HCL’s ALT ASM™ for the Utilities Industry
The Situation Today
Utility customers today expect much more than just reliable delivery. They expect transparency and service innovation, in line with other industries such as Telecom and Banking who interact with customers through digital channels instead of through traditional call centers for services, without an increase in costs. Changes in consumer behavior, together with new T&D technologies (Smart Grid and Smart Metering) and disruptive Social, Mobile Analytics and Cloud (SMAC) technologies are creating new challenges and opportunities for the industry. In addition, regulatory pressure, aging infrastructure, a traditional workforce, and new security threats are other factors that are forcing Utilities to adopt advances in technology to support the fast enablement of their programs whilst closely managing their operational expenditures.
All these initiatives demand significant amounts of capital investments at a time when cost optimization is of the essence, thus forcing the industry to scrutinize every aspect of the business for efficiencies and optimizations.
How HCL Can Help
HCL has dramatically changed the Application Support and Maintenance (ASM) model in the Utilities industry through unique tools and domain experience, having worked with Utilities over a span of two decades. HCL’s philosophy of Unlocking Capital through a ‘proactive obsolescence’ approach in application management is creating a paradigm shift by enabling ASM to become a business driver. This model focuses on business outcomes and KPIs and not just on IT SLAs (where a focus on the latter alone results in an incomplete definition of outcomes). HCL’s approach is that we be measured on our ability to continuously drive improvements in operations, customer service, and overall business performance by attracting new customers through high customer retention measures, rather than just incentivizing and measuring us against static SLAs.
ALT ASM™- HCL’s Alternative in Application Support and Maintenance
Enhances Visibility, through
- Application landscape assessment enabled by HCL PRIZM™ which helps categorize which applications to invest in, which ones to maintain, and which ones to dis-invest
- Improved service quality and reduced incidents with scientific management of the IT landscape using PRIZM™
- Proactive business process monitoring for key processes impacting business KPIs through ProcessWatch™ and ProVantage™ solutions
- Engagement visibility, and transparency in service quality through Co-Managed IT and real-time visibility application - myDashboardTM
Accelerates Velocity, by
- Reducing risk and improving efficiency through engagement flexibility
- Enhancing platform stability through proactive and predictive delivery
- Increasing efficiency with cross/up skilling in-line with the business aligned Target Operating Model (TOM)
Provides Greater Value
- Guaranteed 30%+ cost reduction using the ALT ASM™ framework - HCL’s Gold Standard for ASM
- Reinvest 3% to 5% of TCV as value generation, in the form of transformation consulting assignments which result in transformation opportunities being identified
- Application landscape modernization leading to TCO reduction through Self-Funded Application Portfolio Optimization (APO) and Shift-to-Cloud
- Differentiated service delivery by releasing Business Subject Matter Expert bandwidth from non-strategic applications
CIOs objectives include positively impacting the bottom line while reducing the cost of IT operations and delivering reliable and cost-effective IT infrastructure. Most business leaders rely upon the CIO to deliver a differentiation in this commoditized market, but the CIO’s challenges are characterized by the fact that highly skilled resources are locked into operational activities with minimal bandwidth for transformation, and knowledge and key business understanding is restricted/imparted only amongst a few key resources.
ASM is one area within technology management where by changing the way of doing business, we can positively impact the bottom line with the resultant savings being utilized to fund transformational activities. However, most IT organizations are ill equipped to provide the right resources, frameworks and skills to support this alternate way of doing business.
What We've Done for Others
- For a Midwest provider of electric and gas services to over 6 million residents, HCL implemented lean techniques and cross-skilling resulting in a headcount reduction of over 15% while also decreasing incident and service request resolution time. HCL also introduced proactive monitoring and maintenance which reduced unplanned system outages by over 80%.
- HCL implemented advanced asset management tracking to prioritize preventative maintenance and reduce corrective maintenance of water pipelines and treatment plants by over 20% for one of the largest municipal water companies.
- HCL automated the manual processes of a large electric and gas utility to reduce the financial close cycle by over 40%.
- HCL owns business outcome-based KPIs - e.g. Call Handling Time, Billing Accuracy, Billing Timeliness, Outage Restoration, and more, for multiple utility clients.