Winning in the Cloud: ERP and HCM at Caesars Entertainment

Transcription

1 Winning in the Cloud: ERP and HCM at Caesars Entertainment Session ID: Prepared by: Deron Stoecklein Principal Grant Thornton April 23, :15 5:15 PM Remember to complete your evaluation for this session within the app!

2 Our Session Today Caesars Entertainment, a worldwide brand in gaming and hospitality, has undertaken a strategic transformation across the organization to modernize its enterprise support functions with help from Grant Thornton. Attend this panel discussion to learn more about Caesars decision to change, how the organization operates, why they chose to move to the Cloud, how they selected Oracle Cloud and the latest on the ERP and HCM transformation. Alex Gilmour Director HCM Transformation Michael Mann Vice President of Finance Transformation Deron Stoecklein Principal Bill Behen Principal Chris Thom Director

3 Today's Discussion 1 About Caesars Entertainment 2 Caesars Oracle Cloud Journey 3 Oracle Multiple Pillar Best Practices and Key Guidance 4 Caesars Approach: HCM and ERP

4 About Grant Thornton

5 About Grant Thornton We are the U.S. member firm of Grant Thornton International, a global organization of member firms providing audit, tax and advisory services to clients for more than 90 years. 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 People More than 8,500 professionals in the U.S. Partners 615 partners serving more than 8,000 clients in the nation Our services Assurance Tax Advisory Revenue GT U.S. net revenue equals $1.75 billion stats are as of 07/31/2017

6 Oracle Practice Solutions Focus

7 About Caesars Entertainment

8 Our Headquarters

9 A Portfolio of Winning Brands OUR MISSION We inspire grown-ups to play

10 Facts & Figures Market Leadership #1 and #2 market share in almost every US market WSOP world s leading poker brand Broad and Loyal Customer Base 75+ million annual visitors 45 million Total Rewards members Unprecedented Scale 51 properties across 13 states and 7 countries 70,000 employees 3 million square feet of casino space 2 million square feet of convention space Robust Entertainment & Hospitality 43,000 hotel rooms 390 restaurants, bars, and clubs 240 retail spots One-of-a-kind entertainment

11 Most Geographically Diverse Distribution Network Global reach with a leading position in most markets EUROPE & AFRICA Reno/Lake Tahoe Council Bluffs Chicagoland Robust in-place domestic pipeline Las Vegas Laughlin Kansas City S. Illinois/Indiana SOUTH AMERICA Shreveport/ Bossier City Tunica Pursuing and capturing newly opening markets Caesars properties Market share position Gulf Coast 1 2

12 With a Strategy to Grow Invigorating Hospitality and Loyalty Marketing Programs Investing in Caesars Infrastructure to Enhance Long-term Value Instituting a Continuous Improvement-focused Operating Model Inspiring a Sales and Service Culture

13 Oracle Multiple Pillar Best Practices

14 Oracle Multiple Pillar Best Practices Guidance Oracle software has no preference of order (ERP first vs HCM first vs Big Bang) Organizational Readiness is a key factor for consideration Consider whether you plan to implement a shared services model Establish Enterprise structure and use the Enterprise Structure Configurator (ESC) Reference Data sets are shared ("Enterprise" in Financials, "Common" in HCM) HR Department(s) logically align to Financial Cost Center(s). Financials workflow has an inherent dependency on HCM employee information and HCM organization structure.

15 Oracle Multiple Pillar Best Practices Order of Implementation Alternatives Big Bang Resize Stage/Test environment before User Acceptance Testing (UAT) Test across product services business processes cover multiple products and pillars Tight coordination across the implementation projects HCM first then ERP (Phased) Oracle suggests that HCM Implementation team create the bare minimum setup for Financials or a dummy setup and then later correct and complete the Financials enterprise structures when they are ready to implement Financials Cloud. Define minimally w/ Finance: COA, Calendars, Retained earnings, business units DO NOT: create 2 nd ledgers, reporting currencies, GL Periods, complete accounting information, create financial transactions, account code combinations If Payroll, financial engagement has to be high and key decisions made ERP first then HCM (Phased) If Supervisory Hierarchy is used for Approval Management, make sure every employee has at least one supervisor assigned. The same is true for Job level. Make sure you have a hierarchy of Job levels. Complete a resizing request after the Financials phase deployment but before HCM deployment (after UAT is completed). Have completed list of Business units for ERP and HCM Have completed and agreed upon definition on Legal Entities and Legal Employers

16 Oracle Multiple Pillar Best Practices Shared Configuration

17 Key Guidance ERP team needs knowledge of HCM design and configuration HCM team needs knowledge of ERP design and configuration Share platform, share decisions Meet frequently if support teams are different Environment plan very important if project timelines are different for HCM and ERP

18 Caesars Approach: HCM and ERP Workshop to Collaboration

19 Background Project considerations and facts: ERP went first (before HCM going live) ERP project started design phase 3-4 months earlier than HCM ERP had to understand HCM design in key areas to avoid pitfalls HCM had to make design decisions in key areas to avoid pitfalls HCM had to be involved in ERP environment setup and testing ERP and HCM had separate project teams w/ separate client/implementer resources Goal Bring ERP and HCM resources together for key decisions, shared decisions and frequent touchpoints Project tracks shared the following: Environments Enterprise Structures Workforce structures Users Other configurations (i.e. currency decimal spots)

20 Workshop During ERP design phase we held HCM and ERP workshops Provides education around shared topics Discussed shared topics: Review Enterprise & Workforce Structure Definitions Enterprise & Workforce Structure Preliminary Design and Thoughts Enterprise & Workforce Structure Decisions Reviewed current ERP and HCM design

21 Environment Plan and Validation Caesars had six test environments to manage HCM and ERP teams met every 2 weeks to discuss environment usage, patches, refreshes, validation, etc ERP would first configure an environment, that environment would be copied to other environments for HCM to configure and prototype. After ERP Go-Live HCM final round of validation included a copy of production and included ERP in regression testing the new "Shared" Environment.

22 Program Governance Steering Committee (HR, Finance/Accounting, IT, Oracle) ERP Delivery Team Sponsor Project Managers Business Resources Accounting Systems Resources Implementation Partner Resources Program Management (Program Manager, Oracle ISM) HCM Delivery Team Sponsor Project Managers Business Resources HRIS Resources Implementation Partner Resources IT Delivery (Integration Development, Info Security, Desktop Support, etc..) Tools & Techniques Common Methodology Tollgate Concept Instance Strategy ERP Involvement in HCM Deployment strategy Participation in weekly status meetings HCM and ERP sponsor alignment HCM application of lessons learned from ERP deployment

23 Shared Application Basics

24 Enterprise & Workforce Structure Enterprise Structure The legal, managerial, and functional representation of an organization Critical for reporting Most often managed by Finance/Accounting function; important definition for Payroll processing Includes configuration related to Enterprise, Ledgers, Chart of Accounts, *Legal Entities, *Business Units etc.. Workforce Structure HR centric representation of an organization Includes configuration related to *Divisions, *Cost Centers, Departments, Locations, Grades, Jobs & Positions etc *We typically see significant collaboration between the Finance and HR functions in defining and managing many of these structures. 24

25 Enterprise & Workforce Structure Business Unit Minimum one Business Unit for each ledger that utilizes the subledgers (e.g, AP, AR, FA etc.) As a general rule, more centralized subledger functions will result in fewer Business Units Organizational representation of how transactions are processed Note: ERP can have their "own" BU and HCM can have their "own" Division Alternate definition of management hierarchy, related to your legal structure, the business organizational hierarchies do not need to reflect directly the legal structure of the enterprise. The management entities and structure can include divisions and subdivisions, lines of business, and other strategic business units, and include their own revenue and cost centers. Optional structure; typically used when a single organization offers significantly different products or services or geography is a significant lens for reporting Locations Identifies physical addresses 25

26 Enterprise & Workforce Structure Cost Center Represents the smallest segment of an organization for which costs are collected and reported ONLY Represented via a segment value in the chart of accounts Departments A department is an organizational structure with one or more operational objectives or responsibilities that exist independently of its manager and that has one or more employees assigned to it A construct pervasive in the HCM application It may or may not be specified as chart of account segment values Cost center and department configuration may be unrelated, identical, or consist of many cost centers tracking the costs of one department. 26

27 Enterprise & Workforce Shared Value Caesars Design Decisions 27

28 Legal Entity Definition ERP vs HCM Interpretations Legal Entity Caesars COA COA configuration Defined as a "parent" as part of the hierarchy setup in the COMPANY segment Represents a rollup of company values that represent that Legal Entity All GL reporting for Legal Entity will be handled through hierarchies within the COMPANY segment. Oracle Legal Entity Structure Structure defined as part of the Oracle configuration Setup Shared by both ERP and HCM Legal Entity components Name, Address Country TIN/EIN ERP Use for LE Structure Can leverage for defining intercompany balancing Taxes HR Use for Employee setup 28

29 Department and Cost Center ERP vs HCM Interpretations Reminder that Cost center and Department configuration can be unrelated, identical, or consist of many cost centers tracking the costs of one department? ERP Point of View "Cost Center" is a COA label that designates the segment in the chart where P&L balances are most often recorded. Used to facilitate reporting for predefined reports. Will be the DEPARTMENT segment in the chart. HCM Department will be the actual name of the department employees are currently assigned to in legacy systems. Ex: "Fringe Benefits Department" Department will be the same name in ERP and HCM and linked Will department be rationalized? ERP? HCM? 29

30 Location ERP vs HCM Interpretations Location HR has a need for Division and Area to be setup at the Location level and effective dated with the ability to report historically Initially, the creation of DFFs on the location table to house the 2 values sets has been discussed Ensure an understanding if this data needs to be in the COA or leveraged by Finance Location ERP is a physical location. It is needed for each legal entity Possible future need procurement may need more detail address for ship to and ship from 30

31 Oracle References Oracle White Paper: Title: "Multiple Pillar Oracle Cloud Implementation Best Practices" Published September 2017 Oracle Financials and Cloud HCM Location: Topics Covered: Shared Configuration Shared Integrations Guidance Order of Implementation Big Bag HCM + ERP Financials then HCM HCM then Financials

32 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

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

34 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.