Protection from Change in Australian Energy MarketsDocument Type: White paper Version: 1.0 Date of Issue: November 24, 2017 Author: Andrew Bannon
- Deliver industry change projects faster and using less resource
- Remove the need and expense for localised core enterprise systems
- Protect your CRM and billing systems from industry change
- Provide an end to end view across Smart and Traditional Metered processes
- Minimise the impact of system upgrades
- Free up time to focus on optimal customer processes rather than industry compliance
SummaryThe Australian energy market is undergoing a significant amount of industry led business and technical change. Many of these changes are significant and have had a huge impact on business processes and the systems that underpin them. In this paper, we explore the idea of protecting players in the market such as energy retailers, metering services providers and network providers from these costly and frequent industry changes. At K2Fly, we know there is a better way to cope with industry change that involves protecting your core enterprise systems such as billing, CRM and asset management. We know the energy industry and we understand the difficulties faced by participants in the Australian energy market when it comes to managing industry change. K2Fly can protect participants from these changes whether its market competition, new industry roles and processes, large scale smart metering rollouts, Power of Choice, de-regulated markets, expansion into new States, Territories and commodities, or readiness for future change to come.
The BackgroundWith the current industry challenges and high levels of change in the energy retail market such as the Power of Choice (PoC), de-regulation, changes effecting core back office systems, non-unified management of multiple head end systems, State differences in rules and regulations, smart metering rollouts, 5-minute data intervals and retailer switching, the business processes at the heart of the Australian energy industry are undergoing significant transformation. In some cases, the extent of these changes will mean that additional supporting systems will be required to not only hold the new data that is available, but also to manage the end to end processes (e.g. remotely updating meters). Depending on the design undertaken by market participants, many of these changes will impact not only the core business systems such as CRM and billing but also the day-to-day operations of the business and all the supporting systems. For example, most energy retailers in Australia today use ‘utility specific’ billing systems, and as such these systems hold and maintain a great deal of the data used to manage the processes that are subject to change by these industry initiatives. With increased competition in the Australian market driven by de-regulated markets and no sign of a decrease in the level of industry change, many energy organisations have significant costs and challenges spread across the IT landscape in keeping these systems in line with the latest requirements. Given Australia’s multiple States and Territories their regulatory nuances, pace of change and market differences, the history of the Australian energy sector has engineered sophisticated complexities into the participants operating processes which may span multiple States and commodities. While maintaining compliance with the latest regulations they also need to develop and implement their own internal business strategy. With all of this in mind, how can organisations minimise the impact of ongoing change as the industry evolves?
Simplify the ProblemLooking ahead we can see that political, environmental, regulatory and competitive forces will continue to drive a high rate of change. K2Fly has first-hand experience of how industry changes can impact the front, back and middle office. We can see that in many cases customer service advisors are limited by their ability to analyse a customer issue due to the complexity of industry processes, and the domain knowledge required to resolve what would be in many other geographies and industries, a straight forward issue.
Encapsulate the Industry LayerAt K2Fly we believe in making industry processes work more efficiently and have used our own experience and our AMT-Sybex partner’s experience to create a process and data management framework that offers support for the industry requirements, out of the box, yet still provides the flexibility required to readily accommodate ongoing change. Our Marketflow® solution works independently of other core systems and allows organisations to focus on delivering the best service for customers. The solution introduces a dedicated Industry Process Management layer (IPM) into the application environment. This IPM layer is responsible for managing the complexities of the market processes and any variations in process from State to State and commodity to commodity. This approach provides a level of protection to core business operations and IT systems from the many mandated changes that are required in the Australian energy sector. This solution processes industry data, along with both file and service based data exchanges between all industry participants, and provides support for the industry mandated processes that overarch these exchanges. Our solution is provided as a product based solution which ensures that it evolves in line with the future industry changes. As well as the Marketflow product, K2Fly can also provide additional business and IT services that wrap around the industry layer to ensure you meet your commercial and regulatory requirements.
Delivering Real Business ValueUsing IPM delivers benefits to our customers including;
- Simplified Integration
- Improve industry process tracking
- to ensure that the processes are implemented and executed as efficiently as possible
- to help manage industry agents against commercial SLAs
- for external regulatory reporting against industry wide performance KPIs.
- Less customisation and protection from future change