Section 1 (Gated Investment Step 1) 1. Background



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Section 1 (Gated Investment Step 1) 1. Background is TasNetworks Service Order scheduling and field tool. It was initially implemented in 2005 and has since has undergone several upgrades and alterations to address regulatory, and functional issues. The application is now at end-of-life and there is no upgrade path with the current vendor. This initiative is about finding and sourcing an alternative product. consists of a desktop client ( ) and a field component ). Installation, Meter and Service order details are received from the NEM market system interface service order management (SOM) system. Schedulers allocate the Service Orders to work crews via the Scheduler, which are then then delivered to the field crews tablet computers via wireless connections. Field crews acknowledge receipt of the jobs, and progress the job through the states of the Service Order lifecycle. They will then complete the job as well as capture details of any asset data was altered. These details are then published back to where they are then transferred back to the SOM. 1.1 Investment Need The application is now at end-of-life. The product itself is built upon dated technology and lacks any meaningful integration with other field tools that TasNetworks uses such as Webmap, RMSS or Lifesafe. A new scheduling and field tool is required to be sourced, implemented and interfaced with TasNetworks market and other supporting systems. 1.2 Customer Needs or Impact Indirectly the users of the Tasmanian distribution network, i.e. our customers, will be impacted by how compliantly, efficiently and effectively our field operations team are able to operate. This system is the only field system that handles customer driven work. Customers are directly affected as connections, readings, meter tests and various other job types are handled through this system. 1.3 Regulatory Considerations Various SLA s exist for licenced services performed on behalf of Retailers. Failure to comply can incur fines and/or complaints from market participants. 2. Project Objectives IT.WSD.07_Service_Order_Scheduling_and_Field_Tool_Replacement_V1.0.docx 2 P age

significant loss of efficiency resulting in slower work or increased workforce IT-073 Financial TasNetworks will be in danger of defaulting on SLA's resulting in increased charter payments. IT-074 Regulatory Compliance TasNetworks will be in danger of defaulting on SLA's resulting in not meeting its regulatory obligation and perhaps being fined. IT-075 Customer TasNetworks will be in danger of defaulting on SLA's resulting in reputational damage. Possible Negligible Low Unlikely Minor Low Possible Negligible Low IT.WSD.07_Service_Order_Scheduling_and_Field_Tool_Replacement_V1.0.docx 5 P age

Section 2 (Gated Investment Step 2) 5. Preferred option The preferred option is to source and replace the service order scheduling and field tool with an alternate vendor product. This option has been selected because it best matches the investment need whilst: Minimising the cost. Minimising the negative business impacts and maximising the positive business impacts. Maximising the strategic alignment. Maximising the IT strategic alignment 1. Minimising the project complexity. Minimising the risk to the organisation. 5.1 Scope The scope is to source and replace the service order scheduling and field tool with an alternate vendor product. The new solution will be required to interface with other applications such as SOM, and have a high-degree of configurability with regard to Service Order templates, workflows, resource management and scheduling. High level implementation activities The following high level activities have been identified: Elicitation of requirements to replace the service order scheduling and field tool, and drafting of requirement documents sufficient for a RFI/RFQ process. Conduct RFI/RFP process, including solution evaluation and selection Review of As Is business process in-context of new product capability and reengineering of the To Be process if necessary. 1 This is a test against criteria including: Solutions will leverage the expertise and conformity of vendor products designed for NEM market interfaces. Solutions are designed for TasNetworks work practices and work processes to be as efficient and effective as possible without compromise. Solutions are maintainable and supported. Solutions are fit for purpose. Alignment with current IT infrastructure. Alignment with other IT roadmap initiatives. IT.WSD.07_Service_Order_Scheduling_and_Field_Tool_Replacement_V1.0.docx 7 P age

Customer s perspective Employees will feel more valued. Inefficiencies would be reduced. Reduced reliance of working outside of systems and processes Reduces the reliance on existing trained resources who understand defects and workarounds. Enables our people to deliver value. Adds value to our assets by enabling reliable services. With the implementation of this initiative, there will be no increased risk of defaulting on SLA s and therefore fines ( Do Nothing risks IT-074 mitigated). As part of this initiative it is also the intention to target the following issues identified from the TasNetworks application health check conducted in early 2015 2 : o [BHA15] The current support contract with the vendor is inadequate, and does not provide incentives to provide adequate level of support. o [BHA87] functionality. - There are numerous issues with the current o [BHA89] - There are numerous issues with the current functionality. The selected tool will optimise customer driven work (i.e. connection requests, readings, meter tests etc.) TasNetworks will maintain its valuable relationships with retailers and customers where TasNetworks can be trusted to deliver. With the implementation of this initiative there will not be an increased likelihood of reputational damage ( Do Nothing risks IT-074 mitigated). With the implementation of this initiative there will be a decreased risk of customers without power or services as a result of field tool failure ( Do Nothing risks IT-063 mitigated). N/A 5.3 Regulatory Test 6. Options Analysis Three options have been considered as described in the following chapter: 2 As sourced from 'Distribution Determination 17 - Issue Register.XSLX'. IT.WSD.07_Service_Order_Scheduling_and_Field_Tool_Replacement_V1.0.docx 9 P age

6.6.4 Assumptions ITA-048 ITA-049 It is assumed that the requirements for service order scheduling and field tool replacement will also be captured as part of capturing requirements for replacement under the umbrella of the project. It is assumed that via the implementation, a product will be selected to fulfil both the and service order scheduling and field tool replacement needs. It is assumed that replacement hardware and ongoing software licencing will be covered by but the implementation costs for the service order scheduling and field tool will be part of this initiative. Vendor costs for service order scheduling and field tool replacement will be in the order of (no vendor quotes could be received in the timeframe for DD17) ITA-050 It is assumed that service order scheduling and field tool will not be replaced before the project commences, and it is unlikely we could conduct a replacement durin and so is scheduled for after ompletes. ITA-059 Reverting back to a paper-based Service Order process for the field staff would result in an estimated minimum of required to handle: - The preparation of paper work packs - The manual entry of completed work packs - Follow up of bad data capture - Job tracking ITA-060 ITA-061 ITA-062 ITA-064 ITA-094 ITA-095 ITA-096 Reverting back to a paper-based Service Order process for the field staff would result in an increase in the number of field FTE resources required due to: - Delays in executing jobs - Needing to revisit sites to recapture data - Lack of efficiencies in data capture - Manual Scheduling This is estimated to be Reverting back to a paper-based Service Order process for the field staff would result in savings of in software licence and support costs. Reverting back to a paper-based Service Order process for the field staff would result in an increase in GSD Payments made to customers due to not meeting delivery timeframes. We have assumed a increase to the current Replacing the service order scheduling and field tool with a more contemporary product will have no impact on the licence and support costs that we currently pay. It is assumed that if the processes currently in TVD CSC were paper-based, 1% of the 7000 deenergisation undertaken per annum would be make incorrectly, i.e. the wrong premise gets deenergised, resulting in fines of Replacing the service order scheduling and field tool with a more contemporary application will reduce the likelihood that the process will have to revert to a paper-based process. In the first year of implementation, the 20% risk of having to revert to paper is mitigated increasing by 10% annually (based on subjective experience). This is represented as a benefit Replacing the service order scheduling and field tool with a more contemporary application may reduce the volume of GSD payments made each year by having a more reliable and efficient systems and processes. This is assumed to be about per annum. IT.WSD.07_Service_Order_Scheduling_and_Field_Tool_Replacement_V1.0.docx 18 P age