Integrating Plant-level and Enterprise-level
Information Systems to Support
an Effective e-Business Environment
Peter Lobner
Vice President, Systems Integration Operation
Data Systems & Solutions, LLC
12100 Sunset Hills Road, Suite 310
Reston, VA 20190
www.ds-s.com
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Outline
 Top-Level Goals for an Integrated Strategic Information
System
 Basic Integrated System Solution
 Example of the Evolution of an Integrated Plant-Level
and Enterprise-Level Information System
 e-Business Overview
 Technologies and Web Architecture to Support e-Business
 Change Management
 Anticipated Benefits
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Top-level Goals for an Integrated
Strategic Information System
 Create a competitive advantage
 Manage business risk
 Promote a culture of accountability
 Support increasing shareholder value
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Create a Competitive Advantage
 Provide timely decision support information.
 Enable flexibility and quick reaction to business issues.
 Integrate external information with internal
information.
 Industry benchmarks vs. internal performance
 Market trends
 Internet opportunities
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Manage Business Risk
 Maintain management reporting integrity.
 Audit trail
 Consistency
 Rigor
 Ensure accuracy of decision-support information.
 Ensure timely information is available to those who
need it, when they need it.
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Promote a Culture of Accountability
 Performance metrics defined and linked, horizontally
and vertically
 Organizational and individual goals and objectives are traceable to
the flow-down of performance metrics into the lower-level
business units
 Clearly understood, actionable measures
 Transparency of information
 Culture change is needed.
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Support Increasing Shareholder Value
 Provide tools to analyze cost, productivity, and
profitability throughout the organization.
 Tools support implementation of metrics.
 Develop insights into opportunities for driving down
costs, increasing profitability, productivity.
 Optimize returns on investments through strategic
asset management.
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Basic Integrated System Solution
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Key Attributes of a Basic Integrated System
Solution
 Open architecture system
 Distributed processing
 Adequate connectivity between lower-level data sources
and higher-level data users
 High bandwidth network
 Powerful data mining and visualization application
 Physical or virtual data warehouse
 Applications integration
 Web-enabled to support internal and external users
 Scaleable, adaptable
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Basic Integrated System Architecture Can be
Represented as a Five-Layer Pyramid
 Pyramid construct is for discussion purposes only.
 “Conventional” architecture is hierarchical.
 Low-level data sources (sensors) at the bottom, Level 1
 Enterprise-level applications at the top (Level 5)
 Real-time monitoring and control systems and plant-level
applications are found in Levels 2 to 4
 External interfaces via Internet and value-added networks
 Internet technology is promoting a hybrid architecture.
 Web-enabled lower-level components and subsystems can
communicate directly to the top
 There is a growing capability to move data and exercise control
functions via the web
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Conventional Architecture for Plant and Enterprise Data Integration
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Hybrid Architecture for Plant and Enterprise Data Integration
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Key Challenges to Data Integration and
Transition to an e-Business Environment
 Defining and implementing a top-level performance
measurement framework
 Performance metrics (Internal performance standards, external benchmarks)
 Allocation of metrics through all levels of the enterprise
 Change management and lasting organizational / cultural change
 Integrating operational data and business information
systems:
 Integrating analytical and info management capabilities at Level 4 and 5
 Adding connectivity between Level 2 and 3 systems and higher-level systems
 Expanding the scope of monitoring at Levels 1 and 2 to meet operational and
enterprise information needs
 Defining and implementing an e-business strategy in the
rapidly evolving Internet business environment.
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Let’s Look First at the Phased Evolution of
Integrated Plant-Level and Enterprise-Level
Information Systems
--Example for Fossil (Steam) Power Generation
Utility Applications
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Evolution of an Integrated Solution Set for
Fossil (Steam) Power Generation Utility Application
 Start with unintegrated basic systems
 Then add a preliminary Local-Area Network (LAN)
 Then expand the scope of operational data integration,
including “thick-client” connectivity from the plant LAN
to the enterprise Wide-Area Network (WAN)
 Then add remote controls
 Then add operational optimization
 Then implement a web (Intranet) “thin-client” interface
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Fossil Power Generation Unintegrated Systems
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Fossil Power Generation Preliminary LAN
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Fossil Power Generation Operational Data Integration
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Fossil Power Generation Remote Controls
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Fossil Power Generation Operational Optimization
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Fossil Power Generation Web Interface Implementation
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Example of a DS&S Integrated Solution Set
for Fossil (Steam) Power Generation
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Synopsis: Integrating Plant-Level and
Enterprise-Level Information Systems
 The integrated system should enable the information flow
needed to analyze performance relative to the operational
and business metrics defined by the enterprise.
 The final “wiring diagram” is complex. However,
implementation of the integrated system can be done in
phases that each have clear, well-defined scope:
 Adjust scope of each phase to match goals and available budget
 Demonstrate near-term payback from each phase
 Build confidence among the user community and management
 The integrated system in the example goes as far as the
enterprise Intranet. Now let’s look at the links to the
external world of the Internet and e-business.
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e-Business Overview
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e-Business
 External and internal roles
 Business-to-business, business-to-customer, etc. (external)
 Business unit-to-business unit (internal)
 Broad scope
 An e-business environment provides a framework to drive down some
costs and speed some processes.
 More than e-Commerce: direct sales and on-line auctions
 Supply chain management:
Access a broader base of vendors & products
Improve production planning, reduce spare parts inventories
 Value-added information and application services for external users
 Improve business support to remote Corporate users
 Improve business collaboration among strategic partners
 Other value-added financial and business services
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e-Business (continued)
 Rapid growth in e-business volume
 Example for airline maintenance, repair, and overhaul (MRO)
business shows e-business growing from 3% of sales in 2000 to 35%
of sales in 2004 (see following chart).
 Electric power industry trade journals report proliferation of ebusiness and Internet use (see following examples).
 Rapid evolution of the Internet and e-business
marketplace
 Cutting edge of Internet technology is defining new e-business
opportunities that were not widely recognized even a few years ago.
 Use of Internet technology will be necessary to enable a
firm to stay competitive as its suppliers, customers, and
competitors increasingly adopt this technology.
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Estimated Growth and Distribution of Airline
Maintenance, Repair & Overhaul (MRO) Business
250
Total Sales in Billions of Dollars
200
6
77
150
e-Business transactions
Traditional transactions
100
142
182
50
0
1
2
Estimates for Years 2000 (Left) and 2004 (Right)
source: Goldman Sachs
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Recent Internet and e-Business Announcements
in the Electric Power Industry
 Feb. 25, 2000: Tampa Electric selects web-enabled
Energy Management System.
 With proper security clearance, the utility can access their EMS via
a standard Internet browser.
 March 20, 2000: Italian utility Enel and U.S. company
Internet Capital Group signed a joint-venture deal to
create an Internet “incubator” for business-to-business
(B2B) e-commerce.
 Launch new B2B initiatives that could involve Enel’s suppliers
(supply chain management)
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Recent Internet and e-Business Announcements
in the Electric Power Industry (continued)
 March 21, 2000: Atlanta-based joint-venture
IntercontinentalExchange launched to create Internetbased B2B marketplace to re-shape trading of energy
and other commodities.
 Initially petroleum and precious metal-based commodities
 Plan to develop additional markets for natural gas, electricity
 April 3, 2000: Utility.com (world’s first Internet utility
company) launches performance-based marketing
program with Be Free, Inc.
 Will offer utility products and services to residential and small
business customers at a discount from traditional energy and
telecommunications providers.
 Performance-based marketing charges only for delivered results.
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Technologies and
Web Architecture
to Support e-Business
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A Wide Range of Business Technologies are Needed
to Support e-Business (ref. Gartner, 2000)
 Conventional business technologies
 Business strategy
 Business process and requirements
 Project planning and management
 e-business technology
 e-business (e-commerce) strategy
 Computer and Internet technologies
 Network and technology architectures
 Application integration
 Web design and development, web marketing
 System security management
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Ranking of Technologies Associated With
e-Business
90%
80%
e-commerce
strategy
Network architecture
Web design & development
70%
Application integration
Scarcity
60%
50%
Business
strategy
40%
Project planning
& management
30%
Business process
& requirements
20%
Web marketing
Technology architecture
10%
System security management
0%
0%
10%
20%
30%
40%
50%
Criticaility
60%
70%
80%
90%
Source: Gartner, January 2000
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Attributes of a Web Architecture
to Support e-Commerce
 Links the enterprise with diverse external and internal
users, all of whom access the system using a browser.
 Role of external (Internet) web portal:
 Serve up enterprise data to external users, subject to security restrictions:
Static web pages, which may be periodically updated
Dynamic web pages, including data collection templates, user configurable
query capability, and application server
 Provide secure access for enterprise web-enabled applications:
Web-enabled remote monitoring & control systems
Web-distributed data bases
Remote employee access via Internet
 Provide the enterprise with Internet access to external resources:
Industry group web portals and other web sites
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Attributes of a Web Architecture
to Support e-Commerce (continued)
 Role of internal (Intranet) web portal:
 Supports enterprise thin-client user access to enterprise data and
applications.
 Functionally similar to the external web portal.
 Scope of data available to enterprise users is subject to internal
security restrictions.
 Firewalls and access routers segment the user
communities to simplify security implementation.
 Web-enabled applications drive functionality and content
to the internal and external portals:
 Web publishing applications populate static web pages.
 Web application servers support interactive applications that can
access a data warehouse or other on-line archives.
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Example Web Architecture to Support e-Commerce
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Change Management
Implementation of data integration
and e-business technologies
changes everything!
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Change Management is Needed to Coordinate
Life Cycle Processes for Transition to e-Business
 Change planning
 Strategic goals and objectives
 Performance measurement framework and quantifiable metrics
 Process for implementing cultural changes in the organization
 Solution design
 Implementation
 Transition management
 Periodic assessment
 Relative to the original strategic goals and objectives
 Relative to the rapidly changing external business environment
 Continual improvement
 Start again at the top of this list
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Anticipated Benefits from Data Integration and
Transition to an Internet / e-Business Environment
 Enable “faster, better, and cheaper” modes of operation
within the enterprise by driving some costs down and
speeding some processes:
 Provide timely delivery of the right information needed to support
operational and business decision-making
 Reduce operating and maintenance (O&M) costs through better asset
and supply chain management
 Increase operating staff productivity through automation
 Increase operating flexibility and revenue generation through
automation
 Increase the value derived from operational data
 Reduce the cost of creating useful information from raw data while
reducing the cost of distribution
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Anticipated Benefits from Data Integration and
Transition to an Internet / e-Business Environment
(continued)
 Enable “faster, better, and cheaper” ways of dealing
with external constituents:
 Customers
 Vendors, suppliers
 Brokers
 Strategic partners
 Regulatory agencies
 General public
 Improve enterprise bottom line financial performance.
 Increase shareholder value.
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Data Systems & Solutions, LLC
a joint venture between Rolls-Royce and SAIC
Please visit the DS&S web site at
www.ds-s.com
Contact Mr. Lobner at
peter.r.lobner@ds-s.com; phone: 703-375-2921
Thank you.
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