Enterprise Finance Information Warehouse (EFIW)

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Enterprise Finance Information Warehouse (EFIW)

• Upstate NY Hyperion Users Group17-May-2006
• Jim Wall, Manager, Finance Re-engineering
• Kyle Kindle, Manager, Enterprise Finance Systems

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Agenda

• Agenda Kyle
• Xerox in a nutshell Jim
• Finance Re-Engineering Initiative Jim
• EFIW Architecture Kyle
• QA Both

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Xerox Corporation

• Xerox Mission Statement
• Our strategic intent is to help people find
  better ways to do great work -- by constantly
  leading in document technologies, products and
  services that improve our customers' work
  processes and business results.
• Founded 1906 as the Haloid Company
• Named Xerox Corporation in 1961
• 2005 Revenue
• 15.7 billion
• 2005 Income
• 978 million
• 2005 Commitment to Research, Development and
  Engineering
• 943 million, or about 6 percent of revenue
• Employees
• As of year-end 2005 55,200 worldwide, including
  29,700 in the United States.

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Finance Re-engineering Strategy

• In November 2002, goals were established to
• Address critical audit and control issues
  relating to the accounting close and
  consolidation process
• Improve the quality and effectiveness of finance
  service levels
• Greater transparency of financial results
• More timely and consistent financial reporting
• Greatly improved planning, budgeting
  forecasting
• Improve finance productivity
• Shorten the accounting close cycle to support
  accelerated financial reviews, press releases and
  regulatory filings
• Provide more relevant financial analysis
• Significantly reduce cost
• Reduce the number and complexity of finance
  applications worldwide
• Address the high degree of manually intensive,
  inefficient processes through re-engineering and
  automation

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Finance Re-engineering Strategy

• Focus on delivering benefits against the critical
  control issues first, achieving the quality and
  effectiveness objectives second, and driving
  costs down as the final phase

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Re-engineering Results
2002 Y/E 2004 Q2 2005
Reportable Conditions attributable to finance processes 4 0 0
Number of Late ECS Journal Entries Number of ECS Journal Entries booked after w/d 10 159 108 76 18 25 3
Intercompany Out of Balance Position at initial consol. Significant lt1M lt1M
Close cycle Completion of PL, Balance Sheet, Cash Flow Stmt Press Release of Financial Data 12th WD 19th WD 8th WD 16th WD 7th/8th WD 15th WD
Measurement Book Cycle Time 4 hours 15 min. 15 min.
State-of-art Reporting and Analysis Tools None Industry Standard Industry Standard
Ability to Reconcile movement in CTA No Yes Yes
ECS is Xeroxs Enterprise Consolidation System
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Centralized Rules Overview

• Address fundamental issues associated with
  current accountability processes
• Current processes are complex, inefficient and
  drive significant workload. Multiple steps are
  involved many of which are manual.
• Current processes significantly complicate the
  legal closing process because they lay directly
  on the critical close path and are prone to error
  and rework.
• Inconsistent rules and methodologies make later
  interpretation and analysis of results difficult
  if not impossible.
• Current processes are extremely inflexible to
  change. They tend to be poorly documented (I.e.
  complex and inter-dependant excel formulas and
  spreadsheets), and dependant on individual
  knowledge.
• Goals
• Corporate policy for allocation rules with change
  control process
• Allocation methodologies are applied consistently
  and accurately on a worldwide basis
• Better Analytic Tools and Standard Causals
  enabled by EFIW
• High degree of flexibility to change (I.e
  additional reports, reorganize data, add metrics)
• Dimensional reporting is able to meet business
  requirements

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Centralized Rules Guidelines

• Requirements for Activity Based Methodologies
• Spending base must be easily identifiable (In all
  likelihood this may require new GRAs)
• Activity basis must be generated / derived monthly

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EFIW Current Content

• Measures
• PL and PL Derived Measures
• Includes business segment data generated in EFIW
• Balance Sheet and Balance Sheet Derived Measures
• Cash Flow
• Statement of Cash Flows created by legal entity
  using same methodology as Consolidated Statement
  of Cash Flows
• Cash Flow data sourced from ECS, ESS, and CTA
  database (EFIW)
• Local Cash Flows created with no additional work
  required by local accounting units
• CTA
• Change in translational CTA is calculated by
  Legal Company and Currency
• Enables reconciliation of movement in CTA for
  Corporation and accurate currency reporting on
  Statement of Cash Flows

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EFIW Current Content

• Measures
• Headcount
• Activity / Metrics
• Standard Operational Definitions for
  approximately 70 metrics
• Monthly Installs, Removals, Orders, Page Volume,
  Backlog, Populations
• Drill-down to Sale / Rental / Operating Lease
• Further drill-down within includes New Business,
  XTI, Conversions, etc.
• Calculated Metrics include AMPV, Net Adds,
  Revenue / page, Cancel Rate, New Business Win
  Rate, Average Population, etc.
• Daily installs
• Enterprise Reporting
• 300 standard templates in Reports environment
• 15 structured analysis tools in Analyzer
  environment
• Ability to do ad hoc analysis in Excel Add-in

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Data Sources for EFIW

• SORs define key hierarchies
• Financial Measure (1000)
• Product / Offering (2400)
• Responsibility (1000)
• Geographies (260)
• Legal Company (600)
• Currency (40)
• 2007 Initiative to move hierarchy management into
  MDM

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Centralized Transformation Repository

• Data is imported from source systems,
  transformed, and stored in a centralized staging
  database.
• SQL Database
• Ab Initio for application of Centralized Rules

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Essbase Cubes

• Data is extracted from the staging repository and
  loaded into multiple multi-dimensional Essbase
  cubes in order to drive reporting and analysis
  activities.
• Critical success factor was ability to use ASO
  model for EFIW Financial cube to significantly
  reduce load times

ASO
BSO
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Portal Hyperion Essbase Reporting Tools

• The Two primary user interfaces with the EFIW
  Essbase Cubes are Hyperion Reports and Hyperion
  Analyzer.

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Hyperion Essbase Excel Add-in

• The Excel Add-in analysis tool allows the user
  to pull data directly from the Essbase Cubes

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Server Environment
Reports managed by Business and follow promote to
production process totally within physical
Production environment.
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SW Environment

• Hyperion
• Essbase 7.1.3
• Reports 7.2.1
• Analyzer 7.0.1
• EAS 7.1.5.2
• EIS 7.1.0
• Planning 4.0.1.10 (not yet in production)
• MDM 9.0.4.2 (not yet in production)
• SQL Server 2000
• Ab Initio 2.13.1
• Websphere 5.1

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Keys to Success

• Strong Finance / IT partnership
• Strong Finance / IT partnership !
• Sr. Executive Sponsorship
• Solid funding
• Prioritization of required functionality
• Multiple releases in progress simultaneously

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• QA
• Jim Wall James.Wall_at_xerox.com
• Kyle Kindle Kyle.Kindle_at_xerox.com