Date post: | 02-Dec-2014 |
Category: |
Documents |
Upload: | remy-mentalist |
View: | 124 times |
Download: | 8 times |
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
TABLE OF CONTENTS
1. ACKNOWLEDGEMENT 4
1.1 Introduction 7
1.2 Objective 7
1.3 Scope 8
2. ICT STRATEGIC PLAN OVERVIEW 9
2.1 Why do we need an ICT Strategic Plan 9
2.1.2 Our Approach 12
3.Stage 1:Analyses Business Environment 13
3.1.1 Corporate Profile 13
3.1.2 Scope 13
3.1.3 Current Market 15
3.2 Develop Agency Overview 15
3.2.1 TNB Vision 16
3.2.2 TNB Mission 16
3.2.3 Business Objectives 16
3.2.4 Main Business Activities 16
3.2.5 Identify agency’s business objectives (corporate and functional) 17
1
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.2.6 Understand agency roles and responsibilities 17
3.2.7 Identify agency’s supplier and customers 20
3.2.8 Identify agency’s strengths and weaknesses 23
3. 2.9 Understand agency visioning and mission statement 24
3.3 Understand the strategic vision and mission of agency 24
3.3.1 Review of Current Business Environment
3.3.2 Corporate strategy 26
3.3.3 Develop an understanding of corporate strategies 27
3.4 Identify corporate business strategies 27
3.4.1 Develop the-cut vision of opportunities and directions 28
3.4.2 Determine issues, assumptions and constraints 28
Definition
3.5 Determine agency value chain 29
3.5.1 Identify Areas of Potential Strategic Advantage 32
3.5.2 Understand current business trends 33
4.Stage 2: Analyze ICT Environment 34
4.1.Perform high-level current ICT environment 35
4.1.1Establish relationship with system and related departments information 36
4.1.4 Assess strategy 38
4.1.5 IT policy (ITP) 42
4.1.6 Asses organization and management 44
4.1.7 Assess application and data 45
2
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.8 Assess technology infrastructure 46
4.1.9 Assess service delivery 47
4.1.10 Recommend Short Term Actions 57
5 . Stage 3: Developing ICT Strategy 60
5.1 Develop Technology Strategy 60
5.1.1 Phase 1: Perform ICT Assessment 61
5.1.2 Task J: review agency’s current CT strategy, plans and budgets 62
5.1.3Identify Technology Trends
5.1.4Define Principles for developing technology strategies 63
5.1.5Determine technology requirement 64
5.1.6 Determine target technology architecture 65
5.1.7Develop ICT Governance Framework 68
5.1.8Compile the ICT governance framework 68
6.Stage 4: Develop Implementation Plan 68
6.1 TNB’s main concerns on planning 68
6.1.1Drivers for developing TNB’s smart grid 69
6.1.2TNB’s Smart Grid Project 69
6.1.3TNB Smart Grid Development Phase 70
Phase 1 TNB smart grid test system: Improving reliability of supply via automation
Phase 2 TNB smart grid test system: Empowering Customers
Phase 2 TNB smart grid test system: Improve Energy & Network Efficiency
3
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Phase 3 TNB smart grid test system: Reducing CO2 emission via renewable energy
7.Conclusion 78
4
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
ACKNOWLEDGEMENT
Bismillahirahmanirrahim,
In the Name of Allah Most Gracious, Most Merciful.
First of all, we are grateful to Allah for allowing us to write and complete this report on our final
project. Many individuals helped us by providing valuable information and assistance leading to
this report completion. Thanks to our lecturer Madame Nik Nordiana Nik Abdul Rahman for the
guidance and his dedication in striving to educate us. He inspires us to do our best.
The study was done in an organization or a TNB also had the experience of all our means
together with the staff of the company to collect the desired data. Assistance given by TNB staff
is greatly appreciated for wanting to take the time to be interviewed. Without their permission,
this project would be a failure. Their contribution is inspiring.
Thank you.
5
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
PROJECT DIRECTOR & PROJECT MANAGER
WORKING COMMITTEE
6
NORHAYATI SHARIF
(PROJECT NETWORK)
MOHAMMAD ALI ALI
(PROJECT MANAGER)
MADAME NIK NORDIANA NIK ABDUL RAHMAN
(PROJECT DIRECTOR)
PARTICIA BILONG
(PROJECT NETWORK)
M.ZIRA HIJAN
(PROJECT ANALYST)
MOHAMMAD ALI ALI
(PROJECT MANAGER)
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
ROLES AND RESPONSIBILITIES
Every team members are important in a particular group. The best group is the
group that has a good Project Manager and responsibilities team members. By
making the group success the important thing is communication which it gives
more understanding between team members to work in peace. What is vital is that
these needs are recognized and explicitly dealt with by the group. Management
must allocate time and resources to this by the group and the group process must
be planned, monitored and reviewed just like any other managed process. Most of
all, Project Manager will always follow up with Madame Nik Nordiana Nik
Abdul Rahman as project directories to monitor and supervised of every risks that
to be arise.
7
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
1.1 INTRODUCTION
This paper is the result of our group’s research on the company that we have selected, namely
Tenaga Nasional Berhad, located at Kuala Selangor. We conducted a study that involves the
company’s core business process; corporate strategies and also the ICT infrastructure are among
the areas that we studied. Thus the result is to come up with an outcome or proposal for a
solution to help enhance TNB’s current ICT.
1.2 OBJECTIVE
The main objective of this paper is to provide a detailed report regarding the tasks and activities
involved in the ICT Strategic Plan for TNB. In the later chapters we will be discussing on the
four (4) stages in ICT strategic planning that is:
Stage 1: Analyze business environment
Stage 2: Analyze ICT environment
Stage 3: Develop ICT strategy
Stage 4: Develop implementation plan
The main outcome of all this writing would be the development of an ICT strategic planning to
be implemented to TNB.
8
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
1.3 SCOPE
This ICT strategic plan is considered a blueprint for TNB for the use of ICT, which is both, cost
effective and aligned with prioritized management and operational needs. This plan would
eventually lead to the identification of strategic initiatives either new or currently being used.
The ICT strategic plan consists of several elements that is in the scope:
Business alignment
o Establishing a communication path, shared understanding technology and
business domains, and to some extent, integrating the business and ICT planning
process.
o Assessing the ICT impact of business imperatives.
Vision
o Establishing the broad targets and ‘products’ set for ICT delivery for today and
several years ahead.
Allocation & Value
o Understanding the value of current spending and ICT resource allocation
o Adjusting the expenditure according to business priorities.
Enabling
o Identifying areas to apply emerging technologies and trends that have the
potential for competitive differentiation or operational benefit.
9
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Governing & Capabilities
o Instituting the proper sourcing and responsibilities of ICT delivered products to
manage across the organizational/ICT boundaries.
o Identifying competencies necessary for delivery.
Action & Measurement
o Creating the valuation model and prioritized imitative portfolio to drive
downstream effort and execution
2.ICT STRATEGIC PLAN OVERVIEW
2.1. Why We Need an ICT Strategic Plan
An ICT strategic plan will address the alignment between strategic operational requirements
of an agency enterprise and the planned and economically justified application of technology
assets. This alignment is best achieved when ICT has been deployed as an enabler of one or
more cross-functional business process. The basic interplay between the business strategy
area of expertise and the ICT strategy area of expertise is the dynamic between business
“requirement push” and “technology pull”.
The “requirement push” is the direct specification of information and processing needs by the
business. However, true competitive advantages are often gained through “technology pull”.
This occurs when the business is made aware of opportunities through insight and
10
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
understanding of the capabilities of technology. Without this insight there may be no
customer self-service, costly information exchange, and a disadvantage in establishing e-
business and e-commerce.
In summary, the ICT strategic plan will help TNB to:
o Apply ICT creatively in order to obtain competitive advantage and support business
strategy.
o Ensure ICT investments are cost-effective.
o Control ICT expenditures.
o Protect existing ICT investments.
o Resolve conflicting demands for limited ICT resources.
o Obtain joint ICT management.
o Avoid ICT ad-hoc projects.
11
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
2.1.2 Our Approach
Analyze Business Environment (Why?)
o
Analyze ICT environment (what?)
Develop ICT strategy (How?)
Dev. Implementation plan (when?)
12
Develop agency overview
Review current biz environment
Identify area of strategic
advantage
Perform ICT assessment
Recommend short-term action
Identify ICT opportunities
Develop technology
strategy
Dev. ICT governance framework
Define target applications
Dev. ICT implementation
road map
Estimate financial implications
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.Stage 1: Analyses Business Environment
3.1 Corporate Profile
Powering the nation for over a decade, Tenaga Nasional Berhad (TNB) is the largest electricity
utility company in Malaysia with estimated RM71.4 billion worth in assets. Committed to
providing service excellence, the Company is listed on the main board of Bursa Malaysia and
employs approximately 28,000 staff to serve a customer base of over seven million in Peninsular
Malaysia & Sabah. Today, TNB continues to lead the effort in fostering economic growth &
social development in the country.
Recognised for its outstanding performance, regionally & globally, TNB's core businesses
comprises of generation, transmission & distribution of electricity. With a total installed
generation capacity of about 12,000 MW (including SESB & Kapar Energy Ventures), TNB is
trusted for delivering reliable & efficient products & services. In Peninsular Malaysia, TNB
contributes to 55 per cent of the total industry capacity through six thermal stations & three
major hydroelectric schemes. In addition, TNB manages & operates the National Grid, a
comprehensive transmission network that is also interconnected to Thailand & Singapore.
Meanwhile, employees' competencies are continuously enhanced through structured programmes
to ensure topmost proficiency, earning TNB remarkable reputation; TNB is ranked 100 from a
list of 250 power companies worldwide for the "Power Company of the Year" in the 2008 Platts
Global Energy Awards. In addition, TNB was also the proud winner for The Prime Minister's
Industry Excellence Award for 2007. This annual national quality award is given to organisations
in the private sector in recognition for their excellent achievement in quality management.
13
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Passionate at what we do, TNB through its subsidiaries, has been successful in other diversified
activities, which include manufacturing transformers, high-voltage switchgears & cables as well
as in the provision of professional consultancy services.
In TNB, they believe that educating & inspiring leaders is fundamental in achieving a brighter
future; hence, Universiti Tenaga Nasional (UNITEN) is aimed at producing outstanding
individuals in various fields. A major part of the Company's corporate social responsibility in
education, sponsorships and contributions, is channeled through the trust foundation – Yayasan
Tenaga Nasional.
As a responsible corporate citizen, TNB also places great emphasis on its engagement with the
community to ensure society gains and benefits from their efforts.
3.1.2 Scope
Provides key company information for business intelligence needs.
The company’s strengths and weaknesses and areas of development or decline are
analyzed. Financial, strategic and operational factors are considered.
The opportunities open to the company are considered and its growth potential assessed.
Competitive or technological threats are highlighted.
The report contains critical company information - business structure and operations, the
company history, major products and services, key competitors, key employees and
executive biographies, different locations and important subsidiaries.
The report provides detailed financial ratios for the past five years as well as interim
ratios for the last four quarters.
Financial ratios include profitability, margins and returns, liquidity and leverage,
financial position and efficiency ratios.
14
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.1.3 Current Market
Tenaga Nasional Berhad provided earnings guidance for the year of fiscal 2011. The company
expects coal prices for the current fiscal year to average more than $100/mt. As under the current
tariff it is only covered up to $85/mt, rising coal prices are expected to weigh down operating
margins. The company has warned the current year would be 'very challenging'.
3.2 Develop Agency Overview
3.2.1 TNB Vision
“To Be Among the Leading Corporations in Energy and Related Businesses Globally”
3.2.2 TNB Mission
“We Are Committed to Excellence in Our Products and Services”
3.2.3 Business Objectives
To learn more about how ICT can help the business in TNB.
To expand the technology of information systems refers to planning how to develop
them.
To analyze the business of the organization.
Client Charter
To set up a dynamic and progressive regulatory system that encourages the development of the
electricity and gas industry.
15
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
To carry out ongoing services, electricity and gas supply regulatory that protects the
consumers interest.
To carry out effective legal enforcement.
To provide efficient and gracious regulatory services through registration, licensing,
permit/certificate approval and endorsement letter processing procedures.
3.2.4 Main Business Activities
Core Business
Generation Division
Entrusted to develop, operate and maintain TNB’s portfolio of power generating units.
This division has thermal generation assets and major hydro-generation schemes in
Peninsula Malaysia one IPP operating in Pakistan.
Transmission Division
Manages and operates the 132 kV, 275 kV and 500 kV transmission network of TNB
known as the National Grid. Main activities of include strategy formulation, system
planning, engineering, project management, control operations, maintenance, way leave
management and more.
Distribution Division
Entrusted to conduct two value chain business activities on behalf of TNB – Distribution
Network Operations & Electricity Retail Operations.
16
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.2.5 Identify agency’s business objectives ( corporate and functional )
Corporate in CARE Program
Corporate Account Relationship Enhancement Programme, also known as CARE
programme, was initiated by TNB’s Customer Service & Marketing Department since 1
December 2007. The programme is targeted to form better relationship with TNB’s corporate
clients.
CARE programme adopts the ‘single point of contact’ concept where a dedicated executive is
appointed to manage the corporate accounts. The 8 segments of corporate customers currently
identified to be under the CARE programme are as follows:
1. Banking
2. Retail
3. Utilities
4. Fast Food Chain
5. Telecommunications
6. Hotels
7. Transport
8. Petroleum
Objectives of the CARE Programme
To create a closer two-way relationship between TNB and the corporate clients for better
customer experience.
17
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
To maintain customer’s loyalty with TNB through the continuous effort that focuses on
quality customer service characteristics such as reliability, assurance and responsive
personalized service.
To gain feedback from corporate on TNB’s services, to monitor and to take effective
action in order to fulfill the clients needs.
To promote and educate clients on their convenient services e.g. TNB’s Bulk Payment
System.
Functional in CARE Program
Designing a successful exhibition stand involved more than just aesthetically pleasing to the eye.
The functional while maintaining the clients corporate image and ultimately achieving the end
objective.
Their needs analysis has produced numerous creative and often original custom-made designs
which in return the expertise towards the work. It is also enhances the company capability to
handle project of different standards, from medium to international scale. The professionalism
and dedication in their work has a high rating of success in the past ventures.
3.2.6 Understand agency roles and responsibilities
What the Developer should do
1. Submit application form with the relevant documents required by TNB.
2. Sign SLA with TNB (provided all documents are in order).
3. Pay connection charges upon notification from TNB within agreed timeframe.
4. Substation to be build and completed 4 months prior to electricity supply ready for
connection.
18
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
What TNB should do
1. Sign SLA with developer.
2. Issue Notice of Connection Charges within 2 months after SLA Agreement is signed.
3. Commence works no later 4 months prior to electricity supply ready for connection.
Cos-The cost incurred is only the stamp duty. The Agreement should be stamped after execution
by both parties and each party should bear its own stamp duty, currently at RM10 per copy.
19
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Document the executive management view of the agent
20
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.2.7 Identify agency’s supplier and customers
Supplier
Managing the Supply Chain effectively has become ever more critical in today’s very
competitive marketplace. For more than 60 years, TNB has been powering the nation's progress
and recognizes that success in this endeavor is supported by a strong supplier base. Without
strong supplier relationships, especially in these challenging times, neither party will succeed.
By working together, TNB and its suppliers can both continue to grow in the future. Thus, we
believe it is critical that our suppliers and contractors have a thorough understanding both of our
business and our expectations of their performance.
South Africa is among the source of new coal supply for Tenaga Nasional Bhd to ease the
current shortage, following the floods in Queensland, Australia.
Queensland has served as TNB’s traditional supply market.
21
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Client
Malaysia
Amoco Chemical (M) Sdn. Bhd.
Asean Bintulu Fertilizer (ABF) Sdn. Bhd.
BASF (M) Sdn. Bhd.
Central Sugars Refinery Sdn. Bhd.
Conoco Malaysia Sdn. Bhd.
CUF Karteh, Teknik Janakuasa Sdn. Bhd.
Eastman Chemical (M) Sdn. Bhd.
Ethylene / Polyethylene (M) Sdn. Bhd.
Gas District Cooling (M) Sdn. Bhd.
Malaysia LNG Tiga Sdn. Bhd.
Malaysia Newsprint Industries Sdn. Bhd.
Malaysia Shipyard & Engineering Sdn. Bhd.
MMC Oil & Gas Engineering Sdn. Bhd.
Negeri Sembilan Cement Ind.
Nippon Oil Exploration (M)Ltd.
Optimal Chemicals (M) Sdn. Bhd.
PETRONAS Ammonia Sdn. Bhd.
PETRONAS Carigali Sdn. Bhd. KLCC, Miri, Sabah, Terengganu, Kerteh.
PETRONAS Methonal (Labuan) Sdn. Bhd.
PETRONAS Penapisan (Melaka) Sdn. Bhd.
PETRONAS Penapisan (Terengganu) Sdn. Bhd.
PETRONAS Penapisan (Melaka) Sdn. Bhd.
PETRONAS Penapisan (Terengganu) Sdn. Bhd.
PETRONAS Research & Scientific Services.
Sabah Shell Petroleum Sdn. Bhd.
Tenaga Nasional Berhad Generation (TNB) Sdn. Bhd. JOR, Paka, Serdang, Tunku Jaafar
PD.
22
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
YTL Power Services Sdn. Bhd.
UAE
ABU DHABI Gas Liquefaction Company (ADGAS).
DUBAI Natural Gas Co Ltd (DUGAS).
WOOD Group Middle East Ltd.
MJB International Ltd.
ABU DHABI National Oil Company (ADNOC).
Saudi Arabia
GAS ARABIAN Services LLC.
SAUDI Petrochemical Company (SADAF).
SAUDI Arabian Fertilizer Co (SAFCO).
Qatar
QATAR Gas LNG WLL.
QATAR Chemical Company Ltd (QCHEM).
QATAR Petroleum WLL.
PETROSERV Limited Ltd.
Bahrain
Bahrain Petroleum International Co (BPIC).
Oman
Oman LNG.
23
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Indonesia
PT Pertamina.
PT Vico Indonesia.
PE Indonesia Power.
PE Drupadi Agung Lestari.
PE Taekyung Jaya Indonesia.
3.2.8 Identify agency’s strengths and weaknesses
Strengths
Currently, the TNB Group has a complete power supply system, including the National
Grid which is energized at 132, 275 and 500 kV. The National Grid is linked via 132 kV
HVAC and 300 kV HVDC interconnection to Thailand and 230 kV cables to Singapore.
TNB, through its subsidiaries, is also involved in the manufacturing of transformer, high
voltage switchgears and cables the provider of professional consultancy services,
architectural, civil and electrical engineering works and services, repair and maintenance
services and fuel undertakes research and development, property development, and
project management services.
TNB also offers higher education through its university – University Tenaga Nasional
(uniten).
Weaknesses
However, TNB posted an increase in operating expenses by 7.0 percent to RM 7.599
billion, mainly due to an increase in fuel cost as a result of higher coal prices.
It means TNB expense depends on the fuel price. Higher price of fuel mean that coal
price is rising and will affect their expense.
24
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.2.9 Understand agency visioning and mission statement
To ensure the Company’s continued service excellence and to support its strategic vision of
global leadership, employee competencies are continuously enhanced through structured
programmes. As a responsible corporate citizen, TNB places great emphasis on undertaking CSR
best practices that positively impact all its stakeholders as well as the environment in which it
operates, in line with the nation-building agenda. Under the PINTAR Programme, TNB has
adopted 24 schools nationwide and implemented various PINTAR activities, the most significant
being the ‘TNB Thunderbolt Hockey Clinic’ that gives primary students the opportunity to hone
their skills in the fast-paced sport.
3.3 Understand the strategic vision and mission of agency
Strategic positioning
This company profile is a premium company information product offering an unmatched depth
and breadth of content. It analyzes the strategic positioning of the company – how the company
has evolved and how it has been performing over the years.
Structure of the organization, partnerships, mergers & acquisitions and recent
developments have been examined.
Business segments of the company have been explored along with analysis of key
products and services.
Competitive positioning of the company has been evaluated in terms of sales,
profitability and stock performance, as compared to its competitors.
25
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Timeline
Typical time frame for connection of supply within 18months
ICT Implications
As the country's biggest energy provider, Tenaga Nasional Berhad (TNB) spends millions of
ringgit in information and communications technology (ICT) solutions to support its business
requirements.
Looking at the size of its ICT implementation and to ensure that its staff can benefit fully from
technology, TNB is taking training very seriously, especially in ICT.
In the enterprise resource planning (ERP) space alone, the company has spent a total of RM32
million on ERP solutions from SAP, with RM6.2 million on licences, which is now used by
5,200 of its staff throughout the country.
Identify agency targets
26
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
The recent run up on the share price is hardly surprising, notwithstanding the fact that it is one of
the top laggards. Fundamental issues that are seen as main drivers for the share price are:
A much improved demand growth
An upside surprise in forex gains
Relatively low foreign shareholding
3.3.1 Review of Current Business Environment
3.3.2 Corporate strategy
TNB believes that education can turn dreams into realities. TNB has a very strong tradition in
producing world-class scholars and researchers through its education and scholarship
programmes. Many of the current business leaders in the country are TNB scholars and have
enjoyed the education provided by the Company under its scholarship programmes.
Over the years, TNB has strengthened this role and is now actively involved in not only
providing scholarships, but also in providing education through Universiti Tenaga Nasional
(UNITEN) and Institut Latihan Sultan Ahmad Shah (ILSAS).
As an institute of higher learning, UNITEN has an immense and important responsibility in
helping the Government produce well rounded individuals. The University also gives primary
focus on research and development activities which encourage and develop the culture of
innovation and competition among the academic staff as well as its students. Strategic
cooperation between UNITEN and the industrial sector provides access and opportunities for
students and academic staff to master knowledge as well as scientific and technical expertise that
are relevant with industrial and market place needs.
3.3.3 Develop an understanding of corporate strategies
27
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.4 Identify corporate business strategies
Marketing Strategy
TNB Consulting Group understands that even the most brilliantly developed program, initiative,
or strategy cannot stand on its own. Key to a successful execution is a professionally integrated
plan driven by stakeholder input. TNB has found that to create the image and brand desired from
both a personal or company perspective, there may need to be an integration of a variety of
venues to create IMPACT (Integrating Marketing Programs and Communication Techniques).
Resource Strategy
The federation of Malaysian Manufactures (FMM) strongly supports the Governments move to
review TNB and the Independent Power Producers (IPPs) tie-ups. The Government initiative to
introduce an alternative electricity pricing mechanism in the form of a power exchange to
circumvent tariff increase is timely and commendable. These strategies should be undertaken
first before considering an increase in electricity tariff rates.
3.4.1 Develop the-cut vision of opportunities and directions
Establish criteria for decision-making
Policies and procedures
Rules and regulations have been established for guidance and compliance by all
suppliers/contractors. Penalties established for violations of the said rules and regulations are not
meant to be punitive but corrective.
28
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
TNB shall take the appropriate measures against all erring suppliers in order to keep the integrity
of its purchasing system and to maintain a pool of competent suppliers/contractors.
3.4.2 Determine issues, assumptions and constraints
Prime Program
Background
This program is intended to improve the quality of TNB customer services for consumers who
contribute millions of ringgit as their monthly electricity consumption.
With an aim to promote good bilateral relationship between consumers and TNB, it is a program
where users are encouraged to interact directly with TNB for any problems or issues faced.
The focus of this program has been developed further, not only for business connections but also
to address power quality issues, which is a common issue amongst TNB PRIME customers.
Definition
PRIME customers are those who are listed in the Top 1000 Large Power Consumers (LPC)
throughout the country.
Activity
Among the activities carried out under the Prime Programme are as follow:
Special programmes are developed from time to time and announced via email for
effective dissemination of information.
Regular visits to PRIME customers' premises by TNB State General Manager, Site
Manager and Branch Manager
Annual dialogue session conducted to foster better relationship between TNB with
PRIME customers and for TNB to better understand local issues and problems faced for
appropriate action
29
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3.5 Determine agency value chain
Value Chain Analysis
Value Chain Analysis describes the activities that take place in a business and relates them to an
analysis of the competitive strength of the business. Influential work by Michael Porter
suggested that the activities of a business could be grouped under two headings:
Primary Activities - those that are directly concerned with creating and delivering a
product (e.g. TNB provide electrical service and component assembly)
Support Activities - which whilst they are not directly involved in production, may increase
effectiveness or efficiency (e.g. human resource management). It is rare for a business to
undertake all primary and support activities.
The primary value chain activities are:
Primary Activity Description
Inbound logistics All those activities concerned with receiving and storing externally
sourced materials
Operations The manufacture of products and services - the way in which
resource inputs (e.g. materials) are converted to outputs (e.g. products)
Outbound logistics All those activities associated with getting finished goods and services
to buyers
30
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Marketing and sales Essentially an information activity - informing buyers and consumers
about products and services (benefits, use, price etc.)
Service All those activities associated with maintaining product performance
after the product has been sold
These primary activities are supported by:
Secondary Activity Description
Procurement Purchasing inputs such as materials, supplies and equipment.
Human Resource
Management
Employee recruiting, hiring, training, development and compensation.
Technology
Development
Technologies to support value-creating activities.
Infrastructure Organizational structure, control systems, company culture, etc.
Steps in Value Chain
Analysis Value chain analysis can be broken down into a three sequential steps:
1) Break down a market/organization into its key activities under each of the major headings
in the model.
2) Assess the potential for adding value via cost advantage or differentiation, or identify
current activities where a business appears to be at a competitive disadvantage.
31
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
3) Determine strategies built around focusing on activities where competitive advantage can
be sustained.
Cost advantage and Differentiation in Value Chain Analysis
The value chain model is a useful analysis tool for defining a firm’s core competencies and the
activities in which it can pursue a competitive advantage as follows:
Cost advantage: by better understanding costs and squeezing them out of the value-
adding activities.
Differentiation: by focusing on those activities associated with core competencies and
capabilities in order to perform them better then do competitors.
Technology and the Value Chain
Various technologies are used in both primary value activities and support activities:
Inbound Logistics Technologies
Transportation
Material handling
Operations Technologies
Process
Materials
Outbound Logistics Technologies
Packaging
Communication
Marketing & Sales Technologies
32
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Media
Audio/video
Service Technologies
Testing
Communications
Outsourcing Value Chain Activities
To decide which activities to outsource, managers must understand the infrastructure strengths
and weaknesses in each activity. Managers may consider the following when selecting activities
to outsource:
Whether the activity can be performed cheaper or better by suppliers.
Whether the activity is one of the infrastructure core competencies from which steams a cost
advantage or product differentiation.
Example:
In TNB, managers need to know all about the activities of the organization to ensure that all
management can be performed easily and regularly. With this, all parties work together and
communicate to run their business with ease and have a good business relationship.
3.5.1 Identify Areas of Potential Strategic Advantage
3.5.2 Understand current business trends
33
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Emerging Markets Direct (EMD) released their latest Malaysia Electricity Industry Report. The
electricity, gas and water industry in Malaysia contributed approximately RM17.71 billion
(2.61%) to the country's total GDP in 2009. Over the years, the annual growth rate of Malaysia
electricity generation has declined.
Malaysia electricity market was affected by the global economic downturn and thus a slowdown
in the domestic market activity particularly in the first six months of 2009. In this regard,
total electricity sales saw a decrease of 1.35% in 2009. Talking about electric generation
capacity, Malaysia had a capacity of 21,817MW, which marked an increase of 10.6% as
compared with 2008. The electricity generation in the Peninsular Malaysia was approximately
89.53% of the country's total electricity generation in 2008. Sarawak and Sabah, the minority
electricity generators, accounted for 6.06% and 4.41 % of the total electricity generation
respectively.
Owing to the escalating gas and coal prices, the Malaysian government announced the
restructuring of electricity tariff in which less than half of the domestic households would be
affected by the new tariffs as long as they maintain their usage rates. In less than one year time,
the Malaysian government revised the tariff plan again to reflect the changes in fuel prices and
support the government's efforts to introduce economic stimulus package.
4.Stage 2 : Analyze ICT Environment
34
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Information management is critical to ensure that data is easily stored, processed
and systematically achieved. To ensure that information management can be more effective,
Tenaga Nasional Berhad (TNB) has used a number of information systems to facilitate
management. This information system consists of standalone and online information systems.
This information system consists of an information system involving its own employees,
suppliers and consumers.
Information system is a combination of institutional resources, hardware,
software, network communications and data collection, exchange and disseminates information
in an organization. A computer-based information system (CBIS) is divided into several types of
Transaction Information Systems, Management Information Systems, Decision Support Systems,
Executive Information Systems, Office Automation Systems and Expert Systems.
The use of ICT (Information and Communication Technology) in the
management of the organization to assist in managing the organization effectively. Effective
management information system is critical to ensure the smooth management of all information.
Information management involves many parties such as staff, suppliers and consumers. Effective
information management will facilitate the administrative management.
Our group has chosen an organization Tenaga Nasional Berhad, located at Kuala
Selangor, to get information about the study of analyzed ICT environment in the organization.
Collection of this information has been assisted by a staff of companies involved in the
management of information systems in the organization.
4.1.1Perform ICT assessment
35
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Among the list of information systems used in TNB, our group has agreed to
choose Consumer Services System (FDS) or known as eCIBS (Enhanced Customer
Information Billing System) as an information system studied in greater depth of
functionality, integration with information systems others in the organization and the
benefits of the information system. We chose the Consumer Services System (FDS) is
because this system involves internal employees and consumers.
Objective (mission) at TNB’s eCIBS (Enhanced Customer Information Billing System)
Good and important systems in the organization of TNB.
To provide staff can check the user's account through the system using the
identity card number or set number of users.
To provide facilities to receive any complaints about the services provided
both from individual users, the press and also from the leaders.
Providing electricity bill payment service facility at the counter and online
payments (Is a system operated on-line (online).
Easy to calculation of the total bill paid by users, giving a rebate of 5% at the
end of the year, the event of any of the rates of the meter reader, or one
calculation in terms of the bill to be paid, the system will debit or credit the
consumer bill of the month the next.
Can receive any complaints relating to services offered.
This system can be accessed at any of the information for all users in
Malaysia.
Not only involve internal users, but also involve external users.
Only employees who have the only password that can change any data that is
required
Counter clerks and credit control clerk can access the system.
36
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.2 Integration with Other Information Systems
ECIBS system is not only online system that can be used anywhere by TNB staff, but this system
also has the integration with other systems that have their own interests.
This system has a relationship with the system at the point of payment. When a data entry clerk
payments that the consumer has paid the bills, the system will automatically detect and update
the user's account. With fast and easy access, employees can save time to enter the same data in
different systems.
In addition, this eCIBS system also has relationships with several local banks, namely Maybank
and CIMB bank. An established relationship is to facilitate the users to pay their bills online.
Maybank2U.com has been offering online bill payment service. Thus, the Maybank and TNB
system used has a relationship to an online bill payment can be identified and can update the
accounts of users who pay online. Similarly, the CIMB bank has online bill payment service
using CIMB-clicks. Bill payment will be deducted by the user account in any bank that used to
make payments. The system is also applied TPS (Transaction Processing System).
In addition, eCIBS also have a relationship or link with the national accountants. However, the
national accountants can only be entered only eCIBS and print bills. The national accountants
have no power to change any data in this system. Next the system in relation to the HHC (Hand
Held Computer) which is carried by meter readers TNB employees assigned to read the electric
meter from house to house.
Benefits to the Information Systems Organization
37
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
-Customer
At the customer has to register and use electricity, CIBS provides a rebate of 5% when the end of
the year from the deposit in cash if the customer does not have arrears of payment every month.
If the calculation of one meter reader or mis-priced, the system will debit or credit back on
consumer bills the following month.
-Organization
Benefits of this system to the organization eCIBS hand, is in terms of saving time for staff to
enter the same data in different systems. With the availability of user data in this eCIBS, other
systems can get the same data by integrating the eCIBS.
In addition, this eCIBS can also help the company in terms of improvements in case of any
problems that occur with the complaints system. All complaints or comments will be evaluated
and taken into consideration so that they can be fixed and will indirectly improve the services
offered to consumers.
4.1.3 Assess strategy
38
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
System Acquisition Process
1994 Customer Application Program Package (CAPP)
Before TNB Kuala Selangor eCIBS system, they used a local system
that was developed by a group of employees of Customer Application
Package Program (CAPP) prior to the year 1994. CAPP is a result of its own
innovation TNB staff who have skills in developing the system. CAPP is one
of the standalone systems.
CAPP said not to have any problems during use. But the problem is that the
CAPP system is not recognized by top management as it is said is not
equivalent to a management system used by the state and the world because
when the business has been affected by vendor from Germany who promote
the so-called system better and better. So, to compete with other countries, the
TNB has purchased from the vendor eCIBS from Germany.
1
1995
Enhanced Customer Information Billing System (eCIBS)
eCIBS first used in 1995. This system imported from Germany. At
first, this system cannot be used in Malaysia as inappropriate. Used in
different ways and also to introduce a system that is different from that
never used the system before. After that, the system has been modified or
upgraded and changed (convert) as appropriate in Malaysia and then can be
used in Malaysia. All data were obtained from the CAPP when combined
(merge) with the relevant parts of CAPP to obtain the desired information.
39
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
eCIBS uses a serial number as the number of users for which this
number sequentially to each other than with a CAPP number of user
accounts by 12-digit. 4 digits for station identification, the next digit to the
introduction of two districts, two digits for the introduction of the next and
last 4 digits for the location.
So far the use eCIBS until today, this system has not experienced
significant problems as intercepted by hackers and no problems with Y2K.
Common problems are not logged on. But can be solved by the ICT. If there are
any problems in the system cannot be repaired by the ICT, the employee will
make a call to the headquarters of Kuala Lumpur. Workers from the head office to
come and solve the problems faced to finish.
Implementation
eCIBS system the most easy to use in applying for electricity consumers.
Applicants need to complete certain forms to apply. Next the staff will enter data into the
eCIBS. eCIBS will generate the number of users and accounts of the applicant to
applicant. Then the applicant must wait for workers to install cables and electrical
connections to the house next.
40
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
When has completed one month, there are workers coming from house to house to
calculate the rate of energy use and calculating the amount to be paid by the user. Employees
will take a hand tool known as the Hand Held Computer (HHC). TNB employees will be
pressing numbers at home and take meter readings of electricity rates last. The data obtained will
be stored in the HHC. Next HHC will be processing the data is entered as calculating the amount
of electricity usage for the house, calculate the amount to be paid and print the bills. When
completed, the employee will return to the office and downloads the data stored directly in the
eCIBS. eCIBS will detect and automatically update the user account based on new information
obtained through the HHC.
To calculate the total consumption of large power users such as factories, TNB
workers does not go to the factory to bring HHC for fear dangerous, but using a more efficient
system. The system uses satellites to determine the rate of energy use in factories. Once the rates
of use, data will continue to enter the eCIBS. This occurs because the presence of eCIBS
integration with satellite communications systems. This integration allows eCIBS know the data
user with the distance.
HELD HAND COMPUTER (HHC)
41
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.4 IT policy (ITP)
IT Policy applicable to all TNB employees
The Dos and DON’Ts.
42
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
TNB I.T. Policy covers:
Assets Classification and Control
IT Security
Physical Access & Environmental Control
Server Management
Network Management
System Access Control
Password Policy
Internet Access
Software License
Electronic Mail (e-Mail)
Application Development & Production
Disaster Recovery Planning
4.1.5 Acceptable use policy (AUP)
Under the AUP, all employees are PROHIBITED from:
Unauthorized distribution or sharing or revealing of company’s confidential
information of any kind to third parties.
Sending or forwarding spam, hoax, or chain emails or submitting company email
address to third parties (e.g. online contest, or survey) without authorization.
4.1.6 Assess organization and management
- TNB Organization Chart
43
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
44
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
45
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.7 Assess application and data
The following figure shows some examples of applications within TNB’s business life-cycle.
46
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.8 Assess technology infrastructure at TNB
47
WirelessSMS
VoicePABX/IVR/CTI/ACD
Mail/ Fax/ Email
WebeServices /
PortalTNB
CUSTOMER INTERACTION PLATFORMS
SMP
TOMS
TNB Contact Centre
Internet
PRIME
IntranetCUSTOMER INTERACTION CHANNELS
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.9 Assess service delivery
TNB branches and service centers
Alor Setar, Sg Petani, Kulim
Penang, Prai, Juru
Taiping, Ipoh
Rawang, Sg Choh, Glenmarie, Shah Alam, Subang Jaya, Klang, Petaling Jaya,
Puchong, Kajang, Sabak, Bernam
Balakong, Cheras, Keramat, Damansara Damai, Kota Damansara, Desa Pandan,
Jln Ipoh, Kepong Putrajaya
Seremban
Melaka
Johor Bharu, Kluang, Muar, Batu Pahat
Kota Bharu
Kuala Terengganu
Kuantan
Kota Kinabalu, Keningau
Kuching
eCIBS Support at TNB
eCIBS help of saving time for staff to enter the same data in different systems.
With the availability of user data in this eCIBS, other systems can get the same
data by integrating the eCIBS.
eCIBS can also help the company in terms of improvements in case of any
problems that occur with the complaints system. All complaints or comments will
48
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
be evaluated and taken into consideration so that they can be fixed and will
indirectly improve the services offered to consumers.
important in the calculation of the total electrical energy consumption and
computing the total payment to be paid by the customer.
This system can be accessed by any branch but cannot be changed because of this
system, only employees who have only password that can change any data
required. Employees can access as well as counter clerks credit control clerk.
Employees can check through the system user accounts using the identity card
number or set number of users. Among the information stored in this system as a
column number, the collateral given, arrears and more.
This system has received any complaints about the services provided either from
individual users, the press and also from the leaders.
Human Resource Information System (HRIS) at TNB
The staff should be skilled in using the system set so as not to interfere with the daily
business of this company.
each new employee using the system, will be given training and courses use the system.
Staff will also be supplied with the module guide system to be used.
Functions of HRIS section
Updating of employee records
Employee’ data are recorded in the system for payment of salary and reference
purposes.
Training
49
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
HRIS will also provide each new employee using the system, will be given
training and courses use the system.
Staff will also be supplied with the module guide system to be used.
List of TNB System
During the interviews conducted to obtain information about the company's system,
we have obtained a list of systems used by the queries. Here is a list of information systems
used in TNB Kuala Selangor:
Wiring System
Systems Engineering
Administration System (EHRMS)
Financial Management System (ERMS)
Consumer Services System (FDS)
Vehicle System (perfecto)
E-application
CMS – An online Customer Management System to consolidate and improve the
monitoring and handling of all customer service requests and complaints related to ICT
products and services.
SMP – Sistem Maklumbalas Pelanggan (SMP) is a centralized feedback system developed to assist TNB Divisions in monitoring feedback and complaints received via multiple channels from customers.
50
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
CGIS – The Corporate Geospatial Information System (CGIS) is now ongoing, covering the scope of Transmission and Distribution electrical assets, TNB’s fiber optic network, property management, security and logistics. Its objectives are to create the most accessible, coordinated, efficient, advanced and complete company-wide geospatial information system to improve efficiency and reduce operational costs via intelligent geospatial analysis.
Distribution Network Information Management(DNIM)
In eCIBS also, there is a system that works complaint system to receive complaints
from the leaders, customers, and also from the press. Each complaint received either by
email, mail, telephone, or through newspapers will be recorded in the system for
improvement and revision at each end of the year. Staff are responsible for return every
complaint received either emails, letters, phone calls and many more. Usually there are
clerks who will always be aware of any particular complaint online. If there are
complaints, then the clerk will be connecting it to the person responsible for handling the
complaint.
For complaints about the press is, there is a special unit that handles
complaints about this release. This special unit will read and record customer complaints
into the system. This special unit will answer the complaint by the same newspaper. This
system applied the CRM (Customer Relationship Management) in the category of
customer facing applications where customers can interact with the organization either
on-line, phone calls, letters or newspaper. In addition, this system also contains a
Transaction System which acts as follows:
• Customer Service
• Billing and meter
• payment transactions
• Temporary logout
51
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
• Cancellation received
• Closure of the day
• Changing the password
Example: eCIBS Login system
52
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
53
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
54
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
55
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
56
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
57
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
58
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
59
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
60
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Print Consumer Bills
61
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
4.1.10 Recommend Short Term Actions
We recommend that they enhance or upgrade the current e-business system so that it
can cater or the back-end users. Instead of separating the standalone & online applications,
why not integrate the available programs/web applications into one single streamlined
application system.TNB can implement them in one of their departments internally first, to
observe the effective and efficiency of the new integrated web-based customer application
system.
Example: use Application servers. (The architecture of typical application server)
Application servers provide for application logic sharing and processing,and for connections to
back-end resources. It also provide user interface development mechanisms. In addition, they
usually provide mechanisms to deploy the application to the Web platform.
Databases
Mainframe
Web Server
Third party software and middleware
Firewall
Application platform Core Applications
Internet HTML Intranet Java C++
62
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Extranet HTML Java
5.Stage 3 : Developing ICT Strategy
5.1. Develop Technology Strategy
The need to perverse and enhance current ICT investments could be a major constraining factor in developing an agency’s ICT strategy. Information about the current ICT environment needs to be gathered and assessed. The objectives of this stage are to:
Identify the agencies current ICT readiness and potential in supporting the government through ICT activities.
Identify the current progress of the initiatives; Perform ICT assessment to measure ICT usage and effectiveness of agency
Information and communication technologies (ICTs) can improve environmental performance and address climate change across the economy. The biggest gains for smarter environmental and economic strategies and applications are in power generation and distribution, buildings and transportation – three areas which contribute to the bulk of greenhouse gases. Further environmental benefits of ICT applications are evident in areas such as water management, biodiversity protection, pollution reduction.
ICT innovation is a key element to spur green growth in the economic crisis and recovery. However, OECD work suggests that most government and business initiatives are still following business-as-usual paths and do not sufficiently tap the sector’s innovation potential.
This stage involves a series of assessment on the current ICT environment that are based on 5 major groups as shown below:
63
System Strategy
People Delivery
Technology
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Figure 1: The 5 areas of ICT assessment
Strategy: examines what ICT strategies are in place how effectively they support the business and how the business manages and controls ICT.
Delivery: examines how resources are organized, monitored and controlled to deliver ICT services and ICT projects.
People: examines how ICT human resources are organized and managed in ICT and examines the skills and attitudes of users and ICT staff.
Technology: examines hoe technology trends are identified the effectiveness of the technology architecture and how technology is deployed.
System: examines the business functions that are supported by ICT applications the extent of coverage, the gaps that exist in the information provided by these systems and seeks to identify any unsatisfied demand that may exist.
5.1.1 Phase 1: Perform ICT Assessment
An ICT assessment is a process of identifying existing applications, hardware and other technology architecture components that are exist in the ICT environment. The purpose of this phase is to assess the key components of the current ICT environment in determining the ICT capabilities to meet the current and the future needs of the business. This analysis will be key to identifying short term and long-term opportunities to improve the ICT environment and used in the gap analysis and identification of strategic innovative.
There are four aspects of attainment in ICT at key stages 1 and 2:
1. Finding things out
2. Developing ideas and making things happen
3. Exchanging and sharing information
4. Reviewing, modifying and evaluating work as it progresses.
The level descriptions in ICT capability show progression in these four aspects in terms of the
knowledge, skills and understanding set out in the program of study.
Performing ICT assessment requires information gathering from reviewing existing documentation, system investigation and interviewing agency’s staff at management and operational level. Templates should be provided to obtain input from information gathering.
64
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Various methods can be used to gather information. One of the possible information gathering techniques is questionnaire. The response can be formed into an application assessment spreadsheet that provides an average for each question in the surveys. These averages are the basis for the analysis. Analysis results to look for patterns in the responses of satisfaction or business and technical issues.
5.1.2 Task J: review agency’s current CT strategy, plans and budgets
Task will be covering the strategy dimension of the assessment. Main activities include:
Understand the ICT and business strategy alignment Understanding policies and guidelines for ICT management and implementation that
have been put in place for agency to operate in an ICT environment Reviewing past year actual budget and actual year forecast budget for ICT infrastructure
and application development Prioritizing strategic initiatives and prepare high-level cost estimates for related projects
for next year and the duration of the project
5.1.3 Identify Technology Trends
Technology Trends
- The continued demands by our customers for quality and effective ICT solutions to
meet their business needs have created the following key challenges to ICT Division:-
Fulfilling customer expectations – It has become increasingly challenging to
develop and manage projects which not only meet customer requirements but are
delivered on time and within budget. Several initiatives which include Strategic
Sourcing, Out-Tasking and standards such as SOA (Service Oriented
Architecture), PMI Framework (Project Management Institute), ITIL (IT
Infrastructure Library), EA (Enterprise Architecture), and implementation of ISO
65
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
20000 for service delivery are intended to improve the building of quality
applications at a lower cost and in faster completion time.
Implication On Agency’s Environment
- Value creation – To ensure that the systems implemented by the ICT Division are
contributing directly to TNB’s business needs, it is necessary to maintain alignment
with and focus on TNB’s key strategic objectives. This is being enhanced by
initiatives like SCM (Supply Chain Management) and monitored through CMS
(Customer Management System) and EPM (Enterprise Project Management).
- Governance and Security – It is equally important for end-users to abide by TNB’s
policies and guidelines when using ICT’s products and services. To manage this, the
GRC (Governance Risk & Compliance) project is being embarked to improve the
monitoring and control of user access and role management to TNB’s enterprise
systems.
5.1.4 Define Principles for developing technology strategies
Revisit High Level Technology Issue
- Enhancements to TNB’s Digital Telecommunication Network & Teleprotection
System project include replacing old fibre optic cables on transmission lines,
upgrading analog PLC system to new digital system.
- INMS project (Integrated Network Management System) is to integrate several
individual network management systems of the NOC (National Operations Centre)
into a single system
66
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Implication On Agency’s Environment
- Providing alternative routes to improve the reliability, and improving fiber capacity
and alleviate bottle necks within the existing fiber optics network.
- Provide enhanced equipment, network and service management functions such as
alarm management, fault management, remote configuration, and telecommunication
database management. This will result in improved service availability, better
resource utilization and enhanced customer service.
5.1.5 Determine technology requirement
Identify Technology component determinants
- PLC
- Fiber Optic
- Database
- CPU Unit
- Telecommunication Network
Identify High Level requirement of component
High capacity database to able to handle the required data
Fast telecommunication network
High End CPU Unit
5.1.6 Determine target technology architecture
Consider key business and technical drivers and high-level processing requirements
67
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
- Use the current provider and vendor since it’s only to enhance the current ICT
structure.
Derive high-level technology architecture
- The agency need to make sure that these enhance will integrate with the current
system
- The agency also need to make sure the staff acquired the skill to handle the
enhancement. These can be achieved through training
Formulate Technology Strategies
Consolidate the findings and recommendations
- The agency need to think how to handle the problems of security especially regarding
the cable and also distribution places
- With the current technology, TNB can make use of the PLC and also network
telecommunication to enhance their security not only in the system but also outside of
it.
- TNB just need a little adjustment in the hardware to be able to deal with more things.
Develop ICT Governance Framework
ICT organisation and management issues
Understand the agency’s culture
- Committed to contribute effectively to the business goals and growth of TNB through
value creation, service and efficiency improvement, organisation excellence and
diversification.
68
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Determine its impact on the ICT strategies
- Efforts in transforming ICT Division to a more customer-centric organisation in
recent years have brought positive benefits to its many customers. Monthly surveys
generated by its Customer Management System (CMS) have shown a consistent score
of over 9.0.
- To delight TNB’s customers, ICT Division had revamped the TNB Corporate
Website that improved communication and engagement with its stakeholders. TNB’s
own Intranet called “Livewire” had been improved to provide greater interactivity
and useful staff-related information.
- The continued upgrading of computing infrastructure and network communication
equipment has resulted in a very reliable and accessible system. Key enterprise
applications such as eCIBS (Customer Information Billing System) and ERMS
(Enterprise Resource Management System) were made available for over 99.9%
throughout the year.
Identify ICT services and skills required
Determine the required management, technical and functional skills and services
- TNB need a skilled management to be able in handling many of their staff
- ICT Department need a knowledgeable and skilful workers to make sure ICT
infrastructure are well maintained.
- A good hardware and software are also needed so that the ICT can function correctly
with the TNB goal
69
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
5.1.7 Develop ICT governance framework
Identify and resolve differences between current and target ICT organisation/ management
• There are less protection in the distribution part and outside properties of TNB
• There is low security measurement to handle from the outside threats of the
agency
• Due to the large scale of organization, TNB are hard to handle for certain aspects
• The amount of customer TNB have is also effect the growth of TNB.
Identify necessary supporting organisation and management practices
• There should be a counter measure for the outside threats such as stolen cables
and also disturbance in TNB distributor.
• The ICT Team should be more alert in handling threats and demand.
• Make collaboration with other parties such as police force to handle the outside
threats
• Adding some security such as webcam that response to threats and also PLC that
can trigger the security or any other parties when there are problems that can
respond and deals with the problem effective and efficiently.
5.1.8 Compile the ICT governance framework
70
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
• TNB can use the technology of PLC that are connected with the security devices that acts as a triggers when there are problems. It will then respond to the Network Telecommunication such as wifi or even broadband that can transfer the data fast and counter measurement of the problems can be taken action immediately.
• It’s important for TNB to have external parties such as police force and security teams.
• It is also important to get a good telecommunication provider so that the information that need to be send or captured are available at all time.
• For this to be work it is also a need for the support of the top management and also governments.
71
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
6.Stage 4: Develop Implementation Plan
What is an Implementation Plan?
An Implementation Plan can be defined as an action plan that determines how to
transform an agency’s strategy into reality. A more simplistic view is to sequence the
ICT opportunities defined earlier and perform necessary analysis to determine the
milestones, timeframe and resources required to implement them.
6.1. TNB’s main concerns on planning
Electricity demand growth continues
- 3.5% for next 10 years
- 2.7% for next 20 years
The local natural gas resources as “clean” fuel is depleting.
It will be replaced by coal, until nuclear option is available in post 2020
There are serious concerns on CO2 e mission, increasing dependency on fossil sources
and lack of RE, EE & DSM and increasing consumer expectations.
There is urgent need to increase operational efficiency i.e. there is need to increase
utilisation of transmission and distribution assets and to reduce system losses
6.1.1 Drivers for developing TNB’s smart grid
Global trends
72
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Development of smart grid is driven by 4 factors :
- Ageing infrastructure (generation, transmission & distribution systems)
- Energy crisis (energy security & costs)
- Financial crisis (grid reinforcement becomes unaffordable)
- Environmental crisis (green house gaseous)
They occur simultaneously
TNB’s long term strategic plans
TNB’s 25 years Electricity Technology Roadmap (TRM), with a purpose of modernising
electricity supply industry in Malaysia, focuses on 4 main goals:
- Reliable and efficient delivery system
- Intelligent power-delivery systems
- Value-added electricity products and services
- Enhanced environmental management
The actions to go ahead is now.
6.1.2 TNB’s Smart Grid Project
TNB Smart Grid was embarked on November 2009.
TNB has decided to implement Smart Grid Test Systems as demonstration projects.
Three sites have been identified for Smart Grid Test Systems :
– Bayan Lepas (North) : represents industrial area
– Bukit Bintang (Central) : represents commercial centre
– Medini (South) : represents green field area
To drive the implementation of the Smart grid Test Systems, the TNB Smart Grid
Steering Committee was formed.
73
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
6.1.3 TNB Smart Grid Development Phase
Phase 1 (2010-2011)
- Improving operational efficiency via automation
Phase 2 (2011-2013)
- Empowering Customers
- Improving Energy & Network Efficiency
Phase 3 (2011-2015)
- Reducing CO2 via Renewable Energy
Smart grid implementation initiatives
Phase 1 (2010-2011) Phase 2 (2011-2013) Phase 3 (2011-2015
Improve Reliability Increase Customers
Participation
Improve Energy
Efficiency
Reduce CO
• Implementation of
DA at pilot Sites
•Deployment of
DMS modules
•Fault Location,
Isolation &
Restoration (FLIR)
• State Estimator
• Auto Contingency
Analysis
• Auto Feeder
Reconfiguration
(AFR)
•Deployment of
Advanced Metering
Infrastructure (AMI)
• Bidirectional exchange
of usage information
•Improve billing
Accuracy &
Efficiency
•Improve New
Connection Process
• Development of VAR
Control
• Hardware+Software
• Demand Side
Management
• Provide live
information
to customers
• Autonomous Demand
Control
• Implementation of
DA at pilot Sites
•Solar PV
• BIPV
•Energy Storage
• Batteries
•Electric Cars
(PHEV)
•Charging stations
•Solar / LED
Street
Lightings
74
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
• Development of
Integrated
Customer
Information System
• Integration of the
various information
systems e.g. CIBS,
ERMS, CGIS,
MFFA
Phase 1 TNB smart grid test system: Improving reliability of supply via automation.
Features Existing Grid Smart Grid
Power is generated at large
power stations and transmitted
and distributed
via T & D system
Yes Yes
Method of locating fault
Manual Automatic
75
Advance ICT Infrastructures
Advanced ICT Infrastructur
Advanced ICT Infrastructur
Advanced ICT Infrastructur
Advance ICT Infrastructures
Advanced ICT Infrastructur
Advanced ICT Infrastructur
Advanced ICT Infrastructur
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Method of isolation and
sectionalizing of faulty section Manual Automatic
Method of feeder
reconfiguration for optimal
operation
Manual (not
optimized)
Automatic
Method of restoration of supply
after fault is
sectionalized
Manual Automatic
Method of mobilization of field
or repair Crew Manual Automatic
Update database for
management and customer
information system
Manual Automatic
Phase 2 TNB smart grid test system: Empowering Customers
Features Existing Grid Smart Grid
Customer is aware of own
energy consumption in real
time
No Yes
Customer has information for
making decisions on changing
their demand
76
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
pattern (via BEMS) & gain
benefits
Limited Yes
Customers have the capability
to export power from RE
sources back into the grid (on
agreed terms)
No Yes
Phase 2 TNB smart grid test system: Improve Energy & Network Efficiency
Features Current Grid Smart Grid
TNB is ready for demand side
Management No Yes
Automatic voltage and MVAR
control and to reduce No Yes
77
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
distribution system losses
Utility can communicate with
customers energy management
system on
controlling customers demand
pattern
No Yes
Higher utilization of T & D
assets
No Yes
Peak load reduction and
interruptible
load could be operated
smoothly
No Yes
Phase 3 TNB smart grid test system: Reducing CO2 emission via renewable energy.
Features Current Grid Smart Grid
Network is ready for
penetration of renewable
energy sources (solar PV), co-
gen, DER, etc
No Yes
78
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Network is capable to cater for
bidirectional power flow No Yes
Excess power generated via
RE, BIPV, etc is fully taken &
utilized via the grid
No Yes
Network is capable of meeting
demand of electric cars
(PHEV)
No Yes
Implementation
Six (6) activities / areas have been identified to kick start the phase 1 of Smart Grid Test
Systems
- Planning Studies
- DMS/DA project
- AMI Project
- Communication project
- System Integration
- Online Condition Monitoring
79
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
Prospects for smart partnerships / research opportunities (a non-exhaustive list)
Control architecture
- To evaluate centralized versus de-centralized architecture considering a
nationwide smart grid applications.
ICT infrastructure
- To identify and evaluate options for the last mile communication and information
system and recommend suitable option for smart grid applications.
“Prosumer” interface
- To identify suitable information, communication and control products and
services to enable consumers with greater information and control to play a part in
optimising the operation of the grid system nationwide.
Active grid
- To enable interactivity and coordination between the various level of grid control
(National Control Centre, Distribution Control Centre, Substation Control Centre,
Feeder Control and Prosumer).
7.Conclusion
Growing demand and limited resources while maintaining to be environment friendly
impose severe pressure to TNB in its planning. Smart grid is an option towards a
workable solution.
80
Standards, Policies and Guidelines – ICT Strategic Plan Guideline
TNB has decided to embark on implementation of smart grid test system projects. It will
be carried out in 3 phases (2010~2013) at 3 sites; Bukit Bintang in Kuala Lumpur, Bayan
Lepas in Penang and Medini in Johor.
TNB desires to gain valuable experience from the smart grid test systems so as to lead to
successful implementation of smart grid in other parts of TNB power grid system.
Research are required for some applications in order to ensure only the right technology
is deployed for the purpose.
81