Analyst briefing session 1 the challenge of deploying the infrastructure

A Smart way to
connect the dots

Agenda
DAY 1: 5 July 2012, Kings Place, London
Session 1: Deploying the Smart Metering Infrastructure
1400-1410 Chair’s Address and Welcome Nigel Spooner, Logica

1410-1440 Supply Chain and Logistics Andy Cooper, Logica

1440-1520 Optimising Asset and Field Force Paul O'Connor, Logica
resources

1520-1610 Beyond deployment – sustaining Tommy Olsson,
consumer engagement Logica

1610-1630 Networking Break

© Logica 2011. All rights reserved No. 2

The Smart Meter Supply Chain

July 2012
Andy Cooper
Supply Chain Consulting

Start off with a Quote...

“The roll out of smart meters not only provides great
opportunities for customers and utility companies alike, it also
presents a subtle yet huge logistics challenge. Changing and
registering the gas and electric meters in every building in the
country is perhaps the biggest logistics challenge to hit utilities
since the countrywide conversion to natural gas in the late ‘60s.
This work will run for several years and impact every family and
business in the UK, how many other logistics operations can
claim similar?”

Rob Morton
Supply Chain Director British Gas
© Logica 2012. All rights reserved

What does this mean for Utilities

• Logistics is not core business:
the supply chain challenges are not huge

• Many information flows:
the stakeholders are numerous

• Temporary peak, then lower than current BAU:
the demand will peak and then fall away

• Risk of stockouts are high:
high demand, new supply.


What are we doing…?

• Logica’s Supply Chain Acceleration:
leveraging our cross industry supply chain domain
expertise for the benefits of our utilities clients

End to End supply chain management
Distributor
Retail
Transpor
t
Manufactur
er /
Raw Supplie Assembler
material Consumer
r
produce
r Retail
Distributor

Supplier Manufacturin
Transport Warehousing
Management g


What are we seeing...?

• One major first mover:

looking to leverage an excellent supply chain as a competitive
advantage

• Others starting to get active:

Ultimately supply chain is hygiene factor

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

Reverse logistics a bigger challenge than
outbound?

Cost of reverse logistics greater than intrinsic
value of returned dumb meter


Closing Remarks

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

Secure your supply –
eliminate single points of
failure


Questions?


Getting Smart!

Smart Utilities:
Optimising Asset and Field Force Resources

Paul O’Connor | SAP Practice

Agenda

• Quick Introduction
• Customer considerations
• Data Model
• EAM and Mobility
• Methodology
• Quick Demo


Customer considerations

•Interfaces / Industry standards and flows
•Legacy systems
•Vendor Management
•Skills and Resourcing
•SI experience
•Timelines to implement

Data, Data, Data


Data model in SAP ISU


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


Overview of EAM – with reference to mobility
• Example components of EAM related to a Smart Rollout
• Gas and Electricity Asset Management
• Work Management
• Field Force Management
• Document Management – can exploit native SAP DMS for Assets, vendors, materials etc

Work Asset
Management Management

Field Force Document
Systems Management

Together on critical path


Why use a Mobile Enterprise Application Platform


Potential mobility environment needs
Back End SAP systems

Sybase Mobile Enterprise
Application Platform with Afaria

Management Meters External Internal Customers
information Field Field
Force Force


Where Sybase Unwired Platform fits in

• A single standard mobility solution
which fits in the enterprise
architecture
• Scalable with failover tolerance
• End to end security solution for
servers, data transportation, and any
mobile device
• Provides flexibility in choosing
handheld devices
• Can be used as mobility enabler for
subsequent processes. The blueprint
provides a high degree of reuse.
• Afaria provides remote application,
configuration, document & device
management capabilities
• Provides connectors for improved
integration with SAP & other
applications
• Ease of use and support


Who else is benefitting from this?

Risk Mitigation
• Logica Mobile framework for Sybase MEAP
• 1 application 3 months design then 3 month build
• Following apps (5) – 3 months


Overview of Agile Business Add-on to ASAP

Project
Blueprint Realization
Preparation

Sprint backlog / revised
/ prioritised project
backlog

Determined project scope Prioritised delta list & Process
UI
release planning Compositio
Development
n

2-to-4 wks
cycle
Work product
increment Service
Service
Process based Implementatio
Modeling
n and Test
composite application

Go Live Final
Run Work product release
Support Preparation
© SAP AG 2009. All rights reserved.


Sprint Elements - Activities during each sprintint

1.Sprint
Planning

5.Sprint 2.Daily
Review Scrum

4.SPRINT
3.Sprint
Demo


Letting the clients talk for themselves

© Logica 2012. All rights reserved http://ws3.global.logica.com/sites/021029/003%20Proposals/03%20EDF/06%20Smart%20Release%203/ITT%2
0JULY%202012/Reference%20Material/Anglian%20Water/Application_demo.wmv

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

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

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

Key takeaways

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

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

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


Maintaining the dialogue...

Paul O’Connor
SAP Practice

M: +44 7826 904 120
E: p.oconnor@logica.com
T: @PaulOCo27483013

Logica is a business and technology service company, employing 39,000 people. It provides business consulting,
systems integration and outsourcing to clients around the world, including many of Europe's largest businesses.
Logica creates value for clients by successfully integrating people, business and technology. It is committed to long
term collaboration, applying insight to create innovative answers to clients’ business needs.

Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG).
More information is available at www.logica.com.
The company is a public company incorporated and domiciled in the UK.
The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

Getting Smart!

Smart Utilities:
Beyond deployment: sustaining consumer engagement

Tommy Olsson| Practice Leader | Smart Utilities

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


From OMT to EMT – the journey

2007 2008-2012 2011 2011-2012 2012

Winner of European Swedish utilities Swedish utilities Smart EMT for future
utility awards makes break collaborate consumers utilities
“ A very promising through in customer A joint innovation Smart phone EMT is the next
practical step towards interaction project starts, apps for EMT, step of OMT,
widespread New energy services aiming for the create new aiming for the
consumption create new business future of energy business European
feedbackbased demand possibilities for utilities management for possibilities and market of
response and the with smart meters. utilities and more. integrates smart utilities
creation of a more 250 000 metering consumers into
energy conscious points from 5 utilities. the smart grid.
society”

Engaging Consumers:
Learning from Experience in Växjö

Växjö and SESAC

• SESAC: Sustainable Energy Systems in Advanced Cities
• Project within the Concerto initiative, co-funded by the European
Commission
• Objective of demonstrating how local economies can thrive whilst
emitting lower CO2
• Involves three cities undertaking demonstration projects
• Delft, Netherlands
• Grenoble, France
• Växjö, Sweden

• Concerto Initiative
• Europe wide initiative
• Addressing Challenges of creating a sustainable future for Europe’s
energy needs
• Focus on working with clearly defines local communities, primarily
in demonstrating integration of:
• Renewable energy sources
• Energy Efficiency techniques, and
• Community level sustainable energy management systems


Växjö and SESAC

• Växjö named as ‘The Greenest City in Europe’ by BBC in
2007
• Objective is to reduce the aggregate energy use across
Växjö by 5%
• c22,000 home have smart meters
• Role of Gamification
• Individual Competitions
• Four competitions run
• 77 people participated
• Top 5 in each competition varied from 79% to 50%
• Team Competitions
• One competition run
• Teams of 10-15
• Each team had a leader to coach them
• Team competitions had more enthusiasm from those
participating


Creating Engagement

• Activities
• Making people feel a part of something
• Active promotion ahead of the programme start
• Using Vaxjö’s ‘Greenest City in Europe’ accolade to create a sense of purpose
• Putting people in control
• Creation of SAMS to disseminate information
• Broad stakeholder group (Vaxjo Energi AB, Hyresbostader I Vaxjo AB, Vaxjohem AB, Vaxjo
Kommun (Municipality of Vaxjo)
• Providing the tools (EnergiKollen)
• Awareness campaigns
• Engage people in easier activities
• Quizzes on SAMS.SE
• EnergiKollen competitions
• Engage people to make a change in behaviour
• Feedback of results of changed behaviour
• Engage media in results of EnergiKollen competitions

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


Creating Engagement:
Making it Interesting and Rewarding

Engaging consumers in a new
and interesting ways by
pervasive gaming.

Creates discussion which makes
the consumers more aware and
creates motivation to take
control of their consumption
patterns


Informing action – the energy efficiency portal

Smart meter information,
accessability, competition

Individual  Knowledge

Community  Perspective

Environment  Altruism

Engagement, awareness,
sustained improvement


Total result for Växjö

2008 2009 2010

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

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

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

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

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

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


Team competitions in EnergiKollen

Results team competition (one week)
1. Växjöhem 47,4%
2. Veab 46,8%
3. Hyresbostäder 34,4%
4. Växjö Kommun 31,1%
5. Växjö Politiker 19,9%

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



Key conclusions

• Advocacy by multiple parties provides necessary holistic view
• An on-line tool is required to keep people interested
• Challenge is getting people to log on – marketing
• Once they have, they sustain interest
• EnergiKollen created a platform to sustain dialogue with consumers
• Positive reactions to competitions and would like to continue
• But compete against local communities – neighbours and friends
• Team competitions more popular than individual competitions
• Continuous flow of marketing / information required
• But ensure that it’s not perceived as another ‘energy saving’ campaign
• Advertising alone isn’t enough
• Active engagement is important – face-to-face
• When activity stops – savings decline



Skolstaden - the sustainable
school campus

Skolstaden |
Sustainable School Campus

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

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

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

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

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

Skolstaden visualisation (demo version)


Energy in mind study |
Building on our experience of portals

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

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

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


Information technologies tested

• Simple display
• ”Solo”-display
• Public/Collective display
• SMS
• Web
• TV-solution
• Mail
• IMD (Individual metering and bill)
• VV-display (warm tap water)


Conclusions – the short story
• Most successful reduction with the web solution Energikollen and the simple
display

• Display was the most popular solution in the survey result
• User of Energikollen have reduced the energy consumption with 10-20 % and the
user of the simple display with 14 %

• The return of investment is 2 years for both solutions
• The parameters income, energy use and response rate follows the same pattern
for all project teams. High income means high energy consumption and also high
response rate, and vice versa

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

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

• Collective visualisation via display in stairways (cheap solution) was not an success
• The same goes for TV-solution (50 % accessed the system but no change in
behaviour)

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

50 % of all innovations will be

”gamified”
by 2015!


Maintaining the dialogue...

Tommy Olsson
Global Practice Leader Smart Utilities

T: +46 40 25 11 81
E: tommy.olsson@logica.com

Logica is a business and technology service company, employing 39,000 people. It provides business consulting,
systems integration and outsourcing to clients around the world, including many of Europe's largest businesses.
Logica creates value for clients by successfully integrating people, business and technology. It is committed to long
term collaboration, applying insight to create innovative answers to clients’ business needs.

Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG).
More information is available at www.logica.com.
The company is a public company incorporated and domiciled in the UK.
The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

Energy saving is important and fun too
What were the client challenges? Why did the client choose us?

• Increase awareness of electricity consumers and Swedish energy company Växjö Energi AB (VEAB) and
support the drive to make Växjö more sustainable Logica have worked together to launch EnergiKollen, as
• Engage the entire community in friendly competition part of a major energy saving initiative to reduce
to save energy electricity usage in Växjö by 5%.
Using technology and innovation to offer a smart
How did we address the client challenges?
environmental solution requires knowledge and
experience. Logica has the right mix of both and a track
• Developed EnergiKollen, a web based solution with
record that stands out for projects of this kind. Our
easy-to-follow energy visualisation that outlines
innovative approach kept the user in focus and
changes in energy consumption
demonstrated the skills required for integrating into
• Enabled free login to the online tool with a feature for their existing systems.
consumers to compete to be the best energy saver
EnergiKollen is available to more than 25,000
households equipped with smart meters in Växjö.
What were the benefits to the client? The solution won the European Utility Award for
Customer Excellence in 2007.
• Consumers compare their usage with peer groups and
compete with each other to reduce energy usage “VEAB is part of many initiatives contributing to a
• Winners typically achieve about 30% and are better environment and we are in the forefront when
it comes to sustainable energy development. With
rewarded for successful behavioral change
EnergiKollen we can build on our achievements and
• Consumers using the tool save 4 times more than offer our customers what we always strive for –
those not using it. In one such contest between namely the opportunity to impact and reduce energy
companies and politicians in Växjö, the winning team consumption.”
reduced electricity consumption by 47.4% Ann-Mari Ståhlberg, CEO, Växjö Energi AB


Visualizing energy to change behavior

• Engage students and teachers to create awareness “The visualization allows us to show the school's actual
and save energy.
energy use and continually remind ourselves of the
• Gather real-time data in a effective way and present
sustainability work that the school conducts” says Hans
the data through a user friendly visualization
Dahlquist, principal of the engineering programme at
Skolstaden
How did we address the client challenges?
Skolstaden chose Logica because we demonstrate both
• With a clear focus on involvement by the target group a strategic understanding and knowledge of practical
in the process of developing the visualization.
solutions to reduce energy usage. Also Logica already
• With a partner to use the best possible hardware.
have shown benefits in similar project with other
clients. By visualizations users have earlier seen their
What were the benefits to the client? energy consumption decreased at around 12-17 %*.
This is a great step towards a more energy consious
• Better understanding of energy saving through online
society.
engagement paralleled with educational focus.
* http://goo.gl/lKuJ8
• Empowers students by showing them consumption
patterns, costs and impact on climate.
• The schools compete with each other to reduce
energy usage.


The race to be a top energy saver

• Lund Energi wanted to be “best in class” in helping the Lund Energi buy and sell electricity, gas, district heating
citizens of Lund to save energy, money and the and communication services. Its services include
environment! customer service, advice, maintenance, and contracting.
• Find a partner to develop end user web strategy and Founded in 1863, the company is based in Lund,
implement the solution Sweden.
Lund Energi were looking for a combination of energy
efficiency, sustainability and consumer understanding. As
How did we address the client challenges? well as the ability to implement a solution to help
consumers save energy.
• Strategic advice on solution to meet client goals Lund Energi chose Logica because we combine strategic
• Empowered consumers by showing them energy understanding with practical solutions to save energy.
consumption patterns, costs and impact on climate And because we had already demonstrated the benefits
• Made energy saving fun with competitions in energy with other clients.
efficiency

Stefan Johnsson– Lunds Energi, commented :
What were the benefits to the client?
“By adding the business knowledge from Logica to
• Better understanding of energy saving though online their solution expertise we got the combination
needed to realise our goals”
consumer engagement
• Empowers consumers by showing them energy
consumption patterns, costs and impact on climate -
to help them save energy


Analyst briefing session 1 the challenge of deploying the infrastructure

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