what does digital transformation mean for water utilities?€¦ · global smart water meter...
TRANSCRIPT
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What does digital transformation
mean for water utilities?
Brian Williams
ENR Industry Advisor, SAP EMEA South
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What does digital transformation
mean for water utilities?
…..it depends….
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Content
• Trends
• Price of water
• Digital transformation case studies
• Priorities
• Customer Service to Customer Engagement
• Digital Asset Management
• Reporting and Analytics
• Conclusions
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Trends
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Water Supply
If present trends continue, two out of every three people on Earth will live in in countries considered to be "water stressed" by 2025.Source: Millennium Report of the Secretary-General of the United Nations
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Water Infrastructure
Organizations generating maintenance work orders mostly from preventive and predictive maintenance inspections have on average 42% higher return on assets.Source: SAP EAM Benchmarking Study based on 60+ companies
According to various industry sources in the United States,
about 40% of all water valves and 10% of hydrant valves are
inoperable.Source: Warren B. Causey, Five Point Partners LLC
“Important Issues Water Utilities Face”
US water utility executives estimate they will need about $335 billion in capital investment over the next 20 years just to keep the water flowing.Source: Warren B. CauseyFive Point Partners LLC“Important Issues Water Utilities Face”
With much of the world’s water infrastructure nearly a century
old, there’s a crying need to prevent “non-revenue” losses
suffered by water utilities. The World Bank estimates that
worldwide costs from unmetered water total $14 billion annually.
Source:
www.greentechmedia.com/articles/read/the-smart-grid-for-water-gets-bigger
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Improve Energy Efficiency of Water Supply
In California sourcing, moving, treating, heating, collecting, re-treating, and disposing of water consumed 19 percent of the state’s electricity, 32 percent of its natural gas, and 88 billion gallons of diesel fuel each year.“Source: California Energy Commission
Studies estimate potential savings of 15-30 percent that are "readily achievable" in water and wastewater plants.Source: http://water.epa.gov/infrastructure/sustain/energyefficiency.cfm
The energy costs account for up to 20% of the overall costs. Processes in waterworks and waste water treatment plants still have an energy efficiency potential of up to 20% though quite some optimization already happened.Dr. Christoph Donner, Ronald RoepkeRheinisch-Westfälische Wasserwerksgesellschaft mbH, Nov.2010
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Global smart water meter shipments are expected to reach 29.9 million units by 2017, up from just 10.3 million meters in 2011.Source: Pike Research, May. 2012
Water leakages and unmetered water are driving increased investment in technology to properly meter water, detect leaks, identify degrading systems and otherwise make water delivery more efficient. Source: www.greentechmedia.com/articles/read/the-smart-grid-for-water-gets-bigger/
Take Advantage of Next-Generation Technology
New water meters helping to detect thousands of leaks in southeast England. Source: METERING.COM July 2012
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Price of water
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Price of water
• Based on published tariffs and exchange rates as of 10 May• Each city has 4 or more tariff categories. Non-metered property based tariffs have many more.• Excludes sewerage (sewer fees are approx. 65-75% of water)• Includes VAT where applicable (at time of tariff being published)
Cape Town Lagos Nairobi* Cairo Casablanca Dubai Riyadh Rome Athens Karachi* London* Charlotte
Residential (Lowest) (kl) 6 6 10 6 27.27 50 7.67 5 4.473
Residential (Highest) (kl) 35 60 40 120 54.56 300 30.67 35 25.23
Residential (Lowest) (USD/kl) 0.33$ 0.56$ 0.00$ 0.03$ 0.25$ 2.58$ 0.03$ 0.25$ 0.42$ 0.23$ 1.74$ 0.56$
Residential (Highest) (USD/kl) 3.13$ 0.73$ 0.64$ 0.45$ 1.17$ 3.27$ 1.60$ 5.93$ 3.81$ 3.15$
OR OR
Residential (Lowest) 5.26$ -$ 0.50$ -$ 0.64$ -$ -$ 3.33$ 1.19$ 0.84$ 28.17$ 4.02$
Residential (Highest) 14.66$ -$ 1.00$ -$ 1.07$ -$ -$ 3.33$ 1.19$ 77.10$ 316.58$ 4.02$
Fixed Fee
(Water Only)
Metered
Consumption
Desalination and reuse in Israel:• Average residential tariff for potable water is USD 2.58/kl (5 different grades of water nationally)• EVERY DROP of every water quality is metered with a detailed national true up monthly• By far leading the world in reclaiming wastewater, Israel treats more than 90% of its sewage – most of which
is then reused.
Desalination Cost (USD/kl): 0.84Ground water reuse (USD/kl): 0.20
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Digital transformation case studies
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Dubai Electricity & Water Authority
Technical Review Middle East
4 December 2016:
DEWA introduces world’s first
virtual reality utility inspection
project
Dubai Electricity and Water Authority
(DEWA) has launched a pilot project for the
world’s first virtual reality (VR) remote inspection for utility maintenance. The pilot project combines autonomous robots from SAP’s VR and Internet of Things (IoT) to remotely inspect DEWA’s electricity and water networks.
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Dubai Electricity & Water Authority
Simplification and Process ImprovementSeven Domains Identified
Tactical
Ad
van
ced
Asset
Man
ag
em
en
t/
Asset
Netw
ork
Customer Experience Supply Chain Mgt
Strategic
Inte
llig
en
t G
rid
Finance Talent Management
Operational
27
24
110
11
12
1314
15
16
17
19
20
21
22
23
25
28
26
17
SAP HANA PLATFORM
1
6
2
4
53 7
1 Visualization concept in CHP plants' control rooms, 3D modelling
10Integrated production transportation and distribution optimization
11Predictive maintenance, Asset Monitoring12Predictive Call Center and Next Best Actions / Predicting
customer behavior13Revenue leakage analytics - Fraud, losses..14Smart Meter analytics; Predicting customer behavior;
network consumption and evolution15Marketing and Social 16Supplier collaboration 17OEM suppliers asset collaboration 19Spatial Analytics on Customers20 Demand Forecasting21 Spare parts optimization22 Human & Intellectual Capital23 Risk Management24 Process Utilities25 Supply Chain Optimization & Traceability28 Financial & Audit26 Mobile workforce 27 Digitalize the Boardroom
The SAP Team identified 20 use cases/services which can be enabled by SAP
technology and are relevant for DEWA. Jointly with DEWA the use case have been
grouped into seven investment domains:
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Acea (Rome)
Acea is the leading Italian operator in the water sector supplying 9 million inhabitants in Lazio, Tuscany, Umbria and Campania; it’s one of the major players in Italy in terms of the distribution and sale of electricity, distributing 10 TWh and selling 8.3 TWh. Acea is the sixth biggest Italian waste-to-energy operator, and has processed 820.000 tons of waste. On 31 December 2016 the Group was employing 4.968 people.
In March 2016, the Acea Board of Directors approved the Group’s 2016-2020 Business Plan. The Business Plan confirms Company strategy is focused on regulated business, the innovation and rationalisation of internal processes, and service quality. Forecasts allow for the new electricity and water distribution regulatory framework, with the consequent optimisation of the allocation of resources in the most profitable business segments. Furthermore, there is a hypothesis for acceleration and the expansion of efficiency objectives, especially with reference to the Acea 2.0 digital innovation project.
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Acea (Rome)
1) SITUATION BEFORE DIGITALIZATION• Acea is a multi-utility company, supplying water and electricity and
distributing energy to other retailers on the free market• Acea worked on previous three different business areas (water supply, energy
distribution and energy supply) with three different systems, solutions and approaches
• In addition each company of the Acea group was using different corporate solutions in the areas of financial, controlling, treasury, HR and reporting
• The three CRM systems were different, no customer unique database was available
2) NEED FOR CHANGE• The first important need of Acea was to improve its operational cycles. That
means to optimize the way Acea handles the maintenance of the water pipelines, pumps, meters, electrical stations, wires and illumination services. Main goal is to lower the costs of maintenance improving the service.
• The second important need of Acea was to improve the meter-to-cash processes. That is to improve all the processes that generate revenue to the company.
• The third need of Acea was to centralize all corporate systems to have a common and unique handling instead of a multicompany one.
3) SITUATION AFTER DIGITALIZATION• CRM and IS-U solutions for Water and Distribution sectors• CRM and IS-U solution work-in-progress for Energy sectors• Work Force Manager solution (with SAP PM, Syclo and Click Schedule) to
handle the operational cycle of the whole group.• Centralized financial, controlling and treasury processes for all companies • Unique reporting database and functionalities• Unique procurement process and system for all companies and employees
of the group• New customer engagement approach through C4C and Hybris to be
delivered by last quarter 2016
4) TANGIBLE RESULTS• The 3500 workers that do active maintenance of wires, pipes and facilities
have optimized plans and schedules based on their working shifts and with automatic geolocalization of the failures, being monitored on realtimethrough tablets.
• The maintenance workers exchange information on jam collaboration groups through new mobile apps
• Unique controlling model for the whole group allowing the comparison of costs across the different companies
• From October onwards centralized handling of all customers and prospects with a new multichannel approach
• Unification of the systems supporting the call centers and the customer desks. Unique customer database.
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Acea (Rome)
Innovation: a new ENEA software to enhance resilience to severe weather and related hazards
ENEA and ACEA Distribuzione are testing an innovative software allowing to predict the risk posed to energy and water infrastructures by extreme weather events such as severe rainstorms, floods and landslides.
"Once data from sensors and weather forecasts are acquired -Vittorio Rosato, Head of the ENEA Laboratory for the Analysis and Protection of Critical Infrastructures, explains- the application develops risk scenarios, identifies the elements of the infrastructure that are at risk and calculates the impact of a possible electricity outage on citizens and the productive system. Acquiring this information - Rosato adds- enables the electric utility and the authorities to deal with emergency situations, taking effective measures to ensure prompt interventions“
The system ENEA is testing in collaboration with ACEA Distribuzione - soon to be extended to the ATO2 water network - is part of the project RoMA (Resilience Enhancement of Metropolitan Areas), funded by the Ministry of Education, University and Research. The project was inspired by the technologies developed under the European project CIPRNet (Critical Infrastructure Preparedness and Resilience Research Network) for the Competence Centers for the analysis of the risk of critical infrastructures in Europe, that will provide a 24-h risk analysis of critical infrastructures with a prediction from afew hours to a few days.
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Acea (Rome)
“Rome, City of Ancient Aqueducts, Faces Water
Rationing” July 27, 2017, The New York TimesA severe drought and sweltering temperatures have led city officials to
consider rationing drinking water for eight hours a day for a million and a half
Rome residents.
Since May, the city-controlled water utility, Acea, has rushed to repair 2,000 of its 7,000 kilometers of water pipes, recovering a hundred liters of water per second.You have 4 free articles remaining.
Even as the Acea website boasts “Roma, Regina Aquarum” (Rome, Queen of the Waters), its system has become so decrepit that about 44 percent of the water is stolen, spills out underground or pools onto the street.
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National Water Company (Riyadh)
Most of Saudi Arabia is a desert: Very hot, dry, windy, extremely dusty and with isolated rare big storms that inundate infrastructure.
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National Water Company (Riyadh)
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National Water Company (Riyadh)
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Saline Water Conversion Corp. (Riyadh)
“WCC continues to exert efforts to provide desalinated water from its 28 operational plants scattered across the Arabian Gulf and the Red Sea in KSA. During the year (2014), the total desalinated water exports amounted to (1107.6) million cubic meters.”
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Saline Water Conversion Corp. (Riaydh)
Solution Enablers• Asset Information Governance helps to
create master data in a centralized, fully governed process and correlate disparate asset information.
• Maintenance Planning and Scheduling:Enables Utility to plan work and assign the “right” skilled person. A company can then measure planning by comparing planned hours versus booked hours on jobs.
• Mobile Asset Management Enables mobile maintenance processes to improve technician productivity, asset uptime, and safety. A complete suite of already built in
applications for field workers: meter management, network inspections, construction works and additional Technical Asset Related processes.
• Multi Resource Scheduling. Promptly assign the best available resource for each job. Scheduling and dispatching – Use an intuitive graphical planning board to meet service demand. Optimization of schedules – Match demand with the right resources using key criteria
Solution EnablersSense• Remotely sense operational data from
equipment: SAP Predictive Maintenance and Service collects sensor data, merges it with business information (like past maintenance records) and other data such as weather or text information
Predict• Analyze and monitor equipment data to
find conditions or patterns for failures, correlating with business information and applying rules to predict future malfunctions
• At any point in time, gain full visibility into current asset health and asset health predictions by monitoring and analyzing Big Data with SAP HANA in-memory computing
Act• When necessary, apply preventive counter
measures that trigger maintenance orders in service or plant maintenance systems
• Optimize maintenance and service operations and enable new business models around the equipment
Solution EnablersPortfolio Planning and Monitoring• Portfolio Planning & Prioritization• Visibility into the performance of the
capital project portfolioProject Management and Execution• Developing detailed project plans and
cost estimates, monitoring financial information and project progress relative to these plans, and roll up detailed costs for cross-project analysis.
• Tracking the procurement of parts, equipment, and services related to the project structures.
• Continuous progress monitoring, status update reporting, and cash flow control across all projects
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“This innovation blueprint presents a new approach to managing innovation and digital transformation for Thames Water, Wastewater in line with the digital age; with the aim of working smarter, more efficiently and with less risk ahead of the market deregulation in 2017.
This blueprint is the outcome of a journey that began with an innovation workshop held on the 13th of November, during which 167 raw ideas were generated. These were subsequently refined, prioritised and developed into 5 strategic themes for innovation and digital transformation.”
Thames Water (London)
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Thames Water (London)
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Thames Water (London)
Is there a way for the network to use machine learning to identify its assets (and asset health) by itself?
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Thames Water (London)
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# Risk 2016/17 Comments
Acce
ssib
ility
Tim
elin
ess
Accu
racy
Re
liab
ility
Co
mp
lete
ne
ss
Tra
nsp
are
ncy
1
Risk that leakage performance
reporting is incomplete, inaccurate,
unreliable and not communicated in a
transparent way (Customer priority)
X X X X X Our mitigation activities as detailed in our Assurance Plans are deemed to reasonably reduce the reporting
risk surrounding leakage performance.
We have noted that further development is required to continue to involve and educate customers and
stakeholders; we feel that this relates to reporting on all of our complex performance commitments
generally. As leakage is of high importance to our customers we have concluded that this item should remain
as an ongoing targeted risk' to ensure that we continually seek to improve our reporting and engage with our
customers frequently to ensure that we are meeting their needs.
2
Risk that sewer flooding performance
reporting is incomplete, inaccurate,
unreliable and not communicated in a
transparent way (Customer priority)
X X X X X In 2015/16, a deep dive exercise highlighted issues regarding the completeness of sewer flooding data. We
have now completed our internal review of the 15,599 records which were potentially affected and identified
2,365 incidents which were potentially due a GSS payment and 1,775 additional internal SFOC incidents
which would have been reportable under AMP5 guidance. From our findings, we have made a total of 1,795
GSS payments to the value of £736,570 and also made a payment of £210,328 to our Trust Fund to reflect
those 295 customers who could not be located. To prevent this issue from recurring in future we have
adopted the following:
1) Added in two additional layers of verification checks
2) Re-trained over 550 employees to date (the vast majority, with the residual due to sickness or holiday)
3) Completed our first iteration of the Compliance Manual which captures existing controls and drives a
programme of continuous improvement in flooding data.
4) System fixes are underway with system replacement due in the Summer of 2017.
Due to the significance within customer priorities, conclusion is to keep this as a risk in 2016/17.
Risk Category
Thames Water (London)
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# Risk 2016/17 Comments
Accessib
ility
Tim
elin
ess
Accura
cy
Relia
bili
ty
Com
ple
teness
Tra
nspare
ncy
3
Risk that complex Performance
Commitment reporting is incomplete,
inaccurate, unreliable and not
communicated in a transparent way
X X X X X X We have noted during completion of our Assurance Plans that timeliness of PC reporting is significant for customers and
stakeholders. We will therefore keep this tem within the 'targeted risks' table for 2016/17 in order to seek consultation
during initial stakeholder engagement phase.
4Cost Allocation* – risk that costs are not
allocated accurately and clearly X X X X
Due to ongoing developments of reporting requirements and that any potential misallocation of costs would have
significant impact on information reported in general, our conclusion is to keep this as a risk in 2016/17.
5
Forecasting accuracy risk (new Ofwat
guideline to provide a forecast of the end
of AMP6 value and reward/ penalty for
each PC, as part of our Annual
Performance eport)
X X X X
We have noted during completion of our Assurance Plans that where the target measure is set for the end of the AMP
period (that is, 2020), it may not be possible to
assess the measure accurately and it may be out of context part way through the AMP. Given that we are currently in the
second year of the AMP period, we are not required to forecast the end of AMP6 value and reward/penalty for each PC
and therefore, do not consider forecasting accuracy risk to be of particular concern during 2016/17 however, we note
that this will gain prominence the closer we get to the end of AMP 6. We have therefore kept this item as a risk for
2016/17.
6
Risk that reporting is not accessible, clear,
transparent, timely and does not reflect
context X X X
During 2016/17 we have engaged with external experts to seek guidance on how to improve our reporting style and
embarked on digital re-platforming to improve our website. We have concluded that this item should remain as an
ongoing 'targeted risk' to ensure that we continually seek to improve our reporting and engage with our customers
frequently to check that we are meeting their needs.
7
Risk that performance reporting in relation
to new Water Resources and Bio Resources
is incomplete, inaccurate, unreliable and
not communicated in a transparent way.
X X X X
For 2016/17, new reporting requirements will be introduced for Water Resources and Bio Resources in anticipation of
these being new price controls in AMP7.
Due to the new reporting requirements we believe there is increased risk surrounding the following:
1) Heightened risk of misallocation of costs between price controls
2) Potential for misinterpretation of regulatory accounting guidelines
3) Comparison to the Final Determination (FD) will become more complex as it will require aggregation of information
where there are new price controls not in the FD.
This could make it more difficult to explain performance in the future.
Risk Category
Thames Water (London)
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Thames Water (London)
Water Resources Management Plan 2019
If it is always raining in London, so why do we need a
desalination plant? Do we have the wrong kind of rain? Well,
yes. London is damp and dreary a lot of the year, but we get
less annual rainfall on average than Sydney and Barcelona.
20% of London's water supply is from ground water. The
remaining 80% comes from the Rivers Thames and Lee. The
water in our rivers also mostly comes from under the ground.
London's water supply depends on topping up ground water
every winter. If we have more than one dry winter, river flows
start to drop and we risk running out of water.
The 'desal' plant is a backup supply for drought. It provides
resilience to London's water supply system for when we have
a few dry winters in a row. When operating at full steam it can
supply 400,000 homes (900,000 people).
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Priorities• Customer Service to Customer Engagement
• Digital Asset Management• 5 Dimensions of Insight
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Happy Customer
John is unaware of anything out of the
ordinary…
Customer Service to Customer Engagement
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Happy Customer
A smart meter detects increased water
consumption.
Or?
Customer Service to Customer Engagement
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Happy Customer
Customer Service to Customer Engagement
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Happy Customer
Dear John, we noticed
that water consumption
for the last 24 hours is
much higher than
average.
Are you aware of that
situation? “Yes” or “No”
Customer Service to Customer Engagement
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Happy Customer
John -- Alert 1
Alert 2
Customer Service to Customer Engagement
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Happy Customer
70% higher than the average
for the last month
Customer Service to Customer Engagement
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Happy Customer
System already qualified the
case for potential malfunction
and sent SMS to the customer
twice in 2 hours.
Customer Service to Customer Engagement
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Happy Customer
No Response
Customer Service to Customer Engagement
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Happy Customer
On the screen agent sees John’s location and
availability of technical crews who can take this order.
She calls John and informs him about
potential problem and proposes that
somebody can come within 90-120
minutes. She informs John that this is paid
inspection (AED100), but daily cost of
additional energy consumption is AED 25.
John confirms the visit.
Customer Service to Customer Engagement
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Happy Customer
Technician arrives and traces the source of
the high water consumption
Customer Service to Customer Engagement
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Happy Customer
Technician sends the information to customer services agent confirming the problem.
Customer services agent recommends a Partner’s Service The agent sees available resources and agrees with John on
proposed date and time
Customer Service to Customer Engagement
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Happy Customer
Proposes solutions which can
decrease water consumption and
water bills
Utility can sell as a bundle of repair
and warranty services
Water monitoring and management
means that John will no longer have
to worry about too high water bills.
Customer Service to Customer Engagement
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43CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Asset Management: Connected Assets
Physical World
Asset
Digital World
Edge
Gateway
Condition monitoring
Asset history
Augmented reality
Digital Twin
Business Context
Maintenance
Management…
Performance
and Risk
Management
Claims
Management
Statistical and Machine
Learning modelsPhysics-based models
ERP
…
Manufacturing
PLM
Business
Partners
Design &
Simulation
Equipment details
BOM / 3D
Spare parts
Inventory
Serialization
Roles
Business partners
Contracts
Financials
Performance optimization
Risk reduction
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44CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Twin Supports Complete Asset Lifecycle Management
Plan & Design
Procurement &
Manufacturing
Installation & Commissioning
Operation & Maintenance Disposal
Digital Twin 3D Models,
Drawings,
EBOM, P&ID,
As Designed
Spec Sheets,
Production
Quality Data,
MBOM, As Build
Installation and
Testing Specs,
As Installed
Shut Down
procedures,
Dismantling &
Disposal
Instructions
Maintenance,
Safety &
Emergency
Procedures, As
Maintained
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45CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Asset Management Scope
Predictive
Engineering
Insights
Asset
Strategy and
Performance
Management
Predictive
Maintenance
and Service
IoT Foundation
SAP Leonardo
Digital Core
ERP
PdMS, add-on
for Utilities
Supplier &
Manufactur
er
Meter Sensor SCADA Data Historian
GIS
Geo
Enablement
Framework
Master Data
Governance for
EAM
Extended
Enterprise
Content
Management
Asset Core
Multi Resource Scheduling
Work Manager & Asset Manager
Asset
Intelligence
Network
Sensor
Data
Insight
ActivitiesCollaboration
Engineering Tools
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46CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Asset Management for water network operators
We think about the world in geospatial terms.
We assume network operators will have a
GIS deployed across most of their network.
Geospatial attributes are recorded with
the technical object master record in
SAP (usually Flocs, but can also be
Eqpts and Assys).
Ideally changes in SAP are
synchronized in GIS and vice versa.
Goal: Actionable
data presented in
a geospatial way
Geospatial information is an essential management decision making tool
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47CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital EAM: Business Network
Predictive
Engineering
Insights
Asset Strategy
and
Performance
Management
Predictive
Maintenance
and Service
IoT Foundation
SAP Leonardo
Digital Core
SAP ERP
PdMS, add-on
for Utilities
Supplier &
Manufacturer
Meter Sensor SCADA Data Historian
GIS
SAP Geo
Enablement
Framework
SAP Master Data
Governance
EAM extension by
Utopia
SAP Extended
Enterprise Content
Management by
OpenText
Asset Core
SAP Multi Resource Scheduling
SAP Work Manager & SAP Asset Manager
Asset
Intelligence
Network
Collaborate with suppliers on
maintenance procedures and
strategies
Share asset documents, service
bulletins, sensor readings
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48CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital EAM: Business Network
Predictive
Engineering
Insights
Asset Strategy
and
Performance
Management
Predictive
Maintenance
and Service
IoT Foundation
SAP Leonardo
Digital Core
SAP ERP
PdMS, add-on
for Utilities
Supplier &
Manufacturer
Meter Sensor SCADA Data Historian
GIS
SAP Geo
Enablement
Framework
SAP Master Data
Governance
EAM extension by
Utopia
SAP Extended
Enterprise Content
Management by
OpenText
Asset Core
SAP Multi Resource Scheduling
SAP Work Manager & SAP Asset Manager
Asset
Intelligence
Network
Identify critical assets and
define maintenance strategy
Risk assessment with a focus
on safety, finance, security of
supply
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49CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
ASPM and Maintenance Strategy Development
Asset Criticality Assessment
Asset Management
Strategy
Asset Management Monitoring
Functional Analysis
Criticality Assessment
Criticality
Reliability Centered
Maintenance
Failure Modes and Effects
Analysis
Structured Review
Maintenance Strategy
Implement Strategy in SAP PM
Collect Work History
High Medium Low
Evaluate Strategy and Optimize
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50CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital EAM: Finite Element Analysis
Predictive
Engineering
Insights
Asset Strategy
and
Performance
Management
Predictive
Maintenance
and Service
SAP Leonardo IoT Foundation
SAP Leonardo
Digital Core
SAP ERP
PdMS, add-on
for Utilities
Supplier &
Manufacturer
Meter Sensor SCADA Data Historian
GIS
SAP Geo
Enablement
Framework
SAP Master Data
Governance
EAM extension by
Utopia
SAP Extended
Enterprise Content
Management by
OpenText
Asset Core
SAP Multi Resource Scheduling
SAP Work Manager & SAP Asset Manager
Asset
Intelligence
Network
Calculate forces and stresses in
structures & simulate extended
operation scenarios
For example for wind turbines
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Business DataSensor Data
SAP Data Hub on SAP Cloud Platform
Predictive Engineering Insights
Maintenance Execution Systems
Structural
Behavior
Fo
un
da
tio
nF
ea
ture
s
Vibrational
Diagnostics
Machine
LearningFedem
Simulatio
n
SAP PEI: Structural Behavior
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52CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital EAM: Predictive Maintenance
Predictive
Engineering
Insights
Asset Strategy
and
Performance
Management
Predictive
Maintenance
and Service
IoT Foundation
SAP Leonardo
Digital Core
SAP ERP
PdMS, add-on
for Utilities
Supplier &
Manufacturer
Meter Sensor SCADA Data Historian
GIS
SAP Geo
Enablement
Framework
SAP Master Data
Governance
EAM extension by
Utopia
SAP Extended
Enterprise Content
Management by
OpenText
Asset Core
SAP Multi Resource Scheduling
SAP Work Manager & SAP Asset Manager
Asset
Intelligence
Network
Calculate asset health and
predict remaining life time
For example based on gas
concentrations in the transformer oil
![Page 53: What does digital transformation mean for water utilities?€¦ · Global smart water meter shipments are expected to reach 29.9 million units by 2017, up from just 10.3 million meters](https://reader034.vdocuments.us/reader034/viewer/2022042308/5ed4d9bb8811581aea4da134/html5/thumbnails/53.jpg)
53CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP PdMS: Machine Learning Engine
Business DataMachine Data
Machine Learning Engine
Analysis Tools Catalog
SAP Predictive Maintenance and Service
Explorer Details
Logistics & Maintenance
Execution Systems
SAP Leonardo Foundation
SAP Leonardo for Edge Computing
Continuous Improvement & Learning
Failure
Prediction
Trigger prediction when
algorithm detects a
specific combination of
input variables
Anomaly Detection
Trigger anomaly alert
when the algorithm
detects an abnormal
pattern
New
Algorithms
Extensibility
Model
Management
Tools
Reinforcement*
Domain expert
feedback
*Roadmap Item
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54CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
*Roadmap Item
Continuous Improvement & Learning
Failure
Prediction
Trigger prediction when
algorithm detects a
specific combination of
input variables
Anomaly Detection
Trigger anomaly alert
when the algorithm
detects an abnormal
pattern
New
Algorithms
Extensibility
Model
Management
Tools
Reinforcement*
Domain expert
feedback
• Supervised learning enables failure
predictions like Remaining Useful Life
• Finds contributing factors to failure events
• Unsupervised learning detects anomalies
• Enables Health Scores
• Expert feedback
• Models change as operational
environment changes
• Extensibility for out-of-the-box
algorithms
• Possibilities to deploy new
R based algorithms
*Roadmap Item
SAP PdMS: Machine Learning Engine
Remaining
Useful LifeAnomaly
ScoreHealth
Status
2530 days
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Equipment
Operat-ional
Tactical
Strategic
Real-time event and performance monitoring for immediate equipment level supervisory decision making
SAP can compliment real-time supervisory decision making but is not a real-time control system
Equipment level sensing and reporting
Reporting and Analytics
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Equip-ment
Operat-ional
Tactical
Strategic
Real-time event and performance monitoring of all network performance variables for operational decision making
SAP can compliment real-time supervisory decision making but is not a real-time control system
Operational level monitoring of network performance
Reporting and Analytics
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Operational View: Thames Water
The AORTA (Asset Operations Real Time Analytics) project has allowed the utility provider to consolidate data feeds from a number of legacy control systems, including production planning, water in supply and event monitoring, into a single platform.
Wipro's AORTA solution uses OSISoft PI technology as this main platform, which it claims allows it to create this ‘single version of the truth’ and is scalable to store 20 years of operational data.
Computerworld UK spoke to Chris Featherstone, head of operational control and planning for Thames Water, who explained that the motivation behind the project was to upgrade legacy systems to improve customer care.
“As a control facility we have tried to adopt a model which allows us to bring into one building the majority of our control,planning and scheduling applications, along with our customer contact facility. This allows us to bring all the information we need to deal with ongoing service issues for our customers onto one floor area,” said Featherstone.
“The main drive was to ensure that we had clearly defined and joined up processes that allow us to drive a higher degree of customer service. It hasn’t been driven from a cost savings perspective, it’s been about trying to deliver the best possible customer service.”
From 2013: http://www.computerworlduk.com/it-vendors/thames-water-spends-4m-overhauling-control-centre-improve-analytics-3455584/
Reporting and Analytics
Operational level monitoring of network performance
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Near real-time event and performance monitoring PLUS information about ongoing and scheduled and non-
scheduled operations, maintenance and project work.
Equip-ment
Operat-ional
Tactical
Strategic
Reporting and Analytics
Tactical level reporting and management of O&M activities
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• Health status at a glance• Health status of the complete fleet• Aggregated from component health
scores• Based on out-of-the-box machine
learning• Derived signals management
• Personal and extensible• Flexibly composed by insight providers• Drill-down into one machine
• Integrated into operational processes• E.g. close-loop integration for services
via Multi-Resource Scheduling (MRS)
Asset health control center: Supervise machine health and act on issues
Reporting and Analytics
Tactical level reporting and management of O&M activities
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Analytically derived and calculated asset health indices and risk scores PLUS financial information to support medium-
and long-term capital investment decision making
Equip-ment
Operat-ional
Tactical
Strateg-ic
Reporting and Analytics
Strategic level consolidation and analysis for business planning
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Capital Investment Decision Making
Capital Investment Decision Making is concerned with understanding asset degradation and trading-off capital costs, maintenance costs, risks and their probabilities in order to optimise a capital investment decision, both in terms of timing and in terms of the choice of asset. In order to undertake this decision-making effectively, the costs and risks associated with an asset, and how these costs and risks change over time or with usage, need to be understood.
The diagram shows how costs and risks might change with time for any given asset or asset system.
Capital Investment Decision-Making involves both understanding these lifecycle costs and risks and also determining the best point at which to overhaul or renew the asset. Lifecycle cost analysis is typically used to determine the intervention(s) that represent the lowest lifecycle costs.
Capital Investment Decision-Making is an integral element of ISO 55000.
Source: The Institute of Asset Management, “Asset Management – An Anatomy”, Version 2, July 2014.
Reporting and Analytics
Strategic level consolidation and analysis for business planning
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Thames Water annual performance report 2015/16
WB1: We did not meet our target for customers without water for more than 12 hours and therefore our asset health is assessed as marginal. A major factor in our failure was a large burst in Enfield affecting 6,090 properties. Due to the size of the broken main there was no alternative pipe available to supply our customers while repairs were carried out.
An additional burst at Flaxlands(Swindon) affecting 3,751 properties and one in Slough affecting 1,134 properties pushed us further from our target. To minimise the impact of significant bursts in the future we have taken steps to improve our network monitoring systems and response to emergencies.
Reporting and Analytics
Strategic level consolidation and analysis for business planning
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Capital Investment Decision-Making Process is part of ISO55000
ISO 55000 Asset Management System Capital Investment Decision-Making Process
Reporting and Analytics
Strategic level consolidation and analysis for business planning
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Conclusions
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Conclusions
1. Drivers for digital transformation are as unique as every water company and the political and financial constraints of their jurisdiction.
2. A digital transformation is an enabler to a larger business transformation; ie. to achieve a step change in operational efficiency, revenue retention, customer service and/or capital efficiency.
3. Justifying digital investments vs. other water investments remains a challenge when money is tight. At a minimum, a basic level of digitalization to provide management with accurate information in order to make science-based investment decisions should not be avoided.
4. Digital transformations broadly combine one or more of the following:
a) Customer Service to Customer Engagement
b) Digital Asset Management
c) Reporting and Analytics
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Digital transformation scope
Configurable analytics engine
Business rules framework and algorithms
OT data model IT data model
EAMTime-SeriesEvent Data
GISReal-time Systems
ERPOther
Asset DBsOutage
DataCIS
Rich visualization
Situational awareness
Core business domains coverage
Configurable SAP HANA with
predictive analytics capability
Assets Customer EnterpriseOperations
OEM Direct HANA© Adapters Accenture services for IT/OT integration
Tiered storage
capability
IT/OT integration
Ingest structured and unstructured
data
Conclusions
SAP’s Vision: Please come talk to us!