BT for Utilities. Becoming an information-enabled business

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1 BT for Utilities Becoming an information-enabled business

2 Change in numbers 53% expected energy consumption growth by 2035 What it means You need a scalable and secure networked communications platform to help your business adapt and make the most of rapid and dramatic change. 2

3 Turning rapid change into intelligent transformation Legislation, regulation, competition, public opinion, political pressure, environmental concerns, consumer engagement and trust... for utilities, change is business as usual. Utility companies currently operate in one of the most complex, high profile, regulated and politically charged sectors. But even by these standards, the next decade is set to be the most testing yet. A raft of new legislation, market reforms and emerging technologies are set to dramatically alter the landscape and impact existing business models. And that s on top of ongoing challenges such as employee demographics, ageing infrastructures, regulatory requirements and growing consumer expectations. So what s the good news? Well, in among all this change there are massive opportunities. Utilities will be one of the fastest developing sectors in the next 20 years. But success isn t guaranteed. We believe that the most connected and engaged companies will dominate while others fall behind. Why? Because intelligent connections enable you to operate more efficiently, get to market faster and build stronger bonds with your customers. So how do you make the right connections? That s where we come in. We re networked IT experts. We ve been through a similar process so we understand the challenges involved in successfully transforming a complex service provider. Working together, we can help you: increase revenues by engaging better with employees, customers and suppliers improve asset management, operational resilience and business agility build operational efficiency and cut capital investment We ll cut a clear transition path to the digitally-connected utility business of the future by delivering innovative, integrated communications solutions in a secure, reliable and predictable way. 3

4 Making the most of the opportunities now... and in the future Over the next ten years, the marketplace will be transformed by two key drivers: 1 regulation to mandate unprecedented infrastructure development 2 increased competition and much greater market liberalisation This will have a huge knock-on effect in terms of the way utilities approach achieving a competitive advantage with a renewed push to ensure enhanced asset performance, workforce communication and consumer engagement. Whatever area you re in, you ll need to find ways to: improve customer relationships Price rises may be beyond your control but engaging with customers to highlight the value of the service isn t. People are more informed than ever and want to be in control. increase efficiency The Holy Grail of almost every business is to achieve more while spending less. And it s not impossible but traditional ways of working and inflexible business models will have to be tackled. deal with a changing landscape Regulatory and political change is not a new challenge for utilities but it s the pace of change that s frightening. The effects of this are difficult to predict but one thing is certain those that can react quickest will emerge ahead of the pack. balance supply and demand As supplies become more difficult to access and demand shoots up, this balancing act becomes trickier. Factor-in an increased mix of renewables and huge increases in self-generation and traditional business models will start to show signs of weakness. invest in new technologies The pressure is on to transform to a low carbon environment and next generation technologies can help with this. At the same time, new information and communications technologies can help transform business performance. These challenges won t be met by traditional ways of working and out of date technology. Successfully navigating the utility landscape of the future means biting the bullet and transforming the business. Starting now. The most successful global organisations are enabled by digital connections and driven by the intelligent use of data. And we can help you harness the power of both. 4

5 BT offered us a solution, not a product. It demonstrated how it had used the technology itself, and how it had helped other companies too. This was to be a high profile project affecting the majority of our people and we had the confidence BT had the vision and capability to ensure that the project would be a success. David Garrett, Field Technology Sub-Programme Manager Northumbrian Water Limited Change in numbers 40% of the UK s electricity will come from low-carbon sources by 2020 What it means New and geographically dispersed sources of low carbon generation will require the latest monitoring technologies to ensure optimum performance. 5

6 The connection between information and action Data is set to become your most valuable resource. It will highlight what is working, what needs improving and what has to change. The key challenge is to securely collect, store and use data to make intelligent, high quality business decisions and for that, you need to be connected Harness the power of your data with a future-ready platform Underpinning the information-enabled organisation is the network. This is what connects everyone and everything along your supply chain and wider ecosystem and it s critical in capturing, distributing and analysing the information necessary to manage your business. We ll equip you with a future-ready platform that will help deliver enhanced, loyalty-driving customer experiences; at the same time, we ll get your company ready to exploit the potential of big data to support better-informed real-time operational decisions. And we ll do all of this while ensuring the highest possible levels of security and reliability, enabling you to focus on driving the business forward. How digital connections can improve your business An information-aware business will: Operate a diverse asset portfolio more efficiently by monitoring to ensure optimal performance Use operational data to determine load constraints in the network, understand grid conditions, reduce damage, predict problems and be able to respond quickly Communicate more effectively among colleagues and with partners and suppliers improve customer service and consumer engagement to become a trusted long-term supplier Information is nothing, without understanding data ensure the right data is available to the right people at the right time and place at the lowest possible cost analytics understand the reporting requirements and develop the tools needed to highlight the insights which will optimise business performance transformation provide a step-by-step long-term solution which places information at the centre of strategic thinking and day-to-day operational practices 6

7 Change in numbers 50 million smart meters to be installed in homes across the UK What it means Put your customers at the heart of your business with networked IT services that can reliably and securely collect, store and transmit an overwhelming volume of data to help continually improve their energy and water use. 7

8 The benefits of becoming a digitally-connected information-enabled business Our network is the backbone and enabler for a whole host of managed services that can be added or integrated as needed Monitor people, places and machines to ensure security, safety and operational excellence Protect physical and digital critical assets and infrastructure Improve the productivity and cost effectiveness of managing a dispersed and mobile workforce and fleet Keep on top of potential infrastructure problems with cutting-edge monitoring technology Track and trace every item in your supply chain MORE EFFICIENT PROCESSES Better connected Get access to operational data at any time and connect to people all across the globe Be easy to deal with Give customers more control of their service Engage customers and suppliers through new media and technologies Serve customers better using smart routing to expert advisors Use improved data analytics to drive efficiency, cut costs and boost sales ENHANCED CUSTOMER ENGAGEMENT 8 The BT network provides a fully managed, highly secure, resilient, robust and integrated platform...

9 BT NETWORK Production Transmission & storage Powered by data Massive amounts of data will be generated from smart devices, enabling you to analyse and make informed decisions on business activities Distribution Sales & service INCREASED AGILITY Empower people to work more productively wherever they are Collaborate easily with dispersed teams and remote experts around the world Share desktops, video call and work with large data sets in real time Get real-time visibility of people within operating environments MORE EFFECTIVE COLLABORATION Use improved information to react quickly and easily to new modes of supply and the changing energy mix Automate processes where possible and free people to add value and drive efficiency Meet new regulations and compliance standards more easily and cost-effectively Transform your infrastructure to succeed in a data-driven future...to connect everyone in your value chain and ecosystem helping you to create a better business 9

10 It is already apparent that the combination of technology, process rationalisation, and the greater visibility of jobs and the fleet are having a remarkable impact on our efficiency and effectiveness. Brian Olley, Work Management Programme Manager, Northumbrian Water Limited 10

11 Supporting utilities across the globe Once a UK utility company ourselves, BT is now a networked IT services business that operates globally and delivers locally. We support utility companies worldwide, including helping: cut the mobility costs of international energy giant Areva by 45% support managed networks in 50 countries for FCC, one of the world s largest public utilities companies provide a customer contact centre solution for Australian power distributor, Western Power, integrated with its network operations control centre several of the larger UK water companies, including Northumbrian Water and Scottish Water. Change in numbers 35% increase in water demand by 2050 due to population growth What it means With every aspect of your operation under increasing pressure to deliver more, the more connected your business is, the better its performance will be. 11

12 We deliver best in class solutions... From flexible cloud contact centres to intelligent fleet management tools, we can put together a whole raft of integrated, agile solutions to help give your business the edge as we already do for some of the world s most successful organisations. BT CLOUD CONTACT Our contact centre technology helps bring Tesco closer to its customers Tesco, one of the world s largest retailers, is using the BT Cloud Contact solution to give its UK customers an enhanced, more flexible and more responsive contact centre service. And as the solution can be quickly scaled up and down to meet the peaks and troughs of retail trading, Tesco will only ever pay for the resources it needs at any given time. Customer service is central to everything we do. We want to make shopping at Tesco simpler and more convenient for our customers, so BT s great new cloud solution will help us to do that. Mike McNamara, CIO, Tesco BT GLOBAL TRACE Improving customer service and optimising reverse logistics for TNT Ericsson s logistics partner TNT delivers essential supplies to field engineers across the UK, as well as processing parts for returns or repairs. But with key information held in different formats and systems it was hard to get a single, clear view of performance. Our new cloud-based capability, BT Global Trace, brings together information from different systems to give total visibility of events, from the moment the order is placed until it is delivered to the engineer. With all supply chain data in one place, we have much more accurate and timely reporting. Previously, when the information was fragmented, it could take us up to half a day to compile certain reports for the customer. Steve Brown, Divisional General Manager, TNT Special Services 12

13 and we practise what we preach The services and solutions we provide for our customers are used by BT. Over the last decade we ve transformed the way we work. And we can use what we ve learned to help improve your business performance. BT Field Force Automation Mobile workforce transformation empowers employees, reduces cost and improves customer service With deregulation triggering dramatic changes in our marketplace, we knew we had to transform the way we managed our field engineers. Now, over 80 per cent of all work is automatically scheduled and allocated. As a result we need just seven job allocation centres compared to over 100 before, we re operating with 30 per cent fewer field managers and 60 per cent fewer job controllers. Field Force Automation is all about people and process. The software and the hardware are the relatively easy bits. Paul Cleaver, General Manager, Field Force Automation, BT Global Services BT One Voice Mobile Access Business globe-trotters stay in touch but keep mobile call costs low Every day thousands of BT Global Services people are out on business worldwide. They need to speak to customers and to each other worldwide too. That added up to a giant mobile call bill every month. We wanted to cut down on costs but not on mobile use and we found our answer close to home with BT One Voice Mobile Access which helped shrink the bill by 30 to 50 per cent as a result. BT One Voice Mobile Access enables the international part of a call to be routed over our network at significantly cheaper rates than those of an external mobile provider. Hugo Eales, CFO, BT Global Services 13

14 BT offered us not only technical expertise but business understanding. It showed us how we could optimise results by using its people s experience in different areas of implementation, particularly change management. Csaba Mezö, Technical Director, E.ON Hungary Change in numbers 200% increase in offshore wind capacity required by 2020 What it means To successfully install, run and maintain new and diverse forms of generation, you will need people, machines and systems collaborating effectively at every level. 14

15 Why BT? BT has experienced a similar level of market transformation. We also operate in a similar ecosystem, managing complex assets, networks, supply chains, consumers and businesses. More importantly, we know how to compete and win in highly competitive markets. This experience permeates everything we do. The people who led our transformation programme have survived to tell the tale and they ll be on hand to help you navigate to where you need to be, while making the most of what you ve already got. 1. We re technology innovators BT is one of the largest technology investors in the UK, innovating with customers, partners and universities. We ve spent more than 4bn on R&D over the last five years and we ll share the fruits of that investment with you. So whether it s fibre sensing to secure remote pipelines or smarter ways to share huge data sets in the cloud, you ll be leading the way. 3. We re focused on the future By bringing together and rationalising the disparate IT systems you need and rely upon, we can lower your CAPEX and operational costs and provide a platform for innovation. And this is not about realising a one-off cost reduction that relieves the pressure in the short-term. We aim to create a flexible platform of managed services that will scale and adapt to new demands a platform to help reap the benefits of working smarter and capitalise on new opportunities, both now and in the long-term. 2. Sustainable transformation is at the heart of our business Being a responsible and sustainable business leader is one of BT s six strategic priorities to grow the value of our business. We have reduced carbon emissions in the UK by 81% since 1997, well ahead of our target to achieve an 80% reduction in We ll work with you to drive down the on-going costs of your IT and put it on a scalable and sustainable footing. 4. We can make the digital vision a reality We ve vast expertise in implementing complex operational change programmes using IT. So you ll have a strategic partner who can actually deliver on its promises. Our teams are recognised by industry analysts as being world-class and will deliver commercially creative, transformational value to continually drive business benefits. We have the scope, scale and expertise to support even the most complex international organisations with the resources on the ground to deliver a consistently excellent service locally, almost anywhere in the world. 15

16 For more information contact your BT account manager or visit Offices worldwide The telecommunications services described in this publication are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc s respective standard conditions of contract. Nothing in this publication forms any part of any contract. British Telecommunications plc 2014 Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No: Designed by Westhill.co.uk Printed in England PHME 69617

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