Abstract
IES Utilities, an investor-owned electric and gas utility headquartered in Cedar Rapids, Iowa, has
340,000 electric and 180,000 gas customers. The company is in the process of merging with two
other Midwestern U.S. utilities, Wisconsin Power & Light and Interstate Power Corporation. The
new entity will have 850,000 electric and 360,000 gas customers.
IES Utilities is instituting re-engineered business processes with the support of a rapidly
implemented suite of technology. The IES Vision Information Management, Planning, and
Customer Technology (IMPACT) project integrates new systems, such as AM/FM/GIS, Work
Management, Distribution Management, and Computer Aided Dispatch/Mobile Data Terminals, with
the utility’s legacy business systems.
This paper discusses some of the special considerations/features of the project, including:
- Rapid deployment - two-year schedule, including data conversion/migration
- Working with merger partners to develop common IT systems
- Use of the 80/20 rule to get the most “bang for the buck”
The presentation will focus on project management issues as well as the technology involved. The
important factors of vendor partnerships, subcontractor management, executive sponsorship, and
scope/schedule management will also be discussed.
Introduction
At the time of the 1998 AM/FM International Conference, IES Utilities will be 20 months into its
rapid systems integration project. Addressing many of the same challenges facing utility companies
throughout North America, including pending deregulation, increased competition, and the drive to
increase shareholder value, IES has embarked on a very creative, aggressive and closely watched
information technology (IT) project.
Project overview
The Vision IMPACT (VIP) project is a 24-month effort that involves the development of a new
integrated information system to support the Energy Delivery Process at IES Utilities. The VIP
project is the direct result of the 1996 employee-driven Process Redesign effort. Several business
drivers instigated this large systems integration project, including the following: enhance customer
service, reduce operating costs, and ultimately change the corporate culture through a new energy
delivery process.
The VIP project involves the integration of four major new information systems, including an
automated mapping/facilities management/geographic information system (AM/FM/GIS), a work
management system (WMS), a distribution management system (DMS), and a computer aided
dispatch/mobile data terminal (CAD/MDT) system (Figure 1). These new systems are integrated
with each other as well as with existing IES systems, including the Material Management
Information System (MMIS), Customer Information System (CIS), Supervisory Control and Data
Acquisition (SCADA), Iowa One-call, and Property Accounting.
The Economic Value
Added (EVA)
analysis for the
project is positive
and showed a shortterm
tangible
payback, without
taking into
consideration intangible paybacks, such as improved customer service and response time.
With a 24-month project schedule, including data conversion and migration, IES is geared up for
very rapid deployment of the new systems. In fact, the VIP project has one of the most ambitious
systems integration schedules currently underway in the utility industry. IES is also believed to be
the first utility in North America to implement and integrate the four VIP technologies.
Vendor partnerships and management
More than 35 people are working on the project, including a core IES project team of 9 from
business and 15 from IT, along with an additional 12 people from Convergent Group, the systems
integrator.
In addition to the core project team and consultants, several vendor partners are involved in the
project. Because of the tight development and production schedule, IES realized early on that it
would need to rely on Convergent Group to economically and effectively manage its vendor partners
in order to meet its schedule.
Five main vendor partners are involved with the VIP project. In addition to Convergent Group, there
are the vendors associated with the four systems, which include Severn Trent Systems (WMS),
Smallworld (GIS), Configured Energy Systems (DMS), and Mobile Data Solutions, Inc.
(CAD/MDT). MSE Corporation is the vendor in charge of data conversion and migration.
As systems integrator, Convergent Group is responsible for managing all vendor contracts. This
includes negotiation and procurement, installation and installation support, data acceptance testing,
scope and schedule management, budget management, contract management, version upgrades, and
software maintenance. The agreement with Convergent Group allows IES to take advantage of
existing relationships with additional suppliers, including Compaq, Hewlett Packard, Oracle, and
Telxon.
This arrangement with Convergent Group has allowed the IES core project team to concentrate more
fully on their respective assignments. Instead of spending hours on the phone with vendors, team
members have been able to dedicate themselves to the specific aspects of the project where their
experience and knowledge are most needed.
IES determined early on in the project that each vendor has its own style and method of doing
business. Convergent Group has helped “bridge the gap” when necessary and worked to establish
mutually beneficial partnerships between the VIP project team and all of the vendors.
