Herding Cats in the Digital World

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  1. 1. with youHerding Cats in theDigital WorldDavid DuCharme, Victor JimenezMike SwatekOracle OpenWorld | 29 September 2014
  2. 2. Copyright 2014 Capgemini. All Rights Reserved 2PresentersDavid DuCharme, VP NA Utilities, CapgeminiDavid leads the Utility practice in North America for Capgemini. He brings many years ofexperience in the energy industry covering a wide range of initiatives including multi-stateutility mergers, the reorganization of several state run utilities, the rollout of smart meter/smart grid across North America and most recently operational excellence.Mike Swatek, Enterprise Information Architect, Pacific Gas and ElectricMike joined PG&E to lead Enterprise Information Architecture in 2012 after developing andimplementing an Information Management and Business Intelligence strategy for Bank ofHawaii that contributed to substantial performance improvements across the bank, helpedto minimize the impact of the banking crisis of 2008 to Bank of Hawaii, and contributed toBank of Hawaii being chosen as the Nation's Best Bank by Forbes Magazine in 2009 and2010 and number two in 2011.Victor Jimenez, Energy & Utilities Executive, CapgeminiVictor has 20 years of experience in the utility industry. In his current role, Mr. Jimenez leadsCapgeminis utility analytics and Oracle solutions. Prior to joining Capgemini, Mr. Jimenezheld positions as an executive at Oracle and senior technology roles at a utility.
  3. 3. Copyright 2014 Capgemini. All Rights Reserved 3AgendaDigital Utilities TransformationChallengesAnalyticsPG&E Story
  4. 4. Digital Utility Transformation (DUT):The changing digital relationships at two ends of the utility value chainTransformation TransformationCustomer andExternal MarketCopyright 2014 Capgemini. All Rights Reserved 4RationalizationAssets andPeople Backoffice= Application Count Across the Value ChainCompanies that embracedigital transformationfinancially outperform theirpeers by 26% - DigitalTransformation StudyConducted by Capgeminiand MITEnterprise Wide Data Layer
  5. 5. Copyright 2014 Capgemini. All Rights Reserved 5Some industries are more mature than othersAverageindustrymaturity** Average maturity of industries for which wereceived at least 20 survey responsesTelecommHigh TechnologyRetail BankingTravel andhospitalityConsumerPackaged GoodsPharmaceuticalsInsuranceUtilitiesManufacturingTelecommHigh TechnologyRetail BankingTravel andhospitalityConsumerPackaged GoodsPharmaceuticalsInsuranceUtilitiesManufacturingFASHIONISTAS DIGIRATIBEGINNERS CONSERVATIVESDigitalintensityTransforma>onmanagementintensity
  6. 6. Copyright 2014 Capgemini. All Rights Reserved 6Every Industry has Digital LeadersUtilities are in great majorityconservatives"There is a great consensusaround the transformativepotential of DigitalTechnologies, although withlimited hope for significantlyincreasing revenue"
  7. 7. Copyright 2014 Capgemini. All Rights Reserved 7Key messages from the Utilities sample1) Utilities have only started adopting digitaltechnologies in specific areas such as thecustomer experience. Our European retail benchmark showsthat customer satisfaction and optimized channel mix (3 at the most)are necessary for reaching low cost to serve2) Analytics is not widely used in either customer oroperational applications3) Untapped opportunities may exist in workerenablement and process digitization4) Data and integration issues may presentchallenges in other areas5) Utilities digital transformation managementpractices are relatively more mature than their useof digital technologies
  8. 8. Copyright 2014 Capgemini. All Rights Reserved 8Digital transformation opportunities for Energy retailersProactivelistening to themarketDigitalProcessesCustomerBehaviorunderstandingCustomer SelfservicesPersonalizationof servicesCorrelating competitorrates against churn andmonitoring social mediaImprove Internalexperiences thatenhance customerengagement Analytically led serviceCollaborative workingwith the customer in thefieldConsumption throughsmart metering anddesign specific offeringsFieldStaffBackOfficeCustomer
  9. 9. 5 major technology trends drive the digital transformation with compositesolutions addressing business opportunitiesCopyright 2014 Capgemini. All Rights Reserved 9Internet CollaborationAppificationBPMIntelligent devicesBPMS Big dataCloudMobilityComposite DigitalSolutionsCustomerExperienceBusinessmodelOperationalProcess
  10. 10. acwceilethra tyinog uAnalytics
  11. 11. GovernanceAgile Interaction LayerChannel ServicePersonalization &Interaction Layer Insight LayerOrchestration & Integration Layer LayerSpeedValueIndustrializationCost reductionCopyright 2014 Capgemini. All Rights Reserved 11Capgeminis H-model Architecture is fundamental for DUT:Enabling Speed of Digital InnovationSecurityLayerApplication & Data LayerRobust ApplicationLayerOverallObjectivesSystems ofInnovationSystems ofDifferentiationSystems of RecordsSpeedValueIndustrializationCost reductionThe H-model distinguishes the robust application layer and the agile interaction.
  12. 12. Copyright 2014 Capgemini. All Rights Reserved 12Oracle Utilities Study RevisitedEnablers BarriersCloudReadinessCustomer ValueData Required1. Meter2. Outage3. SCADA4. CustomerOperational ValueSkillsSource: Oracle Study 2013 Utilities and Big Data: Accelerating the Drive to Value
  13. 13. Governance and ChangeManagement has emerged as a keyrequirementCopyright 2014 Capgemini. All Rights Reserved 13Study Revisited Where are we now?DriversUse cases and data sources definevalue proposition of analyticssolutions especially when resultingin operational efficiencySmart Meter programs are acatalyst for change but others haveemerged (assets, pricing, customer,cross-functional)DW EnrichmentBig data does not replace DW but iscomplementary. ToolsCenters of Excellence and newanalytics organizations (businessand IT) are emergingBig DataDefinition has changed for utilities mostly focused on hadoopimplementations and InformationManagement maturityTrendsVisualization, self-services, DataLake, predictive, real-time andoperational / eventsSkill barriers are still there althoughmitigated by technology: cloud,engineered systems, data models.Enablers BarriersCloudReadinessCustomer Value1. Meter2. Outage3. SCADA4. CustomerOperational ValueSkillsData RequiredPeople
  14. 14. Copyright 2014 Capgemini. All Rights Reserved 14Enablers Big DataBig Data Appliance isEngineered for SavingsBig Data SQLIts not just about a hadoop implementation
  15. 15. Transformation TransformationCopyright 2014 Capgemini. All Rights Reserved 15Enabling DUT (analytics) across the value chainCustomer andExternal MarketRationalizationAssets andPeople BackofficeEnterprise Wide Data LayerGeneration Procurement Electric Gas Customer Corp ServicesHow do we solution across all business units?How do we minimize data silos?How do we fund the enterprise solution?
  16. 16. Copyright 2014 Capgemini. All Rights Reserved 16How do we proceed?People and Transformation! Develop an analytics strategy! Center of Excellence, analytics organizationBig Data initiatives! Smart Grid or Smart Meter! Pilots and POCs1 00 11 1 01 0 0 1 00 1Data warehouse enrichment! BI technology upgrades to achieve strategic goals! Rationalize BI technology components1 0 1 10 0 1 1 1 0 10 1 0 0 1 1 0 11 0 1 0 1 1 0 01 0 1 1
  17. 17. acwceilethra tyinog uPG&E Story
  18. 18. 0 11 1 0Copyright 2014 Capgemini. All Rights Reserved 18PG&E Analytics JourneyWere starting with ! Hundreds of data silos, thousands of data files,tens of thousands of Excel workbooks.! No data inventory, metadata, business glossary! Data is not integrated or correlated! Poor quality, unreliable, often late data! Limited analytics tool expertise! Basic BI is very manual and labor intensive! BI, analytics and data are not trusted; opiniondrives decisionsBut we want ! Real-time situational awareness! Situational Intelligence! Predictive asset management! Grid & pipeline risk modeling! Predictive outage alerting! Volt/VAR control & optimization! Short/Medium/Long-term demand forecasting! Emergency response modeling! Reduce operating and project costs! Accelerate time to market1 01 0 0 1 00 1
  19. 19. Copyright 2014 Capgemini. All Rights Reserved 19The Digital UtilityData is the life-blood of the Digital Utility
  20. 20. AnalyticsCenter forExcellenceCopyright 2014 Capgemini. All Rights Reserved 20Analytics Vision! Develop competency in 3 CoreCapabilities for Analytics Success! Align Roles of Business and IT ITs Role: Provide trusteddata and analytics tools tothe Business Business Role: Develop andapply information to high-valuedecisions and processes! Establish Analytics Center forExcellence! Establish Enterprise InformationGovernanceEnterpriseInformationGovernanceDataManagement& AnalyticsBusinessITToday TargetInformation-drivenCultureInformationFactoryDataManagementPEOPLE PROCESS TECHNOLOGYAnalyticsDevelopersBusinessIT
  21. 21. Copyright 2014 Capgemini. All Rights Reserved 21Where are we now?Underway ! Data Management and Analytics Strategy! Strategic plans are gaining support! Influencing some key projects:! STAR! GOSI! IKON! STDF! Data Management & Analytics Organization! Analytics Center for Excellence! Enterprise Information GovernanceOn the horizon! Inventory our data and data stores! Consolidate into a few core platforms! Virtualize to accelerate delivery! Analytics sandboxes! Monitor, measure, & assure data quality! Advance our analytics skills and maturity! Introduce new tools and methods! Pervasive Intelligence! Enterprise funding model
  22. 22. Copyright 2014 Capgemini. All Rights Reserved 22Contact InformationDaveDuCharmeVP NA Utilities Leaderdavid.ducharme@capgemini.comVictorJimenezUtilities Executivevictor.jimenez@capgemini.comMikeSwatekEnterpr