Ameren Corporation

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Ameren Corporation
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Outline of Speakers

• Ameren History and Current Information
• Crystal Kuhn
• Angie Santino
• Intranet and Internet
• Catherine DeGiacinto
• Ryan McClain
• New Technologies
• David Sumpter
• Justin Doss

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Ameren Overview

• St. Louis-based Corporation that provides energy
  services to 2.2 million customers in MO IL
• Among the nations top utility companies in size
  sales
• Ameren has a generating capacity of about 14,500
  MW (primarily coal-fired), most of which is
  controlled by AmerenUE.
• 7,700 employees

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Operating Companies

• AmerenCIPS
• Based in Springfield, IL
• 323,000 gas electric customers
• AmerenCILCO
• Based in Peoria, IL
• 203,000 gas, steam, electric customers
• AmerenUE
• Based in St.Louis, MO
• 1.2 Million electric customers
• 123,000 natural gas customers

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Ameren Subsidiaries

• AmerenEnergy
• Independent, national trading and marketing
  subsidiary
• AmerenEnergy Resources (Marketing, Generating,
  Fuels Services)
• Energy sales, non rate-regulated generating
  subsidiary, provides fuel energy-related
  products services
• Ameren Services
• Administrative services (accounting, IT, etc.)

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Business Strategy

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)

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E-Business Model

• Brochureware/Infomediary
• Electronically aids buying/selling process
• Used as a marketing tool to promote business
• Provides annual reports, press releases, contact
  information
• Actual purchasing done off-line

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Ameren FinancialsReturn on Assets
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Ameren FinancialsReturn on Equity
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Ameren FinancialsDebt to Equity Ratio
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Ameren FinancialsTotal Revenue
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Ameren FinancialsTotal Cash From Operating
Activities
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Past Mergers and Acquisitions

• December 1997-- Ameren Corporation formed
• Union Electric and CIPSCO Inc. merged
• CILCORP was acquired by Ameren
• Ameren now is the parent company of AmerenCILCO,
  AmerenCIPS, and AmerenUE
• Combined information systems, financials, HR
  systems, and procurement systems
• November 2000-- Became one of AOLs five premier
  partners

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Goals and Philosophies of Ameren

• Core Business Growth
• Operational Excellence
• Superior Service
• Value to Shareholders

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Core Business Growth

• Core Values
• Pursuing growth
• Purchase of CILCORP
• Staffing Cuts and freezes

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Operational Excellence

• Customer Information Systems
• Employing technology in piping
• On-line technology
• Low cost Generation
• Reduce Emissions
• Track unit performance

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Superior Service/ Value to Shareholders

• Technology increases service responsiveness
• Offers low rates
• Maintaining financial strength
• Consistent strategic focus

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EBusiness Development Group

• Founded August 2000
• Mission
• Facilitate the planning and execution of Amerens
  strategy
• Change the way they do business
• Initiatives for intranet

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EBusiness Development Group

• November 2000
• First eProcurement transaction
• Reverse Auctions completed online
• January 2001 revised ameren.com
• One of the first companies to introduce bill
  payment

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Amerens Intranet and Internet Sites

• Catherine DeGiacinto
• Ryan McClain

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Intranet

• HRPowerline-- HR related functions
• Online company directory with pictures
• Cafeteria menu
• Ameren stock status, Dow, NASDAQ, SP 500 info in
  real time
• Corporate links to applications, forms, FAQ,
  policies and procedures

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Internet

• Residential
• Business
• About Ameren
• Community
• Environment
• Investors
• Jobs
• Search

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• Internet
• Demonstrationwww.ameren.com

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Observations

• Difficult to navigate
• Too much information
• Site Map is very useful but is hidden
• They should have followed this structure
  throughout website

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New Technologies

• David Sumpter
• Computer info-structure/getting information from
  it
• New technologies at Ameren
• Justin Doss
• Power line internet

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New Technologies cont.

• Define Info-structure and Back Office
• Why I picked these subjects
• Bad Example (Dominos)
• Good Example (Ameren)
• New Back Office Technologies at Ameren

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New Technologies cont.

• Info-structure
• Hardware
• Software
• Internet or private leased-line access
• People

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New Technologies cont.

• What is meant by Back Office
• Data created by
• Accounting, finance, marketing, sales, inventory,
  etc.
• The trick is
• Turning the data into information
• Integrating it with other internal and external
  data
• And getting useful information and reports from it

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New Technologies Cont.

• What was I thinking in preparing this
  presentation?
• Talk about new technologies at Ameren
• That the info-structure gives managers the
  information needed for informed decisions
• High cost and complexity of the info-structure
• Since most companies have little or poorly
  designed info-structures a bad example should be
  given

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E-Business Integration

• Integrating eBusiness into an existing company
• Integrate eBusiness customer information and
  regular customer information
• Integrate vertically with suppliers
• Use this information to make better customer
  oriented decisions

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Total Business Integration

• What is harder to do
• Integrating this information along with company
  and industry information to make company decisions

Vender
Online Customer
Offline Customer
Industry information from the internet and other
sources. Economic information.
Central Repository
Back Office Information
All company, industry and economic information
needed to make informed decisions
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Bad Example

• Most companies do not have good infrastructures
• Bad Example
• Dominos, still working with chisel and stone
• No back office computing to speak of
• No internet connection at stores
• Stores run generic DOS 5.0
• Machines are Pentium II at best
• Problem
• Pizza Hut and Papa Johns have online ordering
  through their websites.

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Bad Example

• Cost of Dominos To Upgrade P.H. P.J.
• Total 1st year 34 million
• Website 50,000 or less
• Cost of infrastructure needed
• Store equipment, software and connection fees
• 5,000 x 6000 30,000,000
• Internet connection 30/mo. x 6000 x 12 2
  million
• Back Office 1 million
• People 1,000,000

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Bad vs. Good

• Dominos
• No real info-structure
• No way to get useful information for business
  decisions
• Ameren
• Started using technology from beginning
• Often builds its own technology
• Continually working to integrate systems and get
  more information to the managers

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Easier Patching of Computers

• Problem
• 5,000 workstations
• 200 servers
• Solution
• Enterprise configuration manager
• Security update manager
• Cost of both 379,000

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Backing Up a Behemoth

• Problem
• Not enough time for duplicate backup
• Solution
• Makes both copies at the same time
• Ultera ShadowMaster
• Hard drive controller
• Mimics the hard drive in the tape backup

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Teaching Finance

• Problem
• Managers did not understand the financial impact
  of their decisions
• Solution
• Hire me (finance undergrad)
• Bought simulation software
• Has 22 variables
• Shows changes to net income, stock price, cash
  flow, etc.

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Another Simulation

• Problem
• Managers do not understand big picture
• Solution
• Simulation similar to MBA 534
• Company portrayed is Ameren (not making widgets)
• Uses Amerens own forms and data

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Tracking IT Projects

• Problem
• 700 hundred people, 170 projects
• Solution
• Software to track IT projects
• Prioritizes
• Keeps record of costs
• Categorize and search

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Integration

• Problem
• Integrating industry wide systems
• Getting information from them
• Solution
• Integration- deployed DEW (digital engineering
  workplace)
• Allows energy companies to consolidate grid line
  information

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Power Line Internet

• Ameren is currently testing a market of
  approximately 50 residential customers in Cape
  Girardeau, MO.
• If successful, high-speed internet access could
  be available to all Ameren customers in Illinois
  and Missouri nearly 1.7 million.

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Power Line Internet

• Charter
• Bronze Package
• 39.95 per month (includes 5 modem fee)
• 45.00 installation fee (in most cases)
• SBC
• Basic Package
• 39.95 per month (29.99 with 1 year contract)
• 200 installation fee
• 50 activation fee
• Ameren UE
• Basic Package
• Approximately 30 to 35 per month
• No activation or installation fee (currently)
• Modem one time fee of approximately 70

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Power Line Internet

• Advantages
• Increased competition
• Lower prices
• Extend broadband coverage to rural areas
• Accessibility from nearly any household outlet
• Some infrastructure already in place (i.e.
  customer service, billing and power lines)
• Consolidate bill
• Backing of the FCC

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Power Line Internet

• Is high-speed internet coming to a plug near you?
• Test area will determine this
• Price
• Download speed
• Safety
• Time Frame approximately 12 months

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Conclusion

• Ameren is a forward thinking company
• Advanced efforts to keep ahead of the industry in
  technological and Internet advancements
• Looks towards futuretechnology, mergers, etc.