PaaS for SaaS. Denovo Quick Calculator TM for Cloud. Presented By: Mike Lennon, Cloud Func;onal Solu;ons Architect Denovo. All Rights Reserved.

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1 PaaS for SaaS Denovo Quick Calculator TM for Cloud Presented By: Mike Lennon, Cloud Func;onal Solu;ons Architect

2 Agenda Introduc:on Extending the Cloud Solu:on with PaaS QCC Business Scenarios QCC for Government Contrac:ng Use Cases Demo QCC Hybrid Cloud QCC Cloud

3 Introduc;on

4 Mike Lennon, CPA, Solu;on Architect, Prac;ce Director Professional Summary Solu:on Architect/Project Manager/Senior Business Analyst with eighteen years experience in increasing levels of responsibility across financial and managerial accoun:ng areas, financial systems design and implementa:on, audit, training, and project management. Implemented over 50 full life-cycle Oracle applica:on projects across various industries with specializa:ons in Professional Services, Finance, and Government Contrac:ng. Qualifica9on Summary Oracle Experience: Cloud & EBS: Oracle General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, iexpenses, Project Cos:ng, Project Billing, Project Management, Project Contracts, OTL, Purchasing, Inventory, Order Management, Shipping, ADI, OBIEE, UPK Mobile: (703) Prior Experience: Project Experience: Insert Photo Here

5 Grounded and Growing Established 2003, outside Denver, CO Over 500 service delivery professionals Na:onal presence Oracle Pla:num Partner Leading market integrator and cloud services provider

6 About Denovo Denovo is the mid-market leader in delivering Oracle Enterprise Applica:on and Cloud Services. We work in close partnership with our clients to help drive business value through effec:ve use of both legacy and cloud technologies. Powering Oracle, Driving Value Denovo Clients: Growth-oriented midsize and large organiza8ons. Denovo Value: We make digital transforma8on easy and cost effec8ve as an elas8c extension of your organiza8on. Denovo Difference: Helping customers transi8on to a modern applica8ons architecture. We Listen, Innovate and Deliver to improve our clients business outcomes.

7 Broad Applica8on Specializa8on Applica8on Specialists Specialized in Oracle SaaS Cloud Specialized in JD Edwards Enterprise One and EBS Specialized in Oracle Business Intelligence

8 Oracle s Suite of Cloud Applica:ons Built on Best Prac:ce Business Flows, Designed to grow with you CX Cloud Marke:ng Configure, Sales Commerce Service Social Price & Quote HCM Cloud ERP Cloud Global HR Financials Talent Management Governance, Risk & Compliance Workforce Rewards Project Poreolio Management Workforce Management Procurement Work Life Denovo Core Focus EPM Cloud SCM Cloud Planning & Budge:ng Planning & Collabora:on* Enterprise Performance Repor:ng Manufacturing* Enterprise Planning & Budge:ng Order Management Account Reconcilia:on* Inventory & Logis:cs Financial Consolida:on & Close* PLM Procurement Apps Marketplace Data Cloud DaaS for Marke:ng DaaS for Sales DaaS for Customer Intelligence

9 By the Numbers A history of delivering integrated func:onal and technical solu:ons Years in Oracle ERP Total Number of Employees Average Years of Knowledge Total Customers Over 300 Consultants Oracle Sojware Projects 50+ Oracle Cloud Applica:on Projects 800+ Public Sector Projects 28 Years of Public Sector Focus

10 Denovo Oracle Cloud Customers Leading Oracle Cloud Partner, 50+ Oracle Cloud Projects completed

11 Government Contrac8ng Customers

12 Extending the Cloud Solu;on with PaaS

13 Filling The Gaps How to perform custom or complex calcula3ons on system data? Old Paradigm (On-Prem) Extract data to spreadsheet, then run macro or calcula:on. Manually update records in the system or Reformat data into Oracle format to upload and process. New Paradigm (Cloud) Pull the data into a PaaS solu:on that allows Flexible formulae and complex calcula:ons. Systema:cally manipulate and adjust data. Push correc:ve data back into the system without onerous formalng, uploading, and processing. Offline Spreadsheets or Customized ERP Programmer/consultant empowered High ini:al costs; High maintenance costs Start over at upgrade :me Difficult to interface to other data sources Produc9ze customiza9ons Customer empowered Low implementa:on costs Low maintenance costs Zero upgrade costs Infinitely flexible thru out the organiza:on

14 Oracle PaaS-SaaS Model 14

15 What s The Value OVI? Proposi;on Quick Calculator Proven Solu8on Legacy Quick Calculator is Approved and Validated

16 Introducing Quick Calculator Cloud The next genera:on integrates with Oracle Cloud SaaS applica:ons silng on the Oracle Cloud PaaS Servers

17 The Value Proposi;on The PaaS Solu8on Quick Calculator Denovo Quick Calculators are a cloud based set of customizable formulae that can be applied to a set of extracted data from Cloud SaaS applica8ons and reinserted to con8nue the standard business workflow. Core Applica3on Modules Query Management Module Enables the connection and integration of any service enabled data from your Cloud SaaS environment or other service enabled data sources. Flexible Calculations Module Enables Power Users to Create, Manage and Execute Basic to Complex Scripted Formulas Application Builder Module Empowers users to build unique miniapps (spreadsheets), that in the past, could only be done with custom mods Industry Specific Extension Modules Professional Services Calculator Hybrid Quick Connect Module Sales Commission Module Vendor Rebate Calculator

18 QCC Business Scenarios

19 TM Scenario 1: Denovo Quick Calculator for Oracle Cloud Standard Oracle Processes Applica:on Configura:on and Data Tables 1) Pull Data BIP/Web Services 2) Summarize, Caclulate, Present, Analyze Calcula:on Logic & Formulas 3) Push Data Oracle Cloud ERP Denovo QCCTM Solu:ons Unique Industry Requirements Modern Best-Prac:ces 19

20 Scenario 2: Denovo Quick Connect for Hybrid Cloud QCC TM Solu9ons 1) Fetch Data 2) Enrich Data 3) Push Data On-Prem Applica:ons Integra:on Rqmts Web Services SaaS Applica:ons 20

21 Demo Quick Connect for Hybrid Cloud

22 QCC for Gov t Contrac;ng

23 DCAA Compliance Pre-Award Accoun8ng System Survey (SF1408): Contractor s Accoun8ng System is Acceptable for Award of Contract Internal Controls, Accoun:ng Framework, and Org Structure Proper Segrega:on of Direct Costs from Indirect Costs Iden:fica:on and Accumula:on of Direct Costs by Contract Logical and Consistent Method for the Accumula:on and Alloca:on of Indirect Costs to Intermediate and Final Cost Objec:ves Accumula:on of Costs under General Ledger Control A Timekeeping & Labor Distribu:on System that Iden:fies Employee Labor by Intermediate or Final Cost Objec:ve Interim Determina:on of Costs Charged to a Contract through Rou:ne Pos:ng of Books of Account Exclusion from Costs Charged to Government Contracts of Amounts which are Not Allowable in terms of FAR 31, Contract Cost Principles and Procedures, or other Contract Provisions Iden:fica:on of Costs by Contract Line Item and by Units (as if each unit or line item were a separate contract) if required by the Proposed Contract Segrega:on of Preproduc:on Costs from Produc:on Costs

24 Gov t Contrac;ng Use Cases

25 Government Contract Requirements Total Time Accoun:ng (TTA) Uncompensated Over:me (UCOT) Automated Fee Calcula:on (CPFF) Percent Complete/Spent Revenue Recogni:on (Excluding Unallowables) Bill by Cost Element & Fee

26 Total Time Accoun;ng (TTA) Business Case: The US government requires that an employee s actual cost be allocated fairly and equitably across a company's various cost objec:ves in reasonable propor:on to the benefit accruing to them. As uncompensated over:me for exempt employees becomes more of the rule than the excep:on, it might become temp:ng to have employees who work on both fixed price and cost reimbursable contracts to charge more of their :me to the lauer, ul:mately resul:ng in excess billing to the government. As such, the US government requires contractors to record all hours worked in a given pay period, and to normalize or dilute their hourly cost rate by dividing their actual labor cost by the total hours worked in a given period. System Limita:ons: Cloud PPM only provides a simple Employee or Job Based Rate Schedule labor cos:ng solu:on without any capabili:es to normalize an employee s hourly cost rate based on the total hours recorded in the pay period. Solu:on Approach: Denovo PaaS solu:on using Quick Calculator Cloud for Total Time Accoun:ng (QQC TTA). Solu:on provides a user interface to meet TTA requirements by: Analyzing and extrac:ng costed labor Expenditure Items for exempt employees in a given pay period that have uncompensated over:me. Calcula:ng an effec:ve hourly cost rate by dividing their actual salary by the hours worked. Interfacing the correc:ng Expenditure Items back into Cloud PPM to reverse the original transac:ons and create new labor transac:ons with the normalized effec:ve hourly cost rate.

27 The Business Case Projects labor cos:ng only allows for a single rate to be used to calculate employee labor cost (i.e. Salary = $104,000, $2000 p/wk, $50 p/hr). Total Time Accoun:ng requires that the effec:ve hourly cost rate be reported based on the actual hours worked. Therefore the rate must be adjusted to meet these requirements. Weekly Time Card/ Hour Cloud Single Rate Method QCC Total Time Accoun9ng Method Rate Weekly Cost Rate Weekly Cost Week 1: 40 Hours $50.00 $2000 $50.00 $2000 Week 2: 80 Hours $50.00 $4000 (1) $25.00 $2000 Week 3: 20 Hours $50.00 $1000 (2) $100 $2000 (1) (2) Standard cost rate method overstates the organiza:on s actual cost for this week. Standard cost rate method understates the organiza:on s actual cost for this week.

28 What s OVI? Denovo Quick Calculator TM for Oracle Cloud Total Time Accoun9ng Solu9on Process Overview Time Card Data Import and Process Cost Transac:ons LABOR EXPENDITURES 1 PULL Labor expenditures & related employee data from Apps tables BIP/Web Services 3 2 Summarize, Calculate, Present, Analyze TTA FORMULAS AND RULES PUSH Reversing & Normalized expenditures Oracle Cloud ERP: Project Cos9ng Module QCC TM Total Time Accoun9ng Module

29 Demo Total Time

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37 Uncompensated Over;me (UCOT) Business Case: US Government contracts typically limit the amount of over:me allowable on a contract. If not allowed, then any premium pay for unplanned over:me must be charged to an Overhead project. System Limita:ons: Cloud PPM does not have func:onality to break out over:me hours by charging the straight-:me por:on of over:me to the Direct project, and the premium por:on of over:me to an Overhead Project. Solu:on Approach: Denovo PaaS solu:on using Quick Calculator Cloud for Uncompensated Over:me (QQC UCOT). Solu:on provides a user interface to meet Uncompensated Over:me requirements by: Analyzing and extrac:ng costed labor Expenditure Items for unplanned over:me in a given pay period that needs to be reallocated. Calcula:ng and crea:ng over:me premium Labor Expenditure Items for the premium pay por:on of the iden:fied labor transac:ons. Interfacing the over:me premium Expenditure Items back into Cloud PPM against an Overhead project.

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44 Automated Fee Calcula;on (CPFF) Business Case: The US government will ojen pay a fee on cost reimbursable contracts, beuer known as Cost Plus Fixed Fee contracts (CPFF). CPFF contracts allow contractors to bill the government for all costs incurred, both direct and allocated indirects, along with an agreed fee percentage not to exceed a fixed amount on the total contract value. System Limita:ons: Cloud PPM does not provide func:onality to automa:cally calculate the fee amount and create an Event Bill to invoice the customer based on contract fee terms. Solu:on Approach: Denovo PaaS solu:on using Quick Calculator Cloud for CPFF (QQC CPFF). Solu:on provides a user interface to meet automated fee calcula:on requirements by: Analyzing and extrac:ng CPFF Draj Invoices from Cloud wherever the Bill Plan has Invoice Method of 'Cost Reimbursable Invoice'. Calcula:ng the fee amount and crea:ng an Event Revenue and Bill by mul:plying the contract fee percentage :mes the total cost of the Draj Invoice. Interfacing the Event Revenue and Bill amounts into Cloud PPM to be billed by regenera:ng the invoice.

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55 Percent Complete Revenue Recogni;on Business Case: Many US government contractors with Firm Fixed Price (FFP) contract agreements recognize revenue using Percent Spent/Complete methodology (excluding Unallowable Costs) in accordance with their Disclosure Statement. System Limita:ons: Cloud PPM calculates Percent Complete on all costs, and does not provide the func:onality to exclude Unallowable Expenses when genera:ng revenue at a Project Level. Solu:on Approach: Create separate Tasks within the Project WBS. One Task for Unallowable Costs (Direct and Indirect), and other tasks for allowable/billable costs. Fund the Contract Line by Billable Task. This will automa:cally exclude Unallowable Expenses from Revenue recogni:on and supports the Percent Spent/Complete Revenue Recogni:on Methodology

56 Bill by Cost Element & Fee Business Case: A key requirement in US Government contrac:ng is to be able to iden:fy all costs with a contract, either directly or by alloca:on of indirect costs. A contractor s system must be able to differen:ate between direct, indirect, and unallowable costs for revenue recogni:on and billing purposes (especially for Cost Reimbursable contracts). System Limita:ons: None. Fully supported in Cloud. Solu:on Approach: Burden Schedule to handle the Nego:ated Indirect Cost Rate Agreement (NICRA) with the US Government for revenue and billing purposes. Indirect costs for Fringe, Overhead, and G&A can then be created from the Burden Schedule as separate Expenditure Item lines to meet the cos:ng, revenue recogni:on, and billing requirements to separately iden:fy each cost element.

57 Thank you

58 Contacts Michael H Lennon Oracle Cloud ERP Solu:on Architect M: (703) E: mlennon@denovo-us.com 11/6/17 5 8