emerging cis market trends

©Copyright 2011 UtiliPoint© International, Inc., all rights reserved. For information regarding UtiliPoint©

International material, contact UtiliPoint Research at 505.244.7612 or e-mail: [email protected].

CIS Market TrendsCIS Market Trends

By Mark Burlingame

Senior Director

UtiliPoint InternationalMarch 2011



AgendaAgenda

• Introduction

• UtiliPoint’s Annual CIS Survey

• Current State of the Market

• Trends



UtiliPoint is a leader in providing analysis and consulting services

to the energy and utility industry.

Our 78‐‐‐‐year history and over 500 clients worldwide have led us

to currently operate as an energy and utility consulting and issues

analysis firm.

Our staff is comprised of leading utility and energy experts with

diverse backgrounds in utility generation, transmission &

distribution, retail markets, mergers and acquisitions, new

technologies, investment capital, benchmarking, outsourcing,

renewable energy, regulatory affairs, and international issues.



CanadaATCOHydro One

BC HydroEpcor

United States

HECONational GridTXU

PG&EPNM ResourcesProgress Energy

Puget Sound Energy

South AmericaAES

Union Fonesa SA

EuropeICAP EnergyElectrabel

Intl Power

Africa & Middle EastEskom HoldingsEDI Holdings

Asia Pacific

Kansai ElectricInterGen

Australia/NZMetraWestern Power

ENERGEX



AgendaAgenda

• Introduction



• Trends



Annual Analysis of North American Annual Analysis of North American

Utility Customer Service MarketUtility Customer Service Market

• 9th Annual Survey Conducted in Spring and Summer 2010

• 200+ Survey Respondents

• 26 Questions and 100 Data Points Created

• Electricity, Water, Natural Gas & Other Organizations

• Co-operative Utilities, Competitive Retailers, Investor-owned Utilities, Municipal Utilities, Canadian Crown Corporations, and others



RESPONDENTS BY

ORGANIZATION TYPE 2009 2008

Type of Organization Frequency Percent Frequency Percent

Co-Operative 39 19.2% 32 14.6%

Energy Retailer/Energy Service Provider 9 4.4% 5 2.3%

Investor Owned Utility 81 39.9% 58 26.5%

Municipal 58 28.6% 100 45.7%

Other 16 7.9% 24 11.0%

Total 203 100.0% 219 100.0%



AgendaAgenda

• Introduction



• Trends


International material, contact UtiliPoint Research at 505.244.7612 or e-mail: [email protected]. 14

Legacy/in-house

solution

32.5%

SAP

20.0%

Others

47.5%

CIS Provider Market Share in the IOU Segment



Flexibility

Nothing

User Friendliness

Reporting

Web Capable

Speed

Better Support

Price (Cheaper)

Networking Capability

IF RESPONDENTS COULD CHANGE ONE

FEATURE OF THEIR CIS

Flexibility

Nothing

User Friendliness

Reporting

Web Capable

Speed

Better Support

Price (Cheaper)

Networking Capability

IF RESPONDENTS COULD CHANGE ONE

FEATURE OF THEIR CIS



AgendaAgenda

• Introduction



• Trends


International material, contact UtiliPoint Research at 505.244.7612 or e-mail: [email protected]. 20

Challenge: Challenge:

Utilities are under pressure to increase reliability

and contain customer complaints regarding

outages, costs, construction, tree trimming

and lack of information.

Customer EngagementCustomer Engagement




21

Trend: Trend: Targeted email and text messaging change

the outbound logistics and channels for customer contact.



Trend: Trend: New customer access channels related to social

media and real-time communications

22




Demand Response and Energy Efficiency Demand Response and Energy Efficiency

InitiativesInitiatives

23

Challenge: Challenge: Utilities are increasing demand response and management

programs.

Demand response quantification through smart metering tied to CIS demographics and segmentation can serve to better determine the right mix of DR programs to reduce additional capacity needs.

Energy efficiency options such as what-if modeling, energy management ideas, and demand side management rebates and incentives are needed for customers to increase their efforts in reducing energy consumption.



Demand Response and Energy Efficiency Demand Response and Energy Efficiency

InitiativesInitiatives

24

Trend: Trend: Upgrade billing and customer relationship

management systemsProvide rebate and contract management

systemsWhere possible, exploit existing applications to

fully utilize smart grid, home automation networks and demand programs



Cost ContainmentCost Containment –U.S. utilities are slowly spending more on IT.U.S. utilities are slowly spending more on IT.

Challenge: Challenge: Continuous pressure to reduce costs and keep

rates low, especially due to high wholesale prices and rising fuel costs.

Conflicting demands for increased capacity generation and upgrading aging assets compared to customer service expectations often keep utilities from investing heavily in the retail area.

25



Cost ContainmentCost Containment

Trend: Trend:

Improved Modularity – remember the large percentage of utilities with legacy systems?

26




Trend: Trend:

Software as a Service (SaaS)

27

Subscription or "pay-as-you-go" model




Trend: Trend:

Hosted Solutions

Lease versus Buy

28



Business AnalyticsBusiness Analytics

Challenge:Challenge:Mounting quantities of data combined with

increasing demands of customers

29



Business AnalyticsBusiness Analytics

Trend: Trend: Utilities will use customer segmentation to help target populations for new

rates.

Advanced business intelligence for customer service representatives -Predicting customers' concerns and behaviors enables customer service representatives to more easily and quickly address customer concerns.

Rates and pricing analysis that are fine-tuned from smart metering data, along with more-granular customer segmentation for marketing are needed.

Demand response quantification (previously mentioned)

30



Data ManagementData Management

Challenges:Challenges:

Smart metering success depends on data management. Interval metering and associated tariffs will need many more billing determinants than CIS normally uses, and complex billing applications may not be sufficient or prudent to expand.

Trend:Trend:

Keeping up with smart metering may require a new CIS or upgraded CIS.

31





Need for standardized data and processes for more efficient management.

Trend:Trend:

Provide methods to help utilities achieve application portfolio consolidation/management and process improvement standardized across enterprise

32





Provide better visibility between delivery systems and customer systems.

Trend:Trend:

Provide application links that incorporate mobile workforce and help outage management for applications such as revenue assurance and second home or security services

33




34


Transparency and risk management are essential to keep shareholders and regulatory bodies at ease.

Trend:Trend:

Non-public personal information needs additional privacy safeguards, probably best done by installing current-version applications and increasing security over-all for data.



May 23 at CS Week, UtiliPoint will May 23 at CS Week, UtiliPoint will

publish:publish:

35

The SmartGridThe SmartGridPointPoint®®

Customer Service and Meter to Cash Customer Service and Meter to Cash

Vendor and Product Vendor and Product

SourcebookSourcebook



SmartGridPoint® - UtiliPoint International’s forum and user

community for organizations involved in the ongoing Smart

Grid modernization.

36



Contact Information

6000 Uptown Blvd. NESuite 314Albuquerque, NM 87110

Direct: 214.821.8099Cell: 214.684.6888

[email protected]

www.utilipoint.com

Mark BurlingameSenior Director, UtiliPoint Analytics

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