Explaining How SAP Creates Value for the Utilities Industry

Objective

After completing this lesson, you will be able to explain how SAP creates value for Utilities.

SAP Solutions for the Utilities Industry

SAP and its Role in the Utilities Industry

SAP software creates significant value for the utilities industry in several key ways. Let's take a closer look, by watching the video.

How SAP Solutions create Value for Businesses in the Utilities Industry

Run Today's Business Better

  • Risk Reduction

    By leveraging the most comprehensive, market-leading utilities platform, SAP supports all regions, markets, and utility types and sizes, ensuring robust and reliable operations.

  • Enhanced Automation

    Intelligent technologies are integrated into industry-specific processes across the value chain, further extending automation and efficiency.

  • Energy and Water Utility Capabilities

    SAP provides specialized capabilities and innovations tailored specifically for energy and water utilities.

  • Cross-Industry Innovation

    The platform allows utilities to consume best practices and innovations from multiple industries, fostering continuous improvement and innovation.

  • Partner Solutions

    Access to a large and continuously growing number of partner solutions extends the platform with industry-leading next practices.

  • Flexible Deployment

    Utilities can select the deployment method that best suits their needs, offering flexibility and scalability.

Achieve Your Growth Ambitions

  • New Business Models

    SAP enables utilities to evolve beyond traditional commodity services into new business models, such as subscription services.

  • Customer Insights

    Achieving a true 360° view of the customer allows for targeted and personalized service, enhancing customer satisfaction and loyalty.

  • Complex Network Cooperation

    The platform prepares utilities to cooperate in complex energy and business networks, facilitating better collaboration and efficiency.

  • Regulatory Compliance

    SAP provides the relevant data needed to support evolving local regulations, ensuring compliance and reducing legal risks.

  • Financial Auditability

    Full end-to-end auditability of financial information ensures transparency and accountability, which is crucial for regulatory compliance and financial integrity.

  • Operational Efficiency

    Streamline operations by integrating intelligent technologies such as AI and machine learning, which help utilities reduce downtime, increase productivity, and optimize resource allocation. This leads to enhanced operational efficiency and cost savings across the entire utility value chain.

By addressing both operational efficiency and growth opportunities, SAP empowers utilities to run their current operations more effectively while also positioning them for future success

SAP Customer Successes in the Utilities Industry

In today's rapidly evolving energy sector, companies face numerous challenges, from maintaining operational efficiency to meeting sustainability goals. The following customer success stories highlight how leading energy companies have leveraged SAP solutions to overcome these challenges, drive innovation, and achieve their strategic objectives. By implementing SAP S/4HANA Cloud and other SAP technologies, these organizations have transformed their operations, enhanced customer satisfaction, and positioned themselves for future success.

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CHC Energia: Powering Positive Customer Experiences and Growth Despite Market Volatility

CHC Energia, a leading electricity services provider based in Madrid, Spain, faced several challenges in an increasingly competitive and volatile market. The company relied on third-party IT operations for both business-to-business and business-to-consumer services, which limited their control and efficiency. Additionally, there was a need to create innovative and tailored products to meet consumer expectations and to resolve incidents in a timely manner.

Challenges and Opportunities

  • Limited control and efficiency due to reliance on third-party IT operations.
  • Need for innovative and tailored products to meet consumer expectations.
  • Timely resolution of incidents.

Solution

CHC Energia implemented SAP S/4HANA and SAP Business Technology Platform. This digital transformation allowed the company to take full control of its IT landscape, reducing reliance on outsourcing and enabling better management of their operations.

Results

  • Enhanced Control and Efficiency

    Automation of metering, billing, and invoicing processes increased service quality and optimized exception resolution, reducing the cost to serve.

  • Innovative Product Offerings

    The platform enabled the creation of individualized pricing for energy and services, meeting consumer expectations and enhancing customer experiences.

  • Real-Time Data and Insights

    The unified systems landscape provided real-time data and insights, improving user experience and business-process efficiencies.

  • Flexible Resource Management

    The cloud model allowed for resource prediction and adjustment during periods of high demand, reducing the workload on their chief technology officer.

CHC Energia's journey with SAP demonstrates how digital transformation can drive efficiency, innovation, and customer satisfaction in the utilities industry. By addressing both operational efficiency and growth opportunities, the company was able to run its current operations more effectively while positioning itself for future success.

To learn more, please visit the following link

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Alperia: Leading Sustainable Innovation with SAP S/4HANA Cloud

Alperia SpA, a leader in renewable energy production and electric grid management, faced significant challenges in its mission to provide sustainable green energy to over 300,000 customers across Italy. With 34 hydroelectric stations and a 9,000-kilometer distribution grid, the company needed to ensure agility and continued innovation in an uncertain future. However, Alperia struggled with a lack of flexibility in responding to rapid market transformations, siloed information from legacy systems, and the complexity of evaluating business performance and enabling cross-process synergies.

Challenges and Opportunities

  • Lack of flexibility in responding to rapid market transformations.
  • Siloed information from legacy systems.
  • Complexity in evaluating business performance and enabling cross-process synergies.

Solution

Alperia turned to SAP S/4HANA Cloud, SAP Utilities Core, and SAP Billing and Revenue Innovation Management. This next-generation cloud infrastructure provided a simplified and cost-efficient path to digital transformation. By integrating systems, automating processes, and unifying data, Alperia was able to break down information silos and reduce complexity.

Results

  • Operational Efficiency

    Standardizing processes and establishing a common, shared working and reporting process improved operational efficiency and accuracy.

  • Modernized IT Infrastructure

    Integrated data across various aspects of the business created a future-ready IT landscape, reducing technology complexity and realizing cost savings.

  • Data-Driven Decision Making

    Enterprise-wide analytics enabled fast, data-driven decision making and insights, enhancing business agility.

  • New Business Models

    SAP Billing and Revenue Innovation Management allowed Alperia to manage sales and billing for its subsidiary e-mobility company Neogy, fostering operational independence and speeding time-to-market and pricing innovations by 30%.

Alperia's journey with SAP showcases how next-generation cloud infrastructure can drive efficiency, innovation, and sustainability in the utilities industry. By addressing both operational efficiency and growth opportunities, Alperia is empowering a greener future for people and the planet.

To learn more, please visit the following link

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GasNet: Transforming Energy Distribution with SAP S/4HANA Cloud

GasNet s.r.o., the largest gas distributor in the Czech Republic, serves over 2.3 million customers with reliable energy. Facing the challenge of replacing an inflexible on-premise ERP system with a modern cloud solution, GasNet needed to migrate its entire ERP system and data within 12 months due to a spin-off from its parent company. Concurrently, the company had to refinance and initiate its transition towards net-zero emissions and future hydrogen distribution.

Challenges and Opportunities

  • Rapid deployment of a new ERP system before the spin-off while ensuring data quality and meeting deadlines set by regulators, rating agencies, and tax authorities.
  • Compliance with complex energy-sector regulations across 300,000 assets.
  • Support for sustainability initiatives, including transitioning from natural gas to hydrogen.

Solution

GasNet chose SAP S/4HANA Cloud, public edition, and SAP Services and Support to meet these challenges. SAP's cloud-based ERP system offered standard features tailored to complex utility requirements. SAP's commitment to customer engagement, software extensibility, and integration capabilities, along with IBM's expertise, helped lower costs, increase agility, and improve results.

Results

  • Efficient Fixed-Asset Accounting

    User-friendly recalculation and depreciation simulation, custom property classes and fields, and improved bulk disposal and reposting.

  • Professional Procurement Processes

    Faster reporting, partner signup using e-signatures, simplified mobile-enabled approvals, and cost-effective order sharing with suppliers.

  • Streamlined Invoice and Contract Workflows

    Increased data and workflow transparency, enabling immediate insights into approval delays or errors. Teams can approve invoices from mobile devices, ensuring checks and balances are completed.

GasNet's journey with SAP demonstrates how a smooth ERP migration can drive sustainability and operational excellence. By addressing both operational efficiency and growth opportunities, GasNet is positioned to achieve carbon neutrality by 2050.

To learn more, please visit the following link

Lesson Summary

In this lesson, you have learned about risk reduction and enhanced automation, cross-industry innovation and specialized capabilities, flexible deployment and partner solutions, growth ambitions and regulatory compliance.

  • Risk Reduction and Enhanced Automation

    SAP's comprehensive platform supports robust operations across all regions and utility types, integrating intelligent technologies to extend automation and efficiency.

  • Cross-Industry Innovation and Specialized Capabilities

    The platform fosters continuous improvement by adopting LOB (Line of Business) solutions such as Enterprise Asset Management and provides specialized capabilities for energy and water utilities.

  • Flexible Deployment and Partner Solutions

    Utilities can choose the best deployment method for their needs, with access to numerous partner solutions that extend the platform with industry-leading practices.

  • Growth Ambitions and Regulatory Compliance

    SAP enables new business models, offers a 360° view of customers, facilitates cooperation in complex networks, and ensures compliance with evolving regulations and financial auditability.

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