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The Road not taken?

Leveraging Oracle HCM Cloud for HR Transformation in Europe

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Agenda

HCM Cloud Basics

HCM Cloud in Europe

The Essentials

Three Key items for Success

Key Lessons Learned

Q & A Session

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HCM Cloud Basics

3

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Analyst view on HCM and SaaS Trends

4

Gartner is projecting the SaaS market will

grow at a steady CAGR of 19.5% through

2016, having increased the forecast

slightly (.4%) since its latest published

report

Gartner is projecting a $10 billion HCM

market by 2015, with $4 billion in talent

management, 75% of that market coming

from SaaS.

Market data and trends show that the HCM market is predicted to grow rapidly in the next few years

IDC's revenue forecast for worldwide

HCM market is $11 billion in 2016,

growing at a compound annual growth

rate (CAGR) of 8.1%.

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HCM Cloud Basics

Why HCM Cloud Quicker ROI Reduced and Predictable IT Costs Considered as a “successor” for Oracle EBS and PeopleSoft HCM

product Hassle free upgrades Reduced Upgrade risk and downtime Stay current – utilize latest functionality

Target Customer for HCM Cloud

Number of Employees < 15000 Multi country companies with small population in each region Customers with multiple and isolated HR systems Existing Oracle Customers interested in better Talent and

Compensation product Customers looking to improve user experience – Social, Mobile and

Analytics Have limited budget for hosting and licenses Willing to adopt best practices and align with product features

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HCM Cloud – Advantages

More resources required in On-premise vs Cloud

Go-Live takes longer in On-premise vs Cloud

New Releases/Upgrade adoption is much later for On-premise

Infrastructure is Oracle Cloud Service Managed in Cloud, thereby reducing resources

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HCM Cloud in Europe

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HCM Cloud trends in Europe

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Three Key Items for Success

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The Three Key Items for Success

What we discovered is that there are three Essential items:

• Maturity & breath of the Product• Global adoption• Stick to the standard and take advantage of upgrades• Consider this a journey of enhancement & improvement

• Maturity of the Implementation approach• Getting this up and running is fairly simple• Address the connection in your wider IT environment• Address the internal Maintenance & Support

• Maturity of the organization• Cloud requites adoption to the standard• Align your Operating Model• Apply a strong Change Management support

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The Essentials

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Product : Oracle HCM Cloud

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Implementation Methodology: HCM Cloud Methodology

AccelHRate

1

2

3

4

Diagnose (Assess, Finalize Scope & Plan)

Solution envisioning workshops conducted withstakeholders to understand scope, critical success factors and gather requirements.

Simulate (Process Map & Build)

Business process flows are mapped to Oracle HCM Cloud to identify, prioritize and estimate Gap & conversions needs.

Validate (Test & Reconfigure)

System Integration and User Acceptance Testing is performed to ensure that the solution meets the business requirements.

Deploy (Transfer & Train users)

System is deployed for business users. End User Training is conducted and provides detailed cutover and rollout plan, validates production instance and ensures operational readiness.

Cognizant leverages proprietary Oracle Cloud Implementation methodology which has been successfully used in Cloud based rapid Implementation of HCM Cloud projects and is aligned to Oracle’s OUM methodology.

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Implementation Methodology: Pre-Configured Solution

Oracle HCM Cloud + Cognizant Advantage

Client specific requirement

Head Start with Oracle + Cognizant

Other SI

Cognizant’s IP

Reusable Processes &Templates

Process Modeler

Seeded Configurator

Migration Assist

Taleo Connect

PeopleSoft Connect

Value Added Services

Dashboard & Reports

UPK Kits

1000+ Test Cases

EBS Connect

Core HR

Compensation

Payroll

Talent Management

Time and Labor

Recruiting

Learn

Benefits

Accelerate Time to Value

Reduce Program Risk

Adopt Industry Best Practices

Increased User Adaptability

Align with HR TransformationAccelerate Integrate Deliver

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Change Management: Organizational CM FrameworkThe Cognizant OCM framework incorporates four change domains

supported by key enabling elements

Active and visible executive alignment & sponsorship

Tight collaboration between business operations and the project team

Effective communications Dedicated Change Agent

Network

Managing Organizational Change

Change Strategy & Leadership

Skills Management

Cognizant’s Organization Change Management Framework

1

4

Training Delivery Strategy

Skill Gap Assessment

Change Management Strategy and Plan

Initial Change Impact Analysis

Baseline / Iterative Change Assessment

Organization Design

Transition Plan / Roadmap

3

Organization Design Requirements

Micro Organization Structure and Job

Design

Macro Level Organization Structure

Job Impact Analysis

Knowledge Transfer Management

Stakeholder Management & Communication

2

Communication Strategy, Planning

and Delivery

Stakeholder Mapping & Analysis

Stakeholder Management Plan

Change Agent Identification &

Network

Future State Governance

Change Vision, Sponsorship, Executive Alignment & Program

Governance

Organization Impact Assessment

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Change Management: Framework contd..Cognizant’s OCM framework is flexible and can be customized to fit

customer specific needsOfferings Objectives

Assess the organization’s aptitude for change Develop recommendations to guide the design of a change program to

transform culture to the desired state

Identification of key stakeholders Understand Stakeholder requirements and preferences Establish change agents within the organization

Ensures adequacy, timeliness, consistency and the context of communication is maintained

Establish a two-way communications network Develops targeted communication to stakeholders with varying degree

of change buy-in

Impact assessment across people, process and technology dimensions Identifying and prioritizing the identified impacts and developing

necessary litigator steps

Assess organizational structure impact Organization structure to operate after the change? What roles / responsibilities will be changed or eliminated

Gauging the skill gaps in impacted resources that will affect their performance post change

Developing a comprehensive training plan an associated material based on the skill gaps identified

Organizational Change Readiness Assessment

Stakeholder Analysis & Management Planning

Communication Strategy, Planning and Delivery

Change Impact Assessment and Analysis

Org Design & Governance Model

Skill gap assessment & training needs analysis

Illustrative Solution

Set

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Examples & SolutionsLessons Learned

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Example Project Timelines

Go-Live all 6 Countries

Goal Management

Performance Management

Talent Review

Compensation Management

OTBI for HCM

Wave 1 – Core I NetherlandsWave 1- Core Rollout

Wave 2 Roll-out Talent

Func

tiona

l Are

as

Month 5Month 4

Core HR, ESS/MSS

Profile Management

Absence Management

Payroll Extract

OTBI for HCM

Rollout to 5 Countries*

Core HR, ESS/MSS

Profile Management

Absence Management

Payroll Extracts

OTBI for HCM

Extend functionality

Stay with latest release

Prepare for future upgrades

Enable internal IT team for support

End to end testing of business processes

Release 7 Upgrade

Month 6

Implementation Upgrade

* Roll-out Countries: Spain, France, UK, Italy, Germany

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Our Success Factors Third party vendors

to be made aware of project timelines and expectation from them during the project lifecycle

Establish a streamlined service resolution process with Oracle

Willingness to change the current way of working with HCM Cloud delivered processes without the need for heavy customization

Openness to look at alternative solution/workarounds is desirable

Ensured that SMEs and Business leaders define the overall solution which should then be validated only for legislative compliance with other countries. Communications strategy and sponsor should endorse this approach

Prep the customer (cloud understanding, global design, product limitations, dependencies)

Helped them identify key roles and our expectations from them during project

Helped them plan for additional phases, post warranty support and end user trainings well in advance

Adopt consultative approach

Centralized decision and

design

Expectation setting

Manage external dependencies well

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Key Lessons Learned

Limited availability of environments in SaaS Implementations Ensure minimal overlap of

phases Plan Production to Test

cloning for critical phases of projects (.e.g. CRP2, .SIT, UAT, Upgrade)

Start configuring Enterprise Setup on production post CRP2 or post approval of To-Be Process Model

Don’t underestimate data migration esp. historical data

Oracle Releases newer version every six months Before starting the

implementation, get all details of new releases in HCM Cloud space from Oracle and plan implementation accordingly

Importance of Data Privacy• Involve customer legal experts at an early stage of the project and also

ensure Customer PMO arranges for necessary design/CRP/UAT sign off from their internal legal team

SMEs buy-in and period reviews• Ensure that client keeps

Worker council involved and updated with the progress of the project to ensure their buy-in to the solution• Keep ~2 months for end to

end rollout for each set of countries

Small upgrade window• Small window (5-6 weeks)

available for end to end upgrade - hence it is critical to prioritize, validate and roll-out new functionalities • It is important to evaluate

results of test plan immediately after upgrade and liaise with Oracle for resolution at an early stage Key

Lessons Learned

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