Smart EnergyServices Platform

Buy or Build? Save 60% on your Smart Meter Solution

Now that the commitment for an AMI solution has been made, what are the challenges that you will face in obtaining a cost effective, working solution?

The key questions are:• Doyouwanttosave60%ofyourITBudgetallocatedfor

yourSmartMeterprojectsoverthenext10years?• Howdoyoubenefitfromestablishedbestpracticesand

efficienciesinyournewSmartMeterenvironment?• Howcanthoseefficienciesbepassedontoyourdelivery

andsustainmentorganisationstofosterhighlevelsofcustomersatisfaction?

• HowcanyouensurethatyournewSmartMeterenvironmentoffersoptimumshareholdervalueintheshortestpossibletime?

• Whyre-inventthewheel,incurringlargeinvestmentcosts,enduringfailuresandalengthylearningprocesswhenasolutionalreadyexiststhatcandeliverwhatyouneednowwithdecreasedriskandatlowcost?

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IN-houSe SoluTIoN BuIld ANd operATIoN verSuS CApgeMINI SeS plATforM ToTAl CoST

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IN-HOUSE SOLUTION SES PLATFORM0

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ThelevelofexpenditureonITtosupportSmartMetersbyanyorganisationusingadesign,buildandrunbespokeITsolutionwillbeconsiderableandtheresultsunpredictable.Thealternativeistousean‘outofthebox’solution.Thesearealreadysuccessfullyproveninotherindustrysectors,deliveringimmediateresultsatapredictablepriceandquality.ItthereforemakescommercialsensefororganisationswithSmartMeterprojectstolooktothesesectorstounderstandhowan‘outofthebox’andcommerciallyreadysolutioncanbenefitthem.

Why Buy rather than Build? A Comparison:

Fig.1showsthecostsinvolvedinatypicalbespokein-housebuild-and-operatesolutionversusanoutoftheboxsolutionsuchasourSmartEnergy/WaterServicesPlatform.Thesearethebuildandruncostsonlybutthereareotherconsiderationsthatwilldrivefurthersavingsandconsistentcustomersatisfaction,frombothinternalandexternalsystemusers.

• Cost Control —Oneofthekeyadvantagesofselectinganoutoftheboxsolutioniscostpredictability.Licencepricing,hardwareinvestmentsandruncostscanallbefixed.Mostin-housesolutionsbringwiththemhiddencostsasITdepartmentsoftenlacktheskillsandbusinessunderstandingrequiredtoenableprojectefficiencyandsuccess.Thereisariskthatthiscanleadtoover-engineering(andthereforehighercosts)orworse,anunderestimationofthesolutionrequirements.

• Maximise Delivery —Thesolutionneedstobeoperationalintheshortestpossibletimeframetomaximizeshareholdervaluequickly.Buildingandoperatinganin-housesolutioncanbeanextremelylengthyprocessrunningintomonthsofbuilding,rebuildingandtestingwhereasanoutoftheboxsolutioncanbetestedandoperationalinweeks.

• Time to Market—Anoutoftheboxsolutioneradicatesissuesinherentintypicalsolutionbuildprojects.Theplanning,design,developmentandtestingphaseshavealreadybeenperformed.Thefocuscanthenbeonthebusinessprocessrequirementsandtrainingratherthantryingtomeetprojectcodingandtestingdeadlines.Atypicalin-housebuildtakes18monthswithanoutoftheboxsolutionavailableforusewithin10weeks.

• Proven track record —Whyjeopardiseyoursolution’ssuccess?Fledglingin-housesolutionscanbesubjecttooperationalandprocessissuesastheyoperateintheirinfancy.Usinganoutoftheboxsolutionwillgiveaccesstotriedandtestedbestpracticesandprocessesoftendevelopedfromglobalexperiences.Therefore,insteadofre-inventingthewheelyoustartoffwithasystemthatputsyouonaparwithcompetitors,allowingyoutofocusonyourcorecompetenciesthatyouwillbeabletoemploytofulfilyourobjectives.

• Future Proof—Oncetheinitialinvestmenthasbeenmade,itisimportanttomaintainthefuturevalidityofthatinvestment.Whenbuyinganoutoftheboxsolution,regularsystemupgradesareincluded.Thismeansthatthecustomerbenefitsfromperiodicsystemenhancementsandnewandimprovedfunctionality–oftenbasedonmarkettrendsandanamalgamationofcustomerrequirements.

TheCapgeminioutoftheboxsolutionthatallowsorganisationstoquicklyrealizeanROIand60%costsavingsoverastandardin-housebuildforan‘AMI’systemistheCapgeminiSmartEnergyServicesPlatform.

What is the Capgemini Smart Energy Services Platform?

TheSmartEnergyServicesPlatform(SESPlatform)isanoutoftheboxsolutionthathasbeenonthemarketsince2002andistheculminationof10yearsofexperience.Oursolutionsupportseverythingfromsmartdevicerollouttothesupervisionandtroubleshootingofsmartdevicesandinfrastructureafterthedeviceshavebecomeoperational.ItwasfirstdevelopedfortheSwedishmarketwheregovernmentallegislationmadeitarequirementforallmeterstoberemotelyreadbytheendof2009,butisnowsuccessfullydeployedandleveragedglobally.

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60% cost savings over a standard solution

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SES Platform Overview:WhatcantheSESPlatformgiveyouthatanin-housesolutioncan’t?

• Pricing based on usage—SESPlatformisdividedintomodulesandfunctions.Youareabletochoosewhichmodulesandfunctionsarerelevantandeffectively‘switchoff’elementsofthesystemthatarenotrequired.Thisuniqueapproachcreatesamorefocussedandefficientmodelanditmeansthatyouwillonlypayforwhatyouneed.

• Experience—SESPlatformisreal-worldprovenandhighlystable.Itisbasedonbestpracticeswhichhavebeendevelopedandevolvedthroughourexperienceindeliveringoursolutionsince2002.(TheevolutionofSESPlatformhasbeenstrategicanddisciplined–versionmanagementisrigoroustoensureglobalsupportandcompatibility.)

• Standard Processes—SESPlatformincludesstandardprocessesthatcanbeeasilyenhancedandadaptedtoyourspecificrequirementsandprocessmethodology.PostdeploymentalterationstothesystemcanbeeffectedwithminimaleffortandnoimpacttothecoreoperationofSESPlatform.

• Accelerated development & customisation—Inadditiontostandardfunctionality,youcanmakeuseofacustomer-specificlayerthatincludesfunctionalitydesignedtoaccommodatetheintricaciesofyourbusiness.Standarddevelopmentandtestinghavealreadybeenperformed.Bespokecustomisationcanbecarriedoutinafractionofthetimeitwouldtaketobuildanin-housesolutionandwithoutaffectingthecoreapplication.

• Time to market—SESPlatformcanbeimplementedintoyourbusinessandoperationalwithinacoupleofweeks.Acomparablein-housesolutionwouldnotbeoperationalforatleast18months.

• Regular releases—SESPlatformprovidesupdatesofnewstandardfunctionalityincludedinthebaseSaaSprice.TheSESPlatformRoadmapsetsoutaplanfortherelease

offuturefunctionsandfeatures,andisinfluencedbyboththeindustryandtherequirementsoftheSESPlatformusercommunity.

• Standard Interfaces—TheSESPlatformhasanopenarchitectureandwillintegratewithanymeter,head-end,masterdatamanagementsystemandanyERP(incl.SAPandORACLE).SESPlatformincludesanumberofindustryaccepted,pre-definedstandardinterfaceswhichmakeiteasytobecomecompatibleandtocommunicatewithexternalsystems,forexampleAMRsystems,metermanufacturers,billingsystems,etc.

• Web Reports and Dashboards—TheSESPlatformincorporatesafrontendwebclientwhichprovidesasuiteofanalyticalreportsanddashboardstofacilitateeasymanagementofyourmeterenvironment.Thewebclient’sinterfacecanbeusedtoaccessworkorderprogresswithmapviews,alertmanagement,performancemanagement,stockmanagementandmeterloadprofiles.Thesearehighlyconfigurableandaccessiblefromanyinternetpointthroughsecureaccess.

Business Case: ‘In-House’ Build & Run Solution versus ‘SES Platform’

Thefollowingisashortcomparisonwhichmayprovidesomeinsightintosomeofthekeydifferencesbetweenanin-housebuildandrunsolutioncomparedtousingtheSESPlatform.

Forthiscomparisonwehaveusedasystemmodelbasedon100,000metersoperatingover5years.

ThiscomparisondemonstratesthataSESPlatformsolutioncomprisingofthreesimplecoststreamsatatotalcostof€1.6m,issignificantlymorecosteffectivethananin-housesolutionatatotalcostof€4.1m.Thisequatestoa60%savingwhilstsimultaneouslymassivelyreducingyouroperationalleadtimeandrisk.TheSESPlatformprovidesasimpler,nimblerandmorecostefficientwayofsupportingyourSmartdeviceenvironment.

IN-HOUSE SOLUTION BUILD & OPERATE SES PLATFORMPHASE

Phase 1 —Initial Investment

Set-Up

Rollout

Operations

Purchaseofequipmentandformationofthesolutionmodelprocess.

Hardware&softwareinvestment,networkinvestment,projectmanagement,commercial&procurement,design&engineering.

2months 10days

10weeks

59months

€500k €195k

€225k

€1.2m

€1.6m

€600k

€3m

€4.1m

18months

42months

5 years 5 yearsTOTAL:

Applicationdesign,developers,testing&release.

Systemsupport,hosting,hardward&softwaremaintenance.

Planning,designinganddevelopingthesolutionandsubsequentbuildingandtesting.

Runningthesystemfrombuildcompletiontotheendofthefiveyearterm.

Phase 2 — Design& Development

Phase 3 — Operation

TOTAL:

PROCESS EXPENDITURE DURATION COST PHASEDURATIONCOST

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IN-houSe BuIld & ruN SoluTIoN vS. CApgeMINI SeS plATforM

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TOTAL IN-HOUSE SOLUTION COST

Operation

Design & Development

Initial Investment

TOTAL SES PLATFORM COST

Operations

Rollout

Set-up

Smart energy Services platform solution is available for use within 10 weeks, vs. 18 months for a typical in-house solution

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Cost Over Time

Figure3showsthetotalcostofeachsolutionoverthe5yearperiodandhighlightstheoperationstartdatesforboththein-housesolutionandtheSESPlatform.

Summary

Insummary,itisoverwhelminglyclearthatanoutoftheboxITsolutionforyourAMIrequirementsoffersfarmorebenefitsthanoptingfora‘buildandrun’solution.InparticulartheCapgeminiSmartEnergyServicesPlatformoffers:

• Huge cost savings;SESPlatformcostsapproximately60%lessthananequivalent’In-House’buildandrunproject.

• Massively reduced lead time;SESPlatformcanbeoperationalwithinweekswhereasan’In-House’buildandrunprojectislikelytoneed18monthsminimumtobeoperational.

• Increased stability;SESPlatformisamaturesystemwithaproventrackrecord.

• More robust support;SESPlatformissupportedbyahighlyexperiencedteamwhoareskilledatrectifyingissuesandprovidinggeneralsupportandfuturesolutionenhancements.

• Greatly reduced organizational risk;withSESPlatformoverallplanningisgreatlyreduced,thereisnoneedtoorganizeabuildandrunteam.

• Greatly increased customer satisfaction—SESPlatformallowsyoutofocusontheprocessesandcommitmentsmadetoyourcustomersratherthanonfixingITsystems.

• Area for new services—SESPlatformprovidesnewservicestocustomerswithalertmanagementbuilt-insystem.

• Decreased complexity—SESPlatformislesscomplexincomparisonwithSAP/Oraclesystemsthatrequiremultiplemodulestobeintegratedtogether.

• Secure massive roll-out and data consistency—usingtheSESPlatformtodeploymetershelpstosecuretheroll-outthroughourprovenprocessesandtoguaranteefulldataconsistencywhenoperatingthem.

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SeS plATforM vS. A TypICAl ‘IN-houSe’ BuIld & ruN SoluTIoN

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Contact: skvader@capgemini.com

About CapgeminiWithmorethan125,000peoplein44countries,Capgeminiisoneoftheworld’sforemostprovidersofconsulting,technologyandoutsourcingservices.TheGroupreported2012globalrevenuesofEUR10.3billion.Togetherwithitsclients,Capgeminicreatesanddeliversbusinessandtechnologysolutionsthatfittheirneedsanddrivetheresultstheywant.Adeeplymulticulturalorganization,Capgeminihasdevelopeditsownwayofworking,theCollaborativeBusinessExperienceTM,anddrawsonRightshore®,itsworldwidedeliverymodel.

Capgemini’sGlobal Utilities SectorservesthetopUtilitiesworldwideanddrawsonanetworkofmorethan8,900dedicatedsectorconsultants.Asaleaderinsmartgridandadvancedmeteringinfrastructuresolutions,Capgemini’sSmart Energy Services ishelpingUtilitycustomersthroughouttheworld.OurintegratedDigital Utilities Transformationframeworkempowersutilitiestodrasticallyimprovetheircustomerexperience,operatingandbusinessmodelsthroughdisruptivetechnologies.

More on industry specific solutions is available at www.capgemini.com/utilities.

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www.capgemini.comwww.capgemini.com/utilitiesThe information contained in this document is proprietary. ©2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.

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