Delivering Real-Time Business Value for Utilities

July 2013
Delivering Real-Time Business Value
for Utilities
SAP Business Suite Powered by SAP HANA
Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
A smart digital utility orchestrates data to provide
innovative services and business models
Data orchestration layer
Smart digital utility
Cost, revenue and
billing tracking
Customer
and user data
Data storage
Data collectionData analytics
Monitoring
and tracking
Asset
management
Market com-
munication
Security
Dynamic tariff and
pricing models
Energy mgmt.
for infrastructures
Demand-side I
ntegration
Mobile services
(bill shock)
Mobility services
Prosumers and
virtual power plants
Capacity mgmt.
Grid and
data services
Investment
operations
and contracting
Controllable
local systems
Enterprise services
(energy footprint,
sustainability)
Trading and port-
folio services
Service provider
Social media
Energy storage
services
Market service layer

Manage the energy revolution in real-time
Maximize production
without compromising
safety or compliance
 Optimize asset performance with streamlined and
integrated processes
 Enhance visibility into asset performance to
improve maintenance efficiency and proactively
manage risk and safety
Optimize your asset
investments in
distribution
 Provide deep insight into information across
multiple data sources to adopt state-of-the-art
maintenance strategies that ensure grid reliability
 Support the decision-making of capital planning
and central treasury exposure management for
network expansion
Deliver greater value in
supply while consistently
reducing the cost
 Enable timely and accurate reporting of financial
and operational performance
 Enable call centers and online services to deep-
dive into high volume data for better customer
service.

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for utilities
Customer Experience
Multichannel Marketing
Sales and Customer Service for
Residential Customers
Commercial and Industrial Customers
Energy Supply Chain Optimization
Fuel Supply Chain Management
Metering Service Parts
Planning and Logistics
Energy Portfolio Management
Operational Efficiency for Plants
and Grids
Asset Portfolio and Commissioning
Asset Visibility and Performance
Asset Operations and Maintenance
Operational Risk Management
Energy Revolution Management
Smart Meter Data
Management and Operations
Demand Side Management
Energy and Environmental Resource
Management
People and
Talent
Core Human Resources and
Payroll
Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Finance
Financial Performance
Management
Accounting and Financial
Close
Treasury and Financial Risk
Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management IT Strategy and Governance
Bill-to-Cash
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration

Industry value map for utilities
Real-time value for key end-to-end processes
Customer Experience
Multichannel Marketing
Residential Customers
Commercial and Industrial Customers
Energy Supply Chain Optimization
Fuel Supply Chain Management
Metering Service Parts
Planning and Logistics
Energy Portfolio Management
Operational Efficiency for Plants
and Grids
Asset Portfolio and Commissioning
Asset Visibility and Performance
Asset Operations and Maintenance
Operational Risk Management
Energy Revolution Management
Smart Meter Data
Management and Operations
Demand Side Management
Energy and Environmental Resource
Management
People and
Talent
Core Human Resources and
Payroll
Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Finance
Financial Performance
Management
Accounting and Financial
Close
Treasury and Financial Risk
Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management IT Strategy and Governance
Bill-to-Cash
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Highest real-time
business value
for utilities
2
4
1
5
6
3

Customer Cases
Japanese
technology firm
• SAP HANA products and SAP
Business Suite on SAP HANA
• Automated reporting
• Inventory optimization
• Predictive analytics
• Inventory visibility
European
technology firm
• SAP Business Suite on SAP HANA
• Real-time inventory
• Real-time material planning
• Marketing and sales
• Fast financial close
Leading U.S.
technology firm
• SAP HANA Platform and SAP
Business Suite on SAP HANA
• Variable margin analysis
• Customer service excellence
• Opportunity order analysis
• Predictive analytics
• Supplier network traceability
• Predictive scoring
$25 million
benefit over
five years
Annual
benefit
€85 million
Five-year net
value
$152 million

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As starting point, we recommend a performance
and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Customer case: utilities provider in Russia
Summary validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
HR reporting on
SAP HANA
(€150k)
Annual revenue: €2 billion
Financial reporting
on SAP HANA
(€250k)
SAP Business
Suite on
SAP HANA
SAP HANA
products
SAP HANA
Platform
Phase – deployment road map
1 Phase 1
HR reporting on SAP HANA
(Increase business user productivity)
Financial reporting on SAP HANA
(Increase business user productivity)
SAP HANA use cases mapped to
industry value map end-to-end solutions

Customer case: utilities provider in Russia
SAP HANA Platform
400
0
50
100
150
200
250
300
350
400
450
2013 Phase 1
Costs SoH Applications Platform
Anything built on the platform that is customer specific - new business processes and business models
SAP NetWeaver BW on SAP HANA, high performance apps (HPAs), apps powered by SAP HANA – mapped to IVM E2E
solutions
€
Currently available functionalities (SP0, 1, 2); 23 scenarios mapped to IVM E2E solutions; and planned functionalities (All of
the end-to-end solutions on the industry value map are in scope.)
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA
SoH = SAP Business Suite on SAP HANA
Annual benefits, SAP HANA
Platform
Annual benefits, applications
powered by SAP HANA: €400k
Annual benefits, SAP Business
Suite on SAP HANA
Estimated deployment costs
Total transition cost
Based on actual SAP
customer engagements

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Financial reporting on SAP HANA
Utilities
Business context and goals
 This large utility provides heat and hot water in Moscow and the Moscow region.
Business challenges
 Existing environment requires effort to collect accounts receivable (AR). There is a need to
optimize the process and make it more transparent and fast.
Process innovations
 Centralized reporting on SAP NetWeaver Business Warehouse with a drill-down to specific
accounts
Contribution of SAP HANA
 Meets requirements for performance and large volume of data
Value drivers/KPIs
 Business user productivity
Innovation scope
SAP Business Suite on SAP HANA (now and
future)
E2E solution
Utilities – financial performance management
Value potential 2
Feasibility 3
Low High
1 5
Low High
1 5

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
HR reporting on SAP HANA
Utilities
Business context and goals
 This large utility provides heat and hot water in Moscow and the Moscow region.
Business challenges
 Current reporting time for payroll and employee statistics (more than 20,000 employees) is slow,
which impacts the productivity of HR function
Process innovations
 Centralized payroll processing for 20,000 employees based on SAP HANA technology – faster,
cuts down on errors, and requires fewer calculating resources
Contribution of SAP HANA
 Meets requirements to performance and large volume of data
Value drivers/KPIs
 Business user productivity
Innovation scope
SAP Business Suite on SAP HANA (now and
future)
E2E solution
Utilities – core human resources and payroll
Value potential 2
Feasibility 3
Low High
1 5
Low High
1 5

Reference utilities customer
Summary validated scenarios (combined findings)
Feasibility
BusinessvalueMedHigh
Med High
HR
reporting
on SAP HANA
Sales and
operational
analytics on SAP
NetWeaver BW on
SAP HANA
Predictive
maintenance
Financial analytics
on SAP NetWeaver
BW on SAP HANA
Finance
reporting
on SAP HANA
Phase – deployment road map
1 Short term
EAM: Predictive maintenance: Predictive
maintenance for assets and facilities reduces
downtime and parts inventories while increasing
asset utilization.
CRM: Sales and operational analytics: Sell what is
available, merging information from multiple
LOBs in one real-time dashboard.
EPM: Financial analytics: Get real-time visibility into
profitability by segment and individual customer.
2 Medium term
FIN: Finance reporting: Existing environment
requires big efforts to collect AR data. There is a
need to optimize the process and make it more
transparent and fast.
HCM: HR reporting: Current reporting time for payroll
and employee statistics (more than 20,000
employees) is slow, which impacts the
productivity of the HR function.
SAP HANA Platform: customer specific
SAP HANA products: SAP NetWeaver on SAP HANA ,
HPAs, apps powered by SAP HANA
SAP Business Suite on SAP HANA
SAP HANA
use case
Legend
SAP Business
Suite on
SAP HANA
SAP HANA
products
SAP HANA
Platform
SAP HANA use cases mapped to
industry value map end-to-end solutions

SAP Business Suite powered by SAP HANA
Business value for each end-to-end process/implementable step
Line of business End-to-end process/implementable step
Finance
Financial performance management
 Planning, budgeting, and forecasting
 Profitability and cost analysis
 Financial and managerial reporting
Accounting and financial close
 Accounting and entity close
Collaborative financial
operations
 Receivables management
 Payables management
 Shared service framework
Enterprise risk and compliance
 Access control role analytics
Human resources
Core HR and payroll
 Payroll processing
 Effective shared services delivery
Time and attendance
management
 Time and absence calculation
Workforce planning and
analytics
 Transactional analytics
Procurement Operational procurement
Manufacturing
Production Planning
 Material requirement planning
Efficient manufacturing
operations
 Global plant performance
management
Research and
development and
engineering
Enterprise portfolio and project management
 Portfolio management (portfolio and project management)
 Project management (portfolio and project management)
 Project management (project system)
Supply chain Demand driven supply chain Supply chain monitoring Warehouse management
Sales, service,
marketing
Marketing
Definition and execution of sales
strategy, collaborative order to cash,
collaborative sales force automation
 Sales planning and monitoring (CRM),
collaborative pipeline management,
customer engagement intelligence,
audience discovery and targeting
Sales
Multichannel marketing
management, marketing
operations, marketing
demand management
 Audience discovery and
targeting, customer insight
and segmentation,
campaign management,
marketing analytics and
performance management
Service
Multichannel customer service
• Contact management with
interaction center
Service
Asset operations and
maintenance
• Asset planning and scheduling
Asset management
Asset operations and maintenance
 Asset planning and scheduling

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Asset operations and maintenance
Asset planning and scheduling
 Maintenance scheduling consumes a
great deal of time
 High amount of master data
influences performance of data
maintenance
 Manual and error-prone process of
preselection of maintenance plans
 Potential to miss necessary objects
for maintenance calls
 High number of maintenance plans
that need to be scheduled frequently
leads to a weekly scheduling scheme
 Accelerated mass transactions
 Instant analysis on top of
transactions
 Preselection of due plans, speeding
up the process significantly
 Real-time analytics on all data,
including machine sensor information
 Scheduling of all maintenance plans
within a specific timeframe
 Planning several times a day (instead
of once a week) results in
up-to-date scheduling information in
maintenance operations
 Faster response times leads to more
accurate maintenance scheduling
Increase
asset utilization
and reduce
unplanned asset
downtime
Maximize
Gain
asset uptime
up-to-date
scheduling
information on
maintenance
operations
With SAP Business Suite on
SAP HANA

Today
Asset portfolio and commissioning (1/2)
Business value for portfolio management (SAP Portfolio and Project
Management)
 Fact-based go/no-go decisions require
real-time information on the status of
the running projects and the project
proposals. Analysis for large portfolios
in the portfolio dashboards is time
consuming, leading to lack of
transparency.
 Faster access to decision-making
information such as status, timeline,
and financials in dashboards
 Accelerated comparison of running
projects and proposals in the
dashboards
Increase
transparency for
decision-making
Improve
speed of
aggregating
financial
information
 Aggregation of financials, such as
actual or planned cost commitments
along the investment hierarchy, takes
a long time for large portfolios.
Outdated information on the
investment increases review efforts.
 Manual editing of standard financial
KPIs such as net present value and
internal rate of return adds additional
tools and manual effort for portfolio
managers
 Speeding up of aggregation of
financials along the investment area
hierarchy
 Calculation of most important KPIs
based on values from financial
planning, removing manual calculation
With SAP Portfolio and Project
Management on SAP HANA

Today
Asset portfolio and commissioning (2/2)
Business value for project management (SAP Portfolio and Project
Management)
 Project members experience long
waiting times when starting the
project and task dashboards. This
reduces user productivity when
working on several projects and on
tasks across projects.
 Updates on multiple tasks are
inefficient and time consuming as
project team members confirm tasks
one-by-one to reduce waiting times
 Searching for documents across
projects takes a very long time for
large project portfolios
 The process of finding projects,
tasks, and phases by responsible
project member is slow
 Faster access to tasks and projects
 Accelerated access to project, task,
and checklist items dashboards
 Ability of project team members to
confirm times, status, and dates and
to attach documents for several tasks
at once
 Increased user productivity
 Accelerated search for documents
 Ability to quickly find projects or tasks
by responsible project member
Increase
user productivity
Reduce
Improve
time for task
confirmation
Search for
documents and
project elements
With SAP Portfolio and Project
Management on SAP HANA

Today
Procurement and order collaboration
Business value for operational procurement
 Missing real-time insight into
operational procurement reporting
 Inability to dynamically create
operational procurement-related
reporting in a modern user interface
 Slow and costly paper-based
processes
 High transaction costs
 Long running transactions while
posting documents with high volume
of line items
 Frequent errors, yielding to maverick
spend
 New configuration options for
procurement analysis
 Modern and easy-to-consume user
interface
 Complete visibility into end-to-end
procurement activities
 Real-time insight and easy-to-
manipulate information
 Accelerated long-lasting processing
of purchasing documents
Increase
transparency
Lower
Increase
procurement
operations cost
process
effectiveness
SAP HANA

Today
Asset visibility and performance
Business value for material requirements planning (MRP)
 Decisions often based on periodic
MRP runs and outdated information;
process done in batches
 Inability to replan quickly if conditions
change due to long run times.
Prediction of inventory coverage for
critical parts is difficult.
 Inability to replan if conditions change
during the planning horizon due to
long run-times
 Faster replanning allowing more
frequent MRP runs in shorter cycles
 Instant reaction to demand changes
and updates to the supplier
 Demand information propagated
faster through the supply chain
 A new interactive work distribution
dashboard provides supervisors with
actionable insights into the workload
of their teams and employees
 Better synchronized material demand
and supply planning with reduced
bullwhip effect
Reduce
out of stocks by
36%
Decrease
Limit
inventory and
safety stocks by
29%
bullwhip effect
SAP HANA

Today
Sales and customer service for residential customers
Business value for contact management with interaction center
 To successfully resolve customer
issues, companies need to be able to
quickly locate the right experts or
resources within the organization,
whether those experts work inside
the contact center or elsewhere
 Managers and supervisors lack
actionable reporting and visibility into
the workload of their teams
 High volume of customer records and
interactions results in increased
search times and greater difficulty
locating specific customer records
 With the new SAP HANA-based
agent inbox, users can more easily
search for relevant experts – whether
in their own team or elsewhere in the
organization – in order to
dispatch/escalate issues to the most
suitable employee roles
 A new interactive work distribution
dashboard provides supervisors with
actionable insights into the workload
of their teams and employees
 Searches in the interaction center,
including account searches,
interaction history, and the customer
fact sheet, are significantly faster
Decrease
average handling
time
Improve
Reduce
service-level
agreement
compliance
service cost
SAP HANA

Today
Financial performance management (1/3)
Business value for planning, budgeting, and forecasting
 Planning performance limited to
OLAP, staged cubes for transactional
and master data
 Data load performance is driven by
the amount of data extracted from
SAP Business Suite
 Reporting, loading, and retraction
performance limits planning iterations
 Drilldown within OLAP cube, and
drill-through to SAP Business Suite
and OLTP data within standard times
 Seamless replication of master and
transactional data from SAP
Business Suite
 Availability of more granular data to
support planning
 Big Data challenge is negated, and
allows for faster extract and DSO
activation times
 Iterative planning and real-time
simulation are supported through
improved performance
 Improved performance for drilldown
(expand) and consolidation (collapse)
 Fast drill-through and live view of
transactional data in SAP Business
Suite
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
SAP HANA

Today
Business value for profitability and cost analysis
 Data latencies and processes delays
impact the ability to react to issues
and opportunities
 Lack of data depth and user self-
service affect internal decision
making
 Long-running processes
 Time-intensive data queries
 Mostly manual data analysis
 Substantial amount of time and effort
on processes that do not directly add
value
 Suboptimal resource efficiency and
effectiveness
 Timely execution of critical business
processes supports decision making
and increases the ability to act swiftly
(insight-to-action) in dynamic market
environments
 Critical transactions and calculations
run quickly
 Response times on queries are
instant
 Prebuilt analytics automate the data
analysis process
 Leaner processes from data capture
through data analysis
 Increased productivity through
process-optimized analytics and
mobile support
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
SAP HANA

Today
Business value for financial and managerial reporting
 Risk of noncompliance due to
unfulfilled (overruns in) audits
 A lot of data; decision-relevant
information not readily available
 Data analysis not supported or
automated
 Long-running batch jobs/reports
 Time-intensive data analysis
 Large number of time-consuming,
and non-value-added processes
required to access and provide
accurate, up-to-date information
 Timely execution of compliance-
relevant validation tasks
 Increased end-user satisfaction
(accurate, detailed, visualized, timely,
and actionable information)
 Acceleration of key critical-path
processes and reports
 Instant response time on most data
analysis queries
 Elimination of workarounds and data
latencies
 End-user data analysis through self-
service means
Improve
service level
performance
Reduce
Minimize
month-end
closing time
operating costs
SAP HANA

Delivering Real-Time Business Value for Utilities

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