US Systems Strategy and Routemap

Transcription

Massachusetts Electric Company
and Nantucket Electric Company
each d/b/a National Grid
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US Systems Strategy and Routemap
Final Report
December 2009 v1.0
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Contents
Executive Summary
Business Imperatives and Capabilities
Deployment Scenario Analysis
Application Migration Impact Analysis
Governance
Routemap Initiatives
Indicative Financial Impacts
Burning Platform Applications
Appendix
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Objectives and Outcomes
Objectives
Outcomes
 Develop US Systems Strategy and routemap driven by
National Grid’s business strategy and priorities
 Development of strategic considerations and business
imperatives
 Develop high-level cost estimates for the routemap
 Prioritized business capabilities required to address
business imperatives and top priorities
 Identify and integrate impacts of the routemap with
current IS investment plan and projected operational
spend
 Strategy for delivering Back Office, Customer, Front
Office, Mobile and Dispatch capabilities to Gas and
Electric LoBs
 US Systems Strategy routemap – initiatives, scope and
sequence
 Estimated cost impacts of the routemap
 Global project governance & design authority framework
to facilitate decision-making for the routemap and back
office program
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Key Messages

The US strategic routemap work has engaged extensively across the business

There is broad agreement on both the business issues and the priorities
– Back office needs to be urgently addressed
– Rhode Island gas has significant customer issues and very limited IT tools for Asset and Work management
– The Gas business has a highly fragmented set of IT solutions that is inhibiting business performance
– The Electric business is already consolidated (with exception of LIPA) and looking longer term for further efficiencies
from system changes
– Customer and markets are impacted by having multiple customer platforms, particularly with gas customers

A number of business capability delivery scenarios have been developed with a preferred scenario
identified

The Executive are invited to support the further development of the preferred scenario and the
implications and choices that it presents.

The planning and mobilisation for the US Back Office Programme is underway. A Sanction Paper for
the next phase of design will be presented in December with the programme commencing in January
2010.
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Our work reflects a collaborative process that involved the business from initial
executive interviews through extensive functional team analysis
Major Project Activities
Aug ’09
Sep ‘09
Oct ‘09
Step 1 - Understand NG Strategic Direction
– Understand strategic considerations &
develop business imperatives
– Define business capabilities
– Profile current NG IS environment
– Define Back Office scope
Step 2 – IT Implications & Application Architecture
– Develop target application architecture
– Define key management decisions /
deployment scenarios
– Develop IS implications for each scenario
Step 3 – Define Initiatives and Align
– Perform gap analysis between existing
initiatives and required capabilities
– Develop initiatives to address the gaps
– Develop Back Office sanction paper
Step 4 - Routemap and Communication
Routemap
– Develop deployment routemap
– Review the deployment routemap with key
stakeholders
Group
Exec
Today
Milestone
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Key Themes
 US business complexity is high
– Multi-state, multi-business
– 23 operating companies
– Overlapping LOB support relationships
– Balancing geographic and LOB management focus
 Post Merger integration was not fully completed
– Multiple ways of doing things (processes) and associated IT systems
– Significant issues with getting key management reporting information (data)
 Regulatory agenda is increasing in complexity and frequency
 We need to get going with back office
 Several IT systems are old, unsupported and in need of upgrade or replacement
 Gas issues are more pressing than Electric
 Interest is getting LOB synergies first, then cross LOB synergies (and fixing critical functions in parallel)
 Leverage and learn from the UK
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The executive interviews also identified a hierarchy of business priorities
Back Office
Customer
 Eliminate current business risks regarding financial/
regulatory reporting
 Provide required information to effectively manage the
business
 Most critical need
 Will be the first area to design and implement
 Other parallel work scope should not impact the ability
to deliver back office
RI Gas
Back Office
Customer LIPA
 Strategy is to provide leading customer service
through standardised processes and consolidation of
customer systems onto common platform
 Decision needed on whether to
migrate LIPA Customers
(depending on contract renewal).
 Addressing Gas Customer issues in Rhode Island is
critical and may run in parallel with Back Office with
any scenario
 Regulatory incentives contribute to need for LI Gas
migration
Customer
Other KS
Gas
LI Gas
NY/NE
Elect
LIPA
Gas
Asset and Work Management
Electric
Gas GIS
Electric GIS
Gas Front Office
 Strategy is to enable common processes across the
business for efficiency and improved customer
performance
 Extended and common mobile solution needed to
improve performance in Meter Services
Electric Front Office
GIS
 Gas consolidation of GIS platform part of AWM
alignment
 Enable common front office processes
 Further layer of business efficiencies through
standardisation of a GIS platform across Gas
and Electric
 Capture future synergies across gas and electric
through systems and data
 Timing of a common platform rollout should
coincide with Front Office enhancements
 Leverage UK GFO experience
 After back office, Gas has next most significant
number of pain points and critical needs
Business capability deployment priority
Highest
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Lowest
TBD
 Implementing transformation
 Benefiting from integrated toolset with
exception of LIPA (pending MSA
decisions)
 Further efficiency from system changes
and integration with gas a longer term
objective
 Needs are less critical than Gas and
proposed to be delivered later in the
release cycle of each scenario
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As a result, there is general consensus around the end-state target application
architecture that will deliver the capabilities needed by the business
Target Application Architecture – Migration to Standards
RI/GD
Gas
Distribution
NG/GD
Gas
Distribution
NG/ED
Electric
Distribution
NG/ET
Transmission
KS/GD
Gas
Distribution
LIPA *
TBD – Pending
Contractual Decisions
KS/Gen
KeySpan
Generation
CAS
-
Customer
CSS
Work
Management
SAP
MAXIMO
Asset
Management
SAP
MAXIMO
Back Office
SC/FI/HR
SAP/PowerPlant
SAP/PowerPlant
GIS
ESRI
OUTAGE
Field
Dispatch/
Mobile
-
-
ABB
-
SyClo / ClickSW
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ESRI
-
CARES
GOMS
MDSI
-
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The deployment routemap strikes a balance between maximizing business value and
managing implementation risk/cost
Pressure to Increase Scope
Pressure to Reduce Scope
Strategic
Considerations
Implementation Risk
Maximize speed to value given
the constraints of deployment
Functional Scope
Decision
Business Value
Cost
The routemap sets a strategic direction. Each major release will be approved before execution.
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We reduced several scenarios to four best alternatives and are recommending one
 Refinements to a few of the base
scenarios that remained
 Added new scenario that had a
Customer and FO pilot for Gas in
parallel with Back Office
Iteration 1
Iteration 2
Iteration 3
2
 Scenarios covered
range from very
large scope (“big
bang”) to Back
Office only (for first
release)
Initial set of 7 scenarios
2A
5
6
4
1A
4
1A
7
2A
3
1
1
Preferred
2
2
3
4
4
1
1
3
2A
2
1A
6
5
2
 Scenario 5 was eliminated
due to excessive complexity
 Scenario 6 was eliminated
due to addressing customer
issues too late in the
release cycle
3
 Eliminated an option that
implemented dispatch and mobile
capabilities early in cycle (too
much complexity versus value)
 Eliminated a large scope scenario
(full Gas rollout in parallel with
Back Office) due to business risk
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4
The remaining scenarios were further
evaluated and analyzed to better assess:
 Specific business/transaction impacts
 IT complexities involved
 Stranded /throw away costs
 Indicative costs
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Four primary scenarios were considered . . .
Scenario 2
Scenario 1
R-1
R-2
BO
Gas
FO*
Gas
Cust
Elec
FO*
Elec
Cust
R-3
R-2
R-1
R-3
BO
RI
Gas
FO*
RI Gas
Cust
Gas
Cust
Gas
FO*
Elec
FO*
Elec
Cust
Scenario Name: Back Office Focus
Scenario Name: Fully Integrated Pilot in Rhode Island
 Release 1 - Back Office Only
 Release 1 - Back Office; Rhode Island Gas Front Office and
Customer
 Release 2 - Gas Front Office and Customer
 Release 2 – Gas Front Office and Customer For Rest of
Geographies
 Release 3 - Electric Front Office and LIPA Electric Customer
 Release 3 – Electric Front Office and LIPA Electric Customer
Scenario 2A
Scenario 4
R-3
R-2
R-1
BO
RI
Gas
FO*
RI Gas LI
Cust Gas
Cust
R-4
R-1
Gas
FO*
Gas
Cust
Elec
FO*
Elec
Cust
Gas Cust
Elec Cust
BO
R-2
RI Gas
Cust
Scenario Name: Fully Integrated Pilot in Rhode Island and
Long Island Gas Customer
 Release 1 - Back Office; Gas Front Office and Customer (Rhode
Island) and Long Island Gas Customer
R-3
RI
Pilot*
Gas
FO*
Elec
FO*
Scenario Name: Parallel Customer
 Release 2 – Gas Front Office and Customer for Rest of
Geographies
 Release 1a – Back Office
 Release 2 - Gas Front Office Starting with RI Pilot
 Release 1b – Rhode Island Gas Customer in Parallel with R1a
 Release 3 - Electric Front Office
 Release 4 – Remainder of Gas Customers and LIPA Electric
*Note: Front Office includes asset, work, dispatch and mobile in all scenarios
R-1 Release 1 R-2 Release 2
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. . . And scenario 4 had the best balance of value, risk and cost
Scenario Analysis: Value-Risk-Cost Scoring
 Scenarios 2 and 2A increase delivery risk by expanding scope of initial Back Office
 Scenario 2A has the highest value but requires significant early customer investment
 Scenario 4 delivers higher value than scenario 1 by addressing high priority customer issues
 Scenario 4 gives more scope for optimising delivery programme by decoupling customer strand
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US Systems Routemap: Our View – Sequential Work Streams*
2009
Q3
Design Planning &
Mobilisation
2011
2010
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2012
2013
2014
Design
Back Office
Back Office Go-live Date
pending evaluation of business
and regulatory constraints
Design
Design
Gas Front Office
(Work, Asset, GIS, Dispatch, Mobile)
Gas GIS convergence
Potential early common mobile
Electric participation
in Gas FO Design
(Work, Asset, GIS, Dispatch, Mobile)
Gas Customer
RI Gas Front Office
Remainder Gas Front
Office
Design
Design
Design
RI Gas Advantage Migration to CSS
LI Gas CAS Migration to CSS
SMART Pilots
Confirm :Long-term
Strategic Customer
Solution for CRIS and
CSS (considering Smart
Grid pilot outcomes, etc.)
Electric Customer
*Note: Routemap based on Scenario 4
CRIS Migration
Release 1
Release 3
Release 2
Release 4
Design end
Go-live
Impact of Preferred Scenario - Preliminary Assessment
Activities that need to be initiated
Related activities that need to continue
 Advantage and LCDM decommissioning
 Customer Agent Desk Top
 Global Web for customer self service
 Electric Smallworld upgrade
Full assessment of
current projects to
be completed
 ESRI convergence plans for Gas
Related activities that need to stop
 Mobile expansion/migration plans
 Rhode Island Advantage upgrade
 Critical Systems replacement needs
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Intermediate milestone
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The roadmap’s initial focus will be to lay a foundation that can be built upon over time
Value
 Creates new business value
 Allows entry/exit from
markets/businesses
 Achieves operational excellence
Capabilities - Strategic
 Management / Regulatory
Reporting
Strategic/
Advanced
 Enables productivity improvements
 Extends service offerings
 Increases customer satisfaction and
builds customer loyalty
Operational/
Enhanced
Capabilities - Operations
 Fleet
 Gas front office
 Electric front office
 Customer
 Enhances business flexibility
 Meets basic business/customer needs
 Reduces/eliminates business risk
Foundation
 Automates transactional processes
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Capabilities - Risk
 Finance
 HR/Payroll
 Supply chain
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US Systems Routemap: Business Capability Release Plan
Gas
Customer
Reporting
Reporting
Gas Front
Office
Back Office
Back Office
2014
Gas
Customer
Reporting
Reporting
Gas Front
Office
Back Office
Back Office
2013
Gas
Customer
Reporting
Reporting
Gas Front
Office
Back Office
Back Office
2012
Gas
Customer
Gas Front
Office
Reporting
Reporting
Gas
Capability
Enablement
Back Office
2011
Back Office
2010
 Migration of
Rhode Island
customers
from
Advantage to
CSS
Key
Programs
and
Initiatives

“Go Live” for back office
SAP system in one
release (2nd half of 2011)

Delivery of Back Office
reporting/analytical
capabilities – financial
and regulatory


Delivery of Customer
capabilities – Rhode
Island Gas and Electric

Delivery of Customer
capabilities – Long Island
Gas and Electric

Migration of Gas
customers (remaining
geographies) from CRIS
to CSS

“Go Live” for Gas Front
Office in Rhode Island

Delivery of Gas Front
Office reporting/analytical
capabilities

Delivery of Electric Front
Office reporting/analytical
capabilities

“Go Live” for Gas Front
Office (remaining
geographies)

“Go Live” for Electric
Front Office
Migration of Long Island
Gas customers from CAS
to CSS
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Electric
Front Office
Electric
Front Office
Electric
Capability
Enablement
Electric
Front Office
 Start of back
office detailed
design &
testing
Electric
Front Office
 Back Office
Design
Degree of Enablement
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Implemented
Roadmap
Implementing the routemap over time will lead to a fully integrated operating model
Leadership
Level 2:
Business
Functional
Enablement
Leadership
Level 3:
Individual Capability
Enablement
Today
IT Enabled
Business Performance
Leadership
Level 1:
Enterprise-wide IT
Enablement
Back Office
Customer
Gas
Electric
Value Creation
Opportunity
Finance
Marketing/Sales
HR
Customer Service
Supply Chain
Billing
GIS
GIS
Credit/Collections
Mobile/Dispatch
Mobile/Dispatch
Reporting
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Asset Mgmt.
Work Mgmt.
Asset Mgmt.
Work Mgmt.
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Standardized data supports the business basics for effectively and efficiently running
the internal core processes and producing required external reporting/information
External
Customer
Regulatory
Financial
Reporting
Asset Tracking, Maintenance
Operations
WM / Asset
Tracking
Work Scheduling , Dispatch
Procurement, Inventory
Talent Management
HR
Back Office
HR Services
Cost Allocation Rules
SCM
Finance Closes and Statements
Finance
Chart of Accounts
The end result is elimination of significant complexity across the business and greatly reduced work.
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Deployment Scenario Analysis
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The deployment routemap strikes a balance between maximizing business value and
managing implementation risk/cost
Pressure to Increase Scope
Pressure to Reduce Scope
Strategic
Considerations
Implementation Risk
Maximize speed to value given
the constraints of deployment
Functional Scope
Decision
Business Value
Cost
The routemap sets a strategic direction. Each major release will be approved before execution.
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Four primary scenarios were considered
Scenario 2
Scenario 1
R-1
R-2
BO
Gas
FO*
Gas
Cust
Elec
FO*
Elec
Cust
R-3
R-2
R-1
R-3
BO
RI
Gas
FO*
RI Gas
Cust
Gas
Cust
Gas
FO*
Elec
FO*
Elec
Cust
Scenario Name: Back Office Focus
Scenario Name: Fully Integrated Pilot in Rhode Island
 Release 1 - Back Office Only
 Release 1 - Back Office; Rhode Island Gas Front Office and
Customer
 Release 2 - Gas Front Office and Customer
 Release 2 – Gas Front Office and Customer For Rest of
Geographies
 Release 3 - Electric Front Office and LIPA Electric Customer
Scenario 2A
Scenario 4
R-3
R-2
R-1
BO
RI
Gas
FO*
RI Gas LI
Cust Gas
Cust
R-4
R-1
Gas
FO*
Gas
Cust
Elec
FO*
Elec
Cust
Gas Cust
Elec Cust
BO
R-2
RI Gas
Cust
Scenario Name: Fully Integrated Pilot in Rhode Island and
Long Island Gas Customer
 Release 1 - Back Office; Gas Front Office and Customer (Rhode
Island) and Long Island Gas Customer
R-3
RI
Pilot*
Gas
FO*
Elec
FO*
Scenario Name: Parallel Customer
 Release 2 – Gas Front Office and Customer for Rest of
Geographies
 Release 1a – Back Office
 Release 2 - Gas Front Office Starting with RI Pilot
 Release 1b – Rhode Island Gas Customer in Parallel with R1a
 Release 3 - Electric Front Office
 Release 4 – Remainder of Gas Customers and LIPA Electric
*Note: Front Office includes asset, work, dispatch and mobile in all scenarios
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Scenario 1* – Back Office Focus
R-3
R-2
R-1
Gas Front
Office
Back Office
Gas
Customer
Electric
Front Office
Electric
Customer
(LIPA)
 # of Applications Retired = 32
 # of Interfaces Retired = 126
 # Throw Away Interfaces = 67
Pros
Cons
Addresses critical financial and regulatory
reporting issues

Provides Back Office functionality only

Delays addressing critical customer issues

Has smallest design and implementation
scope which reduces effort and risk

Requires significant initial engagement of
the Front Office Gas and Electric business
with delayed realisation of capabilities

Provides Electric business time to
assimilate process and system changes
required

Temporary disconnect of shared
operations (e.g., meter services)

Has high number of “throw away”
interfaces that will have to be redone

Partial forfeit of regulatory incentives due
to lack of implementing new Customer
system in LI

Key Considerations / Decisions
 GIS strategy and timing
*Note: All application and interface numbers are preliminary and being further validated for accuracy. Some of the retired interfaces may need to be rebuilt to SAP for future releases.
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Scenario 2* - Fully Integrated Pilot in Rhode Island
R-3
R-2
R-1
Back
Office
RI Gas
Front
Office
RI
Gas
Customer
Gas Front
Office
Gas
Customer
Electric
Front Office
Electric
Electric
Customer
Customer
(LIPA)
Pros
Cons
reporting issues

Larger scope risk than Scenario 1

High number of “throw away” interfaces

Provides standard Front Office and
Customer capabilities to most urgent area
(Rhode Island) in first release

Mobile interfaces with multiple Front Office
systems


Mitigates risk of future deployment through
use of a pilot
Continue to lose regulatory incentive due to
lack of implementing new customer system
in Long Island

required

Temporary disconnect of shared
operations (e.g., meter services)

Gas business will have to provide
significant resources to design, build, test
and train people for the Pilot, but will have
to run out of two systems for some time
until full Front Office and Customer are
implemented in two following releases

*Note: Some of the retired interfaces may need
to be rebuilt to SAP for future releases.
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 Ability to manage a full Front Office and
customer pilot in parallel with Back Office
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Scenario 2A* - Fully Integrated Pilot in Rhode Island and Long Island Gas Customer
R-3
R-2
R-1
Back
Office
RI Gas
Front
Office
RI
Gas
Customer
LI
Gas
Customer
Gas Front
Office
Gas
Customer
Electric
Front Office
Electric
Customer
(LIPA)
Pros
Cons

reporting issues

Increased business, delivery and technical
risk compared with Scenario 1 and 2

Provides standard FO and customer
capabilities to most urgent areas (RI) in
first release


Regulatory incentive from moving LIPA
customers from CAS to another customer
system
Implementation complexities across several
customer systems involved in moving to a
common strategic platform for both RI and LI
Gas (CAS, CRIS, Advantage, CSS)

Requires initial Back Office processes and
systems to consider integration of three sets
of business requirements (RI/LI, remainder of
Gas, all of Electric) – significant effort
required from business resources but full
capabilities will be delayed

Largest impact of temporary disconnects of
shared operations (e.g., meter services)

Mitigates risk of future deployment through
use of pilots

required
*Note: Some of the retired interfaces may need to be rebuilt to SAP for future releases.
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 Ability to manage an even larger scope full Front Office and Customer pilots than
Scenario 2 in parallel with Back Office
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Scenario 4* - Parallel Customer
R-4
Gas Customer
R-1a
Electric Customer
R-2
Back Office
R-3
Electric
Front Office
Gas Front Office
R-1b
RI Gas Customer
Pros
Cons

reporting issues

Delivers solution to critical Customer
issues in Rhode Island in parallel with back
office

Creates significant challenges integrating
current Front Office applications to new Back
Office and customer platforms/solutions

Delay in migrating non-Rhode Island Electric
and Gas customers to same platform

Smaller and less complex scenario than
Scenarios 2 and 2A

Temporary disconnect of shared operations
(e.g., meter services)

required

Significant business and technical complexity
related to temporary Gas processes and
systems interfaces

Potential for regulatory incentive from
moving LIPA customers from CAS to
another customer system
*Note: Some of the retired interfaces may need to be rebuilt to SAP for future releases.
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 Delays integration of evolving Smart Grid
capabilities until late in Release cycle
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Scenario Analysis: Value-Risk-Cost Scoring Model
Score 5 = Good
Score 1 = Bad
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Core Assumptions for the Routemap Timelines
These planning assumptions need to be validated and/or adjusted to ensure viable timelines are
established
 A sufficient number of people with the right skills will be available throughout the proposed routemap
timeline
(NG business and IS, 3rd party)
 Reducing work stream overlap lowers risk, but significantly extends the implementation time
 A PMO function will guide the overall routemap
– Coordinate work streams
– Ensure right resources are mobilized and ready when needed
 There will be a “single drop” of Back Office capabilities delivered (detailed design will confirm this
assumption)
 Final timeline will reflect impacts of rate case filing schedule and other key reporting requirements
(analysis currently underway)
 Resource planning assumes a 3-6 month stabilisation period following each release “go live” date
 Electric and Gas will work jointly on initial planning for Front Office
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There may be temporary dis-integration of some existing processes / applications in
the outlined scenarios – and interim stage choices to be made.

Certain Gas and Electric processes are integrated in Upstate NY and Long Island; migrating Gas to a new platform independent of Electric
may disrupt synergies on these combined processes/systems.

Migrating Long Island Gas onto a new platform without the rest of KeySpan will temporarily increase the number of systems being
managed by KeySpan for certain functions.
Scenario
Scenario 1
Back Office Focus
Scenario 2
Fully Integrated Pilot
in RI
Scenario 2A
Fully Integrated Pilot
in RI + LI Gas
Customer
Scenario 4
Parallel Customer
RI/GD
NG/GD
NG/ED
NG/ET
KS/GD
LIPA
KS/Gen
Gas
Distribution
Gas
Distribution
Electric
Distribution
Transmission
Gas
Distribution
Electric
KeySpan
Generation
Work Management 1 STORMS/iSchedule
Meter Services 2 AMS/ERT/METRETEK
Meter Services 2
RUD 3
MITS/AMS
MAXIMO
Meter Services 2
RUD 3
MITS/AMS
MAXIMO
RUD 3
Meter Services 2
Work Management 4 CWQ
MITS/AMS
MAXIMO
Contract Management 5 CCH
Meter Services 2 MITS/AMS
RUD 3
MAXIMO
1. Work orders are shared between electric and gas on the work management support system (STORMS/iSchedule) in National Grid(NYS).
2. Shared meter service systems MITS/AMS in NG (NYS) and AMS/ERT/METRETEK in KSE(LI) between electric and gas with plans for further expansion.
3. Shared RUD (Residential underground digging/development) process on MAXIMO between electric and gas in KSE(LI).
4. The Long Island Gas work management process will be separated out of existing KeySpan Gas applications and the scheduling will be on two work management systems instead
of one CWQ system.
5. If contractor management is not rolled out for both lines of business at the same time, the contractor management will be on two contractor management systems instead of one
CCH system. .
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Attachment AG-4-1
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We identified 38 burning platform applications - 10 of these are high priority to
address and most will be migrated as the chosen scenario is implemented
Application
Name /
Description
Description
Impact on
business
Advantage
(aka-Banner)-RI
The purpose of this application is to
maintain all customer information.
This system is really the hub for all
customer information. All of the
customer billing, meter reading, order
processing…..etc is controlled
through this application.
2
Nucleus
3
TES
No.
1
4
CAS-LI
5
Maximo
Corporate
6
7
Architecture
/ technology
fit issue
Production
stability
Limited
skills
availability
SW vendor
support
issues
High


The risk system (Nucleus, Analytics,
WeatherDelta and related interfaces)
supports hedging activities (financial
derivatives) and the purchase/sale of
physical commodities. The system is
used for financial reporting, invoicing,
determining cost of gas. As of Jan.
2006 Nucleus is used to capture all LI
and NY physical gas transportation
and to perform month end settlement.
Application to monitor risk & exposure
in commodity trading systems.
High


Time entry system for NG US
High




Does not
meet
business
needs
Limited
flexibility
Overall
Priority
Operational
Cost
($ ‘000)


High
47.8


High
780.5

High
59.6

High
N/A

LI Gas and Electric Customer Billing
High
Corporate instance to facilitate Oracle
integration.
High



High
11.2
Maximo NE
NE Gas Work Management
High



High
301.5
Maximo T&D
T&D Work Management for
electric/Gas LI & NYC
High



High
652.5
High



High
106.5
High



High
115.8
High


High
1041.9
8
LMS-NY
A T&D leak tracking system that
records the life cycle of a leak.
Functions include work generation,
work scheduling, PSC and internal
compliance reporting and a repository
of reading history.
9
LMS-LI
Leak Management System- Long
Island
10
PeopleSoft HR
NG
Complete HR, Admin, benefits – NG
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Attachment AG-4-1
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Business Imperatives and Capabilities
D.P.U. 15-155
Attachment AG-4-1
Page 30 of 84
These strategic business imperatives and drivers were developed from the executive
interviews and used to develop the target architecture and deployment scenarios
Strategic Considerations / Business Imperatives
 Portfolio Management: Create a portfolio of businesses that consistently deliver s compelling IRR performance. Divest and acquire as
necessary
 Customer: Create industry leading customer satisfaction by optimizing the customer experience within and across Gas and Electric
 Rate Filings / Revenue: Optimize the effectiveness and efficiency of rate filings
– Efficiency/productivity : Rate filing cycle improvement, Cost allocation capabilities, Work productivity to prepare a cases
– Effectiveness; Regulatory Relationships, Quality of information, strategic timing of filings, people skills
 Reliability & Safety: Improve reliability levels and safety levels
 Compliance: Optimize Regulatory and Financial Compliance including IFRS compliance alignment with GAAP
– Efficient, audits, regulatory reviews
– Stable credit ratings
– Banking / Bond covenants
 Operating/Management: Drive effectiveness and efficiency through a LOB structure and common operating model.
– Leverage common whenever possible.
– Establish transparency to cost and operational data to support effective management and continuous improvement
– Operational effectiveness and efficiency through common process, standardization and policies to enable the operating model
 People: Efficiently source, track and develop talent to support the business’ ability to operate and deliver services
 Cost: Consider alternative Sourcing to create more variable costs and take advantage of scale
 Capital Management: Optimize Capital Investments to maintain/enhance reliability and plan financial projections and performance metrics
 Asset & Work Management: Optimize utilization/performance, transition and replacement of assets and enable efficient, seamless delivery of
work in the field
 Funding Alternatives: Effectively leverage regulatory and federal options for further capital investments (e.g. Smart Grid, Energy Efficiency,
Alternative Energy, etc.)
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Business Imperatives and Capabilities – Finance
Business Imperatives
Portfolio Management
Customer
Rate Filings / Revenue
Business Capabilities Shared Services – Finance
 Planning & Decision support
– Global chart of accounts/code block across all the legal entities in line with Hyperion
Enterprise and mySAP for consolidated global reporting
– Planning tool which can be operated in parallel for planning, budgeting, forecasting and
in one system to aid accelerated decision making and forecasting with central point of
access for global planning
– Regulatory view of planning
– Ability to automatically report on multiple dimensions to support managerial decision
making – e.g. company code, region, group, department, cost center, segment etc.
Reliability & Safety
 Regulatory information
Compliance
Operating / Management
– Transparency and visibility of derived regulatory information for regulatory compliance.
Including allocations meeting regulatory and management reporting requirements
– Standardized and common allocation process to ensure accuracy, auditability and
traceability of allocations and direct charges back to initial source (retail & service
companies)
 External reporting and compliance
People
– Ability to run financial reports applying variety of accounting principles, GAAP, IFRS, etc.
– Optimize effectiveness and efficiency of rate fillings
– Legal entity financial reporting . Financials reporting produced for each individual legal
entities (banks, leasing companies, etc
Cost
– Single source central repository of quality information for external reporting
 Treasury & Asset
Capital Management
Asset Management
– In-house cash management with long-term investment and debt management including
derivatives, capital markets, etc. Application seamlessly integrated with energy
commodity trading system
– Single asset register with portfolio management
Funding Alternatives
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Attachment AG-4-1
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Business Imperatives and Capabilities – Supply Chain
Customer
Compliance
People
Cost
Capital Management
Asset Management
Business Capabilities Shared Services – Supply Chain
 Procurement
– Automated material replenishment driven by accurate updated work and asset
management demands, ex – Approved work order (WO) creates demand for
breakers to be delivered next wed at remote staging site XYZ. Safety Stock
inventory setting triggers reorder of minimum qty of breakers
– Ability to forecast and plan material requirements for work orders and construction
projects in the short, medium and long term, ex- Long lead/high dollar substation
transformers ordered against capital project work order
– Integrated investment recovery process – ex. ‘Dismantled’ assets are tracked and
stored for aftermarket resale. Process is linked to end of life financial asset
depreciation process
– Seamless operation, allocation and recharges for service companies, ex – WO cost
allocations push cost of issued materials to the WO, then allocate cost to responsible
business unit that initiated the work request
– Accurate identification and tracking of meters, ex- Serialized meters are entered into
the system when receipt occurs at the warehouse and are tracked via WOs thru to
the installation and activation at the premise
– Timely vendor payment to maximize discounts, ex – On a WO requiring contractor
services, contractor updates system that work has been performed (20 poles set),
foreman acknowledges in the system that work is satisfactory, so when bill arrives if
all matches, payment in initiated automatically and discount agreement met
– Effective reporting and benchmarking of vendor performance, ex – Shipment quantity
and quality variations to order are noted, tracked per incident and reported back to
vendor for relief, discounts or vendor placement on disallowed list – proactive
management of vendor performance is standard
– Global view of contractor management, ex- During an outage or major construction
job, Contractors are fully integrated into the process of planning and executing work.
They follow standard processes, access to NG systems are controlled, reporting of
work progress is consistent and performance of contractor is consistently visible
across NG
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Attachment AG-4-1
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Business Imperatives and Capabilities – Supply Chain
Customer
Compliance
People
Cost
Capital Management
Asset Management
Business Capabilities Shared Services – Supply Chain
 Inventory
– Standard Material Master records across NG US, ex – a 50hp Gould pump is the
same Material ID across all of NG US
– Accurate tracking of new vs. refurbished equipment / inventory, ex- manage
visibility of new vs a refurbished piece of equipment, so where applicable a
Work Management planner can use a pump that is rebuilt, vs an application that
may need a more reliable ‘New’ piece of equipment – this also must be able to
show differences in valuation for depreciation purposes
– Ability to view parts inventory and availability in a single system , ex – Work
Management planners will need to see an accurate count of ‘Available’ materials
they need for a job. If that specific transformer is not available in the warehouse
and is accurately reflected in inventory that he can see in the system, then the
job may be pushed back to a later date, or he may need to make phone calls to
track down what is really available
– Complete visibility to inventory availability and ability to transfer between Legacy
Companies, ex- legacy Keyspan may need a part from legacy Gris – the
reservation, transfer and financial reconciliation of this must be fully defined and
enabled by the application
– Automation of crew barn stock replenishment (PAR) , ex – ‘Van Stock’ is an
important capability of servicing our customers while out in the field – the
consumption and replenishment of this inventory must be well controlled to make
sure needed parts are readily available
– Intelligent Inventory management is required in all storage locations, ex – only
those parts that are needed to be on hand should even be set up in the
warehouse – safety stock level would be managed to minimize carrying cost of
inventory and reorder logic is based on economic order quantities, order delivery
and stocking lead times, etc
– Fully integrated mobile technology , ex – Mobile technology needed to effectively
manage cycle counting and all material movements
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Attachment AG-4-1
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Business Imperatives and Capabilities - HR/Payroll
Business Capabilities Shared Services – HR/Payroll
 Talent
–
Customer
–
–
–
–
–
Compliance
–
 HR Services
–
–
People
Cost
Effective support of LOBs by HR Centers of Excellence (COEs) regarding business Compensation, Org
Design and Talent issues/programs through effective and efficient processes, systems and data
Effective Partnering of LOB’s with HR Business Partners to enable HR’s support of critical business
imperatives
Delivery of efficient and comprehensive Global Succession supported by consistent data capture and
analysis providing the business the ability to be agile and responsive to changes in Leadership
Delivery of efficient and comprehensive Global Performance Management enabled by consistent data
capture and efficient platform enabling communication between employees, managers, and HR. Assist in
building solid platform for integrated Global Talent Management programs and linkage to Rewards and
Compensation
Effective Compensation and Rewards Program to support Global Talent Management initiatives including
linkage to Performance Management
Integrated recruitment processes across lines of business to speed time to hire and support regulatory
reporting. Provide Talent to organization in more timely, efficient manner.
Global Learning Management - Delivery of training to organization such as Technical Training,
Leadership and Executive Development and Personal Effectiveness
–
–
–
–
Capital Management
–
Asset Management
–
–
–
Enable an efficient and effective HR Transactional Service Center to support employees and the LOBs
and reduce redundancies in Payroll, Time, Benefits processing and HR Reporting
Efficient and consistent Time & Payroll Processes that reduce administration and support regulatory and
various labor requirements
Build a foundation to support benefit administration outsourcing
Employee and Manager Self - Services allowing managers to view and manage staff data and allowing
employees to maintain their personal and career data
Consistent Workforce Training Tracking establishing clear processes enabling course booking and
tracking. Foundational element to building a world-class Learning Solution
Effective Case Management providing capability to manage, track, route and escalate cases reported to
newly consolidated HR Transaction hub
Ability to support Labor Relations regarding the tracking and reporting of employee grievances and
incidents
Effective Knowledge and Document Management
Global position management
Ability to support Health and Safety through safety incidents tracking and reporting, consolidation of
medical records, drug testing schedules and results, MSDS - safety data sheets for material, hazmat
related information
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Attachment AG-4-1
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Business Imperatives and Capabilities – Fleet
Business Capabilities Shared Services – Fleet
Customer
Compliance
People
Cost
Capital Management
 Fleet
– Visibility of Fleet availability for work management , ex – it’s critical that work
management planners and foreman know on a daily basis what trucks are available
for crews to use and what specific equipment these trucks have on them (two man
bucket truck, etc..). These trucks must be visible in the work order planning system
to enable assignment to specific jobs
– Single point of capture for Fleet maintenance time reporting, ex – Integrate time
charges for fleet usage into the ‘One time data entry’ of work hours on the job , so
that charging of fleet costs are consistently incurred by the job that used the vehicle
– Consistent approach for "Fleet Billing" , ex – all vehicle costs allocated to the job that
used them including actual hourly/daily rate plus overheads – cost will flow to the
work order then settled to the project or cost center that initiated the work request
– Single Fleet asset register, ex – all Fleet assets are consistently defined in a central
system including equipment class, subclass and attribute data, like tonnage, engine
type, working voltage rating, one/two man bucket, 4/6 wheels, lift reach, etc.
– Common Fleet budgeting process, ex- integrated Capital and O&M budgets for fleet
group defined and measured via work order settlements and project costs
– Integrated data from outsourced fleet systems (fuel, body work, repairs under
warrantee, etc) , ex – All fuel and external maintenance charges allocated to specific
asset, to enable accurate view of total cost of ownership of vehicle
– Capture all maintenance history on the vehicle, ex- work orders initiated and planned
against a specific vehicle to enable capturing of all history of work performed and
related costs
– Comprehensive Prev/Pred maintenance strategies, ex – plan and perform routing
maintenance on vehicles including oil changes, tune ups, tire replacements, seasonal
adjustments, etc.,
Asset Management
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Attachment AG-4-1
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Business Imperatives and Capabilities – Management / Regulatory Reporting
Business Capabilities - Management / Regulatory Reporting
Customer
Compliance
People
Cost
Capital Management
 Strategic Planning / Financial Reporting*
– Strategic Planning Process Support
 Ability to efficiently create a consolidated group level plan without excessive
complexity and manual work. (E.g. four runs at the plan last year)
 Need to support a two year plan that links to 5 year strategic plan enabled
by “bridges” between systems
– Cost Allocation Capability
 Efficient and repeatable set up of cost allocations
 Ability to easily make ongoing adjustments to back office cost allocations
assumptions without delay (e.g. wages, timing, etc.)
 Adjust Pension rates to support recovery
 Capital rationalization decision support
 Regulatory Reporting
– State Level Regulatory filing/financial reporting
 Accuracy and ability to move into a regulatory filing.
 Ability to “drop” the financial reporting into the regulatory environment- Risk
that NG misses a State level gas distribution rate filing
 Information/Performance Management
– Basic Management Reporting, Reconciliation and Transparency:
 Headcount-- Correlate FTE statistics to Op Ex and bills
 Costs transparency- IT costs, operational costs etc.
 Drill down capability to conduct basic business analysis
* Specific reporting required by functional areas/LOBs is included in those
capability groups
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Attachment AG-4-1
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Business Imperatives and Capabilities – Gas Front Office
Business Capabilities – Gas Front Office
Customer
 Work Management
– Ability to plan and manage all required resources for a job in one centralized system,
including – Internal/External Labor, Materials, Vehicles, Engineering, Operations,
Environmental, Safety, Permits, Special Equipment, Tools, Work Clearances, etc.
– Common work Planning, Approval, Scheduling, Execution and Close out business
processes , ex – Standard order types, priorities, status management, workflows,
approval limits, etc
– Customer focused processes integrated with the Customer system and GIS processes,
ex – Developer requested design estimate options visible to CSR when builder calls for
status update
– Integrated Time reporting system, ex – Enter hrs worked on WO one time – system
updates WM system and Payroll at the same time
Compliance
People
Cost
Capital Management
– Mobile enabled business processes, ex – Enter hrs remotely, close jobs, document
history , start next job, etc..
– Work Order cost collection and settlement fully integrated with financial system, ex – Per
work type, activity, time of day, customer type, location, etc., apply specific labor, vehicle,
contractor, tool, etc..costs, related overhead allocations and settlement to cost centers or
project WBS in the financial system
– Common Gas Performance Measurement KPIs, ex – Late starts, Plan vs. Actual cost
variants, % Planned vs. Reactive Maintenance, etc
– Integrated Capital Spend Program , ex – Capital Project review and approval process that
controls all capital work, using consistent approval criteria, funding gates, variance
reporting and provides detailed cost visibility of all planned commitments and actuals real
time
– Fully integrated Resource Scheduling application , ex - Crews/Crafts and truck pairing
ability identified in the system with specific training and certifications , equipment –
availability is integrated to HR work schedules, leave, etc. and Fleet mgnt system to show
true recourse availability each day for assignment to short duration work
– Standardized Repetitive work job plans, ex – Pump overhaul can be ‘Pre-planned’, then
copied into the work order whenever it is needed
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Attachment AG-4-1
Page 38 of 84
Business Imperatives and Capabilities – Gas Front Office . . . continued
Business Capabilities – Gas Front Office
Customer
Compliance
People
Cost
Capital Management
 Asset Management
– Standard Location and Asset Hierarchy definition s, ex – Hierarchical representation
of locations where equipment is installed. Logical breakdown of storage facilities,
pumping stations, transmission lines, distribution lines and meter to the premise –
standard representation of equipment linked to subassemblies and spare parts lists
– Common Location and Equipment data records, ex – Locations show common
geospatial coordinates shared with GIS system and customer records, containing
required data fields like description, main ID, etc. Equipment records also had
required data fields like make, model, manufacture, class, subclass and attribute
specific details (materials of constructions, size parameters, etc)
– Integrated Asset and Work Management history, ex – Work orders are written
against a primary Equipment record (mandatory design setting), thus linking all work
history to that equipment record – including specifics related to costs, failure type
cause codes, parts replaced, etc.
– Standardized Prev/Pred Maintenance plans per critical Equipment Class and SubClass, ex – Reliability Engineers define ‘Critical’ equipment and the specific
maintenance steps that need to be performed on regular basis – they then monitor
performance of these periodic work orders and analyze results of repair/maintenance
trends to insure highest reliability of these assets
– Integrated GIS, Asset and Work Management processes, ex – Define shared data
required to be consistent in all three of these systems to enable clear visibility of
failures occurring and activities performed across al assets
– Asset Management Strategy driven - Equipment trend analysis, ex – Strategy
developed to move entire fleet of assets to a more reliable mode . Should define how
the organization will move away from ‘Reactive’ maintenance into more of a mode of
planned, controlled and much less costly maintenance of all assets
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Attachment AG-4-1
Page 39 of 84
Business Imperatives and Capabilities – Electric Front Office
Business Capabilities - Electric Front Office
Customer
Compliance
 Work Management
approval limits, As-Built updates, etc
– Common and consistent experience for customers (from call to execution in the field).
Customer focused processes integrated with the Customer system , GIS , Outage
management and Work Management processes, ex – Road widening job, integrates
planning with DOT, designers, Joint use partners, GIS changes if required, work crews
dispatched and potential OMS adjustments, while all cost for this work are captured and
efficiently billed to DOT
– Enablement of Operating Model – Including consolidation of Design centers (3 locations),
Oder fulfillment function and scheduling short cycle work
– Mobile enabled business processes, ex – Enter hrs remotely, close jobs, document
history , start next job, etc..
People
Cost
– Free up analysts to perform ‘Analysis’ and not data crunching and manipulation Common ED&G Performance Measurement KPIs, ex – Late starts, Plan vs. Actual cost s,
% Planned vs. Reactive Maintenance, crew utilization, poles set per day, etc
Capital Management
– Fully integrated Resource Scheduling application , ex - Crews/Crafts and truck pairing
ability identified in the system with specific training and certifications , equipment –
availability is integrated to HR work schedules, leave, etc. and Fleet mgnt system to show
true recourse availability each day for assignment to short duration work
– Consolidation of control systems (EMS, DMS, OMS)
– Goal of unlocking value and release of productivity, understanding Bargaining Unit
agreements and their impacts
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Attachment AG-4-1
Page 40 of 84
Business Imperatives and Capabilities – Electric Front Office . . . continued
Business Capabilities – Electric Front Office
Customer
Compliance
People
Cost
Capital Management
geospatial coordinates shared with GIS system and customer records, containing
required data fields like description, voltage, circuit ID, etc. Equipment records also
have required data fields like make, model, manufacture, class, subclass and
attribute specific details (materials of constructions, size parameters, etc)
against a primary Equipment record (mandatory system design setting), thus linking
all work history to that equipment record – including specifics related to costs, failure
type cause codes, parts replaced, etc.
– Integrated GIS, Asset and Work Management processes, ex – Define shared data
required to be consistent in all three of these systems to enable clear visibility of
failures occurring and activities performed across al assets
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Attachment AG-4-1
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Business Imperatives and Capabilities – Transmission
Business Capabilities - Transmission
Customer
Compliance
 Work Management
approval limits, etc
– Integrated Time reporting system, ex – Enter hrs worked on WO one time – system
updates WM system and Payroll at the same time
– Capital Project Management processes filly integrated with the Corporate Budgeting,
Investment Management program and Project WBS/Work Order lifecycle processes, ex
Approved funding for transmission line extension project has phased budget amount
which is consumed as work progresses – all visible in one system
– Mobile enabled business processes, ex – Perform inspection remotely, enter hrs, close
jobs, document history , start next job, etc..
People
– Common Transmission Performance Measurement KPIs, ex – Late starts, Plan vs. Actual
cost variants, % Planned vs. Reactive Maintenance, etc
Cost
Capital Management
– Integrated Capital Spend Program , ex – Capital Project review and approval process that
controls all capital work, using consistent approval criteria, funding gates, variance
reporting and provides detailed cost visibility of all planned commitments and actuals real
time
– Fully integrated Resource Scheduling application , ex - Crews and helicopter pairing
ability identified in the system with specific training and certifications (bird on a wire
inspections) , equipment – availability is integrated to HR work schedules, leave, etc. and
Fleet mgnt system to show true recourse availability
– Standardized Repetitive work job plans, ex – Insulator replacement job can be ‘Preplanned’, then copied into the work order whenever it is needed
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Attachment AG-4-1
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Business Imperatives and Capabilities – Transmission . . . continued
Business Capabilities - Transmission
Customer
Compliance
People
Cost
Capital Management
geospatial coordinates shared with GIS system and distribution substation records,
containing required data fields like description, voltage, circuit ID, etc. Equipment
records also had required data fields like make, model, manufacture, class, subclass
and attribute specific details (materials of constructions, size parameters, etc)
against a primary Equipment record (mandatory design setting), thus linking all work
history to that equipment record – including specifics related to costs, failure type
cause codes, parts replaced, etc.
– Integrated GIS, Asset and Work Management processes, ex – Define shared process
and data required to be consistent in all three of these systems to enable clear
visibility of failures occurring and activities performed across al assets
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Attachment AG-4-1
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Business Imperatives and Capabilities – Customer
Business Capabilities - Customer
 Cross Customer Operations
Customer
Compliance
People
– Provide greater ability for first contact resolution and shorter cycle times. Achieve
visibility of work to facilitate communication with customers
– Stabilize the customer information system in Rhode Island Gas. For the last couple of
years Rhode Island Gas customer service have been suffering among other reasons
due to the instability of the CIS "Advantage". Lately a number of fixes have been
applied to the system, but in average the system keeps failing two to three times per
month
– Ensure that the skills to operate and maintain the customer systems platform exist in
the future. The company should maintain a support organization and make sure that
there will be future generations available to maintain and operate the customer
platforms
 Billing
– Proactive coordination of rate cases – equitable cost recovery and industry
leadership.
– Ability to adopt and implement changes to rates (Price, Weather usage, etc..) and
comply with rate cases
Cost
Capital Management
– Achieve common bill presentment / household capability to help increase customer
satisfaction
– Achieve automation in billing the largest accounts to avoid errors and increase
productivity
– Provide the ability to perform Summary Billing for all lines of business
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Attachment AG-4-1
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Business Imperatives and Capabilities – Customer . . . continued
 Customer Care
Customer
– Provide a consistent Customer experience reflecting the National Grid brand. Provide
cross LoB collaboration to deliver enhanced customer service. Being able to track a
customer thru their entire lifecycle with NG
– Provide multiple channels available to improve access and customer service and to
reduce costs . Develop and implement mechanisms that will allow NG's customers to
establish a closer relationship with the company and also so they can perform more
activities independently (i.e. Customer self service, IVR / CTI, electronic bill
presentment, etc.)
Compliance
People
Cost
– Provide access to and frequency of Outage information updates. Make it easy for
Customer Agents to view and use information and make sure that the information is
aligned for phone and web use.
– Integrate outbound notification calls into outage update communications (both for
planned and unplanned)
– Build a robust Knowledge Management system to increase efficiency of contact
center staff and to increase consistency of information and treatment with customers
– Develop an e-business platform capable of providing all around e-services that
includes all of National Grid stakeholders (e.g. customers, contractor electricians,
plumbers, etc) to be able to do business with NG more efficiently
– Provide the ability for NG’s customers to only have to do business with one contact
center for gas and electric
Capital Management
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Attachment AG-4-1
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Business Imperatives and Capabilities – Customer . . . continued
Customer
 Account Management
– Improve and increase the mechanisms for customers to make payments
– Eliminate or greatly reduce the operational issues causing customer dissatisfaction in
the area of payment processing (miss-applied payments)
Compliance
People
Cost
– Address bad debt mitigation. Having the tools and processes to correctly forecast,
report and control bad debt in all CISs
 AMI – Smart Metering
– Ensure that the Customer Operations business processes and technological
platforms support NG in becoming a leader in the Smart Grid arena. – Pending
conversation with AMI Group
 Marketing
– Achieve an efficient customer management capability for Marketing
 Reporting / Analytics
– Have the ability to perform basic business analysis by being able to drill down to the
details of business transactions
– Provide ability to manage performance. Currently unable due to different systems
holding all master and transactional data, also due to data integrity issues
– Achieve consistency in the financial reporting and controls
Capital Management
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Attachment AG-4-1
Page 46 of 84
Application Migration Impact Analysis
D.P.U. 15-155
Attachment AG-4-1
Page 47 of 84
US Application Landscape - Current State
RI
Distribution
Gas
Electricity
Gas
RI, NH
MA, NYS
RI
RI
Distribution
Gas
US KSE
US T&D
NYS
Electricity
LIPA
Gas
NH, MA
NYC, LI
LI
Contract
Management
US KSE
US T&D
Electricity
PeopleSoft
Gas
ACIS
Electricity
LIPA
Gas
Maximo (NE)
CCH (LI, NYC)
Oracle
Mwork (FFE)
Mobile
PCAD
MDSI
Syclo
GIS
HR
ESRI (NE)
NRG (LI/NYC)
GE/SW
ESRI
Asset
Repository
GE/SW
GE/SW
GASCAR
PowerOn
TOA
LTS
ESRI NRG
DIS SPIPE
GE/SW
OMS
Financial
Consolidation
Data Warehouse/
Reporting
Customer Billing
CARES
iSchedule
Planning
Scheduling
CWQ
STORMS
Maximo
Maximo
BassTrigon
CHI VMS LNG
Asset
Management
Maximo
Computapole
Maximo
Maximo
FIS CHI VMS
BassTrigon
(1.LI, 2.NE, 3.NYC)
BassTrigon
(Procurement,
Stores,
Financials)
Hyperion (Essbase / Pillar)
Bobj
Microstrategies
CSS
Advantage
LDCM
Risk Management
Shared with
US T&D?
Vision FM
FleetAnywhere
PeopleSoft / PowerPlant / Manhattan
CAS/EBO
CRIS/CAS
Energy Vision
BMS CMCS
MBS
Market Planning
and Marketing
Maximo
Fleet Anywhere
Oracle/
PowerPlant / Manhattan
RMS
STARS
Outsourced
Nucleus
N/A
(Trading / Marketers)
Energy
Purchasing
Various
Energy Vision
Risk Management
iGMS
EAS
GSA/TSA
N/A
OSS/Cougar
CDW/ISO
Siebel
ONYX
ONYX
iAvenue
Sales
Back
Office
(Customer Credit)
N/A
Work
Management
Fleet and
Facilities
Peoplesoft
LMS
Marketer Billing
Work
Scheduling
PeopleSoft (Mainframe)
Meters
CHI --> NE, RI
FIS --> LI
Legend:
Shared
service
capabilities
- 47 -
ONYX
Siebel
SHES (incident
mgmt / bus. continuity,
emergency planning)
Nucleus
ONYX DWH
MyQuotes
LIMS / EMIS
PCS
N/A
N/A
IMS / Strohl
MITS
ERT
MSS
METRETEK
AMS
AMS
AMS
MDB
D.P.U. 15-155
Attachment AG-4-1
Page 48 of 84
Front Office - Gas
Current State
Mobile
RI
Distribution
Gas
US T&D
US KSE
Gas
Gas
RI
NYS
NH, MA
NYC, LI
Mwork (FFE)
PCAD
GIS
OMS
iSchedule
CWQ
Work
Scheduling
STORMS
Maximo
Maximo
FIS CHI VMS
BassTrigon
(1.LI, 2.NE, 3.NYC)
BassTrigon
Meters
MITS
MSS
METRETEK
AMS
AMS
MDB
US KSE
Gas
Gas
RI
NYS
NH, MA
NYC, LI

Meter Services that are currently
managed using one processes, by the
Gas group

Potential differences in how GIS is
integrated into RI Gas Customer
processes when migrated to CSS

Financial Asset Management
processes and integrated systems
may be effected by the changes in the
Gas Front Office group
SyClo / ClickSW
Common GIS
LMS
BassTrigon
US T&D
Asset
Repository
LTS
CHI VMS LNG
Asset
Management
Dis-integration
RI
Distribution
Gas
GIS
ESRI NRG
DIS SPIPE
N/A
Work
Management
Mobile
GE/SW
GASCAR
GE/SW
OMS
MDSI
ESRI (NE)
NRG (LI/NYC)
GE/SW
Asset
Repository
Work
Scheduling
Target State
ABB
Scenario-Specific
Considerations
SAP – Work Mgmt.
Work
Management
Scenario
Asset
Management
SAP – EAM
Scenario 1
Details

Significant interface design
resources needed from Gas

Earlier realization of benefits for
RI Gas

RI and LI Gas Customers benefit
sooner

Gas resource requirements
more distributed, but benefits will
take longer
Meters
Scenario 2
IS Considerations
Scenario

Schedule Process and System design effort as close as possible on the frontend of this timeline

The use of missions critical, specialized business resources will need to be coordinated carefully
with the business to minimize adverse effect to daily Gas Operations

Simplified, Common and Standardized Processes and Systems Design must be quickly defined,
agreed upon and documented
- 48 -
2A
Scenario 4
D.P.U. 15-155
Attachment AG-4-1
Page 49 of 84
Front Office - Electric
Current State
Target State
US T&D
US KSE
US T&D
US KSE
Electricity
Electricity
LIPA
Electricity
Electricity
LIPA
RI, NH
MA, NYS
LI
RI, NH
MA, NYS
NH, MA
NYC, LI
SyClo / ClickSW
MDSI
Common GIS
Common GIS
PowerOn/
Other
CARES
Mwork (FFE)
Mobile
MDSI
Mobile


In-flight GIS (GESW) enhancements
will need to be considered during the
process and system design
requirements

Mobile ‘Initiatives’ will need to
coordinate efforts with this project as
standards for identifying materials,
contractors, storage locations,
timekeeping, etc will be redesigned
Syclo
GIS
GIS
GE/SW
ESRI
Asset
Repository
Asset
Repository
GE/SW
OMS
PowerOn
TOA
CARES
Work
Scheduling
iSchedule
Planning
Scheduling
Work
Management
STORMS
Asset
Management
Maximo
Computapole
Dis-integration
EFO processes and systems will need
to fully integrate with the new ABB
OMS during these releases
OMS
Work
Scheduling
SAP
Work Mgmt.
Work
Management
Maximo
Scenario-Specific
Considerations
Maximo
Maximo
Asset
Management
Scenario
SAP – EAM
Scenario 1
MITS
ERT
AMS
AMS
Meters



Significant interface design
resources needed from Electric

Electric involved early in design,
but benefits later

Electric involved early in design,
but benefits later

Smart Grid efforts can proceed
with integrating to CSS
Meters
Scenario 2

Details
IS Considerations
Electric FO and Customer process and system integration is critical to the success of this effort –
coordination of this design will require FTE resources from both areas
GIS, Click, Syclo , SAP and CSS system configuration and Master Data design will require new
standards to be developed and followed in many areas
Due diligence of the details behind how legacy systems are working and the full understanding of
the ‘True’ business requirements will drive how quickly these common processes and systems
can be defined and built
- 49 -
Scenario
2A
Scenario 4
D.P.U. 15-155
Attachment AG-4-1
Page 50 of 84
Customer
Current State
RI
Distribution
Gas
RI
Customer Billing
Dis-integration
US KSE
US T&D
Electricity
Gas
RI, NH
MA, NYS
Advantage
NYS
CSS
Electricity
LIPA
(incident mgmt /
bus. continuity,
emergency planning)
NH, MA
NYC, LI
CAS/EBO
CRIS/CAS
LIMS / EMIS
PCS
N/A
Long Island Gas and LIPA share the
use of CAS. If operations remain
under NG, a decision will need to be
made to avoid disintegration of
operations by temporarily having two
CIS platforms for one supporting
group.

The decision of which CIS will become
the long term platform might impact
the selection and deployment effort of
the CRM Application

A number of capabilities impacting the
Electric line of business might be
postponed to cover the urgencies in
the gas customer operations
Gas
LI
SHES

N/A
IMS / Strohl
RI
Distribution
Gas
RI
Target State
Target
State
US T&D
Electricity
RI, NH
MA, NYS
Gas
NYS
US KSE
Electricity
LIPA
Gas
NH, MA
NYC, LI
LI
Scenario-Specific
Considerations
Customer Billing
SHES
CSS or SAP
CAS
CSS or SAP
(incident mgmt /
bus. continuity,
emergency planning)
Scenario
Scenario 1
Does not address the urgency of
replacing RI-Gas CIS (Advantage)
Scenario 2
Early integrated Customer platform
to provide the baseline for future
deployments
Scenario 2A
Addressing technical (RI) and
regulatory (LI) requirements, but
demands big effort in terms of
resources
Scenario 4
Addresses technical urgencies as
well as integrated deployments with
FO
IS Considerations

Before deciding to migrate CRIS a decision should be made on which Customer platform will the
long-term choice (CSS or SAP)

AMI (Smart metering) should be coordinated with the CIS migrations to avoid competing
priorities for resources

The company wide e-business platform initiative should be aligned to minimize rework
- 50 -
Details
D.P.U. 15-155
Attachment AG-4-1
Page 51 of 84
Back Office
Current State
RI
Distribution
Gas
RI
Fleet and
Facilities
US KSE
US T&D
Electricity
Gas
RI, NH
MA, NYS
NYS
Shared
with US
T&D?
FleetAnywhere
Back
Office
(Procurement,
Stores,
Financials)
Contract
Management
HR
Financial
Consolidation
Data
Warehouse/
Reporting
Target State
PeopleSoft / PowerPlant / Manhattan
PeopleSoft
ACIS
Electricity
LIPA
RI
Distribution
Gas
Gas
NH, MA
NYC, LI
LI
Fleet Anywhere
Oracle/
PowerPlant / Manhattan
Oracle
Maximo (NE)
CCH (LI, NYC)
PeopleSoft (Mainframe)
Peoplesoft
Bobj
Microstrategies
RI
Dis-integration
Electricity
Gas
RI, NH
MA, NYS
NYS
Fleet and
Facilities

US KSE
US T&D
Electricity
LIPA
No anticipated issues
Gas
LI
NH, MA
NYC, LI
SAP –
SRM
Maximo (NE)
CCH (LI, NYC)
SAP – Fleet Management
Back
Office
SAP – ECC
(Procurement,
Stores,
Financials)
Contract
Management
SAP –
SRM
ACIS
HR
SAP – ECC
Financial
Consolidation
SAP – BPC
Data
Warehouse/
Reporting
Bobj
Microstrategies
Scenario-Specific
Considerations
Scenario
Scenario 1





IS Considerations
HR - Temporary interfaces will need to be designed and built to receive work order time charges from
legacy EAM systems as well as exporting skills data to legacy systems.
FI – Migration path for consolidation / replacement of PowerPlant dependant on impact on legacy work
order systems and development of SAP functionality.
All – Significant modifications to legacy systems during migration to support SAP code block design,
consolidation of material and inventory systems as well as HR Employee data
BI – Need to consider migration to a single Enterprise data warehouse and reporting platform
SC – Selection of a common hardware for mobile / handheld operations in supply chain
- 51 -
Details

Highest regret cost
potential

Challenges with
running a fullyintegrated BO/
FO/Customer for RI
and legacy integration
rest of Gas

Most up-front design
coordination (BO,
Customer, FO)

Most throw-away BO
interfaces
Scenario 2
Scenario 2A
Scenario 4
D.P.U. 15-155
Attachment AG-4-1
Page 52 of 84
Routemap Initiatives
D.P.U. 15-155
Attachment AG-4-1
Page 53 of 84
A set of IS imperatives have been developed that reflect business imperatives/
priorities and IS drivers that impact service delivery efficiency and effectiveness
Portfolio Management: Create a portfolio of businesses that consistently delivers
compelling IRR performance. Divest and acquire as necessary
Customer: Create industry leading customer satisfaction by optimizing the
customer experience within and across Gas and Electric
Routemap IS Imperatives
Rate Filings / Revenue: Optimize the effectiveness and efficiency of rate filings
Create flexible IT architectures that facilitate rapid acquisition or divestiture of
businesses
Reliability & Safety: Improve reliability levels and safety levels
Provide a standard, comprehensive customer application platform that enables
a single view of the customer and enables high value interactions across the
customer lifecycle
Compliance: Optimize Regulatory and Financial Compliance including IFRS
compliance alignment with GAAP
Operating/Management: Drive effectiveness and efficiency through a LOB
structure and common operating model
Create a standardized back office solution that minimizes business risk,
automates manual processes, and integrates with common business
processes for finance, HR and supply chain
People: Efficiently source, track and develop talent to support the business’ ability
to operate and deliver services
Create a common front office solution (asset, work, mobile, dispatch, GIS) that
leverages synergies across the gas and electric businesses
Cost: Consider alternative Sourcing to create more variable costs and take
advantage of scale
Create a standardized set of master data from a common source that
supports key requirements for regulatory, financial and operational reporting
Capital Management: Optimize Capital Investments to maintain/enhance
reliability and plan financial projections and performance metrics
Create an enhanced data governance structure and processes which enable
development and execution of a master data architecture that provides high
quality, standardized and cleansed data across applications
Asset & Work Management: Optimize utilization/performance, transition and
replacement of assets and enable efficient, seamless delivery of work
Funding Alternatives: Effectively leverage regulatory and federal options for
further capital investments (e.g. Smart Grid, Energy Efficiency, Alternative Energy)
Create an enhanced application governance structure and processes that
manage the development and implementation of an application portfolio
strategy and standards across NG
Develop a sourcing strategy to leverage the scale, and competencies of third
parties which can enable lower IS operating expense and higher quality
service delivery
IS Efficiency Drivers
Develop comprehensive program management capabilities to ensure
successful delivery and value realization for the major routemap strategic
programs
Governance: Provide end-to-end oversight on ensuring highest value routemap
applications and data are delivered to the business
Reduced Complexity: Reduce/eliminate redundant systems, data, and manual
processes
Lower Service Delivery Costs: Streamline core NG IS capabilities and utilize
sourcing options for non-core capabilities
- 53 -
D.P.U. 15-155
Attachment AG-4-1
Page 54 of 84
The business imperatives and capability requirements, along with the IS imperatives
have led identification of the following new routemap initiatives*
No.
Routemap Group
Name
Back Office
HR, financial ,supply chain and
fleet migration to strategic SAP
platform
Migration to a standard, single SAP ECC platform; will integrate with existing Powerplant
system(s) for regulatory accounting; also includes a Shared Services SAP business
warehouse (BW) and reporting
Gas Front Office
Asset and work management
migration to strategic SAP
platform
Migrate to standard SAP EAM and Work Management platforms; will include migration of
current Leak Management systems to SAP; expand SAP BW to include GFO; also Includes
re-architecting an already consolidated Gas ESRI into the target architecture
Gas Front Office
GIS consolidation on strategic
ESRI platform
Early migration (ahead of GFO SAP transition) of all Gas GIS from 1). Smallworld 4.0 NE
instance, 2). NRG downstate NY, 3). Smallworld 3.1.2 Up-state NY and KS to existing ESRI
Gas (MA & NH) instance; includes decommissioning of 1 & 2 only
Gas Front Office
Mobile and Meter Services
strategic migration to Click and
Syclo
Migration in 3 phases:
1. Early migration for Rhode Island and Massachusetts (ahead of the main GFO & EDO
transition) to solution set using Syclo and Click for Gas and Electric Metering Services
covering the Call Centre Customer system, Dispatch and Mobile
2. Migration of the remaining States (synchronised with GFO transition) for Gas and Electric
Metering Services (same scope as RI and MA above)
3. All other GFO Mobile and Dispatch solutions to Syclo and Clic
Asset and work management
migration to strategic SAP
platform
Migrate to standard SAP EAM and Work Management platforms; will include project and
alliance construction; expands SAP BW to include EDO
1
2
3
4
5
Description
*Note: Detailed initiative profiles will be developed in immediate follow-on steps
- 54 -
D.P.U. 15-155
Attachment AG-4-1
Page 55 of 84
New Routemap Initiatives - continued
No.
Routemap Group
Mobile and Meter Services
strategic migration to Click and
Syclo
Migration of all non-Metering Services mobile solutions for Electric and Transmission.; will be
synchronised with the main SAP EDO & Tx Front Office transition
GIS migration to strategic ESRI
platform
Migration of legacy Electricity GIS Smallworld to Strategic ESRI solution as part of and at the
same time as the EDO SAP FO transition
Gas Customer
Rhode Island Customer migration
to strategic CSS platform
Early migration from Advantage & LDCM to CSS; includes Advantage & LDCM
decommissioning and changes the interfaces to Metering Services solutions and Back Office;
includes associated Customer Billing and Bill Print
Gas Customer
Long Island Customer migration to
strategic CSS platform
Migration of CAS Gas-only to CSS and changing interfaces to Metering Solutions and Back
Office; includes associated Customer Billing and Bill Print; CAS for LI Electricity customers is
assumed to continue (pending review of LIPA Service Agreement )
Gas Customer
Remaining Customer migrations
to strategic CSS platform
Migration of CRIS Gas-only customers to CSS and changing interfaces to Metering Solutions
and Back Office; includes associated Customer Billing and Bill Print.
CRM Strategic
Migration of sales and marketing
functions and data to strategic
CRM platform
Migration to strategic CRM platform that has not been selected yet; focus is on front-end
sales and marketing functions (currently on Siebel) and performing customer analytics on
customer data that is currently contained in several data stores; requirements to be further
refined; Optionally expands SAP BW to subsume Customer to align Customer with customer
driven Work, Outage and Revenue analysis, etc.
8
19
10
11
Description
6
7
Name
- 55 -
D.P.U. 15-155
Attachment AG-4-1
Page 56 of 84
Indicative Financial Impacts
D.P.U. 15-155
Attachment AG-4-1
Page 57 of 84
RTB Spend Avoided - continued
- 57 -
D.P.U. 15-155
Attachment AG-4-1
Page 58 of 84
RTB Spend Avoided - continued
- 58 -
D.P.U. 15-155
Attachment AG-4-1
Page 59 of 84
Our analysis also identified ~$35M in project investments that potentially can be
eliminated by implementing the strategic routemap initiatives*
US System Strategy Impact on US Investment
 Cancel: Investment may be cancelled as the
required functionality will be delivered as part of
the US System Strategy routemap
 Coordinate: Requires coordination with US
System Strategy routemap because of
dependencies
 No Change: US System Strategy has little or no
impact on the investment
TBD, 87, 18%
Cancel, 35, 7%
No Change,
308, 62%
Coordinate, 67,
13%
 TBD: Impact on the routemap requires further
analysis
Cancel
Total Projects
Spend
(CAPEX + OPEX)
Coordinate
30
44
$ 35 M
$ 67 M
No Change
91
$308 M
Potential
investment
avoided
*Note: These estimates will be further refined and validated in immediate follow-on steps
- 59 -
TBD
Total
102
267
$87 M
$497
M
D.P.U. 15-155
Attachment AG-4-1
Page 60 of 84
Investments to Potentially ‘Cancel’
- 60 -
D.P.U. 15-155
Attachment AG-4-1
Page 61 of 84
Investments to Potentially ‘Cancel’ - continued
- 61 -
D.P.U. 15-155
Attachment AG-4-1
Page 62 of 84
Burning Platform Applications
D.P.U. 15-155
Attachment AG-4-1
Page 63 of 84
Burning Platform Applications (High Priority)
Application
Name /
Description
Description
Impact on
business
Advantage
(aka-Banner)-RI
The purpose of this application is to
maintain all customer information.
This system is really the hub for all
customer information. All of the
customer billing, meter reading, order
processing…..etc is controlled
through this application.
2
Nucleus
3
TES
No.
1
4
CAS-LI
5
Maximo
Corporate
6
7
Architecture
/ technology
fit issue
Production
stability
Limited
skills
availability
SW vendor
support
issues
High


The risk system (Nucleus, Analytics,
WeatherDelta and related interfaces)
supports hedging activities (financial
derivatives) and the purchase/sale of
physical commodities. The system is
used for financial reporting, invoicing,
determining cost of gas. As of Jan.
2006 Nucleus is used to capture all LI
and NY physical gas transportation
and to perform month end settlement.
Application to monitor risk & exposure
in commodity trading systems.
High


Time entry system for NG US
High




Does not
meet
business
needs
Limited
flexibility
Overall
Priority
Operational
Cost
($ ‘000)


High
47.8


High
780.5

High
59.6

High
N/A

LI Gas and Electric Customer Billing
High
Corporate instance to facilitate Oracle
integration.
High



High
11.2
Maximo NE
NE Gas Work Management
High



High
301.5
Maximo T&D
T&D Work Management for
electric/Gas LI & NYC
High



High
652.5
High



High
106.5
High



High
115.8
High


High
1041.9
8
LMS-NY
A T&D leak tracking system that
records the life cycle of a leak.
Functions include work generation,
work scheduling, PSC and internal
compliance reporting and a repository
of reading history.
9
LMS-LI
Leak Management System- Long
Island
10
PeopleSoft HR
NG
Complete HR, Admin, benefits – NG
- 63 -

D.P.U. 15-155
Attachment AG-4-1
Page 64 of 84
Burning Platform Applications (Medium/Low Priority)
No.
Application
Name /
Description
11
MAXIMO
(Facilities)
12
13
14
15
16
17
18
19
20
Description
Building Maintenance System
Contains a repository of construction
contracts defined by the client area,
which are used to price-out actual
CCH (Contractor
construction work. After the
Charges LI & NY)
appropriate approvals have been
made, cost data is passed to the
accounts payable system for payment.
LDCM
Marketer Billing System - RI
This application uses only one form as
a control panel for executing data
downloads and uploads between
Advantage and LDCM. Each control
LDCM Translator button executes a macro that manages
data tables, imports a fixed-length text
file, converts account numbers and
exports a fixed-length text file. This
application runs under Access 97.
MAXIMO (Genco, Fossil Plants, LNG Plants, Substation
SubStation, LNG) Maintenance System
Valve and regulator database for I&R CHI
New England & RI only
IMS Database to hold work data to
DPMS
integrate NYC applications CCH, DIS,
Permits, Paving
Paving - KSE
Tracks and records the paving requests
that are associated to gas construction
and maintenance work. Contracts are
defined and items are priced-out for
each work order. Once approved,
payments are passed to the accounts
payable system.
Rule based process that converts Time
Entry into Pay Details based on
SmartTime (AKA employee information and union
SMARTI)
contract agreements. Currently system
handles 22 union contracts along with
management rules for 32 companies.
CRIS
Customer Billing System for KSE Gas
NYC/NE
Impact on
business
Architecture
/ technology
fit issue
Production
stability
Medium

Limited
skills
availability
SW vendor
support
issues
Does not
meet
business
needs
Limited
flexibility
Overall
Priority
Operational
Cost
($ ‘000)




Medium
43.8

Medium
97.7
Medium

Medium




Medium
N/A
Medium




Medium
N/A


Medium
50.7


Medium
N/A
Medium
N/A
Medium
106.9
Medium
426.0
Medium
N/A

Medium
Medium

Medium

Medium






High
High





- 64 -
D.P.U. 15-155
Attachment AG-4-1
Page 65 of 84
Burning Platform Applications (Medium/Low Priority) - continued
No.
Application Name /
Description
21
Field Performance
Management
22
23
24
Description
Reporting System for Field
Productivity Measurements for
Field Operations NY, LI, NE
Distribution
NYC Services systems
Information System
Data entry is performed in a threepage form at the completion of the
job. A series of management
Work Measurement
reports are generated on demand.
Crew level performance is no
longer provided.
A common portal to manage gas
distribution and Gas service work
CWQ - Common Work across NY, LI, NE. Uses spatial
Queue
application and SDE database.
System deveboped inhouse with
vendor components
Impact on
business
Architecture
/ technology
fit issue
Low
Low

Low

Production
stability
Limited
skills
availability





SW vendor
support
issues
Does not
meet
business
needs
Limited
flexibility
Overall
Priority
Operational
Cost
($ ‘000)


Medium
N/A

Low
52.2

Low
N/A
Low
531.8
1580.6


High
25
PeopleSoft HR - KSE HR, Payroll, Benefits for KeySpan
High

Low
26
PeopleSoft Financials Complete projects, GL
High

Low
86.7
High

Low
468.9
Complete supply chain, inventory
mgmt
An electronic file of equipment
located within the Exeter LNG
plant. All valves, pumps, control
devices, fire fighting equipment,
gas detectors, lights, boilers and
compressors, among other things
are included. Manufacturer and
inspection data is maintained.
Maintenance schedules are
produced. Employee training and
evaluation records are kept.
Allows requests to be entered into
Permit system in KeySpan and
transmitted electronically to the
DOT in NYC.
27
PeopleSoft SCM
28
LNG Plant
Maintenance
29
Permits (NYC)
30
FleetAnywhere
Fleet Management - KSE
31
FleetAnywhere
Fleet Management - NG US



Low
N/A



Low
62.2
Low


Low
233.5
Low


Low
121.6
Low
Low
- 65 -
D.P.U. 15-155
Attachment AG-4-1
Page 66 of 84
Burning Platform Applications (Medium/Low Priority) - continued
No.
32
33
34
35
Application Name /
Description
Description
Provides the ability for Work Order
design from workstation or
handheld device in field to feed
Field Smart Design
Maximo. IBM written software
(JAVA) that uploads/downloads
data to Maximo
Data is recorded by test date and
vehicle number. Tests performed
include voltage level, system
Combustible Gas leakage, filter condition, and new
Indicator Test (CGI) battery installation. An overall
acceptability rating is given. Data
entry is very easy because there is
only one table displ
Oracle Financials
System
ERP Enporion and Financials
packaged solution.
Oracle Supply Chain ERP Supply Chain packaged
System
solution for AP & Inventory Mgmt
36
Regulators
37
STORMS
38
Toolwatch
An Access application used to
manage 453 district regulators and
test/inspection data from 1995.
Old data about drips, charts, and
boots has been retained for
historical purposes.
Track customer orders and
projects, report on statuses, PSC
reporting, performance reporting,
ESCO's, GSO's, Pal's, Meter
Orders and miscellaneous orders.
Includes both capital and
maintenance (limited capibility)
work for Electric and Gas.
Used as a storage management
application for specialized tools
handling for Gas Distribution
Impact on
business
Architecture
/ technology
fit issue
Production
stability
Medium
Low

Limited
skills
availability
Operational
Cost
($ ‘000)

Low
10.5

Low
N/A

Low
709.0

Low
801.5
Low
N/A
Low
1652.7
Low
N/A
High



High
Low

- 66 -
Does not
meet
business
needs
Overall
Priority
High
Low
SW vendor
support
issues
Limited
flexibility
D.P.U. 15-155
Attachment AG-4-1
Page 67 of 84
Appendix
D.P.U. 15-155
Attachment AG-4-1
Page 68 of 84
We performed a series of executive interviews with the following NG management
team …
No.
Interviewee
Status
No.
Interviewee
1
John Caroselli
Complete
17
Mike Westcott
Complete
2
Sean Mongan
Complete
18
Bill Bollbach
Complete
3
Dave Falkowski
Complete
19
Matt Powers
Complete
4
Nick Stavropoulos
Complete
20
John Pettigrew
Complete
5
Kass Geraghty;
Complete
21
Jane Becker
Complete
6
Ken Daley
Complete
22
Jon Carlton
Complete
7
Christine Yordt
Complete
23
Ross Turini
Complete
8
Andy Agg
Complete
24
Bill Edwards
Complete
9
Andrew Sloey
Complete
25
Jonathan Callighan
Complete
10
Bill Jones
Complete
26
Jane Cavlin
Complete
11
Christine Pritchard
Complete
27
Tracey McCarthy
Complete
12
Eileen Hannon
Complete
28
Steve Noonan
Complete
13
Masheed Saidi
Complete
29
Bill Bollbach
Complete
14
Nabil Hitti
Complete
30
Eden Alvarez-Backus
Complete
15
Rich Rapp
Complete
31
Juliette Milroy
Complete
16
Ann Marie Levine
Complete
- 68 -
Status
D.P.U. 15-155
Attachment AG-4-1
Page 69 of 84
Functional analysis teams were formed to gather information on business priorities,
required capabilities and considerations for deploying them
Work Stream
NG Lead
Deloitte Lead
NG Participants
Hot Topics
LIPA
Kevin Brady
Abhay Borwanker
Doug Chapman, Jane Becker,
Wayne Watkins, Jim Lombardo
Customer (including RI Gas,
Short/ Medium-Term, Billing,
mobile/dispatch)
Richard Pilkington
Gabriel Tovar
Doug Chapman. Sean Mongan,
Jeff Martin, Dan Dupee, Mike
Pawlowski
Work and Asset Management –
Gas (including mobile/dispatch)
Richard Pilkington
Dan McPartland
Andy Pearman, Kass Geraghty,
Bill Geer, Craig Constanzo
Work and Asset Management,
Transmission – Electric (including
outage, mobile/ dispatch)
Richard Pilkington
Dan McPartland
Doug Chapman, Jane Becker,
Wayne Watkins, Sheena Anand
Back Office – Supply Chain, HR,
Finance
Bonnie Burkhardt
Matt Mills
Madalyn Hanley/Ruth Sullivan,
Christine Yordt and Brian Langh
(Finance), John Flaminio (SC),
Matt Powers (HR), Jeff Beal
(Fleet), Lee Humphries
GIS
Mike Gale
Dan McPartland
Andy Pearman, Kass Geraghty,
Bill Geer, Craig Constanzo, Doug
Chapman, Jane Becker, Wayne
Watkins
Major Functional Areas
- 69 -
D.P.U. 15-155
Attachment AG-4-1
Page 70 of 84
The Rationale for Customer
Customer
Our long term objective is to achieve convergence onto a strategic customer platform that can support current demands and enable future
innovations both internally and externally driven.
The identification of a strategic customer platform is a key decision to enable the convergence decisions associated with the older customer
systems
CSS is considered to be the workable platform to support the Customer Operations for at least the medium-term (at least five years). Our working
hypothesis is that it is capable to be the long term CIS platform but this will need to be tested further down the routemap

CSS is the most stable current customer application plus IS has the knowledge to support it and there are companies in the market to support it

CSS has been confirmed as being scalable to support the current US customer base and beyond.

At this point in time, the costs to migrate the existing Customer systems to CSS are less than migrating to another platform

CSS is able to support the SMART metering pilots and future production roll out (based on current SMART understanding)
SMART Pilot experience
~$15m
~$17m
CSS
Advantage
~$30m
CSS
CAS (LI Gas)
CAS (LIPA)
CSS or new
strategic
CRIS
Decision point on CRIS to CSS
based on CSS longevity test at this
point and SMART experience
LIPA specific CAS system remains and subject to LIPA negotiation
Customer considerations:

Migrations are complex projects in their own right

Multiple parallel migrations is to be avoided – high risk, resource/skill bottlenecks.

“Agent Desktop” integration technologies will continue to play a role in optimizing customer performance in interim

Regulatory recovery
- 70 -
?
CSS
D.P.U. 15-155
Attachment AG-4-1
Page 71 of 84
And the Rationale for GIS
GIS
Both businesses recognize that there is long term value to be obtained from convergence of GIS platforms. Convergence of the current multiplicity
of solutions/instances will require several migration activities to be timed appropriately. A GIS hypothesis is needed to enable investment decisions
to be taken.
The working hypothesis is for ESRI to be considered the target platform for the US businesses

ESRI is currently being adopted by the UK GFO programme and investment being made to integrate with SAP, Syclo and Click. This integration provides
a proving ground for the US to gain benefit.

ESRI is the market leader and both ESRI and Smallworld are considered to be functionally equivalent. – subject to test

IS economies of scale

The timing of the convergence should be when the front office changes are made – this is when the integration investment needs to be made. Smallworld
will continue to support the Electricity business until its front office migration is made and the benefits of Gas/Electric convergence can be fully exploited.
What a migration sequence could look like:
Current situation
Smallworld 3.1.2 + ESRI analysis
Electric+Gas – New York – Upstate
Electric – Massachusetts
Smallworld lifecycle management – life support
Elec
Front
Office
Gas
data?
ESRI+ArcFM
Elec (LIPA) - New York Downstate
Smallworld 4.0
Gas (RI) - New England
ESRI+ArcFM
Gas (MA+NH) - New England
NRG
Gas - New York Downstate
Early migrations
in readiness for
FO change
Gas
Front
Office
~2012/13?
ESRI consolidated
~2014?
Having established the target architecture, the challenge is to identify the optimum deployment path
- 71 -
D.P.U. 15-155
Attachment AG-4-1
Page 72 of 84
Business Capability Impact Analysis
D.P.U. 15-155
Attachment AG-4-1
Page 73 of 84
Appendix detail by Domain area
D.P.U. 15-155
Attachment AG-4-1
Page 74 of 84
US SAP ERP Back Office
Scope
Open Questions / Comments
US HR, Financials, Procurement and Fleet managerment transition onto SAP ECC and Powerplant for
regulatory accounting. Shared Services SAP BW
Not in scope:
1.Facilities Mgmt.
2.UK & US consolidation and Enterprise solutions
3.Corporate
4.Customer Billing and Bill Print
 RTB assumes current state
support model and resource
levels.
Financials - $M
Estimated
Investment
2010/11
2011/12
2012/13
New Investment
22.3
104.1
9.9
Investment Avoided
(1.4)
(3.6)
(3.1)
(2.0)
(1.6)
(0.6)
(12.4)
Net Investment
20.9
100.5
6.8
(2.0)
(1.6)
(0.6)
124.0
9.25
6.97
6.97
6.97
6.97
37.1
New RTB Spend
Estimated
RTB
2013/14
2014/15
2015/16
Total
136.4
RTB Spend Avoided
(0.08)
(5.6)
(5.6)
(5.6)
(5.6)
(5.6)
(28.1)
Net RTB Spend (*)
(0.08)
3.6
1.4
1.4
1.4
1.4
9.0
Estimated Timeline and Key Milestones
2010/11
Q1
Q2
2011/12
Q3
Q4
US Back Office
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
 Cost to achieve, avoided
investment & RTB are estimates
from 2nd December 09 draft
Exec paper
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
Remainder Gas Front Office
Joint Elec & Gas Design
Electricity Dx & Tx Front Office
R.I Advantage to CSS
CAS (Gas only) to CSS
CRIS to CSS
Timing: Start January 2010 - complete 2010/11 Q4
- 74 -
D.P.U. 15-155
Attachment AG-4-1
Page 75 of 84
US SAP Gas Front Office
Scope
 Assumes no other cross GFO /
EDO impacts other than
Metering Services
Migration to SAP-centric platform for Asset and Work Management.
Assumptions:
1.Use SAP to replace current Leak Management systems
2.Expand SAP BW to include GFO
3.Includes re-architecting an already consolidated Gas ESRI into the target architecture.
4 Includes Metering Services across Gas and Electricity
5Gas mobile occurs at the same time/programme – (see separate slide)
 A substantial part of the legacy
NG applications estate are
shared across Gas and
Electricity. A new SAP estate
add costs until EDO transition to
the new solutions.
Financials - $MM
2010/11
Estimated
Investment
2011/12
2012/13
2013/14
New Investment
15.0
40.0
15.0
Investment Avoided
(7.0)
Net Investment
2015/16
Total
70.0
(7.0)
8.0
40.0
15.0
63.0
New RTB Spend
Estimated
RTB
2014/15
RTB Spend Avoided
Net RTB Spend
4.5
4.5
9.0
(1.7)
(1.7)
(3.4)
2.8
2.8
5.6
2010/11
Q1
Q2
Q3
US Back Office
2011/12
Q4
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
Timing: Follows completion of UK Gas Front Office in 2010/11 to capture learning points and
Follows delivery of US Back Office re bandwidth, continuity of resource and minimize programme start up
costs
- 75 -
D.P.U. 15-155
Attachment AG-4-1
Page 76 of 84
US Mobile Gas Strategic Implementation
Scope
 Costs do not include
replacement mobile device
costs, which are covered within
the normal lifecycle investment
planning provisions.
All mobile solutions for Gas and Metering Services including Upstate NY. Synchronised with the main
SAP GDO ront Office transition.
Financials - $M
2010/11
Estimated
Investment
2011/12
2012/13
2013/14
2014/15
2015/16
Total
New Investment
20.0
20.0
40.0
Investment Avoided
(1.0)
(3.0)
(4.0)
Net Investment
19.0
17.0
36.0
New RTB Spend
Estimated
RTB
Included in the Gas Front Office RTB impact
RTB Spend Avoided
Net RTB Spend
2010/11
Q1
Q2
Q3
US Back Office
2011/12
Q4
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
Timing: Follows completion of UK Gas Front Office in 2010/11 to capture learning points and
Follows delivery of US Back Office re bandwidth, continuity of resource and minimize programme start up
costs
- 76 -
D.P.U. 15-155
Attachment AG-4-1
Page 77 of 84
US SAP Electric Front Office (TX & EDO)
Scope
 Timing of EDO & Tx will be
influenced by
Migration to SAP-centric platform for Asset and Work Management across Electricty Distribution and
Transmission.
Assumptions:
1.Use of SAP for project and alliance construction
2.Expand SAP BW to include EDO
 GFO completion
Identification of US regional
business model benefits &
IS RTB reduction
Not in scope:
Tactical EDO spends pending transition
Financials - $MM
2010/11
2011/12
2012/13
2013/14
2014/15
30.0
25.0
New Investment
Estimated
Investment
Investment Avoided
(2.5)
(2.9)
Net Investment
-2.5
27.2
2015/16
55.0
5.3
25.0
49.7
New RTB Spend
Estimated
RTB
Total
4.6
4.6
RTB Spend Avoided
(6.6)
(6.6)
Net RTB Spend
(2.0)
(2.0)
2010/11
Q1
Q2
2011/12
Q3
Q4
US Back Office
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
RI Gas Front Office
Gas Front Office
Q4
STORMS extended support
unlikely to go beyond 2014
(still to be negotiated)
Need to release the RTB
associated with the legacy
estate that was shared
across Gas and Electricity
 Early benefits can be derived from
 wider deployment of legacy
mobile and
 Tx adoption of collaborative 3rd
party working
 Interim NPV investments need to be
heavily constrained (although non
identified)
CRIS to CSS
Timing: Realisation c 2014, when Storms support likely to expire, Regional benefits model clearer and
EDO develop next step change benefit opportunities
- 77 -
 RTB assumes continued internal
support model
D.P.U. 15-155
Attachment AG-4-1
Page 78 of 84
US Mobile Electric Strategic Implementation
Scope
All non-Metering Services mobile solutions for Electric and Transmission. Synchronised with the main
SAP EDO & Tx Front Office transition.
Not in scope:
Metering Services Mobile and Dispatch (Syclo and Click)
Financials - $MM
2010/11
2011/12
2012/13
2013/14
2014/15
20.0
20.0
New Investment
Estimated
Investment
Total
40.0
Investment Avoided
0.0
Net Investment
New RTB Spend
Estimated
RTB
2015/16
0.0
RTB Spend Avoided
Net RTB Spend
0.0
0.0
20.0
20.0
0.0
0.0
40.0
0.0
0.0
Gas Front
0.0 Included
0.0 in the4.7
4.7Office RTB
4.7 impact
4.7
18.6
0.0
-18.6
0.0
-4.7
-4.7
-4.7
-4.7
2010/11
Q1
Q2
2011/12
Q3
Q4
US Back Office
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
RI Gas Front Office
Gas Front Office
CRIS to CSS
Timing: Realisation c 2014, when Storms support likely to expire, Regional benefits model clearer and
EDO develop next step change benefit opportunities
- 78 -
Q4
 Costs do not include mobile
device costs
D.P.U. 15-155
Attachment AG-4-1
Page 79 of 84
US GAS GIS Consolidation
Scope
Early migration, ahead of GFO SAP transition of all Gas GIS from 1). Smallworld 4.0 NE instance, 2).
NRG downstate NY, 3). Smallworld 3.1.2 Up-state NY & MS (note Gs only) to existing ESRI Gas (MA &
NH) instance. Includes decommissioning of 1 & 2 only
Not in scope:
1. Electric on Smallworld 3.1.2 Up-state NY & MS
2. Re-architecting GIS to the Strategic architecture which would take place in the core GFO SAP
transition
Financials - $M
2010/11
2011/12
1.5
6.0
New Investment
Estimated
Investment
2012/13
2013/14
2014/15
2015/16
Total
7.5
Investment Avoided
0.0
Net Investment
1.5
6.0
7.5
New RTB Spend
Estimated
RTB
RTB neutral
RTB Spend Avoided
Net RTB Spend
2010/11
Q1
Q2
Q3
2011/12
Q4
Q1
Q2
Q3
20112/13
Q4
US Back Office
US Back Office
completes
Gas GIS conversion
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
Timing: Through 2010/11 in readiness for main Gas Front Office re-architecting on Gas Front Office
- 79 -
 Network Design business
organisation may have to
change to support this split in
Upstate NY (per Kass Geraghty
27 Oct 2009)
D.P.U. 15-155
Attachment AG-4-1
Page 80 of 84
US Electric GIS Consolidation to Strategic
Scope
 The migration from Smallworld
to a common ESRI solution will
minimize the overall FO cost to
achieve and ongoing TCO
Migration of legacy Electricity GIS Smallworld to Strategic ESRI solution as part of and at the same time
as the EDO SAP FO transition
Not in scope:
1. Excludes the tactical upgrade
2. Excludes LIPA ESRI migration, which is assumed to continue pending LIPA Managed Services
Agreement review.
Financials - $MM
2010/11
2011/12
2012/13
New Investment
Estimated
Investment
2013/14
2014/15
2015/16
Total
4.0
11.0
2.0
17.0
Investment Avoided
0.0
Net Investment
Estimated
RTB
4.0
New RTB Spend
0.0
0.0
RTB Spend Avoided
0.0
0.0
Net RTB Spend
0.0
0.0
11.0
2.0
17.0
RTB neutral
2010/11
Q1
Q2
Q3
2011/12
Q4
Q1
Q2
Q3
20112/13
Q4
US Back Office
US Back Office
completes
Gas GIS conversion
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
Electricity GIS conversion
Timing: 2012/13 in sync with Electricity Front Office migration
- 80 -
D.P.U. 15-155
Attachment AG-4-1
Page 81 of 84
US Rhode Island Customer Migrations to CSS
Scope
 Immediate action necessary to
Early migration of RI Advantage & LDCM to CSS avoiding Advantage upgrade.
Includes :
1.Advantage & LDCM decommissioning.
2.Changes the interfaces to Metering Services solutions
3.Bill print switches to CSS Bill Print
4.Rollout of MWork to R.I Metering Services mobile devices (currently using PCAD) and add Gas
Metering Services crews to iSchedule
 consider completion to
align with BO transition to
SAP avoiding rework of
interfaces
 Avoid Advantage u/g
Financials - $M
2010/11
New Investment
Estimated
Investment
Investment Avoided
Net Investment
2011/12
2012/13
2013/14
2014/15
2015/16
16.0
(0.8)
(0.8)
15.2
15.2
New RTB Spend
Estimated
RTB
Total
16
0.0
IS RTB Avoided
0.05
0.05
0.05
0.05
0.05
Net RTB Spend
0.05
0.05
0.05
0.05
0.05
***Bus Benefit p.a.
4.0
4.0
4.0
4.0
0.25
0.25
4.0
20.0
Strong NPV
2010/11
Q1
Q2
Q3
2011/12
Q4
Q1
Q2
Q3
20112/13
Q4
Q1
Q2
Q3
2013/14
Q4
Q1
Q2
Q3
Q4
CRIS to CSS
Early migration of Advantage in 2010 is necessary to avoid an upgrade and enable Metering Services RI
business benefits plus avoidance of temporary staff recruitment
- 81 -
 It is assumed that RI will
Customer Meter Services will
adopt MWORK
 PCAD Scheduler in R.I can also
be decommissioned on
migration to MWORK.
 RTB savings is from Advantage,
IVR and Labtrak
 increased Field Work efficiency
and avoidance of temporary staff
(collectively with RI and Mass
$2.5M p.a.)
 Cost to achieve includes
$12M to migrate Advantage
$4M roll out of MWORK to
existing Metering Services Gas
mobile devices (c.100 off) and
set up crews in iSchedule
to enable common solutions for
CMS field activities
D.P.U. 15-155
Attachment AG-4-1
Page 82 of 84
US CAS Gas Customer Migration to CSS
Scope
 Cost estimates based on
sufficient experienced Business
and IS resource availability. It is
viewed that Workforce reduction
will increase costs.
Migration of CAS Gas only to CSS and changing interfaces to Metering Solutions and Back Office
Associated Customer Billing and Bill Print.
Not in scope:
CAS for LI Electricity that is assumed to continue pending review LIPA Service Agreement
 CAS costs apportioned to Gas
could swing onto LIPA –
Assumed zero RTB impact
Financials - $MM
2010/11
2012/13
10.0
7.7
17.7
10.0
7.7
17.7
New Investment
Estimated
Investment
2013/14
2014/15
2015/16
Investment Avoided
New RTB Spend
0.0
IS RTB Avoided
0.0
Net RTB Spend
0.0
***Bus Benefit p.a.
0.8
Regulatory benefit
0.8
0.8
2.4
$11M p.a. from 2010 to 2012 lost
2010/11
Q1
Q2
US Back Office
Q3
2011/12
Q4
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
 $11M p.a. regulatory
allowance for each calendar
year 2010, 2011 and 2012 only
Recommendation for
Regulation to explore
option to renegotiate the
allowance duration.
 Possible option for CAS
migration to start to and run in
parallel with Advantage
migration, Business resource
constraint.
RI Gas Front Office
Gas Front Office
Start as soon as possible
 LIPA agreement expires 2013 so
need to complete by 2013
0.0
Net Investment
Estimated
RTB
Total
2011/12
CRIS to CSS
Duration 18 mths, sequentially dependent upon completion of Advantage migration re IS skill bandwidth.
CAS ahead of CRIS re robustness and CAS also attracts £11M p.a. allowance to 2012.
- 82 -
 New rate case in 2012 is a
strong driver to complete before
this event to deliver change in
CSS
D.P.U. 15-155
Attachment AG-4-1
Page 83 of 84
US CRIS Migration to CSS
Scope
 Alignment with early option to
adopt Strategic Mobile and
Dispatch solutions for RI
Migration of CRIS Gas only to CSS and changing interfaces to Metering Solutions and Back Office.
Associated Customer Billing and Bill Print.
Completion aligned to Gas Front Office migration to avoid double migration of Metering Services
Dispatch and Mobile solutions
 BO transition to SAP avoiding
rework of interfaces
 *** indicative Business benefits Mike Pawlowski
Financials - $MM
2010/11
Estimated
Investment
2012/13
2013/14
New Investment
2011/12
12.0
26.0
Investment Avoided
(3.0)
Net Investment
Estimated
RTB
2014/15
2015/16
Total
38.0
(3.0)
9.0
26.0
35.0
New RTB Spend
+0.2
IS RTB Avoided
Net RTB Spend
***Bus Benefit p.a.
+0.2
+0.4
(3.5)
(3.5)
(7.0)
(3.3)
(3.3)
(6.6)
3.5
3.5
7.0
Strong NPV
2010/11
Q1
Q2
2011/12
Q3
Q4
US Back Office
Q1
Q2
US Back Office
completes
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
CRIS to CSS
Duration 18 mths,
As the most stable of customer solutions CRIS follows CAS.
- 83 -
 Base assumption for the cost
estimates are sufficient
experienced / knowledgeable
Business and IS resource
availability for the conversion
activities. Workforce reduction
in either of both could increase
costs.
 Note that if completion is not
aligned to Gas FO migration and
Dispatch and Field is tactically
integrated to legacy Additional indicate cost c.$5-7M
D.P.U. 15-155
Attachment AG-4-1
Page 84 of 84
US CRM Strategic – Sales Force Automation
Scope
Sales Force automaton to support the process of Suspect, Prospect, Lead to Customer and cross selling
to existing customers.

Options
1.
SalesForce.com
500 licenses $80/mth/user = $500K
p.a.
Customisations nominal estimate
$1M
2.
Stand-alone SAP CRM
Deloitte advise that SAP CRM can
stand alone to support this
capability for around $3m - $6m
depending on the number of
interfaces to legacy systems.
Indicatively the interfaces are low
without the need for real time
information, pulling our cost to the
lower end of the range.
Estimate RTB as 20% Assume
$1M

Hosted service requires current
app "Analytics Database / Insight
and Analytics", which is currently
being upgraded and has data loads
from CSS and external
demographics data.
Extracts batch load to
SalesForace.com.

SAP CRM would alleviate the need
Analytics Database

Following apps can go under either
option
ONYX, InDemand (currently
supporting Energy Efficiency
Programmes) & 2 instance of
iAvenue (Direct RTB $1.5M p.a.)
Financials - $M
2010/11
New Investment
Estimated
Investment
2011/12
2013/14
2014/15
2015/16
Total
5.0
5.0
Investment Avoided
0.0
Net Investment
5.0
New RTB Spend
Estimated
RTB
2012/13
1.0
1.0
1.0
1.0
1.0
5.0
RTB Spend Avoided
(1.5)
(1.5)
(1.5)
(1.5)
(1.5)
(7.5)
Net RTB Spend
(0.5)
(0.5)
(0.5)
(0.5)
(0.5)
(2.5)
2010/11
2011/12
Q1
Q2
Q3
US Back Office
Q4
Q1
US Back Office
completes
Q2
Q3
20112/13
Q4
Q1
Q2
2013/14
Q3
Q4
Q1
Q2
Q3
Q4
RI Gas Front Office
Gas Front Office
CRIS to CSS
Sales Force Automation
An island solution - can run in parallel to other actvities
- 84 -

US Systems Strategy and Routemap

Transcription

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