SAP® FOR UTILITIES

POWER GENERATION: INDUSTRY OVERVIEW

TIMES ARE CHANGING

The SAP® for Utilities set of solutions enables power generation utilities to manage assets, costs,
and capital expenditures for new or enhanced generation capacity, and comply with regulatory, safety,
and security requirements. The solutions can handle all enterprise asset management processes
from collaborative engineering to financial management and analytics.
 . . . AND SO MUST YOU

SAP® SOLUTIONS
MAKE CHANGE EASIER
You don’t run a generic business. So why use generic solutions?

SAP for Utilities is a set of state-of-the-art software solutions tailored to

the specific standards, processes, and challenges of the diverse utilities
industry, including power generation, transmission and distribution,
meter operation, and retail and services utilities. They are built to fit the
way you do business. And they comprise the industry’s leading and most
comprehensive set of solutions, helping utilities gain enterprise-wide
visibility for better decision making in critical business areas. SAP for
Utilities solutions can help your utility improve its operational efficiency,
mitigate risk, and increase profitability, while enabling innovative
business models and customer services.

Supported by the SAP NetWeaver™ platform, a powerful integration

and application platform, these solutions deliver rich functionality and
productivity-building tools throughout your organization. And they
help you adopt the best practices SAP has developed in over 30 years of
working with major utilities and industry leaders from around the world.

You can minimize risk and increase the reliability of your solution
because SAP for Utilities provides the content, tools, and methodologies
you need to implement, operate, and monitor your enterprise solution.
And because they offer easy integration and virtually unlimited
scalability, SAP for Utilities solutions are an investment you can’t
outgrow – no matter how times are changing.
WHEN OPPORTUNIT Y KNOCKS
“All tasks [strategic
enterprise management,
activity-based costing,
and balanced scorecard]
are linked in real time.
Synchronous information
has upgraded our
employees’ operational
capability. And the
system ensures business
transparency throughout
the entire asset value
chain.”
Woo Bang Lee, Chief Management
Head of the Enterprise ERP Office,
Korea Hydro & Nuclear Power
Company
BUILT FOR YOUR INDUSTRY
SCALED TO YOUR BUSINESS
DESIGNED FOR YOUR FUTURE
SAP Is Ready When You Are
These are times of significant challenge
for power generation companies. The
pressures to effectively manage your
growing portfolios of fleets and assets
are immense. The demand to find new
ways to reduce costs – while managing
asset reliability, regulations, and the
emergence of renewable energy
supplies – is nonstop.
Yet, the reliability and capacity of
your power plants must be maintained,
regardless of the capital costs and
investments required. As energy mar-
kets undergo the complex transition
from incumbent to competitive, you
must adapt with them. Heightened
public scrutiny, strict schedule compli-
ance, outage periods, environmental
controls, increased emphasis on data
and access security, and good corporate
governance – all of these factors result
in regulations that must be managed
along with your competitive
requirements.
These challenges have to be met.
The future is at stake. But are you
ready for it?
You are, if you have the support of SAP,
the world’s leading provider of business
software, and the SAP for Utilities
set of solutions. These solutions deliver
the functionality, integration, and
flexibility you need to overcome the
challenges of today’s and tomorrow’s
power generation markets.
Built from decades of experience with
the best-run utilities companies in
the world, SAP for Utilities solutions
support critical processes and leading
industry practices that run your com-
pany. Integrated plant-management
support gives you visibility into your
complete asset life cycle from design
to decommissioning – managing your
asset reliability, costs, and regulatory
compliance.
Only SAP for Utilities offers a complete
set of integrated solutions for your
power plant – solutions that fully
support the best and next practices
required by leading entities like the
Institute of Nuclear Power Operations
(INPO) and North American Electric
Reliability Council (NERC). And
only SAP offers the SAP NetWeaver
platform – the integration and appli-
cation platform supporting these
solutions and allowing for integration
of processes and information among
disparate business and technical
applications.
To help your company get ready for
tomorrow, SAP is ready today. That is
why more than 950 utilities worldwide
trust SAP with their future. As the
market leader, with an R & D invest-
ment that tops US$1.3 billion and
supports continuous innovation,
SAP is ready when you are.
 . . . YOU HAVE TO BE READY

SAP® solutions for power generation utilities enable the key processes that are critical
to running power plants and facilities – including enterprise asset management –
with support that’s centered on reliability, reduced costs, and regulatory compliance.
GETTING READY MEANS

GET READY FOR INTEGRATED

PLANT MANAGEMENT PROCESSES
The SAP for Utilities solutions support the key processes that are critical to running plants’ life cycles by integrating plant
power plants and facilities, including end-to-end support for your asset manage- maintenance, work clearance and per-
ment practices. Your maintenance processes need to be centered on reliability, costs, mitting processes, as well as project and
and regulations. The SAP for Utilities solutions give you added value by providing document management, with financial
an integrated flow of information from procurement, spare parts management, information. They provide generation
and subcontracting; project and document management; plant maintenance and companies with improved operational
workforce management; environment, health, and safety procedures; financials; visibility to support equipment moni-
analytics; and investment planning processes – giving you true, integrated resource toring along the entire asset life cycle
planning and risk evaluation capabilities. of a plant and manage shutdown,
turnaround, and outage periods most
efficiently. You can better manage
the risks of unplanned downtimes
and increase the efficiency and safety
levels of maintenance planning and
execution.

Maintenance Cost Budgeting

For power generation companies,
maintenance expenditures typically
account for a significant amount of
operating costs. Because critical infor-
mation, such as actual maintenance
costs, planned maintenance costs, and
maintenance-related budget data, are
often insufficiently integrated, genera-
tion companies can face considerable
Plant Maintenance and Safety
difficulty developing accurate mainte-
Regardless of the financial resources
nance budgets. The SAP for Utilities
available for operating and maintaining
solutions allow generation companies
technical installations, power genera-
to define a maintenance budget and
tion companies must be able to guaran-
run maintenance analytics on existing
tee schedule compliance with opti-
asset life-cycle management data.
mized outage timelines to meet their
Standard budgets can be generated
customers’ energy demands, while at
automatically based on the desired
the same time adhering to a slate of
budget strategy, reducing budget
stringent safety regulations. The SAP
preparation time.
for Utilities solutions are helping gener-
ation companies take a more strategic
approach to managing their power
 . . . GETTING INTEGRATED
Mobile Asset Management
Power generation companies are seek-
ing ways to eliminate the inefficiencies
of paper-based systems and extend the
ability of service technicians to connect
easily from repair sites to asset informa-
tion. The SAP for Utilities solutions
allow field employees to access, enter,
and share role-based information from
any location using any mobile device to
perform short- and long-cycle work for
repairing, inspecting, and overhauling
equipment.
Emissions Management
The emissions management capability
lets you leverage the functionality of
the SAP for Utilities solutions for the
cost-efficient monitoring and control-
ling of emissions output, tracking
compliance, and generating reports.
As a result, they lead to improved plant
operations and reduced plant costs;
they allow for better-informed risk-
management decisions, including
decisions for new generation facilities
and future costs of emissions rights;
and they manage compliance to regula-
tions, such as the Clean Air Act and
the Kyoto protocols.
Unified Plant and Business
Information
Competitive energy markets create
the need for greater velocity in business
decision making, while managers
from all levels need fast, up-to-date,
accurate, and complete information
from technical and business domains.
The SAP for Utilities solutions enable
the integration and unification of plant
and business information into a single
view. Information about asset-related
processes and documents, financials
and controlling, and production-
relevant data, such as load capability
and reserve capacity, production costs,
and market prices, is readily available.
Relevant systems and key performance
indicators can be accessed from a single
user interface.
GETTING INTEGRATED MEANS

SAP for Utilities solutions deliver added value by providing an integrated flow
of information across your entire value chain – information you need for integrated
resource planning and risk evaluation.
 . . . GETTING SAP FOR UTILITIES

Procurement Corporate Governance and Human Capital Management

The SAP for Utilities solutions help
power generation companies to stream-
line procurement and revision process-
es, leading to reduced material inven-
tory and more efficient information
exchange with contractors and suppli-
ers. They enable supplier qualification
and candidate selection, bidding and
contract management, and collabora-
tive engineering and project manage-
ment. To gain visibility along the entire
value chain, procurement is tightly in-
tegrated with maintenance operations
and project management, as well as
financials. SAP for Utilities solutions
support not only traditional processes,
such as requisitioning, purchase-order
management, and invoice verification,
but also catalog-based self-service
requisitioning for material and services.
Regulatory Compliance and Workforce Deployment
Utilities around the world face close The SAP for Utilities solutions support
scrutiny of financial records, environ- employee life-cycle management to
mental processes, safety precautions, help power generation companies iden-
labor-law compliance, performance tify and retain top performers, leverage
ratings, and supply security. Manage- their talents, align employee goals with
ment must be able to demonstrate organizational goals, and maximize the
compliance and good faith through impact of training. And to help compa-
accurate and detailed records. The
SAP for Utilities solutions improve cor-
porate governance and help manage
compliance by providing functions that
centralize the documentation of inter-
nal controls. These include online con-
trols for internal and external auditors
and the ability to export data to audit-
ing software, enabling detailed insight
into various audit functions and
providing faster, more accurate report-
ing. Support for whistle blowers helps
organizations cost-effectively address
the legal requirements of the Sarbanes-
Oxley Act and reduce the risk of
noncompliance.

Integrated Financial nies lower costs, employee transaction-

Information
Without insight into financial and
business performance, companies are
unable to make informed strategic deci-
sions. The SAP for Utilities solutions
integrate all financial and business per-
formance information with manage-
ment processes for effective, strategic
decision making. This improves
investor communication, streamlines
the financial supply chain, enables col-
laboration with customers and vendors
on payment and settlement activities,
and reduces transaction costs.
management features streamline
and integrate essential human capital
management processes, including
administration, payroll, time manage-
ment, and legal reporting. The SAP for
Utilities solutions support workforce
deployment by allowing companies to
create project teams based on skills and
availability, monitor project progress,
track time, and analyze results.
AND GETTING SAP FOR UTILITIES MEANS
“The project helps reduce
the existing range of
software considerably –
and the heterogeneous
data-processing land-
scape. The implementa-
tion of SAP for Utilities
plant maintenance
software enables all the
technical and commercial
areas involved at the
various manufacturing
sites to handle the entire
integrated process of
maintenance processing
using SAP applications.”
Norbert Stoll, Project Manager,
E.ON Kraftwerke GmbH
GET READY FOR BUSINESS BENEFITS
The SAP for Utilities solutions enable power companies to manage asset reliability
and costs, increase safety and security, and handle compliance for environmental
standards and corporate governance. They provide a business solution for faster
decision making and more efficient collaboration within the company and with
suppliers, contractors, authorities, energy wholesalers, and other market partici-
pants. Key attendant business benefits of implementing these solutions include:
• Improved management of asset • Optimized procurement processes
reliability and costs by providing a and material inventory by enabling
consistent view on asset life-cycle collaboration and contracting of
information – from design to operational management services
decommissioning with suppliers, contractors, and
• Increased plant and work safety partners, as well as streamlining
through visibility and validation of corporate-wide buying processes
all critical work sequences and • Real-time information through inte-
responsibilities gration of technical and commercial
• Better management of environmen- processes and systems
tal compliance through monitoring • Better management of investment
and reporting of critical processes opportunities and risks supporting
and assets acquisition and retirement strategies
• Expanded security through monitor- through provision of key perfor-
ing of project resources, processes, mance indicators and the integration
facility access, and business data of strategic enterprise management
protection techniques
• Integrated financial information us-
ing standardized processes providing
visibility on capital, operational, and
third-party expenditures; monitoring
project costs and regulatory risks;
and integrating business perfor-
mance information with manage-
ment processes
• Streamlined and simplified work-
force-related processes through
integrated employee transaction
management, deployment of the
workforce based on skills and
availability, and innovative employee
life-cycle management that aligns
employee talents with corporate
goals

SAP for Utilities Supports Business Processes
Investment Planning,
Asset Specification, and Design
• Investment management
• Collaborative engineering and project
management
Procurement and Asset Construction,
Installation, and Implementation
• Supplier qualification and candidate
selection
• Bidding and contract management
• Collaborative engineering and project
management
• Project and investment controlling
Maintenance and Operations
Management
• Technical assets management,
including document and equipment
data management
• Maintenance planning and execution
• Preventive and predictive maintenance
• Reliability-centered maintenance
. . . G E T T I N G R E S U LT S
SAP for Utilities solutions enable
power generation companies to benefit
• Environment, health, and safety from cost management and asset
optimization strategies needed to
management, including work clearance
address high capital costs and
management investments for plant reliability and
• Mobile asset management capacity upgrades.
• Material parts and services procurement
• Employee and contractor management
• Integrated asset accounting and mainte-
nance budgeting
• Asset performance analysis
Decommissioning and Disposal
• Asset transfer and disposal
• Collaborative engineering and project
management
• Waste management
• Regulatory compliance management
• Asset remarketing
Enterprise Management
• Financial supply chain management
• Human capital management
WITH SAP SOLUTIONS, YOU’RE READY
GET READY FOR LOWER TCO
AND FASTER ROI –
POWERED BY SAP NetWeaver
With the SAP NetWeaver platform pow-
ering SAP for Utilities solutions, operat-
ing costs decline, while IT investments
go further than ever. As the technical
foundation for SAP service-based,
enterprise-scale business solutions,
the SAP NetWeaver platform enables
Enterprise Services Architecture,
which provides a blueprint for service-
oriented business solutions.
The SAP NetWeaver platform combines
SAP’s experience in integrated enter-
prise applications with the flexibility of
Web services and open standards. It is
the power of SAP NetWeaver that
enables SAP solutions to support the
complex processes inherent to the
utilities industry.
Using this power, you can flexibly and
quickly plan, design, implement, and
execute new processes and business
strategies, speeding up your ROI.
Because you can create new solutions
on top of existing applications, the
value and life expectancy of your
current systems are increased. You
can adapt rapidly to new or modified
business processes, do business more
effectively with external business
partners, and replace your old and
outdated business practices with best
practices. These capabilities set your
utility company on a firm foundation
for flexible growth and give you the
high levels of adaptability and open-
ness required to reduce total cost of
ownership.

ARE YOU READY TO MEET THE FUTURE?
SAP Is
And with the SAP for Utilities solutions
for power generation companies, you
can be too. You can master business
processes up and down your asset value
chain. You can adapt to changing
markets, accurately monitor your
environmental performance, and meet
the challenges of increasingly competi-
tive energy markets head-on. You can
be ready for whatever tomorrow brings.
. . . FOR T ODAY AND T OMORROW
SAP Is Ready – Are You?
For more detailed information about
the SAP for Utilities solutions for power
generation companies and how they
can help your business always be ready,
visit the SAP Web site today at
www.sap.com/utilities.
AS TIMES CHANGE, EVERYONE NEEDS

Today, in 70 countries around the globe, more than 950 leading electricity,
gas, water, and municipality utilities in regulated, transitioning, and
deregulated markets rely on SAP for Utilities.
 . . . SOMEONE THEY CAN COUNT ON

A PARTNER WHO IS ALWAYS READY

SAP is the world’s leading provider of business software solutions. Today, more “Thanks to SAP Enter-
than 24,450 customers in over 120 countries run more than 84,000 installations of prise Portal, our
SAP software – from distinct solutions addressing the needs of small and midsize employees no longer
businesses to enterprise-scale suite solutions for global organizations. have to come to grips
with a new system
By choosing SAP, your utilities business • SAP Service and Asset Management every time new func-
is assured of the following: solution tionality is introduced.
And SAP NetWeaver is
• Solutions designed for your industry: • SAP Mobile Asset Management an ideal platform for
SAP offers a full range of software application
optimizing and develop-
that supports the most important
business processes and best practices • SAP xApp™ Emissions Management ing our IT environment.”
packaged composite application
in more than 25 industries, including Lars Holten, CIO, Statkraft
yours. And SAP’s global organization • mySAP™ Supplier Relationship
includes hundreds of professionals Management solution
who work exclusively with your
industry. • mySAP ERP solution
Each solution is backed by the global
• Solutions scaled to your business: expertise of SAP services, offering the
Although SAP is known for serving
widest range of services and support
the world’s largest corporations –
that organizations require, from
including 80 of the FORTUNE 100 –
nearly two-thirds of SAP customers
have annual revenues of US$500 mil-
lion or less. SAP solutions fit your
size and budget today – while offer-
ing unlimited scalability for
tomorrow.

• Solutions made for your success:

Because SAP solutions are built on
the SAP NetWeaver platform, the
open integration and application
technology platform from SAP, they
integrate with virtually all SAP and
non-SAP applications, leveraging
your investments – past, present,
and future.
consulting, education, and support
SAP offers best-in-class solutions and
to custom development and hosting.
applications for virtually every aspect
The best-run companies are ready
of your power generation business,
for anything. Read on for more details
including the following:
about how the SAP for Utilities set
of solutions can help you join the
best-run utilities that run SAP:
www.sap.com/industries/utilities.
 www.sap.com /contactsap

50 073 530 (05/03)

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