BWP Power Generation

8/7/2019 BWP Power Generation

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SAP FOR UTILITIESPOWER GENERATION: INDUSTRY OVERVIEW


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T IMES ARE CHANGING

The SAP for Utilities set of solutions enables power generation utilities to manage assets, costs,

and capital expenditures for new or enhanced generation capacity, and comply with regulatory, safety,

and security requirements. The solutions can handle all enterprise asset management processes

from collaborative engineering to financial management and analytics.


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. . . A ND SO M US T YO U

SAP SOLUTIONSMAKE CHANGE EASIER

You dont run a generic business. So why use generic solutions?

SAP for Utilities is a set of state-of-the-art software solutions tailored to

the specific standards, processes, and challenges of the diverse utilities

industry, including power generation, transmission and distribution,

meter operation, and retail and services utilities. They are built to fit the

way you do business. And they comprise the industrys leading and most

comprehensive set of solutions, helping utilities gain enterprise-wide

visibility for better decision making in critical business areas. SAP for

Utilities solutions can help your utility improve its operational efficiency,

mitigate risk, and increase profitability, while enabling innovative

business models and customer services.

Supported by the SAP NetWeaver platform, a powerful integration

and application platform, these solutions deliver rich functionality and

productivity-building tools throughout your organization. And they

help you adopt the best practices SAP has developed in over 30 years of

working with major utilities and industry leaders from around the world.

You can minimize risk and increase the reliability of your solution

because SAP for Utilities provides the content, tools, and methodologies

you need to implement, operate, and monitor your enterprise solution.

And because they offer easy integration and virtually unlimited

scalability, SAP for Utilities solutions are an investment you cant

outgrow no matter how times are changing.


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WHEN OPPORTUNITY KNOCKS

BUILT FOR YOUR INDUSTRY

SCALED TO YOUR BUSINESSDESIGNED FOR YOUR FUTURE

SAP Is Ready When You Are

These are times of significant challenge

for power generation companies. The

pressures to effectively manage your

growing portfolios of f leets and assets

are immense. The demand to find new

ways to reduce costs while managing

asset reliability, regulations, and theemergence of renewable energy

supplies is nonstop.

Yet, the reliability and capacity of

your power plants must be maintained,

regardless of the capital costs and

investments required. As energy mar-

kets undergo the complex transition

from incumbent to competitive, you

must adapt with them. Heightened

public scrutiny, strict schedule compli-ance, outage periods, environmental

controls, increased emphasis on data

and access security, and good corporate

governance all of these factors result

in regulations that must be managed

along with your competitive

requirements.

These challenges have to be met.

The future is at stake. But are you

ready for it?

You are, if you have the support of SAP,

the worlds leading provider of business

software, and the SAP for Utilities

set of solutions. These solutions deliver

the functionality, integration, and

flexibility you need to overcome the

challenges of todays and tomorrows

power generation markets.

Built from decades of experience with

the best-run utilities companies in

the world, SAP for Utilities solutions

support critical processes and leading

industry practices that run your com-

pany. Integrated plant-management

support gives you visibility into your

complete asset life cycle from designto decommissioning managing your

asset reliability, costs, and regulatory

compliance.

Only SAP for Utilities offers a complete

set of integrated solutions for your

power plant solutions that fully

support the best and next practices

required by leading entities like the

Institute of Nuclear Power Operations

(INPO) and North American ElectricReliability Council (NERC). And

only SAP offers the SAP NetWeaver

platform the integration and appli-

cation platform supporting these

solutions and allowing for integration

of processes and information among

disparate business and technical

applications.

To help your company get ready for

tomorrow, SAP is ready today. That is

why more than 950 utilities worldwide

trust SAP with their future. As the

market leader, with an R & D invest-

ment that tops US$1.3 billion and

supports continuous innovation,

SAP is ready when you are.

All tasks [strategic

enterprise management,

activity-based costing,

and balanced scorecard]

are linked in real time.

Synchronous information

has upgraded our

employees operational

capability. And the

system ensures business

transparency throughout

the entire asset value

chain.

Woo Bang Lee, Chief Management

Head of the Enterprise ERP Office,

Korea Hydro & Nuclear Power

Company


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SAP solutions for power generation utilities enable the key processes that are critical

to running power plants and facilities including enterprise asset management

with support thats centered on reliability, reduced costs, and regulatory compliance.

. . . YO U H AV E T O BE READ Y


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GETTING READY MEANS

GET READY FOR INTEGRATEDPLANT MANAGEMENT PROCESSES

The SAP for Utilities solutions support the key processes that are critical to running

power plants and facilities, including end-to-end support for your asset manage-

ment practices. Your maintenance processes need to be centered on reliability, costs,

and regulations. The SAP for Utilities solutions give you added value by providing

an integrated f low of information from procurement, spare parts management,

and subcontracting; project and document management; plant maintenance and

workforce management; environment, health, and safety procedures; financials;

analytics; and investment planning processes giving you true, integrated resourceplanning and risk evaluation capabilities.

Plant Maintenance and Safety

Regardless of the financial resources

available for operating and maintaining

technical installations, power genera-tion companies must be able to guaran-

tee schedule compliance with opti-

mized outage timelines to meet their

customers energy demands, while at

the same time adhering to a slate of

stringent safety regulations. The SAP

for Utilities solutions are helping gener-

ation companies take a more strategic

approach to managing their power

plants life cycles by integrating plant

maintenance, work clearance and per-

mitting processes, as well as project and

document management, with financial

information. They provide generation

companies with improved operational

visibility to support equipment moni-

toring along the entire asset life cycleof a plant and manage shutdown,

turnaround, and outage periods most

efficiently. You can better manage

the risks of unplanned downtimes

and increase the efficiency and safety

levels of maintenance planning and

execution.

Maintenance Cost Budgeting

For power generation companies,

maintenance expenditures typicallyaccount for a significant amount of

operating costs. Because critical infor-

mation, such as actual maintenance

costs, planned maintenance costs, and

maintenance-related budget data, are

often insufficiently integrated, genera-

tion companies can face considerable

difficulty developing accurate mainte-

nance budgets. The SAP for Utilities

solutions allow generation companies

to define a maintenance budget and

run maintenance analytics on existing

asset life-cycle management data.

Standard budgets can be generated

automatically based on the desired

budget strategy, reducing budget

preparation time.


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. . . GE TTI NG I NTE GR AT ED

Mobile Asset Management

Power generation companies are seek-

ing ways to eliminate the inefficiencies

of paper-based systems and extend the

ability of service technicians to connect

easily from repair sites to asset informa-

tion. The SAP for Utilities solutions

allow field employees to access, enter,and share role-based information from

any location using any mobile device to

perform short- and long-cycle work for

repairing, inspecting, and overhauling

equipment.

Emissions Management

The emissions management capability

lets you leverage the functionality of

the SAP for Utilities solutions for the

cost-efficient monitoring and control-ling of emissions output, tracking

compliance, and generating reports.

As a result, they lead to improved plant

operations and reduced plant costs;

they allow for better-informed risk-

management decisions, including

decisions for new generation facilities

and future costs of emissions rights;

and they manage compliance to regula-

tions, such as the Clean Air Act and

the Kyoto protocols.

Unified Plant and Business

Information

Competitive energy markets create

the need for greater velocity in business

decision making, while managers

from all levels need fast, up-to-date,

accurate, and complete information

from technical and business domains.

The SAP for Utilities solutions enable

the integration and unification of plant

and business information into a single

view. Information about asset-related

processes and documents, financialsand controlling, and production-

relevant data, such as load capability

and reserve capacity, production costs,

and market prices, is readily available.

Relevant systems and key performance

indicators can be accessed from a single

user interface.


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SAP for Utilities solutions deliver added value by providing an integrated flow

of information across your entire value chain information you need for integrated

resource planning and risk evaluation.

GETTING INTEGRATED MEANS


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. . . G ET TI NG S AP F OR UT IL IT IE S

Procurement

The SAP for Utilities solutions help

power generation companies to stream-

line procurement and revision process-

es, leading to reduced material inven-

tory and more efficient information

exchange with contractors and suppli-

ers. They enable supplier qualificationand candidate selection, bidding and

contract management, and collabora-

tive engineering and project manage-

ment. To gain visibility along the entire

value chain, procurement is tightly in-

tegrated with maintenance operations

and project management, as well as

financials. SAP for Utilities solutions

support not only traditional processes,

such as requisitioning, purchase-order

management, and invoice verification,but also catalog-based self-service

requisitioning for material and services.

Corporate Governance and

Regulatory Compliance

Utilities around the world face close

scrutiny of financial records, environ-

mental processes, safety precautions,

labor-law compliance, performance

ratings, and supply security. Manage-

ment must be able to demonstratecompliance and good faith through

accurate and detailed records. The

SAP for Utilities solutions improve cor-

porate governance and help manage

compliance by providing functions that

centralize the documentation of inter-

nal controls. These include online con-

trols for internal and external auditors

and the ability to export data to audit-

ing software, enabling detailed insight

into various audit functions andproviding faster, more accurate report-

ing. Support for whistle blowers helps

organizations cost-effectively address

the legal requirements of the Sarbanes-

Oxley Act and reduce the risk of

noncompliance.

Integrated Financial

Information

Without insight into financial and

business performance, companies are

unable to make informed strategic deci-

sions. The SAP for Utilities solutions

integrate all financial and business per-

formance information with manage-

ment processes for effective, strategic

decision making. This improves

investor communication, streamlines

the financial supply chain, enables col-

laboration with customers and vendors

on payment and settlement activities,and reduces transaction costs.

Human Capital Management

and Workforce Deployment

The SAP for Utilities solutions support

employee life-cycle management to

help power generation companies iden-

tify and retain top performers, leverage

their talents, align employee goals with

organizational goals, and maximize theimpact of training. And to help compa-

nies lower costs, employee transaction-

management features streamline

and integrate essential human capital

management processes, including

administration, payroll, time manage-

ment, and legal reporting. The SAP for

Utilities solutions support workforce

deployment by allowing companies to

create project teams based on skills and

availability, monitor project progress,

track time, and analyze results.


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The project helps reduce

the existing range of

software considerably

and the heterogeneous

data-processing land-

scape. The implementa-

tion of SAP for Utilities

plant maintenance

software enables all the

technical and commercial

areas involved at the

various manufacturing

sites to handle the entire

integrated process of

maintenance processing

using SAP applications.

Norbert Stoll, Project Manager,

E.ON Kraftwerke GmbH

AND GETTING S AP FOR UTILITIES MEAN S

GET READY FOR BUSINESS BENEFITS

The SAP for Utilities solutions enable power companies to manage asset reliability

and costs, increase safety and security, and handle compliance for environmental

standards and corporate governance. They provide a business solution for faster

decision making and more efficient collaboration within the company and with

suppliers, contractors, authorities, energy wholesalers, and other market partici-

pants. Key attendant business benefits of implementing these solutions include:

Improved management of assetreliability and costs by providing aconsistent view on asset life-cycle

information from design to

decommissioning

Increased plant and work safetythrough visibility and validation of

all critical work sequences and

responsibilities

Better management of environmen-tal compliance through monitoring

and reporting of critical processesand assets

Expanded security through monitor-ing of project resources, processes,

facility access, and business data

protection

Optimized procurement processesand material inventory by enablingcollaboration and contracting of

operational management services

with suppliers, contractors, and

partners, as well as streamlining

corporate-wide buying processes

Real-time information through inte-gration of technical and commercial

processes and systems

Better management of investment

opportunities and risks supportingacquisition and retirement strategies

through provision of key perfor-

mance indicators and the integration

of strategic enterprise management

techniques

Integrated financial information us-ing standardized processes providing

visibility on capital, operational, and

third-party expenditures; monitoring

project costs and regulatory risks;

and integrating business perfor-

mance information with manage-

ment processes

Streamlined and simplified work-force-related processes through

integrated employee transaction

management, deployment of the

workforce based on skills and

availability, and innovative employee

life-cycle management that aligns

employee talents with corporategoals


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. . . GETTING RESULT S

Investment Planning,

Asset Specification, and Design

Investment management Collaborative engineering and project

management

Procurement and Asset Construction,

Installation, and Implementation

Supplier qualification and candidateselection

Bidding and contract management Collaborative engineering and project

management

Project and investment controlling

Maintenance and Operations

Management

Technical assets management,including document and equipment

data management

Maintenance planning and execution

Preventive and predictive maintenance Reliability-centered maintenance

Environment, health, and safetymanagement, including work clearance

management

Mobile asset management Material parts and services procurement Employee and contractor management Integrated asset accounting and mainte-

nance budgeting

Asset performance analysis

Decommissioning and Disposal

Asset transfer and disposal Collaborative engineering and project

management

Waste management Regulatory compliance managementAsset remarketing

Enterprise Management

Financial supply chain management Human capital management

SAP for Utilities Supports Business Processes SAP for Utilities solutions enablepower generation companies to benefit

from cost management and asset

optimization strategies needed to

address high capital costs and

investments for plant reliability and

capacity upgrades.


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GET READY FOR LOWER TCOAND FASTER ROI

POWERED BY SAP NetWeaver

WITH SAP SOLUTIONS, YOURE READY

With the SAP NetWeaver platform pow-

ering SAP for Utilities solutions, operat-

ing costs decline, while IT investments

go further than ever. As the technical

foundation for SAP service-based,

enterprise-scale business solutions,

the SAP NetWeaver platform enablesEnterprise Services Architecture,

which provides a blueprint for service-

oriented business solutions.

The SAP NetWeaver platform combines

SAPs experience in integrated enter-

prise applications with the flexibility of

Web services and open standards. It is

the power of SAP NetWeaver that

enables SAP solutions to support the

complex processes inherent to the

utilities industry.

Using this power, you can flexibly and

quickly plan, design, implement, and

execute new processes and business

strategies, speeding up your ROI.

Because you can create new solutions

on top of existing applications, the

value and life expectancy of yourcurrent systems are increased. You

can adapt rapidly to new or modified

business processes, do business more

effectively with external business

partners, and replace your old and

outdated business practices with best

practices. These capabilities set your

utility company on a firm foundation

for flexible growth and give you the

high levels of adaptability and open-

ness required to reduce total cost of

ownership.


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. . . F OR TO DAY A ND TO MO RR OW

ARE YOU READY TO MEET THE FUTURE?

SAP Is

And with the SAP for Utilities solutions

for power generation companies, you

can be too. You can master business

processes up and down your asset value

chain. You can adapt to changing

markets, accurately monitor your

environmental performance, and meetthe challenges of increasingly competi-

tive energy markets head-on. You can

be ready for whatever tomorrow brings.

SAP Is Ready Are You?

For more detailed information about

the SAP for Utilities solutions for power

generation companies and how they

can help your business always be ready,

visit the SAP Web site today at

www.sap.com/utilities.


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Today, in 70 countries around the globe, more than 950 leading electricity,

gas, water, and municipality utilities in regulated, transitioning, and

deregulated markets rely on SAP for Utilities.

AS TIMES CHANG E, EVERYONE NEEDS


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. . . S OM EO NE TH EY CA N C OU NT ON

A PARTNER WHO IS ALWAYS READY

SAP is the worlds leading provider of business software solutions. Today, more

than 24,450 customers in over 120 countries run more than 84,000 installations of

SAP software from distinct solutions addressing the needs of small and midsize

businesses to enterprise-scale suite solutions for global organizations.

By choosing SAP, your utilities business

is assured of the following:

Solutions designed for your industry:SAP offers a full range of software

that supports the most important

business processes and best practices

in more than 25 industries, including

yours. And SAPs global organization

includes hundreds of professionals

who work exclusively with your

industry.

Solutions scaled to your business:

Although SAP is known for servingthe worlds largest corporations

including 80 of the FORTUNE 100

nearly two-thirds of SAP customers

have annual revenues of US$500 mil-

lion or less. SAP solutions fit your

size and budget today while offer-

ing unlimited scalability for

tomorrow.

Solutions made for your success:

Because SAP solutions are built onthe SAP NetWeaver platform, the

open integration and application

technology platform from SAP, they

integrate with virtually all SAP and

non-SAP applications, leveraging

your investments past, present,

and future.

SAP offers best-in-class solutions and

applications for virtually every aspect

of your power generation business,including the following:

SAP Service and Asset Managementsolution

SAP Mobile Asset Managementapplication

SAP xApp Emissions Managementpackaged composite application

mySAP Supplier RelationshipManagement solution

mySAP ERP solution

Each solution is backed by the global

expertise of SAP services, offering the

widest range of services and support

that organizations require, from

consulting, education, and support

to custom development and hosting.

The best-run companies are ready

for anything. Read on for more details

about how the SAP for Utilities set

of solutions can help you join the

best-run utilities that run SAP:

www.sap.com/industries/utilities.

Thanks to SAP Enter-

prise Portal, our

employees no longer

have to come to grips

with a new system

every time new func-

tionality is introduced.

And SAP NetWeaver is

an ideal platform for

optimizing and develop-

ing our IT environment.

Lars Holten, CIO, Statkraft


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These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only, without representation or warranty ofany kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statementsaccompan ing s ch prod cts and ser ices if an Nothing herein sho ld be constr ed as constit ting an additional arrant

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