CIS Business Case Analysis and Fit Analysis
Large Eastern Electric Utility Company
Quintel was responsible for managing the entire project. Our standard templates and CIS and utility benchmarks were used to accelerate this process. Because we have implemented CIS systems numerous times we were able to be very precise in defining the benefits and costs of the implementation. The specific deliverables are listed below:
Completed Business Case templates for each workshop (call center, billing back office, field, meter shop, AMI benefits, regulatory requirements, etc.) These templates represent the “expected” SAP gaps, costs, benefits, business processes and flows, etc. The workshops with the business “owners” were used to validate the assumptions used for the business case analysis.
Proposed Business Scenario Scope for CIS Implementation
Legacy Systems being replaced and/or interfaced to supplemental technology requirements
Existing legacy systems
i. To be eliminated
ii. To be modified
Existing Interfaces
i. To be eliminated
ii. To be rewritten
List of Major Gaps & Closure approach
List of Organizational Impact Expected—the organizational impacts will depend on the current organizational structure, union agreements and current business processes
Business Objectives, Expected Benefits and Metrics
List of Major Integration / Policy Issues that will be dealt with in the implementation or result thereof
List of Major Data Sources for Conversion and approach for data conversion
Identified Best Practices that could be used in the implementation
Project Planning Deliverables for the Implementation and Costs
Overall project CIS implementation plan
Template Roadmap and Rollout Roadmap
Initial estimate of work– detailed cost schedule (internal and external resources, facilities, software, training costs, etc.) Transition to operations/stabilization (post go live requirements for business and technical) Infrastructure requirements, a) Production environment, b) Development environment, c)Test environment and d) Disaster recovery
Financial Business Case including:
Implementation Costs and Ongoing costs as described above
Identified and quantified benefits for each business unit or process area
Business case scenarios including financial analysis
Potential rate cases items—capital vs. expenses, depreciation
AMI and Deregulation costs and benefits
Reporting Strategy
Training and Change Management Approach (roles, overtime, temporary hires for the Call Center, security, SOX and SOD rules, gap analysis, change management)
The result was a business case and a Fit Analysis Report that describes areas where some workarounds or special adaptation effort may be required to meet the Company’s business needs. The written business cases and plan was delivered to the Company for review and approval. The financial business case outlined the targeted savings and the timeline to achieve the savings. The baseline included: as-is costs, the targeted savings, opportunities for achieving managerial and staffing efficiencies, implementation costs (including program management office costs, other consulting subcontractor costs, hardware and software costs, the Company’s FTEs required to implement the program and performance metrics for the implementation period). The savings were broken down into labor, materials and other categories and presented on an annual basis (monthly for the first two years). Similarly, the costs were reported in the categories mentioned above. Investments were divided into capital and operating expenses. The labor and regulatory implications were also factored into the recommended plan.