Utility uses SAP® Asset And Work Management to drive costs from gas distribution network

NORTHERN GAS NETWORKS UTILITY USES SAP® ASSET AND WORK MANAGEMENT TO DRIVE COSTS FROM GAS DISTRIBUTION NETWORK QUICK FACTS “SAP Asset and Work Management has Company Implementation Highlights • Name: Northern Gas Networks Ltd. • Received top executive sponsorship enabled us to effect major changes in • Location: Leeds, England • Driven by business needs, not IT our business processes. We now have • Industry: Utilities • Removed business owners from • Products and services: Gas distribution operational responsibilities during rollout end-to-end functionality that will • Revenue: About US$620 million • Adopted a phased approach for rollout • Employees: 73 • Enjoyed strong cooperation from system get the right person to the right job • Web site: integrators over the shortest possible traveling www.northerngasnetworks.co.uk • Implementation partners: Wipro Technolo- Why SAP distance.” gies (Bangalore, India); SAP® Consulting • Best-in-class asset and work management software Tom Bell, Project Implementation Manager, Challenges and Opportunities • Fully integrated field and office functions Northern Gas Networks Ltd. • Rapidly deploy new information system • Scalable functionality after acquisition • Ability to connect with satellite systems • Integrate work management, scheduling, and dispatching Benefits • Reduce costs to meet regulatory • Ability to quickly dispatch workers to job demands and profitability targets sites • Establish template for accelerating • Visibility into gas network, workforce, and further rollouts incidents • Easy, almost instant access to ad hoc Objective reporting Install business software system within • Ability to easily integrate acquisitions 18 months and replace aging systems to avoid additional costs Existing Environment 39 legacy IT systems SAP Solutions and Services • SAP Business Suite applications, Third-Party Integration including the SAP Asset and Work • Database: Oracle Management application • Hardware: Sun • SAP NetWeaver® technology platform, • Operating system: Sun Solaris including the SAP NetWeaver Business Intelligence component SAP Customer Success Story Utilities When Northern Gas Networks Ltd. bought part of the United King- dom’s gas distribution network from National Grid plc, it was given just 18 months to completely exit National Grid’s 39 legacy IT systems or face significant costs. The new company did it with time to spare, implementing SAP® Business Suite applications across 15 locations – ahead of schedule and within budget. The rollout was centered on the SAP “The management information coming “We have achieved substantial overall Asset and Work Management applica- out of the SAP software is very effec- efficiency savings,” Bell says. “SAP tion. The SAP software generates tive. We get almost instant access to Asset and Work Management has work orders for maintenance, repair, ad hoc reporting through the SAP enabled us to effect major changes in replacement, and emergency response. NetWeaver® Business Intelligence com- our business processes. We now have It issues a 13-week rolling forecast of ponent. Management can see how end-to-end functionality that will get the planned assignments to a mobile work- much pipe was laid in a day, how many right person to the right job over the force, based on team availability and gas escapes there have been, where shortest possible travelling distance. the skills needed for each job. Workers the escapes are located, and so on. We can see the location of each of our receive daily orders for planned or We can track asset histories in detail; 600 vehicles and 1,200 outsourced unplanned jobs wirelessly on rugged there’s a trail from front to end. We can contractors.” laptop PCs – GoBooks from General now manage assets and asset replace- Dynamics Itronix Corp. – where they ment in a more proactive manner for Northern Gas Networks isn’t stopping also record details about tasks per- better capital utilization and return on there. The implementation went so formed and asset conditions. The orders investment.” That’s the kind of thing the smoothly that it immediately launched are despatched courtesy of the inte- Office of Gas and Electricity Markets an optimization program to realize even gration between SAP Asset and Work (OFGEM) appreciates. OFGEM is the more gains. Management, Ventyx, and a geographic regulator for Britain’s gas and electricity information system from ESRI. industries. It sets the budget that com- SAP software will also aid growth. panies like Northern Gas Networks “We are part of a larger consortium,” “All scheduled and unplanned plant work to and emphasizes the need for Bell says. “Our CEO, Basil Scarsella, maintenance is absolutely controlled,” ongoing cost efficiencies across the felt that the best strategy from the out- says Tom Bell, project implementation utility business. The Leeds, England– set was to make this platform scalable. manager at Northern Gas Networks. based Northern Gas Networks is real- izing just that. “We can now manage assets and asset replacement in a more proactive manner for better capital utilization and return on investment.” Tom Bell Project Implementation Manager Northern Gas Networks Ltd. This will give us the potential to roll out That’s a good thing, because Northern a template that enables the same level Gas Networks has a big responsibility of service provision, should the company – it serves 2.5 million users in the north grow by acquisition.” of England and maintains 37,000 kilo- meters of gas pipes, long enough to That’s the payoff from a business-led stretch from Leeds to Sydney, Australia, implementation – it serves the business. and back again. The SAP software “This wasn’t IT just picking up leading- gives the company the confidence it edge technology,” Bell says. “Fifty needs to set outsize goals. “This wasn’t IT just picking up leading-edge technology. Fifty people from the operating business – some of them very senior people who knew the individual elements of the business – were the driving force behind the rollout.” Tom Bell, Project Implementation Manager, Northern Gas Networks Ltd. people from the operating business – “Our corporate vision, which will be some of them very senior people who measured by financial and safety knew the individual elements of the regulators, is to be one of the top two business – were the driving force behind performing gas distribution companies the rollout.