Integrating JD Edwards with HCM Cloud solutions

Transcription

1 Integrating JD Edwards with HCM Cloud solutions Session ID: Quest Prepared by: Craig Davied Director Grant Thornton LLP April 25 th, 2018 Remember to complete your evaluation for this session within the app!

2 Craig Davied Director, Technology Solutions Kansas City, MO Executive summary Craig is a Director with Grant Thornton in the Technology Solutions practice. He has over 19 years of consulting experience, across a diverse set of companies and industries. Craig's experiences include planning and program management of multi-faceted implementation projects, hands on management and implementation of ERP software packages, business process reengineering and system architecture design. Prior to Grant Thornton, Craig was a founding member of MarketSphere s JD Edwards practice in 2002 and was responsible for managing and delivering projects, practice development, solution design and staff management. He has deep experience with the processes and configuration of the JDE Finance and Distribution modules, specifically with the General Ledger, Accounts Payable, Accounts Receivable, Job Cost, Contract Billing, Procurement / Subcontracts, Sales, Inventory, and Advanced Pricing. Craig also has experience with multiple releases of the software. Prior to joining Grant Thornton Consulting from MarketSphere, Craig was an experienced consultant in a Big 5 consulting organization and has over 18 years of professional experience. Industries Consumer Products Retail Metals and Mining Mineral Exploration Drilling Construction Water Management Aggregates Pet Food/Manufacturing Textiles Public Utilities Inbound / Outbound Transportation Education Bachelor of Science in Business Administration / Finance, Kansas State University 2

3 About Grant Thornton: Who we are Office locations 59 offices spread across 30 states and Washington D.C. Reach Serve 36% of companies on the 2017 Fortune 500 list and 25% of companies on the Russell 2000 list Our services Assurance Tax Advisory People More than 8,500 professionals in the U.S. Partners 594 partners serving more than 8,000 clients nationwide Revenue GT U.S. net revenue equals $1.74 billion stats are as of 07/31/2017

4 Grant Thornton: What we do Financial statement audits SEC registrants (public companies) Private companies Employee business plans Not-for-profit organizations Government Accounting consulting services U.S. GAAP Implementation of new standards IFRS reporting and conversions Fresh start Other comprehensive bases of accounting Partnerships Federal, multistate and foreign tax returns Loan staff and outsourcing services Tax accounting and risk advisory Accounting for income taxes Tax function optimization Global compliance and reporting Public finance services Cash flow and yield verification Arbitrage rebate compliance Examination and reviews Conflict minerals reporting Sustainability reporting Vendor compliance Service organization controls HIPAA/HITECH security and privacy controls Cybersecurity controls Other subject matters Federal tax Corporate tax M&A Accounting methods Cost segregation Interest and penalty services Research tax credits Section 199 DPAD Fixed asset services Public finance services Accounting consulting services Examinations and reviews Partnerships Financial statement audits Tax accounting and risk advisory Federal Our Clients International Transaction services State and local Business risk services Private wealth Human capital Business consulting and technology Business consulting and technology Financial management Strategy and performance improvement Technology strategy and management Technology solutions State and Local Tax Controversy Credits and incentives Real and personal property tax Reorganizations, M&A Sales, use and other transactional tax Unclaimed property (escheat) Private wealth services Corporate executives Business owners Family office services Business risk services Risk advisory services Forensic advisory services Data analytics Transaction advisory Diligence Corporate finance Operations Tax International tax BEPS analysis and perspective Global growth strategy Transfer pricing Cross-border structuring Legal entity optimization Global tax compliance Human capital services Actuarial Benefits Compensation Employment tax Global mobility services Human resource services stats are as of 07/31/2017

5 About Grant Thornton Committed Oracle Partner Specialized Partner of the Year, 2014 (EPM, NA) JD Edwards Excellence Award, 2015 Excellence Award, 2015 (Fusion Middleware Innovation at Serta Simmons Bedding) JD Edwards Excellence Award, 2016

6 About Grant Thornton Technology Solutions Business Intelligence Enterprise Performance Management Enterprise Resource Planning Human Capital Management We help our clients integrate transactions to report on financial results and variances with governed standards. Services include: Reporting and analytics strategy Governance and master data Foundation analytics Pre-built analytics Advanced analytics We help our clients transform data into usable information. Our services give clients better visibility into their business that enables actionable decisionmaking: Enterprise planning, forecasting and strategic planning Consolidations and financial reporting Profitability analysis Change assurance We help our clients manage transactional detail from every process within their business. Connecting this information with users and ensuring that it meets their specific needs are critical to enabling sound decision- making. Services include: System strategy Implementation Technology integration Upgrades, optimization, and support We help our clients develop an integrated approach for addressing current and future talent management issues. Our services provide our clients the flexibility to scale the solution or solutions to their business strategy, operating model, and culture. Specific services include: Assessments System strategy and implementation HR intelligence Upgrades, optimization, and support

7 About Grant Thornton JD Edwards Practice 80+ dedicated professionals PM and functional expertise Specialized functional resources Project management office Implementations Upgrades Mobile applications Third party integration architecture Business process reengineering Managed services (functional) User materials and training Distribution Manufacturing HR / Payroll CAM Project advisory THOUGHT LEADERSHIP Leading presenter at COLLABORATE, INFOCUS and OpenWorld conferences with dozens of education sessions spanning a broad range of topics ERP governance and data governance white papers and thought leadership series Featured in PROFIT magazine JD Edwards Special Issue 2015 Financials EXPERIENCE AND RECOGNITION Technical CNC Development Workflow Security management Technical management Infrastructure / hosting Managed services (technical) Private cloud Disaster recovery Security More than 200 JD Edwards implementations and upgrades Oracle JD Edwards recognized Grant Thornton with its 2015 JD Edwards Partner Excellence Award for Outstanding Upgrades and 2016 JD Edwards Partner Excellence Award for Vertical Industries Database management Development (FRICE) Trusted business advisor Gap assessment Transformation Industry point of view Proven methodology Process excellence Benchmarking ERP governance Data governance Master data management Reporting strategy Change management Cloud roadmap / strategy FASB planning Chart of accounts optimization 2016 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd

8 Agenda JD Edwards Background Overview of a Human Capital Management (HCM) System JDE and your HCM system: Key Areas of Focus Preparing for your Integration Keys to Success Lessons Learned Summary Q&A

9 Why are we here? To gain an understanding of how to best integrate Human Capital Management (HCM) Cloud solutions with JD Edwards

10 JD Edwards Background

11 JD Edwards Modules Major areas / suites of modules in JDE: Financial Management Solutions (FMS) Supply Chain Management (SCM) Manufacturing (MFG) Project Management / Costing Human Capital Management (HCM) Asset Lifecycle Management (ALM) Customer Relationship Management (CRM) Health, Safety and Environment (HSE) One View Reporting (OVR) Homebuilder Grower Management Localizations Electronic Data Interchange (EDI) Mobile Applications Note: List not inclusive, as there are too many to show on one slide

12 HCM Overview in JDE Payroll Processing Key Features Support for US, Canada, Australia, and New Zealand legislative and regulatory requirements Multiple company processing Payroll Tax Calculation and Reporting Leave Administration Overtime Pay Rules Retroactive Pay Off-Cycle Payment Processing Industry-Focused Functionality Union Pay Rules Piece Rate Pay Integration with ADP for Tax Filing

13 HCM Overview in JDE Human Resource Management Key Features Workforce Management Job Management Position Control Recruitment Management Benefits Administration Competency Management Performance Management Compensation Management Health & Safety Cobra Administration Graphic Org Charts Workflow Enabled Processes

14 Integrating JD Edwards with a Cloud HCM Solution You might ask why, if JDE has an HCM module, would you want to integrate to a Cloud HCM system from another provider? More powerful / robust functionality Better reporting capabilities More efficient workflow functionality Improved user and "customer" experiences Reduction in IT costs to provide overall solution Overall best method to meet your company's business objectives

15 Overview of a Human Capital Management (HCM) System

16 Overview of a Cloud HCM System What is a Human Capital Management (HCM) system: The functions of HCM system are generally organized into the following categories: Core HR, including Payroll Benefits administration Onboarding Compliance management Maintenance of employee / demographic data Talent management Recruiting, Developing and Retaining employees Reporting Analytics Compensation Management Career Development & Learning Workforce Planning Cut costs, not capabilities Build a flexible, adaptable organization Sourcing & CRM Maximize workforce productivity Recruiting Goals Management Assessment Onboarding For a more comprehensive definition of Human Capital Management, please visit the link below: Succession Planning Performance Management

17 Integrating JD Edwards with a Cloud HCM Solution: Key Areas of Focus

18 Consistency Between ERP & HCM Employee Master Data: Employee Master & Address Book Security Users Profiles/Roles (and Responsibilities) Access levels Manager Self-Service Employee Self-Service Security Permissions Actions Visibility Reporting Data Security Companies Business Units "Sensitive" Data

19 Consistency Between ERP & HCM Chart of Accounts / Reporting Attributes: JD Edwards Company Business Unit Object Subsidiary Subledger Financial Period Adv Cost Objects Flex Accounting HCM System Structures Organizations/Legal Entities Jobs/Positions Locations Cost Codes People Employee Master Address Book Unions Payroll Transaction processing Deductions, Benefit & Accruals Taxes

20 Consistency Between ERP & HCM Transactional Information: Costing Elements ($$ and/or Units) Payroll Departments Projects HCM System JD Edwards Summary or Detailed Decision as to whether summarized compensation data or detailed data will be returned to JD Edwards. (As a best practice, in the case of compensation for executives, you may want it masked.) Reporting strategy will help further analyze this situation.

21 Integration Key Aspects Unidirectional or Bidirectional? New records only or updates? Frequency / Timing Integration options (Real time vs. batch) There is NO out of the box integration from JDE to an HCM Cloud solution Custom integration is your only option Remember you will be limited in your options to customize your cloud solution; JDE can provide flexibility! The impacts to your project are: Increased cost and development time Need for technical resources for a custom solution Gains in available data

22 Development of Business Process Flows Onboarding Process Flow: Department / Role Focused System / Modular Footprint

23 Development of Business Process Flows Recruiting Process Flow:

24 Life in the Cloud The following are areas to address in order to best position for Cloud solutions: 1. Consistent business processes across all business lines (where possible) 2. Adoption of standard system configuration (and elimination of customizations) to support business processes 3. Establishment of business policies which are consistent with business processes and system configurations 4. Establishment of business team for HCM ownership of: a) Business Processes b) System Configuration c) Master Data Management 5. Establishment of training plan in order to continuously educate employees on business processes and technology integration 6. Establishment of testing processes & documentation to enable validation of "pushed" new functionality 7. Establishment of ERP Governance team to analyze/prioritize future business needs Standardization of business and technology aspects will best position you for the Cloud

25 Preparing for your Integration

26 First Things First What needs to be analyzed up front in order to get off on the right foot? What are the strategic objectives for your integration? Executive consensus re: business justification Readiness Assessment (if necessary) Project Charter / Scope documentation: Systems / Modules Currently owned by the client or purchase of new systems? Cost Tangible and Intangible Timeline Resource loaded Resources Internal resources and their skillsets External resources (partnering with an experienced system integrator) Risks Potential pitfalls that can derail your project

27 First Things First What is the "As-Is" Current State? High level overview / Detailed analysis Existing pain points "As Is" Business process flows What is the "To Be" Future State? Detailed document of business requirements (including 'nice to haves') "To Be" Business process flows Fit / Gap analysis Data / Reporting Analysis

28 Guiding Principles What do we need to keep in mind when architecting a holistic solution across JDE and HCM? There is no PERFECT solution. It will be a matter of trade-offs determined by detailed analysis Understanding who the Stakeholders are at multiple levels Executive leadership Technical owners (typically IT) Functional owners Consumers of the services provided through the integration Ability to Audit and report on the integration activities

29 ERP Governance Roles and Responsibilities Executive steering committee Performance metrics, KPI's ERP operating group Report metrics Business process owners Reports critical business metrics to exec leadership (weekly) Escalates critical business issues to exec leadership Responsible for multiple sub process owners Resolves escalated business process issues Participates in IT change control PTP PLTP MTE OTC WM MDM TS Include MDM and technology services into BPO structure ERP change control Technology services ERP support Third party application support Infrastructure support / network support Change control Security administration Bug / Fix New development / Business intelligence Knowledge / Documentation repository Business analysts Assess business and system requirements Supporting rationale for business intelligence Investigating systems and identifying options for improvement Project tasks / system testing Bridging the needs of business with the use of IT Functional area leads Report business process metrics to BPOs Reports critical issues and escalations to BPOs Resolves daily business issues Responsible for meeting process metrics/benchmarks Subject matter experts Daily business execution / knowledge expert Report system and business issues to Sub-Process Owners Compile business process performance metrics Document business processes and control points Helpdesk issues

30 Importance of Change Management Consequences of poor change management People revert to the old way of doing things Passive resistance People finding work-arounds Turnover of valued employees Disinterest in the current or future state Changes not fully implemented Divides are created between us and them Lower productivity 76% 66% 66% 96% Why Change Management? Resistance According to SHRM, 76% of the time, resistance kills projects Project Failure Rate According to the Standish Group, 7 out of 10 (66%) IT projects fail Change Fatigue According to a Prosci study, 66% of employees are stressed out by the rate of change Project Success Rate According to Prosci study, those rated highest in change management effectiveness, 96% met or exceeded project objectives

31 Keys to Success

32 Keys to Success HCM Perspective 1. Direction from and ongoing involvement of key leadership individuals to provide guidance. 2. Proper scoping of the project 3. Development of a comprehensive project plan 4. Participation of Subject Matter Experts at multiple levels Project Manager(s) Technical Functional Reporting Specialists 5. Development of a Change Management plan This is a MUST for project success Training quality must be an active consideration in change management planning

33 Keys to Success JDE Perspective 1. Top management support and commitment 2. Sufficient internal and external project team members to ensure proper business and system decisions 3. User involvement throughout the project to create buy-in for the new solution 4. Missing opportunity to redesign and align business processes to support the new systems 5. Thorough analysis of the impact of software on organization (including impact on business processes and end users) 6. Thorough end user training, including business process changes too 7. Utilizing an project implementation partner who has knowledge in the specific areas of your scope

34 Lessons Learned

35 Lessons Learned Define which system is your 'system of record' for which data set. JDE for elements tied to the Chart of Accounts HCM Cloud for People data Do not create new elements in an HCM system that are in-fact owned by JDE and vice versa

36 Lessons Learned Standardized measurements across teams/groups/locations enables progress reporting using same definitions, same testing methods, and allows accurate progress comparisons over time Stakeholders must be active and visible "Culture eats strategy for lunch" regarding inter-team cooperation The mindset within the company has as much or more to do with the success of an integration project as the technical aspects.

37 Lessons Learned Single project repository for all project teams (functional and technical) combined with version control and documentation standards enables maximum quality and training efficiency Target system should contain enough instances to enable testing strategy & patching strategy over life of project Integration/interface testing generally requires special attention from IT support staff

38 In Summary Key "first steps" to starting off on the right foot: 1. Develop Strategic Objectives 2. Document Business Requirements 3. Modular scope / footprint (both JDE and HCM) 4. "To Be" Process Flows 5. Data / Reporting Analysis Now you are ready to build out your Project Charter, Project plan and assign resources to your project

39 Session ID: Quest Remember to complete your evaluation for this session within the app!

40 Upcoming events Join Grant Thornton for our upcoming thought leadership sessions: Webcasts: 5/8: Optimizing the financial close: Account reconciliation automation 6/6: Planning for your HCM transformation Oracle conferences: 6/11 6/14: OHUG global conference in Las Vegas, NV 8/20 8/22: INFOCUS in Denver, CO 10/21 10/25: Oracle OpenWorld in San Francisco, CA

41 A 55,000+ member user community for Oracle Cloud, JD Edwards and PeopleSoft customers. Visit Quest International Users Group at Booth #239 Learn how Quest can help you receive 4x the return on your Oracle ERP investment Walk through a customized Quest Activation Plan (QAP) to maximize your product ROI in partnership with Quest Find out more about Quest s product-specific events: PeopleSoft RECONNECT and JD Edwards INFOCUS Real stories. Real people. Real solutions.