analyst briefing session 1 the challenge of deploying the infrastructure

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A Smart way to connect the dots

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Page 1: Analyst briefing session 1   the challenge of deploying the infrastructure

A Smart way to connect the dots

Page 2: Analyst briefing session 1   the challenge of deploying the infrastructure

No. 2 © Logica 2011. All rights reserved

Agenda DAY 1: 5 July 2012, Kings Place, London

Session 1: Deploying the Smart Metering Infrastructure

1400-1410 Chair’s Address and Welcome Nigel Spooner, Logica

1410-1440 Supply Chain and Logistics Andy Cooper, Logica

1440-1520 Optimising Asset and Field Force resources

Paul O'Connor, Logica

1520-1610 Beyond deployment – sustaining consumer engagement

Tommy Olsson, Logica

1610-1630 Networking Break

Page 3: Analyst briefing session 1   the challenge of deploying the infrastructure

The Smart Meter Supply Chain

July 2012 Andy Cooper Supply Chain Consulting

Page 4: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

“The roll out of smart meters not only provides great

opportunities for customers and utility companies alike, it also

presents a subtle yet huge logistics challenge. Changing and

registering the gas and electric meters in every building in the

country is perhaps the biggest logistics challenge to hit utilities

since the countrywide conversion to natural gas in the late ‘60s.

This work will run for several years and impact every family and

business in the UK, how many other logistics operations can

claim similar?”

Start off with a Quote...

Rob Morton Supply Chain Director British Gas

Page 5: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Logistics is not core business:

the supply chain challenges are not huge

• Many information flows:

the stakeholders are numerous

• Temporary peak, then lower than current BAU:

the demand will peak and then fall away

• Risk of stockouts are high:

high demand, new supply.

What does this mean for Utilities

Page 6: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Logica’s Supply Chain Acceleration:

leveraging our cross industry supply chain domain

expertise for the benefits of our utilities clients

What are we doing…?

Raw material produce

r

Supplier

Manufacturer / Assembler

Distributor

Distributor

Retail

Retail

Consumer

Transport

End to End supply chain management

Supplier

Management Transport

Manufacturin

g Warehousing

Page 7: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• One major first mover:

looking to leverage an excellent supply chain as a competitive

advantage

• Others starting to get active:

Ultimately supply chain is hygiene factor

.

What are we seeing...?

• Pooling for reverse logistics: one 3PL to cover all?

Reverse logistics a bigger challenge than

outbound?

Cost of reverse logistics greater than intrinsic

value of returned dumb meter

Page 8: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Secure your supply – eliminate single points of

failure

Closing Remarks

Just because you have the contract doesn’t mean you have the supply

Page 9: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Questions?

Page 10: Analyst briefing session 1   the challenge of deploying the infrastructure

Getting Smart! Smart Utilities: Optimising Asset and Field Force Resources

Paul O’Connor | SAP Practice

Page 11: Analyst briefing session 1   the challenge of deploying the infrastructure

No. 11 © Logica 2012. All rights reserved

• Quick Introduction

• Customer considerations

• Data Model

• EAM and Mobility

• Methodology

• Quick Demo

Agenda

Page 12: Analyst briefing session 1   the challenge of deploying the infrastructure

No. 12 © Logica 2012. All rights reserved

•Interfaces / Industry standards and flows

•Legacy systems

•Vendor Management

•Skills and Resourcing

•SI experience

•Timelines to implement

Data, Data, Data

Customer considerations

Page 13: Analyst briefing session 1   the challenge of deploying the infrastructure

Example Data Model

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© Logica 2012. All rights reserved

Data model in SAP ISU

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© Logica 2012. All rights reserved

Early view of the possible data model (To-BE)

Page 16: Analyst briefing session 1   the challenge of deploying the infrastructure

EAM and Mobility

Page 17: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Example components of EAM related to a Smart Rollout • Gas and Electricity Asset Management

• Work Management

• Field Force Management

• Document Management – can exploit native SAP DMS for Assets, vendors, materials etc

Overview of EAM – with reference to mobility

Work Management

Asset Management

Field Force Systems

Document Management

Together on critical path

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© Logica 2012. All rights reserved

Why use a Mobile Enterprise Application Platform

Page 19: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Potential mobility environment needs

Customers Internal Field Force

External Field Force

Management information

Meters

Sybase Mobile Enterprise Application Platform with Afaria

Back End SAP systems

Page 20: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Where Sybase Unwired Platform fits in

• A single standard mobility solution which fits in the enterprise architecture

• Scalable with failover tolerance

• End to end security solution for servers, data transportation, and any mobile device

• Provides flexibility in choosing handheld devices

• Can be used as mobility enabler for subsequent processes. The blueprint provides a high degree of reuse.

• Afaria provides remote application, configuration, document & device management capabilities

• Provides connectors for improved integration with SAP & other applications

• Ease of use and support

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© Logica 2012. All rights reserved

Risk Mitigation

• Logica Mobile framework for Sybase MEAP

• 1 application 3 months design then 3 month build

• Following apps (5) – 3 months

Who else is benefitting from this?

Page 22: Analyst briefing session 1   the challenge of deploying the infrastructure

Methodology

Page 23: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Overview of Agile Business Add-on to ASAP

Project Preparation

Blueprint Realization

Process Compositio

n

Service Modeling

Service Implementatio

n and Test

UI Development

2-to-4 wks

cycle

Final Preparation

Go Live Support

Run

Determined project scope Prioritised delta list &

release planning

© SAP AG 2009. All rights reserved.

Sprint backlog / revised

/ prioritised project

backlog

Work product release

Work product

increment

Process based

composite application

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© Logica 2012. All rights reserved

Sprint Elements - Activities during each sprintint

1.Sprint Planning

2.Daily Scrum

3.Sprint 4.SPRINT

Demo

5.Sprint Review

Page 25: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Letting the clients talk for themselves

http://ws3.global.logica.com/sites/021029/003%20Proposals/03%20EDF/06%20Smart%20Release%203/ITT%20JULY%202012/Reference%20Material/Anglian%20Water/Application_demo.wmv

Page 26: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Logica Plc | EDF Energy West Burton Bronze Award for quality of project delivery

"We are very pleased with the way that our CCGT team, our EDF Energy IT colleagues and our key-partner Logica have brought together the industry-expertise, business process know-how and IT-delivery leadership to help us realise our ambitious vision. Together we are proud to have successfully delivered a SAP EAM system to time and budget that: underpins our best practice risk-based asset management approach, allows us to benchmark and optimise our plant’s reliability to deliver optimal performance for EDF Energy and accelerates our journey to key external accreditations including ISO9000 and ISO14000 and PAS55."

Darren Ramshaw, Head of Generation, EDF Energy West Burton CCGT.

Page 27: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

•Integrated asset management, field force and mobile strategy will materially improve costs and customer experience

•Deliver an SAP EAM system to time and budget that underpins a best practice risk-based asset management approach

•Managing a complex eco-system of suppliers is key to ensuring aggressive timelines can be maintained

Key takeaways

Page 28: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Maintaining the dialogue...

Logica is a business and technology service company, employing 39,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com. The company is a public company incorporated and domiciled in the UK. The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

Paul O’Connor SAP Practice M: +44 7826 904 120 E: [email protected] T: @PaulOCo27483013

Page 29: Analyst briefing session 1   the challenge of deploying the infrastructure

Getting Smart! Smart Utilities: Beyond deployment: sustaining consumer engagement

Tommy Olsson| Practice Leader | Smart Utilities

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© Logica 2012. All rights reserved

Logica is a member and part-owner of SUST in Sweden

Page 31: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

From OMT to EMT – the journey

Winner of European utility awards

“ A very promising practical step towards

widespread consumption

feedbackbased demand response and the creation of a more energy conscious

society”

2007

Swedish utilities makes break

through in customer interaction

New energy services create new business

possibilities for utilities with smart meters. 250 000 metering

points from 5 utilities.

2008-2012

Swedish utilities collaborate

A joint innovation project starts, aiming for the

future of energy management for

utilities and more.

Smart consumers Smart phone apps for EMT, create new business

possibilities and integrates

consumers into the smart grid.

2011 2011-2012 2012

EMT for future utilities

EMT is the next step of OMT, aiming for the

European market of

smart utilities

Page 32: Analyst briefing session 1   the challenge of deploying the infrastructure

Engaging Consumers: Learning from Experience in Växjö

Page 33: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Växjö and SESAC

• SESAC: Sustainable Energy Systems in Advanced Cities

• Project within the Concerto initiative, co-funded by the European Commission

• Objective of demonstrating how local economies can thrive whilst emitting lower CO2

• Involves three cities undertaking demonstration projects

• Delft, Netherlands

• Grenoble, France

• Växjö, Sweden

• Concerto Initiative

• Europe wide initiative

• Addressing Challenges of creating a sustainable future for Europe’s energy needs

• Focus on working with clearly defines local communities, primarily in demonstrating integration of:

• Renewable energy sources

• Energy Efficiency techniques, and

• Community level sustainable energy management systems

Page 34: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Växjö named as ‘The Greenest City in Europe’ by BBC in

2007

• Objective is to reduce the aggregate energy use across Växjö by 5%

• c22,000 home have smart meters

• Role of Gamification

• Individual Competitions

• Four competitions run

• 77 people participated

• Top 5 in each competition varied from 79% to 50%

• Team Competitions

• One competition run

• Teams of 10-15

• Each team had a leader to coach them

• Team competitions had more enthusiasm from those participating

Växjö and SESAC

Page 35: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Activities

• Making people feel a part of something

• Active promotion ahead of the programme start

• Using Vaxjö’s ‘Greenest City in Europe’ accolade to create a sense of purpose

• Putting people in control

• Creation of SAMS to disseminate information

• Broad stakeholder group (Vaxjo Energi AB, Hyresbostader I Vaxjo AB, Vaxjohem AB, Vaxjo Kommun (Municipality of Vaxjo)

• Providing the tools (EnergiKollen)

• Awareness campaigns

• Engage people in easier activities

• Quizzes on SAMS.SE

• EnergiKollen competitions

• Engage people to make a change in behaviour

• Feedback of results of changed behaviour

• Engage media in results of EnergiKollen competitions

Creating Engagement

Source: How to Create Energy Efficient Behaviour in a City such as Vaxjo

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© Logica 2012. All rights reserved

Creating Engagement: Making it Interesting and Rewarding

Engaging consumers in a new

and interesting ways by

pervasive gaming.

Creates discussion which makes

the consumers more aware and

creates motivation to take

control of their consumption

patterns

Page 37: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Page 38: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Engagement, awareness, sustained improvement

Smart meter information, accessability, competition

Knowledge

Perspective

Altruism

Informing action – the energy efficiency portal

Individual

Community

Environment

Page 39: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Total result for Växjö

2008 2009 2010

Apartments Total (N=108) 1.87% -2.30% -1.40%

Apartments that did not visit the web-site (N=85) 2.15% -1.90% -1.29

Apartments that visited the web-site (N=18) -11.20% -16.70% -17.50%

Houses Total (N=391) -0.79% -4.31% -3.40%

Houses that did not visit the web-site (N=241) -0.25% -2.65% -0.83%

Houses the visited the web-site (N=140) -1.20% -9.40% -11.90%

Page 40: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Results team competition (one week)

1. Växjöhem 47,4%

2. Veab 46,8%

3. Hyresbostäder 34,4%

4. Växjö Kommun 31,1%

5. Växjö Politiker 19,9%

The members of the Växjö project (SAMS) competed against each other. Every team consisted of 10-15 employee from the companies. And also a team of politicans participated. The team result is the average savings for each team.

Team competitions in EnergiKollen

Source: How to Create Energy Efficient Behaviour in a City such as Vaxjo

Page 41: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Advocacy by multiple parties provides necessary holistic view

• An on-line tool is required to keep people interested

• Challenge is getting people to log on – marketing

• Once they have, they sustain interest

• EnergiKollen created a platform to sustain dialogue with consumers

• Positive reactions to competitions and would like to continue

• But compete against local communities – neighbours and friends

• Team competitions more popular than individual competitions

• Continuous flow of marketing / information required

• But ensure that it’s not perceived as another ‘energy saving’ campaign

• Advertising alone isn’t enough

• Active engagement is important – face-to-face

• When activity stops – savings decline

Key conclusions

Source: How to Create Energy Efficient Behaviour in a City such as Vaxjo

Page 42: Analyst briefing session 1   the challenge of deploying the infrastructure

Skolstaden - the sustainable school campus

Page 43: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• The project aims to improve energy efficiency at the school camp Skolstaden

• 3,500 students and staff is involved in the comprehensive project in order to stimulate involvement and increase knowledge

• Students and teachers are involved throughout the project and are encouraged to bring their own ideas and get involved in the environmental work.

• Technical efficiency measures are implemented in the buildings on the campus and the staff have formed a Sustainability Council to carry out various sustainability issues and take forward.

• The project is planned to be a model for how municipal energy efficiency work can be conducted in schools.

Skolstaden | Sustainable School Campus

Page 44: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Skolstaden visualisation (demo version)

Page 45: Analyst briefing session 1   the challenge of deploying the infrastructure

Energy in mind

Page 46: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• The study aims to see what kind of information that works best for saving energy at home

• We also want to see how important energy information is compared to the interest in energy issues as such

• Economics is an incentive, but to "do the right thing environmentally" is another

Energy in mind study | Building on our experience of portals

Page 47: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Information technologies tested

• Simple display

• ”Solo”-display

• Public/Collective display

• SMS

• Web

• TV-solution

• Mail

• IMD (Individual metering and bill)

• VV-display (warm tap water)

Page 48: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

• Most successful reduction with the web solution Energikollen and the simple display

• Display was the most popular solution in the survey result

• User of Energikollen have reduced the energy consumption with 10-20 % and the user of the simple display with 14 %

• The return of investment is 2 years for both solutions

• The parameters income, energy use and response rate follows the same pattern for all project teams. High income means high energy consumption and also high response rate, and vice versa

• The biggest challenge is to reach those who do not use the web solution and to get them to log on

• And to give information about how it works an create a trust for the solution of the users of the simple display

• Collective visualisation via display in stairways (cheap solution) was not an success

• The same goes for TV-solution (50 % accessed the system but no change in behaviour)

Conclusions – the short story

Page 49: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

50 % of all innovations will be

”gamified” by 2015!

What's next| More gamification, new tariffs and automation

Page 50: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Maintaining the dialogue...

Logica is a business and technology service company, employing 39,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com. The company is a public company incorporated and domiciled in the UK. The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

Tommy Olsson Global Practice Leader Smart Utilities T: +46 40 25 11 81 E: [email protected]

Page 51: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

“VEAB is part of many initiatives contributing to a better environment and we are in the forefront when it comes to sustainable energy development. With EnergiKollen we can build on our achievements and offer our customers what we always strive for – namely the opportunity to impact and reduce energy consumption.”

Ann-Mari Ståhlberg, CEO, Växjö Energi AB

Swedish energy company Växjö Energi AB (VEAB) and

Logica have worked together to launch EnergiKollen, as

part of a major energy saving initiative to reduce

electricity usage in Växjö by 5%.

Using technology and innovation to offer a smart

environmental solution requires knowledge and

experience. Logica has the right mix of both and a track

record that stands out for projects of this kind. Our

innovative approach kept the user in focus and

demonstrated the skills required for integrating into

their existing systems.

EnergiKollen is available to more than 25,000

households equipped with smart meters in Växjö.

The solution won the European Utility Award for

Customer Excellence in 2007.

Why did the client choose us?

Energy saving is important and fun too

• Increase awareness of electricity consumers and

support the drive to make Växjö more sustainable

• Engage the entire community in friendly competition

to save energy

What were the client challenges?

What were the benefits to the client?

How did we address the client challenges?

• Consumers compare their usage with peer groups and

compete with each other to reduce energy usage

• Winners typically achieve about 30% and are

rewarded for successful behavioral change

• Consumers using the tool save 4 times more than

those not using it. In one such contest between

companies and politicians in Växjö, the winning team

reduced electricity consumption by 47.4%

• Developed EnergiKollen, a web based solution with

easy-to-follow energy visualisation that outlines

changes in energy consumption

• Enabled free login to the online tool with a feature for

consumers to compete to be the best energy saver

Page 52: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

Visualizing energy to change behavior

• Engage students and teachers to create awareness

and save energy.

• Gather real-time data in a effective way and present

the data through a user friendly visualization

• With a clear focus on involvement by the target group

in the process of developing the visualization.

• With a partner to use the best possible hardware.

• Better understanding of energy saving through online

engagement paralleled with educational focus.

• Empowers students by showing them consumption

patterns, costs and impact on climate.

• The schools compete with each other to reduce

energy usage.

What were the client challenges?

What were the benefits to the client?

How did we address the client challenges?

“The visualization allows us to show the school's actual

energy use and continually remind ourselves of the

sustainability work that the school conducts” says Hans

Dahlquist, principal of the engineering programme at

Skolstaden

Skolstaden chose Logica because we demonstrate both

a strategic understanding and knowledge of practical

solutions to reduce energy usage. Also Logica already

have shown benefits in similar project with other

clients. By visualizations users have earlier seen their

energy consumption decreased at around 12-17 %*.

This is a great step towards a more energy consious

society.

* http://goo.gl/lKuJ8

Why did the client choose us?

Page 53: Analyst briefing session 1   the challenge of deploying the infrastructure

© Logica 2012. All rights reserved

The race to be a top energy saver

Stefan Johnsson– Lunds Energi, commented : “By adding the business knowledge from Logica to their solution expertise we got the combination needed to realise our goals”

• Lund Energi wanted to be “best in class” in helping the

citizens of Lund to save energy, money and the

environment!

• Find a partner to develop end user web strategy and

implement the solution

• Strategic advice on solution to meet client goals

• Empowered consumers by showing them energy

consumption patterns, costs and impact on climate

• Made energy saving fun with competitions in energy

efficiency

• Better understanding of energy saving though online

consumer engagement

• Empowers consumers by showing them energy

consumption patterns, costs and impact on climate -

to help them save energy

What were the client challenges?

What were the benefits to the client?

How did we address the client challenges?

Lund Energi buy and sell electricity, gas, district heating

and communication services. Its services include

customer service, advice, maintenance, and contracting.

Founded in 1863, the company is based in Lund,

Sweden.

Lund Energi were looking for a combination of energy

efficiency, sustainability and consumer understanding. As

well as the ability to implement a solution to help

consumers save energy.

Lund Energi chose Logica because we combine strategic

understanding with practical solutions to save energy.

And because we had already demonstrated the benefits

with other clients.

Why did the client choose us?