Next Generation Utility CIS

• Publication date: January 2011

Utility Billing and Customer Information Systems in the Age of the Smart Grid: Market Analysis and Forecasts The market for utility customer information systems (CIS) and billing solutions is on the brink of a major transformation as many leading utilities prepare for an overhaul of their systems infrastructure. With a large number of systems that are more than 20 years old and designed for a simpler business model of regulated elec...

Utility Billing and Customer Information Systems in the Age of the Smart Grid: Market Analysis and Forecasts

The market for utility customer information systems (CIS) and billing solutions is on the brink of a major transformation as many leading utilities prepare for an overhaul of their systems infrastructure. With a large number of systems that are more than 20 years old and designed for a simpler business model of regulated electricity distribution, utilities’ smart grid initiatives are having a heavy influence on the selection of more robust systems that can handle data feeds from smart meters, time-of-use (TOU) and real-time pricing (RTP), demand response (DR) programs, net metering, and the sheer volume of data that will be generated from the smart grid. Pike Research anticipates that this systems transformation will represent a total market opportunity of more than $4 billion.

Over the next few years, this massive upgrade will be accompanied by fundamental shifts in the competitive landscape for utility CIS and billing. While Customer/1 is the leading system in use today, many smart grid utilities will have no choice but to fully replace it. As it phases out from the competitive landscape, Customer/1 will leave a vacuum that established vendors, such as SAP and Oracle, are eager to fill. The vacuum also attracts new entrants from the telecommunications CIS and billing world, such as Convergys and others.

This Pike Research report analyzes the market opportunity for CIS and billing systems upgrades among utilities in the United States. It examines the business drivers, key applications, technology issues, and competitive dynamics that will define the next generation of utility systems in the smart grid age. The study features profiles of key industry players, including SWOT analysis, as well as market forecasts through 2015.

Key questions addressed:

Are utilities ready to transform their CIS and billing system, and why?
Which vendors should benefit from utilities’ CIS and billing systems transformation?
How big is the CIS market for software vendors?
Do telecom CIS and billing system vendors have a chance to succeed in this market?
What do key players need to do in order to get a share of this market?

Who needs this report?

Utilities
Utility CIS and billing software vendors
Telecom CIS and billing software vendors
Consulting and systems integration firms
AMI and MDMS integrators
CIS and billing outsourcing services vendors
Regulators and other government agencies
Investor community

Electronic Component And Semiconductor Industry in the United States

Table of Contents

1. Executive Summary
1.1 The Beginning of a Major Transformation

2. Market Issues
2.1 Introduction
2.2 Identifying the Benefits of a New CIS
2.3 New Generation CIS Boosts the Whole Smart Grid Value Chain
2.4 Rules and Regulations Impeding the Smart Grid
2.5 The Heavy Weight of Legacy
2.6 Transformation vs. Updating
2.7 Transforming beyond the CIS and the Billing System
2.8 Doing Nothing?
2.9 A New Boost for Hosted CIS
2.10 Incumbent CIS vs. New Contenders
2.11 Duke Energy’s Bet
2.12 Customer Centricity; a Cultural Revolution
2.13 Segmenting the Customer Base
2.14 Other Uses for Customer Data
2.15 Microgrids Breaking the Current Business Model

3. Technology Issues
3.1 The New CIS and its Numerous Interfaces
3.2 Structuring Complex Billing
3.2.1 CIS at the Heart of a New Service Delivery Model

4. Key Industry Players
4.1 CIS Vendors and Integrators
4.1.1 Accenture
4.1.2 SAP
4.1.3 Oracle
4.1.4 Convergys
4.1.5 Smart Grid Billing
4.1.6 Amdocs
4.1.7 IBM
4.1.8 Hewlett-Packard
4.1.9 Capgemini
4.1.10 PwC
4.2 Utilities
4.2.1 Duke Energy
4.2.2 We Energies

5. Market Forecasts
5.1 The Big Players
5.2 The “Top Ten”
5.3 The CIS Transformation Market
5.4 The CIS Updating Market
5.5 The Many Software Solutions Available on the U.S. Market

6. Testing Smart Grid Billing Systems
6.1 Understanding Customers’ Reactions and Expectations
6.2 How It Worked
6.3 Customers’ Involvement
6.4 Results

7. Company Directory

8. Acronym and Abbreviation List

9. Glossary of Utility CIS & Billing Terms

10. Table of Contents

11. Table of Charts and Figures

12. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures
Installed Base by Vendor, United States: 2010-2015
CIS Vendor Market Shares Estimates, United States: 2010
CIS Solutions Market Share Estimates, United States: 2015
Installed Base by Vendor, United States: 2010-2015
One of We Energies’ Segmentation Approaches
Utility Industry Evolution over the Next Decade
The New CIS Handles More Complex Customer Management
How the CIS Integrates Many New Functions
PowerCentsDC Brochure Cover
PowerCentsDC Brochure Inside


List of Tables

Current State Regulations on Variable Pricing
Complex Billing Options
Accenture SWOT Analysis
SAP SWOT Analysis
Oracle SWOT Analysis
Convergys SWOT Analysis
Smart Grid Billing SWOT Analysis
Amdocs SWOT Analysis
IBM SWOT Analysis
HP SWOT Analysis
Capgemini SWOT Analysis
PwC SWOT Analysis
Duke Energy SWOT Analysis
We Energies SWOT Analysis
U.S. Projects with more than 1 Million Meters: September 2010
The Top Ten Utilities Represent More than 25% of the Market
CIS Installed Base by Number of Meters, United States: 2010-2015
CIS Solutions Installed Base by Percentage of Meters, United States: 2010-2015
Estimated Market for CIS Transformation, United States: 2010-2015
Average Cost of Transformation per User, United States: 2010-2015
Total Value of the CIS Transformation Market, United States: 2010-2015
Number of Meters Connected to Updated Solutions, United States: 2010-2015
Updating Rollout per Solution, United States: 2010-2015
Average Cost of Updating Per User, United States: 2010-2015
Total Value of the CIS Transformation Market, United States: 2010-2015
Overview of the U.S. CIS and Billing Software Landscape