“ Opportunities multiply when seized” - the journey to Transformation - Fabienne van Booma-de...

“Opportunities multiply when seized”

- the journey to Transformation -

Fabienne van Booma-de SmitVice President Finance South Europe

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential2

Oracle Corporation

Scale $37.2B in revenue on a trailing twelve-month basis #1 in 50 product or industry categories 400,000 customers in 145 countries 25,000 partners 122.728 employees 15 million developers in Oracle online communities

Innovation and Investment 35,000 developers and engineers 18,000 customer support specialists, speaking 29 languages 20,000 implementation consultants 870 independent Oracle user groups with 355,000 members

*GAAP revenue reported in USD as of May 31, 2013


Oracle’s Business Transformation: Two Phases

Get Oracle’s internal operations in order

Simplify. Standardize. Centralize. Automate.

Implement plain-vanilla Oracle software to run our business

Enhance decision-making and accountability

Increase margins

PHASE I (1998 - 2003)Objectives: Undertake an aggressive acquisition

strategy to expand our portfolio

Add a new line of business –hardware

Utilize proven best practices from Phase I to accelerate operational savings

Scale business profitably

PHASE II (2004 - 2011)Objectives:


Oracle’s TransformationSimplify, Standardize, Centralize & Automation

Shared Services Self Service

Processes Applications

Organization Data Center

Network Data


Operational Excellence: ‘Doing things right'

Business Re-Engineering at Oracle

Simplify processes

Standardize systems and processes

Centralize in shared service centers

Automate processes

1

2

3

4


Business Engineering at Oracle

From To

Simplify Old way Best way1


Oracle’s Transformation: The Billion Dollar Story

1998 2003 & Beyond

• 65+ financial apps instances Global Single Instance (ERP)

• Fragmented Data: tens of thousands of spreadsheets

Global Data Warehouse

• Inconsistent Processes Global Processes

• Local Support Shared Service Centers

• Local Decision Making Centralized Decision Making

• Autonomous Countries Multi National Corporation

• Geographic Functions Global Functions

• Country Infrastructure Simplified Global Infrastructure



From To

Simplify Old way Best way

Standardize Many ways One way

1

2


Standardize Systems and Processes

Strategies

Standardize policies and business rules

Adopt best practices

Identify global process and application owners

Use open technology standards

Minimize number of IT systems

CENTRALIZE Decision-making Where Possible


Partner with the Global Process Owner Global process definition Best use of technology

Support Single Instance and Shared Services Strategy Application support & implementation services

Evaluate Shared Service Center Process Use of technology Responsibility profiles and organizational structure Efficiency, effectiveness, relevance, best practices Global headcount requirements

Act as Champion of Global Process & Articulate Strategic direction Understanding of global requirements Business needs and service level standards

Standardize … ONE Best Global ProcessLinchpin of Standardization Program

GLOBAL APPLICATION OWNER In IT

GLOBAL PROCESS OWNER In Business



From To



Centralize Many locations Few locations

1

2

3


Move to Shared Services

Grow the business while controlling costs

Increase customer satisfaction by improving service levels

Increase levels of control

Fast integration of Acquisitions


EMEA Finance SSC – Initial scope in 1999

42 Countries

15 Processes

Dublin


Shared Services ModelPhase 1: 1:1999-2003

Move Tactical Processes to lower-cost locations

Set up FP & A Team in Bangalore

Evolution of GL Function in SSC to Global Controllers Organisation (GCO)

Move remaining local processes to SSCs or GCO

Leave Business Finance Local


Bangalore, India

&

Bucharest, Romania

Process overview – post 2004


Centralize in 5 Shares Service Centers (SSC)197 Countries, 22 languages

Controllers Order Entry AR / Cash Apps Exp Reporting Purchasing Fixed Assets Project Acct Credit & Collections Customer Data AP Comp Admin

197 Countries Controllers Revenue

Recognition

113 Countries

ControllersRevenue

Recognition Procurement Comp Admin Exp Reporting

Customer Contracts Credit & Collections

11 Countries

Customer Contracts Credit & Collections Exp Reporting Procurement Comp Admin

50 Countries

113 Countries


Benefits of shared Service Consolidation

Quantitative Qualitative

PeopleHC reductionsLower $ per head

Higher service Redeployment of skills

Process Increased efficiency Improved quality through self-service

Standardized global processesOne change for allGreater agility to respond to change

TechnologyConsolidated infrastructureFaster upgradesScalable platform

Management dashboardsEasier support & maintenance

BusinessF&A costs lower by 30%Payback in 28 months

Focus on the business & control Integrate acquisitions fasterCorporate governance & compliance

InformationAccurate, meaningful, consistent &

timely Improved decision making


Role of VP Finance – South Region2003

• Business Partnering

• Contracts

• Comp Admin

• Employee Expense Processing

• VAT

• Statutory Accounting

• Payroll

= Approx. 150 heads

2011

• Business Partnering

= 15 heads


BusinessPartneringBusiness Partnering

Completely aligned to Sales Organisation - Commercial focus Provide Strategic Finance Leadership to the Business Provide timely, pro-active analysis and information to enable the Business to

make the right decision at the right time Drive execution of P&L goals, highlight & mitigate risks, monitor progress Go beyond decision support: Take ownership and make things happen Lead Planning cycle, Business Reviews, Approval processes, Business

Presentations Take a holistic view of the business

Face ofFinance


BusinessPartneringFace of Finance in Country

‘Direct the traffic’ to the appropriate Centre for timely resolution of Finance issues (Commission/Approval /Financing/Credit Check / RevRec Issues/Payroll / AP etc.)

First level Finance support on many issues – Revrec,Credit Work with each of the centers to standardize and optimize global processes.

Ensures exceptions are minimized based on local statutory knowledge Support Workers Council discussions to ensure smooth business activities

and minimize legal risks for Oracle Local Finance Leader keeps ‘One Finance team‘ in Countries together,

regardless of functional role and reporting lines Represents Finance on Local Country Strategy/Leadership Teams

Face ofFinance



From To



Centralize Many locations Few locations

Automate Manual Automated

1

2

3

4


Automate Processes

B E N E F I T S

• Unified data model

• Lower costs

• Fewer errors

Reduce process complexity

Organize around end-to-end processes

Use an integrated application architecture

Integrate systems enterprise-wide

Reduce paper flow with employee self-service


Challenges

Statutory, Tax and Cultural differencesHighly refined local solutions

Applications FunctionalityCustomizations

Local Decision MakingPriority Conflicts & Swift ApprovalsResource BandwidthMultiple Sources of Truth

Languages & Character SetsCommunication & Managing

ExpectationsAggressive Scheduling &

TransitioningBusiness Process

interdependenciesAdherence to Process ChangeResistance to Change

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