Herding Cats in the Digital World
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Herding Cats in the Digital World
David DuCharme, Victor Jimenez Mike Swatek
Oracle OpenWorld | 29 September 2014
2 Copyright © 2014 Capgemini. All Rights Reserved
Presenters
David DuCharme, VP NA Utilities, Capgemini David leads the Utility practice in North America for Capgemini. He brings many years of
experience in the energy industry covering a wide range of initiatives including multi-state utility 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 Electric Mike joined PG&E to lead Enterprise Information Architecture in 2012 after developing and
implementing an Information Management and Business Intelligence strategy for Bank of Hawaii that contributed to substantial performance improvements across the bank, helped to minimize the impact of the banking crisis of 2008 to Bank of Hawaii, and contributed to Bank of Hawaii being chosen as the Nation's Best Bank by Forbes Magazine in 2009 and 2010 and number two in 2011.
Victor Jimenez, Energy & Utilities Executive, Capgemini Victor has 20 years of experience in the utility industry. In his current role, Mr. Jimenez leads
Capgemini’s utility analytics and Oracle solutions. Prior to joining Capgemini, Mr. Jimenez held positions as an executive at Oracle and senior technology roles at a utility.
3 Copyright © 2014 Capgemini. All Rights Reserved
Agenda
Digital Utilities Transformation
Challenges
Analytics
PG&E Story
4 Copyright © 2014 Capgemini. All Rights Reserved
Digital Utility Transformation (DUT): The changing digital relationships at two ends of the utility value chain
Customer and External Market
Assets and People Backoffice
Transformation Transformation
Rationalization
= Application Count Across the Value Chain
Companies that embrace digital transformation
financially outperform their peers by 26% - Digital Transformation Study
Conducted by Capgemini and MIT
Enterprise Wide Data Layer
5 Copyright © 2014 Capgemini. All Rights Reserved
Some industries are more mature than others…
Average industry maturity*
* Average maturity of industries for which we received at least 20 survey responses
Telecomm
High Technology
Banking Retail
Travel and hospitality
Consumer Packaged Goods
Pharmaceuticals
Insurance
Utilities
Manufacturing
Telecomm
High Technology
BankingRetail
Travel andhospitality
ConsumerPackaged Goods
Pharmaceuticals
Insurance
Utilities
Manufacturing
DIGIRATI FASHIONISTAS
BEGINNERS CONSERVATIVES
Digital inten
sity
Transforma>on management intensity
6 Copyright © 2014 Capgemini. All Rights Reserved
Every Industry has Digital Leaders
“Utilities are in great majority conservatives"
“There is a great consensus around the transformative
potential of Digital Technologies, although with limited hope for significantly
increasing revenue"
7 Copyright © 2014 Capgemini. All Rights Reserved
Key messages from the Utilities sample
1) Utilities have only started adopting digital technologies in specific areas such as the customer experience. Our European retail benchmark shows that customer satisfaction and optimized channel mix (3 at the most) are necessary for reaching low cost to serve
2) Analytics is not widely used in either customer or operational applications
3) Untapped opportunities may exist in worker enablement and process digitization
4) Data and integration issues may present challenges in other areas
5) Utilities’ digital transformation management practices are relatively more mature than their use of digital technologies
8 Copyright © 2014 Capgemini. All Rights Reserved
Digital transformation opportunities for Energy retailers
Proactive listening to the
market
Digital Processes
Customer Behavior
understanding
Customer Self services
Personalization of services
Correlating competitor rates against churn and monitoring social media
Improve Internal experiences that
enhance customer engagement Analytically led service
Collaborative working with the customer in the
field
Consumption through smart metering and
design specific offerings
Customer
Field Staff
Back Office
9 Copyright © 2014 Capgemini. All Rights Reserved
5 major technology trends drive the digital transformation with composite solutions addressing business opportunities
Collaboration Internet
Appification
BPM
Intelligent devices
BPMS Big data
Cloud
Mobility Composite Digital
Solutions
Customer Experience
Business model
Operational Process
accelerating with you
Analytics
11 Copyright © 2014 Capgemini. All Rights Reserved
Capgemini’s H-model Architecture is fundamental for DUT: Enabling Speed of Digital Innovation
The H-model distinguishes the robust application layer and the agile interaction.
Security Layer
Governance Layer Orchestration & Integration Layer
Application & Data Layer
Channel Service
Personalization & Interaction Layer Insight Layer
Robust Application Layer
Agile Interaction Layer
Indu
stria
lizat
ion
Cos
t red
uctio
n
Spee
d
Valu
e
Systems of Records
Systems of Differentiation
Systems of Innovation
Indu
stria
lizat
ion
Cos
t red
uctio
n
Spee
d
Valu
e Overall
Objectives
12 Copyright © 2014 Capgemini. All Rights Reserved
Oracle Utilities Study – Revisited
Enablers Barriers Cloud
Readiness
Customer Value
1. Meter 2. Outage 3. SCADA 4. Customer
Operational Value Skills
Source: Oracle Study 2013 “Utilities and Big Data: Accelerating the Drive to Value”
Data Required
13 Copyright © 2014 Capgemini. All Rights Reserved
Study Revisited – Where are we now?
Drivers
Use cases and data sources define value proposition of analytics solutions especially when resulting in operational efficiency
Smart Meter programs are a catalyst for change but others have emerged (assets, pricing, customer, cross-functional)
DW Enrichment
Big data does not replace DW but is complementary. Tools
Centers of Excellence and new analytics organizations (business and IT) are emerging
Governance and Change Management has emerged as a key requirement
Big Data Definition has changed for utilities – mostly focused on hadoop implementations and Information Management maturity
Trends Visualization, self-services, Data Lake, predictive, real-time and operational / events
Skill barriers are still there although mitigated by technology: cloud, engineered systems, data models.
Enablers BarriersCloud
Readiness
Customer Value
1. Meter2. Outage3. SCADA4. Customer
Operational ValueSkills
Data Required
Peop
le
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Enablers – Big Data
Big Data Appliance is Engineered for Savings
Big Data SQL
It’s not just about a hadoop implementation
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Enabling DUT (analytics) across the value chain
Customer and External Market
Assets and People Backoffice
Transformation Transformation
Rationalization
Enterprise Wide Data Layer
Generation Electric Gas Customer Procurement Corp Services
How do we solution across all business units? How do we minimize data silos?
How do we fund the enterprise solution?
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How do we proceed?
People and Transformation ! Develop an analytics strategy ! Center of Excellence, analytics organization
Big Data initiatives ! Smart Grid or Smart Meter ! Pilots and POCs
Data warehouse enrichment ! BI technology upgrades to achieve strategic goals ! Rationalize BI technology components
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accelerating with you
PG&E Story
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PG&E Analytics Journey
We’re 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; opinion
drives decisions
But 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 market
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0 1
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The Digital Utility
Data is the life-blood of the Digital Utility
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Analytics Vision
! Develop competency in 3 Core Capabilities for Analytics Success
! Align Roles of Business and IT – IT’s Role: Provide trusted
data and analytics tools to the Business
– Business’ Role: Develop and apply information to high-value decisions and processes
! Establish Analytics Center for Excellence
! Establish Enterprise Information Governance
Enterprise Information Governance
Data
Management & Analytics
Analytics Center for
Excellence
Bus
ines
s
IT
Today Target
Information-driven Culture
Information Factory
Data Management
PROCESS PEOPLE TECHNOLOGY
Ana
lytic
s D
evel
oper
s
Bus
ines
s
IT
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Where 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 Governance
On 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 Copyright © 2014 Capgemini. All Rights Reserved
Contact Information
Dave DuCharme VP NA Utilities Leader [email protected]
Victor Jimenez Utilities Executive [email protected]
Mike Swatek Enterprise Information Architect [email protected]
The information contained in this presentation is proprietary. Copyright © 2014 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With almost 140,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion.
Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organizat ion, Capgemini has developed i ts own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.