Customer Service Re-Platform 2018 GRC Overview November 2, 2016 - - PowerPoint PPT Presentation

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Customer Service Re-Platform 2018 GRC Overview November 2, 2016 - - PowerPoint PPT Presentation

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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

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CONFIDENTIAL – This document contains NONPUBLIC SCE INFORMATION.

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Customer Service Re-Platform

2018 GRC Overview November 2, 2016

Presented by: Thomas Walker & Lorene Miller

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What CS- Replatform is

Drivers Project Scope Costs & Benefits Customer Benefits

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

1 2 5 3 4

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Upgrade Customer Relationship and Billing Systems Replacement of Mainframe and Related Systems

Customer Care

  • Inquiries
  • Service Requests
  • Rate Plans
  • Programs / Services
  • Account Management
  • Customer Data Analytics

What is CS Re-Platform?

Billing & Payments

  • Calculate and Produce Bills
  • Process Payments
  • Customer Notifications
  • Alerts

Credits & Collection

  • Collections
  • Payment Arrangements
  • Extensions

Core Customer Service Functions That Will Be Improved

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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5.1 Million Service Accounts 57 Million Billing statements, notices, reminders and other correspondence per year 2 Million Customer energy usage & billing exceptions per year 217,000 Paper bill statements, letters, and checks each business day 16.8 Million Inbound contacts annually 40% Growth NEM applications per year since 2011 11.1 Million Outbound call attempts (IVR) annually

CONTACT US

2.3 Million Turn On and Turn Offs per year 1 Million Paper applications processed per year 212,000 Field orders/exceptions and Meter tests/inspections per year While there is a growing shift to digital transactions, many customers continue to prefer a non-digital experience

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

SCE delivers Customer Service in a complex and changing environment

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Customers prefer personal, simple and automated solutions …. and are increasingly becoming more connected and digital 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

Default Time of Use Rates Baseline Credits Outage Notifications Alerts and Notifications Net Energy Metering Energy Efficiency Programs Energy Management Community Choice Aggregation Energy Storage High Usage Surcharges New Energy Solutions Zero Net Energy Standards Electric Vehicles

Testimony Reference: SCE 2018 GRC, Exhibit SCE-04, Vol. 3, pages 3

Customer Needs Are Evolving

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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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.

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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

  • Complex and highly

customized legacy architecture

  • 220+ applications
  • Unsupported or
  • bsolete applications
  • Increasing complexity

and failure risk due to

  • n-going changes
  • Decreasing availability
  • f skills and expertise to

support applications

  • High legacy

architecture, support and license costs

  • Slow and costly to

make system changes

  • Future efficiencies

require more modern and agile technology platform

  • System failures and

resource-heavy manual workarounds

  • Costly (and in cases

cost prohibitive) to adapt to regulatory and customer needs

  • Limited analytics and

proactive customer engagement capabilities

Agin ing Tech chnolo logy High Opera eratin ing Costs ts Limit mited ed Agilit ility y for Futu ture e Re Re-plat latfor form

+ +

Testimony Reference: Exhibit SCE-04, Vol. 3, pages 5-17, 50-56

T echnology Obsolescence and Risk

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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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

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

The CS Re-Platform project will implement a new customer relationship and billing system

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  • 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

Futu ture e CS Re-Plat latfor form m Arch chit itect cture

CSRP will provide a more integrated technology platform, reducing complex interrelationships and dependencies

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

Testimony Reference: Exhibit SCE-04, Vol. 3, page 14

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Project Scope

CSRP will include three key SAP modules: 1. Customer Relationship Management and Billing 2. Energy Data Management 3. Business Intelligence (BI) Ten business processes with over 270 sub-processes will be included: 1. Account & Receivables Management 2. Billing & Meter Reading 3. Data Conversion 4. Customer Interaction 5. Device and Field 6. Finance 7. Market Transactions 8. Product & Program Management 9. Reporting

  • 10. Exceptions

Most SCE business areas will be affected: 1. Customer Contact Center 2. Revenue Services Organization 3. Meter Services Organization 4. Business Customer Division 5. Customer Programs and Services Organization 6. Transmission and Distribution 7. Information Technology 8. Finance 9. Regulatory

Testimony Reference: Exhibit SCE-04, Vol. 3, pages 18-20

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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Costs and Benefit calculations assume the following project phases and primary work tasks:

Plan

2 months

Analyze

4 months

Design

5 months

Build

8 months

Test

6 months

Deploy

6 months

Stabilize

6 months

  • Develop

process flows for individual activities

  • Design to

support To-Be business processes

  • Integrated

testing

  • Performance

testing

  • Mock data

conversion

  • User

acceptance testing

  • Begin Training
  • n new

system

  • Development
  • Build areas of

solution requiring configuration

  • f the

packaged software

  • Build and test

solution components

  • Planning of

testing of custom components

  • Understand /

document As-Is business processes

  • Define To-Be

business processes

  • Define Business

Requirements

  • Develop

solution functional designs

  • New system

Go-Live

  • Retire legacy

system

  • Continue new

system training

  • Address

system issues and defects

  • Provide
  • perational

support (including staff augmentation)

  • Build detailed

work plan for the project

  • Documenting

project assumptions and risks

  • Onboarding of

resources 2017 2018 2019 2020

Costs ($ millio

ions ns)

2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 T

  • tal
  • Capital (76%)
  • $58.2

$71.1 $76.1 $3.3 $208.7

  • O&M Average

(24%)

  • $18.5

$18.5 $18.5 $55.5*

*The O&M Expenses have been normalized for ratemaking purposes and do not include O&M expenses for 2016-2017 Testimony Reference: Exhibit SCE-04, Vol. 3, pages 22-27

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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CS Re-Platform T

  • tal Costs through 2034

Total Cost $438M Total $50M $350M $300M $250M $200M $150M $100M $450M $130M External Labor Incl. Expenses Internal Labor incl. MSP and expenses $48M CR&B AO/IO Support $49M Pre-Planning $14M HW/SW purchase and refresh cost $46M SCE P&B $11M Decommis- sion Costs $7M Facilities $0.3M Mainframe Mntce $1.4M $400M $98M HW/SW Prepaid and

  • ngoing

maintenance agreements Part of project implementation costs $33M Capacity Resources Post-implementation costs

Note: Amounts shown in Nominal $

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

Testimony Reference: Exhibit SCE-04, Vol. 3, pages 3

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Projected benefits total $805 million* through 2034

*$65 million of benefits reflected in SCE’s 2018 GRC

Total Benefit $805M Total $100M $700M $600M $500M $400M $300M $200M $800M $265M Mainframe Decommission Avoided Future Project Spend $157M Reduced MSP Cost $110M Sustain Legacy Avoided Cost $29M Reduced IT Support $14M HW/SW License Rationalization $22M Capital Improvement $3M Operational Efficiency $205M

RSO - $102M SSO - $5M CP&S - $19M BCD - $22M MSO - $47M CCC- $9M

CSOD

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

Nominal $

Testimony Reference: Exhibit SCE-04, Vol. 3, page 45

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Improved > Quality, reliability, and availability of usage, rate and billing information > Information to support customer questions, inquiries, and overall support > Integration and access to data to support customer analysis and service decisions > Ability to support customer grid and energy management needs > Ability to support new rates and programs and address increasing service complexity > Ability to support changing customer relationship with SCE > Customer experience that will be simpler and more efficient Decreased > System maintenance costs and overall cost to serve > System and incidents Avoided > Risk of customer service system failures > Risk of providing an insufficient customer experience in core utility transactions

Customers will experience improved service from SCE

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits

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Summary

1 Program 2 Drivers 3 Primary Outcomes

  • CS Re-platform GRC Request
  • 31 mo. project imp.
  • $209M Capital expenditures
  • $55M O&M expense
  • 2017 start date
  • 2020 implementation
  • Provide CS and IT with the

platform to improve service, simplify the customer experience and reduce

  • perating cost
  • Address obsolescence,

complexity and risk of the CS technology portfolio

  • Increased service business

capability maturity:

  • Process standardization,
  • ptimization, automation
  • Integrated customer data
  • Increased proactive

customer communications

  • 360 degree of customer
  • Customer analytics
  • IT portfolio simplification:
  • Risk mitigation
  • Reduced costs
  • 60% reduction in CS

applications

  • Simplified IT architecture

The CS Re-Platform will result in a new enterprise customer relationship and billing system that will perform critical service functions with impacts to Customer Service, T&D, Finance and Revenue Reporting, and HR.

What CS- Replatform is Drivers Project Scope Costs & Benefits Customer Benefits