1. CIS Selection and Implementation and the Importance of Integrated Planning
Bruce Goldblatt, Director
Alliance Data Systems
April 12, 2005
6th Annual Metering, Billing, CRM/CIS Conference
Las Vegas, NV

2. Agenda The need for integrated planning Developing an integrated plan
CIS context and scope
Program Management
Conclusions
Q & A

3. The Need for Integrated Planning
CIS/CRM implementations are becoming increasingly more complex.
CIS/CRM implementations continue to be very a very risky and costly undertaking.
Typical CIS Implementation Outcomes
Over Budget
15%
65%
Within Budget
15% 5%
On-time
Overdue

4. Example: mid-western municipal utility
New CIS evaluation/selection/implementation
New City-wide cashiering system
New IVR evaluation/selection
New bill production
New EBPP rollout
New City-wide telephone system – VOIP
New City-wide wireless network rollout
New Development Center/Permitting system
New lab system
GIS upgrade
ERP upgrade
Rate changes
Technology refresh
And don’t forget the need to run the business!!

5. The Need for Integrated Planning
Yes
Select Outsourcer
Implement/Transition
Retail Customer Management
Implement/Transition …
Feasible Outsourcing
Options?
Assess CIS Sourcing
Options No
Select New CIS
Implement New CIS …
Implement New CIS …
Enhanced CIS User Interface
Select Gas Mgmt. Vendor
Illustrative
Wholesale Customer/Market Management
Yes
Implement New Gas Management System
New Gas Mgmt. Solution Needed?
Design/Build/Implement Custom “Wholesale CIS” Components
Define Wholesale & Gas Mgmt. Direction No …
Define and Implement Enhancements
Implement New MIA System*
Design/Build/Implement Custom “Wholesale CIS” Components
Implement Marketer Auto-Service*
Meter
Management
Yes
Select MDM Vendor
Implement Meter Data Mgmt
Meter Data Mgmt. Solution Needed? …
Define Meter Data Mgmt. Options
Define Meter Mgmt. Direction No
Use new Retail Cust. Mgmt. Solution for MDM
Implement Meter Data Mgmt.
Replace Meter Data Collection Hardware/Software
Select Meter Data Collection Hardware/Software Vendor*
Work
Management
Upgrade/Consolidate AD Systems
Define Automated Dispatch Direction
Upgrade/Consolidate AD Systems …
Yes
New Work Mgmt. Package Needed?
Distribution Construction Management
Define Work Mgmt. & GIS Direction No
Implement Short-term Work Mgmt. & GIS Solutions
Define Enterprise Rollout Approach
Yes
Store all meter asset information in AM?
Implement Meter Asset Management
Asset/ Maintenance Management …
Conduct AM Pilot
Yes
Implement MAM
Yes or No …
AM viable as enterprise system?
Incrementally Deploy AM as Enterprise Solution
Assess AM Pilot
Assess Pilot Result No
Define Corporate Analytics & Portfolio Mgmt. Direction
Update Technology Roadmap
Update Technology Roadmap
Implement EAI Workflow
Technology
Perform Application Migrations/Technology Upgrades*
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
2004
2005
2006

6. CIS/CRM Selection Considerations
Determine CIS/CRM scope: current definition vs. future definition. Align with overall business strategy.
Identify/Access ancillary projects
Determine replacement strategy, license based vs. outsourced vs. enhancement vs. hybrid
Conduct evaluation/selection
Develop integrated plan: people, processes, systems and time

7. What is CIS/CRM Scope? CIS/ CRM Utility Billing Remittance Processing
Non-Utility Billing
Customer Self Service (Web)
Meter/Equipment Inventory
Meter Reading
AR/Credit & Collection
CIS/
CRM
Rates & Tariffs
Consumption History
Service Information
Workflow
Controls & Audit
Service Orders
Ad-hoc Reporting
Management Reporting
Customer Information

8. CIS/CRM Context – as is CIS/CRM Credit Agency Complex Billing
3rd Party
Billing
CASS
Certification
Manual
Consumption
Credit Info
Remittance
Processing
Mailing Addresses
Payments/Bank Drafts
CIS/CRM
G/L
Journal Entries
Payments
Cashiering
Credit Refunds AP
Manual
Delinquent Accounts
Read Info
Work
Management
Meter
Reading
Collection
Agency

9. CIS/CRM Context – to be New CIS/CRM IVR/ACD Credit Agency Complex
Billing
3rd Party
Billing
Consumption
CASS
Certification
Systems
Planning
Credit Info
Consumption
Manual
Billing Determinants
Customer Info
Permit Info
Mailing Addresses
New
CIS/CRM
G/L
Remittance
Processing
Payments/Bank Drafts
Journal Entries
Credit Refunds
Payments AP
Billing Info
Cashiering
Work Orders
Geo Info
Delinquent Accounts
Read Info
Statement
Generation
Work
Management
Meter
Reading
Collection
Agency
GIS

10. Developing an Integrated Plan
Illustrative
Yes
Select Outsourcer
Implement/Transition …
Retail Customer Management
Assess CIS
Options
Outsource? No
Implement/Transition …
Enhance CIS User Interface …
Select New CIS
Implement New CIS
Define Meter Data Mgmt. Options
Meter
Management
Yes
Select MDM Vendor
Implement Meter Data Mgmt …
Define Meter Mgmt. Direction
Meter Data Mgmt. Solution Needed? No
Use new Retail Cust. Mgmt. Solution for MDM
Select Meter Data Collection Hardware/Software Vendor*
Replace Meter Data Collection Hardware/Software
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
2004
2005
2006

11. Developing an Integrated Plan
People
Limited availability of resources
Need to run the business vs. new projects
Change management
Processes
Increased need to integrate across operational boundaries
Need for standardization
Technology
Increased need for automation across the organization
Increased need for data access across the organization
All of these aspects need to be considered when
planning to replace a CIS

12. Program Management Steering Committee
----- Executive Oversight and Strategy
----- Integrated Planning
Program Management
----- Operational Responsibility
CIS
AMR
Project 1
Project 2
Metrics
Metrics
Metrics
Metrics
Metrics
Project
Metrics
Project
Metrics
Project
Metrics
Project
Metrics
Project
Metrics
Project
Metrics
Project
Metrics
Project
Project
Project
Project
Project

13. Program Management is NOT Project Management
Project Management Focus
Program Management Focus
Project-vested interest in control
Completing the project on-time
Budget / contract instead of value-add
Their own problems
Day-to-day project work
Delivery of a specific service
Tight alignment with business priorities
Business impact measurement
Prioritized allocation of scarce resources
Enterprise communications
Identification and tracking of results
Ability to assess impact of changes
Tracking promised benefits =

14. Conclusions
CIS replacement efforts take a long time and continue to be very risky and costly
Risk mitigation:
Integration planning starts in the CIS/CRM selection effort
Integration planning is refined and managed during the implementation effort
Strong project management is critical
Establishment of a corporate program management office and process is essential
Executive involvement in the decision making
Communicate, communicate, communicate

15. Questions