SAP Implementation Update. Presented by: Dan Chapman Alex Ahkoon Courtney Zinn Helena Foulds

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Jocelyn Jones
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1 SAP Implementation Update Presented by: Dan Chapman Alex Ahkoon Courtney Zinn Helena Foulds

2 Background A $19.9 million project approved by council in The largest software implementation in the city s history. The new application bills 83,000 utility accounts and 75,000 property tax accounts generating half a billion dollars of revenue per year. The new SAP Customer Relationship and Billing system successfully launched on April 4, 2016.

3 Important Dates April 4, 2016 The new SAP Customer Relationship and Billing system was successfully implemented. May 6, 2016 The SAP CR&B project officially closed. October 2016 The new Tax and Utility e Billing portal will be available to customers. February 2017 The extended SAP support period ends.

4 Project Scope The scope of SAP CR&B was extremely complex because Kitchener is the only city in Ontario that manages property tax, water, sewer, stormwater, natural gas and water heaters through one platform. 150 Number of project team members, including city staff and Capgemini resources 200, ,000+ Total number of hours committed to the project from Capgemini and the city s core project team Total number of pages of documentation delivered over 18 months for 1,300 project requirements 8,000+ Total number of test cases completed before go live on April 4, Number of training sessions with over 500 attendees completed before April 4, 2016

5 Challenges & Lessons Learned Challenges Limited staff resources Aggressive timelines Extended go live date due to project complexity Lessons Learned Reprioritization of system requirements and project tasks to meet targets Importance of support and governance models for end users

6 Despite the challenges

7 Key Accomplishments 366,210 76,230 Total number of utility invoices (five billing cycles) Total number of property tax invoices (one residential and one non residential cycle) 9,140 Total number of move in transactions* 8,477 Total number of move out transactions* 0 Number of negative media stories/coverage 0 Number of major customer issues and complaints

8 Budget The project was completed within the allocated budget of $19.9 million. As planned, the SAP capital account is anticipated to be in a deficit position of $910,775 at the end of The capital account will return to a surplus position by 2019.

9 Revenue Generating Partnership City of Kitchener will generate revenue from future sales of the Municipal Property Tax (MPT) solution. Kitchener is the first city in Ontario to implement SAP CR&B for both property tax and utility billing. The customized property tax solution was a collaborative effort between Capgemini and the city. The City of Kitchener will be compensated for intellectual property rights related to the MPT solution.

10 Tax & Utility e Billing Service Coming in October 2016 The Tax & Utility e Billing service offers benefits to customers and the city: Customers Online bill presentment 24 7 access alerts when bills are ready to view Utility consumption tracker Online customer service support Archived bills Access to energy conservation tips, rate information and tax due dates City of Kitchener Cost savings on postage and materials Improved customer experience with online tools and self service options Opportunity to expand e services and integrate into future single sign on platform.

11 Postage Costs The City of Kitchener distributes approximately 1.1 million property tax and utility bills per year. Total # of paper bills delivered/year 900,000 utility bills 137,000 property tax bills Bill delivery costs per year $1,002,889 Total # of epost bills delivered/year 102,000 utility bills 12,600 property tax bills *Numbers are approximate

12 E Billing Conversion Targets Account Type 12 months October 2017 Target Conversion Rate # of accounts Cost Savings Account Type Target Conversion Rate 24 months 2018 # of accounts Cost Savings Property Tax 1% 647 $1,250 Utilities 3% 2,220 $25,760 $27,010 Property Tax 7% 3,882 $7,508 Utilities 10% 7,400 $85,870 $93, months 2019 Account Type Target Conversion Rate # of accounts Cost Savings Property Tax 10% 5,176 $10,352 Utilities 15% 11,100 $128,805 $139,157 Union Gas launched e billing in 2008 and achieved a seven per cent conversion rate in two years. They reached 30 per cent conversion over an eight year period. Adoption increased approximately four per cent each year. Cambridge Hydro achieved a three per cent conversion rate in eight months and continued to grow at a steady rate to 15 per cent over 20 months.

13 Marketing Campaign A comprehensive marketing campaign is scheduled for fall 2016 to promote e billing. The campaign will include: Media outreach City of Kitchener social media channels Customer incentives and contests Traditional and online advertising Word of mouth promotion City of Kitchener e billing champions including Councillors and staff

14 Epost Phase Out The City of Kitchener plans to end epost services in December A secondary marketing campaign is planned for 2017 to encourage customers to register for Tax & Utility e Billing. Once epost services end, the city aims to convert 75 per cent of epost accounts to offset costs of paper billing.

15 Looking Forward Future plans to enhance functionality of the e billing service include: Mobile responsiveness reminders about bill due dates and late payments The Tax and Utility e Billing service is one of several digital services the city hopes to integrate into a future single sign on platform.