Severn Trent Plc · LSE:SVT
Severn Trent — Investor Day (March 2017)
33 slides from Severn Trent's investor day presentation, Mar 27, 2017
Slide 1: Unleashing Digital to Unlock Value
UNLEASHING DIGITAL TO UNLOCK VALUE 27 MARCH 2017
Slide 2: Our Vision
OUR VISION 1
Slide 3: Creating Value for Customers and Shareholders
CREATING VALUE FOR CUSTOMERS AND SHAREHOLDERS Previously announced £670m totex savings Outperforming our Helps us on our journey to build a leading business Final Determination by £260m Named schemes Retail Water Waste E.g. Birmingham Resilience Ambition to be ‘Upper Quartile’ by the end of AMP6 and
Slide 4: Building a Leading Business
BUILDING A LEADING BUSINESS The outcomes we are driving to deliver against our Upper Quartile (UQ) ambition: • Already moved from 6th in AMP 5 to 4th (of 18) and ambition beyond Retail • Balancing drive for cost to serve efficiency with UQ customer experience and industry leading support for vulnera
Slide 5: Digital Strategy
DIGITAL STRATEGY Key levers of digital value Reinventing water with customer Transforming our colleague at the heart of all we do: Customers Colleagues experience: • Easy and right first time • A productive day’s work • 24x7 channel of choice • Intuitive to use • Affordable for all • Inspiring our t
Slide 6: Becoming a UQ Retail Business
BECOMING A UQ RETAIL BUSINESS Retail • Outperforming our retail industry allowance of £21 cost to serve each customer – each 50p per customer of efficiency is worth £1.7m • We are currently delivering performance of £17.50 • Reduced operating cost New contact centre desktop • Shorter calls, improved
Slide 7: Becoming a UQ Water Business
BECOMING A UQ WATER BUSINESS Water • Targeting significant annualised run rate totex reduction of ~£20m • Reducing operating costs • Less travel time and shorter time per job • More efficient use of chemicals and consumables New fieldworker apps and devices • Lower costs on fines from the Highways A
Slide 8: Becoming a UQ Waste Business
BECOMING A UQ WASTE BUSINESS Waste • Remaining in the top 2 (out of 10) from pole position in AMP 5 • Improving service and continuing to earn strong customer ODI rewards • Connecting sensors and analytics to prevent flooding and pollution • Quicker diagnosis and resolution of jobs through analytics
Slide 9: Continuing to Drive and Embed a Digital Future
CONTINUING TO DRIVE AND EMBED A DIGITAL FUTURE • Our digital strategy is making a huge difference today • All our investments pay back on a two year basis • We are entering year three of AMP 6 and we are not stopping • We are embedding innovation to embrace new opportunities • Our customers are at t
Slide 10: Retail
Retail 9
Slide 11: Customer Management Portal
CUSTOMER MANAGEMENT PORTAL New customer advisor desktop, collating diverse sources of information into a single, insightful view of the customer Drives productivity improvements and an improved customer experience Reduces call handling time to 5 minutes from 8 minutes per call – a £330k cost sav
Slide 12: Channel Shift to Digital
CHANNEL SHIFT TO DIGITAL Multi-channel offering for customer contact, including self service, web chat and social media 1.3m more customers using our digital service Reduces our cost to serve by £550k per year through lower FTE requirements Over 950k customers now using online billing – saving
Slide 13: New Bill Format
NEW BILL FORMAT Total redesign of the customer bill, focusing on simplicity and clarity Before Easier to understand bills has resulted in a 17% Now reduction in unwanted customer contacts since go-live For the recent main billing run, in February alone there were 15k fewer calls Customer feedb
Slide 14: Reducing Bad Debt
REDUCING BAD DEBT Differentiating between customers who can’t pay and those who won’t pay, from leveraging data Obtaining additional information on our customers to optimise our collection strategy and improve collection rates Helps better identify those in need of financial support New approa
Slide 15: Water
Water 14
Slide 16: Site Mate
SITE MATE New devices, with easier to use fieldworker applications, improved connectivity and greater mobility Using latest version of Panasonic’s Toughbook Enables quick and easy feedback on completed work New Fieldworker app improves productivity and reduces training timescales by 50% Bett
Slide 17: Field Apps
FIELD APPS Two new applications for use in the field, built by our internal app team SiteSnap Simplifies the creation of 100,000 traffic management sketches per year Reduces the number of permit application rejections Saves our technicians 20 minutes per day, equating to £360k per year SiteVie
Slide 18: Store Mate
STORE MATE Consolidation of our stores and implementation of new stock management technology Stores now consolidated into three regional distribution centres and six satellite stores Barcoded stock control creates a supermarket style self-service experience Repair teams now saving 30 minutes p
Slide 19: Satellite Technology
SATELLITE TECHNOLOGY Exploring options to use satellite technology to enhance asset monitoring and inspection regimes We are actively looking for new opportunities to use cutting-edge satellite technology Our first pilot has the potential to help identify leakage locations Will help reduce the
Slide 20: Proactive Network Modelling
PROACTIVE NETWORK MODELLING Deployment of new high-speed data loggers around the network to support a move to prediction and prevention Loggers provide real-time information directly to control room Provides more detailed information about the health of the network and improves modelling Ident
Slide 21: Critical to Quality Monitoring
CRITICAL TO QUALITY MONITORING Enhancing control of water quality, through effective measurement and control of key stages in the process Implementing best-practice methodologies at major treatment works is improving data management Establishes the key measurement points at each process stage th
Slide 22: Work Mate
WORK MATE New app which ensures our teams have readily accessible instructions to complete critical water quality tasks Ensures our teams do the right work at the right time Easily accessible, clear instructions and recording of actions completed Replaces old operational task lists saving time
Slide 23: Water Quality Analytics
WATER QUALITY ANALYTICS Using the wealth of data in our systems to build analytical capabilities and help analyse the network Aggregating data to help identify areas at high risk of water-quality events Allows us to undertake proactive maintenance at these locations to maintain the health of our
Slide 24: Waste
Waste 23
Slide 25: Proactive Asset Management
PROACTIVE ASSET MANAGEMENT An operational decision management tool to help identify blockages in the network and automate decision making Helps prevent floodings and pollutions Data from 1,000+ loggers combined with historic data and weather information to identify when a sewer is most likely to
Slide 26: Colleague Engagement in ODIs
COLLEAGUE ENGAGEMENT IN ODIS ‘Love Our Network’ app developed to engage our workforce and get their help in looking after our assets Over 4,000 of our employees live and work across our network The app allows colleagues to easily report their observations as they travel around our region Helps
Slide 27: Site Mate
SITE MATE Using new Panasonic devices to help reduce the time to diagnose problems and provide an improved customer experience New software provides supply chain field workers with information about previous jobs completed at the property, helping quickly diagnose problems Using the empathy indi
Slide 28: Intelligent Pumping Station & Catchment Control
INTELLIGENT PUMPING STATION & CATCHMENT CONTROL Network pumping station trial utilising machine learning, automation and remote control to optimise pumping operations Collaborating with our supply chain to create intelligent assets within the network Adopts new sensor technology Uses ‘machine
Slide 29: ST-ORM
ST-ORM Severn Trent Operational Risk Management (ST-ORM): new app-based system allowing easy recording of operational risks identified Allows colleagues to record all operational risks, real- time, wherever they are on mobile devices Enables easier identification and prioritisation of key risks
Slide 30: Effluent Factory
EFFLUENT FACTORY Managing treatment work assets through visualisation, automation and remote control Enhances visualisation of process performance and remote control of assets Enables real-time decision making through sensors and monitors, with dashboards available on mobile devices Helps main
Slide 31: Phosphate Recovery
PHOSPHATE RECOVERY Water treatment technologies to remove phosphorus from sewage Phosphorus is abundant in sewage and is a major pollutant in rivers Tight standards are imposed that we have to meet Adoption of new technologies to remove phosphorus means we are now world leaders in this area, s
Slide 32: Drones
DRONES Utilising new drone technology to inspect our assets Used for applications including asset inspections Leads to savings from absence of scaffolding and minimises health and safety risks Estimated inspection cost savings of £300k per year Currently exploring other uses, such as checkin
Slide 33: Severn Trent
SEVERN TRENT 32