Against all Odds Detroit adopts Oracle Cloud ERP
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1 Against all Odds Detroit adopts Oracle Cloud ERP Usha Vargas Sr. Project Manager, AST Corporation Feb 10,
2 Agenda Introduction About the City of Detroit Oracle Cloud ERP Solution Implementation Approach Lessons Learned Critical success factors A word from the Implementer Q&A 2
3 About City of Detroit Detroit, incorporated in 1806, is the largest city in the state of Michigan, with a population of approximately 677,000 Despite economic downturn in the city and the 2013 filing of the largest municipal bankruptcy case in U.S. history, Detroit officially ended its bankruptcy in December The people of Detroit are resilient and are working hard to rebuild the City s reputation As a result of its bankruptcy exit criteria, the City targeted a total transformation of its finance operations, including replacement of its financial management systems. The objective was to get this formerly-great city back on its feet as a model of financial excellence and integrity 3
4 Detroit s ERP Challenges: An unsupported version of Oracle EBS and a proprietary Budgeting Application with limited expansion capabilities Costly resources needed to support its on-premises applications Heavily customized solutions with many shadow systems and external processes Highly inefficient processes that did not conform to leading practices for the public sector A lack of integration with other key, third-party systems 4
5 Detroit s Transformation Goals: Reduce system complexity and long-term total cost of ownership (TCO) Implement industry-leading practices to improve efficiency and increase automation Eliminate customizations and shadow systems, reduce integration points Increase transparency and quality of citizen services Implement a transformative BI tool for use by managers, employees, and the governing body to help make informed decisions Due to the political climate following the bankruptcy proceedings, the implementation was heavily scrutinized by the municipal government community and the press nationwide. A successful implementation was imperative; failure was not an option! 5
6 Why Oracle Cloud? Easy user interface Ease of system maintenance & upgrades Always current on releases Fit to standard approach to avoid customizations Scalability for social & mobile Analytical built-in real time reporting Upgrade from older/obsolete platform to more modern infrastructure Ubiquitous network access Detroit is the largest Public Sector entity to go live with Cloud ERP and among the first to complete the upgrade to Release 11! 6
7 Oracle Detroit SaaS Model Cloud ERP (Fusion) Financials GL, BCEA, AP, CM, AR, AC, FA, Expenses, Shared HR Procurement Self Service Procurement, Purchasing, Supplier Portal Project Portfolio Management Billing, Costing, Grants Management Planning and Budgeting Cloud Services (PBCS/EPM) Oracle Service Oriented Architecture (SOA) - on premise Oracle UPK on premise Environments PROD, DEV, TEST 7
8 AST s Implementation Strategy - Fit-to-Standard Approach Maximize system value, minimize implementation time & complexity by using leading practices & minimizing customization Leading practice Speed Value Cloud ERPs are designed for no customization Vendor implementation experience Faster implementation time & testing cycles Maximize system value & utilization The City of Detroit contributions should focus on delivery & outcome compliance, & recognize that processes, inbound & outbound data may vary significantly from the current state system 8
9 Expected Project Results Re-engineered business practices Streamlined & fit-to-standard process flows Adoption of industry leading practices Timely access & consistency of data Fewer manual processes More user self-service More on-line workflows Online Training content - with audio! 9
10 Some Thoughts on Lessons Learned A failure is a man who has blundered but is not able to cash in on the experience Elbert Hubbard Life can be understood only backwards, but it must be lived forwards. Soren Kierkegaard 10
11 Lessons Learned Resource Management Parallel projects and strain on project resources Timely selection and retention of SMEs throughout the project lifecycle Shadow resources to create redundancy Time Commitment is key - backfill day to day responsibilities and shift other organizational priorities Empower resources to make timely decisions and cascade information Middle Management must be involved earlier in the process Include HR resources in full implementation cycle (HR is a limited shared module and was overlooked at times) Collocate SMEs with implementation partner 11
12 Lessons Learned Functionality Do not assume that EBS functionality also exists in Cloud Configuration impact on future state business processes Drive leading practices and mitigate manual processes Continually evaluate functional configuration Obtain configuration signoff prior to start of training Ensure comprehensive testing for Funds Check with various scenarios including outlier departments in order to uncover any potential issues Establish segregation of duties for BCEA and GL for Chart of Account segment maintenance Establish periodic data synchronization process for PBCS-GL interfacing 12
13 Lessons Learned Reports More time needs to be spent on understanding Oracle s available reporting tools and their appropriate use Seeded, BI, OTBI, FRS, Smartview Establish the reports sets required by Administration earlier in the process and use of appropriate reporting tool Demonstrate, test and validate all available seeded (OOTB) reports during testing cycles to ensure they meet business needs before delving into custom reports 13
14 Lessons Learned Technical Early interaction with Oracle Support - SRs needed for server tasks Patching cycles are short and environments are limited! Properly plan and manage testing time including any customizations Conversion Strategy - approach and impact for data selection criteria by object should be well thought out e.g. PO s Integrations - engage 3 rd party vendors as early as possible in the process to ensure end to end testing 14
15 Lessons Learned Segregation of Duties Several seeded security roles gave too much access and customization of security roles is still evolving in the Cloud product. Features in the recent release were not applicable to Detroit Custom roles need thorough testing with scenarios across all modules Start planning the role assignment exercise at the same time as training Establish ownership for security administration. Identify the correct roles for all users to ensure there is no disconnect between training and their actual roles Establish a cadence with maintenance of a consolidated master role list along with an approval process which is kept updated when any roles are added or modified 15
16 Lessons Learned Testing Test across all browsers for optimal tool by module Identify the potential impact of new features and functionality and focus testing events on those areas within the timeframe Due to shortage of time with patch cycles, strike balance between baseline testing vs new features Need tester continuity for all phases, include testers from all major areas including outliers Reiterate overall purpose of testing is not training 16
17 Lessons Learned Training Rollout Evaluate training delivery methods - Classroom, CBT, Job Aids, UPK Determine feasibility of Audio tools Training strategy and plan must include training by security role Training should be more SME and module owner driven Identify trainees in advance and make attendance mandatory Incorporate functional Lifecycle training e.g. Order to Cash, Req. to Check Establish plan for ongoing training delivery to ensure system adoption 17
18 Lessons Learned Change Management Conduct change management sessions as early as possible Engage end users regarding impacts to day-to-day job roles Create a forum to gather feedback and embrace new business processes prior to start of testing Begin transition plan and management well before go live A wider communication plan is needed that includes multiple mediums for notifications to end users, project team members and 3rd party vendors Communication should be consistent and extend throughout project and beyond! 18
19 Lessons Learned last but not least Organizational restructuring Conflicting priorities Scope Creep Business impact of Cutover Plan Scope of Go/No-Go decision 19
20 Critical Success Factors Steering Committee s active involvement throughout Collaboration between Implementation team and trusted implementation partner Oracle s Client Success Manager Engagement Contracting a Managed Services Provider to ensure seamless transition of support Assessment of lessons learned 20
21 Our Services Oracle Partnership Oracle Specialized E-Business Suite Business Intelligence EPM-Hyperion Fusion Middleware CRM Managed Services Education / Oracle University Project Advisory Services Oracle Platinum Partner Pillar Partner SOA Business Intelligence Hyperion Oracle University Approved Education Center Oracle University Reseller Oracle Accelerator Implementer Oracle Managed Cloud Services Implementer Small Business Strategy Council EBS Financial Management EBS Human Capital Management EBS Supply Chain Management BI Applications BI Foundation Service Oriented Architecture Application Development Framework 11g Hyperion Planning 11 Database 11g Public Sector 3 Time Oracle Excellence Award Winner 2011 Inc. Top Small Company Workplaces Inc Fastest Growing Companies 2012 Best & Brightest Companies to Work For 21
22 Q&A 22
23 Thank you! 23
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