Appendix F - Solution Definition Details

Transcription

1 Appendix F - Solution Definition Details

2 BC hydro Appendix F Solution Definition Details Project: Customer Information System

3 BC hydro II CAR JUSTIFICA TION BUSINESS CASE Project Name SOFTWARE, VENDOR, AND SOLUTION INTEGRA TOR DESCRIPTION SAP is one of the world' s leading application software providers, employing approximately people in more than 50 countries. Founded in 1976, its products now support over 700 utilties worldwide. The SAP Utilties Solution now bils over 20 milion contracts globally with license commitments that wil grow this number to just under 130 milion. The SAP Utilities Solution, developed from its inception to be packaged software, brings BC Hydro advantages in terms of durabilty, continual investment and performance. The SAP Utilities Solution is: Configurable to provide the necessary business process flexibility Offered in upgradeable releases Supported by SAP with multiple layers of on-call resources Innovative and continuously improving because of SAP' s considerable emphasis on R&D In 1999 SAP invested more than C$ 1 Bilion in research and product development. Each utility using the SAP Utilities Solution has a voice in future developments through user group participation. BC Hydro wil benefit from the requests made by all Customer Care and Service (CCS) clients in addition to driving our specific enhancement preferences. SAP has made a strong commitment to the global utility industry and has actively provided industry specific solutions for utilities since the late 1980' s. The SAP vision for the Utilty Industry is to support the international utilty industry with best-in-class solutions designed to provide the competitive advantages required to succeed in today s challenging market environment. Utilties have to be nimble to respond to a rapidly changing market and require flexible solutions that support evolving business needs. SAP has met the challenges of a changing industry through the development of SAP' s Utilties Solution. Specifically the CCS solution has a strong track record with the references checked: GPU and New Brunswick Power. Both of these utilities are currently in the process of upgrading to a new softare release. For SAP CCS implementations, our references gave a very positive endorsement of SAP. More specifically, SAP was rated very highly in the following areas: Softare Configurability/Flexibility Software Scalability Software Functionality SAP Responsiveness/Problem Resolution For functionality and configurability we conducted very in-depth and intensive seven-day workshops/labs with a cross-sbu team representing all CIS functionality.

4 BC hydro II CAR JUSTIFICA TION BUSINESS CASE Project Name In terms of the client base that SAP serves, we found a close fit with the scale and composition ofbc Hydro (I.6M electric customers). We found that SAP met requirements of this size/scope better than other CIS respondents did. For example some ASPs or other vendors have less experience with this size and scope. More specifically the reference sites of GPU (2M+ customers) and Energy Australia (1. customers) matched the critical scale requirements ofbc Hydro. Additionally, SAP has the strongest user group of the CIS vendors who responded to our RFP. The user community meets once each year to prioritize the list of enhancements. The enhancements are requested by the industry and SAP then focuses their efforts around priorities developed e user community. At the time of response to the proposal, SAP indicated the following facts: 580 installations world-wide, serving over 700 Utilties 102 Utility installations in North America 150 Utilities companies using the current SAP Utilty Solution North American customers productive with the SAP Utilties Customer Care and Service solution include: o NB Power (New Brunswick) Canadian Niagara Power (Ontario) Sacramento Municipal Utility District (California) o GPU, Inc. (Pennsylvania) o OGE Energy Corp. (Oklahoma) Reliant Energy Inc. (Texas) Imperial Irrigation District (California) Metropolitan District Commission of Hartford (Connecticut) In terms of the combined Accenture (solution integrator) and SAP (vendor) team selected there are a number of factors about this allance that are important to BC Hydro. The combination of Accenture and SAP have been involved in 22 CCS projects since 1998 with 10 major implementations that are live in production There has been joint Accenture/SAP product development at SAP' s head offce in Walldorf Germany. Current areas of focus are CRM, Meter Data Management, and Deregulation. Accenture is a preferred implementation partner for R/3 and CCS solutions Accenture and SAP form local alliances ensuring strong delivery expertise Three proposals to provide solution integrator services of the SAP product were reviewed. Accenture was selected for the following reasons: Accenture provided an overall lower cost solution than the second place finalist (Omnilogic/PWC) Accenture provided the most recent implementation experience with the CCS solution including, the successful implementation of CCS in a very similar utility to BC Hydro (Energy Australia Crown Corporation, electric only implementation, 1.3 M customers)

5 BC hydro II CAR JUSTIFICA TION BUSINESS CASE Project Name Accenture provided a stronger and more experienced implementation team FUNCTIONALITY DESCRIPTION The SAP Utilities Solution provides mission-critical functionality to support customer facing and back offce activities. A later section in this business case more specifically outlines the scope of the first phase. A number of the following capabilties wil be mission critical to BC Hydro as we continue to develop our customer service capabilty. Customer Interaction and Care - provides a powerful and flexible workplace for the Customer Service Representative, incorporating a search engine, contact management, and integration to inbound/outbound CTI/IVR technology. Revenue Management - supports activities related to financial dealings with customers. This includes recording revenue and receivables, administering creditworthiness, managing security deposits, processing payments, dunning activities, and write-off of bad debts. Biling and Invoicing - provides key advantages in the area of biling and invoicing. It supports flexible business rule-based usage calculations, rates and pricing, as well as a variety of charge calculations. All types of utility services are supported (with some set-up and configuration). In addition, rate structures ranging from bundled through unbundled to multi-company, and nonenergy goods and services can be accommodated. Device Management - supports requirements related to the acquisition and life-cycle management of measuring related equipment. Device Management supports meter reading, meter installation and inspection/certifications of the meters. Service Order Management - covers scenarios to initiate, manage and complete customerfacing fieldwork. Workflow Routing - at sign on users are presented with a specific list of scenarios (comprised of processes and workflows configured to accomplish specific business events) based on their role(s) within the organization. Operational CRM - business processes include many of the traditional high-volume batch activities (e.g. meter reading upload and download, bil calculation, invoicing, payment lot processing, etc. Business-to-Consumer Internet Self-Service - the solution supports self-enrolment, changing personal data, viewing account and consumption information, move-, move-out, meter reading entry, invoice presentment, and electronic bill payment. Energy Data Management - acts as a repository for the utilty to store interval-based metering and load profiling data. Automated Communication Protocols for the Deregulated Market - provides an intercompany data exchange, which acts as a communication engine between service providers working in a deregulated environment.

6 BC hydro II CAR JUSTIFICA TION BUSINESS CASE Project Name FUNCTIONAL FIT DESCRIPTION The solution selected provides us with customer care functionality that is both deep and broad. The SAP Utilties Customer Care and Service System (CCS Release 4. 63) is a product that is proven in the industry, providing full functionality and built using up-to-date technology. Our Request for Proposal phase received twenty responses with a good mix of very strong proposals covering various scenarios: In-house product implementation, out-source/application service provider and partnership proposals. A short list of potential solutions was developed, followed by extensive reviews of products against our functional, technical, and vendor requirements. An extensive list of functional requirements was used in the evaluation of products. Vendor product features were verified against the functional checklist. The SAP product scored a total fit of94%; the highest fit percentage of reviewed products (see Appendix G for the final evaluation summary). For each of the major areas, the functional fit of the SAP product to BC Hydro requirements was as follows: Account Management 98% Biling 98% Credit & Collections 96% Customer Choice 92% Customer Management 98% Customer Service 86% Financials 90% Inventory (e.g. meters) 99% Portfolio Management 95% Rates Management 93% Service Address 92% Service Orders 93% System Mechanics 91% Usage Management 97% It was clear that the SAP product emerged as the winner in terms of match with our requirements. TECHNOLOGY DESCRIPTION The following principles guided the selection of technology: Provide a cost effective computing environment that meets known business and performance requirements, yet is scaleable to support growth in customers, products and services Ensure proven robustness and suitability of the platform chosen Comply with our corporate IT standards The technical platform that SAP is built on fits our GTA (Goal Technology Architecture) and received the highest rating in our evaluation of technology when compared to other respondents. SAP' s track record in the technology arena is very good. Currently their systems have moved away from proprietary to open systems technology and they have implemented a constant upgrade path to newer technical platforms. SAP' s product upgrade strategy includes a new release of the product delivered on

7 BChydro II CAR JUSTIFICA TION BUSINESS CASE Project Name the average of once every twelve months. On average, CIS installations upgrade to the next release of the CCS softare once every twenty-four months. Minor enhancements are released automatically every quarter and companies are free to apply or make use of them as needed. The SAP product is built on a proven three-tier client/server architecture comprised of 1) a presentation layer, 2) an application/business logic layer, and 3) a database layer. To ensure our solution wil have the best possible fit with our existing technology and future technical directions, the configuration wil be fully compliant with our IT standards. Three distinct architectures wil be developed and rolled out at appropriate stages of the project: A development architecture wil provide the infrastructure, tools, standards and procedures required to configure and test the solution and convert historic data Execution architecture wil provide hardware, operating softare, maintenance, and training environments necessary to support production services. An operations architecture wil provide application support tools, skils, procedures and service management tools to ensure the required degree of service availability and responsiveness The new CIS wil be established on a UNIX/RDBMS platform. This approach will provide multiple benefits to BC Hydro, including: Flexibilty and scalabilty of the distributed architecture Easy integration with Internet service elements Fit with our corporate IT direction moving to a fully distributed computing environment Support the corporate direction to move away from the BC Hydro mainframe

8 Appendix G - Northstar Operating Assumptions

9 , ' Appendix G: Northstar Operating Assumptions General. BC Hydro wil continue to operate its own Customer Information and Biling system until the new Northstar CIS is implemented. The new Northstar CIS wil be required to bil for electric consumption and other non-commodity products for electric customers only. The new Northstar CIS wil be designed to support a variety of business structures but wil initially be implemented to support the current BC Hydro business structure. The CIS solution wil be based on SAP CCS version 4.64 and there are no plans to upgrade the version during the Implementation Phase. The new Northstar CIS wil be implemented as close to the "vanila" (i.e., as delivered) SAP CCS v4.64 product as possible. Cutover, or go live, is assumed to occur in late December Business requirements wil continue to evolve during this project. However all changes, once project scope and budget are approved in Blueprint Confirmation (August ), will be funded outside this Business Case. Moved to out of scope.the Field Service Order System (FSOS) wil be decommissioned prior to, or at the same time, as the current CIS. Functionality supported by FSOS wil be provided mainly by the new "Portal" system with some functionality being provided by the new Northstar CIS. Specific details wil be worked out and system requirements defined during the design phases of both projects. The project budget includes provision for back-fill of full or part-time resources for project staff only. The project wil pay for project -related training (e., SAP ABAP training) for BC Hydro only. Accenture, Westech and NCS are responsible for the costs associated with their team members. For the full-time BC Hydro resources, Northstar wil pay for salary increases days, annual vacation and benefits. The development Service Level Agreements (SLA) between Customer Services operator of the Northstar SAP solution, and any third part wil be developed and managed by business representatives outside the project jurisdiction. Scalability of the SAP CCS infrastructure ensures that the technology solution wil be able to support BC Hydro s core customer service business well into the foreseeable future. The selected infrastructure wil not restrict the support of a multi-company or multi-service configuration. The current infrastructure sizing takes into account the current BC Hydro s business requirements. CIS Decommissioning - the legacy CIS wil be decommissioned to the point of running it in Read only mode. The legacy system will be needed by the business until

10 in RO mode for up to a year after SAP CCS goes live. When the legacy system is no longer needed, the business unit wil have to plan for the decommissioning of the system completely as a separate project. FSO must be decommissioned with the initial implementation of SAP, as the system cannot exist without the legacy CIS. Service order scheduling, dispatching, permit management and contract management functionality, currently performed in FSO, wil be supported by the Passport Portal project (scheduled to go live in Q2 2003). SAP CCS wil support issuance and completion of customer-facing service orders which is reflective of industry best practices. This change is under negotiations between the two projects and any changes to Northstar interface requirements or functional requirements wil be approved via the change request process. Current project locations include Edmonds OC2-209, OC2-213, OC2-214, OC Mobilization of the project to a different location is out of scope. Proposed changes to existing or new systems that are not currently in production and would impact the new Northstar CIS wil be agreed between both projects in advance. Costs for these activities are out of scope and wil be handled via the Northstar Change Control process Process The new N orthstar CIS Process Model assumes only existing CIS processes wil be addressed in the first release, i., the current scope ofthis project. Processes that could be used in the future have been identified and marked as ' Future, and wil be addressed in future releases. The new Northstar CIS Process Model only addresses those processes that in some way require direct interaction with the CIS system. Processes and steps that are performed from other systems have not been included and are assumed out of scope. Any changes to the complexity ofthe business processes or the addition of newly identified business processes wil be handled through the Change Control process. Dollar estimation wil not be used, rather a reading estimation (standard SAP) wil occur. Existing low volume manual processes wil remain manual processes in SAP. A non-energy invoice is not required from the new Northstar CIS in the current release, as all non-standard specific charges wil be handled and invoiced through PeopleSoft ( note this may change if a change request is raised in the next phase). PeopleSoft wil be responsible for the biling of non-energy charges not currently handled by CIS. Standard non-energy charges currently biled in CIS wil continue to be biled in the new Northstar CIS system. BCC and BCQ systems representing the payment funnel wil not be replaced. Technology & Infrastructure

11 NCS operators will join the project without backfill and continue to charge their home cost center. The new Northstar CIS wil re-use the mainframe printing capabilities currently provided, e., CSF, printers, etc. Data Archiving - Northstar wil ensure backup and restore of the entire system, and wil provide procedures to purge high-volume non-essential data (e.g. data that wil not compromise any reporting or on-line query capability from the system (help manage disk storage usage). Full data archiving and retrieval capability however is outside Northstar s scope. The technology team is not responsible for the support of the EAI infrastructure. It is assumed that the OCIO wil play this key role. Bil Format and Print - The present system for bill format and print on the mainframe will be used. The high-speed printers and any other hardware or softare required for bil printing after the generation of the flat file in SAP is out of scope. The project wil not provide the additional hardware and/or infrastructure equipment necessary to implement a site failure recovery strategy. The Technology Strategy addresses the back-up and recovery facilities. Network traffic estimates have confirmed that BC Hydro s existing LAN and WAN infrastructure is sufficient to handle the incremental data communication caused by SAP CCS. Upgrade or changes in the network infrastructure wil be handled through the project change request process and draw on contingency if necessary. If the infrastructure proves to be insuffcient for CCS, Northstar wil assess the upgrade requirements and escallate if necessary for approval via the Change Request process to be funded by the project contingency. Developments, including Interfaces Changes in business requirements within in-scope developments that are identified after the blueprint phase are considered out-of-scope. These changes must flow through the change control process to assess impacts to the development and other teams. Any existing interface or other entity which the team missed during Blueprint and Blueprint Confirmation, will be assessed by the project team and escalated if necessary for approval via the Change Request process to be funded by the project contingency. Unless otherwise indicated(e.g. EAI), all interfaces are assumed to operate in the same manner as today, including fie formats, platforms, and communication protocols. SeeBeyond, BC Hydro s corporate Enterprise Application Integration (EAI) tool, wil be used for a subset ofthe Northstar SAP CCS interfaces. Specific criteria wil be developed and jointly agreed with the BC Hydro Common Interface team. Northstar will be able to leverage the experience, tools, and common EAI infrastructure built to date. This includes templates, design/development standards

12 and hardware/software environment and support resources. These tools and resources wil be provided at no cost to Northstar. Field service orders wil be created in SAP but dispatching and costing wil occur in other systems, e.g., WMS/Passport. A combination of manual and automated interfaces wil exist between the new Northstar CIS and WMS/Passport. The new Northstar CIS will contain all devices in inventory (via interface from EMRS), but EMRS will continue to be the system of record (i., responsible) for the maintenance of the inventory, procurement, retirement, certification, etc. of all devices. Atlas wil continue to handle all external credit issues, e. agencies., interaction with collection BC Hydro wil utilize the complaint management functionality in SAP and eliminate the current complaint management system. CCS will interface with the ARCs and MRMS solution that was implemented in mid SYMCOR wil continue to handle the processing of payments. EIGEN will continue to process Credit Cards and pre-authorized payments. Outages wil be reported through the new Northstar CIS, but the outage management functionality (e., network location, problem identification, resource management of skils and equipment, dispatching, etc.) wil remain within PowerOn. Power On Trouble calls for all areas wil now be all processed through PowerOn. Technical Development All user id', authorizations and developer keys wil be created for the technical development team. The technology team wil inform the development team ofthe application of any OSS notes, upgrades and hot packs. The developments are dependent upon the configuration and customizing of their associated processes and sub-processes. The development schedule wil be structured to account for configuration dependencies. The SAP CCS interface development is dependent upon the completion of any required code changes/modifications to the connecting 3rd party systems. The Northstar development team wil work closely with the 3rd part developers to define and document all required modifications to the 3rd part systems. The SAP CCS interface development is dependent upon the creation and connectivity to the SeeBeyond EAI infrastructure. The development team is assuming that the EAI infrastructure and all required SAP connectors are set up prior to the implementation. The CCS Northstar Project wil ensure that all outstanding SAP 'Hot Packs' and AOP (Add On Patches) will be applied to the solution (up to the integration test freeze date). Business Integration

13 Several of our sponsors have changed since December We expect to receive full support from our new sponsors throughout the life of the project No significant organization design/consolidation is in scope for this project. The organizational alignment activities are limited to role/responsibility alignment and sizing the number of positions required in specific functional areas No changes to reporting relationships or management processes are included in the scope of the project A limited number of jobs outside of Customer Services wil be impacted. We have assumed that these jobs wil be expected to use CCS, but that there wil not be a shift in responsibility Direct customer communication wil be handled by the current group/individuals External communication requests wil be handled by the Corporate Communications Business Policy changes wil be developed by the business and coordinated by the Business Integration Team Learning There is no apparent or well-defined overall learning or training strategy in Customer Services. If a strategy is defined during the project, the Learning team wil strive to align to the overall strategy as much as possible without severely affecting project timelines, resourcing, and deliverables. The learning and performance support effort wil be complimented by the delivery of effective communication, the change network, and sponsorship by the Business Integration Team and Customer Services Management Team. Users have the necessary prerequisite skills and knowledge (computer orientation non-cis application skils, and BC Hydro knowledge) to perform their current jobs and wil not be trained in these areas during CCS Learning. This includes BC Hydro policies and procedures and computer applications, such as Microsoft Office and . Northstar wil develop Learning materials to transition users from the existing CIS to CCS, this wil incorporate information on process and system changes. While reusability wil be a key objective the materials. The Northstar materials wil be inputs to the 6 week induction training, however they wil not be designed for new employees and wil not replace the current 6-week induction training. Any staff who is newly recruited to related business areas will receive the necessary training and coaching in their new roles prior to receiving CCS training. Temporary and/or retired employees wil backfill Customer Services up to the Go Live datewhile employees are trained. Backfill, temporary, and retired employees may need to be trained in the current CIS system. The project has budgeted for 30 resourcesfor 4 months at a group 6 level. CSMT members (or representatives from the business) wil be responsible for the documentation of changes to impacted policies and business rules and the creation of

14 new forms within their business unit. These changes will be incorporated into the performance support tool and learning activities if received prior to the Learning Pilot. Existing Call Centre training facilities in Edmonds, Vernon, Prince George, and Nanaimo wil be used to deliver learning. Additional facilties and equipment wil be required to deliver learning prior to go-live. Participants from other locations (e. CCS offices, meter readers, etc.) wil travel to the closest training facility in order to receive training. Maximum capacity of existing Call Centre training rooms are 16 users per course at Edmonds and 8 users per course at Vernon, Prince George, and Nanaimo respectively (due to infrastructure and room capabilties). Learning wil be conducted during normal working hours. Any negotiations regarding overtime will be the responsibility ofthe business and wil be agreed upon in advance. The business wil fully sponsor learning activities and integrate learning requirements into individuals' work schedules as required. The Learning team wil work with the Technology team to define User Profies. The Technology team wil be responsible for the creation and maintenance of User Profies. Learning Delivery will require a large number of resources to deliver training in multiple locations and multiple business units. Suitable business resources wil be seconded to deliver classroom training. This wil help to create skilled users within the business. Following go-live the responsibility for all Learning and performance support activities will be formally handed over to the responsible business units; this includes the delivery of all Refresher training.

15 Appendix H - Organizational Impacts

16 BC hydro Appendix H Organizational Impact Project: Customer Information System

17 BC hydro II CAR JUSTIFICA TION BUSINESS CASE Project Name 1. ORGANIZATIONAL IMPACT INTRODUCTION The Change Management portion of the SAP CIS project wil form an integral part of the overall solution. As such, it takes a holistic approach to the organizational impact arising from the implementation of a new system and new business processes in an established environment. The Change Management portion wil include the following five segments: 1. Organizational Change: this includes an organizational impact assessment, which analyses the business change events. These are defined as planned actions resulting in a change to the way Customer Services and other Business Units perform their business. The other aspect covered in this area is organizational alignment, which ensures that jobs are aligned with the environment so that people are working on the right things, the right way. 2. Communication and Involvement Strategy: the strategy seeks to generate three types of communication: awareness, involvement and education activities. Awareness activities wil assist in convincing employees of the need for this project by explaining the business rationale and benefits of the proposed efforts. Involvement activities wil encourage leaders and employees alike to take ownership of the change. And finally, education activities wil facilitate the implementation of change, when formal training is not required. 3. Sponsorship: this is a key element to the successful conclusion of the SAP CIS project, as change will not create sustainable business benefits over time without effective sponsorship. Sponsorship and leadership activities are planned to support employees as they transition to a new way of doing business, using SAP. 4. Training: please see following page for details. 5. Transition Plan: this involves the planning of employee activities during the transition to the new CIS solution. INTERNAL IMPACT There wil be a significant impact to Customer Services staff(call Centres, Biling, Credit and Collections and Community Customer Services). Other internal stakeholders wil include Marketing and Sales, and Transmission and Distributions' Customer Projects and Installations group. The change management and training stream of the project wil manage change issues concerning employees and their duties. EXTERNAL IMPACT The major external stakeholders identified by the project teams are BC Hydro s customers. The Offce and Professional Employees International Union (OPEIU) is also a key stakeholder. As a project principle, customer impact will be constrained to a minimum. Customer impact wil be assessed and the right mechanism to communicate with the customer wil be employed.

18 BChydro II CAR JUSTIFICA TION BUSINESS CASE Project Name Partnering with the union throughout the project wil be critical to the success of the project and in implementing organizational changes. Involvement wil likely be concentrated in the Organizational Alignment, Organizational Impact, and Core Solution work. The union wil be involved at the earliest possible time in order to reduce the impacts of the project and wil be invited to self-select the level and frequency of their involvement. Overall, the project does not expect a major impact to external stakeholders. TRAINING REQUIREMENTS Customer Services within BC Hydro puts an emphasis on learning. The training strategy strives to enhance learning by building on current training methods and evolving them into a goal-based learning environment. This wil allow traditional classroom instructors to become coaches who teach users the business context in which SAP transactions wil be performed and the tools available to support them. This shift in training wil promote learning as a continuous process. Training wil be provided to primary, secondary, and casual users based upon their need and usage of CIS. Training wil take on a holistic approach where educating users wil encompass teaching users the new application, the business processes, and the business context in which the system wil be used. Users will be trained using various methods in order to achieve the goal of ' speed to proficiency' where they will be able to perform independently minimising the time required away from their jobs. SUPPORT REQUIREMENTS Existing support structure/staff for Training, the Help Desk, CIS Systems, and Computer Operations wil be re-trained and utilsed for the project. To further support users, a central repository for documentation wil be built for Customer Services. This repository wil provide the first "port of call" for information relating to business processes, policies procedures, application help, and relevant information from other business areas, such as Marketing & Sales, which Customer Services needs to run their business. During the training process, users wil practice using SAP and the performance support tools at their own pace while coaches are in the room assisting users on a one-on-one basis. This setting promotes end users to be actively involved in their own learning process.

19 Appendix I - Summary of Risks and Risk Mitigation

20 Appendix I Summary of Risks and Mitigation Strategies Resources: Risk The project wil demand very significant participation ITom the SBUs (especially Customer Services), Westech, the solution integrator and the softare vendor. This is of some concern, as three other projects (Joint Meter Reading, MRMS and BC Gas Conversion) wil be occurring during the CIS implementation. Interfaces: SBU resources and especially subject matter experts are completely committed on present initiatives. Solution Integrator and Softare Vendor resources are often inexperienced. It can be difficult to ensure quality when business decisions are delayed Some interfaces may be complex and support for the interfacing system may be less than optimal. For example, the mobile dispatch system (MDS) is rather complex and becomes more so due to the fact that it is being re-defined. Changes in the new CIS may affect a significant change in programming logic and business processes in the interfacing systems. Change Management: Data: New CIS system wil necessarily change many business processes and provide a completely new user interface. Many employees working with the CIS may have diffculty adapting. Significant changes always affect employee morale. Some long-term employees are not very PC literate and new CIS user-interfaces demand significant PC skils. Mitigation Westech is keenly aware of the requirements and have committed to meet resource requirements and time lines. They are in the process of hiring the necessar resources. SBU projects are being prioritized to ITee up experts to work on the project. Additionally, the project budget provides for back-filling many of these resources (see assumptions). Key vendor and solution integrator candidates wil be interviewed at the discretion ofbc Hydro The selection of people who have the appropriate expertise and ensuring that they are empowered to make business decisions Westech currently supports interfacing systems. Westech wil be involved in writing the interfaces and they have extensive experience building interfaces to the existing CIS. Westech is an integral part ofthe CIS project plan and wil have about 25 people on the project. The BluePrinting wil investigate all possible changes and develop a migration and implementation plan. The project plan recognizes this significant risk and has allocated 17% ofthe budget on Change Management. The CIS project wil have a team with a defined budget and plan to proactively manage the change. Strong sponsorship and ITont line management support wil ensure the success It wil be a pre-requisite for the user community to have mid-range PC skils.

21 Scope Control: Risk Most CIS implementations have to work with decades old data in the legacy system. Often the data is inconsistent (some fields are missing or used for multiple purposes), which can adversely impact the data conversion effort. Given the length of the project, there is the potential for scope changes to arise. Time Line: New System: The project plan shows a time line of 19 months for the blue print, build and implementation, and another 3 months for post go live support. In this time business priorities can change, customer expectations can shift and employee and project team member enthusiasm and support can diminish. The new system introduces new softare and operating procedures in BC Hydro. The skils required to operate the new system are different ITom those currently required. CIS systems create significant data growth which can pose a risk for system integrity and response. Project Management: Sponsorship is detached and employees do not pay attention. Capacity for Business Change - there are two other maior proiects running Mitigation Confirm and Approve assessed the quality of the data and allowed for data related issues in the project plan. Some data wil have to be cleansed and converted programmatically using data cleansing and conversion tools provided by the vendors and elements requiring manual intervention wil be converted by Customer Services employees starting immediately after the BluePrinting phase. Implement a thorough change request process; any potential changes to scope wil be brought forward, documented and put through a decision-making process to determine its necessity and source of funding. Soft and hard cut-off dates for the change request process wil ensure that scope changes wil take place only within an agreed-upon framework. The project timeline has been compressed to a "most realistic" time ITame. Given the all-consuming nature of the CIS implementation on the business units, the business priorities wil be focused on CIS and the project has the full support ofthe Customer Services management team. Customer expectations are not expected to shift significantly in this time ITame. All technology introduced by the new system fits the Corporate GT A guidelines. Resources needed to implement the system are being confirmed. BC Hydro wil be provided with the necessary training as well as knowledge and skil transfer on the job. This wil be critical given the learning curve that wil be associated with the new SAP CCS system. Data volume wil be spread across the appropriate number of disc units to ensure response and mirror all production data to ensure integrity. A later project should be undertaken to develop data archiving Sponsorship forms a key piece ofthe Change Management strategy. CIS wil be phased in to mitigate this risk;

22 Conversion: Post Go Live Support: Risk concurrently (MRMS and BC Gas Conversion), which increases the amount of change the business must absorb in a given time and may cause inefficiencies for the implementation of CIS or delay CIS roll-out which means increased cost, the longer the delay The budget may be at risk if project scope is not controlled or well-defined Vendor project management may not be experienced posing undue risks. There wil be a very short period of time in which neither CIS nor SAP CIS will be available to users during the conversion process. This "downtime" could adversely affect customer service and biling operations. There is a risk that data may not be converted accurately and on a timely basis. Biling and other data related errors could occur post-implementation with an adverse impact on the business. Service levels in call centres and biling operations wil be impacted immediately after go-live because the system wil be new to all users, even though all users wil have been trained. Mitigation also replacing only core functionality. Confirm and Approve conducted a significant analysis to explicitly define scope; project budget and therefore timeline and resources are developed based on this definition. There wil be a project management offce with experienced representation ITom BC Hydro, Westech, the Solution Integrator and the Vendor. Vendor candidates have been interviewed and the relevant candidates have been specified in the contract. The Project wil adhere to established project management methodology, and wil report to Project Directors and the executive Steering Committee. The "downtime" wil be minimized by planning Go Live over Easter 2003 and ensuring that high volume and high impact business processes are either completed in advance or delayed as appropriate. Very detailed cutover planning (to the hour each day) wil mitigate this risk. The conversion process wil be performed for the entire customer base. Several mock conversions wil be done to verify all aspects of conversion before going live with the new system. A separate data verification effort wil review converted data for accuracy and completeness. A system of expert users and power users wil be in place at go live to support all online users. This intensive system of support wil be in place for the first two weeks after go-live with the goal of restoring regular support levels over a period of two to three months. Additionally, all users wil be trained for their respective jobs, and additional training wil be available as refresher courses immediately before and after golive.

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24 Appendix J - Scope Inclusions and Exclusions

25 Appendix J - CIS Scope Inclusions and Exclusions 1. CIS Implementation Scope Inclusions The goal of the design and development effort is to provide a customer centric and flexible system using the functionality SAP/CCS offers. Five key areas have been identified as the drivers for the scope of the project: Processes A list of 122 business processes have been identified: Systems Customer Care - 23 processes including customer enquiries, interactions movements and contracts. Biling - 29 processes including customer billng, exceptional biling, nonenergy biling for energy customers, biling plans and billng follow-up and rate maintenance. Duplicate billng, reversals and re- biling as well as consolidated billng functionality are included. Account Management - 36 processes including payments, payment adjustments, credit management, credit management follow-up and a variety of financial transactions Device Management - 34 processes, including meter reading, meter reading follow-up, device management, customer projects and installations, and service order management. The existing CIS wil be replaced with the new CIS using the CIS Vision and Guiding Principles outlined in Appendix J. The new CIS will also perform the functionality of the following systems: Field Service Order System (FSOS) Complaint Management Interfaces A dedicated Interfaces team wil ensure that communications between the new CIS and existing systems outside of CIS run smoothly and effciently. Currently, 56 interfaces have been identified. These interfaces comprise:. 4 impact external, third part systems, such as the Canadian Banking Association 52 interact with BC Hydro systems, such as the Electric Meter Record System 11 of the 56 interfaces have been added since the RFP process began Implementation and Data Conversion A great deal of data is stored in the current CIS. In order to balance the requirements of quality data with time and financial cost, the Implementation effort for the new CIS wil take a "Long Bang" approach. Here, the information is brought into the new system in stages of static (e.g. postal codes), static/dynamic (e.g. mailing addresses) and dynamic

26 (e.g. meter reading) data. This allows for maximum assurance of clean data and minimal risk of customer- facing business impacts. Data Conversion - this major Implementation activity refers to data cleansing and data migration areas Quality Assurance and Acceptance - this refers to the processes that wil be put in place for testing and corrections Cutover - this major implementation activity entails provisions for the actual decommissioning of the current CIS and the commencement of SAP CIS Change Management & Communications The implementation of a new system as comprehensive as SAP/CCS brings with it significant adjustments for the business and its employees. The Change Management effort for the implementation of the new CIS wil include many activities encompassing the entire business: Impact Analysis - this activity entails readying the organization for the change effected by the implementation of the new CIS and includes investigating role and job alignment Communication and Involvement - communication of key messages regarding the change to the end-user community through face-to-face sessions and involvement activities Sponsorship - development of action plans so that ownership ofthe new system cascades from the executive level to the larger business organization Training and Performance Support Strategy - this refers to the plan to train and educate end-users in the business processes and application changes, as well as the support tools which wil help increase comfort with the change and provide information over the long-term to the business Business Performance Metrics - this entails aligning key performance indicators with the new business process to ensure the metrics support the business strategy Transition Plan - this refers to the change management activities during cutover which wil further provide practice to the end-user community and create the training schedule 2. Scope Exclusions The scope of Project Northstar is defined in detail in the Blueprint Confirmation materials. (Dated Aug. 30, 2002) Below are indicative highlights of key scope items. As a general principle, new business requirements, which are not supported by the current CIS, wil be considered a new scope item and require business sponsorship and additional funding (if approved). Contingency wil be used, at the discretion of the Operating Sponsors and PMT, to fund unforeseen cost overruns (which may be the result of incorrect assumptions or estimates). This project covers a comprehensive range of processes to meet today s business requirements. The SAP CCS solution is capable of a variety of other functionality, which BC Hydro may want to make use of later. For this reason, some systems

27 currently utilized will remain in place but may be replaced in subsequent phases. These systems are: 11 Electric Meter Records System (EMRS) II Atlas system for agency management II Sundry Accounts Receivable (expected to be subsumed by PeopleSoft II Financials) II Account Online (AOL) for electronic bil presentment and payment II Sales and Marketing Information (SAMI) for customer management Additional areas that are out of scope include: II Redesign Service Bill- To avoid any unnecessary customer impact during golive (which could result in operational impacts), we are adopting the current service invoice format. Our goal is to avoid any visible change in service including the bil format, at go-live. Customer Data Warehouse - The present CDW will not be recreated with new data ITom the new CIS. Much of the data currently requested through the CDW will be supported via on-line and customer ABAP reports (see above reporting section). Strategically, we endorse the subsequent implementation of the SAP Business Warehouse (BW) which is included in the BCH SAP softare agreement and responds to ad-hoc requests in the most efficient long-term manner. Customer Relationship Management - While we wil place a significant amount of attention on developing a customer-centric solution, Northstar wil not include the implementation of sales, marketing or advanced segmentation included in the CRM module. II Industrial Billing - Complex biling for industrial customers wil not be implemented in the new CIS. A separate project could enable this capability and replace BC Hydro s LodeStar system. I! Energy Data Manager - EDM for management of interval data wil not be implemented by this project. 1& Time of Use - TOU rates and offerings are not included in this project. II Changes/updates to core SAP code are not in-scope. The technical developments identified by Northstar are all customizations required to satisfy business requirements. No changes to core SAP code are to be done by the development team. II Changes in business requirements within in-scope developments that are identified after the blueprint phase are considered out-of-scope. These changes must flow through the change control process to assess impacts to the

28 development and other teams. Anything existing interface or other entity which the team missed during Blueprint and Blueprint Confirmation, wil be assessed the project team and escalated if necessary for approval via the Change Request process to be funded by the project contingency. II Only historical data required for accurate meter reading estimation, validation and biling wil be converted. Also, the minimum amount required by the regulatory commission wil be converted. (See section 3. 1 for details) All other historical data is out of scope. II Closed and written-off customer account information are out of scope unless a debit/credit balance exists, which is in scope.. II Some data that exists in the legacy systems wil not be converted based on age relevance, etc. An archiving strategy wil be required by BC Hydro to handle such data. The archival may be in the form of transferring the data to data fies or printing and storing the hard copies of the data. The archiving strategy and archiving is not in scope, however the project will complete a Archiving White Paper. ii Changes as a result of a multi-company or multi-service configuration wil require a new sizing exercise to define the hardware requirements and are not in scope. II Business Continuity - Northstar wil ensure complete recovery and restore capability for CCS. Current Customer Services BCP procedures wil be updated where impacted by the CCS implementation. However, business continuity tasks for systems and inuastructure not directly related to CCS and its operations are outside the scope of North star. The project is, however, committed to supporting a Customer Services led initiative to resolve with broader business BCP requirements as outlned by the CIO offce and wil include a review of the 14 step CIO process ( see Appendix I.)

29 Appendix K - Issue Management

30 Appendix K - Issue Management Issues wil arise throughout Northstar and must be resolved in order for the project to advance. The issue management process provides a tool and a structured approach for capturing, managing and resolving issues in a timely manner. The Create and Resolve Project Issue process has two main components: 11 The definition of a project issue and when it is appropriate to raise and track an issue 11 The Issue Resolution Process and the PVCS Tracker issue tracking application What is an Issue? Team members wil create an issue in PVCS Tracker when the following situations arise: II In-scope functionality or business principles cannot be adequately implemented or executed given the existing set of business requirements. When this occurs, the issue management process wil be used to ensure that the right person(s) analyze the issue and develop a solution that fits within the overall scope of the project. 11 The existing project infrastructure is impeding project team productivity. For example if a project management process, such as status reporting, is confusing and timeconsuming, and issue would be raised in order to have the PMT review the process and formulate an appropriate solution. II It is expected that every team member will run into issues throughout all phases of Project Northstar. It is not anticipated that all issues wil be entered into the tool. If a team member has a question or request for clarification that can be handled quickly within a team, then it may not be necessary to go through the entire process. However issues that require a high-degree of visibilty, or require the intervention of multiple teams, or escalation to the PMT, should be immediately entered into the tool for tracking and eventual resolution. Process Responsibilties While all individual team members can create and issue, the process of resolving the issue resides with different individuals, depending on their respective roles. An Originating Team Member (any project team member) identifies and initiates the issue management process by creating an issue in PVCS Tracker. Originating Team Members are ultimately responsible for ensuring that their respective issues are resolved as per the identified resolution noted in PVCS Tracker. Additionally, these individuals are responsible for escalating issues to the PMT and for initiating other corrective processes (like the Change Control and OSS Processes), when necessary.