Post on 03-Apr-2020
The Enbridge Finance Transformation Journey
Introductions
Paul Russell Enbridge • Director IT, Enterprise Financial Systems
David Evans KPMG
• Quality Assurance Engagement Partner • Steering Committee Member • Partner, Canada Transformation Lead
Aman Bagga KPMG
• Acquire to Retire Stream Lead • Managing Director, US Oracle Enterprise Solutions
Enbridge - Background
• Key player in energy Industry
• Largest pipeline in North America
• Listed on TSX and NYSE
• Operations in Canada & USA
• Significant Growth – $10B to $50B in Market Cap in 10 years
• EPS growth >11% for 5 years prior to program
Finance Renewal Program – Benefits
• Created a scalable Target Operating Model (TOM)
• Improved business analytics and platform for growth
• Focus on enhancing the utilization of Oracle to free up people’s time
• Identification of cost saving opportunities
• Improved processes and governance
• Standardization of processes throughout the finance organization
• Centralized governance, accounts payable through shared services
• Quality and sustainability of finance functions through Centers of Excellence.
• Reduced risk
• Long term risk reduction, eliminated reliance on excel
• Reduction of manual activities through automation
• Improved cash and working capital forecasting
First steps in our journey...
• The case for change
• Over 10 years of Oracle 11i functionality
• Started a 6-month road trip in 2010 led by Directors from Finance and IT
• Built the case for change:
Support growth agenda Reduce financial statement risk Improve F&A work/life balance for retention purposes
• Gained support from CFO, Directors, Managers
• Received unanimous approval:
• CFO Sponsorship
• Executive Leadership Team (ELT)
• Audit Committee
The right team
• Strong team seconded from Enbridge Finance and IT
• KPMG • Capabilities extending from strategy through to implementation • Strong Finance process knowledge • Deep Oracle functional experience • Rigorous project management governance
• Oracle Solution Assurance
• Collaborate with Oracle Development • Breadth of R12 applications
• DataVail
• Vast pool of DBAs and database tuning expertise • Data conversion performance improvement consultation
Setting our sights
• Scope
• Transformation of Finance
• Processes: Record-to-Report, Acquire-to-Retire, Procure-to-Pay, Invoice-to-Cash, and Tax
• Oracle Applications: GL, AGIS, PA, PM, FA, PO, INV, AP, AR, eBTax, and MarkView
• Technical: over 5,000 customizations
• Upgrade 11i to R12
• Built Target Operating Model (TOM)
• Documented business process pain points
• Provided R12 delta training to highlight features
Project launch creating a compelling vision
• U-Collaborate set the vision, gained alignment on the change program and cleared roadblocks
Proper design for the future
• Desire for Finance-wide transformation
• Exploit new features in R12
• Revised our R12 implementation path
• Main drivers to re-implementation rather than upgrade
• Chart of Accounts (COA) redesign
• Rationalized operating unit and legal entity structure
• Streamlined inter and intra company transacting
• Re-implementation increases benefits & project costs
• Focus on data conversions
• Highly complex, long-duration project data scrub
• Refresh COA and all the data associated
Testing the solution
• Test often, test early…led to very few post go live issues
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Benefits: Provides greater control Reduces risk Drives alignment around common processes Builds confidence
CRP1 Process & Design Validation
CRP2 Build Validation CRP3
Final Implementation Validation
UAT Final Acceptance/ Production Certification
CRP/testing cycles validate and increase the confidence in the solution’s design
Preparation, preparation, preparation
• Planning for the outage
• 2,400 line cutover plan, accuracy to the 15-minute measure
• Daily scrum and refinement of the project plan
• Rigorous and formal approval process
• Unanimous buy-in from stakeholders to proceed to go-live on R12
• Business process leads onboarded their controllers across enterprise
• Controllers onboarded their VPs (Steering Committee)
Arrival at destination Finance Transformation
• Go-Live January 2015
• Change Agent Network effectively worked with local business
• Minimal Severity 1 defects
• Achieved business continuity with measurable gain in business process efficiency and technical throughput
• Team members benefited
• Finance team members placed in new roles
• IT team members broadened their skill sets substantially
• Technology team supporting new OBIEE platform and R12
Some of the results of our journey
• Refreshed Chart Of Accounts coupled with Record to Report Center of Excellence
• Established Finance Centers of Excellence (R2R, A2R) and AP SSC
• Automated secondary ledger reporting for FERC in US
• Automated PST and HST calculations
• Rationalized management reporting – approx. 4,000 reports into approx. 300 reports using Oracle Enterprise Analytics
• Substantially reduced overall customizations in Oracle
• Created sizable UPK training course library of all key finance processes
• Refreshed aging hardware, added back end monitoring tools to ensure system is stable and performing well and added automated testing routines
• More robust sign-in authentication and encrypted, stacked data flow