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LEVERAGING SAP SOLUTIONS FOR UTILITIES AND PUBLIC SECTOR

LEVERAGING SAP SOLUTIONS FOR UTILITIES AND PUBLIC SECTOR. Karen Larkin, City of Tacoma. June 2004. INTRODUCTION TO OUR CITY. Demographics 7 Full Services Utilities Electric, Water, Wastewater, Surface Water, Solid Waste, Cable TV/Internet, Railroad Basic City Services

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LEVERAGING SAP SOLUTIONS FOR UTILITIES AND PUBLIC SECTOR

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  1. LEVERAGING SAP SOLUTIONS FOR UTILITIES AND PUBLIC SECTOR Karen Larkin, City of Tacoma June 2004

  2. INTRODUCTION TO OUR CITY • Demographics • 7 Full Services Utilities • Electric, Water, Wastewater, Surface Water, Solid Waste, Cable TV/Internet, Railroad • Basic City Services • Police, Fire, Public Works, Library, Economic Development, Human services • Support Departments • Legal, Human Resources, Finance, General Services, CIS CITY OF TACOMA, WASHINGTON

  3. VALUE Cost Risk Functionality TIME 2002 THE VALUE OF EXISTING SYSTEMS WOULD DIMINISH OVER TIME

  4. Redesign business processes Standardize processes across organization Clean-up old data Modernizing the processes and systems Customer-centric Capability to grow Long term partnership WHAT IS REPLACING BUSINESS SYSTEMS REALLY ABOUT? “It’s more than just software!”

  5. Project Costs Costs O&M Costs Software Vendor Implementer Rating Project Approach Risks Contract Terms Stakeholder Acceptance Ongoing Management Functionality Benefits Main selection considerations Technical Architecture SELECTION PROCESS STEP 3:MAKING A DECISION

  6. PROJECT BENEFITS Fully integrated enterprise solution Long-term partnership for continuous improvement Flexibility and commitment of TUI Team Technical architecture flexible and scalable Customer responsiveness Ability to drill down and navigate within one system TUI-SAP WAS SELECTED FOR LOWER COST AND GREATER BENEFITS

  7. PROJECT SCOPE OVERVIEW • 102 Legacy Systems Replaced • CIS – Utility billing (5 utilities on one combined statement) • Financials (ARMS) • Human Resources (PeopleSoft) • Various Work Management (e.g. Hansen) • Budget (BRASS) • Permitting (Tidemark) • Tax & License (TALIS) • Fleet Services (Ultra Main) • Retirement • Manual Processes Replaced (e.g., Field) THE SCOPE ENCOMPASSED THE CITY’S DIVERSE NEEDS

  8. PM Plant Maint. FI-A/P Accts. Payable BW SEM MM Materials Mgmt. SM Service Mgmt. FI-G/L General Ledger FI-A/R Accts. Rec. SD Sales & Distribution CFM Corp. Fin. Mgmt. MM Purchasing CO Controlling AM Fixed Assets Mgmt. Work Clearance* MDSI* SAP R/3 Enterprise QM Quality Mgmt. IM Invest. Mgmt. PS Project Systems PS Project System GBC GIS* – CAD* PT Pers. Time Mgmt. Integrated Planning * IS-PS/GM Grants Mgmt. CATS IS-PS PY Payroll IS-U/FERC ESS IS-PS TE Trn. & Event Mgmt. PA Personnel Mgmt. WF Workflow IS-U/CCS SAP PROVIDED A COMPREHENSIVE SOLUTION Accounting Logistics Human Resources Industry Solutions

  9. 592,046 utility bills mailed (less than 1%) • 15,100 notifications created, 10,679 completed • 13,000 citizens have enrolled in tacomaservices.org (over $1M paid online) • Online citizen requests for non-bill related matters are regularly used and processed CCS SYSTEM PERFORMANCEAfter 60 days

  10. IMPACT OF IMPLEMENTATION • Challenge of Big Bang approach • City Employees stretched thin • Service impacts • Business rules vs. system rules • Go-live bumps • Boundaries on work changing • Authorizations and access to data EFFECTS OF GO LIVE ON THE ORGANIZATION

  11. Cost Benefits Implementation18 months Stability 18-36 months Long-term SAP IMPLEMENTATION COST/BENEFIT PROFILE

  12. BENEFITS TO THE CITY • One clean data base • Not printing/distributing most employee time cards • Not printing and distributing green bar reports • One call crew efficiencies • Purchasing automated routing, 3-way match and tracking • Open purchase order process replaced EARLY BENEFITS HAVE BEEN SEEN CITYWIDE (I)

  13. BENEFITS FROM CIS • Automated credit card verification • Security deposits on utility invoice, automated on final bill • Joint invoicing of service at the same address, and collective invoicing of services at different addresses • Reduce days between meter reading and billing • Collection agency weekly, not monthly • Third-party vendor no longer needed for Tax and License printing IMMEDIATE BENEFITS HAVE ALSO BEEN SEEN FROM CIS

  14. VALUE MEASURES • Online activities • Bill payment • Solid waste services • Downloading Tax & License forms • Citizen notifications • On-site activities • Service counters • Calls • Paystations AREA: INTERNET SELF SERVICE

  15. VALUE MEASURES • UTILITY CUSTOMER ONLINE BILL PAYMENT • 250,000 utility accounts in total • At 5%, there are 7,500 ISS users • At $4.00 each for 12 months • Savings of • $360,000 per year • 10% of 60 CSAs saves 6 FTEs or reduces 5.9 minute call time to 5.3 minutes SAMPLE VALUE: INTERNET SELF SERVICE

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