How Two Companies Operate Globally: 1 Business, 1 Instance, 1 Source of Truth, and 1 R12 Upgrade

Transcription

1 How Two Companies Operate Globally: 1 Business, 1 Instance, 1 Source of Truth, and 1 R12 Upgrade Thursday, April 22, :45 AM 10:45 AM Reef D Helene Abrams Paul Phillips Bob Von Der Ahe Founder and CEO eprentise, LLC Manager Oracle EBS Development CARQUEST Technologies, LLC 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. 2

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. 3

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 4

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 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 5

6 Challenges of Globalization Made very little sense for 10% of the revenue to be burdened by the cost structure of an entire EBS instance and support. Many staff in multiple locations Many disparate processes, procedures Multiple general ledgers, employee records, and system interfaces Regional production instances were an obstacle to business improvements Globally Each country with their own Finance, HR, Billing Systems Hundreds of FTEs identified as performing reporting activities in Finance 6

7 Why Consolidate Instances? Reduction in infrastructure costs (hardware, maintenance, licenses) Reduction in personnel to support multiple systems Global Reporting/ Analytics Create Centralized Shared Services (maintenance, setup, centralized processing) Eliminate duplicate integrations and interfaces Facilitate efficient and effective decision making with timely and reliable fact based information Lower license and support fees Consistent Business Processes Provision of better customer service and the ability to operate globally Agility to grow and to embrace new initiatives Access real-time information at consolidated level Operation of a single business with consistent data, streamlined processing and the ability to leverage markets, suppliers of other parts of the business 7

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. 8

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. 9

10 CARQUEST Road Map US Instance Consolidation, June 2010 Upgrade date TBD USA 11i eprentise Consolidation CARQUEST Global 11i R12 Upgrade CARQUEST North America R12 History US History US Canada Canadian Instance Canada 11i History Canada Nov June

11 Experian - Diamond Road Map Unify 11i Spain and Hong Kong COA v.1 Europe COA v.2 History Europe Spain Hong Kong UK 11i UK COA History UK US 11i US COA History US January, 2009 January 2009 R12 Upgrade Unify R12 Spain and Hong Kong COA v.1 Europe COA v.2 September 2009 FlexField HK & Spain COA v.2 Custom Extract & Transform Scripts I Global COA v.3 Custom Extract & Transform Scripts II Unify R12 Europe, Spain and Hong Kong COA v.2 January 2010 UK Open US Open Convergence Unify R12 Europe, Spain and Hong Kong COA v.2 US and UK Global COA v.3 June 2010 FlexField Europe UK 11i UK COA US 11i US COA June, 2010 Unify R12 All Countries and Regions Global COA v.3 History Europe Spain Hong Kong UK US History UK History US 11

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.) 12

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 13

14 R12- Global Financial Management Operations in US, UK, France XML Publisher Reporting Audit, Reconciliation & Drilldown Analytics Transaction Entry Simultaneous Accounting for All Entities While Ensuring Corporate Visibility & Local Compliance US GAAP Global COA US Calendar $ US GAAP Global COA US Calendar US GAAP Global COA US Calendar French IAS Global COA French Calendar Global Visibility, Auditability, and Control Accounting & Tax 14

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 15

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 16

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 17

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 18

19 Questions?

20 Thank You! Bob Von Der Ahe Experian Global Corporate Systems Paul Phillips CARQUEST Technologies, LLC Helene Abrams eprentise, LLC