ICT Investment Program 2015/16 to 2018/19

Table 31 provides a summary of ICT investments program for 2015/16 to 2018/19.

Table 31– ICT Capital Investment Forecast 2015/16 - 2018/19 ($ M)

Description 2015/16 2016/17 2017/18 2018/19 Enterprise Asset Management (EAM) Replacement 5.15 16.57 16.57

Network Information Enablement Program 11.24 1.65

Advanced Distribution Management System

Program 3.09 5.46 3.29

Field Force Automation (FFA) Upgrade 0.41 0.41 1.70 1.70

Enterprise Resource Planning Replacement 17.96 17.96

Market Systems Modernisation 4.68 4.68

Business Analytics Renewal 5.61 5.61

Information Security Enhancement 2.26

Integration Platform Renewal 11.73

Infrastructure & Communications 7.81 13.42 13.21 13.07

Applications Replacement and Continuous

Improvement 3.50 3.50 3.50 3.50

Total 47.86 53.82 57.78 39.78

Note: This forecast information is at 2013/14 cost levels.

The following initiatives are planned to commence during the 2015/16 to 2018/19 planning period.

Enterprise Asset Management (EAM) Replacement

An EAM system is used by Energex to plan and manage its assets. The necessity to replace this system provides Energex with the opportunity to meet this need by introducing a contemporary, best-practice based EAM capability. In doing so this will improve alignment with the ISO 55000 framework which Energex has adopted jointly with Ergon Energy.

Commencement of EAM is targeted from 2016/17 onwards and will form part of the ERP replacement program.

Network Information Enablement Program

Network Information Enablement Program focuses on the replacement and renewal of legacy network information systems and includes the following initiatives: NFM/GIS transition to NFM, minor GIS upgrade in 2019/20, renewal of distribution planning application NETPLAN and renewal of Energex’s bespoke substation forecasting systems including SIFT.

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Advanced Distribution Management System Program

This program will include a minor upgrade of the existing DMS and the replacement of Energex’s obsolete switching application A4S with an integrated Switching Request Register (SRR). Together, these will ensure that Energex continues to sustain the operational benefits achieved from the DMS implementation long into the next regulatory period.

Further investigation, assessment and introduction of new advanced capability in the DMS suite including: model management of HV & LV and a Switching Advisor Module, will also enable further operational savings and improvements in the DMS domain.

Field Force Automation (FFA) Upgrade

Energex has planned incremental enhancements to the FFA suite during the period, which will be coordinated in alignment with the FFA suite adoption by Ergon Energy. This will include the migration of functionality from peripheral systems (and the decommissioning of those), as these become available on the core FFA platform and a minor upgrade from 2017/18.

Enterprise Resource Planning (ERP) Replacement

The necessity to replace this system which is facing both technical and financial obsolescence provides Energex with an opportunity to introduce a contemporary ERP platform which will provide Energex with a stable foundational platform over the next decade.

Energex’s ERP platform is used to support the administration of the critical business functions of Human Resources, Finance, Procurement and Safety. Renewal of the ERP system with a contemporary ERP system will provide an opportunity for Energex to consolidate satellite applications and migrate administrative business processes to accepted industry standards. Implementation of a new Administrative ERP will commence as part of the planned ERP replacement program in 2015/16.

Market Systems Modernisation

The Market Systems suite of systems will reach technical obsolescence and replacement of these systems with a contemporary Market Systems platform will provide an opportunity for Energex to consolidate applications and implement a platform that is more adaptable to industry change. In this program the current customer information system, service order management system, meter data management and Business to Business (B2B) systems will be upgraded or replaced. Nemlink which is Energex’s B2B and Consumer Administration Transfer Solution (CATS) system will be the first initiative to commence with the program from 2015/16.

Business Analytics Renewal

This initiative will renew the core technologies underpinning Energex’s business analytics platform which will reach the end of its asset life during the period. This platform is critical to the delivery of operational and performance management across Energex. Replacement with a contemporary platform will also ensure that Energex is equipped to enhance the major

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system upgrade and replacement programs planned throughout the upcoming regulatory period.

Information Security Enhancement

This program addresses the numerous enhancements required to be made to Energex’s existing security infrastructure in direct response to increasing cyber threats and emerging technology trends of big data, cloud and mobile being faced in the industry. As part of this response Energex will be delivering three key initiatives covering: Identity and Access;

Information Security and Security Monitoring in sequence from 2015/16 onwards.

Integration Platform Renewal

The initiative will renew Energex’s integration platform which will be reaching the end of its asset life in 2018. This platform is critical to the operation of the Energex’s ICT architecture and provides key capability as a mechanism for simplistically moving information between systems.

Infrastructure & Communications

The renewal of Energex’s ICT infrastructure assets is delivered in accordance with Energex’s ICT Infrastructure Asset Renewal Guidelines. As ICT infrastructure and technology software assets age they become obsolete. To sustain the reliability and support of the ICT environment, an ongoing program is required to maintain these assets. Assets covered by the program include PC fleet (Desktops, Laptops), Windows Server equipment, Unix Server equipment, corporate data network equipment, Energex property works infrastructure, server storage infrastructure renewal and growth, asset renewal of ICT peripheral equipment including printers, mobile phones. The program also includes infrastructure software renewal of ICT technologies such as Exchange Email, integration technologies and database environments.

Application Replacement & Continuous Improvement

This includes the asset replacement and upgrades of all minor applications in line with Energex’s ICT Asset Management Guidelines, as well as minor continuous improvements to workforce automation, market systems, network operations systems, knowledge management systems, ERP and customer service systems which deliver additional business value to Energex.

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Metering

Ageing Meter Population Metering Investments 2013/14

Metering Investments from 2014/15 to 2018/19

Chapter 14

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