The evolution of SAP S/4HANA Utilities runs parallel to the broader history of SAP S/4HANA, mirroring the continuous innovation and customer-focused development of SAP's core product offerings.
RIVA
Our journey begins with the development of RIVA during the R/2 age. This first-ever industry solution, an acronym for Realtime Informations und Verbrauchsabrechnungssystem, was specifically designed for German utility companies. RIVA marked a significant advancement in the management of utilities, offering a powerful billing engine, meter reading capability, and master data management. However, it still lacked certain critical functions like FI-CA, CRM, EDM, AMI, and IDEX.
IS-U
Enter IS-U in the R/3 epoch, the successor to RIVA. Short for Industrial Solution Utilities, IS-U expanded SAP's utility solution offering to cater to global companies. It integrated new master data components such as contract account, business partner, and point of delivery. The IS-U also introduced advanced functionalities like Finance Contract Accounting (FI-CA), Customer Relationship Management (CRM), Energy Data Management (EDM), and Intercompany Data Exchange (IDEX).
SAP Utilities
Advancing to the ERP age, SAP for Utilities took over as the successor of IS-U. It extended its capabilities, including advanced functions to manage deregulation and a SOA-based Advanced Metering Infrastructure (AMI). Moreover, it introduced a switch framework to streamline upgrade synchronization between SAP ERP and SAP for Utilities. After 35 years, SAP for Utilities is currently available in over 100 countries and is implemented in 80% of all utility companies globally.
SAP S/4HANA Utilities
Embracing the digital transformation wave, SAP S/4HANA Utilities emerged as the successor to SAP for Utilities. This latest iteration integrates intelligent technologies like Machine Learning (ML) and introduces public cloud solutions such as SAP Market Communication for Utilities. Furthermore, it evolves the Industry Cloud with additions like SAP Measurement Concept Management.
SAP Utilities Core
SAP Utilities Core, a comprehensive subscription service, marries private and public cloud solutions into a single offering. It covers the entire Meter-to-Cash process, extending from consumption determination and invoice creation to customer payment, thereby streamlining operations and promoting efficiencies for utility companies globally.
SAP S/4HANA Utilities Overview
A tailored solution designed to address operational needs in utility companies, SAP Utilities Core is geared to manage the entire Meter-to-Cash (M2C) process. This spans from the determination of consumption to invoice creation, right through to receiving customer payment. The focus is to simplify and efficiently handle the utility billing process, improving overall operational performance.
For German markets, SAP provides a specific solution known as SAP Utilities Core for Germany (U4G). In addition to the standard M2C process, U4G incorporates German-specific processes and aspects of market communication, catering to the particular needs of the German utilities landscape.
Importantly, SAP Utilities Core isn't limited to any one specific market role or geographical region. It's comprehensibly designed to cater to a range of market roles and countries, in both regulated and deregulated markets. This broad applicability makes SAP Utilities Core a versatile and robust solution for utility companies globally, helping to streamline their processes and achieve improved efficiency and performance.
SAP S/4HANA Utilities provides rich and mature functionality for M2C and related processes.
- Basic Functions (BF) include the regional structure and the scheduling for meter reading and billing.
- Master Data (MD) includes data which remains fixed for long periods such as business partner and point-of-delivery.
- Device Management (DM) supports the SAP S/4HANA Supply Chain integration and the management of utilities devices.
- Work Management (WM) supports the SAP S/4HANA Service integration of utilities services and maintenance processes.
- Meter Reading (MR) supports the organization and execution of periodic and aperiodic meter reading result determination.
- Energy Data Management (EDM) supports the upload, management, settlement and billing of equidistant time series data.
- Advanced Metering Infrastructure (AMI) supports the upload, management and billing of smart meters with remote capabilities.
- Billing (BI) supports the definition of rate master data as well as the billing execution for divisions such as electricity, gas and water.
- Invoicing (IN) supports the invoicing execution, the posting of receivables, taxes and the printout of all services in one single invoice.
- Contract Accounting (CA) is the receivables subledger to manage open items and their payments for a large volume of documents.
SAP S/4HANA Utilities uses innovations of the SAP Intelligent Enterprise wherever they provide value.
- SAP Fiori provides intuitive user experience tailored to roles such as Utilities Metering Specialist and Utilities Billing Specialist.
- SAP Analytics Cloud (SAC) enables realtime reporting for master and transactional data across the entire M2C process.
- Machine Learning (ML) is used for monitoring of meter reading and billing issues to increase the automation potential.
- Utilities Product Integration Layer (UPIL) supports the translation of commodity products into rate master data.
SAP S/4HANA offers a suite of specialized tools that are tailor-made for the utilities sector. Each tool addresses a different area of utility management, allowing companies to execute their operations seamlessly and efficiently.
SAP S/4HANA Convergent Invoicing (CI) brings an innovative approach to business models by offering integrated billing and invoicing for commodity and non-commodity products. Also, it manages revenue sharing with third-party companies and handles other discounting practices, creating room for diverse business practices.
SAP S/4HANA Customer Engagement (CE) introduces customer service and commodity sales capabilities specific to utility companies. Interaction center agents can easily manage utilities master data and execute utility processes such as bill correction and move-ins/outs.
The SAP Utilities Core, underpinned by the MCM component, is an industry cloud solution that enables the execution of industry-specific business processes. The SAP Measurement Concept Management (MCM) facilitates the definition of measurement concepts combined with utilities master data.
Moreover, the SAP Market Communication for Utilities (MaCo) stands as a public cloud solution to manage communication processes in the German energy market, aiding transactions like Start-of-Supply or Meter Reading Exchange.
SAP S/4HANA Utilities Master Data Updates for Germany (MDU) is designed to help meter operators, distributors and suppliers by monitoring and managing any master data changes in the deregulated electricity and gas market, thereby complying with German Bundesnetzagentur (BNA) requirements.
Also, SAP S/4HANA Utilities Intelligent Metering of German Energy (IM4G) aids meter operators with the roll out and operations of Intelligent Metering Systems (IMS), meeting the requirements of the German Messstellenbetriebsgesetz (MBG).
SAP S/4HANA Utilities Billing Enhancements for Germany (BE) assists meter operators with managing the billing procedures of Intelligent Metering Systems. It also caters to the legal requirements of the German Messstellenbetriebsgesetz (MBG).
Finally, SAP S/4HANA Utilities EEG Billing of German Electricity guides distributors in defining special rates and managing the billing procedures of energy feeding quantities in compliance with the German Erneuerbare Energien Gesetz (EEG).
Together, these solutions offer a comprehensive and profound system that enables efficient and effective management of utility services in compliance with statutory regulations.