Utility Consulting - Client case

Summary
A large Netherlands-based utility improved cost-to-serve and time-to-market through a unique UCPartners approach that combines enterprise architecture with financial and performance targets.

Challenge
A large Dutch utility was struggling with an inflexible IT environment that was highly integrated over its various businesses, covering the entire energy value chain in three countries. As a result, cost-to-serve and time-to-market targets could not be met. UCPartners was engaged by the clients CIO Office to support realisation of the business strategy.

Approach
UCPartners carried out an analysis of the client’s strategies across its businesses and delivered a common requirements vision that served as a guideline for all IT change. A financial framework was provided by including a detailed analysis of IT cost and cost-to-serve numbers, along with a peer-group benchmark. UCPartners' deliverables were directly incorporated into the client’s governance structure, such as the Program Management Office control process and the annual IT budget cycle.

UCPartners designed a target architecture for the client, focusing on a two-year horizon compatible with the relevant business and regulatory time-span at that time. Several design principles were adhered to, such as smart re-use of existing IT and decoupling of IT domains according to the energy value chain. Within each domain further decoupling points were identified to make IT more flexible and responsive. A number of IT change projects were started to migrate to the desired target architecture. To ensure achievement of the business targets, UCPartners took up steering group and quality assurance roles in a large number of IT change projects.

Client benefits
By using UCPartners’ knowledge and approach, the client:

  • Can now launch new products independent of its IT release schedule
  • Knows for sure that IT changes are ‘no regret’ investments
  • Has lowered its cost-to-serve
  • Has improved its IT cost/Productivity ratio
  • Has professionalised its governance and business control structure

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