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Executive Summary:
Electric Utility Billing and
Customer Information Systems
Billing and CIS Software and Services for Regulated and
Deregulated Utilities: Global Market Analysis and Forecasts
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Published 3Q 2012
Section 1
EXECUTIVE SUMMARY
1.1
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1.2
1.3
1.4
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CIS providers, such as Convergys, also have utility industry offerings, which leverage their
experience of handling complex billing and customer service requirements.
Vendors are faced with providing complex solutions in a complex landscape with significant
diversity in their utility customers IT maturity and skills. One size does not fit all, and the
diversity of utility types, goals, and the characteristics of their end customer types requires
customized approaches utilizing standard components.
In many instances, vendors should expect to lead their customers to the right path including
long-term strategy planning, multi-year technology implementation roadmaps, as well as
recommending the utility adopt business practices that align with best-in-class software
products to enable effective billing and CIS execution.
This may take the form of standard application software from SAP and Oracle, as well as
serious attention to service-oriented architecture (SOA) principles and methods when
interfacing with other smart grid technologies. It may also take the form of point billing and CIS
solutions that can deliver significant value, such as bolt-ons to current legacy systems.
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
1.5
Chart 1.1
Billing and CIS Software and Services Revenue by Region, World Markets:
2011-2017
$4,500
$4,000
($ Millions)
$3,500
$3,000
North America
Western Europe
Eastern Europe
Asia Pacific excluding China
China
Latin America
Middle East/Africa
$2,500
$2,000
$1,500
$1,000
$500
$2011
2012
2013
2014
2015
2016
2017
North America is the leading region in terms of smart meter and AMI technology maturity, which
generally correlates with billing and CIS modernization. However, the range of billing and CIS
modernization in North America is significant with areas like Texas and some Canadian
provinces focusing on their retail-related challenges, while regulated vertical utilities like those
in California, are implementing CRM to promote demand-side measures to increase energy
conservation. Western Europe is the other leading region with significant diversity in practice
from the advanced retail focus of the United Kingdom to the more modest efforts of some of the
large state monopolies and oligopolies on the continent. Asia Pacific, Eastern Europe, and
Latin America each have their own opportunities, challenges, and success profiles. In general,
Pike Research expects deregulated utilities to the lead the way with more advanced billing and
CIS systems during the decade.
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
Section 8
TABLE OF CONTENTS
Section 1 ........................................................................................................................................................... 1
Executive Summary .......................................................................................................................................... 1
1.1
1.2
1.3
1.4
1.5
Utility Billing and CIS Software and Services Market Forecast .............................................................. 4
Section 2 ........................................................................................................................................................... 5
Market Issues .................................................................................................................................................... 5
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.4
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.6
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2.7
2.7.1
2.8.1
2.8.2
2.8.3
2.9
2.9.1
2.10
2.10.1
2.10.2
2.10.2.1
2.10.2.2
Nordics .............................................................................................................................. 23
2.10.2.3
Germany ............................................................................................................................ 24
2.10.3
2.10.4
2.10.5
Section 3 .......................................................................................................................................................... 26
Technology Issues ........................................................................................................................................... 26
3.1
3.1.1
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3.1.2
3.1.3
3.1.4
Prepaid ....................................................................................................................................... 28
3.2
3.3
3.3.1
Portals ........................................................................................................................................ 29
3.3.2
Mobility ....................................................................................................................................... 29
3.3.3
Multi-channel ............................................................................................................................... 29
3.3.4
3.4
3.5
3.5.1
3.5.2
Overview ........................................................................................................................................... 34
4.2
Accenture .......................................................................................................................................... 34
4.3
4.4
Convergys IM .................................................................................................................................... 35
4.5
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4.6
4.7
IBM ................................................................................................................................................... 38
4.8
Infosys .............................................................................................................................................. 39
4.9
Itron .................................................................................................................................................. 42
4.10
Oracle ............................................................................................................................................... 44
4.11
PricewaterhouseCoopers ................................................................................................................... 45
4.12
4.13
SAP .................................................................................................................................................. 46
4.14
SAS .................................................................................................................................................. 47
Section 5 .......................................................................................................................................................... 49
Market Forecasts.............................................................................................................................................. 49
5.1
5.2
5.2.1
Software ..................................................................................................................................... 49
5.2.2
5.2.3
5.2.4
Billing and CIS Software and Services Spending for Regulated and Deregulated Electric Utilities .... 54
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Section 9 .......................................................................................................................................................... 65
Table of Charts and Figures ............................................................................................................................. 65
Section 10 ........................................................................................................................................................ 67
Scope of Study ................................................................................................................................................. 67
Sources and Methodology ............................................................................................................................... 68
Notes ................................................................................................................................................................ 68
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
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Section 9
TABLE OF CHARTS AND FIGURES
Chart 1.1
Billing and CIS Software and Services Revenue by Region, World Markets: 2011-2017 .................. 4
Chart 5.1
Billing and CIS Software Revenue by Region, World Markets: 2011-2017 ....................................... 50
Chart 5.2
Billing and CIS Services Revenue by Region, World Markets: 2011-2017 ....................................... 51
Chart 5.3
Billing and CIS Software and Services Revenue by Region, World Markets: 2011-2017 .................. 52
Chart 5.4
Billing and CIS Software and Services Revenue by Regulated and Deregulated, World Markets:
2011-2017 ................................................................................................................................... 54
Figure 2.1
Figure 2.2
Figure 2.3
Customer Relationship Management and Customer Sales and Service Cycle .................................. 12
Figure 2.4
Customer Profiles and Energy Product and Service Offering Adoption Factors ................................ 20
Figure 3.1
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
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Table 3.1
Table 5.1
Billing and CIS Software Revenue by Region, World Markets: 2011-2017 ....................................... 50
Table 5.2
Billing and CIS Services Revenue by Region, World Markets: 2011-2017 ....................................... 51
Table 5.3
Billing and CIS Software and Services Revenue by Region, World Markets: 2011-2017 .................. 53
Table 5.4
Billing and CIS Software and Services Revenue by Regulated and Deregulated, World Markets:
2011-2017 ................................................................................................................................... 54
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
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Section 10
SCOPE OF STUDY
This report examines billing and CIS and related electric utility software applications and services that are
essential to electric utility customer relationships and process success overall. Such systems include:
The report covers the current state and readiness and forecasts for the adoption of billing and CIS that can
accommodate and exploit smart grid technologies for the years 2011 through 2017 in the regions of North
America, Western Europe, Eastern Europe, Asia Pacific (excluding China), China, Latin America, and the
Middle East/Africa. It segments the greater billing and CIS market into spending in regulated versus
deregulated markets. These forecasts complement those in other Pike Research reports on specific
applications, such as the smart grid IT, MDM, smart grid data analytics, and other market segments. Leading
vendors are highlighted, as well as the impact of smart grid regulatory, analytics, portal, social media, and
other IT technologies on the use of billing and CIS by electric utilities.
This report does not address the technical details of the applications and the enabling technologies discussed
above. Rather, it addresses the status of billing and CIS in use today and the roadmaps and paths that are
available to bring these systems into alignment with smart grid capabilities and trends.
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
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NOTES
CAGR refers to compound average annual growth rate, using the formula:
CAGR = (End Year Value Start Year Value) (1/steps) 1.
CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given,
the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well.
Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and
sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2012
U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
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Published 3Q 2012
This publication is provided by Pike Research, a part of the Navigant Consulting, Inc. Energy Practice
(Navigant). This publication may be used only as expressly permitted by license from Navigant and may not
otherwise be reproduced, recorded, photocopied, distributed, displayed, modified, extracted, accessed, or used
without the express written permission of Navigant. Notwithstanding the foregoing, Navigant makes no claim to
any government data and other data obtained from public sources found in this publication (whether or not the
owners of such data are noted in this publication). Navigant does not assume, and hereby disclaims, any
liability for any loss or damage caused by errors or omissions in this publication. This publication is intended
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license to this publication.
2012 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
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