BEYOND COMMODITY:

UTILIZING HYBRIS TO EXTEND

CUSTOMER RELATIONSHIPS
Terry Coots & Muneesh Narakula
TXU Energy
 AGENDA
• About TXU Energy
• Project Background
• Business Drivers and Goals
• Evaluation: Our Choice for Hybris
• Driving Business Benefit
• Configuration and Integration
• Application Architecture
• Challenges
• Our Keys to Success
• Q&A
• Appendix
ABOUT TXU ENERGY

• Leading Retail Electric Provider in Texas with more than 1.7 million residential
and business customers.

• Redefining how consumers buy and use electricity and related services.

• Trustworthy. Innovative. Customer centric. Dependable.

PROJECT BACKGROUND
• TXU is expanding by exploring and delivering adjacent products and services

• We are searching to extend relationships within our core business and through
our vendor networks

• Launched a series of TXU Energy Solutions (“Non-Commodity”) products

– iThermostat (web-controlled thermostat)
– TXU MyHome Protect (home warranty)
– TXU ACProtect (HVAC system service warranty)

• Technology foundation (“pilot”)

– Great to start as a small scale pilot
– Initially used SAP CRM billing
– Limited capabilities
– Hard to synchronize with ECC billing processes
 BUSINESS DRIVERS AND GOALS
“Enable a flexible operating system foundation to implement our broad, multi-
product customer relationship business model.”

• Enhance customer experience • Improve cash flow

– Visibility into coverage/billing – Billing in advance
periods – Proration

• Improve speed to market • Improve operational

– Fast, flexible product launches efficiencies
– Configure vs. code – Dependable exception
management
• Enable a solid operating foundation
 EVALUATION: OUR CHOICE FOR HYBRIS
Why Hybris Billing?

1. Protect our Core system and leverage our SAP

platform

2. Buy vs. Build – Native integration with ECC 6.0

3. Flexible, easy to configure charge-plan structures

4. Many out of the box capabilities we desired

Evaluated Options:
• Enhance ECC 6.0
5. Demonstrated high-volume billing capabilities • Customize SAP CRM billing (more)
• Hybris Billing
6. Allows for future growth in complexity of products

7. SAP partnership and enablement workshops

 DRIVING BUSINESS BENEFITS
Customer Experience Cash Flow
• Improved clarity of charges • Faster creation of customer bills
• Smooth migration to new platform • Increased cash flow and speed of payments

Speed to Market Operational Efficiencies

• Reduced product launch time • Exceptional exception management
• Delivered solution in 6 months resulting in quick • Implemented solution with less than 0.5% defect
payback on investment rate

Before
Monthly Billing
Billing in Arrears
Missing First / Last Charge
No Dates on Charges
Complex Billing / Data
Limited Product Capabilities
After
Daily Billing
Billing in Advance
Proration and Always Bill
Clear Dates & Term Length
Simplified Structure
Flexible Products
 SAP HYBRIS BILLING
Convergent Convergent Usage Convergent Financial
Convergent charging Convergent Invoicing
Mediation Analytics Management

Offer Pricing
Marketing Design Design

Sales & Sales and Financial

customer order Customer
service Management Care
Run
Collection
s
Finance Manage Book
Prepaid Credit Receivables Revenues Analytics
Refill Scoring and and costs
Payables

Manage Price and Manage Invoicing and

Measure
subscription Rate Billing Payment
Billing Usage
Account Events Accounts Statements

Deliver
Operations Service
APPLICATION ARCHITECTURE
CRM 5.0
R
F
C

Hybris Billing ISU

Subscriber Business Meter
account Partner Readings

External Contract
account account

Convergent Rating/Charging
JCO ISU Billing

Webservices Billing
Billing Documents
Documents
BIT’s

Convergent Invoicing ISU Invoicing

Target Print
Invoicing Document
Convergent Charging 4.0 (SP08) ‘ISU’
ECC6.0(SP08)
HYBRIS BILLING- DEPLOYMENT

Desktop Tool Update Master

Updater Slave
Core DB

Guider Master

Guider Slave

Dispatcher Master Rater Master

Dispatcher Slave Rater Slave

Rated Event
Files
Bulkloader Master

Bulkloader Slave
 MIGRATION STRATEGY AND REPLICATION

• Only migrated active non-commodity Business

Partner and Contract Accounts

• Replicate Business Partner and CA to Core Tool

at the time of creation of provider contract

• Replication must occur to ECC before CC

• Tools are provided out-of-the-box by SAP for

replication monitoring
PROJECT CHALLENGES
Technology Challenges Business Challenges

• Required ECC upgrade to Service • Process change concerns

Pack 08
– Product Rollovers
– Multiyear product pricing in advance
• SQL Server vs Oracle

• Requirement decisions
• Data anomalies
– Billing in Advance
– Proration
– Alignment to the Utility cycle
 OUR KEYS TO SUCCESS

• Prototyping and sharing understanding with stakeholders

• Focusing on minimum viable product (MVP) with a vision to foundational

implementation

• Minimizing work in progress, focusing on getting work done

• Prioritizing use of “out of the box” functionality

• Choosing a platform with native integration to ECC (SAP Hybris)

• Conducting “enablement workshops” with SAP

• Executing parallel test cycles (integration testing and user acceptance testing)

• Practicing migration
Q&A
 APPENDIX
At TXU Energy, most of our business process results were achieved by simple out of the
box configuration that Hybris Billing and SAP Convergent invoicing offer.

Examples :
1. Billing Process – We defined billing process specific to our Solutions business.
2. Grouping Variant – Aggregate billable items based on dates and provider contract.
3. Billing Unit – System groups billable items based on grouping variant and billing unit
groups . You can also manually control the creation of billing units in the billing dialog
processing.
4. Triggering activation on cycle dates – We used cycle dates for activation of
BITS for provider contract .
 SPEAKER BIO

Terry Coots
Terry Coots is the Director of Business Applications and Platform Integration at TXU Energy. At
TXUE he is responsible for the core ERP systems and surrounding business applications. Terry has
a long history of experience in the Retail Electric industry and SAP implementation practice.

- Terry.Coots@txu.com

Muneesh Narakula
Muneesh Narakula has over 10years of SAP experience with implementation and upgrade experience
of various SAP products. At TXUE he manages the Engineering and Delivery Governance team which
handles the release execution quality, adherence to coding standards across a number of applications
(SAP (CRM, ISU, BI & XI), Salesforce & Web) and maturity in the Landscape Management function to
assure consistent and reliable operations of BT systems. Along with supporting of existing TXUE
applications he is responsible for evaluation and implementing new solutions.

- Muneesh.Narakula@txu.com