothexternal and internal sources

Data and analytics move from aback-office competency to acritical profit enabler, requiringinnovation in the front office

Innovate, partner, or diebecomes an unspoken mandateas new entrants reach outdirectly to consumers andbypass energy providers

Convergence of Information Technology and Operations Technology

Threats to RevenueEnergy efficiency, slower economic growth, and new entrants negatively affect historical patterns of demand

Smart appliancesbecome ubiquitous

Consumers can easily sellsurplus energy to the grid orcontract with a third party

Regulatory environmentallows new businessopportunities

Battery technology willbecome increasinglyavailable

Electric vehicles are affordable,& utility-sponsored purchasingprograms are available

Microgrids emerge whereexisting infrastructure isinsufficient

Consumer-owned generationis affordable for the averagehousehold

Home energymanagement systemsare inexpensive &prevalent

4

Evolving UtilityBusinessModels

Ageing Assets& Workforce

New Entrants,DisruptiveTechnology

Regulatory &Social Pressure

ExponentialData Growth

Climate Change& EnvironmentConcerns

MARKET FORCES

CHALLENGES


5/23


GridPlanning

EnterpriseAnalytics

RegulatoryCompliance

GridOperation

Field Service /MaintenanceCustomer

service

CustomerDemographics,usage patterns

SocialCustomer sentiment

GridEquipment, sensors,

smart meters

GenerationTradingpartners,capacity,

generationschedules

Eventsweather, local

events

GeospatialLocation

information

One grid, multiple stakeholders and solutions, variety of datasource and type

Leveraging all these data regardless of source or type or current

usage by utilities is essential5


6/23


Typical usage patterns of data for utilities

Grid Operations

Utility company in Italy

How can I detect and act onpower outages before

customers call?

Captured and analyzed data fromgrid sensors for a comprehensive

view of grid performance

99.9% faster problem diagnosis byproviding a comprehensive, near-

real-time view of the grid

Asset & WorkforceManagement

How can I anticipate assetfailures and predict the need

for maintenance?

25% improvement in crewutilization and 10% fuel savings

North American natural gasdistributor

Correlated data from multiplesources to better plan and deploy

inspection, detection, maintenance,

repair and replacement resourcesand personnel

Smart Metering

How can I use smart meterinformation to improve

customer service?

North American utility

Analysis of Time Series energyusage, flag & event data combinedwith other customer asset & work

data

Saved $176M as a result of capitalinvestment & operations savings

6

Utilities are progressively transforming and indorsing tangible

benefits


7/23


Typical examples of ongoing analytics programsExamples:

Time of Use and Demand Response programs Customer Segmentation and individualized programs

Outage restoration and customer notification

Capital planning & budgeting Revenue assurance Improved supply chain and logistics Real-time dashboards

Optimized asset performance Predictive asset maintenance Distributed generation integration Workforce management optimization

Operational, financial and environmental risk visibility Policy and compliance simplification Fraud identification Assessment of asset infrastructure

Grow, retain andsatisfy customers

Manage risk, fraud &regulatory compliance

Increase operationalefficiency

Transform financialprocesses

7

Turning the vast amounts of data collected into usable and

actionable insight are bringing new opportunities


8/23


Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright MassachusettsInstitute of Technology 2011Source: 2011 State of the U.S. Business Analytics Software Market: End-User Perspective by Vertical Industry and Company Size IDC, June 2011Outperforming in a data-rich, hyper-connected world , IBM Center for Applied Insights study conducted in cooperation with the Economist Intelligence Unit and the IBM Instituteof Business Value. 2012

2.2x

Analytically sophisticatedcompanies outperform

their competition

more likely tooutperform industry

peers 260%more likely to betop performers

Harnessing Data presents a significant newopportunity for E&U companies

Typical meter readings per day tomanage distribution grid500 millionSmart grid instrumentation,social media data, smartdevices, location data, etc.80 %

datagrowth

Weather modeling data foroptimizing siting &performance of wind turbines4 petabytes

V o

l u m e

V e

l o c

i t y

V a r i e

t y87%

of utilities hadinvested in

business analytics;over 1/3

demonstratedpositive net results

Analytics has evolved from initiative to business imperative

8


9/23


Why & how cloud would impact utility business?

Cause

Rise in substitutes for thetraditional franchise model

Regulatory and marketchange create uncertainty

Above all, there is acontinued resistance to rateincreases

BusinessTransformation

OrganizationOptimization

Cost and resource constraintsrequire utilities to do more withless

Focus on customer engagementand aligning services tocustomer needs

Develop new business servicesor seek new or geographicalexpansion

Impact

Enables Transformation

Drives Need

Cloud will be a keyenabler for thistransformation. It

Improves Agility Cost Flexibility Business

Scalability Market Adoptability

These business trends will drive transformation in the organization

9


10/23


Emergence of cloud

1/4 thOf the worlds applicationswill be available in thecloud by 2016 .

50%Of large enterprises willhave hybrid clouds by2017.

85%Of new software is nowbeing built for thecloud.

Invest in cloud to date tobuild cloud capabilities.

Invest in Data centerexpansion

Focus on High

Revenue Cloud Deals

The emergenceof cloud istransformingbusiness and ITprocesses

SystemIntegrators areremaking theera of cloud

Utility organizations have already focusing to benefit fromcloud based investments

10


11/23


What typical benefits utilities should target from thesetechnologies & changes?

Analytics Cloud

Improve reliability

Improve efficiency

Reduce outages & durations

Integrate Distributed Energy Resources

Increased participation of Customer

Effectively manage ageing asset systems

Better utilization of assets

Better utilization of workforce

Improved Capital Planning and cashflow

Reduce operational expenditures

Minimize losses

Improve customer satisfaction and retention

Leverage information to increase customer insight Establish a trusted relationship with regulators

Ensure regulatory compliance and reporting

Customer

Satisfaction

Regulatory & goodwill

ApplicabilityTypical BenefitsBenefit Area

OperationalExcellence

FinancialPerformance

Utilities advance greater transparency into metrics achievedper stimulus quickly


12/23


Analytics for utilities our point of viewData is emerging as the utilities newest resource for competitiveadvantage, as the value of data continues to grow currentsystems wont keep pace.

Analytics are key to unlocking insights into high volumes of data(e.g., real time grid data)

Business value driven analytics would influence the utilitybusiness rather than discrete applications or software packages.Disruption occurs more rapidly, utilities management are

sensitive to value realized per spend

Decision-making is moving from the elite few to the empoweredmany. Utility organizations maturity level changes withtransformation progress. Utilities would expect flexibility innumber of users empowered on any specific analytics

depending on their current maturity

Increase in need for business user friendly analytical solutionsand focus for reduction of dependence on highly skilled ITexpertise increases self empowerment

Analytics isindispensable notjust for utilitytransformation, butfor sustenance ofcurrent business &maturity


13/23


Cloud for utilities our point of view

Early cloudadopters will haveadvantage asbusiness

transformationoccurs and industryconcerns diminish

Cloud would enable the desired express deployment ofanalytics & other applications that transform the utility business

Cloud would help to reduce time to value, increase the appetite

for risk taking and thus accelerate the innovation drive

Focus on increased intelligence, modeling, forecasting,predictive analysis will be improved with the availability of dataaccessible over cloud by user with 360deg perspective attracts increased response by researchers and students

Integration of public and private clouds with backend systemsthat will create effective hybrid environments would createdemand for development of large middleware deals & services

Maximization of cloud efforts will need innovation andreinvention of core business processes

Adoption to interoperability standards and high attention end-to-end security & data privacy is mandatory

13


14/23


LoadForecasting

Mobileworkforce

Asset Mgmt.

OutageMgmt

Warranty /Quality

SCADA

ERP/ MRP

EAM

SocialMedia

DCS

Telematics

Grid

Information Integration & Governance

SystemsSystems SecuritySecurity

On premise, Cloud, As a serviceStorageStorage

What actionshould I

take?Decisionmanagement

Landing,Explorationand Archivedata zone

EDW anddata mart

zone

Operationaldata zone

Real-time Data Processing & Analytics What ishappening?Discovery and

exploration

Why did ithappen?

Reporting andanalysis

What couldhappen?Predictive

analytics andmodeling

DeepAnalyticsdata zone What did

I learn,whats best?Cognitive

I n t e r n e

t s c a

l e m e s s a g

i n g

New/EnhancedApplications

All DataKey considerations for cloud based typical analytics architecture

Monitor the performance ofequipment and assets during

operation

Predict an equipment failure andavoid an outage

Recommend preventativemaintenance

Consolidate grid data for a360 degree view of the grid or

generation plant

AMI

DistributionMgmt.

Discover and navigate throughstructured and unstructured

data across the entireenterprise


15/23


One size does not fit all, especially for utilities

The attributes of dynamic clouds should be aligned best to the

needs of the industry

Private CloudBenefits:

Aligns to capital expenseconsiderations

Fully customizable Different build/operate models

Robust management

Secure by design

Maximize return on existing ITinvestments

Aligns to Capital Expense

Enables Op Ex services tocapture benefits of public cloud

Configured to meet yoursecurity needs

Balance the security benefitsof private with the on demandvalue of a public cloud

Benefits:

Low entry cost

Pay-per-use

Highly elastic Op Ex focus

Focal point for Op Ex alignedservices

Dynamic Hybrid

Public Cloud

Hybrid Cloud+

15


16/23


Other energy & utility industry considerations

Security, capital recovery model & changing attitudes

would influence implementation approaches

Energy providers are subject totight regulations which governcompliance in both data security

and privacy

Many providers in the utilityindustry prefer capital

expenditure investment fortheir IT needs

Gradually c hanging regulations

and market pressure will increasecloud value and activity

Security & DataPrivacy

Capital Recovery

Model

In the near term, primaryadoption will be privateand hybrid models

ChangingAttitudes

16


17/23


Generation andDistributed

Energy Resources

Substation / DistributionAutomation

Field Devices(sensors, fault,locators, powerquality devices)

Field Devices suchas IEDs / RTUs

Field Devices (forPhysical security,

Fire,intrusion protection

Metering Subnet Other Control Center F i e l d

D e v

i c e s

C

o m m

E&U Industry standard based Operation Service Bus

Control Center

DERGateway

SCADAGateway

ICCPGateway

Device SpecificGateways

VideoGateway

Multi VendorHead Ends

Utility Communication Network MPLS / IP

O p e r a

t i o n a

l T e c h n o

l o g y

I n t e g r a

t i o n

SCADA /EMS DMS/OMS

Physicalsafety &Security

Enterprise Service Bus

WFM AM GIS CIS CustomerPortal TCS/IVR

MiddlewareBridge

E n

t e r p r i s e

MDM OMS MarketOperations

Network Element Management

Commun.NMS

DeviceManagement

61850 SCLgateway

SNMPgateway

AMI NMS

ProprietaryGateway

Choice of these applications can be either on enterprise servicebus or operational service bus depending on as-is scenario

Potential candidates for cloud solutions

Applications & integrations offered on cloud in energy & utility industryare growing more rapidly

17

C l o u

d

c a n

d i d a

t e s

C l o

u d

c an

d i d

a t e s

Historian

DER

Ref. DataModel

Real Time Proprietary Bus

Planning Engineering Protection PerformanceManagement


18/23


Typical portfolio of cloud solutions

Development& DevOps

Big Data &AnalyticsSecurityMobile

Business Processas a Service

Automating Business Innovation

Marketplace of High Value Consumable Business Applications

Rapid App Development through Composable and Integrated PlatformBuilt using open standards

Enterprise Class, Optimized InfrastructureBuilt using open standards

Integration TraditionalWorkloadsIntegration/API Mgmt

Compute Storage Networking

Procurement PaymentProcessing Help Desk AccountingRecruiting

Commerce SupplyChain AnalyticsTalent

ManagementCollaboration IT

ManagementMarketingSoftwareas a Service

Platformas a Service

Infrastructureas a Service

18

Collect & managesmart meter data

smart meteranalytics

Collect & manageGrid sensor data

Grid Planninganalytics

Grid OptimizationanalyticsBusiness

Processes

Cloud solutions to help customers achieve anticipated business

outcomes, no matter where your entry point is.


19/23


What next?Engage with different stakeholders including smart grid cloudconsultants, system providers, investors and researchers to buildtarget portfolio of analytics & cloud to maximize potential benefits

Create target reference architecture including middleware (integrationbus), cloud and analytics with detailed specification of systemcapabilities

Target to develop in-house senior level professionals with industrybackground (both OT & IT skills), standard maturity andunderstanding of security for effective cloud environmentmanagement & work to optimize business processes

Gain support from regulators and ensure to document target businessmodel of future which will help shape analytics and cloud architectureand capabilities

19


20/23


Backup

20


21/23


22/23


Author profile

22

Dr. Xiaodong (Paul) Yin Brief Description of Projects and Associated Responsibilities

Executive SummarySenior Managing Consultant in aspecialist group of industry subject matterexperts in Transmission & DistributionSystems20 years experience in design anddelivery of energy, distributionmanagement systems projects, complexInformation & Technology projects inPower Industry

Relevant experienceReal-time Grid OperationsSCADA,EMS,DMS,OMSAMI, MDM, EAM and System Integrations

Prior ExperiencePast working experience with SiemensT&D and ALSTOM GridTPDDL SG Pilot Project, ENMAX,CenterPoint Energy, Progress Energy,Puget Sound Energy, Luminant, ERCOT,ISO New England, etc.

EducationPhD in Electrical Power Engineering

Paul Yin is a Senior Managing Consultant in the IBM Global Center of Competence for Energy & Utilities. He is a SmartGrid architect specializing in Grid Operations, AMI, MDM, EAM and system integrations.

Paul has over twenty years experiences in design and delivery of complex information and technology projects in electricalpower industries. Paul has deep subject matter expertise in the following specialties: power system engineering, SCADA,Distribution management system (DMS), Energy management system (EMS), Market management system (MMS), Outagemanagement system (OMS), Advanced Metering Infrastructure (AMI) and Enterprise Asset Management (EAM).

He gained this expertise through work as a consultant with IBM and as a project engineer with Alstom Grid and SiemensT&D. His utilities experience includes TPDDL, ENMAX, CenterPoint Energy, Progress Energy Florida, Puget SoundEnergy, Luminant, ERCOT, ISO New England, PG&E, CAISO, etc.

Paul started his career in 1994 as an R&D Engineer with the Belgian Nuclear Research Center. He has Ph.D. in ElectricalEngineering from the Universit Catholique de Louvain, Belgium and speaks English, Chinese and French.

Smart GridArchitect,E&U CoC


23/23


Author profile

23

Ajit Tawde Brief Description of Projects and Associated Responsibilities

Executive SummarySenior Managing Consultant in Global BusinessServices

22 years experience in IT, predominantlyinEnergy & Utilities sector focusing on SmartGrid projects.

Relevant experienceTPDDL ADR PilotDistributed Grid Monitoring asset developmentTechnical sales consultant discomsAdani Power

Prior ExperienceComputer Science Corp.TCS

EducationBachelor of Engineering in Comp Science

Ajit is a Senior Managing Consultant in the Global Delivery center of IBM India.

Prior to GBS , Ajit was working as solutions architect in sales division focusing on E&U &Smarter City domains.. He worked on RfI responses & technical solution for multiple R-APRDP tenders.

Ajit was Industry Leader in GBSC managing team of technical & domain experts whichcreated software assets for multiple utilities solutions like low voltage grid monitoring,meter data analytics, SCADA data analytics.

IBM IndiaGlobal BusinessServicesIndustryConsultant E&U

Enablement of Analytics and Cloud – Blueprint for Future Utilities_distributech v1

Documents

Transcript of Enablement of Analytics and Cloud – Blueprint for Future Utilities_distributech v1