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AUSTIN ENERGY’S BILLING SYSTEM CAN’T LIGHT UP

AUSTIN ENERGY’S BILLING SYSTEM CAN’T LIGHT UP. INTRODUCTION. PROBLEM. SOLUTION.

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AUSTIN ENERGY’S BILLING SYSTEM CAN’T LIGHT UP

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  1. AUSTIN ENERGY’S BILLING SYSTEM CAN’T LIGHT UP

  2. INTRODUCTION

  3. PROBLEM

  4. SOLUTION

  5. Yes, the old billing system did not integrate with smart meters and other newer technologies. It also lacked newer customer assistance option like ability to choose the time of the month customer prefers to pay bill. • The new billing system (contracted with IBM) – also failure due to the following reason. • a) The system was supposed to go alive in early 2011, but it not fully • operational. • b) The software bugs have led to errors in thousands of bills. Over 65,000 • customer never received a bill and another 35,000 have received • inaccurate bills. E,g one business that owed Austin $3,000 was instead • charged $300,000. • c) Austin was able to identify affected accounts and work with customers • individually to correct the problems, the company was ill-prepared to • handle the outpouring of customer service department was in danger of • being overrun. • d) Continuous to give the costly impact to their business and customer. Q1. THE AUSTIN ENERGY PROJECT A FAILURE? EXPLAIN YOUR ANSWER

  6. Instability which caused by the poor and inefficiency system that continues to have serious and costly impacts to their business and customer. • Lack of application of related knowledge, skills tools and techniques. Eg. Not using internet facilities – lack options to customer to pay such as smart billing or e-payment system. • High rise of complaints received when they actually modernized the billing system. E.g software buds leads to errors, system is not user friendly. • Continuous mistake by IBM which caused disappointment to Austin and the customers. • Blaming game between Austin and IBM officers – unclear roles and responsibility. Q2. DESCRIBE THE BUSINESS IMPACT OF THE FALTERING AUSTIN ENERGY PROJECT

  7. IBM was responsible for the problems countered by the Austin are as follow: • a) Delay to complete the system. • b) The system not fully operational. • c) Persistent system errors prevented Austin from billing • apartment residents for water, balancing its books • and filing audit report. • d) Austin losing revenue due to unability the system to • bill for utility properly. • e) Lack quality of services. Q3. TO DEGREE WAS IBM RESPONSIBLE FOR THE PROBLEMS COUNTERED BY THE AUSTIN ENERGY BILLING PROJECT?

  8. Yes, Austin also at fault for the problem. • Austin should clearly stated what is the project management involved between Austin and IBM. • Project management to develop billing system must deal with 5 major variables such as scope, time, cost, quality and risk. • The role and responsibility of the both party should clearly define. • Austin also should monitor the progress of the project. Q3. WAS AUSTIN ENERGY BILLING AT FAULT FOR THE PROBLEM? EXPLAIN YOUR ANSWER.

  9. Q4. WHAT WERE THE SPECIFIC ORGANIZATIONAL OR TECHNICAL FACTORS AS WELL AS MANAGEMENT FACTORS INVOLVED IN THIS PROJECT FAILURE?

  10. Planning the implementation of the project/contract • Monitor the progress based on the milestone and achievement • Clearly stated the objective or output should deliver from the project • Risk analysis and how to mitigate the risk SOLUTION / LOOKING AHEAD

  11. Q5. DESCRIBE THE STEPS AUSTIN ENERGY AND IBM SHOULD HAVE TAKEN TO BETTER MANAGE THIS PROJECT

  12. 5 MAJOR VARIABLES IN PROJECT MANAGEMENT FOR IS

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