Enterprise-Wide Decision Making at Manitoba HydroBy Vlad Serdiuk
Manitoba Hydro is one of the largest energy utilities in Canada, serving 573,438 electric and 279,268 natural gas customers throughout the province. Manitoba Hydro is a leader in many areas of asset management and decision making, and I’m pleased to share a case study that describes how they adopted the C55™ Decision Analytics solution in one line of business back in 2010, and entrusted Copperleaf™ to help them build a robust framework for valuing investment decisions across the entire corporation. Manitoba Hydro is the first customer to implement C55 enterprise-wide, and I believe this is quite an achievement by both companies!
A Brief History
Manitoba Hydro’s journey began in 2010 when they began looking for a system to produce a long-term asset sustainment plan. Manitoba Hydro had built their own in-house investment tools, but found that they were not able to produce an optimal and defendable plan through a repeatable process; a lot of manual work was required. Thus, Manitoba Hydro began to search for a tool specialized in solving the capital plan problem they were facing.
In 2010, Copperleaf was awarded a contract to implement C55 in the Generation Operations group. In 2011, C55 was successfully implemented and a 20-year asset sustainment plan was produced the following year. This was a major success for Manitoba Hydro as it was the first plan that was based on a scientific approach—using C55 Predictive Analytics. It allowed Manitoba Hydro to understand and plan for asset replacements over 20 years, and thus significantly improve the reliability and availability of their asset base.
In addition to a long-term plan, Manitoba Hydro benefited from a number of C55 features that were tailored to support automation of their business processes, as well as integration with their financial and EAM systems (financial and asset SAP modules). In 2014, the Customer Service and Distribution (CS&D) operating group joined Generations Operations in using C55 for their planning needs. It was another successful implementation of C55 that demonstrated how two quite different groups could benefit from using the same system.
Evidence-Based, Enterprise-Wide Decision Making
In 2016, a corporate-wide implementation began involving the rest of the organization, including the CS&D sustainment/operations group, gas distribution, transmission, IT, finance, fleet, facilities, corporate security, and HR. This was a challenging series of projects that unified and standardized corporate planning processes and the use of C55 across the entire organization. It also had a great influence on overall asset management and decision-making strategy. The corporate-wide roll out of C55 occurred throughout 2017, with every go-live achieving its targets in scope, timing, and budget.
Leadership in Many Areas
- First enterprise-wide implementation of C55 and the Copperleaf Value Framework:
The Value Framework spans the entire Manitoba Hydro organization. C55 facilitates comparison of dissimilar investments across the organization.
- Change management and harmonization of business processes:
A large, diverse organization with varying business objectives and operational risks now follows a consistent set of capital portfolio management processes.
- Business process automation is achieved through sophisticated electronic workflows that:
- Gather approvals
- Integrate with SAP
- Integrate with SharePoint
- Produce approval documents
- Replace e-forms (a series of questions can be asked in the workflow)
- Best-in-class asset management governance:
Manitoba Hydro has established a mature governance body that oversees the evolution of the value framework and ensures uniform use of C55 across all lines of business.
C55 is integrated with multiple SAP modules (e.g. investments, assets, portfolio, HR modules). Manitoba Hydro has also taken the lead in terms of integrating C55 with other third-party systems, such as gas sales systems and fleet systems.
A Bright Future
Manitoba Hydro continues to build upon the successes over the past 7+ years and Copperleaf is excited to continue to support them on this journey. As the company perfects its use of C55 and the Copperleaf Value Framework, I am confident Manitoba Hydro will be recognized as a leader in asset management and decision-making in North America and beyond.
For me personally, this project has been a fantastic learning experience and I can honestly say that I consider myself lucky to work with such a thought-leading organization and fantastic people. I am proud of what we’ve accomplished so far and look forward to seeing what’s next!
To learn more about this project, please fill out the form to download the case study.