Strategies and Management Workshop 2015

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1 Strategies and Management Workshop 2015

2 Customer Care & Billing (CC&B) and Meter Data Management (MDM) An Exelon Company April 2015

3 Discussion Topics Project Overview Organization Chart Timeline of Key Events Driving to a Quality Solution External Communications Business Readiness Post Go-Live Highlights Factors Contributing to Project s Success 2

4 Customer Care & Billing and Meter Data Management Project Overview Foundational systems deployed in January 2012 Customer Care & Billing (CC&B) Customer Care & Billing (CC&B): New customer system and processes that support BGE s long-term customer strategy including Smart Grid. CC&B replaced a 20 year old legacy CIS/Customer 1 system. CC&B increased customer information transparency, expanded customer self serve functionality, increased customer flexibility, options, proactive notification, and enhanced cash management, projections, and collections. Customer Self Serve (CSS) Customer Self Serve (CSS): Replaced existing online payment platform with an enhanced solution that enabled short-term (e.g., recurring payments) and long-term enhancements (e.g., customer chat). Market Transaction Manager (MTM) Meter Data Management (MDM) Reporting (Business Intelligence & Business Objects) Market Transaction Manager (MTM): an Oracle custom development that enabled Supplier Billing, or the ability for BGE s customers to choose gas and electric suppliers other than BGE. Meter Data Management (MDM): the single repository for all interval, register and event meter data which can be used to better understand and manage customer s usage patterns. Reporting (Business Intelligence & Business Objects): Reporting solutions that enable the business to obtain the information needed for operations. Reports cover financial close, SOX, tax, and operational metrics. The Business Intelligence solution enables dashboards and drill down capabilities. 3 3

5 Timeline of Key Events Study Business Case Approval Scope Investigate / Reason Innovate Undertake Build Undertake Test Undertake Deploy Sustain Mar - Dec 2008 Jan - Jul 2009 Aug - Sep 2009 Oct - Dec 2009 Jan - Aug 2010 Aug - Nov 2010 Oct Aug 2011 Sep - Dec 2011 Jan - Apr 2012 CC&B Business Case finalized 12/08 CC&B Business Case approved by CE BOD (based on 12/08 baseline) 5/09 CC&B project commenced 8/09 Leverage Oracle product for supplier transactions 7/10 Approach for integrated projects launched 4/09 DOE Stimulus Grant application submitted 8/09 Meter Integration Transformation project approved (replaces Interface Manager) 8/09 Mobile Dispatch System project approved (replaces Field Force Management) 8/09 Decision and approval to run Meter Data Management as stand-alone project - 9/09 Third party billing approved as in scope for CC&B - 10/09 = CC&B directed = Internal: CC&B impacted = External : CC&B impacted Oracle announced integration for CC&B - 10/09 (Decision made to leverage Oracle s integration vs. custom build) Oracle announced 2.3 Release of CC&B 1/10 (Integration decision requires release) Smart Grid approved by PSC 8/10 Oracle integration delivered 8/10 4

6 Customer Care & Billing Organization Chart CC&B Project Governance Executive Sponsor BGE President Sponsor Team Vision 2020 Program Managers VP Business Transformation VP Information Technology Program Management Office Business Lead IT Lead Advisory Group Configuration & Testing Integration Business Intelligence & Reports Conversions Technical Architecture Organization Design Change Management & Training 5

7 Driving a Quality Solution Bill Compares Mock Conversions Dress Rehearsals Business Readiness 1 million CC&B bills compared to legacy system leveraging bill compare tool Manual bill comparisons performed for ~ 2,000 bills Improved bill precision through defect resolution process Completed 12 mock conversions (achieved 48 hour goal) All converted data for standard objects validated by out of box Oracle verification tool Confirmation of key data control points within acceptable thresholds Converted data used for integration and operational readiness testing Completed 4 dress rehearsals Dress rehearsals included full set of integration and manual data activities Incremental improvements in each dress rehearsal and all fit within cutover window Over 50 business resources involved in design, build, and test activities User Acceptance testing performed by business users Business simulation (online and batch) performed during Operational Readiness Testing Capacity planning performed and mitigation plans implemented Robust training of >1000 users (e.g., side by side calls, working exceptions in Production environment) 6 6

8 Application Test Plan System Testing (Starting October 2010) Integration Testing (Starting January 2011) Regression Testing (Starting August 2011) Operational Readiness Testing (Starting September 2011) Performanc e Testing (Starting October 2011) User Acceptance Testing Tested functionality within CC&B / MDM, both out of the box functionality and enhancements Key Outcomes Conducted test scripts involving CC&B/ MDM and other interfacing systems such as work management systems, outage management system, those of payment vendors, etc. Conducted testing to assess whether changes introduced to existing environments introduced new errors Executed over 3000 test scripts in CC&B, MDM and AIA covering over 100 process areas Achieved 100% pass rate on system, integration, and regression testing Tested 100+ integrations across 30+ legacy systems to ensure end to end transactions work across systems (1400 scripts) Supporting 20 external 3 rd parties with verification of changes to CC&B and/or their system/processes to support go-live Executed test activities to simulate day-to-day operations; verified production environment readiness to handle new system Ensured system is capable of operating at the targeted load and response levels Ensured end users and key stakeholders were satisfied with the solution Performed batch (~200 jobs) for all 21 bill groups; followed by additional 10 bill groups to simulate 2 monthly cycles Demonstrated ability to perform full batch Performed online performance testing with end users performing transactions while simulating production level volumes Leveraged bill comparison tool and manual comparisons to test bill accuracy (compare over 25 bill groups, reviewing over 1M bills in total) Analyzed over 900 unique exception messages to understand volumes expected at go-live and document/test resolutions steps Conducted disaster recovery exercise to simulate and identify key lessons 7 7

9 External Communications The communications plan aimed to: Alert all customers of the new system and account number change Deliver targeted messages to customers who need to take action Deliver targeted messages to customers who will experience a change in the way they interact with BGE (no action needed) Ensure all customer-facing teams can educate their customers with messaging specific to their customer group that is consistent with overall program messaging Ensure all external-facing teams (e.g. media relations, community outreach) are prepared to respond to potential inquiries Prepare for contingencies 8

10 Post Go-Live Customer Communications Corporate Communications worked closely with the project team to ensure urgent communications reach customers quickly and efficiently Many communication activities since Go-Live were products of the mitigation efforts for the issues encountered and addressed by the project team, including: Regularly revised talking points for the contact center and external-facing teams Updates and FAQs on BGE.com Ongoing monitoring of social media channels, responses to customers with general questions Letters and predictive dialer messages to CheckFree customers Updated Budget Billing information including a letter, video and blog Press release and media engagement Three CC&B-specific blog posts Revised system messaging including CSS language and s on account registration IVR updates 9

11 Business Readiness Focus Areas 10

12 Post Go-Live CC&B and MDM Highlights The new customer information and billing system became available to end users on Tuesday, January 3 rd. Third parties (Oracle, Accenture) confirmed that, despite some challenges, we benchmarked well against other major utility system CIS implementations. All 21 bill groups processed each month since go-live. Nightly batch processes to generate bills, turn-off notices and letters are running as planned with 100% of payments successfully processed and received. Deadlines to submit bills, turn-off notices and letters to RR Donnelly for mailing to customers are being consistently met. CC&B core functions (e.g., customer set-up, billing, payment processing) are operating as expected on a daily basis. End users are becoming more proficient every day in using the system to perform their jobs. Contact Center has decreased average handle time by approximately 45% since go-live. Reports are being run month over month with no significant performance issues. The project team addressed issues as they arose. Weekly migrations occurred to incorporate fixes for issues identified throughout the 4-month stabilization period Daily meetings were held with business leadership to discuss high impact issues during the stabilization period Open communication lines with Command Center existed for Supervisors to quickly alert of and escalate issues 11

13 Actions Taken Challenges Key Milestones Post Go-Live Milestones and Highlights January 3, 2012 CC&B / MDM Go-Live! January 5 First round of bills printed at RR Donnelley January 18 BGs run for summary billing & large industrial customers January 27 All Bill Groups Complete February 3 Reassessed Floorwalker Support Needs (orig. set for 2/17 Day-45 checkpoint) February 27 Transitioned to Long-term Supt (Helpdesk/mailbox) March 26 Stub period close completed April 9 Quarter end close completed January 4 First Bill Group run January 6 First Turn-Off Notices sent to customers January 23 First time collections throttle run (high risk commercial accts) February 1 Month end close 1 st bill grp run, Feb February 6 Moved floorwalkers to GEB to fix defects March 1 2 nd Month end close April 2 First time collections throttle run (high risk residential accts) April 22 All Phase 2 reports migrated to production Account #s changed CSS bank verification Longer wait times Appearance of Budget Bills changed Color of turnoff notices changed Billing errors & no bills 3 rd party supplier issues CC&B/MDM date mismatch Prioritize & correct emerging defects Fine-tuned system performance Changed IVR messaging Refined process to improve wait times (AHT) QA check call reps to optimally sequence calls Posted online Service Order form Ongoing training & coaching for call center/back office IT monitored calls & developed list of quick win improvements Continue to monitor system and process stabilization and swiftly resolve emerging issues. 12

14 How We Improved Fine-tuned system performance issues and occasional slowness Implemented process changes to improve average handle times and manage exceptions Ensure that calls are optimally sequenced to eliminate repeat calls Implemented an online form for service orders and payment plan requests Provided additional training to representatives and back office personnel Augmented resources to address exceptions and payment processing backlogs Collaborated with Corporate Communications and Legal to ensure urgent communications reach customers quickly and efficiently Fixed problems with the IVR messaging and plan to expand IVR use for commercial customers Ongoing work between Business & IT to prioritize and correct key customer defects IT SWAT team working side by side with representatives to identify other system changes that make the processing of calls faster Identified quick wins, short-term, and long-term fixes Goal: To achieve service levels at or above 75% by the end of second quarter

15 Factors Contributing to Project s Success Executive support and involvement Collaboration between business and IT Co-leads Business and IT Resources worked side by side throughout all phases of project Early business involvement and commitment throughout project Began with process design sessions Heavily involved in testing phases Several test cycles and phases Multiple mock conversions and dress rehearsals Implemented lessons learned Achieved consistency in batch processes Focused change management program Comprehensive training curriculum and program 14

16 CS Week Best Practices in CIS Implementation Presented by Michael S. Poncia, Director, PHI SolutionOne Program April 30, 2015

17 Topics Highlighted About Pepco Holdings, Inc. CIS Project Description Project Road Map Decision options around the going-forward path Challenges & Complexities Key Differentiators Q&A 2

18 About Pepco Holdings, Inc. Approximately 2 million customer accounts in Delaware, the District of Columbia, Maryland and New Jersey Total population served is 5.6 million Three T&D operating companies provide regulated electricity service Atlantic City Electric, Delmarva Power (gas & electric) Pepco (including one of the top four largest underground systems in the country) Pepco Energy Service provides energy efficiency and renewable energy services Photo by Rick Giammaria, Staff Photographer, PHI 3

19 Pepco Holdings, Inc. Quick Facts Incorporated in 2002 Service territory: 8,340 square miles Customers served Atlantic City Electric: 545,000 electric Delmarva Power: 503,000 electric 125,000 natural gas Pepco: 793,000 electric Total population served: 5.6 million 4

20 CIS Project Description and Scope What: SolutionOne is a single, state-of-the-art customer relationship management and billing system (CRM&B) that accommodates the daily business transactions for the company s regulated electric and gas customers Why: Our two decades old legacy systems were based on outdated technology that was increasingly costly and difficult to maintain and enhance Who: A dedicated team of PHI, Accenture, SAP and other key vendor partners assembled to deploy the new system When: After an intensive 28-month design, development, testing and training initiative, the new system went live as scheduled on January 5, 2015 Where: The SAP CRM&B system is now used in all PHI jurisdictions How: By following a rigorous and structured methodology centered around a clear vision and guiding principles 5

21 Description and Scope (cont d) Converting and consolidating data from more than 1.8 million existing customers from two legacy systems into one CRM&B. Developing and testing approximately 170 interfaces that link the new system with about 50 other internal and external data systems Streamlining and standardizing processes across PHI to efficiently support current and future initiatives Providing customer service representatives and other end-users with tools at their fingertips to provide prompt, effective resolution of customer inquiries Training approximately 1,375 end-users for the new system. This will include instructor-led, computer-based and self-practice components The SolutionOne CIS Implementation is among the largest and most successful transformational projects in company history with over 2,300 business requirements met. 6

22 SolutionOne Roadmap: Product Test - Deployment Phase Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Product Test Cycle 1 Product Test Cycle 2 Product Test Cycle 3 Performance Test Prep Performance Testing MOCK 4 MOCK 5 ORT Prep D R 1 ORT1 D R 2 ORT2 Go live Jan 5, 2015 Trainers Help Execute Product Test D R 3 ORT 3 D R 4 Post Go-Live Support Build Training System Train the Trainer Prod cutover ORT = Operational Readiness Test DR = Dress Rehearsal End User Training & Practice 7

23 Challenges & Complexities Four separate regulatory jurisdictions and three operating companies More than one million interval reading AMI meters yet accommodate entire region of non-ami register reads Two types of services Gas and Electric Deregulation Customer Choice Net Energy Metering Programs and Dynamic Pricing Programs More than 50 internal and external systems through more than 170 individual interfaces Training at 21 company locations in New Jersey, Delaware, Maryland, the District of Columbia, Texas and Georgia for more than 1,375 employees Institutional Memory of prior CIS conversion 8

24 Differentiators: Setting Expectations and Gaining Alignment Established written Guiding Principles and an effective governance structure Project driven and led by the business in collaboration with IT (not viewed as an IT project ) CEO/Board of Directors clearly understood the risks and were actively engaged Proactive communications to regulators, union leadership, stakeholders and customers Increased frequency of CEO/Board of Director updates as go-live approached Rehearsed Go-Live decision-making process with key executives several months in advance 9

25 Differentiators - Rigorous Testing & Quality Assurance Project schedule included more than a year of testing, including: 9 mock data conversions, 4 dress rehearsals and 3 operational readiness tests Single Point of Accountability named for extensive interface design, build and testing activities Established monthly Key Vendor Partner forum with mandatory VP level attendance Served to identify and remove barriers On site presence of ITRON IEE Integration experts closely coordinated with project team Dedicated SOX Controls Team & resources exclusively focused on financial reporting Alignment of Internal Audit, Project Team, KPMG and PwC at every phase of the project Established a 12 month Post Go-Live Support Agreement with Accenture 10

26 Differentiators - Business Readiness Focus Consolidated the Customer Care Organization and the CIS Project under the Vice President of Customer Care Major Focus on Business Readiness Established a Business Readiness Leader reporting to Vice President of Customer Care Extensive involvement of End-User Trainers during Product Test Phase Early Augmentation of Back Office Staff An Accenture First Front Office Staff Augmentation Involved 300+ business employees in dress rehearsals and 10 day cutover process Ran Business as Usual during 10-day cut-over process Established extensive post go-live Command Center with Floor Walkers, Site Leads and Subject Matter Experts 11

27 Differentiators - Intangibles Staffed project with experienced utility staff Innovative Space Design for team location Learning from other utilities Developed a list of banana peels to avoid Implemented a Project Team Reward Incentive aligned to high quality results and milestones 12

28 SolutionOne Initial Success Criteria: Developed in Consultation with Accenture Factor Good Above Average Exceptional Trained Personnel > 80% end users trained > 85% end users trained > 90% end users trained Call Center Call Volume -- Change Moderate increase in call volume 15-25% Small increase in call volume 5-15% Minor increase in call volume 0-5% Call Handle Time Change (AHT) 100% Higher than pre-deployment % higher than pre-deployment 50-85% higher than pre-deployment Billing Successfully 95% Accounts billed successfully 96-97% Accounts billed successfully 98% of accounts billed successfully Exception Volume < 30% increase from legacy < 20% increase from legacy <10% increase from legacy Escalated customer complaints Media Attention Security all affected users identified 6-10% increase 3-5% increase No increase Relatively minor media attentionsome unanticipated groups of customers impacted 85% of end users mapped to appropriate roles Minor media attention but no major negative articles 92% of end users mapped to appropriate roles No media impacts 97% of end users mapped to appropriate roles System availability 90% available first 30 days 95% available first 30 days 100% available first 30 days Batch runtime Core batch jobs generally run in allotted time frame with some delays Core batch jobs generally run on time, minor delays experienced Core batch consistently runs in allotted time frame Payments Posted Correctly 90% of payments posted to correct accounts 95% of payments posted to correct accounts 98% of payments posted to correct accounts Denotes PHI Performance 13

29 Stabilization Update - Performance since Go-Live 14 SolutionOne and Customer Care continue to perform consistent with preconversion levels and better than industry norm Results through First Eight Weeks of Operations System Performance Batch Processing 100% within processing window System Availability 99.8% year to date Customer Care Back Office: o Generated ~3.4M invoices o Cash Posted ~ $640M o Billing Accuracy at 99.86% o Billing exceptions generated daily ~6,000 versus 4,000 legacy o Billing exception proficiency improvement of 25% since go-live Front Office: o Answered more than 875,000 phone calls o Overall Telephone Service Factor is 80% versus 76% same period last year o Abandonment Rates less than 2% o Average Handle Time is 8 minutes versus 6 minutes same period last year o Average Handle Time Proficiency improved 41% since go-live 14

30 Collaboration and Teamwork are Key to Success 15

31 Appendix 16

32 Guiding principles were established early in this effort Quality First - The quality of the implementation is paramount. Design for Flexibility and Adaptability - Architecture must facilitate rapid implementation of future enhancements. Virtue in Simplicity, with the scope including three core components: fundamental CIS functionality functionality to meet public commitments some additional, value adding, out of the box capabilities Change the Process, Not the System - A bias toward process change to conform to out of the box functionality. Not Everything is a Day One Deliverable - Deliverables will be pushed to Phase 2 if they shift focus from a high quality implementation of the three core deliverables. 17

33 Guiding principles were established early in this effort Good Ideas Don't All Have to be Built Some new functions can be obtained by innovation through adoption of best functionality built by other utilities. What is the Impact on Customer Care and Operations? Project decisions need to be made with a clear understanding of the potential impact on the operating areas. Dedicated Team Allow the assigned resources to focus exclusively on this project and seek to capitalize on their fresh perspectives. 18

34 Legacy System Look & Feel Command Driven Technology 19 19

35 A great deal of attention is focused on the User Experience Customer Info Alerts IVR Data Messages Navigation Bar Flyout Menu 20

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