Energy Digital - January 2017

Ja nua r y 2017 • www.energydigital.com

Smart metering around the world Special report: Maynilad Water

Wind

Power

TOP 10 onshore windfarms

NABERS Australia’s sustainable building standards

EDITOR’S COMMENT

WHAT LIES AHEAD 2016 WAS A rollercoaster year as far as the energy industry was concerned.

From oil price collapses and Canadian wildfires to landmark climate agreements being struck in Paris, it is fair to say a lot has gone on over the past 12 months. Trying to predict what 2017 has in store could well end up being a fool’s errand if 2016 is anything to go by.

To start 2017 we have a sustainable series of features, kicking off with a look at Nabers, Australia’s sustainable building standards organisation. Next, a guide to smart meters and how they have been adopted around various parts of the world – what seems such a simple solution could be a game changer in terms of cost and emissions outputs.

Finally, our top 10 charts the most important onshore wind farms in the world, with the USA and China among the big contributors.

I hope you enjoy the issue, join the debate via @EnergyDigital

Tom Wadlow Editor tom.wadlow@bizclikmedia.com 3

CONTENTS

06 PROFILE

F E AT U R E S

BUILDING standards

TECHNOLOGY

12 The global

smart meter revolution 4

January 2017

LIST

18 Wind

Power

TOP 10 onshore windfarms

C O M PA N Y PROFILES

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North American Power USA & Canada

86

26

Mann Hummel Australia

Maynilad Water Services, Inc. Asia

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SCT&E LNG

SAP

Australia

98

USA & Canada

74

Fujitsu Australia

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PROFILE

BUILDING standards

How the National Australian Built Environment Rating System is ramping up the country’s sustainability profile Wr i t t e n by : A LI C E YO U N G 7

PROFILE HOW EFFICIENT ARE Australia’s buildings? The number of voices asking this question has grown considerably in recent years, with government, businesses and citizens all becoming increasingly concerned with the impact their buildings are having on the greater environment.

And, with the Australian Government looking to achieve a 40 percent productivity increase in national energy usage by 2030, the question has become one of national concern.

Set up over a decade ago, the National Australian Built Environment Rating System (NABERS) is managed by the NSW Office of Environment and Heritage and is stepping up to the challenge of providing the answer to this ever pressing question. By collecting and comparing data, the organisation enables its users to take stock of energy usage and follow up with improvements to boost their future rating.

Rating Australia At its core, NABERS uses a nationally applied rating system to measure the environmental performance of Australian

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‘With a clear goal to maintain the current interest in building emissions, NABERS is leading the nation towards a new, sustainable future’

buildings, homes, and tenancies.

NABERS takes a number of factors into account when it comes to making assessments; it measures such variables as energy efficiency, water usage, waste management and indoor environment quality. NABERS uses a rating system that goes from one to six stars – the latter representing exemplary, market leading performance, and a one star

B U I L D I N G S TA N D A R D S

performance indicating that serious room for improvement is required.

How does NABERS rate the performance of a building? Over a long time period (typically 12 months) the organisation collects data from a range of variables, including energy or water bills, or waste audit. Specifically, the rating considers five key factors which comprise climatic conditions, hours of use, the level of building

service provision, energy sources used, and the size and occupancy of the building. Furthermore, the program compares building performance with benchmarks that represent similar buildings in the same location.

For its varied user base, the accredited rating shows both what is working and what needs to be improved;

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PROFILE

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B U I L D I N G S TA N D A R D S

businesses can set targets to be completed in the year before the next review and can thus make meaningful energy changes while saving money.

Building skills In order to ensure that its ideology propagates as far as possible, NABERS provides an accredited online ‘Essentials’ training course.

The company states: “The course is essential for anyone involved in commercial property, such as owners, managers, tenants, real estate agents, lawyers, valuers, and consultants, as well as professionals in sustainability and energy management. It is also becoming increasingly relevant for professionals working in the finance industry.”

The course consists of six, 30 minute modules that cover every aspect of NABERS ratings. Learners will come to understand more about the objectives of NABERS, how its star ratings work, energy targets, self-assessments and auditing.

Alongside the Essentials course, NABERS also provides training specialised to a number of important industries, particularly for assessors working in shopping

or data centres – two key energy consumers that stand to benefit from the transparency that ratings typically bring. The organisation also offers Commercial Building Disclosure (CBD) training that allows recipients to assessors apply for Building Energy Efficiency Certificates (BEECs) on behalf of building owners, conduct CBD Tenancy Lighting Assessments, and provide assessor supporting statements for exemption applications. Knowledge is also disseminated through its website, which makes a number of helpful tools available to users, which are divided into case studies, a resources library, a helpful glossary of terms, and a section dedicated to tips and tricks.

With a clear goal to maintain the current interest in building emissions, NABERS is leading the nation towards a new, sustainable future. By offering so much more than buildings accreditation, the organisation has grown to become a one-stopshop for people and businesses seeking to learn more and deliver positive, long-lasting change.

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TECHNOLOGY

The global smart meter revolution How is the world responding to smart meters? We take a look at how the energy saving devices are being rolled out across the globe Writ ten by: WE DAE LI CHIBE LUS HI

TECHNOLOGY SMART METERING: THE crux of a ‘revolution’, according to Spain’s Telefonica. The British government calls them “the next generation” and if you ask France’s EDF, they’re the “smarter future”.

The new gas and electricity meters seem set to transform the way the world monitors its energy usage.

You can see the universal appeal; the meters have several proposed benefits. Smart meters

display near real-time data on energy use, which allows households and businesses to better manage their energy use. Plus, it brings an end to estimated billing. Consumers can budget better and energy suppliers deal with fewer billing complaints. It’s a win-win situation.

Providers all over the world recognise the demand for efficient energy use, thus smart meter programmes are being developed globally. For example, the British government plans to install a smart meter

THE GLOBAL SMART METER REVOLUTION

in every home (over 26 million) by 2020. According to the government, some energy companies are starting to install smart meters now. The smart meters are free, although the cost of the roll out will already be covered in the consumer’s bill. Why the huge rollout? The European Union asked its member states to consider smart meters as part of their efforts to reduce climate change. The British government conducted a study and adopted the aforementioned plan.

by up to nine percent. Largely, EU governments and European energy providers are enthusiastic about the rollouts. For example, Germany will see the installation of 44 million smart meters by 2026 and a total investment of £18.73 billion in smart grids.

Around the world While Europe has been planning rollouts, the rest of the world has been kick-starting its own smart meter revolution. Take Pakistan,

‘Consumers can budget better and energy suppliers deal with fewer billing complaints. It’s a win-win situation’ The EU has also encouraged other member states to rollout smart meters. A report from the European Commission states that along with the UK, Austria, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Luxemburg, Malta, Netherlands, Poland, Romania, Spain, Sweden “will proceed with large-scale roll-out of smart meters by 2020 or earlier, or have already done so. An EU sanctioned study found that the EU’s efforts could cut emissions

for instance. Pakistani utility firms and the Asian Development Bank (ADB) have announced that they are currently selecting a partner for the deployment of a smart meter project.

The project’s first phase is set to begin by June 2017. In neighbouring India, utility firm Southern Power Distribution Company of Telangana has kick-started a prepaid meters pilot project. The outcome will help the Indian government decide whether or not to deploy prepaid electric meters.

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TECHNOLOGY

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THE GLOBAL SMART METER REVOLUTION

Trials are also taking place in Singapore. The government is reported to be exploring the possibility of widespread smart meter deployment. According to the Business Times, most electricity meters in Singapore are currently read manually once every two months, together with gas and water meters. Singapore’s Energy Market Authority hopes to improve this.

Along with the national water agency and Singapore Power, the Authority is working towards developing a solution for reading gas, electricity and water remotely and reliably.

In Nigeria, Kaduna Electricity Distribution Company (KEDC) is planning to establish a manufacturing plant for smart meters. The utility firm plans to construct the $250 million manufacturing plant in order to reach its smart meter installation targets in Kaduna, Kebbi, Zamfara and Sokoto states. KEDC aims to install 500,000 smart electric meters to its customers by 2021. Likewise, Kenya’s primary energy distributor plans to install 5,600 outdoor meters near customer premises.

Smart meters are also popular in the US. For instance, the Texan

‘The British government plans to install a smart meter in every home (over 26 million) by 2020’ city of Rowlett will soon undergo an advanced metering infrastructure project. The project, in partnership with water conservation firm Pedal Valves, involves the replacement of approximately 18,000 automated water meters with new advanced water meters. The Pennsylvanian town of Cranberry is taking similar efforts.

The town has received an approval to replace existing water meters with digital meters in a bid to improve its revenue collection. The town will replace 7,800 analogue meters with advanced water meters this year.

Evidently, smart meters are part of many governments’ plans to cut carbon emissions and save energy.

The demand for efficient meters knows no geographical bounds, and energy companies around the world are responding to it.

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Wind

Power

TOP 10 onshore windfarms

TOP 10

Energy Digital rounds up 10 of the world’s largest onshore windfarms based on megawatt capacity Written by: Tom Wadlow

TOP 10

Fântânele-Cogealac Wind Farm, Fântânele & Cogealac Location: Romania Capacity: 600MW Contributing around 10 percent of Romania’s renewables output, Fantanele-Cogealac Wind Farm is one of the largest wind projects in Europe and cost $1.5 billion to put together. There are 240 turbines using the latest turbine technology from GE, with parts coming in from Germany, Brazil and Spain. The European Investment Bank provided a €200m loan for the construction and development of the wind project.

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Capricorn Ridge Wind Farm, Texas Location: USA Capacity: 662.5MW Located in Sterling and Coke counties of Texas, Capricorn Ridge is a 662.5MW windfarm comprising more than 340 GE wind turbines and 65 Siemens turbines. The farm generates enough electricity for more than 200,000 homes and effectively takes 186,000 cars off

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the road when evaluating equivalent fossil fuel output.

Horse Hollow Wind Energy Center, Texas Location: USA Capacity: 735.5MW Split into three parts, Horse Hollow Wind Energy Center is a flagship example for the USA’s wind energy sector. Housed in Texas, the leading US state for wind power, the site can be found in Taylor and Nolan counties. It was built and is owned and operated by a subsidiary of NextEra Energy Resources, with 421 turbines capable of generating enough electricity to power more than 220,600 homes.

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O N S H O R E W I N D FA R M S

Fowler Ridge Wind Farm, Indiana, Location: USA Capacity: 750MW In terms of sheer size, Fowler Ridge is one of the largest wind farms in the world, spanning some 50,000 acres and supplying enough power for 200,000 homes. The plant is owned and operated jointly by BP Alternative Energy North America and Dominion Resources, each with a 50 percent stake.

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TOP 10

Roscoe Wind Farm, Texas Location: USA Capacity: 781.5MW Once the world’s largest onshore windfarm, Roscoe is another fine example of Texas leading the way in this sector. The Roscoe Wind Farm comprises more than 620 turbines spread across 100,000 acres, capable of producing enough electricity to power 265,000 homes.

Operational since 2009, the project cost around $1 billion to complete.

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January 2017

Shepherds Flat Wind Farm, Oregon Location: USA Capacity: 845MW Shepherds Flat opened in 2012 and is a $2 billion project backed by Google.

Contributing a sizeable chunk of Oregon’s renewable energy, it is predicted that the site generates $37 million in annual impact from the electricity it produces. The three wind farms deploy 338 wind turbines across 32,100 acres to generate 845 megawatts of clean energy – enough to power 227,000 homes.

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O N S H O R E W I N D FA R M S

Jaisalmer Wind Park, Rajasthan Location: India Capacity: 1,064MW India is one of the leading providers of onshore wind, with Jaisalmer Wind Park, one of the country’s most important sites, generating more than 1,000MW of power. It comprises of a cluster of wind farm sites within Jaisalmer including Amarsagar Badabaug, Tejuva and Soda Moda among others. The wind park houses projects of various companies including Mytrah Energy, Hindustan Zinc Limited, Hindustan Petroleum Corporation Limited, Rajasthan State Mines & Mineral Limited, Rajasthan Renewable Energy Corporation Limited and Rajasthan Gums Limited.

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Muppandal Wind Farm, Tamil Nadu Location: India Capacity: 1,500MW Muppandal is a small village on the southern tip of India in Kanyakumari District, in the state of Tamil Nadu.

Though a small village, it is home to a series of massive sites containing turbines which produce 1,500MW of electricity for the region. The Indian government plans to massively expand its wind power programme to include village communities, where a large proportion of the country’s 1.25 billion people still live.

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TOP 10

Alta Wind Energy Center, California Location: USA Capacity: 1,548MW The Alta Wind Energy Center is USA’s largest wind facility and second largest onshore site in the world. It is located in the wind resource area at the Tehachapi Pass in Kern County and windfarm supplies 1,548 megawatts (MW) of renewable energy to Southern California Edison (SCE) customers. It will continue through to 2040 under a 3,000 MW wind power development initiative, producing enough electricity to power 450,000 homes.

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O N S H O R E W I N D FA R M S

Gansu Wind Farm, Gansu Location: China Capacity: 6,000MW In 2012, Gansu’s capacity surpassed the total windgenerated-electricity produced by all of the United Kingdom, and it’s just the largest of six megawind farms currently under construction throughout China. The project will produce a massive 20,000MW of power by 2020 and will cost nearly $20 billion to build. Turbines are going up at an astronomical rate of 35 per day across the three areas that make up the power base. Developers on the project include Huaneng and Datang.

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e n h o T itisati g i d aynilad M f o nlon a H ’ O John n Chavda y b n Writte ed by Kiro c Produ

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Maynilad Water Services, Inc. has helped a large population of Metro Manila reap huge dividends in health and lifestyle benefits, thanks to an IT transformation of its water service

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he Philippines is not a country that suffers from a lack of water. The capital Manila enjoys an average monthly rainfall of around eight inches, and its 22 million population does not generally go thirsty. However like every large city that has grown through rapid urbanisation, it has struggled to modernise its infrastructure at the pace required. Managing the supply of clean water and the downstream activities of runoff and sewerage management were inadequate prior to 1997 when the water service was privatised. The government-owned Metropolitan Waterworks and Sewerage System served the metropolitan area, however, a significant proportion of sewage ended up in storm drains or open canals. It was neither an efficient nor a healthy situation.

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In 1997, the government awarded contracts to two companies, splitting Metro Manila into west and east zones.

The West Zone went to Maynilad Water Services, Inc. (Maynilad), a consortium that subsequently ran into financial difficulties and returned the concession to the government.

In 2007, water services were again placed in private hands—under the DMCI-MPIC Water Consortium.

New management subsequently implemented the necessary intervention and poured the needed investments that made possible Maynilad’s dramatic turnaround from financially crippled utility to consumer-focused organisation.

Today, Maynilad is under the ownership of three principal shareholders: Metro Pacific Investments Corporation which holds majority shares at 53 percent; DMCI

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Holdings, Inc., a local infrastructure company, with 25 percent; and Marubeni of Japan with 20 percent. Maynilad is responsible for the water and wastewater services in the western part of the Greater Manila area, serving a population of more than nine million in 17 cities and municipalities. Maynilad’s concession contract has been extended to 2037.

Clearing the way for improvement The new management invested heavily, and it needed to. Leaking pipes were a big concern. In 2007, 67 percent of the water that left the treatment plants was classed as ‘non revenue’, in other words most of it was lost though leaks, though much was illegally diverted. Replacing the large pipes made a big difference in a reasonably short time, but detecting leaks and illegal extraction was just one aspect of running a complex and geographically extensive utility that cried out for the application of new technology.

In March 2011, Dr Francisco Castillo, who had been overseeing the IT system from his position as Managing Consultant at the Spanish IT consulting firm Indra Systems, was appointed as CIO and Senior VP of Maynilad, with a seat in the management committee to reflect the key role IT was to play in setting the strategy that would

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Francisco Castillo CIO and Senior VP

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1 In everything now in one place. #

Let the transformation begin.

Copyright Š 2016 Dell Inc. or its subsidiaries. All Rights Reserved. 10/2016 DIH1894

ASIA

take the company right up to the cutting edge of global best practice. In-house IT was never going to be the answer – his strategy was to outsource all of the operational and maintenance systems.

“It meant redrawing the organisational map” he says. “I now have a very small and strategic IT team of nine, six of them as Project Managers engaged in managing contracted-out projects.”

His first priority was to fix the networks, servers and storage, so he set in motion a series of projects to create a robust infrastructure out of something that was, frankly, a mess. “It meant revamping our network in terms of cabling, putting in fibre connections to connect all of our remote offices and changing every one of our switches. Then we standardised and virtualised all our servers, becoming the first organisation in the Philippines to do so.”

At the same time it was necessary to re-engineer all the applications. SAP had been set up as a tool to automating manual processes rather than as an ERP platform that would support all the business critical systems. SAP was re-implemented with additional modules, and the customer relations platform revamped to the latest iteration of MS Dynamics software. “The CRM system used to reliably crash every four hours,” he observes wryly, “and the solution the former IT team had reached was to programme it to reboot every three hours.”

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M AY N I L A D WAT E R S E R V I C E S , I N C .

The product itself was not at fault – it just hadn’t been implemented properly.

field of IT/OT convergence. Now he has another OT team of 15 people, larger because these functions have IT/OT convergence not been outsourced. “By uniting the Revamping the core IT was a major two, data can be taken straight from task, and it delivered great results in the plant into the IT system and you increased efficiency throughout the can see online how production is organisation. There was however doing, what issues you have with your another side to equipment, and how the coin. There is you need to schedule a huge amount maintenance.” of information To facilitate this, available from he has implemented the sensors, the FIELD MOUS equipment and (Field Monitoring User plants belonging to System). It’s a set of employees currently a sprawling water software modules at Maynilad Water utility, much of it designed for plantServices, Inc. ‘locked in’ and wide monitoring hard to access. and analysis. It also These monitor water flows, pressure, comprises a system data archive that chemicals, pollution, acidity and many handles the collection, storage, and other things besides. Most companies retrieval of data and also acts as a run their IT and OT (operational data repository for all applications. technology) functions as separate Ultimately it allows management to departments, so it was a radical step understand where the business stands in 2014 when OT was placed under operationally at any given moment Castillo. It established Maynilad as in time. FieldMOUS is Maynilad’s IoT a leader in the much talked about platform, enabling sensor data to be

2147

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Part of daily monitoring tasks is to read the value displayed at the power meter

The FieldMOUS (Field Monitoring User System) program is the main technology for monitoring vital field data.

By uniting IT and OT, data can be taken straight from the plant into the IT system and you can see online how production is doing

M AY N I L A D WAT E R S E R V I C E S , I N C .

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viewed, virtually in real time, at the new central control room which was commissioned only in August this year.

The major manifestation of the IT/ OT landscape has seen the number of applications running within the business from 16 in 2011 to around 60 today, and from 35 physical servers to more than 350 virtual servers, says Castillo. Over the same period the number of reportable incidents has reduced dramatically, in fact by 70 percent within the first nine months. “It is hard to argue with myself if it is all under me. We are reaping the benefit because we can get the data straight from the sensors and feed it into our

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The Maynilad Central Control room, from where all water and wastewater facilities are monitored and controlled

different IT systems. There are many ongoing projects to maximise the benefits of that convergence. Over 50 facilities have been automated, with more than 900 instruments regularly calibrated and maintained,” he says.

Better for business, better for users At any point in time Maynilad has some 60 IT projects ongoing, and a similar number of OT projects. “Over the last five years we have moved fast. I could say we have improved from Jurassic to even beyond the state of the art in some areas.” Postconvergence (though that process is

still ongoing) among the priorities now being refined are IT/OT security and the physical security of the facilities and remote equipment. One important focus is the improvement of customer service and customer experience.

The key thing has been to provide a reliable water supply. Back in 2007 only 46 percent of customers were receiving a 24-hour water service, now it is close to 100 percent: then the number of connections was around 700,000, now it’s over 1.3 million. Nevertheless a lot more can be done. The first phase, now complete, was to make billing available online, via SMS or by e-mail, and the next

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target will be to have an automated advisory service that will give advance notice of interruptions in service, maintenance issues and the like.

The people in the West Zone concession don’t need a long memory to appreciate the difference, and now the management of Maynilad can make informed decisions knowing precisely the true state of the business thanks to the business information dashboards they can access. It’s important to remember, he says, that in a highly regulated industry, where water prices are set by the government, the only real business improvement deliverables are internal ones, mainly in operational efficiency.

Automation is an ongoing process says Francisco Castillo, but many plants have been fully automated and over the next two years all of them will be managed directly from the central control room. “We have dramatically improved on all of the key performance indicators that the regulator expects of us, and we are now on a par with any 21st century utility,” XXXXXhe concludes. “Non-revenue

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water is now down to 30 percent and that is improving monthly.” In September, Castillo was declared ASEAN CIO of the year, an annual recognition given to an individual who has displayed exceptional leadership and contributed significantly to his company’s growth and influence.

Under his leadership, Maynilad was able to obtain an ISO 20,000:1 certification for its information technology service management system, and also received the SAP Customer Centre of Expertise certification for its efficient business processes. Capturing all these lessons learned, this year he wrote a book entitled ‘Managing Information Technology’ (Springer, Germany) which in effect is a compendium of best practices in the industry and how to apply these.

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Sustainability is at the forefront of

SCT&E LNG’S NEW FACILITY within LOUISIANA

Written by Catherine Rowell Produced by Tom Venturo

SCT&E LNG, INC.

SCT&ELNG is constructing a $6.9 billion Liquefied Natural Gas (LNG) Export Terminal within the State of Louisiana, providing an environmentally-friendly and clean fuel source to the global energy mix with an increased emphasis on sustainability

C

ompanies worldwide are increasingly tasked with finding cheaper, more sustainable energy sources that will reduce increasing levels of environmental pollutants while continually meeting the demands of its growing consumer base. Originally established by Southern California Telephone Company, SCT&E LNG is now globally renowned as the developer of a 12 mtpa natural gas liquefaction and LNG export facility on Monkey Island in Cameron Parish, Louisiana.

The company’s innovative and technical innovations in providing sustainable and affordable natural gas via LNG to countries in need of clean burning and inexpensive

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energy solutions has been globally recognized, at which the company has been recently nominated for the CWC Asia Pacific LNG Innovator of the Year Award for its unique 20year fixed price LNG supply offering, a first of its kind in the industry.

“The United States has an abundance of clean natural gas, and there are places in the world that are in desperate need of clean fuels, rather than pollutants which we are currently experiencing. SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it,” explains Eric Smith, Executive Director of Business Development.

SCT&E LNG’s unique 20-year fixed price option is just the beginning of the company’s innovative offerings

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in the industry. According to CEO Greg Michaels, the company is “currently working on crafting LNG supply deals based on exotic indexes, something no one else has been able to achieve before.”

Multiple natural gas pipelines are located close to the 246-acre project site, which will allow natural gas to be collected and treated effectively in order to go through the liquefaction process where the gas will be cooled to -162°C (−260 °F) degrees. The LNG will then be placed within three onsite storage tanks situated alongside three LNG trains incorporated into the SCT&E LNG development. The storage tanks will hold around 160,000 cubic meters of LNG supply each, which will cater to the increasing demand for clean burning fuels, and can be utilized for a multitude of needs, from commercial and residential use, to industrial and transportation services.

While innovation is a key distinguisher of SCT&E LNG’s business philosophy, pursuing “proven” strategies, technologies and locations is also a fundamental

about Strategically located on Louisiana’s Calcasieu Ship Channel, the future SCT&ELNG facility sits approximately 2.5 miles inland from the Gulf of Mexico. The project site is located near the heart of the U.S. natural gas intrastate and interstate pipeline systems, just miles from major gas pipeline interconnections.

SCT&E LNG has received Order No. 3566 from the Department of Energy granting them a 30year authorization to export approximately 1.60 billion cubic feet per day (bcf/d) of natural gas, or approximately twelve (12) million tons per annum (mtpa) of domestically produced LNG, by vessel from the proposed SCT&E LNG Export Terminal to countries with whom the United States has a Free Trade Agreement.

SCT&E LNG also has a nonFTA application on file with the DOE that is pending approval.

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SCT&E LNG, INC.

aspect of its business model.

Louisiana already has a robust infrastructure in place and has garnered strong community and government support. The $6.9 billion SCT&E LNG development will provide over 1,500 construction jobs, boost the US economy and has garnered widespread political support.

Louisiana is also currently the third natural gas producer and the ninth crude oil producer in the nation. “Our facility will have a direct positive impact on the health of tens of thousands of people where our

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gas will be consumed as well as contribute to the health of the global environment,� adds Michaels.

The SCT&E LNG project is headed by a strong executive team of energy professionals with vast experience within the LNG and EPC industries.

Vice President of Engineering, Scott Ray, has extensive knowledge and vast experience in designing and constructing a number of LNG liquefaction facilities globally, in addition to commissioning five LNG trains and seven cryogenic storage tanks. With over 27 years

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of experience in Engineering, Construction and Procurement (EPC) industry, Ray’s expertise compliments that of Smith, who is currently developing the project’s commercial and business development strategies.

“Our strategy is to have the most knowledgeable team of people with a high level of industry experience directly related to developing projects like ours. We run with a lean team to maintain staying power through the development phase, and to bring results and return on investment to our partners”, explained Michaels.

Running lean is a fundamental factor in SCT&E LNG’s continued success, and the project has been able to achieve several key milestones

at the fraction of the money spent by other, more heavily funded projects.

Michaels explains, “We are careful with our capital and understand what an important tool it is. We operate under a “waste nothing” mentality and negotiate with every contractor aggressively. We listen intently to our advisors and contractors, then apply their recommendations based upon our team’s extensive experience.

We approach our customers/ offtakers with the mindset of best supporting their needs. The response from offtakers on our commercial innovation, proven decisions, and customer service confirms that SCT&E LNG’s way of operating is working.”

SCT&E LNG has placed an

“The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most” – Greg Michaels, CEO

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8/19/16 3:01 PM

ENERGY

increased emphasis on fulfilling what for the SCT&E LNG project. has been titled the “second wave” of “The long term, global benefit of our LNG demand, which is predicted to facility is the improved environmental begin in 2023 and rise thereafter. This impact it will have in places, such prediction coincides with the timing as China and India, where coal is of SCT&E LNG’s being used as a signed Natural Gas primary fuel source Supply Agreement, and resulting negotiated by in high levels of Michaels, which pollution in the begins at the atmosphere,” adds commencement Michaels. “This of the facility’s pollution is causing operations around devastating health 2023 and ensures consequences for a 20-year fixed the communities, price for the supply and natural gas of LNG for SCT&E fueled energy will LNG’s customers. work to greatly This agreement improve the air has enhanced quality of these the appeal of the countries.” Natural facility’s LNG for – Eric Smith, Executive Director gas is known buyers, creating of Business Development to be twice as a competitive clean burning as advantage for the company and traditional energy sources, such as oil its shareholders. Five confirmed and coal, and will provide increased MOUs have been signed to date benefits through the reduction of for a total of 5.7 mtpa of LNG, pollutants regularly emitted. signifying increased momentum A number of key partners have

“SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it”

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51

SCT&E LNG, INC.

been bought into the project to deliver crucial engineering services and help drive the project forward. Technip has been selected as the Owner’s Engineer for the development and will undertake work relating to the Federal Energy Regulatory Commission (FERC). In addition, Technip has significant experience working with Air Products and Chemicals Inc. (APCI), the liquefaction technology provider selected for the SCT&E LNG project, a relationship that will be advantageous

50

+

YEARS OF EXPERIENCE MITIGATING RISK

in successfully moving the project forward through completion.

Ray remarked, “We selected the world’s number one LNG technology, Air Products and Chemicals. We’ve done that because it’s proven to be the best technology with the lowest cost for producing LNG.” Ray further adds, “for technology, two gas turbine drivers are currently being considered – one by GE Oil and Gas and the other by Siemens.”

The expected demand for clean

Fugro is proud to be a selected partner for SCT&E LNG. We have a proven track-record providing data acquisition, comprehensive project management and risk mitigation. Clients trust our capability providing integrated solutions onshore and offshore to the LNG industry while maintaining world HSEQ standards.

Fugro inquiries@fugro.com www.fugro.com

ENERGY

fuels is predicted to triple within the next 20 years, which will yield a multitude of challenges for both suppliers and consumers. Eric Smith explains, however, “the main challenge presently faced in the global market is getting customers to make the switch from coal to natural gas on a long term basis”.

He adds: “Coal has historically been cheaper than natural gas, but it’s also extremely bad for the environment. What we’re finding is that the carbon tax being considered in many countries around the world is an attempt to equalize the price of coal with other cleaner fuels to encourage those nations to make the switch to fuel sources that will have less of an impact on the environment.”

The company, however, has acknowledged the need to find sustainable solutions that will also benefit the global community while driving the delivery of greener, cleaner energy sources for the world: “A huge driver for us is the environmental impact the increased use of natural gas will have, which in turn affects society as a whole.

People would like to have a cleaner

atmosphere because it affects their quality of life, and our project will deliver fuels to these communities that will provide them with their electricity and create a cleaner atmosphere,” concludes Smith.

The long term benefits of the project are evident. “The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most”, reflected Michaels.

SCT&E LNG are clearly passionate about not only the sustainability and superiority of LNG as an energy source, but also the increased advantages it has over dirtier fossil fuels which the SCT&E LNG development can deliver globally.

Strong partnerships will support the delivery and key outcomes, which in turn will effectively support countries in utilizing greener fuel alternatives to provide benefits for the future.

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SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM development of a $6.9 billion natural gas liquefaction facility located in Southwest Louisiana for the export of LNG globally.

As Chairman and CEO of SCT&E LNG, he has spoken on LNG issues internationally and is a published author.

At the age of 26, Mr. Michaels founded Wholesale Airtime, Inc., now Southern California Telephone Company, one of the few privately-held

Greg Michaels CEO

telecommunications companies to successfully navigate the Telecom Act of 1996 that deregulated the telecom industry in the United States. Early

A lifelong entrepreneur, Greg Michaels

in his career, Mr. Michaels wrote his

completed the highly selective and well

company’s first brief petitioning the

respected Entrepreneurship Program

California Public Utility Commission

at the University of Southern California

(CPUC), who subsequently granted

(USC) Marshall School of Business.

his company’s Certificate of Public

Mr. Michaels majored in Business

Convenience and Necessity, creating one

Administration and completed an

of the first privately-held public utilities

additional pre-medical curriculum. During in the State of California. As a pioneer his four years at USC, he competed of the telecom industry, he developed as a student-athlete on the acclaimed

the process and platforms that allowed

USC Men’s Varsity Tennis Team. After

Competitive Local Exchange Carriers

his time at USC, Mr. Michaels pursued

to interconnect their networks via

a career as a professional tennis player.

incumbent communications providers

Mr. Michaels is a national champion

and contributed to the success of number

and still competes currently. Today,

portability that all Americans enjoy today.

Mr. Michaels is a successful business

Mr. Michaels has capitalized on his ability

leader and is the developer, owner, and

to build successful teams by identifying

operator of a number of businesses

personal strengths in individuals

encompassing telecommunications,

and further developing them. He has

real estate development, energy, and

employed thousands of people and

oil and gas. In 2014, Mr. Michaels

is well respected by his management

established a LNG company for the

teams and personnel. He has bought,

Greg Michaels, CEO

GREG MICHAELS

ENERGY

sold, and started over two dozen

LNG, a company he founded to help fill

companies. A recent acquisition gained

the growing global demand for natural

him a controlling interest in North Energy

gas. Focused on the energy revolution

Central (NEC) www.northenergycentral.

taking place in North America, Mr.

com. The principals of NEC have

Michaels seeks to become an exporter

developed over $5 billion in power

of U.S. natural gas while simultaneously

generation facilities worldwide which

helping the United States become a

include bio fuel, nuclear, and natural gas-

net exporter of its energy. In March

fired power plants fueled

2014, Mr. Michaels led SCT&E LNG, via

by LNG.

the LLC, to acquire approximately 246

Upon acquisition of the controlling

acres of land via a 99+ year (including

interest in NEC, Mr. Michaels took over

the option terms) Option-to-Lease

stalled negotiations with the Dominican

agreement in Southwest Louisiana

Republic government to build a 300

for the development of an LNG export

megawatt gas-fired power plant. Within

terminal. The project is modeled as a 12

months of the purchase of NEC, and

mtpa natural gas liquefaction facility.

leading new negotiations with the state-

In addition to his business interests, Mr.

owned electric utility, Corporación

Michaels’ passion for his community

Dominicana de Empresas Eléctricas

and sense of civic responsibility led

Estatales (CDEEE), Mr. Michaels

him to coach youth soccer and tennis

increased the scale of the project and

for over fifteen years where he parlayed

signed a Memorandum of Understanding

his strengths in talent development

(MOU) with the CDEEE for the

and team building. Mr. Michaels

development of a 400 megawatt gas-fired

successfully led his soccer teams to

power plant and LNG receiving terminal.

earn fifteen division championships and

The total project costs were estimated at

over thirty tournament championships.

approximately $850 million. Mr. Michaels

Mr. Michaels believes, “Success is

negotiated additional terms that included

achieved by helping people accomplish

provisions which allowed NEC to provide

what they never thought possible.” Mr.

the Dominican government with its

Michaels runs all areas of his life by this

foreseeable natural gas requirements.

philosophy. He is a dedicated family

Mr. Michaels and his wife founded

man, husband of 24 years, and father

and 100% own Southern California

of three adult children, one who is a

Telephone Company, a United States

graduate of Cornell University, another

public utility. Mr. Michaels’ latest

currently attending Cornell, and one

endeavor is the development of SCT&E

who attends Pepperdine University.

SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM positions designing, building, and commissioning LNG liquefaction facilities globally, and has engineered and commissioned five LNG trains and seven cryogenic storage tanks to date.

Mr. Ray’s engineering career began at MW Kellogg, now Kellogg Brown and Root (KBR), in a program designed to develop young engineers. MW Kellogg was recognized as an international leader in the field of LNG facility

Scott Ray, Vice President of Engineering for SCT&E LNG

design. After completing the MW Kellogg engineering program, Mr. Ray joined a startup team from MIT, Aspen Technology, to develop software for

Raised in an entrepreneurial family

chemical engineering companies. While

in a small town near Pittsburgh,

at Aspen Technology, Mr. Ray was part

Pennsylvania, Scott Ray grew up working

of a team that successfully took the

on farms and developing real estate with

company public. During the time Mr.

his father. His father instilled in him the

Ray worked at Aspen Technology, the

importance and value of hard work and

stock price increased over 400%. He

dedication, and this work ethic propelled

was recognized at Aspen Technology

him to strive for excellence which landed

for making the company’s single largest

him in one of the most prestigious

sale to Fluor, a highly recognized

engineering colleges in the world,

global engineering company. As part

Carnegie Mellon University. Mr. Ray

of the sale, Mr. Ray spent roughly

covered much of the cost of his college

one year at Fluor implementing a

tuition from the proceeds of his real

training program with its employees.

estate transactions. After completing his

Upon the completion of his

Chemical Engineering degree at Carnegie

responsibilities at Fluor, Mr. Ray

Mellon’s College of Engineering, Mr. Ray

rejoined KBR to pursue his passion for

has had a successful 26-year career

LNG development. At KBR, Mr. Ray

in the EPC business. With a focus on

was part of a world-class engineering

world scale LNG projects, Mr. Ray has

and design team that developed LNG

served in a wide variety of leadership

facilities globally, which included

S C O T T R AY

ENERGY

Qatar Gas LNG Liquefaction, Malaysia

of Maryland in the United States. His

LNG Liquefaction, Nigeria LNG

Aker Kvaerner team served as the EPC

Liquefaction, Australia Northwest Shelf

contractor for Cameron LNG, Adriatic

LNG Liquefaction, Sonatrach LNG

LNG, Gulf LNG, and also completed

Liquefaction at Skikda and Arzew, Arco

a number of projects for Chevron and

Tangguh LNG Liquefaction, and others.

ConocoPhillips, among others.

He also led several different studies

During his time at KBR, Mr. Ray worked

and analyses for companies, such as

for eight years with the world’s best team

Trinidad LNG Liquefaction, Angola LNG

for engineering, design, and construction

Liquefaction, and a number of other

of the Air Products and Chemicals,

very significant projects. As a Senior

Inc. (APCI) Propane Pre-Cooled LNG

Process Engineer for KBR, Mr. Ray

liquefaction process. APCI is the number

gained valuable EPC experience and

one liquefaction technology provider

led the process engineering through

globally and is the process selected by

design, commissioning, and startup

SCT&E LNG for its project on Monkey

for several multi-billion dollar LNG

Island. Mr. Ray is currently serving as

facilities, including Nigeria Bonny

the Vice President of Engineering for

Island LNG Trains 2 & 4, Australia

SCT&E LNG and is primarily responsible

Northwest Shelf LNG Train 4, and

for the engineering, procurement,

two trains for Malaysia LNG Tiga.

planning, development, and construction

Because of his work at KBR, Mr. Ray

efforts for the company’s natural gas

was hired by Aker Kvaerner where

liquefaction and LNG export project.

he was effective as first the Business

In addition to his involvement with

Manager, and later the Project Manager,

the engineering and construction

for the EPC of several multi-billion dollar

industry, Mr. Ray is committed to

LNG facilities, such as Cameron LNG,

serving his community. He volunteers

Gulf LNG, and Adriatic LNG. Mr. Ray’s

his time weekly leading a mentoring

valuable contributions were recognized

group for men and rebuilds homes for

at Aker Kvaerner and he was promoted

disadvantaged and elderly people in

to the Director of Business Development.

the Houston, Texas, area. Mr. Ray is

In that leadership role, Mr. Ray’s team

a dedicated family man to his wife of

won the Pre-FEED and FEED contracts

23 years and the proud father of five

that led to the successful EPC bid of

children, three of whom are currently

Dominion’s Cove Point LNG $4 billion

studying at Texas A&M University, and

liquefaction facility off the east coast

two of whom are in high school.

SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM years, Mr. Smith has focused his career in the EPC sector of the energy industry concentrating on large scale energy and petrochemical projects. While developing commercial strategies to pursue and win EPC projects, Mr. Smith gained valuable experience in logistics, proposals, contracts, subcontracts, procurement, and construction.

While serving in the United States Air

Eric Smith, Executive Director of Business Development Eric Smith is a motivated and effective energy executive with stellar accomplishments in the Engineering, Procurement, and Construction (EPC) and LNG industries. Growing up in an entrepreneurial family in a small town in Oklahoma, he spent his high school years working for the family furniture business his grandfather founded at the end of the Korean War. After graduating from high school, Mr. Smith joined the United States Air Force working as an intelligence analyst where he served proudly for nine years. Four years into his military service, he was recruited to join the National Security Agency (NSA) to manage multiple intelligence gathering teams supporting Operation Enduring Freedom (Afghanistan and Iraq). His contributions were recognized by the Director of the NSA and the Deputy Commander of the United States European Command. For the last eight

Force, Mr. Smith completed his Bachelor of Science Degree in Marketing and began studies toward a Master of Business Administration (MBA) from the University of Maryland. After honorably completing his military service, he finished his MBA and subsequently began working for the global engineering and construction company, Fluor. Due to his success at Fluor, Mr. Smith was later recruited by Mammoet USA for the commercial role of North American Business Development Manager where he developed and sold project logistics strategies that provided solutions for lifting, transporting, installing, and decommissioning large and heavy structures to EPC contractors and project owners. In this position, he leveraged his entrepreneurial upbringing to create business opportunities previously lacking for the company.

Recognized for his contributions at Mammoet USA, Mr. Smith was recruited in 2011 by Foster Wheeler, a well-respected international EPC

ERIC SMITH

ENERGY

firm in Houston, Texas, where he began

13,000 employees. He was promoted

working as a Project Subcontracts

to the role of Senior Account Executive

Manager. His strong work ethic and

in 2014, placing him in an elite group

high-level capabilities were quickly

of energy industry executives who

noticed by senior executives, earning

excel in developing business and

him a promotion and assignment in

commercial strategies to advance their

the business development department

respective company goals. In his last

where he was challenged by the CEO to

year at Foster Wheeler, Mr. Smith led

develop a business plan to penetrate the

a team that supported an early stage

midstream markets. Within 12 months,

LNG developer successfully raise over

Mr. Smith identified and negotiated

$100 million for their LNG project.

multiple master service agreements,

Mr. Smith is currently serving as

generated sole source business

the Executive Director of Business

opportunities, and created strong long-

Development for SCT&E LNG and is

term business relationships for Foster

primarily responsible for the commercial

Wheeler in the midstream market.

development of the company’s

Because of his immediate success

Monkey Island LNG project. Mr. Smith

at Foster Wheeler, Mr. Smith’s

is responsible for identifying and

responsibilities quickly grew to

negotiating LNG offtake sales contracts,

include work in the petrochemical,

raising capital, and developing the EPC

gas monetization, and LNG industries,

strategies for the company. He works

and he was challenged with the

directly with and is a key advisor to both

task of increasing the company’s

the CEO of SCT&E LNG and its Board of

commercial exposure to the North

Directors. His professional experience

American petrochemical and LNG

in the energy industry combined with

markets. Ultimately this business

his ability to quickly build relationships

line became the largest revenue

and develop trust and rapport with

generating division in the company.

colleagues has made him a successful

In 2013, Mr. Smith led an 11-month

member of the SCT&E LNG team and

proposal effort that resulted in Foster

a well-respected player in the LNG

Wheeler winning a $2.4 billion EPC

industry. Outside of his career, Eric is a

project in the U.S. Gulf Coast, the largest

loving husband of eight years and proud

project in the company’s 100+ years of

father of three children. He resides in

business. With this accomplishment, he

Houston, Texas, and spends his free

achieved recognition as the #1 global

time with his family and playing golf.

sales person in a company of over

NORTH AMERICAN POWER BUSINESS:

A powerful partner Managing energy costs can be the biggest headache for large businesses and the energy brokers they engage.

Fortunately, North American Power Business (NAPB) has the experience, technology, and responsive service to help

Written by John O’Hanlon Produced by Tom Venturo

A

s we noted in these pages a year ago, North American Power’s residential business, founded in 2009, has been a runaway success and continues to grow, having already served more than a million electricity and natural gas customers across twelve states.

Since Deryl Brown’s arrival as CEO in 2014, however, the company has stated its intention to also enter the Commercial and Industrial (C&I) market in order to further grow and diversify its business. This year, the company realized this intention by entering the Texas C&I market under its new C&I brand, ‘North American Power Business’, and is already making a big first impression.

In many respects, North American Power has taken the ingredients for success from its residential business and applied them to North American Power Business. While the management team for its residential business is stacked with individuals possessing decades upon decades of combined industry

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January 2017

experience, the same can also be said of North American Power Business’ leadership.

North American Power Business is led by chief executive officer Deryl Brown, chief information officer Jim Crysdale, chief sales officer Kris Hertel, chief operations officer Jason Bear and senior business development manager Taylor Brown. Together, this team boasts over 150 years committed to leading and innovating in the retail energy space. Moreover, this team was largely responsible for starting two other enormously successful C&I companies.

North American Power Business, headquartered in Bedford, Texas, for the most part operates independently of its North American Power retail business based in Norwalk, Connecticut.

Although NAPB has a different leadership structure and home base, the new C&I affiliate intends to mirror the rapid growth that the residential side of the company has enjoyed. The company’s

Deryl Brown, Chief Executive Officer Deryl Brown is responsible for North American Power Business’ overall strategy and composition. He is a seasoned energy business executive with a proven track record of value creation in the competitive retail energy industry. He has over 40 years of experience in the retail energy industry, which includes strategy development, engineering, operations, customer service, technology, marketing, and sales.

confidence to do so resides in NAPB’s leadership, which has been there and done it all before.

Energized Partnerships While North American Power’s residential business is entirely focused on the end user, North American Power Business has a slightly different strategy. With gas and electricity making up a major proportion of overheads across

the board from manufacturing to IT and data heavy businesses, and the need to comply with complex regulations across different states and jurisdictions, big business invariably turns to consultants, aggregators and energy brokers to obtain the best advice and the best deals available.

In fact, more than 60 percent of energy transactions in the United States are done through

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63

a broker or consultant. This is because brokers and consultants can not only find a great price for a business’ energy supply, but many also advise on energy efficiency tactics such as energy management systems, equipment and lighting retrofitting as well as renewable energy sourcing.

Several brokers and consultants also specialize in selling ancillary products and services that assist customers in achieving LEED compliance for their facilities.

North American Power Business’ leadership therefore understands the importance of focusing on these key players in the market,

“The portal is our conduit to get the data from the broker to price the customer” 64

January 2017

supplying them with the power their clients need, in the way they need it and with outstanding transparency and flexibility when it comes to pricing, billing and commissions. NAPB approaches the market almost exclusively through these third-party brokers.

“The brokers we work with, we call them sales partners, are vital to our company’s success,” chief sales officer Kris Hertel said. “As a result, our value proposition to potential sales partners needs to be just as strong as our value proposition to the end user.”

Powered by Best-in-Class Technology So, what is that powerful value proposition that is already attracting top brokers in the industry? According to Hertel, in addition to its highly experienced management team that knows what brokers want and need, it’s North American Power Business’ technology that is the competitive advantage in the marketplace.

USA AND CANADA

Kris Hertel, Chief Sales Officer Kris Hertel is responsible for leading North American Power Business’ customer acquisition channels throughout the US. He brings 25 years of sales and marketing experience to NAPB, including 17 years of retail energy industry experience. Most recently, Kris served as Chief Marketing & Sales Officer for Pro Power Providers, a Circular Energy company. He also served as Vice President of North American Commercial markets for Hudson Energy, a Just Energy company.

Jason Bear, Chief Operations Officer Jason Bear is responsible for leading the middle office and back office functions of North American Power Business in all markets. He brings more than 15 years of customer operations and IT experience to NAPB, including 12 years of retail energy industry experience. Most recently, Jason served as Vice President of Operations for Pro Power Providers, a Circular Energy company. He also served as Senior Director of US Operations for Hudson Energy, a Just Energy company.

USA AND CANADA

“We see our partnership going well beyond the usual scope of that overused word” Specifically, brokers have come to expect supply partners to make sales, commission and account management as easy and transparent as possible—that’s why Hertel said that developing the technology to meet and exceed that expectation was number one on the to-do list when NAPB was founded. “We’ve developed top-of-the-line broker sales and commission portals, powered by our new end-to-end system we’ve named ‘Joules’,” Hertel said. “Jim Crysdale led the development of the industry’s first sales portal and has more than 26 years of experience in this space, so having him on our team as a primary architect of all three of these proprietary pieces of technology has put NAPB in a league of its own when it comes to its technological performance and capabilities.”

Elaborating on the company’s broker portals, Hertel said, “The

portal is our conduit to get the data from the broker to price the customer. It will generate pricing, proposals and executable documents – we are very proud of it, and our brokers love it!” It is a completely integrated platform that takes the broker right through customer pricing, to enrollment, to billing and to commissions, says Hertel. “It gives us the ability to move from market to market very quickly, and it is entirely scalable.”

The portal ultimately gives the broker control in whatever way they choose to use it. Being able to upload customer data and generate pricing and documentation means that deals can be automated, with no manual intervention on the part of NAPB. A commissions platform is integrated with the sales platform, giving a broker the ability to see its past commission statements alongside its projected income from NAPB. “It allows

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67

Billing, Reporting & IT Solutions for RETAIL ENERGY A Znalytics’ partnership provides much more than just EDI and Billing.

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our brokers to self-serve. Having this accounting-like function through the commissions portal is rare in the industry, and it underlines our commitment to the broker channel,” Hertel said.

“It is a really neat system: they can opt for full automation of customer accounts or any level of intervention they choose.”

The strength of the technology platform gives NAPB scalability and consistency as it moves from market to market. That’s

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January 2017

a long-term advantage that the broker will appreciate more and more as the end customer becomes accustomed to dependable pricing and transparency – it’s a frequent occurrence, he says, to have issues with billing timeliness and accuracy, or the common practice of outsourcing billing to a third party.

As it develops, NAPB wants to expand the technology it has introduced to the market to become increasingly integrated with its

USA AND CANADA

Jim Crysdale, Chief Information Officer Jim Crysdale is responsible for developing and maintaining North American Power Business’ IT systems and processes.

He has over 26 years of executive management and technology consulting experience, focused specifically on utilities and competitive energy. He has delivered solutions in the areas of IT strategy, large-scale system implementation, organizational strategy, process management, product management, enterprise architecture, program management, office development, operational efficiency, customer relationship management, custom application development, and sales force automation.

Taylor Brown, Senior Business Development Manager Taylor Brown is responsible for managing the growth of NAPB’s commercial indirect sales channel in multiple markets. He brings six years of energy sales experience to NAPB. Most recently, Taylor was a Senior Business Development Manager for Hudson Energy in Houston, Texas. Taylor earned a BA degree from Texas A&M University in College Station, Texas.

USA AND CANADA

large brokers. “The more integrated we can become with their systems, the more advantageous that partnership becomes,” Hertel says. “That may mean integrating with their CRM packages to make that customer experience better.

We plan to provide more reporting and integration with their finance packages like Quicken and MS Dynamics. We see our partnership going well beyond the usual scope of that overused word, to a point where we become indispensable to them and they in turn help us grow quicker as we enter new markets.”

Hertel was quick to point out that beyond its own leadership, the company’s development partners have been integral to its technological success. Specifically, Znalytics has been a key partner in the building of the company’s end-to-end system, Joules. “Jim Crysdale and Znalytics made

for an ideal pairing when it came to creating Joules,” Hertel said.

“Because of their combined efforts, we believe that Joules truly stands alone in the industry.”

For the size of the company, such a level of investment and the sophistication of the technology is almost unprecedented in the industry, he adds. Technology never reaches a finished state, by definition, but the platform has been refined to a level that allows NAPB to run its current business effectively, and it can easily be given added functionality as the company expands.

Just Getting Started From a soft launch with ten or so brokers in February 2016, North American Power Business is already well into its full launch in the Texas market. NAPB is now approaching the number of

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71

brokers and aggregators it needs to call itself an established player in Texas, and is now looking to expand into other states. In the US, many brokers are licensed in multiple states, and indeed a number of the customers it works with in Texas are not headquartered there. The relations NAPB has with these brokers is an excellent springboard for it to move into New Jersey, Pennsylvania and Ohio in the very near future.

These states are all within what

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January 2017

is called the PJM Interconnection that co-ordinates the movement of electricity within Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. “50 percent of the brokers we work with in Texas also do business in PJM,” explains Hertel. “Additionally the relationships we already have with brokers headquartered in the northeast also operate in multiple

USA AND CANADA

states. So, if a broker is licensed to do business in Ohio it is most likely licensed in Pennsylvania and New Jersey: even in New York and across New England.�

For now, a consolidation of Texas and a phased expansion into PJM will take a lot of hard work.

Kris Hertel is keen to expand into as many states as possible as quickly as possible. Much of this will be achieved by following the existing broker network, though, and many of these brokers have an

international footprint. Suffice it to say that it was CEO Deryl Brown who established Hudson Energy as a leading independent provider of electricity and gas to businesses across the UK. It would be in no way surprising to see NAPB quickly achieving its expansion goals in the USA, then perhaps even looking further afield.

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THE POWER to process Written by John O’Hanlon Produced by Josef Smith

AUSTRALIA

Fujitsu entered the Australian market in 1973 and today provides key ICT infrastructure to both public and private sectors. It is also one of Australia’s leading data centre providers, leading the technology market in sustainable practices

E

veryone is aware of the impact technology has on the way we live, and most people know that as the Internet of Things (IoT) gathers momentum a further transformation will happen. Smart cars, smart appliances, smart buildings, and smart clothing are just some of the

things that promise to enhance our lives, and at the same time the soft aspects of life like medical, educational, financial, and legal services are being transformed by the application of big data. Fewer people understand that the ‘the cloud’ is in fact a world embracing

w w w. f u j i t s u . c o m / a u

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FUJITSU

network of physical servers, most of Australia’s public sector, financial of them located in data centres. services, retail (it’s Fujitsu that keeps Fewer still have any idea what data the point of sale services going for centres are or even where they are: some of Australia’s major retailers) certainly not the amount of power and the national airline Qantas. they use. Ten years ago, they used an With that hat on he supports these imperceptible proportion of electricity clients’ environmental performance consumption: today they account targets. “When doing consulting for some three percent work we benchmark to see of global electricity where they stand, and supply and two look for the quick I find that even percent of total wins first,” he says. companies that greenhouse gas “Sometimes profess to be green, emissions. Ten that’s just a policy and committed to 100 years from now change or putting percent renewable that is expected in a power meter. power are missing out to reach ten Or checking on many opportunities percent. the actual power to do better consumption Advice and of equipment consultation like laptops against Lee Stewart has been the manufacturer’s leading Fujitsu’s strategy to make claim before purchasing. sustainability a part of its DNA “I find that even companies that for the last five years. As Head of profess to be green, and committed Sustainability for the Oceania region, to 100 percent renewable power are he is part of a large sustainability team missing out on many opportunities within the global company. He does a to do better.” When you consider lot of consultancy work with Fujitsu’s that for a bank, 70 percent of its clients, which include large swathes energy costs are associated with

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Fujitsu has their entire Data Centre portfolio rated proving that they operate at 27% more efficient than the industry average

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Small carbon footprint.

Sustainability is in our DNA How do you achieve sustainability targets while increasing your revenue with new types of services offers such as colocation, hosting, and cloud services? Choose our innovative data centre infrastructure and energy efficiency solutions. Schneider ElectricTM experts can help make it happen.

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Š2016 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. 998-1247042_GMA-US_A

Big plans.

Schneider Electric and Fujitsu: Delivering energy-efficient Data Centres For over 15 years, Schneider Electric has been a data centre infrastructure technology provider for Fujitsu across Australia. By applying simplification and innovation at every level, Schneider Electric has future-proofed and redefined data centres, and addressed the balance of speed without compromising availability or operational efficiency.

The data centre solution integrates the latest in IT, uninterruptible power supply (UPS), computer racks, PDUs, plus low voltage and medium voltage electrical technology to achieve reliable and sustainable facilities. Fujitsu clients can expect to see significant improvements in energy efficiency through enhanced data centre design and management technology.

Data Centre Innovation at every level Data centres are the centre of everyone’s digital life. Digitisation, and the growth of IoT are going to place huge demands on the world’s networks and data centre infrastructure. Growth in the cloud and at the edge is creating a distributed architecture that will require a new way to manage holistically.

We need to ensure data centres physical infrastructure can adapt quickly to support whatever the future brings, without compromising availability or operational efficiency.

Schneider Electric’s commitment to simplifying data centres in the cloud and at the edge – using our lifecycle approach, digital tools, connected offers and digital services – will facilitate addressing the challenges in the new digital world.

“We build energy management and automation technologies that ensure Life Is On everywhere, for everyone and at every moment. We engineer solutions to make energy safe, reliable, efficient, sustainable and connected. We invest heavily in innovation, connecting our products and systems through the Internet of Things to our portfolio of software, making energy more distributed and connected, “ said Joe Craparotta, Vice President for IT Business and Strategic Segments, Schneider Electric.

About Schneider Electric Schneider Electric is the global specialist in energy management and automation. With revenues of ~€27 billion in FY2015, our 160,000+ employees serve customers in over 100 countries, helping them to manage their energy and process in ways that are safe, reliable, efficient and sustainable. From the simplest of switches to complex operational systems, our technology, software and services improve the way our customers manage and automate their operations. Our connected technologies reshape industries, transform cities and enrich lives. At Schneider Electric, we call this Life Is On.

www.schneider-electric.com.au

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IT, the amount of value that Fujitsu can add becomes apparent. His conversations with clients these days have moved up to board level as the reputational and financial gains to be made are made clear.

But like charity, sustainability begins at home. Fujitsu has more than 100 data centres round the world. Six of these are in Australia, and the company has been among the first to grasp the energy nettle.

Fujitsu’s 17,500 square metres of data centre space accounts for 97 percent of the company’s greenhouse gas emissions. The data centres accommodate Fujitsu’s own servers and cloud infrastructure as well as a large amount of space dedicated to colocation services.

Each of the data centres uses as much power as a small sized town.

Sustainability - a global imperative Most of the power available in Australia is generated from coal: renewable alternatives are making inroads but the electricity they generate is still more costly. Basically, most of Australian

power is ‘dirty power’. Stewart tells how even his thinking, driven by a passion for sustainable development as it already was, was given a jolt at the Asia-Pacific Energy Leaders’ Summit New Zealand earlier this year. “The former Prime Minister of Kiribati Anote Tong spoke about how he has already bought land in Fiji to relocate his people. It was his speech to COP21 in Paris that swayed the adoption of a 1.5-degree target for global warming when he explained that even that would not be enough to save his entire country, which is only just above sea level, from being swamped.

Inspired by Anote Tong’s words he wants to drive forward an initiative that has been dear to his heart from day one. “When I took this role over five years ago our data centre managers were doing very good work but what I found frustrating was that the power use effectiveness (PUE) metric that we use in our industry was not being applied transparently.”

PUE measures the ratio between the total power used by the data centre and the energy delivered to run

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Fujitsu Australia Head Office. The recent move to a new office with activity based working has saved over 60% in office energy costs

computing power vs. the overheads such as cooling, backup power and lighting. A ratio of 1:1 would mean that no energy at all was used for cooling or lighting. “We set our interim target at 1.6, but I found it frustrating that competitors were making unverifiable claims of 1.2. So, I was very excited when the government announced it was going to introduce independently validated rating of PUE.” Transparency for clients and regulators The federal government brought in the National Australian Built Environment Rating System (NABERS) to assess

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data centres and give them a star rating, with one star for unsatisfactory, and six for market leading performance. The system was already familiar in the construction industry, where it has been used for a decade to rate the environmental performance of a building, rather like LEED in the USA. Before this happened, it was too easy for data centre owners and operators to make claims they couldn’t achieve. “Sustainability is all about transparency and honesty,” says Stewart. “Now you need twelve months’ of energy bills before you can be audited by a trained assessor who has been through a course run and

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accredited by the government. They audit the meters and equipment, and average out your energy load over the year minus your IT load, which gives you a reliable PUE rating.”

In June 2016, Fujitsu achieved an Australian first, gaining NABERS Energy ratings across its six data centres. It publishes all its ratings on the NABERS website, so all its clients can be assured it’s achieved an average rating of 3.75 stars. Its target is to take the portfolio up to 4.5 by 2020.

Suddenly the language changed, says Stewart “The customers get it: it gives them a credible assurance of our energy

efficiency efforts and also provides us with a common language that works globally. And the internal stakeholders get it – I hear our data centre people discussing what they need to do to get a half star better.

We were the first to adopt it, the first to submit a portfolio, and we are now driving the market to make sure our customers ask for a NABERS rating if they are looking for hosted space.

“More than that, we are working closely with state bodies to ensure it is adopted and taken up as a standard ‘business as usual’ practice.” A

Lee Stewart at the New Fujitsu Australia Head Office at Macquarie Park in Sydney

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good example of this is the recent announcement by the government of New South Wales that by 2017 it will no longer use any data centre space with less than a 4.5-star rating.

It has been a rewarding journey.

Lee Stewart likes to differentiate Fujitsu from other data centre operators by the customers, whose interests he puts first. “Our industry often gets bogged down in the technical detail and tends to lose sight of the big picture, the overall transparency and assurance for our customers, which is a big driver.”

He has been working on a major new report, the Australian SMARTer2030 Report, jointly produced by Fujitsu and Telstra, Australia’s largest telecoms company.

This concludes among many other things that as ICT becomes less expensive and more accessible, billions more people around the world will become connected by 2030 improving their income potential and wellbeing, and that even in Australia there is significant opportunity for ICT to deliver substantial social benefits, equalising access to services

and allowing full participation in society, regardless of location.

The report speaks of the broad effects of ICT on the human race, but it should never be forgotten that every transaction, every communication, every search and every automated response is touched by many data centres. It’s in everyone’s interests to achieve monumental levels of upscaling in a sustainable manner.

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SMART FILTER TECHNOLOGY

MANN+HUMMEL has recently opened its IoT lab in Singapore, a hub for digital innovation that will boost technological expertise and cement the company’s position as global leader in filtration

Written by Tom Wadlow Produced by Josef Smith

MANN+HUMMEL

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in the future, smarter.

The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, and technical plastic parts, as well as filter elements for vehicle servicing and repair. For mechanical In the filtration industry, MANNengineering, process engineering HUMMEL is leading the way and other industrial applications, in digitisation, innovation and the company’s product range embracement encompasses industrial filters, of IoT. Already “In two years’ time I want all membrane the leading filter producer parts of the organisation to be filters for water and supplier on a digital roadmap or path” filtration and filter systems. in the world, – Nicolas Payen, MANN+HUMMEL In the last the company Group’s Director of IoT Lab years, due the manufactures growing concern associated with more than 700 million filter elements reductions in air quality, the group each year – elements with the is developing an extensive range potential to become smart. of air filters for various applications Its 20,000-strong workforce like cabin filters, air purifier filters, across more than 70 locations worldwide help to produce and and filters for HVAC system. With sell about €4 billion-worth of such solutions, buildings and filter products each year, helping transportation systems are able automotive and mechanical to provide the right air quality to engineering industries become their occupants and so at the cleaner, more efficient and, lowest energy cost. This is also ndustry 4.0 and the Internet of Things (IoT) is everywhere. The digital economy is impacting upon almost every individual and business’s lives, from smartphonecontrolled central heating to M2M communication on production lines.

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MANN+HUMMEL

an opportunity for the group to help build a healthier society.

Determined to maintain its position as worldwide filtration leader, MANN+HUMMEL is moving fast.

With the acquisition of the Affinia Group earlier this year around 4,500 employees, some 10 locations and approximately €900 million in sales had joined MANN+HUMMEL. But it is the addition of expertise, in the form of a dedicated IoT lab in Singapore, which will continue to set the company apart in years to come.

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A unique challenge

Nicolas Payen is MANN+HUMMEL Group’s Director of IoT Lab. Having spent several years at Schneider Electric working on innovation projects, Payen moved to Singapore last year and has overseen the development of MANN+HUMMEL’s Centre of Excellence for IoT. A global pioneer in smart cities, Singapore has a thriving smart technology hub and has been base of Asia operations for the company for more than four years.

“I have been here a year but there

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is certainly much more I could learn about the place,” Payen muses.

“I joined MANN+HUMMEL at the end of March as this presented a unique entrepreneurial challenge for me, something that had to be created completely from scratch.

“There are a lot of challenges but with that come a lot of potential rewards. This is a great opportunity for me to make a real difference and apply the knowledge I have picked up through my career.

The team is in place and the lights are on, but it is too early to

“We need to create a network of people from inside to company who understand how the lab can drive forward their own parts of the business” – Nicolas Payen, MANN+HUMMEL Group’s Director of IoT Lab

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F U LT O N H O G A N

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already entrenched across suggest the job is done and that the multinational, multifaceted the rewards are there just yet. business, it is Payen’s job to “The economy and industry of communicate the digital innovation today are embracing technology ethos that will be harnessed at a rapid pace, and we have to be by the Singapore lab, bringing ready to bring technology into our together all parts of the business industry where it makes sense to do to embark on an IoT journey. so. How do we use electronics and “One of the main challenges I software and blend it with our have been working on is current knowledge on communicating what filtration, knowledge which spreads right we are doing in the around the world? lab with the many That is the question business units in we are always MANN+HUMMEL,” asking ourselves.” he explains. “We need Number of employees The lab officially to create a network of at MANN+HUMMEL opened on July 11 in people from inside to the Fusionopolis Tower company who understand in One North, the heart of how the lab can drive forward Singapore’s burgeoning start-up their own parts of the business. community. It marks an era where We have a very strong support digital innovation very much sits base in the form of our top management in the company alongside MANN+HUMMEL’s foundational set of values by which it – our Group Vice President Technology,our CEO, and the operates, known as FILTER (Focus, chairman of the supervisory board Integrity, Leadership, Teamwork, are right behind us and helping the Excellence and Respect). project to create momentum. The With the FILTER values

20,000

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main priority for us is to understand the needs of our business units, which we treat almost as our own customers, and then to understand what their customers need.

However, we don’t lose sight of the fact that there is a balance to be struck in terms of executing our own IoT vision, while at the same time being pragmatic and designing what our customer wants.”

Next level

Payen already has 30 projects in the pipeline, with 10 being actively worked on by the lab team, currently made up of five to 10 locallyrecruited technology experts.

The lab’s work in digitisation will impact the business and filtration industry in three major ways: how filters are made; how filters are sold and how filters are used by customers and consumers. “IoT encompasses a very broad range of possibilities, and this means we must be flexible with the work done in the lab,” Payen adds. “This will of course depend on the customer,

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what their demands are and how we can enhance their value chain.�

One area of focus for the MANN+HUMMEL lab at the moment revolves around maintenance and filter replacement. Information and data farmed through IoT and displayed to customers through connected devices will be able to inform users when filters are likely to need replacing. Payen also revealed that the lab team is looking at smart solutions for the air filtration sector, where the company provides products for automotive and construction partners. In time the lab will become a showcasing facility for MANN+HUMMEL, demonstrating to existing and potential clients what the firm has to offer away from conventional filters and parts.

As the team expands, it will the base of expertise from which MANN+HUMMEL can draw upon. The company already has partnerships with universities in South East Asia, Germany and the USA, and will be interacting much more with disruptive start-ups and

Nicolas Payen Director of IoT Lab French national, Nicolas Payen has 15 years of experience in both engineering and marketing/commercial leadership roles. He started his career in the IT services industry as software engineer.

His IoT journey started in 2008 as the co-founder of a corporate start-up for Schneider-Electric to develop a Smart Homes / Smart Grid solution. In 2013, he moved to Hong-Kong to head the Smart Space Category for Asia Pacific. In March 2016, he joined MANN+HUMMEL to support its digital transformation and lead its IoT initiative. He has a deep interest in social and technology innovation.

He lived in France, Netherlands, Sweden, Hong-Kong, and Singapore.

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“The economy and industry of today is embracing technology at a rapid pace, and we have to be ready to bring technology into our industry where it makes sense to do so” – Nicolas Payen, MANN+HUMMEL Group’s Director of IoT Lab

IoT specialists in the near future.

With 30 projects already on the table, the temptation to press full steam ahead must be there, though Payen exercises sensible caution at this early stage.

“We have an agreed plan of direction with the Head of Technology for the coming months, and it is important to stay focused and understand that the mission of the lab will change over time.

Today, we do not have a dedicated portfolio of digital products – over time this will be developed and there will be a need for a team to manage this new portfolio. The lab may have a role to play in this.

“It is important to stay focused in the near future and not to grow too fast – we must get it right to maintain our leading position in the industry. In two years’ time I want all parts of the organisation to be on a digital roadmap or path.”

Driving value in the digital economy Written by Sarah Megginson Produced by Josef Smith

A cloud-based marketplace for modern business, SAP Ariba enables simple yet intelligent exchanges between millions of buyers and suppliers.

But it’s much more than sourcing and procurement software: as a platform that drives value as its core function, SAP Ariba aims to transform businesses for the digital economy

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very day, millions of companies use the SAP Ariba Network to manage their business relationships and allow their customers to shop, share and save.

As a cloud-based business network, SAP Ariba enables users to discover, connect and collaborate around more than $1 trillion in commerce every year and build, manage and deepen their B2B relationships. Or more accurately, as SAP’s Lorraine Longato explains, “We don’t sell software, we deliver business outcomes.”

As the Value Engineering Director

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– Procurement & Business Networks in ANZ at SAP Ariba, Lorraine is part of a team that delivers strategic advice to their major customers, with an overall goal of streamlining business analytics, improving procurement processes and engaging with the digital economy at an optimal level.

“We have a structured methodology that we follow, which is centred around value with the customer at the core,” Lorraine explains.

“The organisations we work with are all at different stages of their digital transformation. Some are

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small and nimble and can change quickly. Others are undergoing a huge transformation by working through a multiyear program of change; if you’re a big Fortune 500 company, then it’s important to plan for longevity.”

Lorraine, who began her career in engineering, takes her role as a trusted professional procurement practitioner very seriously, as she knows precisely what is possible with optimal systems and technologydriven strategies in place.

“We become strategic, trusted advisers, helping our clients by guiding, advising and collaborating with them to streamline their analytics and procurement process,” she says.

Take the example of Malaysiabased Alphamatic Systems Sdn BhD. As a largely manual, paperbased business, they realised their old-school procedures and systems were hampering their growth and moved to digitise their operations by joining the Ariba Network.

The company started by collaborating on purchase orders and invoices electronically with its customers, and soon set up an

online catalogue showcasing its products and services. As a result of its efforts, Alphamatic has seen revenue from its largest customer increase by 40 percent, while its payment cycles cut in half.

Closer to home, a SAP Ariba/ Deloitte collaboration was recently successful in combining both a leading cloud-based software solution with deep procure to pay industry knowledge and experience, resulting in two significant joint engagements with a large Australian health insurance provider and public sector transportation organisation.

Meanwhile in the utilities sector, SAP has worked with many providers such as Ausnet Services, AusGrid, and Synergy.

Ausnet Services operates an electricity and gas energy network in “a dynamic environment that is characterised by regulatory changes, technology advancements and shifting customer behaviours and values relating to their energy usage”, says Cor Van Der Scheer, Procurement Processes & Systems Manager.

“Ausnet worked closely with SAP

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Ariba as we implemented our new ERP platform with a view to achieve transactional efficiencies, while greatly enhancing the way we manage the energy network asset base,” Cor says.

“The most significant contributor to achieving that goal was our opportunity to leverage the Ariba Network integration with both our Plant Management (PS) and Project Management (PM) modules in SAP and our significant key suppliers.

The combination of work order to purchase order automation in SAP, generated from the work orders, transmitted to suppliers through the Ariba Network as well as receiving Service Entry Sheets from suppliers through the same medium. This automatically integrated into SAP natively and created both an efficient and effective end-to-end process management enhancement. This type of system integration use is amongst the very first instances in the world, enabling us to stay ahead of the game on a technology platform to harness benefits back into the business.”

She adds, “The innovation delivered through the cloud and improved

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integration into SAP ERP coupled with the desire to assist their customers realise value from their investment make SAP Ariba the leader in its field.”

Undoubtedly, superior technology equals greater efficiency and in the utilities sector in particular, it’s imperative to turn to an optimised and efficient digital platform, Lorraine says.

“The Australian Chamber of Commerce recently released a report about which sectors are growing, and utilities and professional services are the last two on the list. There is no forecast of growth. So by helping them to define value and simplify the way they do business, we can help them leverage what they have to improve their overall operations,” she explains.

The SAP Ariba team is passionate and proactive about transforming businesses to maximise returns in a digital economy, Lorraine adds, that they are currently “releasing an innovation every quarter to scale and grow in this environment”.

“Our goal is to understand how we can improve our clients’ processes and programs, to minimise their cost to transact and to do business more

efficiently. That way, they are able to deliver more to their bottom line, saving funds for the public sector that can be better deployed to front line services that make a real difference, or in private sector return savings that directly translate to P&L benefits and in turn shareholder value and/or dividends.

It’s a compelling position,” she says.

“When I think of how procurement has changed over time, it’s interesting – we have actually challenged most of the people in our team to stop using the word procurement, as we’re fundamentally involved in a company’s total financials. It’s commerce across the board, and our toolset with a collaboratively established sustainable business case offers a quick way to find and drive value.”

Leveraging Ariba’s technology is not just about driving efficiencies and improving productivity, however; it’s also about creating transparency and building organisational reputation. This is achieved through a commitment to sustainable procurement, finance and business practices. Every C-level executive and or shareholder has a vested interest in transparency,

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governance and value, delivering on all these key criteria with a simplified user experience ensures business integrity and continuity. In a digital world where the rate of change is constant, and fraud and cyber security risks prevail, it is imperative to have a business benefits plan, an implementation road map, change management process defined and a collaborative environment where these benefits can be maintained and sustained over time.

Interestingly, Lorraine was head of sustainability in one of her previous roles. By applying her end-to-end operational engineering with her sustainable procurement experience, Lorraine is able to get right to the heart of the matter, which centres on the fact that technology and sustainability essentially go hand-in-hand.

“We have a lot of sustainability initiatives, not just around our environment but also around people and programs. One is our One Billion Lives initiative, which involves combining SAP, our products, our people, our passion and our time to engage with NGOs, government agencies and our ecosystem to

deliver social outcomes in various areas, including health, education, and disaster and emergency management,” Lorraine says.

One major project commenced in March 2016, when the SAP India team pitched their One Billion Lives Cancer Research Project. Dr. Ramesh, a seasoned oncologist, highlighted the need for a solution to consolidate cancer patient data, in order to prescribe the best treatment and medication for each cancer patient in India.

“As a survivor of cancer, not once but twice, it’s important to me to be associated to an organisation that aligns with my personal values and beliefs. Of which finding a cure for cancer resonates,” she says.

The project is data collation, analytics and insights. To date, SAP has built a Proof of Concept and it’s now in testing phase – putting the project well on track to reach the initiative’s overall goal to change one billion lives, this is only one amongst many to really impact lives and make a real difference.

Taking the concept of sustainability one step further, Lorraine says it’s

SAP Ariba and EY: The powerful joint venture driving digital value EY and SAP Ariba have come together to advance our clients’ digital strategies. In collaboration, we have been experiencing regional and global success by coming together early in engagements, thus harnessing benefits and fostering transparency with customers.

EY’s unique offering is its business integration approach, which takes a functional view of capability, rather than just a systems view. A business integration approach considers the required business outcomes and improvements to enable a better way of doing things, now. In the future, this approach will provide a platform for organisations to adopt continued automation and digitisation as it evolves.

EY and SAP Ariba have commenced work with a global consumer products company to provide its digital support journey. As a direct result, the company saw considerable improvements across productivity of the source-to-settle cycle, and it made their journey “Run Simple”.

It is not just about introducing a more streamlined way of buying things. It’s also about planning for future automation and providing a new way to collaborate with suppliers, all powered by the SAP cloud.

The power of having the business advisor and software solution provider working together can help our clients to get real value and results from their investment.

Catherine McCourt Partner, Advisory at EY

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Lorraine Longato Director of Value Engineering, Procurement LoB (for ANZ)

Lorraine Longato joined the SAP Procurement LoB team to lead the Value Engineering (VE) function for the ANZ region.

The VE team works closely with our major customers to streamline business analytics and improve procurement decision making, by delivering strategic advice, undertaking program planning and business case analysis.

Longato has nearly 20 years industry experience across a range of sectors covering FMCG, Manufacturing, Supply Chain, Heavy Freight & Logistics, ITC Management Platforms, Energy and Sustainability, with the past seven years focused on Strategic Procurement and Change Management Initiatives.

Longato has strong industry networks, having held roles representing industry and both the public and private sector. Lorraine is also an active contributor to procurement associations, including the Faculty Round Table, CIPSA, PASA and Procurious (Foundation Member).

Her broad operational experience, coupled with her strategic procurement background and qualifications, enables her to develop and facilitate cradle-to-grave programs, yielding savings and efficiencies throughout the ANZ region.

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crucial to also consider brand longevity.

“You have to think about every aspect of your procurement journey because these days, people are very savvy. People are on devices 24/7 and they know everything about your business. They demand transparency and if you don’t align with these growing winds of change, you are isolating yourself,” she says.

“The world is a fast-moving place and reputational risk is now first and foremost a priority as part of the procurement function. There are a number of supply chain risks, such as slave labour in the supply chain or fraudulent behaviour. The information is out there, we can source it for you in one place - Ariba. There are no excuses for not knowing what’s going on with your supply chain and there should be no knowledge debts, because technology has enabled us to understand every link in the chain.”

Embarking on a digital transformation journey requires you to know of these trends, Hyper-connectivity, Big Data, Cloud, Smart Devices and an awareness of Cyber Security risks enables us to map together with our

clients their capacity and capability gaps. This enables us to collaborate to define their road map towards benefits that will optimally leverage technology within their own organisation. It needn’t be as drastic or confronting as you may expect it to be, Lorraine adds.

“From our perspective, it’s about enhancing what you’ve got, rather than ripping everything out and replacing it. We start by asking: Why, then Where do you want to be, and where are you now? Our job is to work with you to get from here to there and that conversation is always based on value delivery,” she says.

“What we do as a value engineering function is to define value in what we call the four value levers: price reduction, compliance, process savings and cash position. We also have a value realisation team, they have a process around full life cycle analysis to deliver maximum value constantly. As we said previously, you don’t buy our software – you buy a business outcome.”

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