CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. Customer Service Re-Platform 2018 GRC Overview November 2, 2016 Presented by: Thomas Walker & Lorene Miller 1
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. Today’s Objective is to provide information about SCE’s CS Re - Platfo tform rm project, t, inclu cluding ding the drivers s and how custom tomers s will ll benefi fit 3 1 2 4 5 Project Costs & Customer What CS- Drivers Replatform is Scope Benefits Benefits 2
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits What is CS Re-Platform? Replacement of Mainframe and Related Systems Upgrade Customer Relationship and Billing Systems Core Customer Service Functions That Will Be Improved Customer Care Billing & Payments Credits & Collection Inquiries • Calculate and Produce Bills Collections • • Service Requests • Process Payments • Payment Arrangements • Rate Plans • Customer Notifications Extensions • • Programs / Services • Alerts • Account Management • Customer Data Analytics • 3
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits SCE delivers Customer Service in a complex and changing environment 57 Million 5.1 Million Billing statements, notices, Service Accounts reminders and other correspondence per year 217,000 16.8 Million Paper bill statements, Inbound contacts annually letters, and checks each business day CONTACT US 40% Growth 11.1 Million NEM applications per year Outbound call attempts since 2011 (IVR) annually 2.3 Million 2 Million Turn On and Turn Offs Customer energy usage & per year billing exceptions per year 212,000 1 Million Field orders/exceptions and Paper applications Meter tests/inspections processed per year per year While there is a growing shift to digital transactions, many customers continue to prefer a non-digital experience 4
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits Customer Needs Are Evolving Customers prefer personal, simple and automated solutions …. and are increasingly becoming more connected and digital Energy Management Zero Net Energy Standards Outage Notifications New Energy Solutions High Usage Surcharges Net Energy Metering Electric Vehicles Default Time of Use Rates Energy Storage Community Choice Aggregation Energy Efficiency Programs Baseline Credits Alerts and Notifications CSRP will enable • Simple and efficient service in an increasingly complex environment • Accurate information that allows customers to understand their usage/costs and participate in grid and energy management solutions • Integration of customer data with other systems Testimony Reference: SCE 2018 GRC, Exhibit SCE-04, Vol. 3, pages 3 5
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. Replacement and upgrades of critical Customer Service systems are needed to provide simple, low effort and cost-efficient services to our customers. The time is right to replace and upgrade CSS and related systems because: 1. SAP software maturity: SAP functionality now meets core SCE requirements and needs 2. AMI stabilization: the Edison SmartConnect (TM) program has successfully implemented and stabilized 3. Customer needs: Legacy systems cannot easily support new rates and energy management options, growing digital interactions, and increasingly complex grid In addition, mainframe extension beyond 2020 increases system failure risk. 6
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits T echnology Obsolescence and Risk System obsolescence hamper’s SCE’s ability to meet current and future business needs Obsolescence is impacting our business today and will only get worse Agin ing Limit mited ed Agilit ility y for High Opera eratin ing Costs ts Re-plat Re latfor form + + Tech chnolo logy Futu ture e Complex and highly High legacy • Costly (and in cases • • customized legacy architecture, support cost prohibitive) to architecture and license costs adapt to regulatory and customer needs 220+ applications Slow and costly to • • make system changes • Limited analytics and Unsupported or • proactive customer obsolete applications Future efficiencies • engagement require more modern • Increasing complexity capabilities and agile technology and failure risk due to platform on-going changes System failures and • Decreasing availability • resource-heavy manual of skills and expertise to workarounds support applications 7 Testimony Reference: Exhibit SCE-04, Vol. 3, pages 5-17, 50-56
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits The CS Re-Platform project will implement a new customer relationship and billing system 1. It will be used to provide critical customer service functions to our 5 million customers: » Customer bills » Account management » Customer Care » Credit and Collections » Accounts Receivable 2. It will provide a more integrated, modern, and flexible platform to allow SCE to adapt to the changing needs of our customers and business 3. CSRP is forecast to cost $209 million in capital from 2017 through 2020 » $55.5 million of O&M is also forecast to implement and stabilize the new system (from 2018-2020) 4. CSRP is focused on furthering the SCE customer service strategy of providing a simple, low- effort customer experience delivered cost-efficiently Testimony Reference: Exhibit SCE-04, Vol. 3, page 1 8
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits CSRP will provide a more integrated technology platform, reducing complex interrelationships and dependencies Futu ture e CS Re-Plat latfor form m Arch chit itect cture Over 60% reduction in the CS • applications $12.4 million reduced operating • costs per year in this rate case period Reduced failure risk • Improved performance • Improved flexibility • Testimony Reference: Exhibit SCE-04, Vol. 3, page 14 9
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits Project Scope CSRP will include three key SAP modules: 1. Customer Relationship Management and Billing 2. Energy Data Management 3. Business Intelligence (BI) Most SCE business areas will be Ten business processes with over 270 affected: sub-processes will be included: 1. Customer Contact Center 1. Account & Receivables Management 2. Revenue Services Organization 2. Billing & Meter Reading 3. Meter Services Organization 3. Data Conversion 4. Business Customer Division 4. Customer Interaction 5. Customer Programs and Services 5. Device and Field Organization 6. Finance 6. Transmission and Distribution 7. Market Transactions 7. Information Technology 8. Product & Program Management 8. Finance 9. Reporting 9. Regulatory 10. Exceptions 10 Testimony Reference: Exhibit SCE-04, Vol. 3, pages 18-20
CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION. What CS- Project Costs & Customer Drivers Replatform is Scope Benefits Benefits Costs and Benefit calculations assume the following project phases and primary work tasks: Plan Analyze Design Build Test Deploy Stabilize 2 months 4 months 5 months 8 months 6 months 6 months 6 months 2020 2017 2018 2019 • Understand / • Develop • Development • Integrated • New system • Address • Build detailed document As-Is process flows testing Go-Live system issues work plan for • Build areas of business for individual and defects the project solution • Performance • Retire legacy processes activities requiring testing system • Provide • Documenting • Define To-Be • Design to configuration operational project • Mock data • Continue new business support To-Be of the support assumptions conversion system training processes business packaged (including staff and risks processes software • User augmentation) • Define Business • Onboarding of acceptance Requirements • Build and test resources testing solution • Develop components • Begin Training solution on new functional • Planning of system designs testing of custom components Costs ($ millio 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 T otal ions ns) • Capital (76%) - $58.2 $71.1 $76.1 $3.3 $208.7 • O&M Average - - $18.5 $18.5 $18.5 $55.5* (24%) *The O&M Expenses have been normalized for ratemaking purposes and do not include O&M expenses for 2016-2017 11 Testimony Reference: Exhibit SCE-04, Vol. 3, pages 22-27
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