The IBM Solution Architecture For Energy And Utilities .

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IBM Solution Architecture for Energy and Utilities FrameworkAccelerating Solutions for Smarter UtilitiesThe IBM Solution Architecture for Energy and Utilities FrameworkProviding a foundation for solutions across the energy and utility value chain

Market forces are impacting the landscape of utilities around the world, requiring the transformation of businessmodels. Climate change and the environment have become enduring public policy priorities. Growth in renewablegeneration and distributed resources are enabling utility companies to manage more green energy and a morebidirectional, less predictable network. And at the same time, consumers are demanding a new and direct role inpersonal energy management and conservation. Internally, there is increased pressure to keep rates low but increaseoperational efficiency and workforce productivity to deliver higher quality, more reliable utilities (electricity, gas,or water). While the pressure on rates is a constant, the new business models driven from these market forces area high priority in the utility industry today.

“The SAFE frameworkallowed CenterPoint toestablish new capabilitieswhile integrating andmaintaining the existingfunctionality of its currentIT investments.”Dr. Steven PrattChief TechnologistCenterPoint EnergyIndustry Frameworks—an IBM approach to industry challengesWhether they manage power, gas, water or all three, utilityIBM’s Industry Frameworks combine the power of award winningcompanies around the globe are approaching these marketIBM software with industry-specific assets and best practicesforces with three imperatives. They are transforming their utilityconfigured to meet an industry’s unique challenges and needs.networks from rigid, analog systems to dynamic and auto-IBM Industry Frameworks help clients deploy business solutionsmated energy delivery systems by driving operational excel-faster while lowering project cost and risk. IBM leads the industry inlence. To address consumer demands, some utility companieshelping clients implement business solutions that deliver quantifiableare improving customer satisfaction with near real-time,business results and support their strategic roadmap to achievedetailed information about their energy usage. And, to meet orincreased innovation, agility and competitive advantage—oneexceed environmental regulatory requirements while maintain-business project at a time.ing a sufficient, cost-effective energy supply, companies areinvesting in greener energy sources as well as a more efficientinfrastructure.The Solution Architecture for Energy and Utilities FrameworkHow does IBM help with these challenges? Through hardware,The Solution Architecture for Energy and Utilities Frameworksoftware and service offerings, IBM provides a rich portfolio(SAFE) is an innovative, powerful software platform, uniquelyof solutions to help utility companies adapt business pro-designed to provide network visibility and control, processcesses for power generation optimization, transmission andautomation and business collaboration for solutions acrossdistribution operations, customer operation transformationthe energy and utility value chain.and corporate support services. Many of these offerings areconnected through a software platform, called the IBMThe framework brings the capabilities of IBM software toSolution Architecture for Energy and Utilties Framework.power smarter utility solutions across all areas of a utility,Software helps utility companies drive network transformationincluding plant operations, mobile workforce management,with standards and flexibility and turn data into actionableasset lifecycle management, smart metering, grid operationsinformation throughout the company.and customer care. By integrating and optimizing assets,devices, networks, servers, applications and data across theenterprise, utility companies can drive business agility andmore ‘intelligent’ networks.3

Each utility company can leverage the technology compo-Asset, Device and Service Monitoringnents of the Solution Architecture for Energy and UtilitiesTo improve outage management and speed time to resolution,Framework to build unique roadmaps for transformation.utility companies need real-time control and analysis tools thatThe framework approach will help increase the reuse of assetscan help visualize network, device and infrastructure availabil-for each successive project, improving ROI and speedity and performance.of implementation.Asset, Device and Service Monitoring provides tools toThe Solution Architecture for Energy and Utilities Frameworkmonitor and manage events from all elements of the networkstrengthens line-of-business and IT collaboration by support-infrastructure including power devices, communications/dataing seven software capabilities critical to smarter energy andnetwork, systems and infrastructure. Real time measurementutility solutions:and analysis of utility network data provides operational dashboards for utility LOB applications. Powerful workflow auto- Asset, Device and Service Monitoringmates business processes on an agile technology platform Asset Lifecycle Managementenforcing best practices and knowledge capture from a skilled Informed Decision Makingworkforce. Better, more real-time decisions result in a Improve Customer Experiencehealthier, integrated and responsive infrastructure. Business Process Automation Regulatory, Risk and Compliance Management Security SolutionsSolution Architecture for Energy and Utilities FrameworkThird-party Access DomainUtility Business DomainRegulatory, risk and compliance managementPower GenerationPlant OperationsFleet ManagementSupply ExpansionTransmission and DistributionMobile Workforce ManagementAsset Lifecycle ManagementSupply Chain ManagementCustomer OperationsCustomer ManagementCustomer CareCustomer SystemCorporate Support ServicesHuman ResourcesAccountingPayrollIntelligent Utility Network (IUN)Smart Meter and Beyond, Grid OperationsSecurity, Communications NetworkPlug-In vehicle/Distributed Energy ResourcesInformed Decision MakingBusiness and infrastructure integration layer (Services Oriented Architecture)Asset, Device andService MonitoringBusiness Process AutomationCommunications network domainDevice domainThe IBM Solution Architecture for Energy and Utilities Framework integrates information and processes across a utility company.4Security solutionsImproved Customer ExperienceAsset Lifecycle Management

Climate change and environmentalissues have become enduringpublic policy prioritiesAsset Lifecycle ManagementProjects within this area of the Solutions Architecture forAsset management is often a manual process full of costEnergy and Utilities Framework help you turn real time dataand complexity. Consider Asset Lifecycle Managementinto actionable information. With strong analytics and effectivetools to help track, document and make decisions about thebusiness dashboards, you can assess carbon reduction pro-procurement, deployment, operation, maintenance, andgrams to see if they are effective, optimize energy line loaddisposal of field assets.profiles or analyze workforce metrics to help create strategicplans. You can also drive new interactions with customers asThis capability of the framework can help manage everyyou enable them to monitor personal utility consumption, costsaspect of the life cycle of an asset or meter (includingand power sources. You can target new time-of-use energyacquisition, compatible unit estimating, work management,packages to encourage users to save electricity duringinventory control, location, configuration, preventive mainte-peak periods.nance, safety and disposal) reducing the cost and complexityassociated with redundant asset management infrastructureImproved Customer Experienceand manual processes. It helps improve the availability andEnvironmental and economic issues are leading many con-longevity of strategic assets by managing the contentsumers today to look for ways to be actively engaged in theneeded to operate and maintain them.understanding and management of their personal utility use.Utility companies can now deliver a convenient, personalizedInformed Decision Makingcustomer experience by combining self-service capabilitiesAs the rate and pace of change to utility systems andwith interactive communications, enabling consumers to havetechnology increases, companies that can analyze events,more control of their utility management and helping Customerdevelop insights and correlate reactions to change in a timelyService Representatives to better serve customers.fashion will benefit from improved business flexibility andperformance.Solutions built around this framework capability can improveoutage management and supply/demand through two-waycommunication with customers. Utility companies can delivernew tools that provide consumers with more information about,and control of, their sources and uses of utilities.5

Regulatory, Risk and Compliance ManagementEvery utility must address changing regulatory requirements,IBM Business Partner ecosystem enriches the frameworkmanaging large quantities of utility documents and processesIBM Business Partners augment the Solution Architecture for Energyto comply with government-mandated regulations. Utilitiesand Utilities Framework when they enable their solutions on one of themust also manage regulatory interactions, including rateseven framework software capabilities. Through a unique and compre-case management and federal audits.hensive validation process, IBM works with business partners toensure their solutions are enabled on IBM software and industryTo meet increased regulatory oversight, new regulations andstandards (like the IEC Common Information Model) to facilitateenforcement initiatives, the Solution Architecture for Energy andsimple integration and deployment of partner solutions.Utilities Framework enables a flexible approach that helps youmake smart, cost-effective decisions. While each mandate hasIBM Business Partner applications enhance the framework andits own specific requirements, all have a common denominator:provide several key advantages. They can reduce the need for internalthe need for greater visibility and control of content and pro-integration testing by providing pre-certified compatibility betweencesses to lower risk. This capability helps you effectively man-solutions. Utility companies are better able to accommodate newage regulatory interaction including rate case management andrequirements and components, further streamlining operations. Thesefederal audits, while providing security-rich content, data prove-validated solutions drive innovation by deploying new applicationsnance and change control for regulatory compliance.faster and integrating them more easily.Security SolutionsAs security standards for the Smart Grid are refined, the grid’sBusiness Process Automationcontrol networks will take advantage of technology alreadyUtility transformation calls for companies to create newused in IT networks from other dynamic industries. One of theapproaches, integrate existing applications and optimizebiggest advantages of this transformation is the ability to usebusiness processes to drive pro-active network management,TCP/IP technologies for remote monitoring of energy devices,increased customer satisfaction, and improved businessas well as managing grid assets and operations. But thisproductivity.could also increase the opportunity for some to exploit themore open protocols of the Smart Grid for cyber-attacks.Today, process logic and user interfaces are often tightlyAnd the stakes are enormous.bound together within business applications and changes tosystems are difficult and costly. The Solution Architecture forThe good news is that hardened TCP/IP security technologiesEnergy and Utilities Framework provides tools and best prac-and software architectural frameworks have evolved to thetices to help create or redesign, model, simulate, implementpoint where they can be used to help keep the utility networkand support new core business processes as well as extendsecure. The key is implementing an end-to-end securitythe investment in legacy CIS applications. By leveraging anarchitecture within the utility network. Security solutions canSOA-based infrastructure that is open, scalable, flexible andencompass everything from grid and distribution manage-based on E&U industry standards, you can better identify andment, to finance and administration, customer management,reduce bottlenecks in your business workflow and improveHR and procurement.the distribution and sharing of data in real time.6

“It turns out that the real key isn’tthe fact that we’ve got visibilityinto the grid, though that was ourinitial goal. It’s that we now haveinformation available on gridperformance that we didn’t havebefore. We can do a lot with thatinformation.”Peter VinterPower grid specialistDONG EnergySecurity solutions within the framework can help to detectFor example, you might launch a project to improve yourpatterns of traffic and actions that are suspicious, goingnetwork visibility and control in order to identify outages andbeyond a ‘perimeter defense’ style of security. Software canrestore service faster, improving customer satisfaction. Aalso help manage access to business systems and informa-project such as this can help highlight the practical benefitstion to ensure integrity and compliance as well as assessof a framework approach to your users by reducing complex-the overall security and compliance status of the businessity and delivering return on investment quickly and can beinfrastructure to defend against potential security threatsleveraged by successive smart metering deployments and/orand business riskscustomer energy management tools.Getting startedContact your IBM Representative today to discuss a BusinessThe Solution Architecture for Energy and Utilities FrameworkValue Assessment. Before you begin implementation, ahelps you deploy solutions that can be built upon andBusiness Value Assessment can help identify the value pointsextended for years to come and, as a result, extend theamong framework projects that deliver quick ROI or time-to-business value of your systems.value for your company.As you begin your implementation, you’ll need to refineFor more informationyour key business needs, along with dependencies orTo learn more about the IBM Solution Architecture for Energysequencing imperatives. Consider beginning your frame-and Utilities Framework, contact your local IBM representativework adoption with starter projects. These might be small inor ibm.com/software/industry/energy utilities/scope, but deliver immediate business value and helpestablish buy-in from the rest of the company.7

Copyright IBM Corporation 2009IBM CorporationSoftware GroupRoute 100Somers NY, 10589U.S.A.Produced in the United States of America09-09All Rights ReservedIBM, the IBM logo and ibm.com, are trademarks or registered trademarks of InternationalBusiness Machines Corporation in the UnitedStates, other countries, or both. If these andother IBM trademarked terms are marked ontheir first occurrence in this information with atrademark symbol ( or TM), these symbolsindicate U.S. registered or common law trademarks owned by IBM at the time this informationwas published. Such trademarks may also beregistered or common law trademarks in othercountries. A current list of IBM trademarks isavailable on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtmlOther product, company or service namesmay be trademarks or service marks of others.EUB03006-USEN-00

The Solution Architecture for Energy and Utilities Framework The Solution Architecture for Energy and Utilities Framework (SAFE) is an innovative, powerful software platform, uniquely designed to provide network visibility and control, process automation and business collaboration for solutions across the energy and utility value chain.

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