Utilities – European Utility

European Utility - Investment Portfolio Management

Strengthening enterprise RONA with integrated investment portfolio and project management

This leading energy utility wanted to strengthen its return on net assets over a five-year period and decided that because of a study done by a leading strategy house to implement
portfolio management.

It already had a leading position in the market but wanted to drive more value for the shareholders and embarked on a five-year journey to increase organisational maturity to level four (see maturity model).

This enterprise was an Oracle house having much of the red stack, so it sort an Oracle partner that offered not only the detailed technical expertise in the Oracle Primavera Portfolio Management tools but had the business consultancy expertise and implementation experiences that would be needed to implement common set of business practices within a single tool in the trail business of this utility.

Challenge

To increase RONA, and to act as a pilot for the wider enterprise to embark on a truly enterprise implementation of investment portfolio management which would link not only the investment approvals process but project execution. The following key questions had to be answered:

  • How could the division increase RONA and thereby meet the management boards strategic objective within 5 years?
  • Were the savings predicted by the “strategy consultancy” accurate and could they save 30% of their investment budget?
  • How would an integrated solution be deployed across the enterprise having operations in most European countries with varying levels of process and practice maturity?Could the new enterprise investment process be implemented across this diverse business unit without them needing many individual forms and reports.
    Could existing departmental data be distilled down to a common set of reference data for reporting purposes.
    Approach
  • During the project formation stage, we were engaged to provide a series of educational seminars to provide the staff and management with a high level
  • understanding of the reasons for embarking on a portfolio management initiative.
  • In project design stage, we conducted a half day training session where we exhibited the OPPM tool to gain buy-in. We also specified the use of the “knowledge functionality”, structuring the category help to provide additional detail.The joint project team set about establishing the scope, project plan and roadmap before embarking on the implementation.
    The project team was trained on the new investment process.
    BenefitThe joint Hyde Park Solutions and customer team implemented a single enterprise Investment Portfolio Management application that mirrored our organisational processes for each of our stakeholders within an 6 month period.“….. we had an enterprise system that enabled us to track investments as they developed rather than focus solely on the ones before the investment review board…”

    “Our new integrated investment management process were able to be mirrored within the Oracle Primavera Portfolio Management tool and investments along the entire investment life cycle were visible for all to see”

    “As P6 users we liked the out of the box integration offered by Oracle it just makes life that little bit simpler”

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