Deploying Fusion HCM and ERP within Oracle A case study Krithika Bhat, VP Oracle Application Labs...

Deploying Fusion HCM andERP within OracleA case study

Krithika Bhat, VP Oracle Application LabsNayyar Siddiqui, VP Oracle Application LabsMike Moran, Senior Director Oracle Application LabsSept 29, 2014

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Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Agenda

Fusion at Oracle - Goals and Strategy

Current & End State

HCM Cloud Implementation

Pilot ERP & HCM Cloud Implementation

Benefits and Lessons Learned

ERP Cloud Strategy

1

2

3

4

5

6


Fusion at Oracle – Goals and Strategy• Prove out Fusion Applications− Ensure other customers will have a good adoption experience

• Continue to run global single systems− Avoid too many interim phases in moving to Fusion Applications

− Do not devolve global systems into multiple regional systems

• Use Fusion projects to improve Oracle business processes− Foundational changes: Global standard chart of accounts

− Process automation: Talent Management


Define global standard Chart of Accounts for Oracle

Adopt Fusion Accounting Hub, initially for consolidations

Use representative global business to pilot ERP & HCM Cloud

Adopt HCM Cloud

Adopt ERP Cloud5th

4th

3rd

Fusion at Oracle – Strategy

2nd

1st


Current State – ERP and HCM Systems at Oracle

Hyperion Reporting

Oracle R12HCM & Payroll

Projects

Core Financials

Supply Chain

Ordering Systems

Manufacturing

Service

Installed Base

Oracle Private Cloud

HCM for Oracle: Talent Management

and Workforce Compensation

OFSS: Core HCM, Projects & Financials

Fusion Accounting Hub

OBIEE Global Reporting Warehouse

BigMachinesTaleo Learn & Recruiting


End State – ERP and HCM Systems at Oracle

Fusion OBIA Corporate Reporting

Project Execution Management

Hyperion Reporting

Taleo Learn & Recruiting BigMachines


HCM Suite Financials

Projects Portfolio Management

Customer Hub

Supply Chain and Manufacturing Ordering

Sales Compensation

OTBI ReportingFusion Accounting Hub

Payroll Revenue Management Contracts


HCM Cloud


HCM Cloud - Current State• Live– Core HCM for large Oracle subsidiary (OFSS)– Talent Management– Fusion Workforce Compensation– Taleo Learn Cloud for multiple business units– Taleo Recruiting Cloud for front end hiring activities

• In progress– Fusion core HCM for Oracle– Taleo Recruiting Cloud for Offers and On-boarding


HCM Cloud Implementation Approach• Co-existence model with Oracle R12• Incrementally increase Fusion footprint• Uptake net new or stand-alone Fusion functionality initially• Pilot functionality before full global adoption• Get data migrations off critical path• Sync employee data master between Fusion & Oracle R12–Oracle R12 Fusion – prior to Fusion core HCM go-live– Fusion Oracle R12 – after Fusion core HCM go-live

• Oracle Transactional BI (OTBI) & Business Analytics (OBIA) for reporting


A Blueprint to Get to HCM Cloud End State


HR AnalyticsWorkforce Intelligence

Oracle R12

Payroll

Benefits

Time and Labor

Appraisals

Offering/Onboarding

January 2012

Compensation Workbench

Core HR


Talent Management


September 2012


Employee Data

Oracle R12

Payroll

Benefits

Time and Labor

Appraisals

Offering/Onboarding


Core HR


Talent Management

Learning and Development


December 2013


Oracle Public Cloud

Employee Data

Learn Intelligence

Employee Data

Oracle R12

Payroll

Benefits

Time and Labor

Appraisals

Offering/Onboarding


Core HR


Talent Management

WorkforceCompensation



July 2014


Oracle Public Cloud

Employee Data

New Hires Recruiting

Social Sourcing

Learn Intelligence

Oracle R12

Payroll

Benefits

Time and Labor

Appraisals

Offering/Onboarding

Core HR

Employee Data


Talent Management




Recruiting Intelligence

November 2015


Oracle Public Cloud

Recruiting

Social Sourcing

Learn Intelligence

Compensation Intelligence

Core HR

Historical Reporting

& on-boarding

Oracle R12

Payroll

Benefits

Time and Labor

Appraisals

Employee Data

New Hires

Employee Data


Talent Management



Recruiting Intelligence

HCM Cloud End State


Learn Intelligence

Compensation Intelligence

Core HR

Historical Reporting

Goals and Performance

Workforce Management

Global Payroll


Oracle Public Cloud

Recruiting

Social Sourcing

& on-boarding

Employee Data

New Hires


Oracle Financial Software SystemsAn ERP & HCM Cloud Pilot


Pilot ERP & HCM Cloud Implementation• Pilot Fusion Implementation with large subsidiary–Oracle Financial Software Systems – formerly iFlex

• 9,000 employees, 16 business units• $700m revenue• One of the largest IT organizations in India• Migrated from customized PeopleSoft system to Fusion• Live since July 2013


Oracle R12Oracle Private Cloud

OFSS Solution Summary

Order Management

Customer Master

Inventory Master

Support Contracts

Financials

HCMHCM

Projects

• Financials, HCM & Project Accounting on Fusion

• Order Management and Service Contracts on R12

• Bridge to Fusion for billing and accounting using Oracle Data Integrator

• Two way synch of HR data enables global HCM hierarchy, reporting and provisioning

• Oracle and OFSS financial consolidation performed in Fusion using Fusion Accounting Hub

OFSS HR

Orders

Oracle HR


Implementation Approach• A fresh start– Limit customizations– Not migrating history: limited to open GL balances, projects and employees

• Start with the end in mind– Solution defined based on Oracle requirements– Avoid later re-work

• Single global go live schedule– Not phased by country

• Change management– Training and communication plans as well as employee forums


Benefits & Lessons Learned


Benefits of Approach

Mitigate risk and business change

Define and prove out the solution before Oracle implementation

Build skills and expertise

Feedback to Development on real user experience

Incrementally add new functionality


How Fusion Has Helped Our Business• Reduced the number of steps needed• Reduced close cycle by 1 day Streamlined Consolidation

• Simplified HCM processes for job, assignments & comp• New functionalityProcess Efficiency

• User access only to data needed Improved Data Security

• Role centric UI• Job specific workbenchesImproved User Experience

• Oracle Social network to drive collaboration• iPhone based expense submission Social and Mobile


Lessons Learned• Get the big decisions right– Key structures for business units, legal entities, COA, jobs

etc.

• Review processes for simplification opportunities– Don’t just try to map existing processes to Fusion

• Reporting– Deploy OBIA for management reporting– Tuning and scalability options on custom BIP reports

• Limit migration scope– Focus on future transactions


• Use Oracle Functional Set-up Manager (FSM) where possible to automate set-ups– Be aware that may not include all attributes that you want to migrate– Breakdown into several FSM projects rather than single project

• Roles and security– Use standard roles as far as possible

• Training–Make sure teams trained in Fusion technology: Java, ADE etc.

Lessons Learned


ERP Cloud Deployment Approach


ERP Cloud Three Step ApproachPh

ase

1 Core FinancialsSelf Service FunctionsProjectsIndirect AP and ProcurementFusion Reporting

Phas

e 2 License and

subscription ordering systemsReceivables

Phas

e 3 Hardware ordering

systemsSupply chainDirect AP and Procurement


Overview of Phase 1Projects on Fusion

Retain single billing application with all Receivables on Oracle R12

Employee Self-service Functions on Fusion

Split Procurement and Payables flows across Fusion and Oracle R12

General Ledger on Fusion and Oracle R12

Cash Management and Inter-company needed on both Fusion and Oracle R12

Fixed Assets on Fusion



ERP Cloud Phase 1 Architecture

General Ledger:

▪ Consolidated primary ledger

▪ Stat ledgersFusion Accounting Hub

Core Financials:

▪ Assets

▪ Expenses

▪ Payables - Indirect

▪ Procurement - Indirect

▪ Cash

▪ Inter-Co

HCM:

▪ Core HCM

▪ Compensation

▪ Talent Management

▪ Skills

Projects Suite:

▪ Costing

▪ Billing

▪ Resource Management

▪ Forecasting

Oracle R12

Contract Imaging

Sales Compensation

General Ledger

Accounts Payable - Direct

Accounts Receivables

PA Invoices

GL BalanceTransfer

Supplier, Customer, Key Set-up

Property Manager

Revenue Entries

Inter-Co (for hardware)

Fusion Customer Hub

Rebate Management

Global Corporate Warehouse – Fusion OBIA

Finance

Projects

Supply Chain

Manufacturing

Blended Fusion / R12 data

Procurement - Direct

R12 data

Revenue Management

Service Contracts and Installed Base

HCM: Appraisals, Payroll & OTL

Supply Chain & Manufacturing

Quoting, Contracts and Fulfillment


Why This Approach?

Reduced Risk Through Phased Approach

Leverages Product That is Available Today

Ensures Revenue and Billing Functions Not Impacted

Single Source of Truth for Receivables

Minimizes Impact to the Close


Challenges With This Approach• Accounts Payable is split across Oracle R12 and Fusion• General Ledger consolidation from Oracle R12 to Fusion with operations

split across separate ledgers and separate ‘Chart Of Accounts’• Reporting solution must provide complete management and operational

reporting• Need to maintain a single source of truth for customers• Need to maintain a single source of truth for suppliers• Projects Invoices must be ‘bridged’ to Oracle R12 Receivables• Closer co-ordination of close needed as operations split across systems


• Manage as a program and break down into manageable sub-projects–Migrations– Statutory ledgers and sequencing– Sub-ledger close and the impact to the close process– Intercompany reconciliations– Flow by module– Customizations and localizations– Key functionality gaps– Source of truth for customers, suppliers and synchronization– Reporting including blended reporting with Oracle R12

Addressing the Challenges


• Disposition customizations and localizations• Scrub supplier list• Map standard functionality to processes• Understand in detail impact of close processes • Identify areas to automate• Review statutory ledger health• Review processes and simplify• Identify areas of migration• Ensure R12 projects can be leveraged in the end state• Review “Chart of Account” segment structure• Partner with business contacts; divide and conquer approach• Review applications that will still be on R12

Best Practices


What is the Current Project Status?• Completed workshop with business partners

covering 40+ sub projects• Each sub-project has ‘next steps’ identified• Build / test phase on Release 9 will start in October• First Conference Room Pilot is in planning phase• A reporting requirements workshop will be held in

November


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Deploying Fusion HCM and ERP within Oracle A case study Krithika Bhat, VP Oracle Application Labs...

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