1Information and
telecommunications
development strategy of
KEGOC until 2019
Table of contents
1.
2.
Introduction
Analysis of the Current Status of the Company's IT Architecture
3
4
2.1
Business Architecture of the Company
4
2.2
Architecture of Applications in the Company
7
2.3
Data Architecture
11
2.4
Technology Architecture
12
2.5
Information Security Architecture
17
2.6
Management of IT Processes and Services
18
2.7
Overview of the Existing Model of IT Governance
20
2.8
ITS in the Peer Companies
22
3.
Strategic Goals and Key Business Drivers of the Company
24
3.1
Strategic Goals of the Company
24
3.2
Key Business Drivers and Their Prioritizing
25
4.
5.
6.
The List of Business Requirements for ITS
Results of a Comprehensive Analysis of the Current State of Company's ITS
Target IT Architecture of the Company
26
28
29
6.1
Business Architecture of the Company
30
6.2
Application Architecture
32
6.3
Data Architecture
35
6.4
Technology Architecture
37
6.5
Information Security Architecture
38
6.6
Principles of the Company's ITS Development
40
6.7
Operating Model of ITS Management
42
7.
The Main Tasks of ITS Development Strategy
48
7.1
Enhancement of IT Management Function;
48
7.2
Improvement of Automatic Control in Operational Processes;
50
7.3
Improvement of Automatic Control in Support Processes;
56
7.4
Development of ITS infrastructure
62
7.5
Improvement of Maturity Level in Information Security Process
67
8.
Plan of IT Initiatives Implementation
70
8.1
Prioritizing of IT Initiatives;
70
8.2
Mutual Influence of IT Initiatives
72
8.3
Plan of IT Strategy Implementation
73
9.
Risk Register for IT Strategy Implementation
Appendix No. 1: Terms and Abbreviations
Appendix No. 2: Interrelation of IT Objectives with the Company's Strategic Goals
Appendix No. 3: Portfolio of IT Strategic Projects with regard to their Classification
74
75
77
78
1. Introduction
Kazakhstan Electricity Grid Operating Company (KEGOC) (hereinafter referred to as the "Company") was
established in accordance with the Decree of the Government of the Republic of Kazakhstan dated 28 September
1996 No. 1188 "On some measures to restructure power system management in Kazakhstan". The Company is a
System Operator of the Unified Power System of the Republic of Kazakhstan, and aims to provide reliable
operation and efficient development of the Unified Power System (UPS) of Kazakhstan in accordance with current
technical, economic, environmental requirements, standards of occupational health and health. KEGOC's mission
is to reach the level of its globally recognised peers and become the centre of the expertise including in information
technology and telecommunications.
This document: "Information and telecommunications development strategy of KEGOC until 2019"
(hereinafter referred to as the "Strategy") is designed to determine the main areas of development of the
information and telecommunications system (ITS) in the Company's in the medium term until 2019.
The terms and abbreviations in this Strategy are used in accordance with Appendix 1. Terms and abbreviations.
This Strategy covers the period from 2014 to 2019 and all units in the Executive Administration (hereinafter
referred to as "EA") and Company's branches, subsidiaries and related companies.
This document is based on international best practices and experiences in the field of information and
telecommunication technologies, including the following documents:
 KEGOC's long-term development strategy until 2025;
 KEGOC's innovation and technology strategy.
 Power industry law in Kazakhstan No. 588-II dated 9 July 2004;
 Decree No. 300 of the Government of Kazakhstan dated 29 March 2013 "On approval of the rules for provision
of services by the system operator, and for organization and operation of the market of system and auxiliary
services."
 Expectations of the sole shareholder of KEGOC for 2014.
 Samruk-Kazyna's IT policy
 International IT standards: CobIT, ITIL, ISO, IEC and the knowledge base of PwC.
2. Analysis of the Current Status of the
Company's IT Architecture
2.1
Business Architecture of the Company
Core Operations of the Company
According to Decree No. 300 of the Government of Kazakhstan dated 29 March 2013 "On approval of the rules for
provision of services by the system operator, and for organization and operation of the market of system and
ancillary services" the Company's range of operations includes:
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PwC
render to the wholesale electricity market participants the contract-based electricity transmission services
across the national power grid; service the grid and ensure its operational availability;
render to the wholesale electricity market participants the contract-based technical dispatch control
services through centralised operational dispatch control of the operational modes of Kazakhstan UPS
including preparation of the actual energy balance reports and daily electricity production-consumption
schedule;
ensure reliable operation of Kazakhstan UPS;
render to the wholesale electricity market participants the services of maintaining electric power reserve
and balancing of generation and consumption of electricity;
render to the wholesale electricity market participants the services of physical settlement of energy
imbalances;
render services of further financial settlement of energy imbalances in accordance with the laws of
Kazakhstan;
buy electricity from the wholesale electricity market participants for the purpose of the ancillary services as
needed to ensure availability of the required volume and structure of operating reserves of electrical power;
to control active and reactive power and enable the black start of the grid;
manage the operation of the real time electricity balancing market, and the market of system and ancillary
services;
interact with power systems of neighbouring states in on the matters of management and stability of
parallel (synchronous) operation of the systems;
provide technical and methodological guidance for establishment of a unified information system,
automated commercial metering system, interconnected relay protection and emergency control
automatics for all participants of the wholesale electricity market;
ensure equal access conditions to the national power grid for all wholesale electricity market participants;
provide the wholesale electricity market participants in Kazakhstan with information that is not
constituting commercial and other secrets protected by law;
coordinate the repair dates for the primary equipment at power plants, substations, transmission lines, for
the relay protection devices and emergency control automatics, process management systems and ensure
their availability;
participate in scheduling of hydroelectric power plants operation considering their water-economic
balances and modes of operation of the power system of Kazakhstan;
prepare long-term forecast of electric energy balances;
purchase and sell electricity to cover the auxiliary technological and industrial consumption; to guarantee
the contractual values of power flows with the energy systems of the neighbouring countries, and
imbalances not covered by the balancing energy market to maintain the standard frequency of electric
current in the power system of Kazakhstan.
4
Organizational Scale of the Company
The Company operates in three regional energy zones of Kazakhstan:
 Zone North, which includes the East Kazakhstan, Pavlodar, Akmola, Karaganda, North Kazakhstan,
Kostanai, Aktobe provinces and the city of Astana.
 Zone South, which includes Almaty, Zhambyl, Kyzylorda, South Kazakhstan provinces, the city of Almaty
and Baikonur region.
 Zone West includes Atyrau, West Kazakhstan, and Mangistau provinces.
Structure of the Company is as follows:
 nine intersystem electric network branches (hereinafter referred to as the "MES branches") covering all
three regional energy zones of Kazakhstan and 74 electrical substations (hereinafter referred to as the
"SS") with 33699.65 MVA of installed transformer capacity;
 the National Dispatch Centre of the System Operator (hereinafter referred to as NDC SO) - the branch of
the Company which has the operational authority over all MES branches;
 Energoinform JSC is the subsidiary of the Company; it provides operational support of information and
telecommunications system.
Business Processes of the Company
The basis of the business processes architecture is the business operations of the Company, which can be divided
into three categories:
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Management Processes
Operational processes
Supporting processes
These business processes are considered as potential areas for automation and further optimization.
Management Processes
This a set of business processes to define strategic goals, plan operations, control and manage the core operations
of the Company, its internal relationships within the Company and external relationships with the third parties.
These include:
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Strategic management;
Corporate governance;
Planning, budgeting and monitoring;
Pricing and stakeholders relationship management;
Study and selection of new technologies;
Risk management, internal control and audit;
Operational Processes
These business processes form the value chain and consist of the following categories:
 Electricity transmission;
 Technical dispatch control;
 Management of electricity production and consumption balancing;
 Management of generating capacity reserve;
 Capital construction;
 Science and education;
 Purchase and sale of system and ancillary services and electricity.
Four major business process: "Electricity transmission", "Technical dispatch control", "Management of electricity
production and consumption balancing" and "Management of generating capacity reserve" generate the most of the
Company's revenue.
Supporting Processes
The supporting business processes includes:
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PwC
Contracts, procurement and logistics;
Legal support;
Human resource management;
Finance and accounting;
Occupational health, health and environmental protection;
Management of administrative and office venues;
IT support.
5
The architecture of the business processes of the Company is given below:
Management
Processes
Figure 2.2.2 Business Architecture
Strategic
management
Corporate
governance
Electricity transmission
Planning,
budgeting and
monitoring
Pricing and stakeholders
relationship management
Technical dispatch control
Provision of access to NPG
Study and
selection of new
technologies
Management of electricity
production and consumption
balancing
Risk management,
internal control and
audit
Management of
generating capacity
reserve
Acceptance of energy to NPG
Operational
processes
Supply energy from NPG
Development of NPG
Prevention, isolation and elimination
of technical process failures
Development and issue of operational mode guidance
Maintenance of the parallel operation
with power systems of the
neighbouring states
Operation of the relay protection and emergency automation
Operation, maintenance and repair of NPG
Preparation of daily schedules
Physical settlement of imbalances
Calculation of losses, preparation of actual and forecast balances
Termination of services
Science and education
Supporting
Processes
Research and
development
Contracts,
procurement and
logistics
Knowledge
Management
Purchase and sale of system and
ancillary services and electricity.
Rationalisation
Activity
Legal support
Human
resource
management
Sale of system
services and
purchase of
ancillary services
Finance
and
accounting
Mega-processes (zero level processes)
PwC
Purchase and sale
of electricity to
compensate for
interstate trade
balance of
electricity flows
IT support
Capital construction
Development of detail
design and estimate
documentation
Occupational safety,
health and
environmental
protection
Projects
management
Management of
administrative and office
venues
First-level processes
6
2.2 Architecture of Applications in the Company
Based on the business architecture the Company uses a variety of information systems that are partially or fully
automate its core and financial operations.
Information Systems for Management Processes
For these Management business processes the Company uses information systems described in the table below:
Table 2.2.1 Applications of the Management Processes
Business Process
Software (SW) Product
Strategic management
Prognoz IS
System Class
Automated balanced scorecard system
Microsoft Office
Office software
Corporate governance
Microsoft Office
Office software
Planning, budgeting and monitoring
Oracle E-business Suite 11
Oracle Hyperion
Pricing and stakeholders relationship
management
Automated management reporting system
Microsoft Office
Microsoft Office
Risk management, internal control and
audit
Automated systems for budgeting and planning
SAP Business Objects
Microsoft Office
Study and selection of new
technologies
Enterprise resource planning system (ERP)
Oracle EAM
AuditModern
Office software
Office software
Office software
Automated asset management system (AAMS)
Automated system to support internal audit operations
Business processes associated with "Risk Management" and "Strategic Management" processes of the Company
have the potential to increase the level of automation.
Information Systems for the Operational Processes
The core processes are automated in the Company using the following applications:
Business Process
Electricity transmission
Management of electricity production
and consumption balancing
PwC
Software (SW) Product
System Class
Digital Map SW
Geographic Information System (GIS)
Diagnostika+ SW
Diagnostic system of power plants
Sicam PAS, Sicam PAS
Automated substation process management system
(ASPMS)
SINAUT Spectrum
SCADA / EMS
OIS
Automated dispatch control system (ADCS)
Commercial metering system (CMR)
Commercial metering system (CMS)
Balancing electricity market system
(BEMS)
BEMS automated systems
RASTR SW package
Dispatcher training simulator software package
Microsoft Office
Office software
SINAUT Spectrum
Automated dispatch control system (SCADA/EMS)
OIS
Automated dispatch control system (ADCS)
Commercial metering system (CMR)
Commercial metering system (CMS)
Balancing electricity market system
(BEMS)
BEMS automated systems
7
Business Process
Technical dispatch control
Management of generating capacity
reserve
Capital construction
Science and education
Purchase and sale of system and
ancillary services and electricity
Software (SW) Product
System Class
Microsoft Office
Office software
SINAUT Spectrum
Automated dispatch control system (SCADA/EMS)
OIS
Automated dispatch control system (ADCS)
Commercial metering system (CMR)
Commercial metering system (CMS)
Balancing electricity market system
(BEMS)
BEMS automated systems
ARPAW SW package, KRAR SW
package
Automated systems for calculation of relay protection
settings (CRPS)
"MUSTANG" SW package, "RASTR"
SW package, "DOKAR" SW package
Software systems for calculation of power system operation
modes
"Phoenix" SW package, "TVR 12"
SW package
Dispatcher training simulator software packages
Microsoft Office
Office software
OIS
Automated dispatch control system (ADCS)
SINAUT Spectrum
Automated dispatch control system (SCADA/EMS)
EAM
Automated asset management system (AAMS)
Microsoft Office
Office software
Corporate web portal
Knowledge base
"Idea-Innovation" IT portal
Idea management system
Oracle E-Business Suite 11
ERP
SCADA/EMS-class systems, which are used to automate the core processes such as "Electricity Transmission",
"Technical dispatch control", "Management of electricity production and consumption balancing", "Management of
generating capacity reserve", have a number of technical limitations, namely:
 The systems are not able to collect and process the data from electricity market participants and the
Company's substations using the obsolete technologies of telemetric data transmission;
 Requirements of SCADA / EMS to adequate amount of telemetric data limit the use of load flow calculation
functions and assessment of the status, which is why the subsystem of the dispatcher training simulator is
not functioning;
 Limited access to the system;
 Impossibility to integrate the system with other technological systems (CMR, BEMS);
 Insufficient "depth" of the archive subsystem to perform forecast calculations.
 Operation of the system is possible only based on a SPARC server platform and Solaris 8 operating system,
which is not supported by the manufacturer now.
 Impossibility to export data into the formats supported by office software.
Additionally, there is potential to automate the through processes, such as "Calculation of loss, preparation of
actual and forecast balances". The business process is carried out manually. As part of this process, the Company
also use a system of CMS type, which has a number of technical limitations. To address these limitations the
Company initiated a project to replace the current system.
As part of the "Capital Construction" processes the following processes: planning and approval of the investment
program, accounting of the actual project costs have been automated using EAM and ERP type systems ('Project
Costing' module), however there is potential for automation of the project management function.
The automation of the "Operation, maintenance and repairs" process is nearing completion in EAM (Automated
asset management system) information system. Commercial operation of the EAM system is scheduled for the first
quarter of 2014.
The "Science and education" process has been automated using corporate web portal and "Idea-Innovation" IT web
portal, which is a proprietary design of the Company. Currently these web portals are being integrated under the
"Creation and development of the Company's intranet portal" project (see section 3.8 Analysis of the current ITS
development projects and plans).
PwC
8
Information Systems for the Supporting Processes
For these business processes, the Company uses information systems described in the table below
Table 2.2.2 Applications of the Supporting Processes
Business Process
Finance and accounting
Human resource management
Contracts, procurement and logistics
Management of administrative and
office venues
IT support
Occupational health, health and
environmental protection
Legal support
Software (SW) Product
System Class
Oracle E-Business Suite 11
ERP
Lotus Notes
Document Management System (DMS)
Oracle E-Business Suite 11
ERP
Lotus Notes
Document Management System (DMS)
Microsoft Office
Office software
Oracle E-Business Suite 11
ERP
Lotus Notes
Document Management System (DMS)
Lotus Notes
Document Management System (DMS)
Microsoft System Center 2012
Service Desk
Lotus Notes
Document Management System (DMS)
Safety training course SW
The training system
Microsoft Office
Office software
Lotus Notes
Document Management System (DMS)
Paragraph IS
-
LOTUS Notes
Document Management System (DMS)
As part of the "Human Resource Management", there is a need to automate the following sub-processes:
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planning and administration of the employee training process (elaboration of training programmes for
each employee);
 monitoring of training programmes follow-up;
 record-keeping and analysis of training results.
The "Occupational health, health and environmental protection" process has the potential for automation in the
following sub-processes:
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PwC
planning of technical (safety) control actions
monitoring and control of the action results
reporting on results of the completed actions
9
Management Processes
Figure 2.2.2 Application Architecture
Strategic
management
Corporate
governance
Planning, budgeting and
monitoring
MRS (SAP
Business
Objects)
ERP
Hyperion
BSC (Prognoz IS)
Pricing and stakeholders relationship
management
Electricity transmission
Provision of access to NPG
Study and selection of
new technologies
Risk management, internal
control and audit
Audit Modern
EXCEL
ERP
Management of
generating capacity
reserve
Management of
electricity production and
consumption balancing
Technical dispatch control
RASTR SW
Acceptance of energy to NPG
Supply energy from NPG
Development of NPG
Operational processes
MUSTANG SW
pckg
ASPMS (Sicam PAS, Sicam SAS)
DOKAR SW
pckg
Operation of the relay protection and emergency
automation
Operation, maintenance and repair of NPG
RASTR SW pckg
Development and issue of operational mode
guidance
Maintenance of the parallel operation with power
systems of the neighbouring states
Tranining simulators ("TVR
12", "Phoenix")
OIS
SCADA / EMS (SINAUT
Spectrum)
Prevention, isolation and elimination of technical
process failures
ARPAW
KRAR
Diagnostika+ SW
GIS (Digital Map SW)
EXCEL
OIS
Preparation of daily schedules
BEMS
Physical settlement of imbalances
SCADA / EMS (SINAUT Spectrum)
OIS
Calculation of losses, preparation of actual and
forecast balances
EXCEL
CMS
BEMS
Termination of services
SCADA / EMS (SINAUT Spectrum)
OIS
Science and education
Research and
development
Knowledge
Management
Rationalisation activity
Supporting
Processes
Corporate
web portal
Contracts,
procurement and
logistics
Executive
administration
Branches
Purchase and sale of system and ancillary services and
electricity.
IT web portal
Human resource
management
Finance and
MRS (SAP
accounting
Business
Objects)
Sale of system
services and purchase
of ancillary services
Purchase and sale of
electricity to
compensate for
interstate trade
of electricity
ERP (Oracle E-business balance
Suite 11)
flows
Management of administrative
and office venues
DMS (LOTUS NOTES)
Suite 11)
Projects
management
ERP (EAM)
Occupational safety,
health and
environmental
protection
MS System Center
2012
ERPMIS
(Oracle E-business
High automation level
PwC
IT support
Capital construction
Development of detail
design and estimate
documentation
Safety training
course SW
EXCEL
Legal support
Paragraph IS
Average automation level
10
2.3 Data Architecture
Data architecture of the Company is a collection of different information flows from the core operations
systems and automated financial and economic operations systems.
For the purpose of management and financial reporting, the Company accumulates and consolidates information
from 9 MES branches and 74 substations. For the most part the data is transferred automatically. In some cases, the
existing information systems used by the Company do not meet the requirements of the business due to technical
limitations of the software.
Current data architecture of the Company has the following shortages:
1) Redundancy and duplication of data, including data about the objects of accounting and network
modelling;
2) Lack of integration between information systems;
3) Lack of a common information space with a single and unified reference data;
4) Manual processes that require automation;
Below is the data architecture with the following types of data (see Figure 2.3.1):
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core operations data;
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financial and administrative data.
Figure 2.3.1 Data Architecture
SAP
Balanced Scorecard (BSC)
Executive
administration
Flat files (.xls, .txt, .doc,
Diagnostika+
etc.)
BEMS
RASTR
OIS
SCADA / EMS
ERP
Oracle Hyperion
ERP
Oracle
Hyperion
DMS
MUSTANG
DOKAR
Flat files (.xls, .txt, .doc,
etc.)
Flat files (.xls, .txt, .doc,
etc.)
SW
GIS
BEMS
CMR
Simulators
Branches
and affiliates
DMS
OIS
SCADA / EMS
RASTR
GIS
BEMS
CMR
Flat files (.xls, .txt, .doc, Flat files (.xls, .txt, .doc,
etc.)
etc.)
Diagnostika+
SW
OIS
TES,
substations
SCADA
Diagnostika+
SW
ERP
ASPMS
GIS
Core operations data
Automatic data
transfer
PwC
CMR
Flat files (.xls, .txt, .doc,
etc.)
financial and administrative data
Non-automatic data
transfer
Duplication of data
streams
11
2.4 Technology Architecture
To ensure reliable operation of the National Power Grid the Company applied sophisticated technological solution
for both IT and telecommunications. Technical infrastructure of the Company is designed as a centralized control
structure. However, hardware and software component of these designs do not fully meet the current needs of
business, namely, the throughput capacity of the existing data channels (corporate data network) is low with high
levels of wear-and-tear of:
 personal computers fleet;
 Server hardware;
 Active network equipment
2.4.1
Corporate Data Network (CDN)
CDN of the Company consists of the following three segments:
 Logical Architecture of the Company's CDN;
 Backbone channels;
 Local area networks (LANs) of the branches.
Logical Architecture of the Company's CDN
Logical Architecture of the Company's CDN consists of three levels:
 Executive administration;
 MES branches;
 Substations.
The units of the Company's logical architecture communicate using the following technologies:
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leased communication channels;
PLC channels;
Radio Relay Communication (RRC) or microwave channels;
FOCL;
Satellite communication channels (as a backup)
Backbone Channels
Now, the utilisation and loading of the backbone communication channels is high; this trend in future may lead to
reduced reliability of NPG operations. The Company uses the following communication technologies:
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PwC
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Fibre-optic communication lines owned by the Company representing 6% of all backbone links.
These links have a wide bandwidth (up to 10 Gbps) and are limited only by the capacity of the switching
equipment. Fibre optic lines are constructed as a component of the electricity transmission lines and
protected by the ground wire. As a result, these lines do not depend on the external conditions (weather,
noise, etc.). Extent of the fibre optic lines owned by the Company is 2329 km;
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Relay lines (RRC) represent 31% of all backbone links. This kind of communication technology is based
on the multiple relay of radio signals. The Company has two types of connections: point-to-point and
point-to-multipoint. The throughput capacity of such link is 32 to 256 Kbps depending on the
environmental conditions (weather, terrain, interference, etc.). These links do not satisfy the needs of the
Company because they do not provide sufficient bandwidth for optimal performance of business (2 Mbps)
and they are dependent on external conditions such as weather, interference, etc. These channels are
mainly used for substation - MES communication. The current level of utilisation of these data channels is
100%.
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PLC channels (PLC). This type of communication technology uses power lines as a medium for data
transmission. The throughput capacity of such link is 14 to 28 KBps depending on the environmental
conditions (weather, terrain, interference, etc.). PLC communication channels share is 43% of all
communication channels in the Company. The throughput capacity of such link is 14 to 28 Kbps depending
on the environmental conditions (weather, terrain, interference, etc.). These links do not satisfy the needs
of the Company because they do not provide sufficient bandwidth for optimal performance of business (2
Mbps) and they are dependent on external conditions such as weather, interference, etc. These channels
are mainly used for substation - MES communication. The current level of utilization of these data
channels is also 100%.
Leased Links of the Third-Party Communication Providers This kind of communication is primarily
used for data transfer between the head office (EA) and the branches and between branches and substations if
covered by the provider. 128 kbps to 2048 kBps at the level of substation, TES-MES, RDC; 2048 kBps to 4096
kBps at the level of MES, RDC - Executive Administration, NDC SO. The share of the leased channels is 20%
12
of all communication channels in the Company. Twenty percent (20%) of all communication channels (leased
communication channels - bandwidth - 2Mbps) partially meet the needs as they provide the bandwidth
necessary for optimum business performance (2 Mbps), but for the moment their usage is 100% and they will
not meet Company's needs if the data flow is increased. These communication channels are mainly used for
communication between Executive Administration and MES branches. The current level of utilisation of these
data channels is 93%.
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Satellite communication channels (as a backup) Satellite equipment necessary to connect to CDN
is installed in the head office (EA), all MES branches and substations. The Master station is installed in the
EA, the standby master station is installed in Almatinskiye MES branch. The satellite communication is
based on the outdated SKY WAN technology, which is based on Frame-Relay technology. This technology
does not meet the current needs of the Company in terms of throughput capacity (32-256 KBps) and its
dependence on operation of the master station. The company was partially purchased new satellite
equipment (master station) that uses modern technology SKY EDGE (IP MPLS). Until the spring of 2013
the Company leased frequencies for satellite communications from Eutelsat provider, starting from the
spring of 2013 the Company leases frequency bands from Kazsat 2.
The required minimum throughput capacity is 2 MBps:
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19% of the channel is necessary for internal traffic (ldap, icmp, ftp);
16% of the channel is necessary for applications (ERP, web, Solomon);
8% of the channel is necessary for technological systems (SCADA, telemetry, OIS);
35% of the channel is necessary for mail services;
7% of the channel is necessary for Internet services;
8% of the channel is necessary for voice transmission;
The basic technology of the corporate data network is MPLS. This technology enables the integration of
different type of traffic with guaranteed quality of service. It also provides the possibility to build the networks for
different purposes and interaction protocols. On the physical level, the core of the CDN is based on fibre optic
technology. Cisco Catalyst 6506 are used as the backbone switches.
The distribution level of the corporate data network is based on Cisco Catalyst 6506 Series switches. For the
most part the Company's facilities are connected to the backbone using dedicated fibre optic cables. Some facilities
are connected using leased dedicated frequency in the DWDM network of Kazakhtelecom provider. The "last mile"
in all cases is provided using Energoinform's resources. All communication channels are redundant.
Logical Architecture of the Company's CDN
Logical architecture of the network is based on VPN technology. For informational interaction there is a
possibility of flexible and easy creation of virtual private networks supporting TCP/IP routing protocol at the
boundary of the network and switched traffic within the network.
Currently the centralized network management covers the branches that are connected to CDN. The
network is administered by the employees (administrators) of Energoinform trained in operation and
administration of the network equipment. The Company has a service contract for the network equipment with the
equipment supplier - Cisco. For efficient management of the network the Company uses specialized software of the
centralized administration of network devices by Cisco.
Local area networks (LANs) of the branches
Local Area Networks (LANs) in the branches and substations are based on Ethernet technology using
various physical communication lines (fibre-to-fibre, twisted pair (5e and higher), radio) and switching equipment
by Cisco) (routers, switches, hubs, and radio access facilities) and others.
Local networks of the branches built using CDN resources provide an opportunity for virtual private networks.
2.4.2
Server hardware
Dell, Hewlett-Packard, Fujitsu brands, represents server hardware of the Company. The total number of
servers is 298 units (see Table 2.4.2.1). The administration management of server hardware is decentralized in each
MES branch, thus support is provided by local IT administrators. It is also worth noting that in all MES branches
the number of servers with life in service of 5+ years is 64% (see Figure 2.4.2.1).
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Figure 2.4.2.1 Current Level of Depreciation of Server Hardware
Depreciation of Server Hardware
5+ years
3-5 years
less than 3 years
16%
19%
20%
55%
64%
23%
Executive administration
MES branches
List of server hardware is presented in Table 2.4.2.1
Table 2.4 .2.1 Server Hardware in the Company
MES branch
Executive
Administration (EA)
and National
Dispatch Centre of
the System Operator
(NDC SO)
Almatinskiye MES
Severnye MES
Zapadnye MES
Vostochnye MES
Tsentralnye MES
Akmolinskiye MES
Sarbaiskiye MES
Aktyubinskiye MES
Yuzhnye MES
Total
Total number of
server hardware
Physical
Servers
Virtual
Servers
Total number
of server
hardware
administrator
s
Average number of
server hardware
per one
administrator
138
43
95
8
17.5
18 (46)
20 (57)
9 ( 38 )
25 ( 44 )
16 ( 16 )
7 ( 31 )
18 (46)
21 ( 43 )
26 ( 56 )
298 ( 377)
38
53
14
33
13
28
41
38
51
352
8
4
9
11
3
3
5
5
5
148
2
2
2
3
1
3
3
4
2
30
23
28.5
11.5
14
16
10.3
17
10.75
28
16.6
* Data is provided by Energoinform
In order to optimize IT costs the Company uses VMWare virtualization platform. Now, this technology can
reduce the load on the hardware. The load of the server hardware in the MES branches ranges from 2% to 55%.
Current virtualization level of the server hardware fleet is depicted below:
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14
Figure 2.4.2.2 Current Server Hardware Virtualization Level in the Executive Administration
Virtualization of Server Hardware
Physical Servers
Virtual Servers
33%
68%
67%
32%
Executive administration
MES branches
Server Room
The Executive Administration office has a specialized space to accommodate critical server and network
equipment, as well as telephone exchanges. The size of this space can accommodate all server hardware that is
crucial for operation of all information systems of the Company. The server and network hardware is located in
specialized racks (cabinets). The room is equipped with air-conditioning, fire extinguishing, CCTV and fire alarm
systems. To ensure a continuous power supply of equipment in the server room, there are sources of the
guaranteed (uninterruptible) power supply. The power supplies can provide uninterrupted power supply for at
least 3 hours of equipment operation (battery life).
Workstations Fleet
The fleet of the workstations Company has a high degree of wear and tear. Except for the head office (Executive
Administration), virtually all over the Company the most of the personal computers has a high degree of
depreciation (see Table 2.4.2.2)
Table 2.4 .2.2 Depreciation Status of the Workstations
Branch
Total number of personal
computers
EA
470
The share of personal
computers to the depreciation
of> 90%
23%
National Dispatch Centre of the System Operator (NDC SO)
129
60%
Akmolinskiye MES
Aktyubinskiye MES
242
155
62%
59%
Almatinskiye MES
285
68%
Vostochnye MES
250
69%
Zapadnye MES
Sarbaiskiye MES
122
289
47%
67%
Severnye MES
287
56%
Tsentralnye MES
213
63%
Yuzhnye MES
Representative office
284
13
65%
61%
Source: * Data is provided by Energoinform
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Figure 2.4 .2.3 Current Depreciation Level of the Workstations by Year
Depreciation of Workstations
5+ years
1%
3-5 years
less than 3 years
6%
31%
77%
63%
22%
Executive administration
MES branches
In order to update the equipment, the Company buys new workstations. However, the procurement of IT
equipment in most cases is not standardized and not unified.
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2.5
2.5.1
Information Security Architecture
Information Security Management
Information security management in the Company is the function of the separate structural unit - the Security
Service. With regard to the information security, this structural unit is responsible for the following functions:
 development of regulatory and administrative documentation and requirements for information security;
 liaison between business units and TITMO/DIT Energoinform in terms of determining the needs for
information security;
 monitoring of compliance with the information security requirements.
As part of the information security function, the Company takes into account the following main areas:
 Information Security Management
 Technical support of information security;
 Monitoring and responding to information security incidents.
As part of the management of information security, the Company developed the following documents governing the
IS function:
 Methods of assessing information security risks in KEGOC
 Access control rules in KEGOC
 Password policy in KEGOC
 Anti-virus management rules in KEGOC
 Information security rules for e-mail operations in KEGOC.
Currently the Company has plans to introduce Information Security Management System (ISMS) for the financial
and economic unit. IS certification audit is scheduled in 2014.
2.5.2
Technical Support of the Information Security Function
The IS technical support is a function of Energoinform. This function is the process of providing information
security using software and hardware mechanisms to protect information assets of the Company.
The main information security actions in the Company now are:
 anti-virus protection of corporate data network in the Company and the branches using McAfee's software
system for server hardware and Eset Node for workstations to protect them against malware.
 demilitarized zone (DMZ), to improve the information security of corporate networks and resources of the
Company that have access to the Internet. DMZ is implemented based on Cisco Catalyst 6506 hardware
and software system of packet filters (firewalls).
 information security of the networks in the structural units of the Company is based on the packet traffic
filtering. Traffic filtering is implemented based on Cisco Catalyst 6506 hardware and software system.
Application of this technology together with VPN technology has a positive impact on information security
in various segments of CDN and the Company as a whole.
2.5.3
Monitoring and Responding to Information Security Incidents.
Monitoring and responding to security incidents is the function of the Information Technologies Department (ITD)
of Energoinform and it is implemented as a hardware and software system that performs the following functions:
 Centralized collection, storage and analysis of security logs;
 Detection of incidents in real time;
 Prioritizing incidents;
 Automating the process of monitoring of incidents correction;
 Creating reports on regulatory compliance and audit.
This system covers server and active network equipment within the Executive Administration and MES branches.
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2.6 Management of IT Processes and Services
Review of existing IT processes in the Company
The Company is constantly improving its IT processes. In particular, under "AUSMS 1" and "AUSMS 2" projects
the Company developed and approved a list of documents regulating the IT activities in the financial and economic
unit. For some items: Service Desk and Change Management, the IT processes of the Company has quite a high
level of maturity. However, the analysis of the current IT processes maturity in the Company for most other areas
shows that in comparison with the sector peers the IT processes have the potential for further improvement.
Figure 2.6.2 shows the current level of maturity of IT processes in the Company compared to its sector peers.
Figure 2.6.2 Assessment of the IT Processes Maturity in the Company Using CobIT Methodology.
IT Processes
PO1 Define a Strategic IT Plan
DS1 Define and Manage Service Level
PO2 Define the Information Architecture
DS2 Manage External Providers
PO3 Determine the Technological Direction
DS3 Manage Performance and Capacity
PO4 Define the IT Organization and Relationships DS4 Ensure Service Continuity
PO5 Manage the IT Investments
DS5 Ensure Systems Security
PO6 Communicate Management Aims and
Directions
DS6 Identify and Attribute Costs
PO7 Manage Human Resources
DS7 Educate and Train Users
PO8 Manage Quality
DS8 Assist and Advice IT Customers
(Service Desk)
PO9 Assess Risks
DS9 Manage Configurations
PO10 Manage Projects
DS10 Manage Problems and Incidents
AI1 Identify and Select Automation Solutions
DS11 Manage Data
AI2 Acquire and Maintain Application Software
DS12 Manage Facilities
AI3 Acquire and Maintain Technology
Architecture
DS13 Manage Operations
AI4 Document and Maintain Procedures
ME1 Monitor and Assess IT Performance
AI5 Acquire IT Resources
MЕ2 Monitor and Assess Internal
Controls
AI6 Manage Changes
MЕ3 Ensure Regulatory Compliance
ME4
ME3 5,00
4,50
ME2
4,00
ME1
3,50
DS13
3,00
2,50
DS12
2,00
1,50
DS11
1,00
DS10
0,50
0,00
DS9
PO1
PO2
PO3
PO4
PO5
PO6
PO7
PO8
PO9
PO10
DS8
AI1
DS7
AI2
DS6
AI3
DS5
DS4
DS3
AI4
AI5
DS2
DS1
AI7
AI6
Текущий
уровень
ИТ
Current
maturity
of зрелости
IT Processes
процессов
Уровеньofзрелости
ИТ процессов
Maturity
IT Processes
in global sector peers
в мировых энергетических компаниях
AI7 Implement and Accredit Systems and Changes MЕ4 Provide IT Governance
Provision of IT Services.
The Telecommunications and Information Technology Management Office (TITMO) coordinate the IT services in
the Company; all IT functions are outsourced. The day-to-day support and development of the ITS is the function
of Energoinform, the subsidiary of the Company. TITMO, in turn, is involved in the planning, monitoring and
coordination of the ITS development projects.
There is a list of IT services agreed upon and approved by the business units of the Company and Energoinform.
Energoinform provides the following services to the Company:
 maintenance of the telecommunications equipment of the National Power Grid (NPG);
 maintenance of the operational systems in the equipment of the NPG;
 maintenance of the information and communication systems in the equipment of the NPG;
 software support for the equipment of the NPG;
 technical consulting services in the field of information and communications system.
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The list of other IT services procured by the Company is given in Table 2.6.2
Table 2.6.2 List of IT services
Company Name
List of services
Amount (tenge per
year, including VAT)
Kazakhtelecom
KazTransCom
Lease of communication channels
Lease of communication channels
86 778 61248
1 046 97600
DARIN TEL
9 847 17605
Kar-Tel
Satellite communications for emergency field teams
Uninterrupted satellite communication system TURAY
Stable communication in Kazakhstan
Worldwide roaming
Interface with the GSM systems
Mobile phone services
GSM Kazakhstan
Corporate mobile phone services
2 459 9980
TransTelecom
Lease of the Ethernet backbone data transmission within the city limits (from 18 167 81541
the Company’s head office to Isker business centre)
Lease of communication channel for IP VPN in Astana
Lease of Astana-Petropavlovsk digital channel
Lease of communication channel for IP VPN in Astana
1 799 99970
Source: data is provided by the Company for 2013
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2.7
Overview of the Existing Model of IT Governance
The existing ITS Governance model is a set of IT functions according to the reference model of IT Governance (PwC
IT Governance). According to the reference model in the Figure below, TITMO fully or partially fulfils the following
functions:


With regard to IT Management: IT Management, Business Relationships Management, Suppliers
Management, and Service Level Management
With regard to IT Administration: IT Finance Management and IT Procurement
All other functions are fully or partially fulfilled by Energoinform.
Planning and technologies
Strategy and
planning
Planning
Architecture
management
IT Management
Business relationships
management
Suppliers management
Service level
management
Change management
Quality, security, regulations compliance
Administration
IT standards and
policies
Regulations
compliance
management
Quality management
Risk management
Security management
IT administration
IT finance
management
IT staff management
IT resource
management
IT acquisition
Operating activity and user support
Software support
Data management
Infrastructure
management
Configuration
management
Security
User servicing
Development and testing
Operations
Software
development
The function is fully
implemented
Testing
The function is partially
implemented
The function is missing
According to the Regulations on the TITMO, it fulfils the following functions:

provide methodological assistance to KEGOC's structural units with regard to hardware-software packages,
communication and periphery devices, and information systems used in KEGOC;
 participate in development of technical requirements for ITS;
 participate in development and implementation of KEGOC's long-term development strategies within its
area of responsibility;
 cooperate with KEGOC's structural units to work out and coordinate information technology strategy
(hereafter referred to as the "IT strategy");
 implement and monitor the programme of Information and Telecommunication System (ITS) development
in KEGOC in accordance with KEGOC's IT Strategy.
However, quality implementation of the tasks is difficult due to insufficient number of the TITMO personnel.
For instance, according to Gartner survey, the percentage of IT specialists of the total number of employees in the
global energy companies is 4%. It shows that the number of the IT specialists in the Company is insufficient.
Considering the plans of the Company's management to sell the shares of Energoinform subsidiary, this issue may
become critical for the Company.
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Figure 2.7.1 Percentage of ITS specialists of the total number of Company employees
4,5%
4,0%
4,0%
3,5%
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
0,4%
0,0%
KEGOC
Industry average
*Not including ITS specialists in Energoinform
One of the main disadvantages is that the Company does not have an ITS Committee, which would make decisions
in the sphere of ITS strategic management.
The Company's ITS projects are initiated by various business units without adequate involvement of IT specialists.
This happens because the Company does not have an IT Project Office. Eventually, this may result in some IT
projects that will not meet the Company's strategic goals.
It is important to mention that there is no Chief Information Officer to represent the interests of IT Service on the
Management Board level. According to PwC survey of the peer companies, in more than half of such companies the
CIO report directly to the CEO. Then there is Chief Financial Officer (CFO) and Chief Operations Officer (COO)
(see Figure 2.7.1).
Figure 2.7.2 Direct Reporting of CIO in Peer Companies
General Director
51,00%
Managing Director - Economics
19,00%
Managing Director - Operations
11,00%
Others
19,00%
0%
10%
20%
30%
40%
50%
60%
Source: PwC survey
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2.8 ITS in the Peer Companies
An analysis of utility companies worldwide shows that the main driver in the achievement of the strategic goals
associated with the NPG reliable operation is the development of corporate highly reliable telecommunication
lines.
At present, utility companies tend to replace the outdated analogue communication equipment with the state-ofthe-art digital FOCL in order to improve the efficiency of the Company's operations and the reliability of electrical
networks.
For instance, today most of the large companies in the USA totally refused to use analogue communication
facilities.
The example of using communication channels by the Federal Grid Company of Unified Energy System in the
Russian Federation (FGC UES), which has similar operation environment, shows that the total length of the
backbone and distribution FOCL of the largest power grid company in Russia was over 33,500 km in 2011,
including:



18,500 km – constructed by the company;
8,500 km – resources that the company gets for the right to use its power lines corridors;
6,500 km – resources that the company trade or lease from the third party organisations.
The experience of constructing communication lines under concessionary agreements with other
telecommunication companies is also exemplary. For instance, in 2010, FGC UES commissioned the FOCL line
from Chelyabinsk to Khabarovsk, which was constructed jointly with Rostelecom. In this project an optical ground
wire (OPGW) was used for the OHTL construction. Successful implementation of the project allowed Rostelecom to
connect dozens of cities in Ural, Siberia and the Far East regions to the backbone network, and FGC UES to connect
over 100 power industry facilities with digital communication lines in order to ensure the operation of automated
dispatch, process and corporate management systems.
Other ITS Development Projects
Utility companies tend to introduce the following automated informational systems:
 Safety management system;
 Suppliers management system;
 Project management system;
 Mobile and on-site facilities monitoring system;
 Electricity demand forecasting system.
The description of these systems can be found in Table 2.8.1
Table 2.8.1 Description of Automated Information Systems
System types
Description
Security management systems;
Designed to:
 enhance the security at power facilities including anti-terror security and public safety;
 reduce emergency risks;
 integrate security systems with the control automation facilities;
 integrate safety engineering tools (video cameras, perimeter alarm devices, access control
management systems, etc.) into an integrated information environment, and provide various
levels of access to authorised personnel (facility, region and central).
Suppliers management systems
The systems are focused on optimization of business processes and reduction of aggregate costs for
material and technical supplies and service procurement, and designed to:
 establish a strategy and forecast the efficiency of relationships with suppliers via conventional
and electronic communication;
 automate the logistic chain;
 find optimal partners that would best fit the company's business requirements;
 perform on-line monitoring and assessment of suppliers' performance.
Project management systems
Designed to:
 automate the project management processes, and analyse and assess the project
implementation opportunities;
 plan the projects;
 coordinate implementation of the projects, programmes and project portfolios;
 ensure optimal distribution and management of project resources;
 provide project implementation reports with reference to the initial schedule;
 integrate with the financial flows and human resources management systems.
Mobile
and
on-site
monitoring systems
PwC
facilities
The systems include hardware-software packages for monitoring of mobile (motor and specialised
vehicles, line crew personnel on foot) and on-site facilities (OHTL towers, buildings and other).
The monitored facilities are equipped with navigation devices using GPS/GLONASS satellite
systems. They are monitored on the dispatch panel with the help of a software which provides
the following data about the facilities:
22
System types
Description
 location of the facilities on a real-time basis on the map;
 speed and direction of travel of the mobile facilities;
 history record of their movement and status changes;
The systems shall improve the efficiency of the Company's resource management in case of
emergencies of natural or man-caused character.
Electricity
systems
demand
forecasting
Designed to forecast the electricity demand and the network loading. The systems shall calculate the
future amount of electricity consumption based on the statistical data on electricity generation
and consumption, short-term and long-term forecasts of the region development.
Results of the comparative analysis of ITS expenses in the Company and in other global utilities in 2012 conducted
by the APQC international survey organization are shown in the figure below:
Figure 2.8.1 Comparative Analysis of the Company's ITS Expenses to Revenues in 2012
Comparative analysis of ITS expenses to revenues of the Company
3,50%
3,00%
2,50%
2,00%
1,80%
1,50%
Energoinform
3,30%
KEGOC
1,00%
1,40%
0,50%
0,80%
0,70%
0,00%
KEGOC
Low efficient IT services
Median
High efficient IT services
Source: APQC analysis
According to APQC data, the approximate amount of ITS expenses in the utility companies worldwide was 1.4% of
the total income of the companies. However, IT service could be considered highly efficient when this ratio is at
0.7%. Moreover, IT service with low efficiency is at 3.3%. As for KEGOC, this ratio does not exceed 2.6%, indicating
the adequate level of IT investments efficiency.
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3. Strategic Goals and Key Business
Drivers of the Company
3.1
Strategic Goals of the Company
According to the Long-Term Development Strategy until 2025, KEGOC shall become a world-class energy company
and the regional centre of expertise in the power industry.
Company’s mission is to ensure reliable operation and efficient development of Kazakhstan Unified Power System
(UPS) in accordance with up-to-date technical, economic, environmental and occupational health and safety
requirements.
These vision and mission of the Company can be implemented through achievement of the key strategic goals set
for the Company's Management:
1. Ensure the reliable operation of the Kazakhstan National Power Grid in accordance with the public needs;
2. Develop the NPG for the benefit of the Company's business in accordance with the economic needs of
Kazakhstan;
3. Enhance the efficiency of the Company's operations;
4. Increase the shareholder value of the Company;
5. Improve and enhance the efficiency of the electricity market in Kazakhstan;
6. Promote corporate governance and ensure sustainability;
7. Achieve stable partner relationships with the utility companies of neighbouring countries.
In order to achieve each of the strategic goals, the strategic initiatives were determined under the long-term
development strategy. The complete list of the strategic goals and targets is shown in the figure below.
Mission of KEGOC
Ensure reliable operation and effective development of Kazakhstan Unified Power System (UPS) in accordance with up-to-date technical, economic,
environmental and occupational health and safety requirements
Vision of KEGOC
By 2025, KEGOC will become a world-class company and the regional centre of expertise in the power industry
Strategic goals of the KEGOC long-term development strategy
Ensure reliable
operation of the
Kazakhstan National
Power Grid in
accordance
with the state needs
Develop NPG
for the benefit of
the Company's
business in
accordance with the
economic needs of
Kazakhstan
Enhance the
efficiency of the
Company's
operations
Ensure the increase
in the shareholder
value of the
Company
Improve and
enhance the
efficiency of the
electricity market
in Kazakhstan
Promote corporate
governance and ensure
sustainability
Achieve stable
partnership
relationships with the
utility companies of
neighbouring countries
Strategic initiatives of the KEGOC long-term development strategy
Quality performance
of its functions by the
System Operator
Quality operation and
maintenance of the
existing assets in
order to ensure
reliable operation of
NPG
Upgrade of the
electricity
transmission network
Construction of the
electricity
transmission lines
to cover the
transmission
capacity needs of
NPG
Innovations
development and
introduction
Improvement of
the efficiency of
operating activity
Improvement of
the efficiency of
administration
activity
Optimization of the
level of electricity
transmission losses
Net profit growth
Improvement of the
customer servicing
level
Supporting the
tariff policy and
electricity
legislation
improvement
Improvement
and enhancement
of the efficiency of
the electricity
market in
Kazakhstan
Maintenance of
shareholders rights and
development of
stakeholder relationships
Maintenance of
parallel operation
with power systems of
neighbouring states
Professional development
of personnel
Enhancement of
personnel loyalty
Maintenance of
occupational safety
Promotion of the
efficient electricity
market relations with
the neighbouring
countries
Minimisation of the
environmental impact of
the Company’s operations
Source - KEGOC's long-term development strategy until 2025
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3.2 Key Business Drivers and Their Prioritizing
Key business drivers of the Company include:

Reliable operation of the National Power Grid;

NPG and Company development;

Increase in the shareholder value of the Company.
These business drivers reflect the strategic goals and initiatives of the Company's Management.
Figure 3.2.1 Company's Strategic Goals Cascading by Business Drivers
Strategic goals of the KEGOC long-term development strategy
Ensure reliable
operation of the
Kazakhstan National
Power Grid in
accordance
with the state needs
Achieve stable partner
relationships with the
utility companies of
neighbouring
countries.
Improve and
enhance the
efficiency of the
electricity market
in Kazakhstan
Develop the Company and NPG
Increase the
shareholder value
of the Company;
Enhance the
efficiency of the
Company's
operations
Promote corporate
governance and ensure
sustainability
Increase the shareholder value of the Company
lower
Priority
higher
Reliable operation of NPG
Develop NPG
for the benefit of
the Company's
business in
accordance with
the economic
needs of
Kazakhstan
Reliable operation of NPG is a key
factor of the Kazakhstan's
economic operation
Kazakhstan NPG development
(including innovations
development) is one of the
underlying criteria for the
Kazakhstan's economic
development
Increase in the shareholder value of the
Company is one of the most important
requirements of the Sole Shareholder
In descending order, the "Reliable operation of the NPG" is a business driver of the highest priority. This business
driver is the core driver for the functioning of the Kazakhstan economics.
According to the requirements of the Sole Shareholder Samruk-Kazyna Sovereign Wealth Fund, the next on the list
of business driver is the "Increase in the shareholder value of the Company".
The "NPG and Company development" business driver also has a significant impact on the Company development.
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25
4. The List of Business Requirements for
ITS
Business requirements for ITS depend on the current operational activities of the Company. The existing IT
architecture does not fully satisfy the current and future needs of the Company. In this regard, IT unit sets a
number of the most critical IT targets, which were initiated by the structural units of the Company to improve IT
services maturity (including through the up-to-date IT infrastructure) and automation of the business process,
namely:








Improvement of the data transmission rate and quality in CDN;
Upgrade of the server hardware and personal computers;
Upgrade of SCADA/EMS;
Upgrade of commercial metering system;
Introduction of the process of business continuity assurance in case of an emergency situation;
Automation of personnel training process;
Optimization of the management and financial reporting process.
The priorities of the business requirements for ITS are shown in the figure below:
Figure 4.1. Priority of the Requirements for ITS
Requirement of Business to ITS
lower
higher
Upgrading of automated dispatch control system (ADCS)
Upgrade of commercial metering system
Improvement of the data transmission rate and quality in CDN
Automation of monitoring process and electricity losses analysis
Introduction of business continuity assurance in ITS business in case of emergency
situations
Automation of energy consumption and power balances planning
Automating the process of electronic document management system
Automation of technical control and occupational safety
Optimization of IT management model
Optimisation of IT assets management process
Increasing of the level of information security
Automating the process of report generation
Automating of the process of risk management and balanced scorecard
Development and extension of OeBS features
Infrastructure development for Information and telecommunications system
Such prioritizing of business requirements results from the assessment of the impact of each of these
requirements on three key business drivers of the Company.
The list of the requirements for ITS with account of business drivers is given in the table below:
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26
Table 4.4.1. Level of ITS Requirements Impact on the Key Business Drivers
Requirements for ITS
Key business drivers of KEGOC
Reliable operation of the
National Power Grid
Company and NPG Increase in the
shareholder value of the
development
Company
Upgrading of automated dispatch control system
(ADCS);
Upgrade of commercial metering system
Improvement of the data transmission rate and quality in
CDN
Automation of monitoring process and electricity losses
analysis
Introduction of the process of business continuity
assurance in case of an emergency situation
Automation of energy consumption and power balances
planning
Introduction of Document Management System in
KEGOC Branches and its Integration with the DMS of the
head office
Automation of technical control (safety )and
occupational health
Optimization of ITS Management Model
Optimization of the licensing and software update
process
Increasing of the level of information security
Optimization of the management and financial reporting
process
Automating of the process of risk management and the
development of a balanced scorecard
Development and extension of OeBS features
Development of ITS infrastructure
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5. Results of a Comprehensive Analysis
of the Current State of Company's ITS
Based on the ITS comprehensive analysis we can see key strong and weak points as well as development
opportunities and threats for the information and telecommunication system of the Company.
(see Table 5.1).
Table 5.1 Results of SWOT Analysis
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6. Target IT Architecture of the
Company
IT Mission of the Company is to develop and enhance the security of ITS to achieve the strategic goals of the
Company.
IT Vision of the Company is to be a highly efficient business partner who suggests innovative solutions and
follows best practices in the sphere of IT and telecommunications.
Successful achievement of the strategic IT goals and IT initiatives will contribute to the achievement of the strategic
goals and business drivers of the Company.
Under the present strategy based on the analysis of the key impact factors (GAP analysis of the current and target
state, requirements of the shareholder and structural units of the Company, comparative analysis of ITS and peer
companies, etc.) a target IT architecture was determined with the following models:

Business architecture;

Application architecture;

Data architecture;

Technology architecture;

Security architecture.
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6.1
Business Architecture of the Company
According to the approved business strategy, the current operations of the Company will be completed with the
following business processes:
 Financial settlement of electricity imbalances.
 Purchase and sale of renewable energy.
The process of "Financial settlement of electricity imbalances" will continue the process of transition to an
electricity balancing market.
By 2016, the Company plans to bring the electricity balancing market from the simulation mode to the full-scale
operation. Within these targets, energy market participants will have a service of the financial settlement of hourly
imbalances in the Unified Power System of Kazakhstan.
The next process of "Purchase and sale of renewable energy" will be introduced in accordance with Kazakhstan Law
No. 127-V dated 04 July 2013 ‘On changes and amendments to some legal acts of the Republic of Kazakhstan
relating to renewable energy support’. This process will include the guaranteed and centralized electricity purchase
from all renewable energy resources (who have chosen such support scheme) in accordance with the fixed rates.
Within
these
targets,
the
Company
established
a
separate
legal
entity.
The Financial Settlement Centre for Support to Renewable Energy Sources LLP shall be a financial settlement
centre in accordance with the Kazakhstan Government Resolution No. 1281 dated 29 November 2013.
The target business architecture of the Company is shown in the Figure 6.1.1:
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Management Processes
Figure 6.1.1 Target Business Architecture
Strategic
management
Corporate
governance
Electricity transmission
Planning, budgeting
and monitoring
Pricing and stakeholders
relationship
management
Technical dispatch control
Provision of access to NPG
Study and
selection of new
technologies
Management of electricity
production and consumption
balancing
Risk management,
internal control and audit
Management of
generating capacity
reserve
Acceptance of energy to NPG
Supply energy from NPG
Development of NPG
Prevention, isolation and elimination
of technical process failures
Maintenance of the parallel operation with
power systems of the neighbouring states
Operation, maintenance and repair of NPG
Operational
Processes
Development and issue of operational mode guidance
Operation of the relay protection and emergency automation
Preparation of daily schedules
Physical settlement of imbalances
Calculation of losses, preparation of actual and forecast balances
Financial settlement of electricity
imbalances
Termination of services
Science and education
Supporting
Processes
Research
and
develop
ment
Knowledge
Management
Contracts,
procurement and
logistics
Rationalisation
activity
Legal support
Purchase and sale of system and ancillary services
and electricity
Sale of system
services and
purchase of
ancillary services
Human
resource
management
Finance
and
accounting
Existing processes
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Purchase and sale
of electricity to
compensate for
interstate trade
balance of
electricity flows
IT support
Purchase and sale
of renewable
energy
Capital construction
Development of
detail design and
estimate
documentation
Occupational safety,
health and
environmental
protection
Projects
management
Management of
administrative and office
venues
New processes
31
6.2 Application Architecture
Application Management in the Management Processes
For the Company's Management to make adequate management decisions, the Company will implement the
following IT projects as part of the Management Processes:

Introduction of a corporate Data Warehouse (DWH) Business Intelligence system. This project will be a
part of the IT initiative on implementation of the Enterprise Application Integration System (hereafter
referred to as EAIS).

Development of Automated Balanced Scorecard System;

Automation of the Risk Management System;
The results of these initiatives will include:

immediate access to reliable information about the key performance indicators of the Company;

improved automation level of planning, tariff making and strategic management processes.



support of the Company's strategic goal to enhance the efficiency of operations and improve the
corporate governance;
tools for the immediate management decision making;
improved risk management transparency in the Company through introduction of an automated Risk
Management System (RMS).
Application Management in the Operational Processes
The automation level of the operational processes will be achieved through the following IT initiatives:

Two projects will be implemented within the IT EAIS initiative: introduction of an enterprise service bus
(EAIS ESB) and development of a unified master data management system (EAIS MDM);

Upgrade of the ADCS (SCADA/EMS);

Upgrade of the commercial metering system;

Automation of the loss calculation process;

Automation of the electricity and capacity balance forecasting process;

Automation of the project management process;
The results of these projects and initiatives will include:


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improved automation level of the operational processes in the EA, NDC SO, and MES branches;
optimized labour costs through improvement of the integration level and the data exchange between the
Company's systems;

optimized costs for the information systems integration support;

improved transparency of data exchange within the existing and newly introduced business-processes;

reduced costs through optimization of the personnel performance and decommissioning of the OIS in
the head office and branches;

increased profitability of the Company through improvement of the automation level of the loss
calculation system (through introduction of an automated loss calculation system);

improved level of electricity and capacity balance forecasting process automation (through introduction
of an automated balance forecasting system);

improved level of commercial metering accuracy and connection of the CMS of energy market
participants to the CMS of the Company;

improved efficiency of decision-making process relating to the Company's project management, and
optimized costs for implementation of the Company's projects (through introduction of an automated
project management system).
32
Application Management in the Supporting Processes
Improvement of the automation of the Supporting Processes will contribute to the implementation of the following
IT initiatives:


Automation of personnel training process;
Introduction of document management system in KEGOC branches and its integration with the DMS of
the head office;

Automation of the technical control (safety) process;

Development and extension of ERP features;
The results of these initiatives implementation will include:



centralized storage of the training documents;
automation of the planning, administration, and monitoring of the personnel training process
(development of the training programme for each employee) through introduction of the automated
training process management system;
optimized personnel training through the use of specially developed media-tutorials;

substantial reduction of hard-copy document flow and improved efficiency of cooperation between the
head office (EA) and the branches of the Company;

improved efficiency of the transaction documents and contracts processing through integration of DMS
and ERP;

automation of the technical control reporting process through introduction of the automated technical
control system;

strengthened controls in the technical control and occupational health process, which shell reduce the
risk of injuries and emergencies in operations;

optimized labour costs within the technical control process;

improved level of automation of the Treasury Department activities;

efficient cash flow management and better transparency of their application as required by SamrukKazyna;
Based on the business requirements and the analysis of the business processes automation, a target
architecture of the Company's applications was developed (see. Figure 6.3).
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Figure 6.2.1 The Proposed Target IT Architecture Has High Level of Automation
Management
Processes
Strategic management
Corporate governance
Planning, budgeting and
monitoring
BSC
Pricing and stakeholders
relationship management
Study and selection of
new technologies
Risk management, internal control
and audit
Hyperion
BI
MRS
Electricity transmission
Provision of access to NPG
BI
ERP
Technical dispatch control
RMS
MIS
Management of electricity production and
consumption balancing
Auditor activity
automation system
Management of generating
capacity reserve
ADCS
Acceptance of energy to NPG
Supply energy from NPG
Operational
processes
Operation of the relay protection and emergency
automation
Operation, maintenance and repair of NPG
ADCS
Development and issue of operational mode
guidance
Maintenance of the parallel operation with power
systems of the neighbouring states
Systems for
mode
calculation
Development of NPG
Prevention, isolation and elimination of technical
process failures
CRPS
ASPMS
GIS
Simulators
EFDS
ABFS (EFCC Subsystem ССО)
ADCS
Preparation of daily schedules
BEMS, CMS, ABFS (DLS subsystem)
Physical settlement of imbalances
BEMS, ABFS (DLS subsystem)
ADCS
Calculation of losses, preparation of actual and
forecast balances
EXCEL
CMS
ALCS
ABFS (ECP subsystem)
BEMS
Financial settlement of electricity imbalances
BEMS
CMS
Termination of services
ADCS
Science and education
Research
and
developmen
t
Knowledge
Management
Supporting
Processes
APMS
Executive
administration
Contracts,
procurement and
logistics
Purchase and sale of system and ancillary services and electricity
Rationalisation activity
Sale of system services and
purchase of ancillary services
Purchase and sale of electricity
to compensate for interstate
trade balance of electricity flows
Purchase and sale of
renewable energy
Capital construction
Development of detail
design and estimate
documentation
ERP, BEMS, CMS, ABFS
Corporate web portal
Human resource management
Finance and
BI
accounting
ATPMS
MRS
Management of administrative and
office venues
Projects
management
APMS
IT support
Occupational safety,
health and environmental
protection
Legal support
DMS
Service Desk
ERP
Branches
Training IS
Automated
technical
control system
Paragraph IS
DMS
High automation level
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Average automation level
34
6.3 Data Architecture
The key objective will be to establish the integrated information environment in the Company. This objective will
be achieved through introduction of the Enterprise Application Integration System (EAIS). The target data
architecture will be based on the transition to the Service Oriented Architecture. The EAIS will include three main
components:

Enterprise Service Bus (ESB), which will be primarily aimed at the synchronisation of the data from
various systems in order to avoid their duplication, and also at the assurance of integrity of the Company's
business processes for which several information systems are used;

unified master Data Management System (MDM). The primary objective of the MDM system is to get the
"Single Version of the Truth". The information must be unique and complete as much as possible, so that it
could be relied on and used in all business operations and IT systems;

Corporate Data Warehouse (DWH). The primary objective of the DWH is to arrange the great massive of
data in one hardware-software package. Based on the data models DWH will process, store and provide
immediate access to the on-line and historical data in a special way. The role of the DWH will be to provide
multidimensional data analysis, forecasts and statistics based on the approved master data.
In order to optimize the costs for DWH data processing and analysis, the existing Business Intelligence type
analytical system will be used.
The target data architecture will provide the following functionality:

make adequate management decisions;

ensure integrity of the Company's business processes;

ensure the information is not duplicated in various IT systems;

make immediate management decisions through improvement of the quality (timeliness, accuracy) of
the information of all Company's processes;

enhance the flexibility of the management reporting settings;

optimize labour efforts with regard to reports preparation by the Company's personnel
The figure below shows the target model of data exchange between the Company's facilities (substations and
TES), branches and Executive Administration.
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Figure 6.3.1 Target Data Architecture
Data
mart
RMS
BSC
MRS
EAIS (DWH Data Warehouse sub-system)
EAIS (ETL&MDM Data Cleaning sub-systems)
Executive
administration
EAIS (ESB Enterprise Service Bus)
Systems for
mode
calculation
ADCS
ABFS
CMS
BEMS
ALCS
GIS
BEMS
ALCS
GIS
EFDS
AAMS(ERP)
ERP
Hyperion
AAMS
ERP
Hyperion
AAMS(
ERP)
ERP
DMS
Simulators
Branches
and affiliates
Systems for
mode
calculation
ABFS
ADCS
DMS
EFDS
CMS
Simulators
TES,
substations
ADCS
CMS
ASPMS
NDC SO processes
GIS
EFDS
Core operations data
DMS
Financial and administrative data
Automated data transmission via Enterprise
Service Bus (ESB)
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6.4 Technology Architecture
Target Model of Technology Architecture
The key to the Company's successful performance is efficiency and reliability of the information and
telecommunication system. The basis for implementation of the goals set in the ITS Development Strategy will be
the creation of the technology architecture that would meet the present-day and future business needs and will
have the following characteristics:

reliable and easy operation of information systems (ERP, ADCS and other systems);

highly fault-tolerant and reliable CDN with optic rings;

efficient joint work of various groups of users and information exchange;

reliable and accessible critical information resources;

provision of basic IT services of adequate scope and quality.
The creation of such technology architecture will serve as a basis for ITS development as well as for the
establishment of a smart adaptive power system, which is required by the Company's innovation and technology
development strategy.
The target technology architecture of the Company is shown in the figure below.
Figure 6.4.1 Target Model of IT Infrastructure
– firewall
Corporate Data
Warehouse
The existing telecommunication
channels are replaced with FOCL in
those places where construction
and rehabilitation of OHTLs is
performed
– router
Accounti
ng
system
data
base
– switch
Document
flow data
base
` `
` `
Users
Users
– server
Data Centre
Executive administration
The existing telecommunication
channels are replaced with FOCL in
those places where construction
and rehabilitation of OHTLs is
performed
Internet
Own CDN
` `
` `
` `
` `
Users
Users
Cloud DB
* backup
network
appliance
` `
` `
Service Desk
EnergoInform
The existing telecommunication
channels are replaced with FOCL in
those places where construction
and rehabilitation of OHTLs is
performed
* backup network
appliance
*** Substation communication
channels (e.g. radio relay lines)
remain in those places where the
construction of a FOCL line is not
feasible
* Backup process will apply to key
net nodes
** Demilitarized zone
**** The DB for which transfer to the
Data Centre is inefficient and which
stay on the companies' sites
** DMZ
** DMZ
``
` `
...
Users
``
` `
...
Users
Operational system data
base
**** Local DB
MES
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Substation
37
6.5 Information Security Architecture
The purpose of the Information Security System will be to prevent the threat of any action or inaction to the
Company's information resources causing damage to the Company.
The damage can include the illegal use, misrepresentation, loss or restricted access to the information. The
information assets, personnel of the Company and data will be the objects of protection by the Information Security
System.
The information assets will include the information systems and equipment that are involved in the Company's
data processing and storage (servers, workstations, network equipment, data warehouses, back-up systems, office
equipment, etc.).
Company's personnel includes the Company's employees who are involved in the data collection, processing, and
storage, and the employees who are responsible for the operability of the Company's information systems.
The data includes the information, which is used to ensure the operating activity of the Company and stored in the
electronic databases or in hard copies.
The main purposes of the Information Security System will be to ensure continuity, integrity and privacy of the
Company's information resources.

Continuity is the property of the information resources according to which the systems and the
infrastructure shall ensure availability of the requested services (e.g. information) within the specific time
and with required quality;

Integrity is the property of the information resources according to which the systems and the
infrastructure shall ensure the data protection against unauthorized alteration during data processing,
storage, transmission, and etc.;

Privacy is the property of the information resources according to which the systems and the
infrastructure shall ensure the data protection against unauthorised access during data processing, storage,
transmission, etc.
The architecture of the target information security of the Company is shown in the figure below.
Figure 6.5.1 Information Security Architecture
Business
requirements
Continuity
Guidelines, policies
and standards
Privacy
Assets structure
Technical security architecture
Processes
and
operating
practices
Technical
specifications
Human
resource and
organisation
management
Monitoring and compliance
Integrity
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38
The analysis of the current development level of information systems and information security in the Company
shows that the following special conditions are required for the Company's Information Security System
implementation:

The planned high level of centralization of the information systems and other key information resources
of the Company. It is proposed that the major part of the Company's information systems will be based on
the servers located in the main Data Centre of the Company. These information systems will be accessible
via local networks of the branches and the corporate data network. These systems will be the main
geographically distributed information resources of the Company;

Relatively high level of geographical distribution of the Company's information resources. The users of
the information resources will be located in the Executive Administration and in MES branches as well.

High pace of informatization in the Company (introduction and development of information systems
and development of IT infrastructure).
The ISMS operation will be based on the best international recommendations and standards in the sphere of
information security management. Such approach will include implementation of all procedures for IS
management and maintenance, coordination and regulation of the procedures, their proper and efficient
implementation.
The information security management approach will be based on two major principles:

Process approach to security management. According to the process approach, management process is a
set of interrelated continuous operations. The process approach is focused on the achievement of the set
targets as well as on the resources utilised for this purpose;

Use of PDCA model as the basis for all information security management procedures. The PDCA model
includes four steps that shall be sequential in each process.
The information security approach is shown in the chart below:
Figure 6.5.2 Functions of the Information Security in the Company
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6.6 Principles of the Company's ITS Development
General Principles of ITS Development
To determine the principles of ITS development we should take into account the following:

Current status of application, data, and process architectures;

Current status of IT management and IT organisation and future development plans;

Current status and plans of development and use of applications and data;

Principles of the Company's business strategy;

Current status and development prospects of the telecommunication and IT infrastructure in
Kazakhstan.
Based on the analysis of the above listed aspects the following Company's ITS development principles were
determined:
 Conformance with the business requirements. According to this principle, the ITS parameters shall be
determined based on the requirements of the Company's business units.
 Ubiquity. According to this principle, the ITS shall cover all branches, substations of the Company. This
principle is important because the ITS is critical for the Company's operations;
 Reliability. According to this principle, the ITS shall ensure high level of reliability with regard to the access
to the Company's information resources;
 Scalability. According to this principle, the IT solutions used by the Company shall have the capacity of
significant extension in performance, capacity, scope, etc. This principle is determined by the Company's plans
to enhance the automation level;
 Economic Feasibility. According to this principle, all IT solutions that are used shall be economically
feasible. For example, when new process solutions are utilised instead of the existing ones a feasibility study
shall be made first. This principle is required because the amount investments in ITS development are
expensive;
 Use of the state-of-the-art technology solutions. According to this principle, the latest technology
solutions shall be used for the Company's ITS. This principle is important because the Company's ITS is
created as a long-term asset;
 Standardization. According to this principle, the Company shall develop and further utilise standard
technology solution. The existing non-standard designs shall gradually be replaced with the standard ones. The
use of any new non-standard design shall not be allowed. This principle will help to enhance the ITS reliability,
and improve quality and reduce the costs for its maintenance.
 Centralized control. According to this principle, The Company's ITS shall utilise the solution that support
the centralized monitoring and control.
 Integrated Information Environment. According to this principle, a single management environment
shall be created in the Company in order to have a whole picture of the situation in real time, minimize the
human factor, facilitate data exchange between employees and ensure accumulation of corporate knowledge.
This principle is important to enhance the business transparency and investment attractiveness as well as to
directly reduce labour efforts for data entering into the systems and to avoid data duplication.
Principles of Application Architecture Development
In addition to general ITS development principles the Company will rely on the following principles relating to the
application architecture:
 Use of integrated solution. Use of the minimum number of various applications and cover the maximum
number of processes with one application when automating business processes and operations management
processes.
 Use of modern methodologies for computer software development. Software producers shall ensure
high quality of software development using modern methodologies (RUP, Agile Development). Prior to the
acceptance testing of new releases of software they shall pass full range of testing (unit, functional, regression,
load and stress) by the software manufacturer. It is not recommended to use the operational environment for
the internal and acceptance testing. The observance of this principle will allow improving the quality of
projects implementation.
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 User training by software producers. The software producers shall provide software programme
operation training for users, product administrators and IT administrators, and provide any required materials
(user guides, administrator guides, run-books, etc.). This principle will help to enhance the end-user
satisfaction with the system.
 Software support by the developer. In order to ensure the trouble-free operation of the software it is
recommended to sign user support contracts. The level of support shall be defined in an SLA. This principle
will allow enhancing the quality of software support.
Principles of Data Architecture Development
One of the key principles of data architecture development, which shall complement the general principles of the
Company's ITS development, is described below.
 Unified system of classification, codification and MDM. The unified classification of the management
objects for the systems operation will provide unambiguous consolidation and grouping of data, and
uniformity of various retrievals. This principle will help the Company to perform efficient data management as
well as data exchange between the used systems.
Principles of Technology Architecture Development
In addition to general ITS development principles the Company will rely on the following principles relating to the
technology architecture:
Standardization of the Company's IT infrastructure components
According to this principle, development and implementation of corporate standards shall become one of the key
strategic initiatives of the Company's information technologies development. The advantages of using standard
configurations for the components of IT infrastructure include:




reduced cost of service for the IT infrastructure components;
reduced costs for purchase of the IT infrastructure components;
integration of various components of IT infrastructure;
improved quality of service for the IT infrastructure components;
First of all the following corporate standards of IT infrastructure and serving shall be developed as a basis for
development of the IT MDM system in the Company:
 Corporate standard for server and network hardware;
 Corporate standard for hardware and software for end-users;
 Corporate standard for Data Centre arrangement.
Target model of IT infrastructure shall include the corporate standard for hardware and software for end users.
This standard is important in order to facilitate the administration of users' workstations, standardize and typify
software and hardware, and to improve information security. This standard shall be a part of the information
security management system and formally determine the policy of software use that shall minimize the risk of
illegal and unauthorised software use.
The good practice in choosing hardware for the end-user workstations is to standardise the server and network
equipment (see above).
The following requirements shall apply to the end user software:
 The software of the Company shall only be used for the Company's business purposes;
 The software used in the Company shall be officially and legally purchased. It is prohibited to use any
counterfeit software;
 The shareware or trial software can only be used for testing purposes and shall not be used on
permanent basis;
 The software shall only be installed by the personnel of the Energoinform IT Department; the software
installation by other employees shall be prohibited;
 The Company shall regularly check and monitor the status of the end user software.
The possibility of commercialisation of IT infrastructure (additional income). According to this
principle, the technology used in the Company (e.g. telecommunications) shall have the possibility to provide
services for the third-party users on a commercial basis, as required. This principle will allow the Company
covering some part of the costs for creation and support of IT infrastructure. These services will be rendered by
Energoinform subsidiary.
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6.7
Operating Model of ITS Management
In order to create an efficient target IT infrastructure aimed at the achievement of the Company's strategic goals,
the following tasks relating to the operating model of IT management shall be performed:
 Improve IT management structure;
 Establish IT Project Office;
 Improve IT process maturity level;
These measures will create opportunities for the efficient interaction between the business and IT.
Improvement of IT management structure.
According to the strategic goal of the Company to improve the corporate governance practices, it is important to
ensure the transparency of IT related decision making. This goal will be achieved through interaction and
communication between managers, business-users and IT personnel of the Company and Energoinform. For this
purpose, an IT Management Committee will be established. The membership of this Committee will must include:
 Chair of the Committee.
 Representatives of core operations departments, as well as financial and administration support departments.
 Managers and key personnel of Telecommunication and Information Technologies Department (TITD) and
EnergoInform JSC.
Figure 6.7.1. Structure of IT Management Model
Company's IT Management
IT
Business
Management Board, managers of
business units
Sponsors for strategic
IT projects, Owners of
business processes
ITS Management Committee
Operational Committee under
the ITS Management Committee
Head of TITD,
Senior Manager for IT,
IT Managers in Energoinform
Head of TITD,
Senior Manager for IT,
IT Managers in
Energoinform
ITS Project Office
Project team
Project team
-
Technical Committee under
the ITS Management Committee
Head of TITD,
Senior Manager for IT,
IT Managers and Specialists in Energoinform
...
Project team
Determination of the Company's IT
Development Strategy, determination
of IT investment priorities, analysis of
key IT proposals.
Management of strategic IT projects,
selection of key IT proposals
Management of IT
infrastructure, IT services, and
IT processes development
1
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42
In addition to the IT Management Committee establishment, the existing organization of telecommunication and
information technologies management will be transformed. According to the target operating model of IT
management, a Telecommunication and Information Technologies Department (TITD) will be established.
According to the target model, the role of IT unit in the Company will be enhanced. To create an efficient IT service,
TITD will introduce new IT functions in the Company. These functions will be uniformly allocated between the
TITD and Energoinform personnel (see Figure below). To effectively implement the ITS development strategy,
highly professional IT specialists will be gathered under the TITD.
Planning and technologies
Strategy and
planning
Planning
Architecture
management
IT Management
Business
relationships
management
Suppliers
management
Service level
management
Change
management
Quality, security, regulations compliance
Administration
IT standards and
policies
Regulations
compliance
management
Quality
management
Risk management
Security
management
IT administration
IT finance
management
IT staff
management
IT resource
management
IT acquisition
Operating activity and user support
Software support
Operations
Data management
Infrastructure
management
Configuration
management
Security
User servicing
Development and testing
Software
development
Testing
TITD functions
TITD and Energoinform functions
Energoinform functions
New Project Office for implementation of integrated IT projects.
Quantity and complexity of IT projects implemented by the Company and Energoinform under the ITS
development strategy will grow. However, timeliness, quality and budget constraints of such projects always
depend on the competency of the project team. It is especially true when it is required to implement several
simultaneous projects i.e. project package management.
To cover the existing and future needs an IT Project Office will be established in the Company. To implement a
specific IT project, both Company's and Energoinform's specialists will be temporarily transferred to the Project
Office. If the project is integrated and requires specific expertise, additional specialists from the Company's
business units will be engaged as well as outsource service providers.
The main function of the IT Project Office will be to manage and monitor the IT projects implementation.
Additionally, the Project Office will:
 Provide the managers of structural units with project management guidance;
 Develop and maintain an adequate and standard project management process;
 Develop manuals for training programmes or prepare specifications for an outsourced company;
 Support the centralized office from where the employees are engaged in the project implementation;
 Select and support the project management software to be used by personnel;
 Monitor and control the project package;
 Approve programme leaders who can manage the interrelated projects, such as infrastructure
development, information systems introduction, etc.;
 Allocate resources (budget, personnel, etc.).
Improvement of IT process maturity level
The maturity level of IT processes has a serious impact on the IT performance as well as on the IT strategy
implementation. In this connection, the TITD of the Company and Energoinform will need to improve the existing
IT processes to reach the level of global utility companies through:
 Development of regulations and models of key IT processes for the entire Company. Determination of the areas
of responsibility, controls and metrics for each process, which would provide for efficiency monitoring and
reporting to the Management.
 Automation of key IT processes to improve the business users’ satisfaction with the IT services.
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 Regular IT audits and systematization of possible improvements.
 Training of the Company's TITD personnel to build an efficient IT Service based on ITIL and CobIT standards.
The target level of IT processes maturity for 2019 is shown in the figure below.
PO1 Define a Strategic IT
Plan Define the Information
PO2
Architecture
PO3 Determine the
Technological
PO4
Define theDirection
IT
Organization
andIT
PO5 Manage the
Investments
PO6 Communicate
Management
Aims and
PO7
Manage Human
Resources
PO8 Manage Quality
PO9 Assess Risks
PO10 Manage Projects
AI1 Identify and Select
Automation
AI2 Acquire Solutions
and Maintain
Application
AI3
Acquire Software
and Maintain
Technology
Architecture
AI4 Document
and Maintain
Procedures
AI5
Acquire IT Resources
AI6 Manage Changes
AI7 Implement and Accredit
Systems and Changes
DS1 Define and Manage Service Level
DS2 Manage External Providers
DS3 Manage Performance and
Capacity
DS4
Ensure Service Continuity
DS5 Ensure Systems Security
DS6 Identify and Attribute Costs
DS7 Educate and Train Users
DS8 Assist and Advice IT Customers
(Service
Desk)
DS9
Manage
Configurations
DS10 Manage Problems and
Incidents
DS11
Manage Data
DS12 Manage Facilities
DS13 Manage Operations
ME1 Monitor and Assess IT
Performance
MЕ2
Monitor and Assess Internal
Controls
MЕ3 Ensure Regulatory Compliance
MЕ4 Provide IT Governance
MЕ3
PO1
MЕ44,50
MЕ2
PO2
PO3
PO4
4,00
3,50
ME1
PO5
3,00
DS13
PO6
2,50
DS12
PO7
2,00
1,50
DS11
PO8
1,00
0,50
DS10
PO9
0,00
DS9
PO10
DS8
AI1
DS7
AI2
DS6
AI3
DS5
AI4
DS4
AI5
DS3
DS2
DS1
AI7
AI6
Current level of IT process
maturity
Level of IT process
maturity by 2017
Level of IT process
maturity by 2019
Table 6.7.1 Description of the Target Processes Status
Index
Process
Target
Process description
maturity
rate
Planning and Organization Domain Processes
PO01
Define a
Strategic IT Plan
4
The strategic IT planning is based on the developed policy. A structured approach is used
for strategic IT planning; this approach is documented and available to all employees. IT
planning is substantiated and ensures reasonable planning. The implementation of this
process is communicated to the affected managers. When new software or technology is
procured, the IT financial, engineering and human resource development strategies is taken
into account. Strategic planning issues is discussed at the meetings of the top management.
PO02
Define the
Information
Architecture
3.5
The development and implementation of the information architecture is fully supported by
formalised methods and approaches. The efficiency of the architecture development is
reported, the progress of its implementation is measured. Auxiliary automated tools is
widely used. Key indicators have been defined and a system of their evaluation has been
developed. The development of the information architecture is a pre-emptive process and is
focused on analysing the future needs of the business. The data administration group
actively participates in the development of applications to ensure compatibility. The
automated data warehouse has been created; more complicated data models is introduced
in order to ensure more efficient use of the data base content. The information systems and
the decision support systems for the Company's Management make an effective use of the
existing information.
PO03
Determine the
Technological
Direction
4
The planning process provides proper quality and comply with the strategic IT development
plan. A certain and documented plan of the technological infrastructure development is in
place, and communicated to the affected parties. The chosen direction of technology
development includes understanding of the company's plans for leadership in technology
application with due account of the risks and own development strategy. Main suppliers are
selected so that the long-term technology development plans would comply with the
company's technological development direction. A formalized training programme is in
place, personnel is aware of its duties and responsibilities.
PO04
Define the IT
Organization and
Relationships
4
The IT service has been created, documented, its establishment has been communicated to
the company's personnel; the IT service operates in accordance with the IT strategy.
Internal control system has been defined Relationships with other parties have been
formalized. The IT service is a self-contained system. The duties of the IT personnel and the
duties of the users have been determined. Competencies and skills required from the key IT
personnel have been determined. The determined relationships between end-users and
third parties have been formalized.
PO05
Manage the IT
Investments
4
The processes for selection of the IT investment options and budgeting are substantiated
and take into account the key business aspects and technologies. The investment options
selection procedure and the investment policy have been determined, documented, and
communicated to the personnel. The IT budget complies with the strategic IT and business
development plans. The processes used for budgeting and selection of IT investment
options are formalised, documented, and communicated to the affected parties. The
budgets and the selected IT investment options are schemes are formally approved. The IT
personnel has the required experience and qualifications to plan the IT budget and develop
relevant recommendations on the investment options.
PO07
Manage Human
Resources
3.5
Development and promotion of the IT personnel management plan fall under the
responsibility of a specific employee (or a group) that has the required experience and
qualifications. The process of development and promotion of IT personnel management
plan is able to adjust to changes. The company has standard criteria in order to reveal any
deviations from the plan specifically addressing the issues of the labour quantity and
turnover. Salary trends and performance level are monitored and compared with the
relevant ratios in the peer companies and industry's best practices. IT labour management
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Index
Process
Target
maturity
rate
Process description
is proactive with due consideration of the career development issues.
PO08
Manage Quality
4
A specific process for quality assurance is in place and communicated by the Company's
Management to all the affected parties within the company; the process involves the
Management of end IT users. Quality assurance training programme is developed for every
level within the company. Key requirements to the quality is determined. General tools and
practices are developed for quality control. Quality satisfaction surveys are planned and
periodically conducted.
PO09
Assess and
Manage IT Risks
4
Risk assessment and management are the standard procedures. The IT managers are
informed of the deviations in the risk management process. The company's top
management is responsible for the risk management. Risk assessment and mitigation are
done under the individual projects and regularly under the overall IT activities. The
managers are provided with recommendations regarding changes in the corporate
environment and IT environment that can have a significant impact on the risks. Every
revealed risk has a formal risk owner; and the top management and IT service managers
define the acceptable, in their opinion, risk levels. IT service managers developed
standardized measures for assessment of risks and risk to reward ratios. Risk management
database is created. The managers of IT service develop the risk mitigation strategies.
PO10
Manage Projects
4
The process and the methodology of the IT projects management are in place in the
company and communicated to the personnel. Terms of reference for the IT projects are
determined with due account of the existing engineering and business objectives. The top
management of the company and IT service start participating in the process of IT projects
management. A project management unit is created under the IT service; the duties and
responsibilities of operators are defined. The IT projects are monitored; the stages of their
implementation, schedules, and procedures for assessment of the work progress and budget
allocation are approved and from time to time adjusted. The quality control procedures and
the works required after the system introduction are determined. Project management is
evolving to package project management.
Acquisition and Implementation Domain Processes
AI1
Identify and
Select
Automation
Solutions
3.5
There is a strict and structured approach to IT solutions selection. This approach requires
considering the alternative options with due account of business or user requirements,
engineering and economic capabilities, risk and other factors assessment. The process of IT
solutions selection is used under some projects based on such factors as decisions taken by
the project participants, amount of time allocated by the management, and the importance
and priority of the initial business requirement. To determine the requirements and select
IT solutions the structured approaches are used.
AI2
Acquire and
Maintain
Applications
4
There is a strict, defined and user-friendly process of software application acquisition and
support. This process complies with the IT and corporate strategy. The documented
processes are used for various applications and projects. The support services are planned,
regulated and coordinated.
AI3
Acquire and
Maintain
Technology
Architecture
4
The process of acquisition and maintenance of the technology infrastructure has reached
the level when it is successfully and consistently observed and designed for multiple
application. IT infrastructure provides adequate support to business applications. The
process is well organized and proactive. The costs and time spent to achieve the desired
level of extension, flexibility, and integration are optimized.
AI4
Enable
Operation
Use
3.5
There is a well-defined, accepted and recognized concept for preparation of the user
documents, operation manuals and training materials. The procedures are stored and
maintained in the library and every employee has access to them. The documents and
procedures updates are made following the relevant requests. The procedures are accessible
also in an off-line mode, and their implementation is ensured in case of an emergency.
There is a process that prescribes that update procedures and training materials are an
integral part of the modification project implementation. Automated tools are used more
and more to develop and communicate procedures. There is a plan for users training.
AI5
Procure
Resources
3.5
IT acquisitions are fully integrated into the corporate-wide logistic system. IT standards for
IT resource acquisition are used for all supplies. Assessment of contract and supplies
management is adequate to the economic justifications of IT acquisitions. Reports on IT
acquisitions are available. The management is informed about the deviations from the
policies and procedures for IT acquisitions. The strategic relationship management is
further developed. The IT managers disseminate the processes of deliveries and
procurement contracts management to all procurements and monitor the performance
indicators.
AI6
Manage Changes
4
A formalized process of change management is defined, including change classification,
ranging, emergency procedures, change authorization, and issue management. Some
temporary solutions may be used, which may override the processes. Analysis of the IT
infrastructure changing impact on corporate operations is formalized and support the
scheduled releases of new applications and technologies.
AI7
Install
Accredit
Solutions
Changes
4
The procedures are formalized and provide for the practical use of a test environment and
formalized acceptance. In practice, this formalized approach applies to all material changes
made to the systems. The process of user satisfaction assessment is standardized and can be
measured, and the measured parameters can be effectively reviewed and analysed. This
process is automated from time to time depending on the project. The testing system
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and
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Index
Process
Target
maturity
rate
Process description
adequately imitates the actual operating conditions. When implementing major projects,
stress tests are conducted for the new systems, and regression tests are conducted for the
existing systems.
Delivery and Support Domain Processes
DS1
Define
Manage
Level
DS2
and
Service
3.5
Responsibilities are clearly allocated. The process of development of service level
agreements is underway; moreover, checkpoints are determined to assess the user
satisfaction. Services and service levels are defined, documented and approved in
accordance with the standard process. Weak points were revealed in the service levels.
There is a clear connection between the achievement of the target service level and the
financing. The service levels are approved.
Manage External
Providers
4
There are documented procedures for the management of third party services procurement
with the clearly outlined processes that provide for proper familiarization and negotiation
with service providers. After a contract is drawn up, all relations with the third party
organization are regulated solely by the contract. The contract describes in detail the nature
of the rendered services including operating, legal, and control requirements. Persons
responsible for supervision of the service rendered by third party organizations are
appointed. Contract terms and conditions are based on the standard models. Business risks
associated with the contracts are assessed and relevant reports are prepared.
DS3
Manage
Performance and
Capacity
3.5
Performance and capacity requirements are defined for the systems life cycles.
Requirements for the service level are defined as well as metrics that can be used for the
efficiency assessment. The requirements to the efficiency of a specific process can be
modelled and forecasted. The reports on the efficiency statistics are prepared.
DS4
Ensure Service
Continuity
4
Accountability is clearly defined and persons responsible for planning and monitoring of
the service continuity are appointed. The service continuity plan is documented and
depends on the system importance and the accounting of the negative impact on the
business. Periodic reporting on the inspections of the service continuity is in place. The
management makes consistent reviews of the issues relating to the service continuity. The
use of the components of high efficiency and redundancy of the system is starting to take
place. The list of critical systems and components is maintained.
DS5
Ensure Systems
Security
3.5
Key directions of ensuring physical security of information assets are defined.
DS6
Identify
and
Attribute Costs
3.5
The model of IT service costs is defined and documented. The interrelation between the IT
costs and provided services is defined. The required level of understanding of the costs for
information services is achieved. The business is provided with the data on the IT costs.
DS7
Educate
and
Train Users
4
The personnel training and education programmes are clearly formulated and
communicated. The training needs of employees and managers are defined and
documented. The personnel training and education processes are standardized and
documented. Budgets, resources, facilities, and trainers involved in the training process are
defined. The employees undertake official training courses, such as corporate culture,
general issues and practical actions to ensure system security. For the most personnel
training and education processes the routine control is performed. Analysis of the problems
associated with personnel training and education is performed.
DS8
Assist and Advice
IT Customers
4
The necessity to create a user support service and an incident management process is
realized and recognized. Procedures are standardized and documented. Training is
conducted on an informal level. A database is developed based on frequently asked
questions with answers to these questions; recommendation are developed for users.
Questions and problems are recorded manually; ongoing monitoring is performed in
individual cases. Situations when a request or an incident is not addressed are possible.
Users have clear instructions when and how to report a problem or an incident.
DS9
Manage
Configurations
4
Procedures and methodologies are documented, standardized and communicated. The
physical presence of components is checked. Changes in hardware and software are
monitored automatically. The configuration data is used in the interrelated processes.
DS10
Manage
Problems
Incidents
4
The process of problems management is recognized at all organization levels. Responsible
persons and process owners are clearly defined. Required methods and procedures are
documented and communicated to personnel; assessment of their efficiency is conducted.
The majority of the emerging problems are revealed and recorded, and appropriate reports
are prepared and corrective actions are taken thereon. The required background and skills
are obtained and accumulated, and further transferred to a higher level, where they are
reviewed as an asset and a main factor contributing to the achievement of the IT goals.
Problem management is closely connected with such allied processes as incident, change,
accessibility and configuration management, and assists the IT service users in data,
equipment and operations management. Goals and indicators comply with the guidelines
on the problem management process.
4
The necessity of data management is recognized and accepted by the entire company. Data
management responsibilities are defined. Owners and parties responsible for information
integrity and security are appointed. The data management procedures are formalized
within the IT unit; some automated facilities are used for equipment
reservation/restoration and decommissioning. Data management monitoring is conducted.
Key efficiency indicators are defined.
3.5
The company recognizes and accepts the necessity to control the environment where
computer facilities are located. Monitoring of the environmental parameters, preventive
maintenance and physical security are the budget items. The access restriction measures
apply to computing resources, and the access is provided to the employees with the special
and
DS11
Manage Data
DS12
Manage Facilities
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Index
Process
Target
maturity
rate
Process description
access level only. Visitors are registered in the logbook and accompanied at the sites. The
premises containing the equipment do not have any indication of their purpose. Civil
authorities watch that health and safety rules are observed. Risks are insured, some minor
efforts are made to optimize the insurance costs.
DS13
Manage
Operations
3.5
The company recognizes and accepts the necessity to manage computer operations.
Resources are allocated. The repeated functions have been formally defined, standardized,
documented and communicated. The events and task performance results are recorded. The
automated facilities for package task schedule management and other tools are used in
order to reduce the chance of operator interference. Monitoring of the introduction of new
types of works is introduced. Formalized policy for reduction of non-scheduled events has
been developed.
Monitoring and Evaluation Domain Processes
ME1
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Monitor
and
Assess
IT
Performance
3.5
The documented standard monitoring processes are approved by the management and
communicated to the personnel. The personnel training and education programmes
relating to the monitoring performance are implemented. A formalized database of
performance indicators for previous periods is created. The assessment is still performed
under individual IT processes and projects. IT processes and service levels monitoring tools
are defined. The indicators to assess the IT service contribution to the company's overall
performance are defined and based on conventional financial and operational criteria.
Efficiency indicators typical for IT as well as non-financial, strategic, user satisfaction
indicators and service levels are defined. The methodology of efficiency assessment is
defined.
47
7. The Main Tasks of ITS Development
Strategy
Successful achievement of strategic business objectives by the Company will be closely connected with
implementation of the following IT tasks arranged into five major trends:





Enhancement of IT management function;
Improvement of automatic control in operational processes;
Improvement of automatic control in supporting processes;
Enhancement of ITS infrastructure;
Improvement of maturity level in information security process.
7.1
7.1.1
Enhancement of IT Management Function;
Optimization of ITS Management Model
ITS management model will be optimized to ensure implementation of ITS development strategy. Information and
telecommunication system management Committee will be established to define the development strategy for IT
Company, define investment priorities in IT and analysis key IT suggestions.
The Committee will include members of the Management Board, Heads of business units (owners of business
processes). It will be represented by the Head of Department of Telecommunication and Information Technologies,
CIO and IT Heads from Energoinform JSC. The exact list of Committee members will be defined in the Regulations
on ITS Management Committee.
In addition, the Committee will include Operational Council and Technical Council.
Operational Council will function as a managing body for IT strategic projects, defining key IT suggestions.
Responsibilities of the Technical Council will include management of IT infrastructure, IT services and IT
processes development.
Creation of the Committee on ITS management will optimize time for decision-making in ITS area and will ensure
the dialogue platform between business and IT support function.
7.1.2
Refinement of IT Services and Maturity Level of IT Processes
Refinement of IT services and maturity level of IT processes in the Company will be implemented based on the
international CobIT (Control Objectives for Information and Related Technology) and ITIL (IT Infrastructure
Library) standards. This task requires standardization and harmonization of IT policies and procedures in the
Company. One of the solution to achieve the objective is elaboration of IT policies and procedures using internal
resources or engaging outside consultants. The final objective of this initiative is to achieve the targeted situation in
managing IT services and processes. The Company will audit information technologies annually pursuant to the
methodology elaborated by SWF Samruk-Kazyna JSC to monitor the dynamics of enhancement of IT processes
maturity level.
Service level detection and management (SLA, OLA), business continuity and crash recovery assurance as well as
IT corporate management are the top-priority processes under implementation of this initiative. The process of
purchase and maintenance of IT infrastructure equipment is at least priority oriented. Enhancement of maturity
level of this process will ensure transition to the planning of purchase and support of the IT infrastructure.
Equipment purchase process and the process of technological support for corporate applications and equipment
will be standardized and harmonized. The efficient process of management of service and equipment vendors will
be implemented additionally (vendor management). Hence, ITS infrastructure purchase and maintenance costs
will be optimized.
Projects optimizing the costs of auxiliary equipment and transition of server infrastructure to virtual access
technologies will be implemented to optimize IT costs as a whole.
Refinement of IT services and maturity level of IT processes in the Company will bring the following advantages:

cost optimization in terms of purchase and maintenance of IT infrastructure equipment;

optimization of the Company IT processes;

efficient use of IT resources in the Company;

efficient IT management model in the Company;
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
7.1.3
possibility for preventive IT risk management in the Company;
Implementation of Software Assets Management Process
Optimization of licensing and updating of software will be based on Software Asset Management Methodology
(SAM). SAM methodology is addressed to optimize and protect software assets management processes in the
Company, via:

accounting of all software being on the balance sheet of the Company;

accounting of the use of all available software;

accounting of software licenses;

accounting of documents evidencing licenses availability
SAM methodology will consider the requirements of ISO 19 770 and will include the following processes:

management of inventory of server equipment, PCs and installed software;

software change control through audit trail of the implemented changes;

verification of the installed software for authorization, compliance with the quality of the purchased
licenses and licensing requirements;

check of the completeness and availability of the documents evidencing licenses availability;

elaboration and implementation of controls for circulation of copies and originals of the software;

elaboration of policies and procedures for software assets management;

contracts management and vendor relationship management;

budgeting software options and budgetary control;

management of IT service quality level agreements;

software security management trough efficient software access management;
Optimization of software licensing and upgrading in the Company will entail the following advantages:

licensed clean title of software assets;

information security upgrade and objective control in the software use;

common database of software assets with hard and integrated information;

use of concise internal corporate policies and standards for software assets management;

error-free control of software procurement with economically sound and timely budget planning;

enhancement of cost effectiveness and efficiency of the used software and early repayment of financial
investments;
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7.2
Improvement of Automatic Control in Operational Processes;
Improvement of automatic control in operational business processes will enable us to enhance the efficiency of the
Company activity in planning and forecasting energy consumption, power balances and building of daily load
schedules, technical dispatching and physical imbalances settlement etc.
Automation of core processes will provide for implementation of the following IT initiatives:





Automation of energy consumption and power balances planning;
Upgrading of automated dispatch control system (ADCS);
Automation of monitoring, analysis and calculation of electricity losses from the electric network;
Upgrading of commercial metering system (CMS)
Automation of technical control and occupational health;
7.2.1
Automation of energy consumption and power balances planning
Automation of energy consumption and power balances planning (forecasting) is required for more precise
determination of electricity generation and consumption, power balances and potential power flows in the midand short-term and initiation of projects for NPG development in accordance with the requirements of the
economy of the Republic of Kazakhstan. Such information will provide the grounds for high-quality forecasts of the
Company revenues and expenditures based on the operating activity.
Currently these processes are performed manually in the Company. Information system created to automate these
processes will comprise sub-systems and external data sources.
Software system will comprise sub-systems as follows:
 Daily load schedules and power balance
 Energy consumption planning
 Condition and configuration of equipment for energy facilities
In addition, information systems will be connected to software system through integrated bus as follows:
 CMS - collection of actual data of energy consumption for the previous periods;
 SCADA - monitoring of operating energy consumption and physical and financial imbalances settlement
(after the simulation mode is over)
Daily load schedules and power balance
First implementation stage will form the structure of indicators (parameters) which have to be processed by the
system. Parameters will comprise consumption and its components, power flows, plants and equipment load,
weather factors and other data. The quantity of the parameters to be processed can be sufficiently great, thus they
will be classified in a certain manner convenient for work making the hierarchy (tree) out of groups and
parameters. Classification can be as follows:
 Conceptual classification (components of consumption and power balances, power flows, weather data,
plants information, etc.).
 Personal classification when each user creates its own group with the wanted set of parameters;
 Territorial and administrative classification of parameters.
Composition and structure of parameters will significantly depend on the peculiarities of planning technology at
the introduction facility.
The major functions of sub-system will be:
 Elaboration of structure and classification of parameters;
 Downloading and analysis of actual data;
 Statistic, correlation and regression analysis;
 Parameters forecasting;
 Power balances calculation.
Sub-system will form parameters with the various types of values - immediate, averaged, and integral. For instance,
consumption can be based on SCADA data (immediate and averaged consumption value) and CMS (integral value).
This will provide the possibility to compare definite values obtained from different sources and verify data, if
necessary.
Energy consumption planning
Subsystem will work out analytical tasks, forecasting and planning of energy consumption, power balance for
energy systems and utilities.
Calculations with regard to balance planning will be performed in accordance with the certain calculation
methodology comprising methods, procedures, calculation technology, methods and means of data processing
required for the whole planning process.
The major stages of methodology implementation:
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1.













Preparation of initial information for analysis and planning.
Elaboration of the structure for the interrelated balance components. Elaboration of targeted data
model for consumption and balances. Featured data classification.
Setting up and adaptation of software for information loading from the data sources (SCADA,
CMS, flat files).
Loading of historical data of balance components for several years. Featured data balancing,
identification of unreliable values. Replacement of unreliable values by the simulated parameters. Statistic
data analysis based on regression and dispersion analysis.
Setting up mathematical models for implementation of forecast and planning functions and accounting of
restrictions.
Selection and setting up forecast mathematical models for balance components.
Series of calculations to evaluate forecast accuracy in retrospective mode based on the actual data.
Essential updating of forecast models.
Calculation of forecast values of balance components. Preparation of planned values.
Forecasting of basic components of energy consumption based on statistic algorithms.
Updating of forecast values in terms of effecting factors. Due diligence and updating of calculations
using special software interfaces.
Calculation of forecast balance as a whole. Calculation variants:
Calculation of forecasts based on certain components of consumption balance with subsequent
summation.
Calculation of forecasts based on the aggregated factor with the subsequent breakdown into the
components of consumption balance;
Accounting of limits and restrictions (operating capacity, network constraints).
Loading of accepted forecast values into the planned parameters.
Calculations data exchange with other management levels.
Actual data and planning results exchange between entities and management levels.
Condition and configuration of equipment
This subsystem will solve the tasks of data processing for configuration and condition of equipment, storage of data
pertaining to history of repair work, compilation of analytical reports, and calculation of power balances. Primary
functions of the sub-system will be:

Enter and update configuration and ratings data from energy facilities and basic electrical, thermal
mechanical, hydro-technical equipment at power plants, substations and OHTL.

Create and update of energy facilities and equipment structure (hierarchy).

Link equipment to energy facilities;

Link measurable parameter to energy facilities and equipment;

Enter and update actual and plan condition of energy facilities and equipment fixing the repair
type, power reduction due to repair works, estimated time of putting into operation the equipment,
recording of time for entry of data and users;

Consolidate status reports for equipment for the definite time and definite period;

Calculate actual and plan components of power balance with regard to power plant and energy
system as a whole;

Compile consolidated tables for daily schedules using data contained in the software system and
other external IT systems;

Update equipment status data based on maintenance orders from Orders Software System.

Subsystem will be implemented through web technologies and thus will be used distantly.
Automation of energy consumption and power balance planning will contribute to the achievement of the following
results:

efficient use of investments for NPG development;

efficient planning of repair outages at energy facilities of the country;

high performance forecast of power balance that will entail the increase of Company revenue;

viable managerial decisions.
7.2.2
Upgrade of ADCS (SCADA/EMS)
To achieve key business objective - ensuring reliability of Kazakhstan NPG - the Company has the following tasks:
 Minimize losses when transmitting electricity via distribution networks;
 mitigate risk connected with electricity undersupply in emergency mode;
 reduce costs for liquidation of extraordinary situations and their consequences;
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



ensure stable quality of supplied electricity;
maintain and prolong primary equipment life;
reduce costs for equipment repair works, technical upgrade and rehabilitation of facilities;
reduce costs for operating staff at substations.
The above tasks call for efficient work involving a great volume of technological information finally requiring the
centralized network management using Automated Dispatch Control Systems (ADCS). Currently ADCS shall
provide for:
 Integrated automation of operational dispatch and dispatch technological management of operation and
development of electric networks;
 obtaining a reliable current technological information essential to manage Company activities as a whole and
using both ADCS subsystems and subsystems of corporate information systems;
 automation of emergency prevention activities
Currently SINAUT Spectrum not fully meet the above requirements of Company business. Particularly, the major
drawbacks of current ADCS system are the following:
 Functional restrictions:

Impossibility to collect and process the data from energy market entities/facilities and substations of
the Company using the obsolete technologies of telemetric information communication;

Telemetric restrictions;

Impossibility to calculate load flow and evaluation of network status;

Impossibility to simulate electric modes in the networks using dispatch training simulator;

Insufficient specification of archive subsystem depth to perform forecast calculations.
 Technical restrictions:

Limited access (number of connections) to the system;

Lack of cross-platform capacity due to severe linkage to hardware and software systems that are out of
production or not serviced by the manufacturer.

Impossibility to integrate the system with other technological systems of the Company;

Impossibility to export data into the formats supported by office software system.
Annual costs for routine maintenance of current software and hardware ADCS system amount to about KZT 90
million. ADCS server equipment is completely depreciated. As a result, the number of incidents related to ADCS
hardware increases, which is confirmed by defect reports and 176 incidents in electronic ADCS logs.
Due to lack of functions, the time for deflection and liquidation of emergency and time for restoration of electricity
transmission in the networks is increased.
For the period from 2009 to 2013, there were 161 incidents due to electricity under supply. Total hours for power
restoration are 3,247. Total electricity under supply was 9,068 MW/h.
Whereas the consumers of the Company are the largest organizations of the country ensuring economic welfare,
each undersupply hour entails direct economic losses for both the Company and its consumers.
As an example, we will analyse the situation with TemirzholEnergo Company supplying electricity to railway sector
of the Republic of Kazakhstan. One idle hour of 130 wagonages within the operating zone of Yuzhnye and
Almatinskiye MES will make KZT 5,540,000 as penalties for KEGOC and each subsequent hour will be calculated
exponentially.
The Company wishing to reduce potential risks in ensuring the operation reliability of Kazakhstan NPG will
implement the ADCS upgrading initiative through implementation of the new product.
The new ADCS system will be the hierarchical man-machine system providing for collection, conversion, transfer,
processing and reflection of information on the status and mode of energy system and, based on the collected
information, shaping, transfer and implementation of control commands in real time mode to perform functions of
reliable electricity supply with the quality acceptable to the consumers. ADCS will collect and analyse data from all
energy market facilities and participants as well as from not rehabilitated substations using obsolete technologies
of data communication. In addition, it will perform the requirements that are missing in the current SCADA/EMS
system.
This system will be based on Common Information Model (CIM) for energy system in accordance with IEC
standards. The new ADCS will be modular architecture based and integrated to exchange data including integrated
bus (CSIA - Enterprise Service Bus subsystem) with other operating systems of the Company: CMS, BEM, AAMS
systems for calculation of energy system modes, etc.
In the long term, this ADCS will be used as a main component for designing of the Common System of Automated
Technological Management of dispatch and technological, production, and technical activity of the Company
(SATM). This system will extensively support all processes of collection, processing and use of technological
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information (information on the operational modes in electric networks, status of grid facilities and their
equipment, status of controlling means and systems).
The initiative on ADCS (SCADA/EMS) rehabilitation will, apart from solution of the above tasks, promote the
implementation of the strategic task of the long-term development strategy of the company directed at
enhancement of efficiency in operational activity and will give the advantages as follows:

enhancement of reliability and quality of Company responsibilities as a System Operator of UPS due to
implementation of the new ADCS;

enhancement of efficiency of operational activity;

enhancement of automatic control in operational and dispatching management processes;

reduction of operational expenditures through decommissioning of OIS system and integration with
other Company system.
7.2.3
Upgrade of commercial metering system
One of the strategic tasks of the long-term development strategy of the Company is enhancement of efficiency of
operational activity of the Company. CMS upgrading initiative will be implemented under this strategic task.
Upgrading of CMS will include upgrading of telecommunication equipment, data collection and transfer unit,
meters, server equipment and software.
Software will be client-server architecture based and will comprise the following components:

collection point server ensuring collection and movement of commercial metering data into the data
base;

database server which stores and processes information;

WEB servers for transfer of information to AWS. Users interface will be built based on the WEB
technologies.
CMS upgrading will enable the Company to remove the following shortcomings of the current system, particularly:







enhancement of network operation reliability and accuracy of electricity figures determination owing to
replacement of obsolete data collection and communication units and metering devices;
integration of CMS of energy market participants with CMS of the Company by increasing storage
capacity;
possibility to collect data from the state-of-the-art meters;
real-time connection to meters and direct access to meters to request the necessary information,
corrections and meters parametrization;
enhancement of users mobility owing to using the client-based browser;
automation of data communication to BEM system;
permanent control of data accuracy;
7.2.4
Automation of electricity losses calculation
The initiative on automation of losses calculation will be implemented to assist in achievement of the strategic task
of the Company on enhancement of operating activity performance. The necessity of such initiative is
preconditioned by high financial outlays in the Company for electricity transmission losses (over 30 % of the
aggregated Company expenses - over 2.5 billion kWh per year)
Currently losses are calculated manually since CMS is not featured to collect data from all metering devices of all
energy market participants. Their infrastructure requires installation of modern CMS ensuring data
communication with CMS of the Company.
The automated loss calculation system (hereinafter referred to as ALCS) will be launched in the Company to
promote automated losses calculation and monitoring in the Company. This system will be integrated with CMS
and ADCS systems. Functions of the system will allow for the following calculations:




Monthly-based calculation of actual losses;
Calculation of operational losses;
Losses calculation in network elements;
Power balances calculation.
Monthly Calculation of Actual Losses;
ALCS will calculate losses in the end of the month. The system will provide for manual data entry in accordance
with the monthly acts signed with consumers (possible to enclose the copies of acts) for end-points of the network
connected to CMS of the Company. Manual data entry will be envisaged for monthly actual volumes of electricity
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transmitted via Kazakhstan grid specifying consumers and amount of auxiliary consumption. Data will be stored in
the central database with archive for 5 years.
Calculation of Operational Losses;
ALCS will calculate operational losses at intervals depending on the frequency of data collection by CMS. For
frontier network points which are not connected to CMS, ALCS provides for automatic calculation of approximate
values of consumption based on the statistic data coming from the actual consumption for the previous periods (for
the previous month, for the similar period in the last year). Specific losses value will be calculated by ALCS based
on automatic calculation of approximate values of electricity volumes transmitted via Company grids. In addition,
it will specify consumers and electricity consumption for economic needs based on the statistic data for the
previous periods (for the previous month, for the similar period in the last year).
Losses Calculation in Network Elements;
ALCS will, based of CMS and ADCS data, calculate actual monthly losses broken down into the following
components: economic needs, reactor losses, standby losses, load losses in lines and transformers.
Substation Balances Calculation
ALCS will automatically build substations electricity balance on monthly results. For lines that are not connected to
CMS, the system will provide for manual data entry. ALCS will also calculate an admissible value of imbalance and
figure the deviation of actual values from the admissible ones.
ALCS initiative will enable the Company to:

Perform the centralized monitoring and recording of electricity losses in operational mode;

Enhance accuracy and transparency of losses management;

Perform the profound analysis of losses structure in different sections and thus timely define the losses
centres.
The above advantages of ALCS will provide for timely detection of factors significantly affecting the losses and
adoption of corresponding measures minimizing the losses.
7.2.5
Automation of technical control (safety) and occupational health
One of the task of the long-term Company development strategy is the assurance of occupational health. Currently
there is an untimely performance of some correction and preventive measures of technical control in the Company
by the persons responsible for such measures. Thus, there is a greater risk to have human losses and emergencies
at the production facilities. Implementation of occupational health assurance task as well as enhancement of
efficiency of technical control and occupational health will be promoted through introduction of the initiative
focused on automation of this process.
The following alternative scenarios for implementation of this initiative were determined:



Ready-made solution;
DMS based implementation;
partial automation of technical control process through corporate mail and standard software.
Analysis of each alternative scenario is given below:
Ready-made solution
Description
Automated Technical Control System will be
web-based.
Advantages
 Automation of the whole technical
control process and implementation
of all required functions;
 Strengthening of control over
implementation of the necessary
actions;
 Relatively longer terms of
implementation as compared to the
implementation on DMS base.
 Reporting transparency
Disadvantages
Score
 High cost of ownership
 Training of personnel
DCM based implementation
Description
Advantages
Disadvantages
Valuation
DMS copying up to substation and TES level.  Relatively
low
cost
of  Longer
terms
of
project
Adjustment and possible modification of DMS
implementation as compared to
implementation depending on
for automation of the technical control process.
the terms of DMS copying in
purchase of ready-made solution.
branches, TES and substations.
 Reporting transparency
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Description
Advantages
Disadvantages
Valuation
 Training of personnel
 Possible incomplete covering of
Company
requirements
regarding the functions of the
system.
Partial automation of technical control process through corporate mail and standard software
Description
Advantages
Disadvantages
Tasks reminding process at substations and  Low cost of implementation as  Absence of internal control when
TESs will be automated through corporate
compared to possible alternatives.
using MS Excel
mail. Data will be compiled in the branch and  Low cost of ownership as compared  Partial automation of the process
Executive Administration by ftp-servers, batto possible alternatives.
files and MS Excel macros.
 The shorter terms of implementation
as compared to the possible
alternatives
Score
Based on the analysis, we have chosen a scenario for implementation of this initiative through introduction of the
ready-made solution.
The initiative will be implemented through introduction of the ready-made web based software with client-server
architecture. Client software will be installed at substations, TES, MES and EA.
Automated technical control and occupational health system will meet the requirements as follows:


planning of technical control and occupational health measures;
documenting of procedures and measures of technical control and occupational health by all participants
of this process;

monitoring and control of these measures performance;

notification of responsible persons of the unfulfilled tasks;

authentication of procedures and documents;

automatic compilation of data on the work performed in branches and EA and post-performance
reports;
Implementation of this IT initiative will bring the Company the following advantages:



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mitigation of operational emergency risk by decreasing the number of unfulfilled measures;
more transparency and strengthening of control during technical control and occupational health
process;
cutting down the human factor in ensuring NPG reliability.
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7.3
Improvement of Automatic Control in Support Processes;
7.3.1
Introduction of Document Management System in KEGOC Branches
and its Integration with the DMS of the Executive Administration
The strategic goals of the Company are to enhance the operational efficiency and improve the corporate
management system. These strategic goals and strategic task for enhancement of administrative and economic
activity will provide for implementation of the initiative on modification and extension of the functions of DMS.
This initiative will include the following:

Coping of DMS in the Company's branches;

Integration of DMS and ERP;

remote access to DMS for heads from EA and Branches to enhance tasks performance and reduce labour
input;
In branches, the initiative will be implemented through copying. DMS will connect to Executive Administration of
the Company for data synchronization. DMS implementation through copying will optimize costs and speed up the
implementation thanks to the lessons learned at the pilot stages.
DMS will provide for centralized storage of the elaborated templates and standards of the documents. Besides, it
will allow for implementation of tasks execution control and document progress tracking in Executive
Administration and in the branches of the Company. Thus, document management process in the Company will be
fully transparent.
Implementation of this initiative will bring the Company the following advantages:

significant reduction of document circulation;

immediate access to the necessary documents in EA and in the Company's branches;

more efficient cooperation in units both in EA and in the Company's branches.
For instance, there will be a faster approval of documents under various business processes of the Company,
cutting of time for searching of the necessary documents. In addition, there will be a new option of parallel work in
a document.
Integration of DMS with ERP system will ensure intensification of transaction documents and contracts processing
owing to archive of source documentation in DMS.
In the outlook to meet the requirements of the external regulator (National archive of the Republic of Kazakhstan)
and external auditor and to speed up document searching process, the Company will consider the introduction of
electronic archive on DMS base.
Prior to implement the DMS initiative in the Company's branches and before integration with DMS of the
Executive Administration it is notable to study the use of cloud technology option. Implementation of the project
through IT infrastructure outsourcing has the following advantages:

saving of funds for IT personnel upkeep and purchase of server equipment;

control of resource utilities;

reliability of operation owing to distributed processing independently from specific hardware.
7.3.2
Automation of personnel training process
Strategic IT initiative on automation of Company personnel training process will be implemented to follow up
the strategic initiatives of the Company to intensify the efficiency of administrative and economic activity and
raising of personnel qualifications. Automation of this process is essential for development of the Company due to
research intensity of the sector and a huge staff.
This initiative will provide for automation of the following processes:



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centralized storage of the training documents;
planning and administration of the employee training process (elaboration of training programmes for
each employee);
training of the personnel through the use of specially developed media-tutorials;
56

qualification tests of the personnel;

monitoring of training programmes follow-up;

record-keeping and analysis of training results.
To effectively implement the above tasks the automatic integration with human relations module will be done.
The special task under this initiative will be the technical upgrade of the Company Training Centre situated in
Borovoye village (Akmolinskaya oblast). This initiative will include the following:

technical equipment of training rooms (including equipment of the occupational health room), for
instruction of the employees comprising the operational unit of the Company (training simulators,
computer classrooms, software, etc.);

covering the whole territory of the Training centre with wireless Internet access;

connection of the Training Centre to CDN of the Company.
Additionally, the electronic library will be implemented under this initiative. It will be the digitalized archive of
technical libraries of the Company. Electronic library will be accessed through internal corporate portal of the
Company.
Inventory of the paper copies of the books in technical libraries of the Executive Administration and branches of
the Company will be performed. Inventory will help in compilation of the books catalogue that are to be digitalized.
Creation of electronic books will be performed through scanning.
To facilitate electronic library implementation the functions of the internal corporate portal will be upgraded to
keep records of electronic books and separated in spheres. Additionally, to prevent the distribution of intellectual
property of the Company the functions of books protection from copying to local carriers will be implemented in
the corporate portal. Electronic books can be read only in the corporate portal.
Implementation of the IT initiative will entail the following results:



enhancement of operating efficiency, motivation and loyalty of the Company employees;
standardization, optimization and increase of transparency of training process for personnel of the
Company;
mitigation of skills concentration risk at certain employees and possible loss of skills.
7.3.3
Development of Automated Balanced Scorecard System
One of the tasks of the long-term development strategy of the Company is the enhancement of efficiency of
administrative and economic activity. The Company implemented the Balanced Scorecard System (hereinafter
referred to as BSC) under this task. This system will be further automated. At the moment of elaboration of this
Strategy there was defined an initiative in development of the automated BSC.
This initiative will be performed upon implementation of the corporate data bank of the Company. This initiative
will provide for integration of automated BSC with DWH (EAIS - DWH subsystem) Implementation of this
initiative is necessary for:

increase of flexibility in reports preparation;

decrease of cost of ownership;
Development of automated BSC will entail as follows:



reduction of labour contribution due to automation of data collection and consolidation process with
regard to strategic goals of the Company and other key performance indicators (KPI) at different levels;
formation of the centralized information source based on key balanced indicators (hereinafter referred to
as KBI) and KPI of the Company and formation of the efficient and transparent instrument calculating and
monitoring of KBI and KPI;
speed-up of decision-making process by Top-Management of the Company;
7.3.4
Introduction of a corporate system of applications integration and
Business Intelligence analytical system
Implementation of the initiative on Corporate System of Applications Integration (EAIS) and Analytical System of
Business Intelligence Class includes the following projects:

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Implementation of integrated bus (EAIS - Enterprise Service Bus subsystem);
57


Implementation of the Common Master Data Management System (EAIS - Master Data Management
System subsystem).
Introduction of a corporate Data Warehouse (EAIS - subsystem and analytical system of Business
Intelligence class) hereinafter BI).
The following alternative scenarios for implementation of this initiative under the last project were determined:
 Implementation of DWH and full-fledged software product of BI class;
 implementation of the alternative product for reporting;
Analysis of each alternative scenario is given below:
Implementation of DWH and full-fledged software product of BI class;
Description
Advantages
Disadvantages
Implementation of Corporate Data  Possibility of building the dynamic reports  High
requirements
to
the
Warehouse and
and, thus, ability to analyse the influence
competence
of
the
System
Analytical system of BI class to optimize
of various factors on the activity of the
Integrator due to complexity of the
the reporting process.
Company and forecast the Company
project
Implementation of ETL solutions to
development trends.
 High cost of ownership
optimize data
 Increase
of
flexibility
in
reports
preparation;
 Relatively low cost of ownership
 Possibility to introduce other DWH based
analytical systems.
 Load relief from the transactional
databases.
 Analytical process covering greater time
horizon.
Score
Implementation of the Alternative Product for Reporting
Description
Introduction of the software product for
building of the reports based on the
existing distributed databases.
Advantages
 Low cost of implementation
Disadvantages
Score
 High cost of ownership due to
necessary periodic upgrading of
reporting forms and operational
expenses for integrated platforms
 Lower level of dimensional scaling
and flexibility of reports building
 Impossibility to build dynamic
reports
 Exposure to transmission capacity
of communication channels
 Greater dependence on the
integrator;
 Heavy load on transactional
databases.
 Analytical process is limited by a
short time horizon for data
storage;
Having analysed the situation the implementation scenario for this project was chosen; it will be the introduction
of the Corporate data warehouse and full-fledged software product of BI class.
Project on Implementation of the Integrated Bus
The analysis of the current situation with the ITS in the Company showed that a number of the miscellaneous
information systems and the lower level of integration between these systems entailed duplication of data entry and
significant increase of labour contribution. Moreover, such situation leads to decrease of quality of data important
for managerial decisions.
The Company integrated several information systems (e.g. Oracle e-Business Suite and Oracle Hyperion).
However, there is no a common environment for data exchange between information systems.
To solve the above problems there will be a special project on introduction of the integrated service bus. Integrated
bus will be a software and hardware system allowing us to integrate a great number of information systems and
applications and to set the server based interconnection between them. Implementation of integrated bus will
mean the transition to building of IT infrastructure based on service-oriented architecture (Service Oriented
Architecture, SOA).
Integrated bus will integrate the main operational and information systems as well as ERP system at the Executive
Administration level. The detailed schematic picture of integration is given in Section 6.3.6.3
Implementation of the integrated bus will lead to the following:
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
Optimization of business-processes of the Company which use several information systems;

optimized costs for the information systems integration support;

formation of the common controlling unit responsible for updating and submission of data from various
information systems;

improvement of data exchange transparency within the existing and newly introduced businessprocesses;
Project on Implementation of the Common Master Data Management System
One of the key tasks under formation of the common information area is unification and standardization of
Company data using Master Data Management System (RD). Implementation and arrangement of the centralized
recording of the reference information and distribution of this information to all information systems of the
Company will contribute to improvement of data quality necessary to make managerial decisions.
This project provides for integration of RD management system with other information systems. RD will form a set
of common reference books and classifiers of the Company. The peculiarity of RD management system is that it will
be used in various documents relating to different business processes. The main objectives for implementation of
RD management system are as follows:


identification and unique character. Unique identification of data allowing us to make references from
other RD elements;
structuring for creation of information files necessary to store numerous elements.
Implementation of RD management system will reduce the likelihood of erroneous and incorrect actions and
improve transparency of work and quality of managerial information.
Project for introduction of a corporate Data Warehouse (DWH) and Business Intelligence system.
Within the Company's strategic tasks for enhancement of administration and economic operations efficiency,
enhancement of operating activity efficiency and growth of net income, the Company will implement full BI
product introduction initiative. The system will be used for data collection, storage, compilation, analysis and
submission during taking decisions by the Company's management.
Implementation of the initiative also implies introduction of DWH. DWH will contain data from financial and
operational systems of the Company's Executive administration and branches in structured, unified and aggregated
form. Data will be aggregated, standardised and structured using ETL solutions. Introduction of BI system over
DWH will enable to use the following opportunities:

faster and more accurate preparation of reports;

preparation of non-standard reports by users without involvement of IT specialists and as consequence,
more flexible preparation of reports;

Analysis of influence of different factors on the Company's operations and forecast of its development
trends;

more profound analytics owing to covering historical sources for more time horizon;

enhancement of decision making process efficiency;

load reduction in transactional system database;

possibility to deploy other analytical systems based on DWH in the Company.
Deployment of BI system will ensure efficiency of the following functions performance in the part of the Company's
strategic development:
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
set goals attainability assessment;

assessment of resources use efficiency;

assessment of operating, investment and financial operations efficiency;

business modelling and assessment of investment projects;

cost management, tax planning and investment planning.
59
7.3.5
Automation of the Risk Management System
One of the tasks within the Company's strategic goals regarding development of corporate governance practice to
the level of leading world companies and sustainable development is to improve the risk management system
(RMS). Currently, RMS development by external consultants is at the stage of completion. The following stage of
RMS improvement is its automation. RMS automation will enable it to build integrated system for information and
tool support to risk identification and classification processes, definition of their importance, definition of
measures for their management and risk prevention. Another important aspect is to prepare reports on risk current
status and risk change dynamics for prompt submission of reports to the Company's management.
Introduction of automated decision on risk management will result in the following:

enhancement of risk management transparency in the Company;

introduction of corporate governance practice;

option to raise shareholder value through improvement of the entity management system
7.3.6
Development and Extension of ERP System Features
The following alternative scenarios for implementation of this initiative were determined:


Acquisition of separate ERP module;
improvement of ERP system after integration with DMS.
Analysis of each alternative scenario is given below:
Option 'Acquisition of separate ERP module'
Description
Advantages
Disadvantages
Introduction of additional module to automatize  More flexible system in case of change to
cash flow planning process. Integration with
Samruk-Kazyna reporting form
Samruk-Kazyna web-portal
 Reduction of labour efforts owing to
automated integration with SamrukKazyna web-portal
Score
Option 'Improvement of ERP System after Integration with DMS'
Description
Advantages
Disadvantages
Preparation of reports in accordance with Samruk-  Low cost and short term of introduction  Dependency on
Kazyna requirements based on the data regarding
implementation of IT
 Availability of own developers for
payments stored in ERP. DMS and ERP integration
initiative for DMS and
improvement of ERP Oracle
in part of download of acceptance certificates will
ERP integration
be made to generate these data
 Risk of failure to meet
obligations on the
deadlines fixed by
Samruk-Kazyna (1
March 2014)
Score
Based on the analysis, we have chosen a scenario for implementation of this initiative through acquisition of
separate ERP module.
Currently, working group for improvement of treasury operations functions in Samruk-Kazyna (hereinafter
referred to as the Fund) One of set tasks for the group is introduction of centralised treasury system components.
In this connection, the Company will acquire a separate ERP module to automatize cash flow planning process as
required by the Fund. Cash flow planning will be performed weekly; in turn, this will facilitate enhancement of cash
flow transparency.
Introduction of additional module under the Fund financing plan will lead to the following advantages:



efficient cash flow management;
assurance of transparency to the Fund as well as the Company's management (monitoring of payment
planning, incomes, expenses etc.);
strengthening of control over cash flows and enhancement of efficiency of reserve funds use.
Additional ERP system module under the financing plan will efficiently update data on cash flows, thereby having
made qualitative forecast regarding future payments and mitigated the Company's risks.
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7.3.7
Automation of the Project Management Process
One of the tasks within the Company's strategic goals regarding development of corporate governance practice to
the level of leading world companies and sustainable development is to automatize project management process.
The project management process automation initiative will be implemented to facilitate achievement of the
Company's strategic goal regarding development of corporate governance practice and sustainable development.
This initiative also correlates with the expectations of Samruk-Kazyna as the Company's sole shareholder.
Within the Company's operations, project management methodological framework will be improved in accordance
with the best world practices PMBOK and ISO 21500 at the initiation of projects and programmes.
Further step will be project management process automation based on ERP system with regard to the existing EAM
system features. The project management process automation will grant the Company the following advantages:

optimisation of costs for implementation of projects due to control over expenditure of funds;

mitigation of risk of failure to meet the project deadlines and programmes;

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option of distributed performance of tasks specific to project management: scheduling, resource
levelling, reporting on separate projects, organisation itself and project portfolio.
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7.4
7.4.1
Development of ITS infrastructure
Improvement of the data transmission rate and quality in CDN
Functioning and further development of Corporate data network (CDN) is mainly determined by the requirements
of business units for access to information resources in the purposes of operational management of the Company.
Therefore proposed project solutions will take into account the possibility of further growth both numerous
information systems and quantity of users of the existing and newly deployed applied information systems, as well
as scope of tasks to be solved and necessity of their functionality extension (see principle of scalability).
Corporate data network (CDN) will be meant to:

allocate single information space for the Company's personnel;

ensure access to the Company's information systems;

provide communication service (telephone, radio communication);

provide access of user groups to I/O network appliances (printing and plotting devices, and magnetic
tape libraries).
Key alternative scenarios of this initiative implementation are as follows:




Laying of FOCL only at OHTLs being built;
Laying of FOCL only at OHTLs being built and installation of radio relay communication;
FOCL within the Company;
Installation of radio relay communication at backbone OHTL.
Analysis of each alternative scenario is given below:
Option 'Laying of FOCL only at OHTLs being built'
Description
Advantages
Disadvantages
OPGW is provided for all backbone  Synergy from two projects for NPG  Low level of CDN transmission capacity
OHTLs covered by the National Power
rehabilitation and CDN upgrading
at separate network segments (not
Grid Rehabilitation Project and OHTLs
covered by the National Power Grid
(capital and operational expenditures)
being built. All the other lines remain  Relatively low costs (as compared to
Rehabilitation Project)
unchanged.
 Relatively high capital expenditures for
third option)
laying of FOCL (as compared to option
 Independence on external conditions
Satellite equipment will be upgraded in
4)
CDN prominent segment (FOCL)
MES and at substations for proper
 Dependency of CDN separate segment

Long
period
of
FOCL
operation
functioning of backup communication
(RRC) on external factors (weather,
channel.
relief, disturbances etc.)
 Maximum
timelines
for
project
Also the Company will acquire active
implementation
network equipment required to
 Low transmission capacity at directions
support new CDN transmission
not covered by upgrading plan
capacity
Score
Option 'Laying of FOCL only at OHTLs being built and installation of radio relay communication';
Description
Advantages
OPGW is provided for all backbone  Reduction of costs for laying and
OHTLs covered by the National Power
maintenance of FOCL
Grid Rehabilitation Project and OHTLs  Sufficient transmission capacity at all
being built.
the Company's power centres
 Relatively low costs (as compared to
Installation
of
radio
relay
laying of FOCL within the Company)
communication at other backbone

Independence on external conditions
directions not covered by the
CDN prominent segment (FOCL)
upgrading
 Longer period of operation (as
compared to other communication
Satellite equipment will be upgraded in
channels)
MES and at substations for proper
functioning of backup communication
channel.
Also the Company will acquire active
network equipment required to
support new CDN transmission
capacity
Disadvantages
Score
 Additional costs for acquisition and
maintenance
of
radio
relay
communication
 Relatively high capital expenditures for
laying of FOCL and acquisition and
maintenance
of
radio
relay
communication (as compared to option
2)
 Long period for project implementation
 Dependency of CDN separate segment
(RRC) on external factors (weather,
relief, disturbances etc.)
 Significant
operational
costs
for
maintenance
of
radio
relay
communication (transponder which shall
be connected to electricity and UPS is
required every 30 km)
 Vulnerability due to radio signal capture
Option 'FOCL within the Company';
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Description
Advantages
Disadvantages
FOCL will be built in ground wire at all the  High transmission capacity
 High capital expenditures
existing transmission lines. All other  High reliability
 Additional financial expenditures
communication channels will be withdrawn
for dismantling and assembling of
 Long period of all the CDN operation
from operation as far as FOCL is built
lines
 Dependency on external conditions
 Long
period
for
project
(weather,
relief,
disturbances
etc.)
Also the Company will acquire active network
implementation
equipment required to support new CDN
transmission capacity
Score
Option 'Installation of radio relay communication at backbone directions'
Description
Advantages
Disadvantages
Radio relay communication is built at sections  Low level of capital expenditures
 Dependency of CDN on external
of scarce transmission capacity
factors
(weather,
relief,
 Rational
arrangement
of
disturbances etc.)
communication in hard-to-reach
Satellite equipment will be upgraded in MES
 The highest operational costs for
places
and at substations for proper functioning of
maintenance of radio relay
 Sufficient transmission capacity for
backup communication channel
communication
(transponder,
the Company's functioning
electricity and UPS are required
 Fast
period
for
project
Also the Company will acquire active network
every 30 km)
implementation
equipment required to support new CDN
 Vulnerability due to radio signal
transmission capacity
capture
 Insufficient transmission capacity
in the long term
 Shorter period of operation as
compared to FOCL
 Limitation in allocation and
withdrawal of frequency resource
by authorised agency in the
Republic of Kazakhstan.
Score
During 2016-2019, construction of fibre cable communication line will be considered at the following
sections: Severny RDC (Ekibastuz) - 220 kV Ekibastuzskaya SS, 220 kV Ekibastuzskaya - EGRES-1, EGRES-1 1150 kV Ekibastuzskaya, Ossakarovka– KarGRES-2, KarGRES-2 – N.Gorod, N.Gorod – CRDC (Karagandy),
KarGRES-2 – Kayrakty, Kayrakty– 500 kV Agadyr.
The above-mentioned lines will provide traffic of different assignment between the Company's facilities at
specified directions: substations-RDC, TES-RDC, and RDC-NDC of SO. The main goal of construction in these
directions is to provide 'optical' ring towards
Taking into account total volume of data flow, big volume of traffic will be provided when introducing
information systems in the following directions: substation, TES, URS - RDC not less than 20 MBps, RDC - NDC
SO - not less than 140 MBps. These indicators of communication channel capacity include baseline speed of
communication of the following data: dispatch and technology data, SCADA data, CMS data, ACS data, emergency
automation data, pre-emergency data, LAN traffic, remote control, video monitoring, RP and EA signals,
conferencing/ video conferencing. Moreover, additional volume of data communication is required when
introducing various modern applications:

diagram of connection and parameters of substation equipment functioning mode;

condition of primary equipment from substations facilities and monitoring subsystems;

from facilities and subsystems for alarm event and process recording;

localisation of faults on transmission lines;

from substation power quality devices;

Document Management System (DMS);

Condition of substation engineering systems etc.
Speed of proposed flows of communicated data was estimated in accordance with the regulatory documents of
Federal Grid Company in Russia:
1. Rules of design, construction and operation of fibre optic communication lines on overhead transmission lines
-110 kV and above, working document 153-34.0-48.518-98 (Clause 2.3.14):
 155/622 MBps transmission system (SDH technology) is recommended to be used on backbone and intersystem FOCL-OHTL;
 8- 34 MBps (PDH) - on zone (internal) FOCL -OHTL.
Comparison of total costs for construction of backbone cable communication line with total costs for lease of
KazakhTelecom communication channels demonstrated expediency of FCOL construction:

Total costs (NPV) for construction and operation of FOCL for the next 30 years come up to KZT 1589 million.

Total costs (NPV) for lease of communication channels for the next 30 years come up to KZT 1422 million.
Incurred cost of difference between two versions of network operation is KZT 167 million for 30 years. The
following assumptions were accepted when estimating economic effect:
 potential gains were not taken into account from FOCL lease;
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



Average discounting rate was determined as 14 % for similar projects;
When calculating effect on corporate income tax base, depreciation rates of the Tax Code of RK were taken
into account;
With respect to analysis of historical data (2010-2013) communication channel lease service will not be
subject to inflation;
Network equipment required for FOCL functioning will not be subject to inflation.
In order to provide required transmission capacity, all facilities constructed and covered by the National Power
Grid Rehabilitation Project) will be supplied with OPGW. This initiative will facilitate reduction of costs for laying
of FOCL because of joint actions for OHTL construction/upgrading.
New radio relay communication will be installed at all other power centres where communication channels should
be extended. In this respect, in purpose of more efficient investment in IT assets, it should be noted that it would be
more expedient to lay FOCL (without regard to landscape) up to 15 km as 'the last mile'. Backup communication
channel will remain satellite communication channel to provide dual path.
Satellite communication channel will be also upgraded. SKY WAN will be changed to SKY EDGE. This technology
has the following advantages:
 improvement of communication quality and reliability die to use of IP MPLS instead of outdated and
unsupported FRAME REALAY technology.
 maintenance of the current equipment (old equipment is not manufactured and maintained any more due
to the fact that operational costs for maintenance of old equipment will grow exponentially)
 traffic unloading at master station due to use of hubless technology (to connect two stations, connection
with master station is unrequired as distinct from SKY WAN), for example: currently, any connection vie
satellite communication channel between two substations shall be made through master station in Astana;
this, in turn, overloads communication channel in Astana. Use of hubless technology allows performing
satellite connection between two substations directly without master station.
While introduction of FOCL and formation of optical rings, the following communication channels will be
withdrawn from operation: PLC channels, radio relay communication and leased communication channels of thirdparty providers
These measures will facilitate establishment of reliable IT infrastructure meeting the Company's current and future
requirements.
7.4.2
Development of Data Centre
This initiative is implemented based on establishment of Data Centre as a part of the Executive Administration of
the Company. Availability of own DC in the Company is conditioned by the necessity of reliable, smooth-running
operation of server equipment for steady performance of functions of System Operator of the UPS. Equipment for
DC will constitute unified and standardized set of IT solutions. Thus, the DC will be a platform and infrastructure
foundation for most applications and information systems of the Company. As a result, services for delivery of
computing power for most applications will be centralised; this will lead to optimization of cost for ownership of
server infrastructure of the Company through:

optimization of server equipment load (optimization of used server equipment quantity);

optimisation of costs for server equipment service and maintenance.
Optimisation and balancing of server equipment load will be provided with increased use of servers that support
virtualization technology. The costs will be optimised by means of introduction of unified approach to purchase of
equipment.
In the long term, establishment of back-up data centre will be under consideration. Its function will be to provide
services if the main DC breaks down; this will ensure continuity of business processes.
7.4.3
Introduction of Business Continuity Assurance Process in case of
Emergency Situations
The following alternative scenarios for implementation of this initiative were determined:



Introduction of business continuity assurance process in case of emergency situations within the Executive
Administration and MES;
Introduction of business continuity assurance process in case of IT emergency situations within the
Executive Administration;
Introduction of business continuity assurance process in case of emergencies within the Company.
Analysis of each alternative scenario is given below:
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Option 'Introduction of business continuity assurance process in case of emergency situations within the
Executive Administration and MES'
Description
Advantages
Assurance of business continuity will  Expandability of IT business continuity
cover information systems in the
process assurance at substations if
Executive Administration, and then
necessary,
and
availability
of
staged introduction in MES
experience for expansion.
 Opportunity to provide fault-tolerant
IT infrastructure in the Executive
administration
Disadvantages
Score
 Relatively high cost of introduction
project (as compared to initiative 1).
 High total cost of ownership in the
long
term
(personnel
and
technologies).
 Risk of IT inaccessibility at substations
 Risk of project failure due to its
complexity
Option 'Introduction of business continuity assurance process in case of IT emergency situations within the
Executive Administration'
Description
Advantages
Disadvantages
Assurance of business continuity will  Expandability of IT business continuity  Risk of IT inaccessibility in MES and at
cover information systems in the
assurance in MES and at substations if
substations
Executive Administration only
necessary,
and
availability
of
experience for expansion.
 Opportunity to provide fault-tolerant
IT infrastructure in the Executive
administration
 The lowest cost of project introduction
 The lowest cost of ownership
Score
Option 'Introduction of business continuity assurance process in case of emergency situations within the
Company'
Description
Advantages
Disadvantages
Valuation
Assurance of business continuity will  Assurance of complete IT business  The
highest
cost
of
project
cover all information systems in the
continuity within the Company
introduction
Executive Administration, and then
 The highest cost of ownership
staged introduction in MES and at
 The most maximum timelines of
substations
project introduction
 The highest risk of project failure due
to its complexity
Based on the analysis, we have chosen a scenario for implementation of this initiative through introduction of
business continuity assurance process in case of emergencies within the Executive administration and MES. The
main factors to choose this scenario are as follows:

high cost of introduction and ownership of project when introducing within the Company (Executive
administration, MES and substations);

high risks of project failure when introducing within the Company (Executive administration, MES and
substations), due to project complexity and the personnel's lack of experience and competence.
Reliable operation of ITS is a critical factor for functioning of the Company's business. It should also be noted that
in result of increased level of business process automation in the Company, consolidation of IT services in the data
centre, the role of IT in the Company's business would only become more critical. In this connection, the policy on
business continuity assurance will be developed and introduced to ensure business continuity in the Company. The
scope of business continuity assurance primarily will cover business processes within the Executive administration,
and then within MES in a staged manner.
In order to mitigate risk of operational and supporting business processes, fault-tolerant technologies and methods
(mesh topology) of corporate network will be applied within IT infrastructure.
As result of development and introduction of business continuity assurance policy and implementation of measures
mitigating risks of IT infrastructure fault-tolerance, the Company will raise the level of business process
accessibility and reliability of IT infrastructure.
7.4.4
GPS Upgrading
Guaranteed Power Supply (GPS) is backup power for the Company's facilities. Its readiness to support operational
systems in case of failure of the main power source is one of key factors of reliable operation of Kazakhstan
National Power Grid.
GPS equipment was put into operation in 2003; GPS equipment service life is 12 years, service life of storage
batteries for GPS is seven (7) years. All the GPS equipment is fully amortised and needs upgrading.
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This project will provide for preliminary inspection of the existing GPS network for conformity to the requirements
for the Company's facilities operation continuity and necessity of subsequent upgrading. Feasibility study will be
developed for follow-up works.
Further, based on conducted inspection, GPS will be upgraded in troubled facilities of the Company.
The key advantages that will be reached through implementation of this initiative are as follows:


improvement of reliable operation of the National Power Grid;
compliance of the Company with the best world practices and recommendations relating to business
continuity assurance.
Implementation of this initiative will result in significant improvement of reliable operation of operational systems.
Moreover, idle hours will be reduced in operation of operational equipment at substations, and this finally will
positively reflect on the reliability of electricity supply to consumers.
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7.5
Improvement of Maturity Level in Information Security
Process
7.5.1
Improvement of cyber security level
The following alternative scenarios for implementation of this initiative were determined:
 Cyber security within the Executive administration and MES;
 Cyber security within the Executive administration, MES and substations.
Analysis of each alternative scenario is given below:
Option 'Cyber security within the Executive administration and MES'
Description
Advantages
Disadvantages
Improvement of cyber security  Required cyber security at the level of  Risk of cyber security incident at the
within the Executive administration
the Executive administration and MES
level of substations
and gradually in the main branches
(average level of cyber security)
 Moderate risk of project failure due to its
complexity
Score
Option 'Cyber security within the Executive administration, MES and substations'
Description
Advantages
Disadvantages
Improvement of cyber security level  Assurance of full level cyber security  The highest cost of introduction project
at all levels of the Company: first of
within the Company (maximum level  The highest cost of ownership
all, Executive administration, then
of cyber security)
 The highest risks of project failure due to
MES and substations step-by-step
its complexity (version II)
Score
Based on the analysis, we have chosen a scenario for implementation of this initiative through cyber security within
the Executive administration and MES. The main factors to choose this scenario are as follows:

high risk of project failure when introducing cyber security within the Company (Executive administration,
MES and substations), due to project complexity and the personnel's lack of experience and competence;

high cost of cyber security system development and ownership within the Company under the cyber
security development within the Executive administration, MES and substations;
Due to more frequent attacks on operational systems worldwide, there is a critical issue on cyber security. Security
of the Company's operational processes is a key factor to ensure uninterrupted operations. Implementation of this
initiative will mitigate the risk of operations interruption, environment pollution and security leakage as result of
cyber-attacks.
Implementation of this initiative includes introduction of innovative solutions of cyber protection means (ADCS
and ASPMS) manufacturers within the Executive administration and systematic introduction of these solutions in
MES.
In the long term, proactive protection means, for example, accumulation of threats base, will be used to raise level
of cyber security.
Benefits of this initiative include:

possibility to differentiate protection means in accordance with the security level;

possibility of proactive management of operations capacity losses risks and environmental impact risk;

prevention from potential cyber-attacks on operational processes.
7.5.2
Introduction of Information Security Management System
The following alternative scenarios for implementation of this initiative were determined:



ISMS introduction within the Executive administration and MES;
ISMS introduction within the Executive administration;
ISMS introduction within the Company (including substations and TESs)
Analysis of each alternative scenario is given below:
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Option 'ISMS deployment within the Executive administration and MES'
Description
Advantages
Disadvantages
Score
Information
security
management  Low cost of project introduction
 Non-coverage of the Company's
system will be introduced in the  Low cost of information security
business
processes
(Executive
Executive administration, and then in all
administration and MES only)
management
system
ownership
MES step-by-step.
(business processes, personnel and  Risk of IS incident at substations
technologies)
 Faster periods of project implementation
owing to IS formalised documentation
 Optimisation of costs for information
security management system coping in
branches and TES using learnt lessons
within the Executive administration and
MES
Option 'ISMS deployment within the Executive administration'
Description
Advantages
Disadvantages
Score
Information
security
management  The lowest cost of project introduction
 Non-coverage of the Company's
system will be introduced within the  The lowest cost of information security
business processes, including the
Executive administration only
main processes (only Executive
management
system
ownership
administration), and occurrence of
(business processes, personnel and
IS incidents at substations and MES
technologies)
as consequence
 The
fastest
periods
of
project
implementation owing to IS formalised
documentation
 Optimisation of costs for information
security management system coping in
MES, branches and TES using learnt
lessons
within
the
Executive
administration
Option 'ISMS introduction within the Company (including substations and TESs)'
Description
Advantages
Disadvantages
Score
Information
security
management  Potential reduction of total costs for  The highest cost of project
system will be introduced in the
introduction (for example, lower prices
introduction
Executive administration, and then in
from manufacturers due to immensity)
 The highest cost of information
MES and substations step-by-step.
security
management
system
ownership
(business
processes,
personnel and technologies).
 The longest duration of introduction
Based on the analysis, we have chosen a scenario for implementation of this initiative through introduction of
information security management system within the Executive administration and MES. The main factors to
choose this scenario are as follows:

high risk of project failure when introducing within the Company (Executive administration, MES and
substations), due to project complexity and the personnel's lack of experience and competence;
 high cost of introduction and ownership at attempt of introduction within the Company;
 low level of information security when introducing information security management system within the
Executive administration.
Responsible units of the Company jointly with EnergoInform JSC will introduce the information security
management system in the Company within the Executive administration, and then stage wise in MES in order to
meet the requirements for business processes regarding information security. Information security management
system will be based on the following fundamental principles:

Confidentiality;

Entirety;

Accessibility.
International standards and practices such as ISO 27001, NIST, ANSI/ISA, NERC and API will be applied as a
basis for creation of information security management system. Furthermore, the Company will perform continuous
working on the following:


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testing of information security management system for compliance with the laws of the Republic of
Kazakhstan;
monitoring of working capacity efficiency, risk, threat and vulnerability analysis, as well as application of
corrective measures.
68
Implementation of strategic aim to introduce the information security management system will grant the Company
the following advantages:




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Accessibility of operational business processes;
Confidentiality, entirety and accessibility of used information within business processes;
improve corporate governance;
improve the confidence of shareholders, international partners and clients.
69
8. Plan of IT Initiatives
Implementation
Plan of IT initiatives implementation depends on the following:

prioritizing of IT initiatives;

mutual influence of IT initiatives.
8.1
Prioritizing of IT Initiatives;
Comparative analysis of IT initiatives was held to determine priority of these initiatives with account of:

importance to achieve the Company's strategic aims;

complexity of IT initiatives implementation plan.
Prioritizing results are given in the Figure below:
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Figure 8.1 IT Initiatives and Priorities
Cost
I
Name of IT Initiatives
II
1
High
5
6
20
14
9
4
2
18
Importance
17
11
III.
12
15
7
8
1
Optimization of ITS Management Model
2
Introduction of business continuity assurance process in case
of emergency situations
3
Refinement of IT Services and Maturity Level of IT
Processes
4
Optimization of the licensing and software update
process
5
Upgrade of SCADA/EMS
6
16
7
3
21
13
19
IV.
10
8
9
Low
Complexity
High
Importance means a level of influence on achievement of strategic
business goals
Introduction of document management system in
KEGOC branches and its integration with the DMS
of the Executive Administration
Automation of personnel training process
Development of Automated Balanced Scorecard
System
10
Introduction of a corporate system of applications
integration and Business Intelligence analytical
system
11
Automation of technical control and occupational
safety
12
Development and extension of EMS features
13
Low
Upgrade of commercial metering system
Automation of the Risk Management System
14
Improvement of the data transmission rate and quality
in CDN
15
Improvement of cyber security level
16
17
18
Introduction of Information Security Management
System
Development of Data Centre (DC)
GPS upgrading
19 Automation of the Project Management Process
20
Automation of electricity losses calculation
21 Automation of the electricity and capacity balance
forecasting process
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8.2 Mutual Influence of IT Initiatives
The initiatives were analysed for their dependency on each other in order to analyse the mutual influence of IT initiatives relative to each other. The analysis addresses both
technical dependency of initiatives on each other and organizational aspects specific to the Company. The results of analysis of mutual influence of IT initiatives are given in the
Figure below:
9(II)
20
9(I)
5
10
7
Automation of
business
processes
Name of IT Initiatives
1
2
12
3
6
21
13
8
19
11
4
5
6
7
18
IT Infrastructure
17
8
14
9
2
10
11
Information
security (IS)
15
12
13
16
1
4
IT activity
management
Optimization of ITS Management Model
Introduction of business continuity assurance process in case
of emergency situations
Refinement of IT Services and Maturity Level of IT
Processes
Optimization of the licensing and software update
process
Upgrade of SCADA/EMS
Upgrade of commercial metering system
Introduction of document management system in
KEGOC branches and its integration with the DMS
of the Executive Administration
Automation of personnel training process
Development of Automated Balanced Scorecard
System
Introduction of a corporate system of applications
integration and Business Intelligence analytical
system
Automation of technical control and occupational
safety
Development and extension of EMS features
Automation of the Risk Management System
14
Improvement of the data transmission rate and quality
in CDN
15
Improvement of cyber security level
16
17
18
Introduction of Information Security Management
System
Development of Data Centre (DC)
GPS upgrading
19 Automation of the Project Management Process
3
20
Automation of electricity losses calculation
January 2014
21 Automation of the electricity and capacity balance
forecasting process
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8.3 Plan of IT Strategy Implementation
Plan of IT strategy implementation extending to 2019 was developed based on prioritizing of IT initiatives and analysis of their mutual influence. The Implementation plan is
given in the Figure below:
Figure 8.3.1 Plan of IT Strategy Implementation
* - This budget is only for initial subprojects. To determine the total budget a feasibility study is required
** - a feasibility study is required to determine the budget
*** - it is proposed to use DTIT's resources
**** - The budget for the implementation of the initiative has been already allocated
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9. Risk Register for
Implementation
No.
1
Risk
Blurring of responsibility
for the strategy
implementation
2
Resistance of the
Company's personnel to
changes
3
Delays and increased
expenses during IT project
implementation (scope and
complexity of projects, lack
of competence)
4
Disinterest in participation
of key business users in
projects
Lack of competence and
knowledge loss during IT
strategy implementation
5
IT
Strategy
Risk Mitigation Measures
 Appointment of responsible IT personnel for implementation
of IT projects
 Appointment of sponsors for IT projects from among the
Company's management
 Appointment of IT project working groups comprising of
business and IT representatives
 Periodic control of IT project progress
 Appointment of sponsors for change management from
among the Company's management
 Regular communication to personnel on structure of changes,
roles, goals and expectations through IT portal etc.
 Regular communication on obtained results through IT portal
etc.
 Interaction with interested parties on IT projects within the
project office
 Training for the Company's personnel
 Training for managers of IT projects for IT project
management methodology
 Application of the Company's IT project management
methodology
 Assessment of project risks before commencement of the
project
 Periodic control of IT project progress
 Preparation of regular reports on IT project implementation
 Regular information sharing among sponsors on IT project
implementation
 Education and training for IT personnel and business users
 Project documentation during IT strategy implementation

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Appendix No. 1: Terms and
Abbreviations
Project
Information and telecommunications development strategy of
KEGOC for 2013 - 2019
AAMS
Automated asset management system
ADCS
Automated dispatch control system
ARPAW
Automated relay protection and automation workstation
ASPMS
Automated substation process management system
AUSMS
Automated user support management system
BCP
Business continuity plan
BEM
RES
Balancing electricity market system
Renewable energy source
BEMS
Balancing electricity market system
Beneficiary Code 27001
International standard of information security, developed jointly by the
International Organization for Standardization and the International
Electrotechnical Commission
BSC
Balanced Scorecard
CAP
Comprehensive action plan
CDN
Corporate data network
CIM
Common information model
CMR
Commercial metering system
CobIT
A package of open documents in the field of IT governance, audit and IT
security
Company
DLS
Kazakhstan Electricity Grid Operating Company JSC
Daily Load Schedules and Power Balance Subsystem
DMS
Document Management System
DMZ
Demilitarized zone
DRP
Disaster recovery plan
DS
Digital signature
DWDM
Wavelength division (WDM) technology
EA
ECP
Executive administration
Energy Consumption Planning Subsystem
EFCC
Energy Facility Condition and Configuration Subsystem
EFDS
Energy Facility Diagnostics System
ERP
Enterprise resource planning
FOCL;
FO communication lines
FS
Feasibility study
FTE
Full-time equivalent
GIS
Geographic information system
GPS
Guaranteed Power Supply
IEC
International Electrotechnical Commission
IS
Information system
PwC
75
ISMS
Information Security Management System
IT
Information Technology
IT Process
ITD
a tool to organize a system of effective management and measurement of IT
Innovation and technology development
ITIL
Library, describing best practices to organise the operations of units or
companies engaged in the provision of information technology services
ITS
Information and telecommunications system
MES
Intersystem Electric Networks
MIS
Management Information System
MPLS
Multiprotocol Label Switching
MRS
Management reporting system
NDC SO
the National Dispatch Centre of the System Operator
NPG
National Power Grid
OIS
Operational Information System
OLA
Operational-level agreement
PBX
Private branch exchange
PLC channels
PLC channels
RRC
Radio Relay Communication
SCADA / EMS
Supervisory Control and Data Acquisition
Service Desk
Service Desk
SLA
SSU
Service-level agreement
Separate structural units
SW
Software
SW pckg
Software package
SWOT analysis
Identification of weaknesses and strengths in IT architecture, organization;
analysis of threats and identification of opportunities in the internal and
external environment;
TES
Territorial electricity networks
TITMO
Telecommunications and Information Technology Management Office
UPS
Unified Power System
VPN
Virtual private networks
PwC
76
Appendix No. 2: Interrelation of IT Objectives with the
Company's Strategic Goals
IT initiatives
Strategic tasks
Strategic goals
Map of ITS Development Strategy goals
Reliable operation of the
Kazakhstan National
Power Grid in accordance
with the state needs
Quality
performance
of its functions
by the System
Operator
Deployment of
information
security
management
system
Introduction of
business
continuity
assurance process
in case of
emergency
situations
Improvement
of the
efficiency of
administration
activity
Enhancement
of efficiency of
operational
activity
Upgrade of ADCS
(SCADA/EMS)
Improvement of
cyber security
level
Categories of IT Initiatives:
PwC
Enhancement of the
efficiency of the
Company's operations
Increase in the shareholder
value of the Company
Innovations
development
and
introduction
CMS Upgrading
Optimization of
ITS Management
Model
Improvement
of the
customer
servicing level
Introduction of
CSAI and BI
system
Development of
Data Centre (DC)
Enhancement of IT Management
Function;
Net profit
growth
Improvement of
the data
transmission rate
and quality in
CDN
Introduction of
Document Management
System in KEGOC
Branches and its
Integration with the DMS
of the Executive
Administration
Promotion of corporate governance
and sustainability
Maintenance
of
shareholders
rights and
development of
stakeholder
relationships
Professional
development
of personnel
RMS Automation
Refinement of IT
Services and
Maturity Level of
IT Processes
Improvement of automatic control in
business processes
Enhancement
of personnel
loyalty
Automation of
personnel
training process
Development and
extension of EMS
features
Achievement of stable
partnership relationships with
the utility companies of
neighbouring countries.
Maintenance
of
occupational
safety
Development of
automated BSC
Optimization of
the licensing and
software update
process
Enhancement of ITS infrastructure
Maintenance
of parallel
operation with
power systems
of
neighbouring
states
Automation of
technical control
and occupational
safety
Automation of
electricity losses
calculation
Improvement and enhancement
of the efficiency of the electricity
market in Kazakhstan
Automation of the
Project
Management
Process
Automation of the
electricity and
capacity balance
forecasting
process
Improvement of IS maturity
77
GPS upgrading
Appendix No. 3: Portfolio of IT Strategic Projects with regard
to their Classification
No.
Strategic IT
initiatives
Optimization of IT
management model
IT projects
Description of IT projects
Updating of regulations and job
description
for
TITMO's
personnel
Updating of regulations and job description
for TITMO's personnel according to the goal of
the IT management model (reorganisation of
TITMO into TITMD)
1
Establishment
of
Coordination Council
Business
continuity
assurance in case of
emergency situations
2
Refinement of IT
Services and Maturity
Level of IT Processes
Development of IT BCP policy
within
the
Executive
administration and then in MES
in stages
Implementation of IT BCP policy
within
the
Executive
administration and then in MES
in stages
Introduction of IT processes in
the Executive administration
IT process re-engineering in
branches using the policies and
procedures of the Executive
administration
Improvement of IT process
maturity level in the Company
3
4
ITS
Optimization of the
licensing and software
update process
Upgrade of ADCS
(SCADA/EMS)
5
Elaboration of policies and
procedures for software assets
management
Automation of inventory process
and accounting of software
assets management
Analysis of business processes,
definition of functional and
technical requirements, and
elaboration of Feasibility study
Selection of system
System introduction
External quality control
6
7
PwC
Upgrade
of
commercial metering
system
Upgrading of telecommunication
equipment, data collection and
transfer unit, meters, server
equipment and software.
Introduction
of
document
management system
in KEGOC branches
and its integration
with the DMS of the
Executive
Definition of processes and
documents
for
flow
and
document management in the
system, definition of functional
and technical requirements for
DMS,
and
elaboration
of
Feasibility study
Approval of the regulations
Coordination Council
Customer
on
Muktar O. Bekenov Managing Director –
Branches and Affiliates
Serik I. Anessov
Development of IT BCP policy within the
Executive administration and then in MES in
stages
IT training and process design in the
Executive administration Development of
policies and procedures for IT processes in the
Company
IT process re-engineering in branches
Sponsor of IT project
TITMO
ITS
Implementation of IT BCP policy within the
Executive administration and then in MES in
stages
Responsible person on
behalf
of
TITMO/EnergoInform
JSC
Serik I. Anessov
Serik I. Anessov/ Nurlan B.
Kundakbayev
Start Date
End Date
Duration of IT
initiative
Phase
I:
1QTR2014
Phase
II:
1QTR2018
Phase
I:
2QTR2014
Phase
II:
2QTR2018
3 months
2QTR2014
3QTR2014
6 months
High
High
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
TITMO
High
High
Serik I. Anessov/ Nurlan B.
Kundakbayev
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
TITMO
High
1QTR2014
4QTR2018
60 months
Further improvement of IT process maturity
level up to '4' level within the Company
Analysis of dispatching business processes,
definition of functional and technical
requirements, and elaboration of Feasibility
study
Selection of automated dispatch control
system (ADCS);
Implementation of SCADA/EMS upgrading
initiative
Strategic initiative implementation quality
control with the involvement of third party
Upgrading of telecommunication equipment,
data collection and transfer unit, meters,
server equipment and software.
Analysis of flow and document management
processes, definition of functional and
technical requirements, and elaboration of
Feasibility study for improvement
High
High
Elaboration of policies and procedures for
software assets management
Automation of inventory process and
accounting of software assets management
Priority
Serik I. Anessov/ Nurlan B.
Kundakbayev
EnergoInfo
rm JSC
Serik I. Anessov/ Sergey A.
Prikhodko
National
Dispatch
Centre of
the System
Operator
(NDC SO)
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
Askarbek
D.
Kuanyshbayev,
Managing Director –
NPG Development and
System Services
3QTR2014
4QTR2014
6 months
High
High
1QTR2015
4QTR2018
48 months
High
High
High
Relay
Protection
and
Automation
Departmen
t (RPAD)
Documenta
tion
Manageme
nt
and
Control
Office
Serik I. Anessov/ Sergey A.
Prikhodko
Kulyai B. Kezekeneva, Head
of Office
Abat
A.
Akmurzin,
Deputy Chairman of
Management Board for
Operations
Kairat T. Zhakipbayev,
Managing Director –
Legal
Support
and
Security
78
1QTR2014
3QTR2015
21 months
High
1QTR2014
1QTR2015
12 months
High
No.
Strategic IT
initiatives
Administration
IT projects
Description of IT projects
Coping
Coping of available DMS in the Company's
branches
Integration with ERP
Strategic initiative implementation quality
control with the involvement of third party
Analysis of personnel training business
process, definition of functional and technical
requirements for information system for
automation of this process
Selection
of
information
system
for
deployment
Development of media textbooks for distance
training
Analysis of functional and technical
requirements
Purchase and installation of equipment for
training centre
Integration with ERP
External quality control
Automation
personnel
process
of
training
Analysis of business processes,
definition of functional and
technical requirements
Selection of system
8
Development of media textbooks
Analysis of requirements for
training centre infrastructure
Purchase and installation of
equipment
9
Customer
Development
of
Automated Balanced
Scorecard System
Integration of BSC
Implementation of BSC automation initiative
Introduction
of a
corporate
Data
Warehouse
(DWH)
and
Business
Intelligence system.
Analysis of business processes,
definition of functional and
technical requirements, and
elaboration of Feasibility study
Selection of system
Fundamental analysis of dispatching business
processes, definition of functional and
technical requirements, and elaboration of
Feasibility study
Selection of BI information system for
introduction
Introduction of instruments for data
migration from transactional database to
DWH.
Introduction of Corporate Data Warehouse
Selection of DWH information system for
introduction
DWH introduction project implementation
Strategic
situation
room
initiative
implementation quality control with the
involvement of third party
Analysis of technical control and occupational
health business processes, definition of
functional and technical requirements, and
elaboration of Feasibility study
Selection of automated technical control and
occupational health system
Implementation of technical control and
occupational health automation initiative
Strategic initiative implementation quality
control with the involvement of third party
Analysis of risk management system business
processes, definition of functional and
technical requirements, and elaboration of
Feasibility study
Selection of risk management system
information system for introduction
Implementation of RMS automation initiative
Strategic initiative implementation quality
control with the involvement of third party
Introduction of ETL instruments
10
Introduction of DWH
Selection of system
System introduction
External quality control
Automation
of
technical control and
occupational health
11
Analysis of business processes,
definition of functional and
technical requirements, and
elaboration of Feasibility study
Selection of system
System introduction
External quality control
Automation of the
Risk
Management
System
12
Analysis of business processes,
definition of functional and
technical requirements, and
elaboration of Feasibility study
Selection of system
System introduction
External quality control
Development
extension of
features
and
ERP
Definition of functional
technical requirements
and
Analysis of
requirements
functional
and
technical
13
System introduction
PwC
Implementation of ERP features development
and extension initiative
Responsible person on
behalf
of
TITMO/EnergoInform
JSC
Khanat A. Aimenov
Human
Resources
Departmen
t
Sponsor of IT project
Start Date
Duration of IT
initiative
Priority
Aibek T. Botabekov,
Managing Director Economics
High
1QTR2015
Nurlan Ye. Duysenov
EnergoInfo
rm JSC
Corporate
Developme
nt
Departmen
t
End Date
2QTR2016
18 months
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
Serik I. Anessov, Head of
Telecommunications and
Information
Technology
Management Office
Zhanabai M. Beksary
Deputy, Chairman of
Management Board –
Corporate Governance
Yerbossyn K. Akhmetov,
Head
of
Corporate
Development Department
Aibek T. Botabekov,
Deputy Chairman of the
Management Board Corporate Governance
Medium
High
1QTR2018
2QTR2018
6 months
High
Corporate
Developme
nt
Departmen
t
1QTR2015
Serik I. Anessov/ Nurlan B.
Kundakbayev
Technical
control and
occupation
al
health
service
4QTR2018
48 months
Bolat Zh. Temirbekov,
Managing Director –
Technical
Supervision
and Supply
Low
High
1QTR2015
3QTR2015
9 months
High
High
High
Serik I. Anessov
Corporate
Developme
nt
Departmen
t
Zhanabai M. Beksary,
Deputy Chairman of
Management Board –
Corporate Governance
High
1QTR2018
2QTR2018
6 months
High
High
High
Treasury
Departmen
t
Serik I. Anessov/ Nurlan B.
Kundakbayev
Aibek T. Botabekov,
Managing Director Economics
High
2QTR2014
Treasury
Departmen
t
2QTR2014
3 months
High
79
No.
Strategic IT
initiatives
14
Automation of the loss
calculation process
15
Automation of the
electricity
and
capacity
balance
forecasting process
16
Automation of the
Project Management
Process
Improvement of the
data transmission rate
and quality in CDN
17
IT projects
Deployment
of
information security
management system
and
Definition of functional
technical requirements
and
System
development
introduction
and
Implementation of electricity and capacity
balance forecasting process automation
initiative
Development
of
project
management methodology
Development of project management process
destination model in accordance with the best
practices
Analysis of functional and technical
requirements
Implementation of project management
automation initiative
Definition of functional
technical requirements
System
development
introduction
and
and
Preparation of Feasibility study
of
communication
Analysis of business processes,
definition of functional and
technical requirements, and
elaboration of Feasibility study
Fundamental analysis of all the Company's
business processes for cyber security
Elaboration of functional and technical
requirements for cyber security Development
of goal state for cyber security process
Selection of systems for cyber security
Achievement of goal state for cyber security
process
Definition of the Company's
information
security
management system frameworks
Definition of the information security
management system frameworks through
elaboration
of
information
security
management system applicability in the
Company
Inventory of assets selected by MES
Analysis and assessment of risks with regard
to inventoried assets
Definition and implementation of information
security measures
Coping of information security
management system pilots
External quality control
PwC
Pre-project
analysis
and
analysis
of
communication
channels
upgrading
expediency Development of comprehensive
communication channels upgrading plan
Communication channels upgrading according
to the comprehensive plan
Cyber security goal state development and
achievement quality control
Introduction of information
security management system
measures
Formalisation and updating of
information security processes
Development of Data
Centre (DC)
Analysis of electricity balance forecast
business process, compilation of business
requirements for the system features
External quality control
Personnel training
20
NPG
Developme
nt
Departmen
t
System
development
introduction
Inventory of assets
Analysis and assessment of risks
19
Analysis of loss calculation business process,
compilation of business requirements for the
system features
Implementation of loss calculation process
automation initiative
and
Selection of system
Achievement of goal state for
cyber security process
18
Customer
Definition of functional
technical requirements
Assembly
channels
Improvement of cyber
security process
Description of IT projects
Definition of functional and
technical requirements, and
elaboration of Feasibility study
Development of comprehensive
personnel interaction plan
Development and/or updating of the existing
information security processes and coping of
processes in MES
Training for business process owners, IT
personnel on application of information
security management system
Coping of information security management
system in the rest MES
Information security management system
deployment quality control with the
involvement of third party
Definition and analysis of functional and
technical requirements, and elaboration of
Feasibility study
Development of comprehensive personnel
interaction plan during establishment and
after introduction of the Data Centre
NPG
Developme
nt
Departmen
t
TITMO
TITMO
TITMO
Responsible person on
behalf
of
TITMO/EnergoInform
JSC
Serik I. Anessov/ Sergey A.
Prikhodko
Serik I. Anessov/ Sergey A.
Prikhodko
Serik I. Anessov/ Nurlan B.
Kundakbayev
Serik I. Anessov/ Sergey A.
Prikhodko
Sponsor of IT project
Askarbek
D.
Kuanyshbayev,
Managing Director –
NPG Development and
System Services
Askarbek
D.
Kuanyshbayev,
Managing Director –
NPG Development and
System Services
Aibek T. Botabekov,
Managing Director Economics
Serik I. Anessov/ Nurlan B.
Kundakbayev
Priority
4QTR2015
3QTR2016
12 months
High
1QTR2015
1QTR2015
6 months
High
1QTR2016
4QTR2016
12 months
Medium
1QTR2014
4QTR2018
60 months
High
1QTR2016
4QTR2017
24 months
Medium
1QTR2014
4QTR2016
36 months
Medium
3QTR2014
1QTR2015
9 months
Medium
Kairat T. Zhakipbayev,
Managing Director –
Legal
Support
and
Security
Security
Service
TITMO
Duration of IT
initiative
Kairat T. Zhakipbayev,
Managing Director –
Legal
Support
and
Security
Security
Service
Head of Security Service
End Date
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
Serik I. Anessov/ Sergey A.
Prikhodko
Head of Security Service
Start Date
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
80
No.
Strategic IT
initiatives
IT projects
Description of IT projects
Inventory
of
equipment
/applications
Comprehensive
plan
for
equipment transfer (equipment
sequence,
backup
storage
processes during transportation,
commissioning
and
testing
schedule)
Establishment of Data Centre
Inventory of operating equipment to define
plans for equipment purchase and migration
Development of comprehensive plan for
equipment migration to the Data Centre
External quality control
21
PwC
GPS upgrading
Survey of the existing state of the
Company's GPS network
Development of design and
estimate documentation
Definition of financing source
and scheme
Tendering under selection of
contractors
Performance of construction and
erection works
Commissioning of the facilities
Customer
Responsible person on
behalf
of
TITMO/EnergoInform
JSC
Sponsor of IT project
Start Date
End Date
Duration of IT
initiative
Priority
TITMO
Serik I. Anessov/ Nurlan B.
Kundakbayev
Muktar O. Bekenov,
Managing Director –
Branches and Affiliates
Phase
I
1QRT2014;
Phase
II
1QRT2016
Phase
I
3QRT2014;
Phase
II
1QRT2017
Phase I - 6
months; Phase II
12 months
High
Implementation of Data Centre establishment
initiative
Strategic initiative implementation quality
control with the involvement of third party
Survey of the existing state of the Company's
GPS network
Development of design and estimate
documentation
Definition of financing source and scheme
Tendering under selection of contractors
Performance of construction and erection
works
Commissioning of the facilities
81