Towards the Digital Utility with SAP for Utilities …

1 Towards the Digital Utility with SAP for Utilities and S/4 HANA for Utilities Miguel Gaspar Silva Industry Director, EMEA Utilities Lead 2015 SAP SE or an SAP affiliate company. All rights reserved. 2 Legal Disclaimer The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality.

2 This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2015 SAP SE or an SAP affiliate company. All rights reserved. 3 Four key technology drivers for The Digital Utility Cloud Mobile Social Media Big Data / HANA General Utilities ~80% of new software in 2014 was available as cloud services Facilities business partner collaboration Offers innovative energy services Today, mobile devices are the primary method of internet access worldwide Increased customer interaction Efficient channel to bring new services There will be billion social media users in 2014 Monitoring of customer sentiment Involve customers in energy program development Data volume for enterprise applications is doubling every 18 months Analyze huge data volumes to enable and accelerate business decisions 2015 SAP SE or an SAP affiliate company.

3 All rights reserved. 5 SAP s Innovation Steps to a new Software Generation SAP HANA SAP Business Warehouse powered by SAP HANA SAP Business Suite powered by SAP HANA Real-time analysis Real-time reporting Real-time business OLAP and OLTP together SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA In-memory platform 2011 2013 2012 2014 2015 2015 SAP SE or an SAP affiliate company. All rights reserved. 6 Utilities Deliveries and Roadmap Q4/2014 Investments into ISU/CRM on HANA Q4 2014 Details IS-U HANA Live V3 Device Management Meter Reading Billing CRM HANA one field, smart search in interaction center Enhanced quick view, additional search attributes CRM HANA Live V2 Contract Management Quotation Management FI-CA Account Receivables ManagerKPI-Cockpit for Contract Real-time Analysis of Write-offs and Open items in a Fiori App FI-CA Simplified Payment Search using HANA fuzzy-search capabilities (fault tolerant, free input of search terms in one field, search with AND/OR.)

4 Provide insights into meter2bill process Win and keep profitable customers Improve call center efficiency Improve payables and receivables mgmt. Improve call center efficiency 2015 SAP SE or an SAP affiliate company. All rights reserved. 7 SAP HANA Live architecture Foundation for new class of applications for operational reporting in realtime Atomic Pre-defined instantaneous SAP Business Suite Applications SAP HANA PLATFORM Database Layer Physical Tables HANA Views Operational Reporting Zero latency! 2015 SAP SE or an SAP affiliate company. All rights reserved. 8 CRM Utilities optimization: New one field search on Identification in Interaction Center (HANA Smart Search) 2015 SAP SE or an SAP affiliate company. All rights reserved. 9 Q1 2015 Details IS-U HANA Live V4 Invoicing IS-U Accelerated Energy Settlement Improvement by factor >100, reducing batch time from ~3h to ~2min IS-U Type Ahead Search for most ISU transactions (contract, installation, documents.)

5 Using HANA fuzzy-search capabilities (fault tolerant, free input of search terms in one field, .. CRM HANA one field, smart search in interaction center Search cross system Additional attributes (IS-U: invoice, device ID, premise owner, payer, ..) FICA KPI-Cockpit for Contract Account Receivables Manager Trigger work items for back-end processing directly from Cockpit Utilities Deliveries and Roadmap Q1/2015 Investments into ISU/CRM on HANA Provide insights into meter2bill process Improve call center efficiency Ensure regulatory compliance Improve payables and receivables mgmt. Improve operational efficiency 2015 SAP SE or an SAP affiliate company. All rights reserved. 10 Accelerated Energy Settlement by ESB Networks Part of the IS-U delivery in Q1-2015 ! Requirement: Accelerate market settlement (both smart meter and standard meter) Achieved Goals: Performance increase in market settlement operations by a factor of ~100 Improvement in risk mitigation and auditability Effort reduction while providing higher flexibility Enable Ad-Hoc settlement 2015 SAP SE or an SAP affiliate company.)

6 All rights reserved. 11 Transformer Load Analytics PoC Business Scenario Renewables and distributed generation lower predictability of load in the grid; overload may cause significant wear-out. Insight allows for taking action, Exchange transformer or reconfigure network Demand-response program might be to customers repeatedly contributing to overloads Prototype Native SAP HANA implementation with simple HTML5 user interface running on 16-core machine with 256 GB RAM Comprises 87 weeks of load measurements for ~12,000 transformers ~1 billion records (10-minute measurement interval) ~20 GB compressed in main memory No materialized aggregates Use Cases Transformer overload overview in geospatial context Transformer load comparison and investigation of load peaks Examining weekly patterns and next-day forecasting Weather correlation of load Loss of life calculation and visualisation 2015 SAP SE or an SAP affiliate company.

7 All rights reserved. 12 2015 SAP SE or an SAP affiliate company. All rights reserved. 15 Simplified data model New user experience Advanced processing Choice of deployment SAP s Innovation Steps to a new Software Generation SAP HANA SAP Business Warehouse powered by SAP HANA SAP Business Suite powered by SAP HANA Real-time analysis Real-time reporting Real-time business OLAP and OLTP together SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA In-memory platform Instant financial insight No aggregates Single source of truth SAP Simple Finance powered by SAP HANA 2011 2013 2012 2014 2015 2015 SAP SE or an SAP affiliate company. All rights reserved. 16 Why SAP decided for a new platform? The standard solutions of SAP (and its competitors) grew steadily over the last decades in scope and complexity and became more and more inflexible Data models of current standard solutions have been designed for a completely different technical paradigm - hence a redesign is required to ensure: Native usage of in-memory technology Consequent simplification of business processes and related user interfaces Inbuilt business networking capabilities Functional and architectural complexity of current systems do not allow standardized operation in the cloud 2015 SAP SE or an SAP affiliate company.

8 All rights reserved. 19 S/4 HANA Simplification: Integration of OLTP and OLAP Combining transactions and analytics on a single in-memory platform 10:00 AM 10:00 AM Decisions and actions on old data Multiple copies of the data ETL and batch processing efforts and costs 10:00:00 AM 10:00:00 AM >48 Hours Immediate Instant action on live data One copy of the data No ETL and batch processing 2015 SAP SE or an SAP affiliate company. All rights reserved. 20 S/4 HANA Simplification: Reduction of Aggregates Example SAP Simple Finance COSP COEP COBK BKPF BSEG BSEG BSEG BSIS BSIS BSIK BSET LFC1 GLT0 GLT0 GLT0 SAP Simple Finance 4 0 updates inserts SAP Finance with aggregates and indices 10 5 no indices no aggregates no redundancies 2015 SAP SE or an SAP affiliate company. All rights reserved. 22 Instant Insight Single source of truth Real-time processes OLAP and OLTP one platform Dynamic planning and analysis Simplicity Simplified architecture: reduced tables and and aggregates Intuitive User Experience: Personalized, simple analytics and reports across devices Flexible and Non-Disruptive On premise Cloud Hybrid Unique Global and Industry Coverage 62 Country versions 21 Industries SAP Simple Finance has been the frontrunner for SAP S/4 HANA Solution Characteristics 2015 SAP SE or an SAP affiliate company.

9 All rights reserved. 23 SAP for Utilities on S4 HANA Schematic Simplification Map Customer Engagement Energy Logistics Revenue Assurance CS-IC CRM DM MR EDM BI IN FICA Customer Engagement Energy Logistics Revenue Assurance Simple Finance IDE(X) IDE(X) SAP for Utilities Business Suite Add-ons Today SAP for S4 HANA Add-on (schematic target picture) Industry-specific Addons IoT Platform Energy Analytics MDM/EDM C4C Simple Logistics Billing Interaction center CRM WM FI This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 2015 SAP SE or an SAP affiliate company. All rights reserved.

10 24 SAP S/4 HANA Roadmap for Utilities On Premise Edition Q3/2013 Complete SAP Business Suite on SAP HANA AND Any DB Q3/2014 SAP Simple Finance exclusively on SAP HANA Q1/2015 First SAP S/4 HANA On-Premise Edition exclusively on SAP HANA (Business Suite + Simple Finance) Q1/2016 ERP EhP 8 Continuous Innovation on SAP HANA AND Any DB Maintenance and Continuous Innovation Commitment until 2025 Migration Options Q4/2015 SAP Simple Logistics* SAP IS-U Enablement Future Shipments SAP Hybris Marketing* Simple Project Business* .. Q2/2015 SAP Simple Finance 1503 Future Shipments SAP sUtilities* *Final product name tbd This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 2015 SAP SE or an SAP affiliate company.