How is technology changing the water utility industry? SC Rural Water Conference Sept. 14-16, 2015 2014 Badger Meter, Inc.
Today s Learning Objectives Expose you to new technologies that are available to help improve your utility operations Discover how to effectively integrate these innovative technologies into your utility management 2014 Badger Meter, Inc. 2
Presentation Agenda Cloud Computing IaaS Infrastructure as a Service PaaS Platform as a Service SaaS Software as a Service AMA Advanced Metering Analytics Enhanced Customer Service Infrastructure-Free AMI Fixed Networks Questions / Answers TIPS Trends, Implications, Problems, & Solutions 2014 Badger Meter, Inc. 3
Trends A general direction in which something is developing or changing. Implications Presentation Approach - TIPS Trends, Implications, Problems, & Solutions A likely consequence of something. Problems A matter or situation regarded as unwelcome or harmful and needing to be dealt with and overcome. Solutions A means of solving a problem or dealing with a difficult situation Products or services designed to meet a particular need Technology is our friend embrace it. 2014 Badger Meter, Inc. 4
Cloud Computing How is technology changing the water utility industry? 2014 Badger Meter, Inc.
Public Perception of The Cloud 2014 Badger Meter, Inc. 6
Trend Cloud Computing Cloud computing is the future of information technology In computer networking, cloud computing is a phrase used to describe a variety of computing concepts that involve a large number of computers connected through a communication network such as the Internet. It is very similar to the concept of utility computing (supplying computer or software remotely.) Cloud security continues to be a concern, but reputable companies offer state-of-the art security platforms Cloud computing providers offer their services according to one of the following models: IaaS, PaaS, and SaaS. 2014 Badger Meter, Inc. 7
Trend IaaS PaaS - SaaS Managed by: Utility Vendor Traditional ON- Premises Infrastructure as a Service Platform as a Service Software as a Service Applications Applications Applications Applications Data Data Data Data Operating System Operating System Operating System Operating System Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking 8
Implications of Cloud Computing SaaS Implications Lower initial cash outlay Updates and upgrades (new features and functionality) are provided continually by vendor and not done by IT staff Software is accessible anywhere, not just within utility (mobile computers / smart phones / tablets) Utility needs to understand service contracts and service levels IaaS Implications Easily scale server storage and processing power Pay for only what is used / needed today / can grow with you Decrease in IT support PaaS Implications Similar to IaaS but with even less IT support because operating system or processing programs are provided and managed 2014 Badger Meter, Inc. 9
Problems facing Water Utilities Lack of IT Support for: Specifying, purchasing, installing and maintaining necessary AMI servers Increasing complications of IT as it relates to meter reading According to a Microsoft study, IT professionals spend 89% of their time managing other applications and not managing their own infrastructure Continual updates and upgrades needed for meter reading software and operating systems in order to have the latest functionality Keeping consumer information secure Need to buy full deployment hardware, even if not needed for a number of years Server hardware may be out of date before its fully needed Source: Estimating the Speed of Exponential Technological Advancement by The Emerging Future Group, LLC 2012 2014 Badger Meter, Inc. 10
Cloud Computing Solutions AMI manufacturers are providing SaaS solutions for AMA software Includes utility and consumer engagement software offerings (PC and mobile solutions) Lower upfront cost Latest features and functionality always available Utility IT professionals should consider the advantages of Cloud Computing Federal Cloud Computing Strategy Cloud First (February 2011) 2014 Badger Meter, Inc. 11
AMA Advanced Metering Analytics How is technology changing the water utility industry? 2014 Badger Meter, Inc.
Trend Advanced Metering Analytics Evolution of AMR to AMA AMR Automated Meter Reading AMI Advanced Metering Infrastructure AMA Advanced Metering Analytics Mobile Meter Reading Provides Efficient Reading with Monthly Billing Data Fixed Network Meter Reading Provides Raw Daily or Hourly Data Fixed Network with Powerful Analytics Software Provides Actionable Proactive Intelligence
Trend What is AMA? Advanced Metering Analytics Organization of Data into useful Information Practical Solutions to Utility Operations Proactive Approach to Utility Management Functional Integration of Utility Information 2014 Badger Meter, Inc. 14
Advanced Metering Analytics in Action Select & Define System Exceptions with the simple Analytics Configurator Define Accounts to Monitor for Defined Exception Define Who, How, How Often, and Action to take when alerted of Exception (Email, SMS, or Dashboard) Improved Utility Management Actionable Business Decisions from Proactive Intelligence Continual System Monitoring of Interval Data 2014 Badger Meter, Inc.
Implications of Advanced Metering Analytics Increased visibility and understanding of utility operation through analytics Faster notification and resolution of issues Increased efficiency and revenue Solves big data problems Eliminates the need to run reports to find problems 2014 Badger Meter, Inc.
Problems facing Water Utilities Creating and running a large number of reports to understand anomalous usage conditions Current fixed network inundate utility with large amounts of data Current methods are post usage and are not reported until after customer is inquiring about a high bill Inability to find true efficiency with AMI Systems 2014 Badger Meter, Inc. 17
Advanced Metering Analytics Solutions Select & Define System Exceptions with the simple Analytics Configurator Define Accounts to Monitor for Defined Exception Consumption under 25% of average usage Commercial Meters larger than 2 Continual System Monitoring of Interval Data Define Who, How, How Often, and Action to take when alerted of Exception (Email, SMS, or Dashboard) AMA automatically monitors data and notifies per your instructions Email Meter Supervisor immediately to setup work order for investigation Actionable Business Decisions from Proactive Intelligence Improved Utility Management Assign Field Technician to investigate Meter Element Replaced
Advanced Metering Analytics Solutions AMA provides automatic proactive notifications and eliminates the need to run a variety of reports to monitor exception conditions Metering-Based Analytics Hourly / Daily Consumption Consumption Percentages Exceptions (Continual Usage Leaks, Cut-Wire Tamper, No Usage, Reverse Flow, Encoder Error, Water Main Leaks) Inactive Account Usage Asset-Based Analytics Needed Maintenance AMI / Network Issues Notification by System Dashboard, E-mail or SMS
Enhanced Customer Service How is technology changing the water utility industry? 2014 Badger Meter, Inc.
Trend Enhanced Customer Service Emerging technologies allow utilities to provide enhanced levels of customer service never seen before New innovative technologies are touching the following areas of utility customer service Billing Dispute Resolution Customer Usage Education Online Bill Payment Customer Communication / Notification Conservation Buy-In 2014 Badger Meter, Inc. 21
Implications of Enhanced Customer Service Improved PR for the Utility Better relationship with consumers Increased efficiency of customer service processes Decrease in customer service calls Customer acceptance and buy-in of conservation programs Increased utility revenue from sale of data to commercial and industrial customers 2014 Badger Meter, Inc. 22
Problems facing Water Utilities High volume of customer service calls and billing disputes Costly truck rolls for billing dispute resolutions Lack of trust in utility s meter readings by customers Customers inability to quantify conservation efforts 2014 Badger Meter, Inc. 23
Customer Service Solutions Consumer Web Portals Consumer Smart Phone / Tablet Apps Allows consumer to: View / analyze detailed usage Setup / receive usage alerts Monitor usage / exceptions remotely Determine / monitor personal conservation Social / gamifacation affect encourages conservation Monthly Consumer Usage Summary Emails Smart Phone Apps are the future of customer engagement tools because of their natural connection to peoples everyday lives 2014 Badger Meter, Inc. 24
Infrastructure-Free AMI Fixed Networks How is technology changing the water utility industry? 2014 Badger Meter, Inc.
Trend Infrastructure-Free AMI Water utility AMI systems now utilize cellular networks instead of utility managed proprietary network Cellular providers have setup utility pricing that now makes them a viable network for AMI Water utilities no longer need to manage a network Cellular networks are becoming the default universal communication network Cellular networks are the new city-wide Wi-Fi City-wide Wi-Fi failed because of their poor transmission range, coverage and costly installation / maintenance 2014 Badger Meter, Inc. 26
Implications of Infrastructure-Free AMI Use of cellular communication networks will continue to grow exponentially because of their superior, secure performance, and their ability to be almost everywhere Cellular has been used as reliably for years as the backhaul for AMI networks AMI business case can now be supported by cellular due to utility-oriented business models Use of proprietary single purpose networks will decrease Uniquely supports hybrid model of mobile and cellular for most important meters 2014 Badger Meter, Inc. 27
Problems facing Water Utilities Installing, managing and monitoring proprietary networks are not part of a water utilities core competency Cost of city-wide proprietary network is a large capital expenditure and will need to be replaced over the life of the AMI system Most water utilities have limited easily accessible infrastructure locations Deploying a city-wide proprietary network for commercial and industrial (large meters) accounts is not financially viable 2014 Badger Meter, Inc. 28
Infrastructure-Free AMI Solutions Water AMI manufacturers have developed water endpoints that utilized the cellular network instead of proprietary single purpose networks Water utilities can now deploy a cellular AMI system as easily as an AMR system with no network to install or maintain Cellular operators globally continue expand the reach of cellular networks Cellular AMI uses more reliable data network versus voice network Cellular operators are highly regulated to ensure minimal outages Cellular operators have demonstrated rapid restorations during natural disasters such as hurricanes Sandy and Katrina 2014 Badger Meter, Inc. 29
Key Utility Takeaway Tips Explore and embrace new technologies throughout your utility Look for solutions not products All efficiencies do not have hard cost savings soft cost savings have value as well Look to other industries to understand how they are solving similar problems 2014 Badger Meter, Inc. 30
Questions / Answers / Discussion Copyright 2014 Badger Meter, Inc. All rights reserved, all data subject to change without notice. No part of this presentation may be used or reproduced in any form or by any means, without prior written permission of the publisher.