Requirements to Implement Asset Investment Planning
- Integration of processes
- Processes that effectively and efficiently share planning information throughout the organization
- Links between processes that are not normally considered (e.g., work management and revenue requirements)
- Budgeting and Performance Management
- Activity-based budgets that reflect the long-term plan for the asset
- Long-term financial performance forecast using pro forma financial statements
- Measurement and forecasting of risk and non-financial metrics
- Targets and incentives that reinforce execution of the plan
- Asset Investment Planning software
- Single, multi-year repository of planned, and proposed asset expenditures without needing to create projects and work orders in the transactional systems
- Long-term forecasting of both revenues and expenses, and creation of pro-forma income statements
- Single modeling framework using common assumptions that can be used for both discounted cash flow analysis and presentation of pro forma financial statements
- Capability to analyze expenditure alternatives ranging from individual projects to entire investment portfolios
- Multi-attribute expenditure analysis and prioritization
- Capability to forecast impacts of expenditure scenarios on revenue requirements, customer rates, and non-financial outcomes
CopperLeaf’s ESP is a purpose-built Asset Investment Planning software package. CopperLeaf’s professional services team understands Asset Investment Planning in energy companies and utilities and can help you achieve value from the approach.
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