1. The One About The 185 Year-Old Startup
In 2016, as the City of Detroit emerged from the largest municipal bankruptcy, a new chapter began for one of the oldest municipal water utilities in the America. Having been reclassified from a world-class regional water utility serving nearly 4 million Michiganders to the local water utility for the City of Detroit was going to change the focus of this once great organization and for the 700,000 Detroit residents it servers.
How much that focus changed, how Oracle partnered with the City, and what this change meant to the customers and employees of The City of Detroit’s Water and Sewerage Department is our story today.
Rob Presnell Chief Operating Officer
Dan Rainey Chief Information Officer
Ralf Dossmann Director, Cloud Customer Success

2. Detroit Water and Sewer Overview
For over 185 years Detroit Water served Southeastern Michigan and the City of Detroit
Served 4 million Michiganders
7,800 miles of water and sewer pipe
500 – 800M gallons of water pumped daily
Local water department serving the City of Detroit
Founded in 1836
Local until 20th century when expansion came to support migration to suburbs post WWII
Heavy investment in the 60’s and 70’s when population estimates were that 10 million people would live within the service area.
Local water department for City too
Always tension between suburbs and city on investment dollars and influence
Under Federal Court supervision since 1987
2011 Root Cause Committee, 2012 – 2013 court orders allowing org to operate independently from city in many ways, new director and executive team focused on building a new utility. Optimization plan perfect day…Faster, Faster, Faster! Race to change….
March 25, 2013 Dan starts and so does Emergency Manager Kevin Orr.

3. Detroit Bankruptcy and Outcome
Your past will come back to haunt you
July 19, 2013 Detroit files for bankruptcy
November 7, 2014 Detroit exits
On Jan 1, 2016 DWSD splits
Great Lakes Water Authority
Detroit Water & Sewerage Dept.
New executive staff and appointees
New focus only serving the citizens of Detroit
4 months later…Bankruptcy…Pension claw back, retiree healthcare discontinued, assets sold (not DIA, not Water)
Despite bankruptcy DWSD proceeds forward with optimization plan.
Options for utility included - sell, lease/operate, spin off, leave alone
Chose split – late 2014 MOU – next 14 months = GLWA standup [erp, hris, payroll, , web] rest shared with DWSD.
Jan 1, 2016 – GLWA splits and DWSD is rebranded a local collection and distribution services provider
With all new executive staff – except one

4. Detroit Water and Sewer’s New Opportunity
Can a 185 year-old company act like a startup?
New executive team needed to change DWSD’s focus
DWSD could behave differently
“We need to act more like “fill in the blank” and less like the old DWSD”
Nothing less than a once in a lifetime chance to push the “reset” button…
DWSD was now a “collection and distribution” utility vs. a “production, treatment and transmission” utility
DWSD receives access to $4.0 million in dedicated affordability funds
DWSD receives $50 million lease payment --
Risk profile of new DWSD was different
Many of the court orders that DWSD operated under were still in force
Options for affordability programs
Perception is reality

5. 7,000 200M 700,000 people The New Detroit Water and Sewer
Gallons per day
7,000
Miles of infrastructure
700, people
DETROIT
Square-mile area:

6. A day in the life 99 problems, but no plan is number one RISKS
BIG PICTURE
LIMITATIONS
Policy & Regulatory Concerns
Asset Invest & Main.
Rates
10%
15%
28%
Affordability
23%
24%
Economic Conditions
Wholesale Charges
Majority of budget is fixed costs.
Bad Debt fluctuates. Additional risk with Drainage charge implementation
Increase in bond debt for CIP shrinks O&M, affects ability to staff appropriately
Rising wages and health care costs increases O&M
Reduced consumption trend affects entire budget
Significant investments are needed for the operation to move forward and cannot be executed in parallel
Aging Infrastructure
Investments & resources must be planned and aligned accordingly to maximize operational improvement while maintaining reasonable rate increases
Public Safety
Health
Trust

7. Why re-invent ourselves?
There isn’t a play in our playbook to fix this
DWSD
Deficient Water Assistance Programs
Bills Delivered Late
Not Knowing the Customer Base
Negative News Coverage
Frustrated Customers, Employees, & Board
Phones Ringing Off the Hook
Lines Out the Door
Low Collection Rate
Protests
Single Service Channel $
Protests
Collection rate
Lines
Phones were off the hook
Frustrated employees, customers, board, city representatives
news
Didn’t know our customers
Bills did not go out on time every month
Assistance programs were not working

8. So what, now what?
Stop using the old playbook and create a whole new one
Service Delivery
Process Improvement & System Consolidation
People
Mobile 1st
Strategy
Focus
Investment
Eliminate Excuses
Design Practices Around our Customers
Note Taker to Solution Oriented Service
Data Integrity
IT as a Service

9. Strategic Alignment & Resilience in Execution
The right play calls with proper execution will put you in scoring position
Results
Service Delivery Transformation
Call Wait Times
70% Decrease
Culture
Online Users
350% increase in registered users in 6 month period
Web Payments
60% Increase
Revenue Improvement
$90M Improvement
$5M reduction in expenses
Customer Traffic
67% Decrease
Productivity
60% increase in productivity
Assistance Program
90% Success Rate
Assistance Program
New Bill Design
Customer Portal
Kiosk
Virtual Line
Voice Pay
Performance Dashboard

10. The IT Pivot
Cloud first ONLY is our mantra

11. Datacenter as a Service
Not having a datacenter means new choices
Two identity domains
Ashburn and Chicago
VPN and dedicated connectivity
Qtr. Rack X6-2 in Production
Qtr. Rack X5-2 in Test
Three tiers of storage
Windows and Linux compute

12. Cloud Customer Success Team
Helping hands
Having the best partners leads to the best end
Strategize
Set the direction, determine areas of importance, and establish resources
Plan
Select projects based on strategy
Enhance
Through consistent monitoring/reporting craft meaningful enhancements
Monitor/Report
Continuously monitor execution and report on plan success
Execute
Methodically implement the plan
Cloud Customer Success Team
Develop
Challenge areas of concern and unknown
Ralf can jump in here if he wants
Diversify
Increase viewpoints and perspectives
Broaden
Think short, medium, & long term

13. Executing the IT Pivot
Making the calls that are leading to a digital transformation
Results
Service Delivery Transformation
Productivity
Project Management
Cloud IAAS
Database
Business Intelligence
File Storage
Spatial Data
Operating Costs
$1.3 million reduction
Productivity
10% increase in productivity
Service Delivery
Internal customer satisfaction improvement
Culture
Effective and consultative IT staff

14. Awards and Recognition
Industry and Community Leadership

15. What’s next Phase I Phase II Phase III Phase IV
Building a solid foundation for future generations to come
Phase I
GLWA & DWSD Split and Assessment I
III IV II
Service Delivery Transformation
Phase II
Phase III
Water & Sewer Infrastructure
Phase IV
Built to last