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the granularity of the data provided by the system, at first resulting in a hypothetical “data overload.” However, through ongoing exposure, end-users and customer-facing employees were able to quickly turn this hindrance into a strength. When making purchase decisions about field equipment, Energen <strong>management</strong> can now deftly search through the performance history of specific equipment, allowing for quicker, more-informed decision-making. As other utilities look to improve <strong>asset</strong> <strong>management</strong>, they should seek out an implementation option that can instantly integrate with established business processes and link throughout the entire value chain. Industry best practices often preach about the value of an integrated approach, but this is an area that cannot be stressed enough. An integrated solution provides for a quicker and easier installation. Moreover, by integrating all business processes, Alagasco achieved a sophisticated level of service and responsiveness. Flaws within the distribution system were easily tracked, setting a maintenance schedule ranking repairs by areas of need and resulting in the lessening of revenue and product loss. No matter how skilled the IT department, a successful and seamless enterprise implementation cannot be handled alone. Thirdparty or vendor personnel must be available to help employees learn new systems and to ensure that phased implementations stick to original timetables and meet pre-designated goals. All utilities must be able to trust a vendor. At Energen, the team consistently worked well with our software partners and consultants, who were able to quickly train employees to utilize the new software, while providing a rational, goal-driven template for future implementations and upgrades. Energen realized quick, significant returns from its ERP solution. Overall costs fell with particular improvements seen by reducing mechanical failures and providing responsive corrective maintenance. Critical plant, fleet, and distribution equipment saw maintenance costs drop as well. Moreover, operational efficiencies increased greatly with the advent of real-time information and near real-time budgeting, allowing for the widespread transmission of mission-critical information to 46 ENERGYBIZ MAGAZINE July/August 2005 departments throughout the enterprise. With the ERP solution to help manage Alagasco’s workload, response time has improved drastically, which in turn improves customer service and loyalty measures. With the widespread success of the ERP system featuring <strong>asset</strong> <strong>management</strong> capabilities, Energen continues to bolster its production and cut down on costs by targeting the supply chain. A project team is currently working to install a document <strong>management</strong> system (DMS) to facilitate the accounts payable portion of the supply chain, linking the finance department with production efforts. Company-wide, a new focus has been embraced, calling for ongoing examination of business processes with the intent of delivering greater returns to customers and shareholders. Enterprise <strong>asset</strong> <strong>management</strong> is evolving outside of the legacy systems of the past two decades, becoming a significant part of the fully integrated utility. The major barrier to this transformation is the unwillingness of corporations to address the change <strong>management</strong> issues concerned with leaving the interfaced, o n t o p i c Utility Outsourcing articles from EnergyPulse To view any of these articles, please go to www.energycentral.com/quicklink and type the quick link code into the quick link box. End the Asset Management Tug-of-War Richard MacDonald, SPL WorldGroup, Inc. Quick link code: P1025 Optimizing EAM John Yolton, Solutions Associates Quick link code: P539 It’s Always Been About Asset Management Frank Craig, MCR Performance Solutions Quick link code: P531 Working Capital Reduction Donald Ryan, dynaTHinK LLC Quick link code: P402 Asset Management, in Theory and Practice Bruce Humphrey, KEMA Quick link code: P386 Capital Asset Life Extension Anthony Impelluso, AIM Engineering, LLC Quick link code: P320 less-optimized world. The ROI to complete this transformation is available; organizations must be willing to venture outside of their comfort zones to realize the full potential of the integrated enterprise. While it’s difficult to predict when this trend will become the norm, integrated <strong>asset</strong> <strong>management</strong> will soon become the low-hanging fruit of the future as utilities look to complete supply chain optimizations. While some <strong>asset</strong>-intensive industries are unique enough to require highly specialized functionality within the <strong>asset</strong> <strong>management</strong> space, I would argue these are the exception rather than the rule. In the end, the ultimate answer for utilities lies in extending ERP systems with new open-standard architecture platforms that preserve the deep integration of all business processes. Brunson White is the CIO of Energen Corp., headquartered in Birmingham, Ala. He also currently serves as the chair of the American Gas Association/Edison Electric Institute Technology Advisory Council. A New Look At Spending Optimization Scott Sidney, UMS Group Quick link code: P204 Seven Principles of T&D Asset Management Bill Cozzens, Soluziona USA Quick link code: P193 Asset and Supply Chain Management Junaid Yasin, ProcureZone Quick link code: P185 Value of Early Warning of Failure Tim Holtan, SmartSignal Corp. Quick link code: P159 Asset Optimization Dunham Cobb, CGEY Quick link code: P137 Utilities Need More Asset Management John Geoghegan, IBM Quick link code: P113 Mixed Signals Cloud Reliability Picture Bruce Humphrey, KEMA Quick link code: P387 Enterprise Exposure Management Kevin R. Rose, ENSIGHT Advisors Quick link code: P24
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