Sabah Electricity
Starfire[tm] Server Helps Utility Dramatically Boost Customer Satisfaction.

"SESB has implemented a set of computerized application systems to assist the organization to achieve its goals and objectives. In order to operate these applications, SESB needed a secure, reliable and robust IT backbone system. SESB decided to choose Sun for its technology leadership, performance leadership, extensive service offerings, and open system based architecture,"

Puan Rokiah Abdul,
Chief Information Officer, Sabah Electricity Sdn Bhd

Name of Company

• Sabah Electricity Sdn Bhd

Industry/Market

• Utility

Applications/Solutions

• SAP R/3 and IS-U/CCs
• Oracle 7 database
• Veritas Netbackup
• Sunscreen Firewall
• Symon[tm] Volume Manager
• Sun Management Center

Products/Services

• Sun Enterprise[tm] 10000 server
• Sun Enterprise[tm] 5500 server
• Two Sun Enterprise[tm] 450 servers
• Sun Enterprise[tm] 250 server
• Sun Enterprise[tm] 220R server
• Sun Cataloguedge[tm] disk arrays (1TB)
• Solaris[tm] Operating Environment
• Sun Professional Services
• Sun Spectrum[tm] Platinum Support Services

Key Business Challenges

• Improve quality and reliability of services including future-proof new-age billing system for customers
• Reduce inventory and improve internal efficiency
• Replace mainframe-based business system with Enterprise Resource Planning throughout the company using SAP R/3

Key Business Results

• Stock inventory reduced by RM31 million in first year
• Customer satisfaction dramatically improved through timely billing and simplified payment procedures
• Costs reduced, operations streamlined, and overall effectiveness substantially improved
• Prime Minister Award received for best IT modernization and effectiveness in Malaysia

Sabah Electricity Sdn Bhd (SESB) supplies electricity to more than a quarter of a million customers in the state of Sabah and Wilayah Persekutuan Labuan, Malaysia. Through best-of-breed solutions from Sun Microsystems, SAP and Oracle, SESB was able to successfully implement an integrated ERP system to provide top quality, highly reliable services to its customers. Sun Professional Services and Malaysian-based Computer Systems Advisers (M) Berhad (CSA) provided a range of value-added services to SESB in architecting and deploying its solution.

SESB chose Sun technology and services based on their performance as well as open-systems architecture. SESB is the first company in East Malaysia to use the Sun Enterprise[tm] 10000 server to deliver mission-critical services. The company's award-winning solution has introduced profound benefits to customers and SESB itself.

SESB Embarks on IT Modernization Program to Increase Customer Satisfaction and Operational Effectiveness
SESB was formerly known as Lembaga Letrik Sabah before it was privatized in 1998. The company's staff of more than 2,000 employees manages 71 power stations and 24 sites, generating power of 2,286 GWh with electricity demand of 372 MW. The company's mission is to provide services that are the best in quality and reliability in the most cost-effective manner possible while maintaining sufficient returns to stakeholders.

The systems that SESB used to run its business until the late 1990s posed a number of challenges to the accomplishment of this mission. Many operations were performed manually, and many of SESB's legacy systems were not integrated. Customers often received their bills late or not at all. Excess stock amounted to more than RM100 million in value. While many materials were overstocked, shortages were often experienced with others. Delays in processing claims, closing accounts and making payment to suppliers were all too frequent, and the value of assets often had to be estimated. Certain departments overspent their budgets and only became aware of it later when invoices were sent for payment processing. Report generation and staff development programs were impeded by personnel record tracking problems. Outdated information made planning difficult.

In mid 1998, with the millennium change looming, SESB determined to resolve these problems via a comprehensive computerization program. Under the plan SESB developed, the non-Y2K compliant legacy system would be replaced with a fully modern ERP industry solution for utilities that would allow customer service functions to be integrated with financial and logistics modules. A new-age billing system would future-proof business operations and provide better service to customers. SESB's operations and procedures would be standardized throughout the organization and business processes would become par with industry standards. Following an examination of ERP offerings, SESB selected the basis for accomplishment of these goals - SAP's R/3 financials package and SAP IS-U/CCs (Industry Specific Utilities - Customer Care and service) solution for utility customer management.

Sun Chosen for its Reliability, Performance, Service, Leadership in Open Systems Technology
SESB considered the Windows NT platform but decided against it because of concerns about reliability, availability, scalability and manageability. A critical factor was the need to handle the growth in the volume of transactions expected. The IT department also needed the system to cater to the resource requirements of SAP R/3. All these considerations led SESB toward a platform comprised of Sun Enterprise servers running the Solaris[tm] Operating Environment and the Oracle 7 database.

"SESB has implemented a set of computerized application systems to assist the organization to achieve its goals and objectives. In order to operate these applications, SESB needed a secure, reliable and robust IT backbone system. SESB decided to choose Sun for its technology leadership, performance leadership, extensive service offerings, and open system based architecture", Puan Rokiah Abdul, Chief Information Officer, Sabah Electricity Sdn Bhd.

In order to provide a complete hardware, software and services solution, Sun worked with its local partner, Computer Systems Advisers (M) Berhad (CSA), to provide consultancy and value-added services to SESB. CSA contributed to the realization of SESB's goals by helping identify technology to facilitate the utility's business expansion plans, and by providing an array of IT solutions and services that included integrated firewall services and training on the operation of complex mission critical data centers.

SESB selected a Sun Enterprise 10000 server, also known as the Starfire[tm] server, to serve as the database and applications server for SAP, along with one TB of Sun Cataloguedge[tm] disk arrays to house the Oracle database. Other servers purchased included Sun Enterprise 5500, 450, 250 and 220R servers, which are used for system management, development, staging, and firewall purposes.

In addition to helping identify the technology solution, Sun Professional Services assisted with design and implementation of the infrastructure powering the new SAP solution - including configuring the dynamic domains of the Starfire server for optimal performance, installation of data and storage facilities, and migration of data from legacy systems to the new SAP and Oracle environment. Sun Professional Services also helped implement data management, security, and disaster recovery planning. "The skill and dedication of our consultants from Sun Professional Services are important components of our success," said Dr. Ali.

All Goals Achieved in Full
The Sun Enterprise servers were delivered to SESB at the end of April 2000. Installation, commissioning and migration of applications were completed in August 2000, and the new system entered production. Today, Sun's systems successfully service SESB's commercial, engineering and services departments, while managing the company's planning and acquisition activities.

All the firm's major problems were successfully addressed by the new system. Customers now receive their bills promptly. Bill payment was made easier by the introduction of different payment modes and options. If payment is made at SESB payment counters, a scanning facility is provided for faster payment processing.

"The successful computerization system has been a key element in enabling us to cut down operational costs, streamline our various operations, and increase our general effectiveness," reported Dr. Ali. Through these improvements, SESB has cut down on its stock inventory by RM31 million within the past year. With a single application system for similar tasks and processes, SESB has been able to standardize operations and procedures throughout the organization. Integration has ensured data integrity because information is input and updated only once irrespective of the module, and all other relevant modules are updated automatically. System updating is also much easier.

Built-in checking and validation is accomplished at various processing stages. This reduces the number of tasks entailed in controlling and auditing. Business transactions are also tracked by the system, resulting in easier monitoring of outstanding tasks. All major applications including non-SAP applications operate on one single platform, enabling SESB to maximize the usage of resources. For example, any PC connected to the network is able to access relevant applications. Critical corporate data are now stored centrally, making it easier to manage, administer, and retrieve data for consolidation, analysis, viewing and reporting.

Prime Minister IT Award
SESB's IT modernization efforts were recognized when it won the Prime Minister IT premier award. This award acknowledges and honours local companies, government bodies and non-profit organisations in Malaysia, which have been most successful in applying IT to run their operations effectively.

"By using Sun's technology solutions and platform, together with best of breed solutions, SESB is widening the acceptance and usage of IT technology in the day-to-day lives of the Malaysian population," concluded Dr. Ali. "This in turn assists the country to prosper further and compete on an even field with the rest of the world. SESB is proud to be the first company in East Malaysia to use the Sun Enterprise 10000 server to deliver mission-critical services."

©2001 Sun Microsystems, Inc.
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