City of Kitchener Utilities and Property Tax : A City's Transformation Story

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A collaboration between:

Alex Ahkoon – City of KitchenerPrashant Gupta - Capgemini

Joyce Evans – City of Kitchener

City of Kitchener Utilities and Property Tax : A City’s Transformation Story

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Introductions


Joyce EvansDirector - Revenue City

of Kitchener

Joyce’s career in both Britain and Canada encompasses the public and private sectors, including manufacturing, retail, service, teaching, and municipal government. She is currently the deputy city treasurer/director of revenue for the City of Kitchener, Canada. She has been involved with several systems implementations over her career, the most recent being the implementation of SAP CR&B for utility and tax billing.

Joyce holds a master’s degree in public administration from the University of Western Ontario, a chartered directors (C.Dir) designation from the Directors College. She is a Fellow Certified General Accountant (Canada)/Fellow Chartered Professional Accountant

Prashant GuptaCapgemini

Capability Lead – NA SAP IS-U

Prashant is an experienced IT manager in the Utilities space, focused entirely on SAP CR&B implementations and AMI technology and have worked with Utilities across NA and Europe.

Around 15 years of experience comprising of 9 years of working with SAP for Utilities product suite (SAP CR&B, IS-U) and 4 years of AMI, Meter Data Management System (MDM/R, MDUS) and Electric Vehicles Process integration with SAP applications.

Alex AhkoonManager, SAP Business

Solutions City of Kitchener

Joined the City of Kitchener in 2011 as Manager, ERP Business Transformation to lead the assessment of SAP CR&B as a potential solution to replace the legacy CIS and to develop a Business Case for City Council.

30 years of experience in the IT industry serving both the public and private sector. Ten years as a consultant with extensive interactions with middle and senior client management. Extensive involvement in IT Strategy development, project and project portfolio management, risk management, and ERP implementations.

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• Background and Business Issue

• The Transformation Journey

• Results and Lessons Learned

• Questions?

What we’ll Cover


#SAP4UTL#SAP4UTL | SAP for Utilities 2016 | 5

Background & Business Issue

#SAP4UTL#SAP4UTL | SAP for Utilities 2016 | 6

City of Kitchener Revenue Division - $525 million in annual revenue

Municipal Property Tax – 72,000 accounts

Utilities – 80,500 accounts

The single largest revenue source for the City, representing approximately 67% of total revenues

Property Tax billing requires multiple billing and adjustment of the billing period, which typically is a Tax Year, based on the preliminary assessments, supplementary assessments and adjustments to the assessments

Gas utilities billing based on consumption and unique requirements for Gas Distribution Access Rules (GDAR) regulations

Water utility billing based on consumption Wastewater billed based on water consumption Stormwater charges calculated based on category codes and number of dwelling units Rental water heaters are billed monthly fixed charges based on the type

City of Kitchener : A Place to Call Home

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Business Case : Why SAP?


Robust system for the next 15-20 years Flexible and configurable solution Solid foundation for e-services, mobile computing and core Utility and PTAX functions Continued functional and technical enhancements through regular upgrades Alignment with the City’s corporate technology direction and industry trends Ability to leverage industry best practices Opportunity to capitalize on investment already made in SAP

Selecting the right partner – key differentiator for success Capgemini’s ‘A’ Team - track record of successful

SAP CR&B / Business Objects implementations Accelerated Time to Value and Program Risk

Mitigation Industry Leadership and Track Record

Good degree of fit between the City’s requirements and SAP CR&B’s functionality

Development work to support Property Tax requirements

GDAR requirements for a gas distributor Reports and customer letters development Higher than average historical data conversion

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The Transformation Journey


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The Project Success Reflects Our Team’s Efforts


M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19

M20-30Oct ‘14 Nov Dec Jan

‘15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan ‘16 Feb Mar Apr

Blueprinting 60 full day workshops over 1300 functional

requirements 40 Functional Design

Documents

Realization Build 350 development object 118 BI reports 600 configuration elements Basis and security Data migration

Realization Test 8000 test cases executed during

ITC1, ITC2 and UAT Over 4000 defects resolved

Cutover 5000 individual tasks

Hypercare AMS

Go Live

Capgemini iSAP Methodology Accelerator / UtilityPath

The City team involved 25 full time resources and approximately 40 part-time resources Capgemini onsite team at its peak was 50 resources supported by 70 right-shore resources spread

across 4 cities in India. Delivered over 50,000 pages of documentation Trained the City attendees across 65 training sessions Identified and addressed over 150 business impacts

One Team

One Success

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The solution enables a house for the City’s operations


An end to end solution that bills Utilities and Property Tax customers using SAP CR&B products like: SAP IS-U – Device Management (DM), Financial Information and Contract

Accounting (FICA), Billing/Invoicing and Print workbench SAP CRM for Utilities – customer service and operations SAP MultiChannel Foundation – MCF – self-service portal for customers SAP HANA for Business Objects – Reporting OpenText Integration – archive management Redwood – batch scheduler for SAP batches

Property Tax Solution

OpenText and RedwoodIntegrated,

consistent and robust business platform

Capgemini UtilityPathSAP IS-U & CRM & MCF

SAP HANA for Business Objects

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SAP MCF Enables Self-Service for Utilities and Property Tax


MCF enables customers to view and self-manage their accounts• Billing and invoicing information • Utility and Property Tax bills online delivery• Availability of property tax information such as

assessments, billed amounts, adjustments• Feature to enter meter reads for gas and water• Feature to apply for Stormwater credits

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Property Tax Solution – Robust and Scalable Design - 1


Wherever feasible, use standard SAP IS-U objects, processes, and tools Although fully customized solutions are easiest to “design”, they are the least

maintainable and have the largest TCO from an IT perspective Where customizations are required, look to the Public Sector SAP solution for design

approach/guidance

Develop a solution that addresses the 225 Property Tax business requirements as provided by the City.

Develop a solution who’s ease-of-use meets or exceeds the City’s expectations

Complex Business Requirements

Use of Standard SAP ISU

Develop a design that is flexible enough to be marketed and deployed at other multi-service municipalities

Commercialization of CO-IP generated from this area of the project and sharing of revenue.

Develop a re-usable solution

Align the City’s business processes across Utilities with Property Tax Use the same general SAP modules and functions across Utilities and Property TaxAlignment across COK

Services

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Property Tax Solution – Robust and Scalable Design - 2


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Stormwater Utility Billing


Solution Highlights Stormwater has historically been funded through property tax• Based on assessed value of property, not amount of runoff going to

stormwater system• Inconsistent funding source – compete for municipal budget $

Municipalities across North America are moving towards a fee-based funding model to achieve greater fairness and equity

Largely customized solution; integrates with most aspects of CR&B solution• Based on amount of run-off generated… impervious area measurement or

estimation from GIS• Allocate costs to property owners in a fair and equitable manner• Stormwater rate credits available to reward environmental stewardship• Dedicated funding source for stormwater infrastructure maintenance

Aligned with the City’s business processes across Utilities

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Capgemini’s UtilityPath – Certified/Pre-configured SAP Solution


What is Utility Path?UtilityPath is Capgemini’s SAP-certified ERP solution to enable Utility companies to streamline operations, providing greater visibility and control of core business processes.

How was UtilityPath developed?The UtilityPath solution was built over the last six years, based on leading practices and processes we’ve refined during multiple implementations with Utilities. During each implementation, we’ve improved the solution by adding additional functionality (Capgemini IP)

SAP Generic Products(Suite on HANA, BI, CRM, IS-U)

Industry Specific Layer (Capgemini IP)

Ad-hoc reports and analytics Mobility features Industry-specific transactions Improved user interface (Fiori)

Technology ManagementIntegration, data conversion, AM, IM, Security, Reports

+

+

Pre-integrated Pre-configured Speed to value

Client Specific

Core SAP Functionality

UtilityPath Client Specific

Core SAP Functionality

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UtilityPath – Accelerated Approach to SAP Implementation


Numbers in the bracket represent the number of artifacts within UtilityPath.

The deliverables represent a portion of key project deliverables.

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Results and Lessons Learnt


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Key Lessons learnt


• Blueprinting• Identify all stakeholders – balance this with keeping the approval process lean• Challenging for Business to visualize to-be SAP process without a live system - balance the need to

see a live prototype against the project constraints

• Business Readiness - Impact of new processes on Business not entirely clear until after Go-Live• Engage the right stakeholders; Have the right resources at the right time• Identify impacts early and refine them continually

• Development of Test Cases – how do you remove the timeline constraints when the same team is expected to do multiple things at the same time• Development of Test Cases must be a joint activity

• BI Reports - BI Reports Team engaged too early before solution design finalized• Engage the right stakeholders; Have the right resources at the right time• Rationalize the reporting requirement ; rethink a big bang go-live

• Project Team SAP Training• Time spent by the SI explaining standard SAP business process• Train your project team (Business and IT) ahead of implementation project

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Results and Success Factors


Key differentiator for success is the right partner that ensures maximum collaboration.

Innovation is the core of large endeavors constrained by budget and timeline.

SAP certified solutions such as UtilityPath are scalable, integrated, and comprehensive.

Success FactorsResults

Alignment to Strategic Corporate directions for Financial Management, Information Technology, and Customer Service.

Long term solution providing a robust platform for the next 15 to 20 years that will enable the City to accurately and reliably bill and manage over $520 million in annual revenue, and offers a solid foundation for key enhancements such as on-line customer access, mobile computing, and smart meters.

Best-practices approach and capitalize on investment already made in SAP.

Questions?

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Joyce Evans, City of KitchenerEmail: [email protected]

Prashant Gupta, CapgeminiEmail: [email protected]: @guptaprashant1

How to Contact Us


Alex Ahkoon, City of KitchenerEmail: [email protected]

Appendix 1 – UtilityPath solution – What does it contain?

Speed to value Cost certainty

UtilityPath for the Utility Sector

Overall cost reductions Platform for Growth

Value Platform

Solution Platform

Plug and play Pre-configured

Enriched with accelerators Integration tested

Structuring of Assets Corrective Maintenance Preventive Maintenance Refurbishments Environment, Health and Safety Multi resource scheduling Integration with Digital Asset

Life Cycle management (DiLAM)

Maintain-to-Settle

General Ledger Account receivables Account payables Asset Accounting Project Accounting Controlling Pipeline Industry Extension

FERC regulated capital project accounting

Finance-to-Manage

Customer service processes Customer acquisition Contract management Service Order processing Inter-company sales Multi Channel Foundation Integration with Odigo, digital

customer experience

Customer Service

Procurement of materials Procurement of services Contracts and agreements Ariba integration Inventory Management Warehouse Management with

mobility integration

Procure-to-Pay

Regulated and De-Regulated scenarios

Customer Contracts Device Management Work Order management Billing & Invoicing Sub Ledger accounting Dunning & Collections Smart Metering and HAN

integration

Meter-to-Cash

Technology Management

Licensing Hosting Implementation Application Management

Technical Command Center© to support Data conversion and Integration

NWBC GUI- Security roles and Power Lists

Workflows and Enhancements Print workbench Simplification using FIORI applications

Business Warehouse and dashboards Mobility SAP PI integration

Infrastructure Platforms

Amazon Web Services Private Cloud Classic database platforms

SAP Digital Core with S/4HANA

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Appendix 2 - Solution Overview


City of Kitchener Utilities and Property Tax : A City's Transformation Story

Technology

Transcript of City of Kitchener Utilities and Property Tax : A City's Transformation Story