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Preparing a Critical Infrastructure Utility for a High-Risk CIS Replacement

 

 

young white female demonstrating notes on a whiteboard (8)
young white female demonstrating notes on a whiteboard (9)
BACKGROUND
 

A mission-critical system at the center of customer operations

A large U.S. natural gas utility initiated the replacement of its aging homegrown mainframe Customer Information System, the platform underpinning billing, customer service, meter-to-cash processes, and regulatory reporting. For decades, the system had served as the operational backbone for millions of residential, commercial, and industrial customers.

Over time, the CIS became tightly coupled with more than 70 surrounding applications spanning outage management, meter data, payments, field operations, customer communications, analytics, and regulatory reporting. Many integrations were custom built, insufficiently documented, or dependent on manual workarounds accumulated over decades of incremental change.

Modernization was necessary to support evolving rate structures, distributed energy resources, digital engagement expectations, and long-term cost efficiency. However, the complexity of the environment introduced substantial execution risk. Any disruption could lead to billing inaccuracies, delayed revenue collection, customer dissatisfaction, or heightened regulatory scrutiny. The utility required a path to modernization that would allow replacement of a core system while preserving operational stability and public trust, and that could support future change as regulatory requirements, technologies, and customer expectations continue to evolve.  

THE CHALLENGE
 

Managing legacy complexity under regulatory and operational constraints

Implementing a modern SAP Customer Information System required integrating more than 50 legacy applications with varying levels of technical maturity, documentation, and readiness. Many interfaces had evolved incrementally over decades to support specific rate plans, service territories, and operational processes, creating a highly interdependent ecosystem.

Key challenges included:

  • Extensive interdependencies among billing, meter, outage, and customer systems
  • Complex rate structures and reporting obligations
  • Limited documentation of interfaces and manual processes
  • Legacy applications requiring remediation to support modern integration
  • High risk of revenue disruption during transition
  • Sensitivity from regulators and customers to service impacts

Without early clarity on integration scope, dependencies, and remediation needs, the replacement effort faced potential delays, cost overruns, and service disruption. Leadership needed a structured approach to reduce uncertainty and enable confident execution.

young white female demonstrating notes on a whiteboard (10)

What TSG delivered