Driving Benefits with Oracle EBS Release Features Across Federal Health and Defense Sectors

Transcription

1 GLOBAL SPONSOR October 2018 Driving Benefits with Oracle EBS Release Features Across Federal Health and Defense Sectors

2 WHO WE ARE Presenters Colin Hartnett Principal Deloitte Consulting LLP Colin has 30+ years of experience transforming organizations from a process and technology perspective. Colin focuses on business transformation, solution design, and implementation of global Oracle (PeopleSoft, EBS, Cloud) Financial and ERP and HCM systems for Fortune 500 clients. Amandeep Bhatia (PMP) Senior Manager Deloitte Consulting LLP Amandeep has 14+ years of Oracle E- Business Suite (EBS) and Data Analytics experience. Amandeep has led implementation teams across Federal and Commercial sectors, and has managed several large Oracle Financials implementations. Copyright 2018 Deloitte Development LLC. All rights reserved. 2

3 Agenda About Deloitte Overview of R12.2 Upgrade Projects R Features and Benefits Overview Lessons Learned Summary Q&A Copyright 2018 Deloitte Development LLC. All rights reserved. 3

4 About Deloitte

5 About Deloitte Developing and implementing technology-enabled transformation solutions to help solve our clients toughest business challenges Offering a broad range of Oracle capabilities that span diverse disciplines Broad capabilities Resources Industry practices Federal experience Cloud Technologies Oracle E-Business Suite PeopleSoft Customer Relationship Management (CRM) Identity Management Engineered Solutions Service Oriented Architecture (SOA) Data Warehousing Shared Services Business Reporting and Analytics Master Data Management Technical Infrastructure and Development Application Management Services Business Process Transformation Upgrades and Implementations Copyright 2018 Deloitte Development LLC. All rights reserved. 5

6 Overview of R12.2 Upgrade Projects

7 Situational Background Deloitte clients in the Federal Health and Defense sectors faced challenges supporting their mission critical Oracle E- Business Suite (EBS) applications to meet new federal reporting requirements Challenge In early 2014, federal mandates required all federal agencies to improve operational efficiency, standardize business processes, increase data security and accuracy, reduce total cost of ownership, and report their spending information using a government-wide data structure. Previous versions of R12.2.x functionality required heavy customization to accomplish this government required mandate. Solution Deloitte successfully led the modernization efforts for three upgrades to EBS Release Federal Financials which included out-of-the-box functionality to accomplish the government mandate. Deloitte leveraged its extensive sector knowledge to deliver and implement these fully integrated solutions taking advantage of enhanced features in R Impact These clients are now able to meet the mandated government accounting compliance standards using Oracle s supported EBS R solutions. Deloitte s extensive knowledge of these federal sectors and extensive understanding of new Oracle functionality enabled these clients to maximize their return on investment (ROI) in upgrading their financial systems. Copyright 2018 Deloitte Development LLC. All rights reserved. 7

8 Deloitte s R12.2 Upgrade Success Stories Large Federal Healthcare Agency - Financial Management System Upgraded from to Large Federal Defense Agency Upgraded from to R Upgrades in Federal Health & Defense Sectors Deloitte s R12.2 Upgrade Accelerators Enterprise Value Delivery Method: Comprehensive methodology for managing complex technology implementations, upgrades and transformation projects US Delivery Center: On-shore delivery center which leverages experienced offsite functional and technical resources to accelerate the implementations or upgrades and reduce project costs Reusable Code Library: Demonstrated and sustainable solutions that can be used across projects Third Party Tools: eprentise and Config Snapshot utilized to expedite analysis for implementation and upgrades Deloitte has 100% on-time and on-budget delivery track record of Federal R12 upgrades and implementations Copyright 2018 Deloitte Development LLC. All rights reserved. 8

9 R Features and Benefits Overview

10 Driving Factors to Upgrade to R Before upgrading to R12.2.6, our clients faced numerous challenges with prior R12.2.x versions Numerous Manual Processes Lacked Needed Features Security and Control Issues Customizations (CEMLIs) for Federal Mandates System Availability and Downtime Copyright 2018 Deloitte Development LLC. All rights reserved. 10

11 R Features Deloitte enabled new Oracle EBS R functionality to maximize the benefits of the upgrade Enhanced User Interface HTML pages enhance user experience Contract Lifecycle Management (CLM) Fully integrated procure-to-pay system Release Government Treasury Accounting System (GTAS) Primary reporting of trial balance data DATA Act Makes information on federal expenditures more accessible and transparent Online Patching Reduces system downtime applying R12.2 application patches Copyright 2018 Deloitte Development LLC. All rights reserved. 11

12 Digital Accountability and Transparency Act (DATA Act)

13 Digital Accountability & Transparency Act - DATA Act The Digital Accountability and Transparency Act (DATA Act) of 2014 is a law that aims to make information on federal expenditures easily accessible and transparent DATA Act requires all federal agencies to report their spending information, including linked financial and award data using a government-wide data structure Data Act spending information is available to the public at USAspending.gov Copyright 2018 Deloitte Development LLC. All rights reserved. 13

14 DATA Act Benefits Potential DATA Act benefits of R Standardization Oracle provides a foundation to link standardized financial data from Data Act File A to other data sets of GTAS to improve the reconciliation process Automated The DATA Act Files: A, B, & C generated by Oracle EBS provide consistent, reliable, and searchable government-wide spending data that is displayed accurately for taxpayers and policy makers Accurate Includes a single set of programs that generates files and reports, to support both GTAS and Data Act reporting from a single source of truth to avoid any discrepancies in reconciliation Time and Cost Savings The DATA Act files can reduce compliance costs while improving spending transparency Reduction of Customization The DATA Act functionality is provided out-of-the-box with minimal customizations needed to meet federal mandates Copyright 2018 Deloitte Development LLC. All rights reserved. 14

15 DATA Act Functionality Implemented How Deloitte used Oracle s DATA Act solution for immediate client benefits Oracle has combined the GTAS and DATA Act configurations and COTS programs for federal file generation for both the GTAS and DATA Act reporting files Oracle s DATA Act solution can help the Federal Healthcare sector to report over $300B of government expenditures to the public through File C Copyright 2018 Deloitte Development LLC. All rights reserved. 15

16 GTAS Governmentwide Treasury Accounting System

17 GTAS Government wide Treasury Accounting System Before GTAS Prior to GTAS, multiple reporting systems were used to meet the government mandate to report a US federal agency s trial balance information to the US Treasury This required excessive customization to all systems There were multiple business processes Reporting took an extremely long time Copyright 2018 Deloitte Development LLC. All rights reserved. 17

18 GTAS Government wide Treasury Accounting System What is GTAS GTAS replaced FACTS I, FACTS II, IFCS and IRAS systems and serves as the single system for reporting US federal agencies trial balance information to the US Treasury GTAS reporting includes full budgetary and proprietary trial balance reporting for all of an Agency s Treasury Account Symbols GTAS is contingent on Federal attributes being set up correctly across the application, and the redesign of business processes not previously aligned with GTAS guidance GTAS verifies that the accounting treatment and corresponding attributes align with fiscal service guidance and streamlines the submission process Copyright 2018 Deloitte Development LLC. All rights reserved. 18

19 Enhanced GTAS Features GTAS enhancements as part of R GTAS Federal Account Creation Process Loads records for General Ledger (GL) accounts that require GTAS attributes that cannot be derived directly from the accounting flexfield This program enhanced to create child accounts for award flag Federal Attribute Activity Creation Process The GTAS Activity Balance creation process creates GTAS activity balances with GTAS attribute data that cannot be derived directly from the Accounting Flexfield segments Enhanced to derive award information based on the Award Flag for Purchase Orders (PO), PO Release, PO Receipts and AP Invoice transactions Federal File Creation Process Process creates a GTAS interface file to be sent to Treasury Enhanced to produce the DATA Act reports and files Copyright 2018 Deloitte Development LLC. All rights reserved. 19

20 GTAS Benefits Potential benefits of leveraging the key R enhanced features of GTAS Standardization GTAS can improve accounting treatment and business processes to reduce or eliminate errors Automated Wide array of checks performed by GTAS provides the ability to improve accounting treatment across an agency s data Customizable Compliance Helps Treasury to perform month-to-month analysis of an agency s data, which will help Fiscal Service potentially alleviate open audit findings with the compilation of the Financial Report of the United States Government Reduced Cost of Ownership Leverage out-of-the-box Oracle functionality to retire custom solutions developed to support GTAS requirements Enhancements available to support implementation of additional mandates (e.g. DATA Act, Central Accounting Reporting System (CARS)) Copyright 2018 Deloitte Development LLC. All rights reserved. 20

21 GTAS Functionality Implemented How Deloitte used Oracle s GTAS solution for immediate client benefits Pre R12 Prior to FY14, clients were required to run the following to collect trial balance data: - Federal Agencies' Centralized Trial-Balance System I (FACTS I) - Federal Agencies' Centralized Trial-Balance System II (FACTS II) - Intra governmental Fiduciary Confirmation System (IFCS) - Intra governmental Reporting and Analysis System (IRAS) Custom GTAS solution was leveraged prior to the R12.2.x upgrade which required additional processes and frequently required manual intervention Dependent on rules to capture GTAS attributes and GTAS-compliant Chart of Accounts (COA) Post R12 Upgrade New R GTAS functionality was successfully implemented for our clients GTAS verifies that the accounting treatment and corresponding attributes align with fiscal service guidance and streamlines the submission process GTAS is contingent on Federal attributes being set up correctly across the application, and the redesign of business processes not previously aligned with GTAS guidance Utilized Oracle functionality to capture Trading Partner information and TAS/BETC transaction level information Subledger Accounting (SLA) reinforces compliant accounting entries and limits required edits Copyright 2018 Deloitte Development LLC. All rights reserved. 21

22 Enhanced User Interface HTML Pages

23 Enhanced User Interface - HTML Pages Oracle Application Framework (OAF) pages are improved and optimized to provide an efficient user experience Changes to OAF pages across the following modules: Order Management Oracle Logistics Projects Internet Procurement Application Object Library (AOL) Enhanced User Interface (UI) experience with less clicks using icons/widgets/interactions Dashboards are available in report format which eliminates the need to run reports New user interactions that allow the end user to scroll through, detach a table, and work with a wider column width Copyright 2018 Deloitte Development LLC. All rights reserved. 23

24 HTML Page Benefits Potential benefits of HTML Page functionality seen by business users Rich User Interface Significant improvements to self service pages provides for easy navigation Compact Layout The homepage is updated with a compact layout which provides a more detailed view of all the page content and has a tree-based navigator Extensible The pages are easier to personalize and features of pages can be controlled by profile options Time Saving Helps reduce time spent processing tasks as the HTML pages provide faster performance and easy navigation for the users. Users also have the ability to add and manage favorites with a single click Copyright 2018 Deloitte Development LLC. All rights reserved. 24

25 HTML Pages Implemented How Deloitte used HTML Page functionality for immediate client benefits Pre R12 Navigation to pages and performing tasks required users to take multiple steps Pages were not easily customizable or extensible which resulted in custom solutions Limitations for users to add favorites and set preferences which hindered day-to-day tasks Post R12 Upgrade Reduced pop-ups and duplicate screens which improved the overall look & feel Decreased the number of steps required to complete key tasks Greater end user productivity through enhanced user interactions Enhanced personalization capabilities that reduce customizations thereby lowering cost Copyright 2018 Deloitte Development LLC. All rights reserved. 25

26 Contract Lifecycle Management (CLM)

27 Contract Lifecycle Management (CLM) CLM integrates with Oracle s R12 significantly enhanced solution for financials and procurement What is CLM CLM provides automated and auditable processes from the creation of purchase requisition, solicitation, and entitlement to payment CLM supports regulations that define the federal business processes, and encompasses a full procure-to-pay process flow within Oracle E- Business Suite to maximize benefits to federal users CLM CLM provides data transparency and visibility to provide contracting officers with support for strategic planning and improved decision making Copyright 2018 Deloitte Development LLC. All rights reserved. 27

28 CLM Features Enhanced Release brings new features within CLM Purchase Request Data Standard (PRDS) CLM now has the capability to generate Purchase Request Data Standard (PRDS) for users by running a concurrent program Enables purchase requisitions to be converted into XML in PRDS format which can be sent to other agencies Spot Buy Spot Buy lets buying organizations empower trusted requesters to make quick and efficient purchasing decisions Requestors can create purchase order documents with minimal or no buyer intervention Visibility into Procurement Activities CLM enables requester visibility into procurement operations, for the entire life cycle of procurement activities Requesters can view the requested item or services downstream e.g., Solicitation Published, Award Approved, etc. Requesters are provided with the Procurement Action History Withdrawal of Requester-Initiated Change R Oracle iprocurement enables a requester to withdraw a change request that has previously been submitted Requester is no longer required to wait until the buyer takes action on a change request in order to take a follow-up action Copyright 2018 Deloitte Development LLC. All rights reserved. 28

29 Benefits of CLM Potential benefits of CLM seen by users Automated CLM can increase contract line approval throughput while reducing the actual number of personnel in these departments Visibility CLM enables requester visibility into procurement operations for the entire life cycle of procurement activities Increased Efficiency CLM integrates data from multiple systems which can reduce the turnaround time, increasing efficiency Time and Cost Savings An inventory order that could take up to 2-3 months to process through the legacy acquisition cycle was updated with standard processes reducing the time to 4-20 hours to complete Copyright 2018 Deloitte Development LLC. All rights reserved. 29

30 CLM Functionality Implemented How Deloitte used CLM for immediate client benefits Pre R12 Users need to enter data into multiple systems to capture accounting and contracts data Requisitions created and approved manually No single source of data and the systems were not integrated with EBS Lack of integration with EBS created a disconnect between systems requiring a tremendous effort to reconcile Post R12 Upgrade Implemented CLM to replace legacy contract and acquisition system with a fully integrated solution CLM was integrated with General Ledger which provides automated controls Approvals Management Engine (AME) integrates with iprocurement to provide automated approvals workflow and provides streamlined business processes Standard interface capabilities to meet and track federal requirements Use of manual methods to meet mandatory governmental requirements Copyright 2018 Deloitte Development LLC. All rights reserved. 30

31 Lessons Learned

32 Key Lessons Learned R upgrade projects lessons learned Extensive Analysis DATA Act and GTAS required multiple patch analyses to identify the impact on existing CEMLIs and custom solutions Understanding of New Features New features are available across all modules which involved an understanding of how the new functionality integrates Federal Mandates Requires an understanding of the rapid pace of change in the federal environment and criticality for agencies to meet the deadlines for implementations/upgrades Data Conversion As new features are implemented, existing data requires updates to capture attributes for DATA Act and GTAS reporting Copyright 2018 Deloitte Development LLC. All rights reserved. 32

33 Summary

34 Summary Potential benefits of upgrading to R and leveraging the key features Compliant with Federal Mandates Reduced Maintenance Costs Increased System Availability Business Process Improvements Reduced Customization and Improved Automation Increased Security and Controls Our Health and Defense sectors were able to realize significant cost savings and operational benefits by upgrading to Oracle s supported R solution Key Takeaways Reviewed R features, functionality, and benefits which included GTAS, DATA Act, CLM, Online Patching, and HTML Pages Discussed lessons learned from successful upgrades across the Health and Defense sectors Provided benefits achieved during the upgrade process Copyright 2018 Deloitte Development LLC. All rights reserved. 34

35 Q&A Copyright 2018 Deloitte Development LLC. All rights reserved. 35

36 GLOBAL SPONSOR Talk to us, in the Exchange Experience a Deloitte solution powered by Oracle Cloud. Get the rundown at

37 Thank you! This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collective, the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2018 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

38 Appendix Copyright 2018 Deloitte Development LLC. All rights reserved. 38

39 Online Patching

40 Online Patching R12 improves the efficiency of seeded data and file handling during patching operations which shortens the Online Patching cycle Features of Online Patching Patching is performed using the new Online Patching utility Online patching now leverages a five stage approach to minimize downtime No downtime is required for the Prepare, Apply, Finalize, and Cleanup phases A short downtime (i.e., less than 30 minutes) is usually required during the Cutover phase to switch run editions and restart application tier services High availability is ensured with online patching as users remain online during the patching process and user downtime is limited to system restart time Prepare Apply Finalize Cutover Cleanup Copyright 2018 Deloitte Development LLC. All rights reserved. 40

41 Benefits of Online Patching Potential benefits of Online Patching seen by Data Base Administrators (DBAs) System Availability Significant improvements to system availability by reducing required downtime for applying application patches Business As-Is No impact on day-to-day business processes as a result of patching since the maintenance window is predictable Extensible Provides additional opportunities for installing patches to implement enhancements and code fixes without impacting users with extended system outages Time and Cost Savings Reduced costs incurred by having extended downtimes that were previously required when installing Oracle EBS application patches Copyright 2018 Deloitte Development LLC. All rights reserved. 41

42 Online Patching Functionality Implemented How Deloitte used Online Patching for immediate client benefits Pre R12 Extensive system outages often occurred when applying Oracle EBS application patches to implement new functionality or correct software defects Post R12 Upgrade Deloitte successfully utilized the five step process of online patching in our engagements where an environment was shared across multiple agencies, in the health sector With each agency performing different operations on different schedules, it allowed for a smoother operational schedule and shorter cutover time Online patching allowed our clients, in some cases, to only require system downtime for 15 minutes, whereas previous patching methods often required several hours of downtime Patching activities could start during normal business hours while system was operational Improved coordination of shutdown and startup across multiple agencies Copyright 2018 Deloitte Development LLC. All rights reserved. 42