Duke Energy EIM (IMA) Overview
Charlie Ward
Chief Architect - Smart Energy Systems
Summary – Why EIM?
PRODUCTS & SERVICES
OPERATIONS
WORKFORCE
ASSETS
& FINANCIALS
CUSTOMERS
ONE COMPANY: Single version of the truth,
shared management of information assets
YESTERDAY
• Inefficient access to company-wide information
• Multiple companies and multiple functional
information silos
• Various definitions and rules for information
• Limited oversight of information quality and usage
• Uncontrolled data proliferation through
“spreadmarts”
TODAY AND INTO THE FUTURE
• Information strategies & stewardship implemented
• “One company” approach; functional silos broken
for a process view
• Highly leverage analytics for Business decisions
• Acquisitions expedited
• Cost and efficiency gains through improved
information access and quality
2
BACKGROUND
 In 2005 Duke Energy adopted a strategy of growth through acquisition
 Target was 4X current size over 7 years = 14 states, 12 - 14M customers, 70,000
employees
 IT was commissioned to build a “scalable platform” to support future M&A
 Standardized core systems
 Managed business data and information
 1 system / 1 process
 “Plug & Play” for future acquisition
 2005 – 2006 acquired/merged with Cinergy = 5 states, 4.5M customers,
~19000 employees
 Designed and delivered the Information Management Architecture (IMA) for
the scalable platform
 Future M&A transactions would be executed as acquisitions – target
company’s data converted and Duke Energy systems and processes
adopted
EIM/IMA Benefits
 Reduces Application Dependency
 When applications reference each other directly, changing one means all who
reference must change also. Hubs eliminate direct reference and an application
may change without impacting others. Lower cost of application life cycles.
 Provides Single Version of the Truth
 When applications maintain their own version of enterprise data, inevitably, that
data over time will differ from the other versions found in other applications.
Greater confidence in the data.
 Provides Integrated Reporting/Analytics
 Reports can be constructed from the “single version of the truth” directly rather
than replicating data from various sources into numerous report-specific copies.
Fewer data and reporting errors.
 Multiple systems performing the same function—whether region-specific
customer information, or systems of newly acquired companies—contribute to
singular, consolidated reporting. Lower cost to prepare consolidated reports.
Total cost is lowered while information becomes more reliable
IMA 2006
Security
Financial
Financial
Financial
Systems
Systems
Systems
Enterprise
Application
Integration
Data Hubs
M&A
Processes
Materials
Work Mgmt
Systems
Products &
Services
Messaging
Customer
System
Smart
Grid
other
other
other
Systems
Systems
Systems
Catalog Layer
Extract,
Transform &
Load
Reporting
Standard
Reports
Finances
Supply Chain
Systems
EAM
Analytics
Ad Hoc
Reports
Managed
Reports
Customer
Dashboard
Web
Services
etc.
Infrastructure
Business
Processes
Req to Pay,
Order to cash,
etc.
Transactional Systems
Integration
Data Hubs
Meta Data
Analytics
Reporting
Applications and
source data,
Application
Integration,
Data models independent
of transactional systems,
What’s
available,
Collection of
Cubes &
Marts ,
Standard
Reports,
Transaction
processing,
Data Move &
Transform
Operational reporting
Data Quality
What’s
certified,
Data Move
& Transform
Analytic
Capabilities
Ad hoc
capabilities,
Dashboards
What is a Data Hub?
 A Data Hub is a collection of data for a specific business subject
area and is the authoritative source of data for application
integration, and the authoritative source of data for reporting and
analytics.
 Each data hub is comprised of an operational data store (ODS) for
system integration, and a data warehouse (DW) for
reporting/business intelligence/analytics
The collection of subject area data warehouses in the IMA
comprise Duke Energy’s enterprise data warehoues
Based on this concept we manage information independent of
the applications supporting business processes.
Duke Energy Enterprise Data Model
T&D
Facilities
Customer
Facilities
Products &
Services
transport
products to
Customers
are sold to
Duke Energy
Facilities
Materials
Workforce
maintained at
Finances
Equipment
Nuclear
Facilities
F/H
Facilities
X
Y
means X “is a type of” Y. Sub-types
inherit relationships of the parent.
Business Strategy Changes
 Late 2007 - Duke Energy scales back M&A plans to focus on
streamlining operations to strengthen the balance sheet
 Late 2008 - Strategy changes to emphasize revenue growth via
smart grid, investment shifts to:





Green generation technologies – wind, solar, clean coal, CO2 scrubbers, etc..
Distribution grid modernization
AMI meter and system deployment/upgrade
New customer products and services
Energy management and conservation
New Business Strategy Drives Change
 Evolving integration requirements





Future merger and acquisition (M&A) activities
More external service providers and partners
Data integration with exponentially larger volumes of data
Cross functional data analytics
Customer facing services
 Reduce solution development, enhancement, and maintenance costs
 Faster time to market for new or enhanced solutions
 Decrease development time via standard, reusable *services
 Shorten solution test cycles, particularly regression testing
 Better visibility into system operational and performance metrics to preclude failure
and speed problem troubleshooting and resolution
 Business process and supporting system flexibility
Capabilities
Business Drivers
1
 The smart energy
leadership team defined
a set of business
expectations IT needed
to address to support
program initiatives.
2
3
4
 The Core Issues are the
obstacles that need to
be overcome.
5
6
 The Architecture
Capabilities are required
specifically to:



Meet the Smart Energy
and Smart Grid business
needs
Overcome the Core
Issues
Deliver and support the
Business Drivers
7
8
9
Application
Integration
A
B
Data Integration
Time to Market
Cheaper Builds
Lower O&M
SG Analytics
Biz Agility
Biz Process
Flexibility
Reliable HA
Architecture
Capabilities
Core Issues
C
D
E
Unproven scalability
and reliability
Long project
timelines
Difficult to
coordinate projects
Inconsistent or
inaccurate data
1
2
9
3
4
8
1
3
A
Data services
G
Application and A
G
integration services H
Integrated
test methodologies
7
2
6
7
Ability to integrate
capabilities and
requirements
B
7
Scope and budget 8
force “get by” design
Standards based
architectures
A
B
I
C
D
E
I
C
D
B G
F
Poor visibility into
technologies & use
2
6
4
G
Complexity of
5
point-to-point designs
H
I
J
Building “one offs”,
poor reuse
1
Testing takes
too long
3
No SG Business
Context
3
7
8
8
4
9
B
E
Services
governance
H
D
Master data
governance
F
H
D
Consistent and
measurable
data quality
H
I
SLA definition and
fulfillment
Business
Architecture
A
E
F
B
E
C
H
G
J
The Enhanced IMA
End to End Testing Tools
Data Hubs
SOA
Financial
Financial
Financial
Systems
Systems
Systems
• Information Integrity Services
• ETL Services
• EII Services
Finances
Master Data Management
Lifecycle Management
Hierarchy & Relationship Mgt
Data Quality Management
Authoring
Base Services
MMD Interface Services
Materials
Equipment.
•
•
•
•
Enterprise Service Bus
Queue
Registry & Repository
Quality of Service
Customers
Catalog Layer
•
•
•
•
•
•
Integration Middleware
other
other
Other
Systems
Systems
Systems
Standard
Reports
Facilities
Managed Master Data Registry
Business Processes
Customer
System
Reporting
Information Integration Services
Supply
Chain
Systems
Work
Mgmt
Systems
Analytics
Ad Hoc
Reports
Managed
Reports
Dashboard
Products &
Services
GIS
Enterprise Application Integration
HRMS
ETL
Messaging
Web
Services
Workforce
Management and Monitoring (initially Registry & Repository, later BAM)
Security
Infrastructure
11
Business Strategy Changes Again
 2011 – Duke Energy merges with Progress Energy to create the
largest IOU in US. Announces it will probably execute another
acquisition once Progress deal closes.
Agility and Flexibility are keys to success. EIM should be able to
support any business strategy with little to no change.
Duke Energy’s IMA currently supports 3 major strategic initiatives…
12
(EIM) IMA supports integration of smart grid systems
Enhanced IMA supports a digital customer interaction strategy
Enhanced IMA supports M&A system integration
EIM Governance
 IT Governance Committee commissioned a working team to :





Evolve a definition of data stewardship
Perform the role on an on-going basis
Define a structure for Duke Energy data
Make policy recommendations
Data Stewardship will evolve over time
 A cross functional technical governance team was formed to
ensure the proper technologies are deployed, maintained, and
managed
 An Integration Center of Excellence was created to develop and
provide expertise on the technologies and processes of EIM
Successes To-Date
 PeopleSoft Financials 8.9 avoided interface costs
 EAM able to design its interfaces to Finances and Customers data hubs rather than
being dependent on projects in those areas.
 Customers data hub allows a single interface in spite of their being four customer
information systems. OLS (~$200K /yr avoidance) , eBill, IVR (~$750K/yr avoidance)
all benefit through interface consolidation
 Enterprise Customer System architecture - ~$3M/2009 – 10 avoidance
 Customer data hub allows consolidated customer business intelligence (retail
marketing, call center agent operations).
 Financial analysts spend less time on data verification and more time on data
analysis due to improved data quality
 Financial report run times greatly reduced. Some taking hours before now run in
minutes.
 Supply chain and work management report designers need not understand complex
Maximo (eMax) data structures, only the hub structures which are designed
specifically for business intelligence and analytics
Challenges Remain
Category
Challenge
Response
Call to Action
Change
Management
Pushback from projects:
“it costs more”
Building hubs is a lower cost
approach, although projects
that build them are often not
the beneficiary. Optimizing costs
in total across the Company and
over time sometimes means
incurring higher costs in certain
areas.
Promote the use of data hubs for data sharing:
– Find out what major projects in respective
areas are and are not using hubs
– Demonstrate your support for utilization given
the benefits
– Ensure projects include resource scope for
data hubs
Managing data
independent of
applications
The tendency is to think in
terms of applications. But
application are narrow in scope
whereas hubs are intended to
meet broad requirements
across the Company.
Build out and populate the hubs:
– Sponsor projects to identify enterprise
requirements (external to “owning” area)
– Sponsor and sequence projects to close gaps
left by application projects
Prioritization and
funding when
dependency is on
others to provision
information
Data hub owners serve the
needs of Duke Energy, but those
needing the data usually don’t
control the resources that can
populate hubs.
Ensure areas supporting a data hub budget for
continued build out:
– Review with each hub owner their plans and
budgets
– Anticipate additional data needs
Ramifications
of an
“enterprise
data platform”
Data Hub Maturity
Customer Facilities
T&D
Facilities
Gas Distribution
Pipelines
Electric
Transmission Lines
transport
products to
Gas Gate
Stations
Jurisdiction
Products &
Services
Premise
Delinquencies
Electric
Substations
Service Point
Gas Transmission
Pipelines
Sales
Orders
Forecasts
Duke Energy
Facilities
Materials*
MSDS
Sites
Facilities
stored at
Procurement
Engineering
Benefits
Services
Credit
Customer
Accounts
Prod & Serv
Agreements
Customer Bills
Employees
Organizational Structure
Staffing
Invoices
Marketing
Programs
Customers
Workforce
Inventory
Compensation
Leases
are sold to Payments
Products
Electric Distribution
Circuits
Attachments
Projects
Customers
Contractors
Vendors
Location
Land
Development
Commitment
Space Structures
Other Persons
Time & Attendance
Payroll
Employee Relations
Investor Mgmt
Nuclear
Facilities
Operating
Requirements
Systems
F/H
Facilities
Operating
Requirements
Generation
Units
Statistics & Information
Compliance
Programs
Work
Management
Accounts Recievable
Asset Accounting
Project
Tax Accounting
Equipment
Measures
Assets
Treasury Mgmt
Accounts Payable
Financial Reporting
Misc Billing
Equipment*
Intra-Site
Structures
Consolidations
General Ledger
Expense Administration
Financial Planning
Finances
Opportunity Built thru 2010
Plant Systems
* Materials and Equipment includes Nuclear
QUESTIONS?