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Business Model: Development Approach

Business Model: Development Approach. An iterative process makes most sense. Top Down Approach. Review and clarify CNP organization & functions. 1. Define key customer groups Similarities & differences. 2. Confirm against CNP “meter to bill” process list. 3.

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Business Model: Development Approach

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  1. Business Model: Development Approach An iterative process makes most sense Top Down Approach Review and clarify CNP organization & functions 1 Define key customer groups Similarities & differences 2 Confirm against CNP “meter to bill” process list 3 Validate against Mastio attributes 4 Bottom Up Approach

  2. For this project: Out of Scope Functions Market development Strategic development Finance Field Service management All Field Service functions Operating management Pipeline integrity Project services Engineering Later potential additions Gathering for: BP Arkla Customer facing: In Scope Functions Operations management “Information” measurement Business Development – Financial Analysis Marketers Contract Administration Nominations - Confirmations System Control & Gas Control Invoicing O&M @ customer locations (geographic) Rates & Regulatory Legal Revenue Accounting Info Systems Support Functions Budgets Accounting (general & plant) Business Model: Functions In-Out of Scope Categorizing and normalizing customer inputs is very important…

  3. Business Model - Definitions We will use the following terminology in this project… Communication of day-to-day activities associated with CGET/MRT Objective Direct Customer Interface Activity or function that “feeds” a direct customer interface Indirect Customer Interface The customer and “2 degrees of freedom” inside the CGET/MRT organization Scope of This Investigation

  4. Business Model: Customer Interfaces Relating business functions to product flow & transport services… Well Head Producing 1 Field Services Gathering 2 Operations Transmission Storage 4 Gas Control 5 Custody Transfer 8 End User 9 SystemControl 6 At least 3 customer Interfaces: Operations Measurement 3 7 Info Measurement • Daily transactions: • Scheduling • Imbalances • accounting Pooling Buy Gas Nominate MRO A Capacity Buyers Gas Buyers B Schedule @I/connect Deliver 1500 - Get1500 @ I/C A Object: Provide Services Associated with Capacity Sold & Invoiced Plant Managers Operating People @ customer level C

  5. Business Model Level 1.0: Customer-Facing Functions Relating CNP business functions to customers… 1 Well Head Producing 2 Field Services Gathering Operations Transmission Storage 4 Gas Control 5 Custody Transfer Customer SystemControl 6 Operations Measurement 3 Info Measurement 7 8 Business Development Pooling Buy Gas Nominate MRO Legal 16 9 Marketers Contract Admin 10 Rates & Regulatory 17 System Planning 20 11 Nominations 12 Confirmations System Control Info Systems 18 Imbalances Gas Control 13 19 Revenue Accounting 14 Invoicing 15 O&M Field Maintenance 21 Customer Loyalty

  6. Business Model Level 2.0: Customer Flows Relating business functions to product flow & transport services… PRODUCT FLOW A End User Plant Managers Operating People @ customer level 8 4 Operations Transmission Storage Custody Transfer Measurement Well Head Producing 1 Field Services Gathering Operations Measurement 2 3 To Be updated Gas Control Measurement Service Lynx System IT Regulatory Legal Sys Planning Rev Acctg PAPER FLOW B Service Lynx System Object: Provide Services Associated with Capacity Sold & Invoiced Accounting Function OA OFO BPA’s Billing NOMS Allocation Imbalances Pooling Buy Gas Nominate MRO Scheduling Contract Process M CS CS SC CS SC CS Customer Interface at least 3 customer Interfaces • Daily • transactions: • Scheduling • Imbalances • accounting • Daily • transactions: • Scheduling • Imbalances • accounting • Daily • transactions: • Scheduling • Imbalances • accounting Pool Manager Capacity Buyers Gas Buyers • Daily • transactions: • Scheduling • Imbalances • accounting Schedule @ I/connect Deliver 1500 - Get1500 @ I/C Marketers Pool Man. Scheduler Scheduler Scheduler Plant Mgr Accounting Scheduler

  7. Who Is the Customer and What Does He Want? Varies by channel segment and customer organization… Typical No. of Encounters Key Buyer Key Influencer Long Term F/T Example Marketing Purchasing CGET Function Code 1 2-4 weeks to negotiate the deal Scheduling 6 9 52+ 52 weeks day-to-day functions 16 20 Accounting 12 6 9 Monthly settlement Plant & Operations 16 20 Only when there is an upset, problem or change from plan ? 15 19

  8. Marketer Customers are Different than End-Users Deal lifecycle is much shorter – transaction efficiency important…. 1 YR 2 YR Deal by Deal Deal by Deal Timeframe F/T HFT I/T PALS Buy & Sell Services One CenterPoint Energy Contact CGET needs marketers to develop “off system” capacity and opportunities

  9. Agents Are Also Part of the Landscape Agents act on behalf of end users… Buy Gas Customer can & do this function Contract for Transport Services Nominate & Schedule Agents provide everything else Bill & Collect Asset managers also exist: They “control the contract” and use Agents to help execute

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