The Digital UtilityHenry Bailey

Global Vice President, Utilities Industry Business Unit

October 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3

The global population will grow to over

9 billion people

by 2050.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4

The middle

class will grow

to 3.8 billion

people

by 2025.

The global population will grow to over

9 billion people

by 2050.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5

2 out of 3

people will

live in cities

by 2050.

The middle

class will grow

to 3.8 billion

people

by 2025.

The global population will grow to over

9 billion people

by 2050.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6

Source: Shell energy scenarios 2050, 2015

Utilities should be entering the golden age.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7

Source: Shell energy scenarios 2050, 2015

By 2050, wind, solar, and water will provide 50% of electricity.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8

Strong forces challenge the century-old business model.

Source: Shell energy scenarios 2050, 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9

mDecarbonization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10

Decarbonization

Deregulation

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11

Decentralization

Decarbonization

Deregulation

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12

Digitization

Decarbonization

Deregulation

Decentralization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13

Hyper-connectivity

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14

Hyper-connectivity

Super-computing

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15

Hyper-connectivity

Super-computing

Cloudcomputing

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16

Hyper-connectivity

Super-computing

Cloudcomputing

Smarterworld

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17

Hyper-connectivity

Super-computing

Cloudcomputing

Smarterworld

Cyber-security

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18

SAP envisionsthe digital energy network

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19

Reevaluate

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20

Reevaluate

Assets

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21

Assets

Relationships

Reevaluate

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22

Assets

Relationships

Digital capabilities

Reevaluate

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23

Source: Shell energy scenarios 2050, 2015

Reimagine

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 24

Source: Shell energy scenarios 2050, 2015

Energy generation

Smart and efficient operations

Omnichannel retail

Reimagine

Business models

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25

Source: Shell energy scenarios 2050, 2015

Energy generation

Smart and efficient operations

Omnichannel retail

Smart asset operations and maintenance

Storage and flexibility services

Meter point operations

Reimagine

Business models

Business processes

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 26

Source: Shell energy scenarios 2050, 2015

Energy generation

Smart and efficient operations

Omnichannel retail

Digital business processes

Predictive and self-learning

Interactive technologies

Smart asset operations and maintenance

Storage and flexibility services

Meter point operations

Reimagine

Business models

Business processes

Work

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27

Consumer gets a high energy bill and calls customer service

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28

Collect and compare consumption data in real time

Consumer gets a high energy bill and calls customer service

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 29

Benchmark consumption

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 30

Benchmark consumption

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

Offer smart home products and services

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 31

Benchmark consumption

Offer smart home products and services

Partner installs smarter home solution

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 32

Benchmark consumption

Partner installs smarter home solution

Prosumer runs smart home

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

Offer smart home products and services

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 33

Benchmark consumption

Prosumer runs smart home

Partner installs smarter home solution

Provide multi-channel service

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

Offer smart home products and services

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 34

Benchmark consumption

Prosumer runs smart home

Provide multi-channel service

Provide anintegrated bill

Partner installs smarter home solution

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

Offer smart home products and services

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 35

Benchmark consumption

Prosumer runs smart home

Provide multi-channel service

Provide an integrated bill

Partner installs smarter home solution

Leverage insight to sell more

Consumer gets a high energy bill and calls customer service

Collect and compare consumption data in real time

Offer smart home products and services

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 36

Higher customer satisfaction

Faster response for potential high-bill

scenarios

Higher profits with smarter services

New revenue streams

Competitive service-level agreements

for smart homes

Collaboration as an energy provider

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 37

Source: Shell energy scenarios 2050, 2015

Workforce Engagement

Digital Core

Supplier collaborationBusiness networks

Assets and the Internet of Things

SAP HANA Cloud Platform

Customer experienceOmnichannel

SAP HANA Platform

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 38

Source: Shell energy scenarios 2050, 2015

World-class utilities trust SAP.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 39

Get started

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 40

Get started 1 Strategy alignment

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 41

Get started 1 Strategy alignment

2 Opportunity assessment

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 42

Get started 1 Strategy alignment

2 Opportunity assessment

3 Solution road map and ROI

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 43

Get started 1 Strategy alignment

2 Opportunity assessment

3 Solution road map and ROI

4 Value realization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 44

Governance

Get started 1 Strategy alignment

2 Opportunity assessment

3 Solution road map and ROI

4 Value realization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 45

Source: Shell energy scenarios 2050, 2015

Click here

To learn more about

Digital Transformation for Utilities