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Utility Analytics: Invoiced Consumption and Revenue Forecasting with SAP BW Data Mining

One of the important business problems in the Utilities industry is forecasting of the consumption and revenue billed to the consumers. While approached to some basic extent (as next billing period « simulations » per consumer) in the standard SAP industry solution for Utilities (also known as IS-U), this problem requires more powerful methods than just basic extrapolation of individual consumers' consumption and revenue profile values. In this article, we present an overview of a modeling exercise targeted at the creation of an aggregate forecast of invoiced consumption and revenue for a portion of the consumer base of a real-life utility company over a period of 12 months.

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