rethinking the managed service landscape for optimized energy and utility operations Your business technologists. Powering progress
Changes in the regulatory, commercial and sustainability landscape compel energy and utility companies to establish and sustain operational excellence in everything they do. In this pursuit of excellence, the ability to master real-time information from the rig and the smart meter right through to the executive dashboard becomes a critical differentiator and that means taking a fresh look at what you expect from managed IT services. It is no longer enough for IT procurement simply to push for year-on-year cost reduction. New Perspectives Right across the energy and utility sectors, people are experiencing massive and disruptive change. The way in which we produce, manage, market and consume natural resources is in a state of barely controlled revolution, with deregulation and sustainability particularly strong influences. In this climate, is it time to reconsider the wider potential contribution of managed IT services? Right now, the world of energy and utilities is filled with innovation and drama. The nature of change is highly visible and has a direct and tangible effect on people s lives. The examples are everywhere: Post-Fukushima attitudes to nuclear are polarized with some nations increasing adoption and others ceasing entirely. Wind and wave farms not to mention ubiquitous solar panels have become a constant and visible reminder of the reality of renewables. We no longer see electric vehicles as a novelty - when every time we refuel, a tank of petrol costs as much as a weekly family shop. Extreme weather patterns coupled with decaying infrastructure can lead to the barely believable reality of drought and flood being declared simultaneously. Fuel poverty becomes a major political issue as society s most vulnerable citizens can struggle to keep warm in the winter months. And as smart metering gathers momentum, we ll have a box in every home which fundamentally changes the relationship between provider and consumer. The list goes on. All through the year, the energy and utility sectors are front page news. Meanwhile in the background, the continuous and largely unnoticed provision of essential IT services carries on; local and global contracts are renewed or put out to tender; budgets are defined and goals for cost-reduction set; new trends and technologies are assessed for business opportunity and impact. Atos knows how it goes. But when you provide multiple services to energy and utility companies around the world, as Atos does, it is important to be able to focus on the detail without losing sight of the big picture. That s why we want to take this opportunity to pause - to zoom out, and ask: How could the sum of all managed IT services contribute to sustained success in the face of constant and dramatic change? 2 3
Why re-evaluate managed IT services and why now? Reliance on effective information management penetrates every aspect of operations in energy and utilities. Information flow must mirror the flows of oil and gas from wells and rigs to tankers, through pipelines, refineries and on to consumers; it must mirror electricity flows from generation through to consumption; and water from processing to use. The constant flow of information is just as much an asset as the resources it tracks and must reveal the constantly changing state of production, usage and commercial performance. It is the quality and currency of information which ensures that operational and commercial decisions are given the best chance of success. In itself, this is nothing new. But what is new, are the ways in which people are able to use information and the ways in which every device and every action are able to contribute to a constantly moving portrait of your business. Today, every worker becomes an information worker, and as a result, IT must deliver where and how people need it to No limits: No matter how extreme the physical conditions, access to information and support must be always on at sea, on land, under arctic, desert or tropical conditions. Actual tracking: In urban field operations such as meter installation, with multiple sub-contractors, task allocation must be easily coordinated and job status clear and transparent. Location independence: Computing and storage resource needs to be effectively shared beyond divisions and often across the extended enterprise. Increased mobility: As in every sector, freer and more flexible working practice is replacing the desk for life of administrative and support workers. Personal preference: When the majority of the workforce are used to smart-phones and anytime access in their personal lives, they expect to make the same choices about access and support in their working lives. Not just People This ability to access and exploit real-time information does not only impact the way in which people work. The massive rise in machine-to-machine data exchange changes the way in which physical resources are managed and coordinated. Right across the energy and utility sectors, the volumes of data generated by specialist devices continue to increase dramatically. Here are just a few examples: With the emergence of smart grid, millions of domestic generation devices begin to feed back into the grid Sensors on drilling devices can provide unlimited real-time performance and temperature status Assets can report on their own availability and service history, aiding resource coordination and helping minimize risk of parts failure Perhaps the most significant implication of the massive increase in machine-to-machine data lies in the improved quality of decision-making: effective and immediate analysis of new data from the field, cross-matched with existing knowledge maximizes the chance of success. Increases and Implications This continual increase in both inter-personal and machine-to-machine traffic has massive implications for IT management within energy and utilities and these go to the heart of any overall review of approaches to managed IT services. In our discussions with the CIO and procurement teams of our energy and utility clients, we regularly identify three main areas of shift. What? Ownership Freedom of choice Agility Differences and Similarities Energy and utility companies are not the same, and Atos has teams specializing in upstream and downstream oil and gas, in nuclear and smart grid management, and in the delivery of water and waste services. Despite the clear differences across these sub-sectors, there are numerous shared values and challenges which set energy and utility companies apart from their peers in other sectors, and which are distinct from the ongoing pursuit of operational efficiency and continuous cost-reduction. Safety All energy and utility companies must maintain a constant and uncompromising attitude to safety. This is true in other sectors, but for energy and utility companies it is acute and absolute for both workforce and customers. Time frames Infrastructure projects in both energy and utilities must result in resources that will perform effectively over 30 and even 50 year life spans, making continuity critical for all. Shift from Energy and utility companies were strongly committed to owning both resource and expertise and needed to carry significant IT capital investment costs as a result. The enterprise made the rules and delivered the services. Employees used a company box and relied on a prescribed company support structure. Consistency was more important than satisfaction or choice. Energy and utility companies can struggle with agility. The scale of operations and the need to follow tight security and governance practices can frustrate the need for speed. Contracts were fixed term, fixed price and less than flexible. Sustainability Again, while every business must be visibly committed to sustainability, the energy and utility companies are the ultimate guardians. With the increased emphasis on renewables, the boundaries between sub-sectors are blurring. Investments The operational costs in energy and utilities are staggering. Often operating on a global scale, single infrastructure projects can cost more than the national budget of many smaller countries. Shift to Virtualized delivery changes the nature of ownership. Cloud delivery is still in its early stages, but promises to redraw the IT asset map in energy and utilities as long as it can meet regulatory and compliance obligations. Right across the energy and utility sectors, employees expect the same quality of experience they have become used to in their private lives. Rapid access to services, choice of support with self-service in the lead, and bringyour-own-device all feature prominently. It must be possible to try new ideas. Consistency remains essential, but today the emphasis must be on the ability to identify and exploit best practice with speed and agility, right across the enterprise. Commercial and contract terms too need be rapidly adaptive to changing circumstances. 4 5
Atos managed services in energy and utilities Oil and gas has always been global, and utilities are rapidly becoming so. The quality of communications between virtual teams becomes as critical for the board as it does for the roughneck. Atos delivers full unified communications, putting multi-party video conferencing and active collaboration one click away. We manage all the background infrastructure requirements too. CRM and Billing Deregulation means treating people like customers not numbers. Winning loyalty programs and clear and transparent billing become business priorities. Atos specialized hi-tech transaction services offer fully outsourced CRM and billing, on any scale and across any geography. Application Management and Operation When you select Atos as a partner, we design and deliver services to fit your culture and your operational standards. Your service landscape is not static as practices and opportunities change, so too do your service requirements: you may, for example, give us responsibility for managing your own data-centers today while considering migration to ours tomorrow. Many energy and utility companies need to manage thousands of heritage applications, while rapidly bringing new business applications into service. Atos will rationalize the current application register handling migration for a cloudbased future if desired and monitoring all application usage and performance. This is a snapshot not an encyclopedia it simply illustrates a selection of focus areas in which Atos managed IT services are enabling our clients in the energy and utility sectors to do better business. Managed Security Services Physical and cyber security must go hand in hand, and must be continually monitored and updated. Managed security from Atos is end-to-end, covering everything from bio-metrics to malware attacks. Test and Development Adaptive workplace services Energy and utility companies rely on a vast array of technical, scientific and business skills different people need different tools and different support mechanisms. The Atos Adaptive Workplace is strictly profile-based. Cloud-based and pay-peruse services deliver instantly in the most extreme environments, with bring-yourown an important option for contractors. Unified communications Archival and Content Management Documentation must be secure, accessible and consistent from every authorized request point. Enterprise Content Management is a core capability for Atos, with an increasing emphasis on rich media. Your data center Business support centers The rationalization of heritage applications and the development of new ones are continuous but the demand for speed cannot compromise quality. Instantly available cloud test and development environments eliminate the capital cost and lengthy set-up times for software engineering teams. The IT support desk is becoming history. Employees, partners and clients want full business support on process and practice, with up-to-theminute personal information on hand. Smart shared support centers from Atos combine self-service and agent-assisted delivery for extended business support. Transaction management Every transaction is an opportunity to build client loyalty at the pump,re-charge point or convenience store. As Europe s leading provider of transaction services, Atos can take end-to-end responsibility for managing payment and loyalty cards. Mobile data centers Instant data center availability with zero onsite management can be a game changer. Atos has deployed over 300 data center in a box solutions self-sufficient under any conditions and fully managed remotely. Data Center Management and Consolidation Atos can rationalize and manage all data centers for optimal environmental and business performance, coordinating our resources with your own to best effect. Greening your data centers to drive out cost and increase performance. Strong emphasis on shared service where appropriate. Geographical information systems The better you know the precise location and status of every asset, the better you are able to manage maintenance and resource planning. Atos is expert in GPS mapping and smart mobility by making data contextual according to time and location significantly increases asset value. Network monitoring and management When everything is networked, network performance and availability become business critical. Partnering with the world s leading network and telecommunications players, Atos network specialists manage the full spectrum of network requirement. 6 Managed business support services Every energy and utility company needs to manage business and commercial administration with clinical efficiency. As one of the world s leading SAP practices, Atos provides agile, efficient and costeffective managed business services. Big data and real-time intelligence You need to turn millions of commercial and operational data feeds into actionable real-time intelligence. Experts in Oracle Exadata, Atos will reveal trends faster and with greater agility than has been possible until now. Cloud-based business services Managing extended networks of sub-contractors must be seamless, efficient and highly cost-effective. Atos delivers numerous business services via the cloud. Extended project management services, for example, are scalable and quick to adopt for all. 7
Our resources are your resources Atos is in a distinct position as a provider of managed IT services to our clients in the energy and utility sectors. This is thanks to our dual focus on the specific needs of the oil, gas, electricity and water industries, on the one hand, and our innovative focus on IT service delivery on the other. Single digit savings just don t hit the target any more energy and utility companies are asking how they can slash 20-30% off IT management costs and radically improve agility and quality of service. When it comes to the actual delivery of managed services for energy and utilities, Atos capabilities fall into two broad categories: Industry-specific managed services Atos delivers numerous industry-specific managed services to its energy and utility clients. These include specialized application management for nuclear control systems and integrated pipeline management for the gas industry. Foundation managed services The Atos managed service portfolio is broad in scope, spanning advanced workplace provision on the one hand, to full application operations on the other. Introducing Atos Worldgrid Atos established its dedicated Worldgrid business unit in July 2010, concentrating its specialist energy and utility expertise in a focused global team. Over 1,600 specialists are helping oil and gas, power and water companies lead the way with IT. Many team members have been directly recruited from the sectors we serve, and all have hands-on experience in making IT deliver business value in energy and utilities. End-to-end intelligence from real-time data smart from the meter to the CEO dashboard Bridging the gap between industrial control and business systems Global reach with centers of excellence in Europe, China, India and Latin America Building on over 30 years highly specialized industry expertise Respected client portfolio including A2A, BP, CPFL Energia, EDF, EPZ, Fortia, Gasterra, Gasunie,, RAG, Repsol, Total and Veolia. The Atos Managed Services Powerhouse Atos is the #1 European and the #7 worldwide in managed IT services. Of our 74,000 strong global workforce, 30,000 are managed service specialists, contributing almost 50% of our 8.5 billion annual revenues. Many of our clients in the energy and utility sectors are amongst the best known global brands, and our own global footprint means we can provide the services wherever you require them. Automation and international collaboration are increasingly the differentiating characteristics of all smart service delivery, and Atos itself uses a robust and responsive global delivery model. Many of our application development and management services for example, are delivered through specialist teams in India, speeding delivery and reducing cost. Every energy and utility company relies on complex networks of specialist suppliers, and Atos is accustomed to taking responsibility for complex and highly articulated service contracts.. In addition to demanding innovation and sustained quality in all managed service delivery, our energy and utility clients naturally seek aggressive pricing too. The real costbenefits occur when organizations are prepared to consider new approaches, rather than simply shaving costs off current practice. With the Atos Adaptive Workplace, for example, clients are regularly cutting communications cost by 40% and more. 8 9
Greening IT Energy and utility companies are in the absolute vanguard of sustainability. We can only meet the EU 20:20:20 targets for cutting emissions, moving to renewables and reducing primary energy use with your help. Atos is committed to helping you green IT to making sure that your own reliance on IT has the minimal environmental impact. We are already pushing the boundaries here: in Finland for example, we are using excess heat from data centers to feed directly into local community housing. With our managed service portfolio, we are not just reducing power consumption through data center rationalization and increased use of virtualization. We are also delivering the technologies your people need to reduce their own environmental impact: unified communications, for example, mean reducing real estate while smart mobility cuts down on fuel through smart job scheduling. Sit down Zoom Out Atos is keen to take time out with you to reflect on the big picture. We fully appreciate that all our customers in the energy and utility sectors will continue to require specific proposals for specific challenges and here, it s business as usual. We will continue to respond pro-actively to these requests, suggesting ways to achieve your goals based on our own experience and best practice. But in addition, why not take time to reflect on the bigger picture? Changes in business practice and in the mode of service delivery are radically changing the service landscape. Cloud and virtualization, for example, impact not just the means your people use to access the specialist applications they need to perform, but also the processes by which those applications are developed and managed. At the same time, the massive increases in data traffic resulting from always on person-to-person and machine-to-machine communication mean that how you manage all storage, computing and networking strategies come under similar review. We re not saying change everything but we do believe there is so much to be gained from taking time to think about the bigger picture together. rethinking the managed service landscape for optimized energy and utility operations Your business technologists: Powering progress. 10 11
About Atos Atos is an international information technology services company with annual 2011 pro forma revenue of EUR 8.5 billion and 74,000 employees in 48 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transport; Financial Services; Telecoms, Media & Technology; Energy & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic and Paralympic Games and is quoted on the Paris Eurolist Market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Atos Worldline and Atos Worldgrid. For more information: Please contact marketing@atos.net or visit atos.net atos.net Atos, the Atos logo, Atos Consulting & Technology Services, Atos Worldline, Atos Sphere, Atos Cloud, Atos Healthcare (in the UK) and Atos Worldgrid are registered trademarks of Atos SA. June 2011 2011 Atos.