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Resources Norge: Skagerak Energi

Read how Accenture contributed to Nota being a specialist service supplier, and an actor that offers the benefits of economies of scale to owners and customers.

Overview

The Norwegian power industry is experiencing increasing complexity and pressure on costs. To an increasing extent, the network business (power transport) must focus on cost-efficient core activities. This creates a market for specialized service suppliers.

Automatic meter reading (AMR) and advanced metering infrastructure (AMI) enable effective solutions for meter value management, and for additional services / services that increase value for network companies, and energy economization. AMR/AMI enables direct communication between meters and network companies. The power customer does not have to read meters, and will receive a bill based on actual consumption – not consumption estimated between two point meters.

Skagerak Energi works in a goal-oriented manner to exploit new technology. The group sees AMR/AMI as an important strategic driver, and as a driver for growth and improving cost-efficiency.

Strategic Drivers

  • Quality and reliability

  • Customer satisfaction

  • Facility utilization

  • Operational improvements

  • New services for the end-customer

  • Consumption control and forecasts

  • Deregulation and increasing competition

Drivers for growth and increased efficiency

  • Expertise

  • Collaboration and alliances

  • Market opportunities:

    • Alarm and notification services

    • Power and load management

    • Metering of other power carriers

  • Process improvements

  • System structure

  • Cost structure

Skagerak Energi has established a company called Nota to achieve growth and improve cost-efficiency in every part of the value chain, from collection, marketplace and end-customer settlement, to billing and bill collection.

Opportunity

For many years, Skagerak Energi has been a leading actor in the field of machine-to-machine (M2M)) in Norway, and has established a subsidiary, Nota, for focused commercial ventures related to service deliverables in the fields of metering, settlement and billing (MSB). Nota and Skagerak Energi have a vision of the future that includes both making MSB processes more efficient and the option of developing new business activities through the use of new technology. Skagerak Energi has worked for years to find solutions for power suppliers' meter reading problems. Norwegian authorities have thus far chosen not to demand the use of automatic meter reading, which Swedish authorities now have decided to. Despite this, Skagerak Energi wanted to investigate the market opportunities for automatic meter reading. A major challenge associated with the different automatic meter readings has been instability and unreliable communication. A thorough business case shows that it would be commercially sensible, despite the lack of legislation to necessitate solutions. The positive effects of this venture also include better customer service and new services enabled through M2M.

Solution

Through collaboration in a number of key projects, Accenture has contributed to Nota being a specialist service supplier, and an actor that also offers the benefits of economies of scale to owners and customers.

  • Nota and Accenture's joint projects and activities include:

  • AMR Business case: Accenture was key in drawing up a business case for the AMR venture for Skagerak Energi. This includes preconditions regarding the effectivization of internal processes and the assessment of opportunities for growth.

  • Review of the architecture: As part of the solution verification, Accenture has conducted a technical review of the architecture.

  • AMR pilot and testing in the shape of help to plan and execute a "1000 test" before final rollout of the solution in Skagerak Energi's network area.

  • SLA – drawing up service agreements: Accenture has helped with the specific writing of agreements with the necessary mechanisms for the best possible collaboration between customer and supplier.

  • Nota business case: As part of the work with a market strategy and plan, the project drew up a business case for Nota, taking consideration of segmentation, sales growth goals and the mix of services.

  • Nota market strategy: Nota and Accenture have performed thorough analysis and planning work, providing a basis for Nota's path to the service market. This work included market, competitor, and segment analyses, sales processes with gap analyses of resources and competency, business cases and a roadmap for marketing and sales. The work was key to the commercialization of Nota as a service company.

  • Nota sales process: During the marketing strategy and planning phase, a detailed sales process was drawn up in collaboration with Accenture and Nota's management. The process lists the different parts and roles required for strategic deal shaping.

  • Nota marketing and sales roadmap: The work with a marketing strategy and plan is summarized in a roadmap which illustrates every activity necessary to achieve the goals in the business case and other projects.

Results

In collaboration with Accenture, Skagerak Energi has secured its position as a forward-looking innovative power company. Skagerak Energi and its subsidiary Nota has conducted a transformation from an internal to an external focus, and laid the groundwork for growth and permanent comparative advantages. An offensive business case has been drawn up, and activities have been scheduled for the future, in order for Nota to realize plans and expectations.