© 2008 Eventure Events. All rights reserved. Hydro One Cornerstone: Case Study Carmine Marcello Brian Martin

Hydro One: At A Glance One of the largest electricity delivery Systems in the World Wholly owned by the Province of Ontario Ontario Energy Board regulates Transmission and Distribution separately Transmission Distribution $7.3 Billion in assets 28,900 KM network – over 96% of capacity in Ontario 51 LDCs, 61 large industrials 26 Interconnection facilities 273 Transmission stations $5.4Billion in assets 123,000 KM system – spans 75% of Ontario 1.3 Million rural and urban customers incl. 32 LDCs, 50 Large industrials

Hydro One: Ontario Footprint Our mission is to be an efficient and dynamic electricity transmission and distribution company that is best in North America in the areas of safety, customer service and reliability, while focusing on our people and creating shareholder value

Hydro One: Strategic Five Year Vision Ensure public confidence as stewards of provincial assets Best safety record in the world Top quartile reliability Customer satisfaction: 90% across all segments Skills development and retention Shareholder returns: Productivity/ “A” category Rating

IT Strategy: Catalyst for Change Alternative 1 Use of point solutions scaled to individual business process requirements Minimal use of enterprise systems Alternative 3 Use of principal enterprise systems as the established default for new applications Use of point solutions where justified by incremental value Alternative 4 Functionality consolidated to single enterprise system Use of point solutions limited to processes not supported by single enterprise system Single Enterprise System Best-of-Breed Point Solutions Low High Alternative 2 Targeted use of point solutions for differentiated business processes Use of enterprise systems for common or undifferentiated processes Best-of-Breed Point Solutions Emphasis Enterprise System(s) with Minimal Point Solutions Single Enterprise System Emphasis Enterprise Systems with Multiple Point Solutions Application Architecture Alternatives Enterprise Systems with Point Solutions Current Hydro One Multiple highly customized enterprise systems supporting a subset of business processes Many processes supported by independent point solutions Three Customized Enterprise Systems with Custom Point Solutions Recommended Hydro One Architecture Direction Degree of IT Integration and Application Uniformity

Beyond IT: Business Driven Program takes Shape Our Business ChallengesEAM Opportunities Patchwork of highly customized, unsupported legacy systems have led to Siloed and complex processes and created Barriers to achieving integration cost savings A consolidated and integrated platform… will enable Simplified and standardized end- to-end processes… and support Sustained integration cost savings EAM Business and IT Challenges make opportunity right for a more transformational program. “This is not an IT project”

Cornerstone: The Program How SAP supports Hydro One’s Transformation

Cornerstone: The Program Mission Support the Corporate Mission Provide renewing and sustaining support for Hydro One’s Internal Controls Create more effective and efficient business operations Enable achievement of corporate regulatory objective Drive Employee Engagement

Cornerstone: Phase One – The Project Team “The power of Four” “Vanilla tastes great!”

Cornerstone: Phase One - Scope Phase One will replace current Passport functionality in supply chain, work management, asset management, and accounts payable, with SAP functionality. Functional Area SAP Modules Supply Chain Accounts Payable Work Initiation Preventative Maintenance ECC 6.0 ECC 6.0 -MM, SD, PM, PS -WM, HR* -FI (G/L, AR, AP) SRM (APO) SCM PI EP

Cornerstone: Phase One – Scope/Landscape

Cornerstone: Phase One – Value Streams Business benefits were identified, prioritized and driven down to detailed value levers. KPI creation is underway.

Cornerstone: Phase One – Project Timeline Project Mobilization January 2007 Go-Live of June 2 nd 2008 Project Post Go-Live suspended July 31 st 2008 Project Close-out Sept 12, 2008 # Person days/# People on the project: 43,265/468 # Deliverables produced: 861 # Issues raised/addressed: 721 # Change Requests addressed: 436 # Test Scenarios executed/Total SIRs: 868/1097 # Tasks on Cutover Plan: 1287 # People Classroom Trained prior to go-Live: 2221 MobilizeDesignBuildTest Deploy

Cornerstone: Phase One – Transition to Enablement The ‘Project’ Phase of the Project may be over – but the “real” work is just beginning. Hydro One has set up an Enablement organization to continue to drive value from Cornerstone long-term VISION The Enablement Organization will drive productivity through enterprise process improvements and ensure we leverage the Cornerstone Assets to their full potential

Cornerstone: Phase One – Transition to Enablement Enablement Structure and Guiding Principles Enablement Director Process & Data Manager Performance Improvement Manager Business Solutions & Training Managers Enablement Guiding Principles Continuously leverage the Cornerstone investment Improve impacted business processes on an ongoing basis Identify and prioritize business improvements based on measurable and verifiable value Govern data as an asset to drive better analysis and decision making Increase end user productivity and quality of work

Cornerstone: Project/Program Success Cornerstone “Why Projects Fail” Placemat

Cornerstone: Project/Program Success Cornerstone Program Values Collaborative relationships Respect and trust for one another Badgeless Client focused Transparency Sponsor support Empowered teams

Questions?

© 2008 Eventure Events. All rights reserved. Carmine Marcello Brian Martin