Platform-based M2C system offers a better path

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Energy and utility companies are seeking a sustainable alternative to SAP IS-USome 740 energy and utility companies around the world rely on SAP’s industry-specific solution for the utilities industry (SAP IS-U) to manage sales and information for 450 million billed end customers. SAP has offered such industry-specific products since the 1990s, focusing first on income flow and later on asset management. Over the years, most energy companies have relied on an in-house solution based on SAP to manage their business functions.

SAP IS-U currently covers a wide range of functionalities in various segments and market roles, from energy generation to retail for electricity, gas, water and district heating.

However, as part of a 2025 deadline to move clients to its next-generation business suite on SAP S/4HANA, the German multinational software giant plans to discontinue support for SAP IS-U by the end of 2025. Many SAP IS-U users are unsure how to proceed.

Over the next few years, and especially beyond 2025, SAP as a market-leading solution will come under massive pressure. The industry will open up to alternative providers against the backdrop of German Market Communication 2020, smart grid technology and meter-to-cash (M2C) implementations.

The market is ripe for a cost-effective, flexible and agile platform-based business support system that can be integrated with the cloud. None of the current providers offer a complete solution covering all necessary functionalities and requirements to do this successfully.

Changing requirements for IT business process systems

Energy suppliers today are digitizing processes and models and rolling out smart meters and smart-meter gateways. They are looking for an IT system that can transform their core business processes.

Although SAP IS-U is popular, users are often not totally satisfied with the software and its energy data management (EDM) component. They complain that the system’s high license, maintenance and operating costs, as well as the complexity of its tool integration, are not commensurate with the level of agility and flexibility they need.

DXC ... manages and orchestrates the platform. We partner with leading providers

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Many energy and utility customers question SAP IS-U’s ability to help them focus on the end customer and to integrate with smart grid technologies, metering, internet of things (IoT) systems and other evolving technologies. They claim the product is inadequate to comply with government deregulation and other directives. The German Federal Network Agency’s December 2018 regulation on market communication (MaKO 220 FNA), for instance, gave the green light to deploy a nationwide smart M2C process. Since then, the demand for smart metering in Germany has jumped, as has the demand for solutions covering reading, invoicing, settlement, receivables, and other meter- and customer-management functions.

Limited alternatives

The worldwide business support system market for utilities and energy companies is currently dominated by two leaders: SAP’s IS-U with its EDM component, and Oracle’s Content Integration Suite (CIS). Alternative solutions are limited, and only a few can be fully integrated with a cloud platform.

A range of niche providers focuses on either certain regions or specific customer segments. Few of these solutions contain all of the required processes, and most apply only to large energy and utility companies with more than 1 million billed metering points.

Meter-to-cash investment forecastHow to meet future challenges in a scalable, secure and future-proof manner

Approximately 80% of companies in the energy sector have relied on an in-house solution concept based on SAP

Increasing investment Reworking existing structures — using your own solution — would involve great cost and other pressures

The future of SAP IS-U The introduction of a new SAP solution suite has created an urgent need for action

From professionals for professionals A sustainable, secure alternative solution to non-market-differentiating services for energy & utilities organizations

Cost reduction Long-term cost savings through integration of alternative products

06-2018 01-2019

One solution

Vendor lock-in

DXC Technology

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The DXC solution is based on a state-of-the art platform that powercloud developed specifically for utility companies. The platform digitizes sales, processing and billing of commodity and noncommodity products. The fundamental functions of the M2C and supporting processes across the market roles — EDM, sales processes, metrology, customer service, receivables management, settlement and market processes — all operate on the platform.

Sustainable, long-term solution

To fill the gap, DXC Technology has teamed with powercloud, a German cloud software startup, to offer energy and utility companies a sustainable, long-term alternative to existing IT support systems.

Our powerful new solution is a flexible, platform-based M2C system that enhances utilities’ features and integrates with the cloud. Its architecture centralizes and optimizes processes to lower costs and improve capabilities. Based on current energy and utility company IT cost estimates, we predict that it can provide approximately up to 40 percent long-term savings for the IT cost to serve.

Meter-to-cash processCentralization and optimization of processes to reduce IT costs

Current situation

Synergies of centralized solution

Centralized solution and optimized processes

Estimated IT cost-to-serve savings

Platform technology (IaaS/PaaS)

Application services (SaaS)

Software licenses

100

90

80

70

60

50

40

30

20

10

0

-50%

-20%

Up to 40%

-50%

-40%

-0% -10%

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About DXC TechnologyDXC Technology, the world’s leading independent, end-to-end IT services company, manages and modernizes mission-critical systems, integrating them with new digital solutions to produce better business outcomes. The company’s global reach and talent, innovation platforms, technology independence and extensive partner network enable more than 6,000 private- and public-sector clients in 70 countries to thrive on change. For more information, visit www.dxc.technology.

© 2019 DXC Technology Company. All rights reserved. LO_3070a-20. September 2019

DXC Technology, an exclusive powercloud implementation partner, manages and orchestrates the platform. We partner with leading providers — including Bosch Software Innovations, Microsoft and SAP — to deliver the best solutions for each function. We serve as the general contractor, providing all platform-related services, management, settlement and governance.

The platform includes workload and storage components provisioned on a rule-based and demand-driven basis from the public cloud (Microsoft Azure and Amazon Web Services [AWS]), the private cloud (DXC Virtual Private Cloud [VPC] and GISA GmbH) and, if necessary, on-premises solutions.

The solution offers clear advantages:

• High agility and flexibility, thanks to a fully cloud-based architecture

• Future-proofing through integration of market-leading software providers

• Independence from vendor lock-in

• Clear cost benefits compared with conventional solutions, through centralization, standardization and cheaper license costs

Why DXC?

We believe DXC is the ideal provider for the ideal solution. Here’s why:

• Proven experience. As an established systems integrator and operator, DXC knows the industry.

• Best possible solutions. As a vendor-agnostic service provider, DXC selects and integrates best-of-breed solutions.

• Cost efficiency. As a global leader in serving large energy and utility companies, DXC shares the market’s expectation that the costs of a new system landscape should be significantly less than the existing system.

Learn more at www.dxc.technology/energy

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