Utility companies choose SAP for integrated CRM and utilities solution


WALLDORF, Germany, Aug. 8, 2002 — SAP AG recently announced that a growing number of utility companies are benefiting from implementing the industry-specific customer relationship management (CRM) capabilities of mySAPâ„- Customer Relationship Management (mySAP CRM) for the utilities industry.

The seamlessly integrated solution of mySAP CRM and mySAPâ„- Utilities, introduced by SAP last year, addresses utility companies’ heightened focus on customer retention in light of the deregulated European energy markets.

Following deregulation, utility companies have found they must offer more customer-oriented services to deepen customer relationships and minimize customers’ readiness to switch to a competitor. The integration of mySAP Utilities and mySAP CRM gives energy providers greater transparency and efficiency in their product offering, service, and sales processes and the ability to improve customer service and customer loyalty.


To date, thirteen utility companies around the globe have implemented the end-to-end solution and are currently serving approximately four million customers.

These companies include German GASAG in Berlin, GEW RheinEnergie AG in Cologne, EnBW of Baden-Wurttemberg, entega in Darmstadt, Energie AG in Austria, the Swiss Romande Energie AG, the Danish NESA, Metrogas in Chile, Electrone in Italy, and Bristol Water in Great Britain. An additional 21 utility companies are currently implementing CRM projects, aimed at serving another 11.2 million customers.

Software solutions for power companies must be able to support two process chains: the purchasing and provision of power and customer relationship management-from the first contact and contracting to the delivery of agreed services, final billing, and customer support.

The seamless integration of the front-end system of mySAP CRM with the back-end system mySAP Utilities gives utility companies a complete solution to manage business processes related to the procurement, provision, and billing of energy services as well as the roll out of customer programs and service centers. Both SAP® solutions share a common database, so comprehensive customer information from the billing system of mySAP Utilities forms the basis for detailed CRM analytics and efficient customer support.

This allows, for example, companies to tailor proposals for commercial customers, plan special campaigns, or target group-specific promotions more efficiently. In addition, the seamless integration of mySAP CRM for the utilities industry reduces total cost of ownership (TCO) and expedites return on investment (ROI).

“The end-to-end integration between mySAP Utilities and mySAP CRM ensures that valuable customer data from the industry solution is directly available for customer relationship management,” said Peter Zencke, board member of SAP AG. “With this foundation, utility companies are able to carry out detailed customer and demand analyses that are the basis for efficient and successful customer relationship management.”

The following examples give proof of customers that have already implemented the integrated solution, reporting on increased customer loyalty and higher efficiency in the companies’ business processes.

Energie AG

Energie AG, an energy and infrastructure company in Upper Austria, supplies electricity to 410,000 customers throughout the country. The energy company, based in Linz, Austria, was looking for a solution to optimize business processes in order to meet the requirements of the deregulated market.

Its priorities were customer service, new billing procedures in line with unbundling guidelines, and energy quantity balancing with the required exchange of data. Energie AG was the first company worldwide to implement the energy data management capability from SAP, and they were also the pioneer for the new integrated solution.

Leo Windtner, CEO of Energie AG, said, “The complexity of transactions has clearly increased with the deregulation of the electricity market. SAP’s software solution helps us to take care of our customers in a more comprehensive yet efficient way. We have achieved higher customer satisfaction and more efficient operating procedures.”

GASAG

Berliner Gaswerke AG, or GASAG, provides natural gas to more than 600,000 homes in the German capital of Berlin and has a market share of approximately 40 percent of Berlin’s market for residential and commercial heating. The company’s ultimate goal is the expansion of its own market share as well as the optimization of its organizational structure to consistently offer attractive services at competitive prices.

As part of a large initiative that also includes a comprehensive training project for the employees, GASAG plans to roll out the complete functionality of mySAP CRM and the integration with mySAP Utilities.

mySAP CRM already supports the company’s call center, which went live in May, and GASAG is also using the campaign management and analytical functions of mySAP CRM. “Integration is our highest priority,” explains Michael Adamczyk, CRM project head at GASAG. “We had already implemented mySAP Utilities and SAP® Business Information Warehouse and, with the support of our IT subsidiary BerlinDat, we were able to establish end-to-end business processes in a short amount of time. Thanks to the comprehensive analytical functions of mySAP CRM, we are able to plan our campaigns more effectively and economically, and we are able to approach our customers in a more targeted fashion. A comprehensive internal information program has ensured that our employees fully support this solution.”

Romande Energie AG

The Swiss Electric Company Romande Energie, provider of alternative energy, was looking for new ways to service its 180,000 direct and approximately 60,000 indirect customers. Its main goal was to maintain and increase its market share through a high level of customer satisfaction.

The company also sought to improve the structuring of marketing activities to allow for more effective planning and implementation. Increased employee satisfaction was another issue. To meet these objectives, Romande Energie implemented an efficient call center back in 1998, which recently operates on the basis of integrated functionality from mySAP CRM.

Jean-Pierre Mitard, director of sales and marketing at Romande Energie AG, said, “For us, it is especially important to combine all contact channels to the customer, which mySAP CRM allows us to do. The tight integration with mySAP Utilities ensures end-to-end business processes. We are now able to efficiently face all of the challenges of the market: We have improved our customer support, customer satisfaction has increased and, thanks to increased transparency in processes and data structures, our employees are able to work with less stress.” It took Romande Energie only thirteen months to implement the complete mySAP CRM and mySAP Utilities solution for 200 users.

Currently, more than 1,700 customers around the globe have purchased mySAP CRM to drive a customer-centric business model. Its seamless integration with mySAP Utilities represents only one example of SAP’s deep understanding of integrated business processes at the industry-specific level. The confluence of mySAP CRM with mySAP Utilities delivers true business process integration that focuses on driving customer value and customer loyalty on behalf of utilities providers.

About SAP

SAP is a provider of e-business software solutions. Through the mySAP.com® e-business platform, people in businesses around the globe can improve relationships with customers and partners, streamline operations, and achieve significant efficiencies throughout their supply chains.

Recently, more than 18,000 companies in over 120 countries run more than 50,000 installations of SAP® software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at http://www.sap.com )

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