Industry Innovations –

SAP for Utilities Standard Content

Holger Schweinfurth, SAP SE

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SAP S/4HANA Utilities: Where We Are Now

Innovate 35 years of innovation in Utilities

Standardize 4600+ customers in 123 countries
Scale 78% of the utilities companies in the Forbes Global 2000 are SAP customers
Trust Always providing flexible ways of innovation adoption

IS-U: additional Global launch and

R/2 R/3 SAP S/4HANA
extensions, e.g. EDM, introduction of
RIVA IS-U Utilities RISE with SAP.
IDE, Smart Metering

Early Mid/Late Mid 2000s End of 2015 Jan

90s 90s 2021

The 90s 21st century 2020+

Public | *as reported during the SAP Q1/2023 earnings 3

SAP enables you to optimize your Best Practice

SAP Utilities Core

Built-in Market Enhanced by

Intelligent Meter-to- Supported by Core
Communication Innovative
Cash Process Customer Service
Processes* Capabilities

SAP S/4HANA Utilities

RISE
WITH Cloud Operations by SAP
SAP

Services & Content

Transformation Services
& Process Content

All Market Roles ALL Regions ONE integrated Simplified Price

Cloud

Public *selected countries 4

SAP S/4HANA Utilities – Functional Building Blocks

SAP S/4HANA Utilities

Meter Administration Energy and Water Data Financials and Customer Service /
Billing and Invoicing Contract Accounting
and Operations Management Engagement

Smart Metering

Market Communication

Maintenance commitment for SAP S/4HANA until the end of 2040

(Source: https://news.sap.com/2020/02/sap-s4hana-maintenance-2040-clarity-choice-sap-business-suite-7/)
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SAP S/4HANA Utilities: what is different to SAP ERP?

User Experience Customer Interaction and Service

Management
FIORI Apps for Key User Roles
Customer Engagement

Energy Product Definition

Embedded Analytics
Utilities Product Integration Layer (UPIL) and Sales Contract
CDS Views for Utilities
Management

Artificial Intelligence/ Machine Commodity and Non-Commodity

Learning Billing
Scenarios for Metering and Billing Convergent Invoicing

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SAP S/4HANA Utilities: Artificial Intelligence / Machine Learning
Examples Intelligent Use Cases for the Utilities Industry

Validation of Processing of Matching of Prediction of Intelligent Collections

Implausible Meter Outsorted Billing Incoming Payments Missing Data in based on Customer
Reading Results Documents (Cash Application, Sales Orders Payment Behavior
(S/4HANA Utilities) (S/4HANA Utilities) Add-on for FI-CA) (SAP AI Business (FI-CA / Behavioral
Services) Insights)
Repetitive Tasks Repetitive Tasks Repetitive Tasks Faster Order Processing Collections Success
Manual Effort Cost
Meter-to-Cash

Chatbot directly Classification and

Answering Processing of
Customers Incoming Service
(SAP Conversational UI) Requests
(Service Ticket Intelligence)
Repetitive Tasks Customer Satisfaction
Cost Repetitive Tasks

Customer Service

Image-based Asset Health Prediction Dispatching and Defect Code Proposal Drone-based
Spare Part and Maintenance Planning Optimization for Maintenance Automated Asset
Ordering Optimization of Field Service Notifications Defect
(Image-based Buying) (SAP APM) Technicians (SAP PM) Identification
(SAP FSM) (SAP PM / Partner)
Manual Effort Labour Utilization Billable Hours Manual Effort Manual Effort
Unplanned Downtime Cost Asset Downtime Asset Breakdowns

Public Asset Management 7

SAP S/4HANA Utilities: Summary and Value
Customer Interaction and Service
User Experience Management • Use proven standard processes from CRM, reuse custom front office
processes
• Holistic view and monitoring of complete Meter2Bill mass • Support high volume and high complexity customer service scenarios
process in the back office
• Flexible and intuitive analysis of execution progress and • Standard 360º views on master and transactional data, configurable,
exceptions in the area of billing and invoicing extensible
• User friendly visualization for decision making • Lower TCO with a simplified landscape and harmonized data model
• Improve operational efficiency in back office • Integration to SAP Customer Experience self-service, marketing,
FIORI Apps for for Key User Roles Customer Engagement social, commerce and external applications

Embedded Analytics Energy Products Definition

• Fast visualization and analysis of data with pre-defined KPIs • Support external product management
for the execution of analytic requests in meter reading, billing • Reduce dependence on IT when introducing new energy
and invoicing products to market
• Real-time analytics based on operational data without any • Shorten time to market for new energy products by automating
latency time the billing master data setup in SAP S/4HANA Utilities
• Real-time insights into Meter2Bill process to identify process • Reuse and optimize your existing IS-U billing objects
gaps and improve operational efficiency
Utilities Product Integration Layer
CDS Views for Utilities (UPIL) and Sales Contract Mgmt.

Artificial Intelligence/ Machine Commodity and Non-Commodity

Learning Billing
• Monetize innovative business models by consolidating invoices
• Reduce manual work for utilities meter data and billing and revenues across several lines of business, systems, and the
specialists partner ecosystem
• Increase quality in exception resolution • Heavy-duty, high-performance invoicing engine safeguards
• Improve cash flow by increasing speed in resolving exceptions critical source of cash-flow
and hence bill creation • Consolidate a single customer financial view across external or
legacy billing solutions
Scenarios for Metering and Billing Convergent Invoicing
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Planned SAP Utilities Roadmap – Highlights 2024 and 2025
Asset Management Metering Bill-to-Cash Customer Experience Energy Transition Regulatory
and Sustainability Requirements

❖ Custom AI Algorithms ❖ Anomaly Detection ❖ Enhanced Analytics ❖ Personalization and ❖ Formulas in ❖ German Retailers

2024
❖ AI-enabled Visual ❖ Event and Alert ❖ Extensibility: Custom segmentation Measurement ❖ Legal changes for
Inspection Management Field Enablement accelerator for Concept all German
❖ Enhanced Estimations utilities Management market roles
❖ Next generation ❖ Control Box as a
agent experience Device

❖ Digital Twin Handover ❖ Formula Profiling ❖ ML and predictive ❖ Generative AI–powered ❖ DER* Lifecycle ❖ Enabling Intern.
❖ Digital Twin based ❖ Complex Validation models in Invoicing conversational agent Management Market
Visualization of Time and
Financial Information
Rules

2025
❖ Service Management ❖ Industry Cloud Partner
solutions
❖ Support for
virtual power
plants
Communication
❖ Legal changes
for all German
market roles

This presentation and SAP‘s strategy and possible f uture dev elopments are subject to change and may be changed by SAP at any time for any reason without notice. This document is prov ided
Public
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability , f itness for a particular purpose, or non-inf ringement * DER: Distributed Energy Resources 9
SAP S/4HANA Utilities – Overview of Delivered and Planned Innovations in 2024
onwards
Delivered with SAP S/4HANA 2023 FPS01* Planned for 2024 (cont.)
• Billing: • Analytics:
• Levera ging SAP Analytics Cloud for the utilities i ndustry Li nk
• Ena ble custom fields and logic for installation and premise master data Li nk
• Levera ging of SAP Datasphere for the utilities i ndustry - device, PoD, tra nsactional data Link
• Proces s the exact move-in time and move-out time of utilities contracts Link
• Analytics: • Sales Contract Management
• Adva nced product s earch, simulation, and comparison Link
• Levera ging of SAP Datasphere for the utilities i ndustry - premise, contract, i nstallation Li nk
• Sales Contract Management • Extended integration of sales orders with utilities commodity contracts Link
• Financials (FI-CA)
• Sa l es orders for utilities commodity contracts life cycl e management Link
*Shi pment Date: 28.02.2024 • Preventi on agreement in Germany (German: Abwendungsvereinbarung) Li nk
• Di s play of utilities invoices and budget billing plans i n a business partner financial overvi ew Li nk
Planned for 2024
• Metering: Planned for 2025
• New utilities basic devi ce category ca lled “control box” Li nk • Analytics
• Di rect navigation to data envi ronments from SAP Fiori a pps i n utilities meter reading and billing Li nk
• Us i ng SAP Datasphere i n the utilities i ndustry – utilities sales contracts Link
• Archi vi ng of technical master data that is specific to the utilities industry Li nk
• Na ti ve sales statistics and unbilled revenue reporting i n SAP Datasphere and SAP Analytics Cl oud Link
• Si mplified reversal of full devi ce replacement Li nk • Convergent Invoicing
• Cha nge of load profile values i n already bi lled periods; va lue replacement for profiles without va lue replacement
• End-to-end reconciliation from event to GL i n contract accounting a nd i nvoicing Link
groups Li nk
• Increase automation of i nvoicing processes by l everaging machine l earning and predictive models Li nk
• Billing:
• Reduce ti me a nd costs associated with simulation of invoice forecasts for subscription or usage
• Ena ble custom fields and logic for contract master data Li nk
a l terations Li nk
• Abi l ity to disable obsolete servi ce providers Link • Integrated reversal process for SAP Convergent Invoicing and SAP for Utilities Li nk
• Convergent Invoicing
• Service Management
• Credi ts a nd debits: s upport for gross and net amounts Link • Servi ce management for utilities – round-off Link
• SAP Fi ori app enhancements for convergent invoicing (private cloud edition) Li nk

Public • Integration of payment by l ink for utilities invoices Link 10

 SAP Customer Connection Projects for the Utilities Industry
• SAP was offering Customer Connection projects with focus on the utilities industry from 2011 to 2022
• Several hundred individuals actively participated as an improvement request owner or a voter
• 180+ improvement requests have been delivered
• Overview of the most recent years:

2018 2019 2020 2021 2022

201583 Choice of POD- 221479 Full Device 248099 Mass Rate Simulation 264698 EL37: select-options 280705 Customer Include
Structuretype in create_instln – Replacement Reversal Process (EASIM) – SNOPUD (14 votes) for installation, device and for table EASTS – E.ON (18
n/a (22 votes) (new transaction) – BS Energy contract – TIWAG (15 votes) votes) ​
245794 Tiered storage
202891 MALO/MELO in CRM -> (22 votes) solution for interval meter 264690 Import of profile 280844 Enhance simplified
Highlights Distinction by means of data in EDM – SAPN (16 votes) values through AMI web meter master data replication
223730 Cancellation Process
structure types like IS-U – n/a for forced move out – enviaM service – E.ON (11 votes) by connection information –
248488 Contract Monitoring –
(15 votes) (15 votes) American Waters (15 votes) ​
Creos (8 votes) 263152 Badi/User Exit to
200798 EDM: Profile selection 223611 CRM - Budget Billing – modify key date for month 281043 Automated
(SLP) in installation w/o Enbridge (15 votes) based billing calculation using table maintenance for TE449
modification restrict and check – key date – AGL (7 votes) and TE671 via Webservice –
n/a (13 votes) EVN (14 votes)

Total Improvement
Requests / Delivered
79/18 32/16 72/25 58/28 82/37

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SAP Continuous Influence Session SAP S/4HANA Utilities

• vote on already submitted improvement requests valuable for their • prioritizes improvement requests by customer votes
needs or submit their own • reviews all improvement requests that reaches the required
• collaborate directly with SAP development threshold of customer votes

• easily adopt non-disruptive incremental enhancements delivered via • communicates status of each improvement request to customers in
SAP Notes or support packages a transparent way

Public Access the SAP S/4HANA Utilities Continuous Influence session https://influence.sap.com/go/s4utilities SAP Community blog 12
SAP S/4HANA Utilities – Trial Offering

• Get hands-on experience on a live and free of SAP-licenses SAP S/4HANA Utilities system

• Dive into SAP S/4HANA Utilities through four selected role-based guided tours for metering, billing
and customer engagement
• Explore the key capabilities and learn how to optimize the processing of metering data in SAP S/4HANA Utilities

• Get first impression how billing processes are streamlined through role-based FIORI user interfaces

• Discover utilities industry-specific processes in the Interaction Center for the role of a customer service agent SAP.COM Landing Page

• Adapt system to your needs with full admin access to all areas, also suited for PoCs. Dedicated system per customer (no shared
system) running in customer hyperscaler account (hyperscaler hosting fees to be carried by customer).

• SAP.COM Landing page: Utilities | Industry Software | SAP

• Blog: Explore the New SAP S/4HANA Utilities Trial with Four Guided Tours | SAP Blogs

FIORI App Billing

Utilities Customers
Figures

SAP S/4HANA Customers (globally): 24.700 1.)

SAP S/4HANA customers in Utilities: 855 2.)

SAP S/4HANA Utilities customers: 200 3.)

SAP S/4HANA Utilities customers live: >80 (estimation)

RISE customers in Utilities: 160 4.)

Live customers in Germany 5.) :

▪ SAP S/4HANA customers in Utilities: 5
▪ SAP S/4HANA Utilities: 5

1.) as reported during the SAP Q1/2023 earnings

2.) SAP Global Sales Controlling / ERP Cloud

3.)
Historic Revenue Data Analyzer (SAP)
4.) Value Stories Target List (SAP)
Public
5.) Notes for Details 14
 Delivering Optimal Customer Experiences in a Dynamic Market with SAP
S/4HANA® Cloud for Energy Utilities, Private Edition

Before: Challenges and Opportunities “Thanks to the cloud model, we were able to predict and
• Creation of innovative and tailored products and services needed to meet consumer expectations adjust resources during specified periods of high demand,
• Lack of ownership due to outsourcing IT services to a third party greatly reducing the chief technology officer’s workload.
• Limited control over resolving incidents in a timely manner We now have a common business foundation that
allows us to easily implement new services and
Why SAP products.”
• SAP’s reputation as a trusted partner for utilities companies Os ca r Monrió de l a Herrán, CIO, CHC Energia
PUBLIC | 85099enUS (22/09) © 2022 SAP SE or an SAP affiliate company.

• SAP S/4HANA® Cloud for energy utilities, private edition, offering robust technology that provides a good fit for
the complex business requirements of an energy services provider
• Proven functionality using machine learning with different scenarios such as metering and billing
• Standardized solution deployed in the cloud, offering a low total cost of ownership 13 50%
Months from project inception Improvement in billing
After: Value-Driven Results to go-live capabilities with embedded
capabilities for flexible billing
• Established one source of truth for understanding financials and energy-related activities
models
• Initiated cash-flow management processes for energy-purchasing activities
• Automated processes for metering, billing, and invoicing designed to increase quality and optimize exception
resolution 25%
sap.com/terms-of-use

• Introduced an integrated meter-to-cash process, reducing the cost to serve while lowering the total cost of Faster time to market
ownership and investment
• Enabled flexible and intuitive analysis of execution progress and exceptions in the areas of metering, billing, and
invoicing

CHC Energia Industry Products and Services Employees Revenue Featured Solutions and Services
Madrid, Spain Utilities Supply of energy services 68 €225 million SAP S/4HANA Cloud for energy
https://chcenergia.es to consumers and small utilities, private edition
(Spanish) and medium-size
enterprises

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 Accelerating Agility, Insight, and Innovation with
RISE with SAP S/4HANA® Cloud

Before: Challenges and Opportunities “SAP solutions have sustained Alperia’s digital
• Lack of flexibility in responding to an energy market undergoing profound and rapid transformation transformation journey, enabling us to optimize
• Different legacy information systems as the result of several company M&A initiatives our operational efficiency and unlock new and innovative
• Siloed information making difficult to evaluate business performance and to enable cross -process synergies opportunities in line with our strategic ambitions.”
Luca Ceri ani, Chief Digital Tra nsformation Officer, Alperia SpA
PUBLIC | Studio SAP | 84181enUS (22/07) © 2022 SAP SE or an SAP affiliate company.

Why SAP
• Simplified and cost-efficient path to digital transformation using RISE with SAP S/4HANA ® Cloud
• SAP S/4HANA Cloud combined with the SAP® Utilities Core solution to integrate systems, automate processes,
and unify data in line with industry best practices
• Workflow simplicity and usability made possible with the SAP Fiori ® user experience
• SAP Billing and Revenue Innovation Management solution to manage sales and billing for its subsidiary e- 15% 40%
mobility company Neogy Lower TCO with subscription-based Higher system uptime
• Single source of truth, with access to financial data and insights in real time pricing for SAP S/4HANA Cloud

After: Value-Driven Results

• Improved operational efficiency and accuracy from standardizing processes and a common, shared working and
reporting process 30%
• Created modernized, future-ready IT with integrated data across many aspects of the business
sap.com/terms-of-use

Faster time to market and

• Reduced technology landscape complexity and realized cost savings pricing and revenue innovations
• Enabled data-driven decision-making and insights using enterprise-wide analytics

Alperia SpA Industry Products and Services Employees Revenue Featured Solutions
Bolzano, Italy Utilities Green energy production and 1,100 €1.5 billion SAP S/4HANA Cloud, SAP Utilities Core,
www.alperiagroup.eu utility services and SAP Billing and Revenue
Innovation Management
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 Minimizing Operational Costs While Improving Customer Service
Satisfaction Using SAP S/4HANA® in the Cloud
Before: Challenges and Opportunities
• Enhance operational efficiency and mitigate costs of maintaining and supporting multiple customer information “Thanks to SAP solutions, we have a consistent customer
systems and user experience and have simplified our technology
• Increase digital adoption among customers to lower call volumes landscape while reducing our support and maintenance
• Streamline and automate multiple different processes and rules, and support self-service opportunities costs.”
Rebecca Schriver, VP, TIS GDS & Power, Enbridge Gas Inc.
Why SAP and Deloitte
• Ability to scale and support an expanding customer base while enabling innovations such as AI technology and
analytics for inbound call prediction and routing using SAP S/4HANA ® Cloud
PUBLIC | 80805enUS (22/04) © 2022 SAP SE or an SAP affiliate company.

• Global, industry-leading practices for simplification using the enterprise edition of SAP S/4HANA Utilities for
customer engagement
• Implementation support and deep industry experience provided by Deloitte and SAP ActiveAttention offerings, 15% Reduced
using SAP Integrated Delivery Framework for clear responsibility and accountability Increase in customer base Annual operational costs by
adopting digital transactions CAD 15 million by moving
to a single customer
After: Value-Driven Results
information system
• Simplified and standardized customer care processes for mass market, creating more efficiency while enhancing
customer support
• Leveraged transactional chatbot, interactive voice response, and other technologies, increasing digital adoption
sap.com/terms-of-use

and enhancing the omnichannel experience for gas utility customers Featured Partner
• Minimized maintenance and support costs by consolidating multiple customer information systems into a single
tool
• Reduced customer call volume thanks to enhanced digital channels

Enbridge Gas Inc. Industry Products and Services Employees Revenue Featured Solutions and Services
Ontario, Canada Utilities Gas utilities and storage, oil 4,000 CAD 4.9 billion SAP S/4HANA Cloud, enterprise edition of
www.enbridgegas.com and gas pipelines, and (US$3.8 billion) SAP S/4HANA Utilities for customer
renewable energy engagement, SAP ActiveAttention, and SAP
Integrated Delivery Framework

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 SAP S/4HANA Utilities Value Proposition
Utilities can unlock tremendous value potential by adopting intelligent technologies. SAP can help utilities improve their performance on key value drivers along the four core transformations. The
model approximates the benefits for a utility company with revenue greater than €2 billion and with about 2,000 employees:

Customer engagement & Bill to Cash Metering and market process management

Increase revenue from new 1,5%–4% 1,3 million– Reduce metering cost (smart metering)* 5%–7% 1,4 million–
products/services* 3 million 2 million
Increase revenue from cross-sell or up- 7%–35% 1,3 million– Reduce days sales outstanding* 1%–1.5% 3,6 million–
sell* 6,5 million 5,6 million
Reduce sales cost* 3%–5% 1,5 million– Application Development and Integration* 3%–5% 1,4 million–
2,6 million 2,3 million

Service excellence Intelligent enterprise asset management

Increase service revenue* 10%–12% 0,8 million– Reduce asset maintenance cost* 1,5%–3% 1,1 million–
1 million 3,7 million
Reduce customer churn* 3%–8% 0,8 million– Reduce unplanned downtime or outages* 10%–12% 1 million–
1,8 million 1,4 million
Reduce service and support cost* 4%–10% 0,8 million– Reduce logistics cost* 2%–3% 2,6 million–
2,1 million 4 million

Benefits are based on early adopters of SAP or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our
recommendation is to work with you to determine the value proposition for your enterprise. The currency used in all numbers are €.
Source: *SAP benchmarking tool
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Thank you.
Holger Schweinfurth
IBU Utilities, SAP SE

Holger Schweinfurth | LinkedIn/

[email protected]