Streamline Operations with Systems Integration Best Practices

Information systems play a key role in the operation of any utility. Systems like customer information systems (CIS), geographic information systems (GIS), asset management systems, supply chain systems, field work systems, financial systems, and meter data management systems all help the utility run smoothly on both the customer and service sides.

The opportunities for both minor and major errors increase significantly when a utility’s operation relies on dozens of different systems to track, share, and secure customer and operational data. While many utilities are improving operational efficiency by tackling systems integration projects, some are still running disparate information applications, sacrificing accuracy, simplified Sarbanes-Oxley Act (SOX) compliance, and even security.

Properly integrated systems can ensure a utility’s data are processed correctly and flow with ease from one system to another without roadblocks and errors, much like water travels through a well-designed pipe system. For utilities, an integrated system tailored to their business needs enables operations and billing to run smoothly, streamlining both customer service and field support.

Simplified operations

Systems integration projects aim to improve communication, connection, and cooperation between the disparate technologies that utilities use to run their business. A well-designed integration can provide utilities with backups when key systems go down and improve inter-system communication and data transfer. Additional benefits include:

• Ease of customer care. By better connecting billing, customer care, and metering systems, integration projects can help utilities more quickly, accurately, and securely serve their customers because information gathered by these systems is more easily communicated and processed.

• Compliance. Integrated systems make it easier for utilities and auditors to track and record the data needed to demonstrate regulatory compliance. SOX compliance requires extensive documentation, and disparate information systems can complicate data transfer and record keeping.

• Improved servicing. On the service side, systems integration can help track repairs or outages in the network. If a pole is damaged, information can be entered into a system using GIS to save the pole’s location, track the repair process, and even change the status of the new pole from “active” to “retired” or “repaired.” The data can then be shared with the financial information, warehouse, or budget systems to streamline the decision-making process or estimate project timelines.

Without a properly implemented systems integration, data from individual systems may be unable to move back and forth between systems quickly and accurately or be properly gathered and analyzed. By integrating these disparate systems, utilities can save themselves and their customers time, effort, and money.

Models for systems integration projects

There are two architecture models used for systems integration projects: the waterfall model and the sprint model.

1. Waterfall: This model follows a linear progression that begins with an assessment of the utility’s needs followed by a system design. The software and system are finished and tested as a whole before the system integration goes live. The waterfall model is often useful for large utilities that may have more complex or whole system needs and the personnel to support the integration project from start to finish.
2. Sprint: A sprint model divides the project into short phases where specific portions of work are completed and reviewed before going live. Once the sprint is over and the product is complete, it can then be iterated on according to a business’ needs and customer feedback, allowing the utility to integrate system changes over time. For a smaller utility where the core product is ready, a sprint model may be ideal—after a few sprints, portions of the integration project can be made live, and the whole project may be completed with 10 or 15 sprints.

Deciding which model is best will depend on the utility’s unique needs and characteristics.

Best practices for systems integration

Systems integration projects have the potential to provide huge benefits to utilities. While which architecture process is used and what specific applications are included will be unique to each utility, there are best practices that should be applied to all projects.

• Ensure all systems have back-up service. Interruption to any one system not only impacts that system’s processes, it can also affect connected or related systems and bring work to a standstill. Back-up services for all systems can prevent stoppages and protect important information.
• Middleware data processing between systems. Middleware refers to a type of software connecting an operating system to the applications running on the system. Middleware is an important component in ensuring that information and data move correctly through the system and that the whole system functions as it should. 
• Data processing accuracy and speed. Data must be processed and shared quickly and accurately for key operations to function. Inaccuracies and processing problems can cause significant issues, slowing down the system as a whole and negatively impacting overall performance.
• Streamlined end-to-end flow. By ensuring data can flow smoothly, utilities can reduce the manual processes involved in various systems and increase the automated processes. This reduces the chance of user-introduced errors and increases speed in the system.
• SOX compliance. Utilities that are not SOX compliant are at risk of regulator fees and other compliance-related issues. SOX compliance should be considered and built into any project from the beginning to support accurate, quick, and easy reporting.
• Ease of use in validating the integration flow and behavior. Properly designed and implemented systems should be easy to use and utilities must also ensure systems are communicating and exchanging data smoothly and accurately. Otherwise, instead of streamlining workflow, more resources and time will be required to address issues.
• Systems checkpoints. Ensuring appropriate approval level and systems checkpoints between systems protects sensitive customer and utility information and helps utilities maintain regulatory compliance.

SOX compliance

The Sarbanes-Oxley Act (SOX Act) requires stringent recordkeeping, accurate financial information, and annual audits conducted by independent auditors. Utilities need to store important financial data securely for a minimum of seven years, ensure the data is backed up safely, and document any changes to the IT system.

Maintaining appropriate documentation and security is critical to meeting SOX compliance requirements and integrating technology and information systems can help streamline the process. When systems can communicate smoothly, records and data pass easily and securely from system to system, with significantly less risk of errors or security breaches. Integrated systems can help improve internal documentation, simplify record-keeping and compliance monitoring, and minimize the risk of introduced human error.

Designed for success

The first step to a successful integration project is identifying what parts of a utility’s operations could benefit from a systems integration and what scope and budget will best fit its needs. Then, develop a plan using the best practices outlined above as a foundation. Without implementing these standards, utilities likely will not achieve the benefits of connecting their disparate systems.

When designed and implemented thoughtfully, systems integrations support more efficient, secure, and accurate utility operation, especially in the era of ever-changing regulations and reporting requirements. By bridging the gaps between their various information systems, utilities can put their data to work for them.