Origin Energy’s is embarking on efforts to reassure customers and investors regarding its SAP overhaul. Previously, AGL made a similar upgrade to SAP moving from 6 different legacy systems to one single system at a cost of more than $200m. On technology forums like Whirpool at least, a number of comments were made about unhappiness with Origin customer service primarily attributable to systems issues.
Publicly at least Origin indicates that it is making progress. “We continued to make good progress on the integration of the NSW energy assets and have now successfully completed a major SAP billing and customer relationship management system implementation, which will increase the efficiency of our
operations, improve competitiveness and allow us to respond more effectively to customer needs,” Origin Managing Director, Mr Grant King was quoted as having said, in an August 2012 Origin Energy press release.
By January 2013 it was further revealed that SAP was now providing benefits through increased customer acquisition and retention activity, the launch of new products and services, with focus on restoring temporary late bill and collection issues Integral Energy NSW customers migrated onto SAP in January 2013. Origin is now servicing 3.3 million customers on SAP, with the final migration of Country Energy customers expected to be completed by the end of 2013.
The financial statements for the year ended 30 June 2013 indicated that SAP Infrastructure and Data services costs had increased by 50% over 2012.
Titled the Retail Transformation Program started in 2008, as a result of a combination of change management and technology related issues the overhaul has been more complex than expected. Among the changes, Origin Energy took 396 IT roles in the Retail business and outsourced them to Wipro in 2010
The decision to consolidate and upgrade was further complicated in 2011 when the energy retailer acquired Integral Energy and Country Energy from the NSW Government says Paris Cowan in an ITNEWS article. Acquisitions added 1.6 million customers being serviced on government legacy systems, along with the 2.6 million customers already on its own legacy systems.
The migration of NSW government customers was due to take four years and cost Origin $277 million on top of $422 million worth of transitional services payments to the NSW Government. Migrating Origin’s own customers cost another $260 million.
Read more at : Late billing peaks at 180,000, impacts cash flow
