how two companies operate globally - eprentise · how two companies operate globally: 1 business,...
TRANSCRIPT
How Two Companies Operate Globally:1 Business, 1 Instance, 1 Source of Truth, and 1 R12 Upgrade
Thursday, April 22, 2010
9:45 AM – 10:45 AM
Reef D
Helene Abrams Founder and CEO – eprentise, LLC
Paul Phillips Manager – Oracle EBS Development – CARQUEST Technologies, LLC
Bob Von Der Ahe Director, Global Projects – Experian Global Corporate Systems
2
Session Objectives
Learn how to plan for a global consolidation and
get support from both the business and IT.
Examine the reasons that Carquest and
Experian wanted to consolidate their instances.
Focus on what decisions needed to be made,
the impacts of those decisions, and success
factors.
3
Oracle E-Business Suite Customer Trends
Consolidate for operating a shared service center or a centralized data center.
Resolve duplicates and standardize data.
Merge all configuration, master, and transaction data.
Reorganize entities, sets of books, and operating units.
Reduce operating and maintenance costs.
Create a single source of truth.
Enable revenue optimization.
4
CARQUEST
CARQUEST Auto Parts is the premier supplier of
replacement products, accessories, supplies and
equipment for virtually all makes of automobiles, as well
as light and heavy-duty trucks, off-road equipment,
buses, recreational vehicles and agricultural equipment.• Automotive aftermarket is worth more than $250 billion and growing annually
• CARQUEST Auto Parts Stores are local, independently owned and operated
businesses with deep roots in their communities – 16,000 teammates
Private Company with 3,000 locations in North America
and 43 years in business CARQUEST Canada extends our network throughout Canada
Oracle 11i - GL, AP, AR, FA, PO, HR, Payroll
5
Experian (LON:EXPN)
Global information services company.
Provides data, analytical tools, and marketing services to organizations and
consumers to help manage the risk and reward of commercial and financial
decisions.
Known for its comprehensive understanding of individuals, markets, and economies.
Helps organizations find, develop, and manage customer relationships to make their
businesses more profitable.
Promotes greater financial health and opportunity among consumers by enabling them to
understand, manage, and protect their personal information.
Constituent of the United Kingdom's FTSE 100 index.
2009 Revenue $3,821 USD (millions).
Clients in more than 65 countries.
15,000 employees in 40 countries.
Oracle 12.0 – All Financials, All HR Modules
6
Challenges of Globalization
GloballyEach country with their own Finance, HR, Billing SystemsHundreds of FTEs identified as performing reporting activities in Finance
Many staff in multiple locationsMany disparate processes, procedures
Made very little sense for 10% of the revenue to be burdened by the cost structure of an entire EBS instance and support.
Regional production instances were an obstacle to business improvements
Multiple general ledgers, employee records, and system interfaces
7
Why Consolidate Instances?
Reduction in infrastructure costs (hardware, maintenance, licenses)
Reduction in personnel to support multiple systems
Provision of better customer service and the ability to operate globally
Agility to grow and to embrace new initiatives
Global Reporting/ Analytics
Facilitate efficient and effective decision making with timely and reliable fact based information
Access real-time information at consolidated level
Create Centralized Shared Services (maintenance, setup, centralized processing)
Eliminate duplicate integrations and interfaces
Lower license and support fees
Operation of a single business with consistent data, streamlined processing and the ability to leverage markets, suppliers of other parts of the business
Consistent Business Processes
8
Database Consolidation
con·sol·i·da·tion (kәn-sŏl′-ĭ-dā′-shәn)
n.
1. As it relates to databases – the migration of multiple,
heterogeneous systems so that they run on a single hardware
and/or software instance, resulting in cost reduction, improved
operational efficiency, and the development of more responsive,
dynamic, and customer-centric IT systems.
Although estimates vary widely, in many cases
companies are able to save upwards of 40 percent of
their on-going IT costs from a consolidation project.
9
Roadmap to a Global Business – 3 Imperatives
All of the data must be
consolidated into a single instance.
There must be a single Chart of Accounts that
meets all of the legal and reporting
requirements of the business.
All of the data and business
processes must be complete, consistent, correct, and
accessible to those who need
it.
10
CARQUEST Road Map
USA 11i
Canada 11i
History
Canada
History
US
Consolidation, June 2010
Canadian Instance
US Instance
eprentise Consolidation
CARQUEST
Global – 11i
History
US
Canada
CARQUEST North
America – R12
R12
Upgrade
Upgrade date TBD
Nov. 2009 June 2010
11
Experian - Diamond Road Map
Unify – 11i
• Spain and
Hong
Kong
COA v.1
• Europe
COA v.2
COA v.2Unify – R12
• Europe,
Spain and
Hong
Kong
COA v.2
• US and
UK Global
COA v.3
R12
Upgrade
January 2009
FlexField
Europe
June 2010
Unify – R12
• Spain and
Hong
Kong
COA v.1
• Europe
COA v.2
UK – 11i
UK COA
US – 11i
US COA
UK “Open”
Custom
Extract &
Transform
Scripts II
US “Open”
Custom
Extract &
Transform
Scripts I
Unify – R12
Europe,
Spain and
Hong Kong
COA v.2
FlexField
HK & Spain
September 2009
Convergence
January 2010
Unify – R12
All
Countries
and
Regions
Global COA
v.3
Global
COA v.3
History
Europe
Spain
Hong Kong
UK
US
History
US
History
UK
History
Europe
Spain
Hong Kong
UK – 11i
UK COA
US – 11i
US COAHistory
US
History
UK
January, 2009 June, 2010
12
Results
CARQUEST
All history moved
No need to configure new
responsibilities, new operating
units, new parameters
One instance – no sunset
instance to maintain
Only had to redo Canadian
interfaces, RICE,
customizations
Still need to upgrade to R12
Experian
Spain, HK, Europe all history
US, UK 2 years history
Maintaining 2 (R11i) sunset
instances for history, OBIEE
All interfaces, RICE objects,
customizations need to be
redone
Time spent in configuring Unify
instance to accommodate
additional data (org units,
ledgers, etc.)
13
Taking Advantage of R12 Functionality
R12 Enhancements
Common
Accounting Engine
Subledger
Accounting (SLA)
Multi-Org Access
Control (MOAC)
No more sets of
books Ledgers
14
R12- Global Financial Management
Analytics
Transaction Entry
Accounting & Tax
Audit, Reconciliation
& Drilldown
XML Publisher Reporting
Operations in US, UK, France Simultaneous
Accounting for All
Entities
While Ensuring
Corporate
Visibility & Local
Compliance
Global Visibility, Auditability, and Control
US GAAP
• Global COA
• US Calendar
• $
US GAAP
• Global COA
• US Calendar
• £
US GAAP
• Global COA
• US Calendar
• €
French IAS
• Global COA• French Calendar
• €
15
Ledgers and Secondary Ledgers
Can be combined into ledger sets
Define create accounting rules and events
A single transaction will update multiple ledgers
according to rules
Widely applicable to foreign subsidiaries, compliance
with multiple regulations (IFRS, US GAAP)
Streamlines close process, ensures consistent
financial reporting
16
Multi-Org Access Control
Provides the ability to manage customers and suppliers across operating units without changing responsibilities
Users can be assigned to multiple operating units
Processes and transactions can span operating units
Increases efficiency of operating a shared service center
Streamlined access, processing, and reporting
Provides the ability to negotiate with suppliers and leverage purchasing power
17
1 Business, 1 Instance, 1 Source of Truth,
and 1 R12 Upgrade
A single global Chart of Accounts and a single global
instance enhance functionality
Reduces time spent compiling, reconciling, and consolidating
financial data
Reduces close time between modules and GL
Standardizes accounting policies across the enterprise
Define rules, interfaces once
Everyone adheres to the same set of rules and definitions
Full drill-down, roll-up, auditability
Corporate consistency and global visibility
18
Conclusion: One World, One System,
A Single Source of Truth
Results of a single global Chart of Accounts and single global instance
› Take advantage of R12 functionality
› Additional cost savings
Interfaces only have to be written once
Analytics have a complete view of all the data without ETL from multiple diverse
environments
Smaller IT infrastructure footprint produces lower cost of ownership
Efficiencies of operating as One Business
› Managing global view of customers, suppliers
› Consolidating financials
› Shared service center
› Standardized pricing and discount policies
› Managing inventories
Thank You!
Bob Von Der Ahe Experian Global Corporate Systems
Paul Phillips CARQUEST Technologies, LLC
Helene Abrams eprentise, LLC [email protected]