SAP AG March 2020

SAP Cloud for Utilities: an integrated industry solution

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SAP Cloud for Utilities: an integrated industry solution WRITTEN BY

WILLIAM SMITH

PRODUCED BY

BEN MALTBY

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SAP

How SAP’s Cloud for Utilities solution portfolio can unlock new possibilities in a rapidly evolving market

S

AP Cloud for Utilities (C4U) is a pioneering new end-to-end portfolio of solutions from SAP, intended for use in the Lead-

to-Cash process employed by utilities companies.

Three individuals from the wider SAP organisation are guiding its market introduction. Klaus Lohnert 04

is programme director and the overall lead of the project. Mateu Munar, Senior Director, Industry Business Unit Utilities and Stefan Engelhardt, Global VP Go-To-Market Strategy Industry Business Unit Utilities, are also part of the C4U leadership team and in charge of the solution management for SAP’s Utilities portfolio. “As part of that team,” Munar explains, “I have the role of the go-to-market lead for the new SAP Cloud for Utilities suite.”

Engelhardt adds: “We are the solution owner for the complete business suite. In my role, I particularly support the C4U leadership board from a strategic perspective, as well as Mateu and the team with our go-to-market activities.”

In terms of overall structure, Lohnert explains that “we have four streams. There is the

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“ What’s happening at the moment is a tremendous infrastructure program, going from a centralised to a decentralised system”

development stream, where we develop the solutions. Then we have the go-to-market stream, in which Mateu and Stefan are allocated.

Operations, because this is a cloud solution which we are operating, and the final part is the transition service we offer to make implementing the solution easier for our customers.”

The complexity of the behind the

Klaus Lohnert, Program Director SAP Cloud for Utilities, SAP 06

scenes structure reveals the ambition of the solution. Comprising a portfolio of solutions useful to the utilities industry, SAP C4U supports products from

E X ECU T I VE P RO FI LE

Klaus Lohnert Klaus Lohnert is Program Director SAP Cloud for Utilities. He has over 20 years of international experience in the utilities industry and management consulting. His passions are for empowering business leaders to optimise the value of their businesses through best-in-class, forward looking processes, organisations and solutions, as well as providing customers guided access to innovations to get ahead of competition and help them to achieve the desired business outcomes of their business transformations.

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07 modelling through to the market, as

terms of reducing costs and adoption

well as demand prediction, monitoring

time.” Engelhardt adds that the offer-

of customer behaviour, managing bill-

ing is flexible to the specific needs

ing, customer service and adherence

of customers. “The architecture is

to regulations. “It’s a suite that covers

modular,” he says, “so we leverage the

the entire end-to-end process,” says

independent cloud components that

Munar. ”We provide a software-as-a-

SAP offers. For service, for instance,

service, cloud native solution.

for sales, for marketing, for commerce,

It’s a unique service, with no competi-

for billing and revenue management.

tor offering such a complete suite in

We’re bringing them together, extend-

the cloud. It’s important to emphasise

ing them from an industry perspective

the technological approach, because

— but you still have the option to buy and

that is what facilitates key business leads that we want to address, in

run them separately.”

Motivating customers to require a solution such as SAP C4U is an w w w.s a p . com

SMART SOLUTIONS FOR SMART CUSTOMERS

PROLOGA and PROLOGA Energy are software development and consulting companies serving utilities worldwide. Customer profit from a comprehensive consulting and system competence that prepares the ground for a big variety of modern industry-specific solution extensions.

MODERN UTILITIES: LEVERAGING NEXT LEVEL APPLICATIONS ON SAP® CLOUD PLATFORM It does not take a crystal ball to predict that the days of traditional utility companies are numbered. Both in terms of changing customer behavior and in terms of social trends such as digitalization: the industry is facing huge dynamics while being under fire from new technologies, complex IT systems and inconsistent processes. However, automation will continue to significantly change people’s lives in the years to come.

Robots and artificial intelligence are already part of our everyday lives: our goods are sent by drones, chatbots support our customer service and soon our cars will drive autonomously. Ideas about what the utility company of the future can look like are already becoming outdated because the future of this industry has long since begun.

More importantly, utility companies should ask themselves – do we want to play an active part in shaping these changes?

Digital transformation with intelligent solutions: SAP® Cloud Applications Is there a way for utilities to be both reliable and disruptive at the same time? Part of the answer might be software solutions such as SAP® Cloud for Utilities, the nextgeneration industry business solution that supports end-to-end industry processes across all business functions, at scale, in the cloud, and in real-time.

But even a solution as comprehensive as SAP® Cloud for Utilities cannot cover all the detailed areas and requirements of a modern utility company. These gaps are closed by industry-specific solution extensions, such as those offered by PROLOGA. Automated planning, execution and confirmation of services, the reading of consumptions and on-site billing are only some examples. Another one is the highly

sophisticated Capacity and Nomination Management solution that provides efficient means for gas transport management companies to monitor the execution of capacity contract bookings and validating received nominations. And last but not least, PROLOGA also provides enhancements on SAP® Cloud Platform that complement the solution portfolio.

PROLOGA and SAP: 15 years of experience, competence, and reliable partnership For more than 15 years, PROLOGA is serving SAP customers worldwide, delivering high-quality industry solutions and add-ons. The close collaboration with SAP ensures that solution extensions

by PROLOGA are perfectly matched to SAP’s products and follow the strategic direction set by SAP. Smart solutions for smart customers is much more than a slogan; it is our daily motivation to both rethink our established solutions and adapt them to the evolving markets.

Many companies have long since started the journey to an automated era, while utilities still seem to defend the market instead of attacking it. Together let’s take a clear view on the way in which your market is likely to evolve and how modern solution extensions can pave the way to it.

SAP

10 E X ECU T I VE P RO FI LE

Stefan Engelhardt Stefan Engelhardt joined SAP in 1997 where he supported the specification and launch of SAP’s first industry solution for utilities as Global Product Management Specialist.

Since then, Stefan has held various management positions within SAP’s Industry Business Unit Utilities, becoming Vice President Utilities in 2007.

In that role, he is responsible for SAP’s global Go-toMarket strategy for the utilities industry and focuses in particular on the definition and execution of SAP’s bi-modal product innovation strategy based on SAP S/4HANA for Utilities and the new SAP Cloud for Utilities solution portfolio.

evolving energy market, influenced by

growth, they will have to look to new

factors such as the rise of renewables

business dimensions, which is why the

and the decentralisation of power

platform supports non-commodity and

production. “The traditional commodity

multi-service capabilities,” Engelhardt

business no longer provides the mar-

adds. “We leverage elements and

gins or the revenue that is required,”

know-how from the 26 industry solu-

Engelhardt warns. “Utilities have to

tions we have at SAP such as telco,

extend their scope. They have to go

automotive and so on, bringing them

beyond the traditional energy business

together in order to allow utilities to

in order to offer value added or even

offer new bundled business services.

completely independent service offer-

Of course we also automate the tra-

ings.” SAP C4U is uniquely equipped

ditional processes of the commodity

to enable those in the industry to

business. That is the way towards what

compete in this brave new world. “For

Klaus calls the ‘self-running enterprise’.”

E XE CU T I VE PRO FI LE

Mateu Munar Mateu is currently Senior Director in the Industry Business Unit for Utilities. He’s responsible for the Go-to-Market of the new SAP Cloud for Utilities Suite. Mateu has 20 years of experience in the utilities industry — before joining the Industry Business Unit Utilities, he played several roles in the industry, first as Consultant and Solution Architect implementing the SAP for Utilities Solutions, and afterwards leading the Utilities Consulting Team in the EMEA region. He is highly experienced at working with utilities customers in different market roles, different countries and through the full cycle of the SAP for Utilities Solution.

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How SAP S/4HANA can accelerate your energy transition

By David Townshend EY Global Power & Utilities SAP Leader

In an energy market defined by uncertainty, the prospect of shifting to SAP S/4HANA may seem like yet another challenge. But the right approach to upgrading can help accelerate transformation and build a more intelligent, agile organization for the future.

The cliches about 2020 being the year of vision may generate eye rolls, but for energy and resource companies, the message hits home. The disruptive forces sweeping the industry — including decarbonization, digitization, cost pressures and empowered customers — are not new but their pace is quickening.

At the same time, energy and resource companies must move

forward in migrating to the new SAP S/4HANA software release. While for some, the prospect is daunting, many are reframing the challenge as a valuable opportunity. The powerful insights and connectivity delivered through S/4HANA combined with a forward-looking business view can help them reshape into intelligent, agile organizations — if they take the right approach.

Three ways to get the best from your S/4HANA migration Moving to S/4HANA will impact every part of your business. While a poor approach will create damage throughout the organization, the right one can drive the companywide transformation that is critical to create long-term value. The right approach involves three key elements:

The migration to S/4HANA provides a valuable opportunity to not only accelerate the energy transition, but reshape energy and resource companies into intelligent, agile organizations.

David Townshend EY Global Power & Utilities SAP Leader

1. Purpose-led: The migration to S/4HANA is an opportunity to reshape your business more broadly.

Now is the time to identify or confirm organizational purpose and align this with the implications for individual processes, systems and people. This helps guide a purposeled transformation that achieves those end goals.

2. Value-focused: The two most common questions clients ask as they contemplate their migration are: i.) how can we build a business case that stacks-up both now and in the future? And ii.) how can we do this as cheaply as possible with the least negative impact on our business?

We help answer these by realigning the process to the business strategy – identifying how much value can be derived immediately and how much more can be leveraged in the future. For example, better, faster data can improve some processes now, while building a future-proof technology platform will support the agile business model and workforce needed for growth. And, all the while, the core value of the company is protected through enhanced cybersecurity and compliance.

3. Smart automation: Intelligent automation and machine learning can accelerate S/4HANA migration, reduce costs and enable value to be realized far more quickly. Automated tools also allow resources to focus on transforming those areas of the business that can help achieve big-picture goals. Post-migration, automation and analytics facilitate ongoing monitoring of people and processes to support continuous improvement.

Fast-track your agile and intelligent future EY Agile Business Transformation for energy is a proven purpose-led, value-focused approach, specifically tailored to help energy and resource companies realize the potential of their migration to S/4HANA.

Leveraging the best SAP technology for energy and enhancing it with EY SAP-certified innovations can help deliver additional benefits throughout the energy value chain: customers and billing, asset management, finance, procurement, tax, HR and risk. The highly automated EY approach and suite of tools help clients accelerate their migration to S/4HANA, realizing benefits earlier, while limiting business disruption.

Will 2020 be the year you accelerate your transformation?

Discover how EY and SAP can help energy and resource organizations use S/4HANA to thrive in this era of extraordinary change.

Š 2020 EYGM Limited. All Rights Reserved. ED None.

SAP

“ Utilities are at the heart of the energy revolution that is going on globally�

Stefan Engelhardt, Global VP Go-to-Market Strategy, Industry Business Unit Utilities, SAP

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Lohnert identifies three key performance indicators that SAP seeks to address with the solution, including a reduction in the cost to serve, a decrease in the time to market for both classical and new energy offerings and an increase in revenue and profitability. Leveraging the cloud is one way of achieving that, but SAP is aware that its customers will be at varying stages on the cloud journey. “A lot of our development efforts are directed towards integration,” says Munar. “We provide a cloud offering, but we have to understand and be conscious of the fact that a big part of our business is on-premise.

Essentially, the scenario is evolving towards a hybrid model. Any customer can capitalise upon the investments that they have made in SAP, because we are securing that evolution with integration concepts out of the box. If they want to move into a hybrid mode, they can go there. If they want to go into a full cloud mode, they can do that as well.”

It’s not just about delivering growth.

C4U can also help companies achieve increased efficiency, and with efficiency comes more sustainable ways of doing business. “Utilities are at the heart of w w w.s a p . com

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the energy revolution that is going on globally,” says Engelhardt. “They are in the driver’s seat to optimise, manage and build value added services in order to achieve efficiency and to benefit from new business opportunities. That is a key focus for us as we shape and develop the solution portfolio.” While SAP C4U is a business suite rather than a technical system, it still has a part to play in this transition. “What’s happening at the moment is a tremendous infrastructure programme, going 16

from a centralised to a decentralised system,” says Lohnert. “The biggest challenge we have is to accelerate this process, and we offer services to access end customers that want

Having cultivated a successful rela-

to buy a solar panel or a heating sys-

tionship with professional services firm

tem or charging stations.”

Accenture, which saw SAP contribute from a product side and Accenture

“ We provide a softwareas-a-service, cloud native solution”

from a services side, C4U represents a co-development between the two organisations. “Accenture are market leaders and they know the industry well,” says Munar. “They know our solutions, having done this together in the

Mateu Munar, Senior Director, Industry Business Unit Utilities, SAP

past. From a go-to-market perspective, and from a development perspective, it’s a win-win.” Engelhardt concurs,

1972

Year founded

$24.7bn+ Revenue in euros

96,000+ Number of employees

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adding that “we have many equally

coming from other areas and enter-

important partners, such as rku.it,

ing the space. Maybe our customers

smartservices, Cronos, bpc, Natuvion,

of the future are not just utilities, but

E&Y, Atos or IBM.”

other service providers who start to

Going forwards, the aim for C4U

complement services with energy.

is clear, as Engelhardt articulates.

Our platform should provide both with

“There is one simple goal. We want

the necessary tools and processes

to help our customers to transform

to be successful.”

their business into the next dimension, and we’re doing the same on our side. At the same time, I think what we are seeing happening that is interesting for us is more and more players w w w.s a p . com

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