Austin Energy's Billing System

1131 Words Jul 12th, 2015 5 Pages
Module G Group 1 Case Study: Austin Energy’s Billing System Can’t Light Up

1. Is the Austin Energy project a failure? Explain your answer.

 Austin Energy has been dubbed one of the largest renewable energy programs in the country, handling electrical, water, and waste disposal for Austin, Texas along with surrounding counties. The company serves over 1 million residents and has provided $1.5 billion in dividends back to Austin since 1976. However, its reputation falls short in their billing system. The system lacks the integration of newer technologies and customer assistance options. In order to improve their billing system, Austin Energy has contracted with IBM.

 Austin Energy’s efforts of improving its billing system through IBM led to many failures. Firstly, the amount Austin Energy put into the project can be totaled to $110 million. Because Austin Energy was losing revenue due to various technical factors, Austin did not have the proper budget to cover the costs. In addition, there was a delay in the billing system update, the system itself was too complex, and instead of improving the company it created more costly, technical issues that needed to be corrected.

2. Describe the business impact of the faltering Austin Energy project.

 Austin Energy’s billing system lacked customer assistance options and other updated online billing services. As it became updated, the system had several software errors and bugs causing inaccurate customer billings to occur. The…

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