Designing and Implementing a Global Financial System for Europe Presenter: Lourdes Godfrey

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Designing and Implementing a Global Financial
System for EuropePresenter Lourdes Godfrey
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About Equifax
Introduction

• Premier provider of information that enables
  businesses to assess risk. We offer our clients
  solutions to identify, solicit, and acquire new
  customers process transactions manage
  customer relationships.
• Year 2000 Revenues US 1.8 billion
• 1999 awarded BBB Online Privacy Seal

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About the presenters
Introduction

• Lourdes Godfrey, AVP International Financial
  Systems
• Global Program Manger for Oracle Financials
  implementation
• Mike Gruen, Senior Business Analyst International
  Financial Systems
• Global coordinator for Oracle Financials
  Implementation.

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Oracle Project Overview
Introduction

• Mid-1998 recognized need to replace international
  legacy systems
• Selected Oracle after brief selection process
• Developed roll-out strategy defined KPI
• Implemented Europe first designed the global
  template
• Scope GL, AR, AP, PO, CM, FA, SSP, WE

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The Selection Process
Background

• Significant support in local countries
• Allow single instance implementation
• Multiple languages in a single instance
• Single instance supporting country-specific
  localizations
• 100 WEB based
• References who implemented using similar approach
  in similar countries.

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The Roll-out Strategy
Background

• Two data centers Europe Americas
• Proposed Technical infrastructure
• Modules GL, AR, AP, PO, CM, FA, SSP, WE
• Implementation Approach
• Site qualification criteria
• Where / how global template developed

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The Roll-out Strategy (Cont.)
Background

• Complexity of each implementation
• Sequence / timing of roll-out
• Which release to implement (11.03 / 11i )
• High-level overall global costs to implement.

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High-level plan
Background
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Its Aug. 1998 - Spains on First.
Implementing the Strategy

• Address Y2K issues with existing system
• Integrate with new custom billing system targeted
  to go live 1/99.
• Phase 1 Implement AR GL 10.7 fast!
• Phase 2 AP enhanced reporting
• KPI and Global Design were not done yet - agreed
  would bear risk of retrofitting.

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Key Lessons Learned in Spain
Implementing the Strategy

• Super Users must be involved 100
• Use backfill resources effectively
• 100 of regulatory requirements and common
  Spanish business practices NOT covered by
  Oracles localizations
• AX module for S. European countries tax reporting
  requirements encourages using multiple SOBs vs.
  Multi-org.

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UKs on Second, but really First...
Implementing the Strategy

• UK target site for Global template
• Rich consolidation complexity
• representative of all lines of business
• Implement UK Ireland first using the global
  template, then migrate Spanish databases to form
  consolidted European datacenter.

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Then Things Changed !
Financial BPO

• Corporate decision to outsource back-office
  finance and accounting processes.
• Impact on overall planning
• Outsource first, then implement Oracle
• Implement Oracle first, then outsource
• Outsource and Implement at same time!
• Lower overall cost quicker realization of
  benefits drove us to do both.

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Practical Project Implications
Financial BPO

• Move to outsourcing location coincided with
  go-live date.
• Ownership / Management of super users transferred
  to BPO
• BPO transition communications Mgt.
• Stakeholder Management
• Organizational Change Management
• Corporate Involvement Ownership

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Geographical Scope
Location Bradford Arndale Function Finance
Admin No.Staff 90 Legacy Peoplesoft
Location South Shields, BPO Function BPO
Finance No.Staff ?
Location Wexford Function Finance
Admin No.Staff 3 Legacy Pegasus OPERA
Location Bradford ITC Function IT
Support No.Staff 10 Legacy -
Location London Cap House Function No.Staff 8
Legacy
Location Madrid Function Finance
Admin No.Staff 15 Legacy ORACLE FIN 10.7
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Global Steering Committee
How we did it

• Process Owners may be a combination of PwCES
  and/or Equifax Staff

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European Steering Committee
How we did it
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How we did it
Global Process Teams

• Global Process Team
• UK AP PO
• S. America AP/PO
• Spain AP/PO
• Internal Audit
• N. Amer. AP/PO

• Global Process Team
• UK AR/Billing
• South America
• Spain AR/Billing
• Internal Audit
• N. Amer. AR/Billing

• Global Process Team
• UK Mgt. Reporting
• South America Mgt. Reporting
• Spain Mgt. Reporting
• Corporate Consol. Reporting
• North America Mgt. Reporting
• Internal Audit

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How we did it
Global Design Approach
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Project Plan - Analysis and Design
Programme Management
Draft CoA Template Design
Workshop on Template Design
Global Design Signoff Spain Gap Analysis
Agree CORE Design Areas
Agree Key Design Issues
European Business Design Signoff
Global Europe Design Reviews
Steering Committees
Demonstrated Prototype
Prototype Set Up
Detail Design
European Prototype Workshops
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Prototype Planning
Global European Signoff for System Design
Issue Resolution
European Signoff for Implementation Plan
Change Management
Global European Signoff for Prototype Approach
ORACLE Prototype Design
European Prototype Sessions AR CM AP PO GL
FA
Prototype Process Design
Detailed Plans - Implementation - Cut Over -
Org Change - Training - Policy Change - 2nd
Phase
Global Prototype Session
Prototype Data Definition
Spanish Prototype Session
Prototype Issues Planning Session
Prototype Set Up
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High-level Overall Project Plan
Programme Management
Infrastructure Development Implementation
Build
System Test
User Acceptance
Go Live
Phase 2
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Advantages of this approach
Prototype Approach

• Reduced timescales cost
• Hands-on approach early visibility and
  familiarization with software
• Reduced need for formal Oracle training
• Early buy-in and focus on vanilla impl.
• Timeboxing forces discipline
• Cost-justifying enhancements to vanilla

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Challenges of this approach
Prototype Approach

• Workload is intense from day 1.
• Novelty - requires repetitive explaining
• Requires committed empowered project team
• Very high dependence on full-time users
• Requires committed sponsorship to vanilla
  implementation.

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Key Lessons Learned UK Phase 1
Europe Phase 1

• Get all parties involved in Global design
• Constantly communicate Global design
• Identify common Global reports finalize
  reporting requirements early - prototype.
• Empowered Super Users are key.
• Plan post-Implementation support early.
• Identify organizational changes early.

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Phase 2
Project Completion

• Phase 1 included core modules only (GL, AR,
  AP, PO, CM, FA)
• Phase 2
• Self-Service Purchasing
• Web Expenses
• Spain instance consolidation
• Spain design migration to global template

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Phase 2 Approach
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Phase 2 - Spanish Integration
Mar 2001
Apr 2001
Jun 2001
Feb 2001
May 2001
Jul 2001
Aug 2001
Programme Management
Initiation and High Level Analysis
Conversion and Cutover
Apps Set-Up and Configuration
System Test and U.A.T
Development, Build and Test
Infrastructure Development Implementation
Go Live
Implementation Support
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Technical Details

• Sun E10,000
• 7 instances Prototype, development, conversion,
  system test, UAT, production baseline,
  training
• 380 Gb usable disk space fully mirrored
• Each DB approx. 8 Gb. Production 70Gb.
• Network to Spain 512 Kbps line with 256 Kbps PVC
  with backup 256 Kpbs line
• PCs 800 Mhz with 128Mb RAM.

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Future Plans

• Establish Americas data center in Atlanta
• Roll-out to South America using the Spanish
  migration templates, workplan, etc. global
  template as baseline in 2001
• Roll-out to US in 2002.
• Add-on Global Billing (under analysis)
• Add-on OFA or BIS reporting (future analysis)

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What we did
Conclusion

• Implemented Oracle Financials 11i
• single instance for Europe
• two languages
• global design template
• Centralized certain processes in the UK
• Outsourced finance in UK Spain
• Outsourced Application support in UK
• Began roll-out in South America

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Lessons Learned
Conclusion

• Explicitly define scope and objectives up front
  stick to it!
• Time-box major project phases.
• Get full-time user resources dedicated
• Implement rigorous change-control methods
• Stick to Vanilla - its a great flavor!
• Force cost-justification to modifications

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Lessons Learned (cont.)
Conclusion

• Consider Organizational change implications early
  - roles responsibilities
• Think globally Act locally- change mindset
• Communicate frequently with stakeholders
• If outsourcing attach BPO super users to hip with
  your super users.
• Get sign-off and buy-in on all major decisions
  from BPO team.

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Q A and Discussion