How Two Companies Operate Globally:1 Business, 1 Instance, 1 Source of Truth, and 1 R12 Upgrade

Thursday, April 22, 2010

9:45 AM – 10:45 AM

Reef D

Helene Abrams Founder and CEO – eprentise, LLC

Paul Phillips Manager – Oracle EBS Development – CARQUEST Technologies, LLC

Bob Von Der Ahe Director, Global Projects – Experian Global Corporate Systems

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Session Objectives

Learn how to plan for a global consolidation and

get support from both the business and IT.

Examine the reasons that Carquest and

Experian wanted to consolidate their instances.

Focus on what decisions needed to be made,

the impacts of those decisions, and success

factors.

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Oracle E-Business Suite Customer Trends

Consolidate for operating a shared service center or a centralized data center.

Resolve duplicates and standardize data.

Merge all configuration, master, and transaction data.

Reorganize entities, sets of books, and operating units.

Reduce operating and maintenance costs.

Create a single source of truth.

Enable revenue optimization.

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CARQUEST

CARQUEST Auto Parts is the premier supplier of

replacement products, accessories, supplies and

equipment for virtually all makes of automobiles, as well

as light and heavy-duty trucks, off-road equipment,

buses, recreational vehicles and agricultural equipment.• Automotive aftermarket is worth more than $250 billion and growing annually

• CARQUEST Auto Parts Stores are local, independently owned and operated

businesses with deep roots in their communities – 16,000 teammates

Private Company with 3,000 locations in North America

and 43 years in business CARQUEST Canada extends our network throughout Canada

Oracle 11i - GL, AP, AR, FA, PO, HR, Payroll

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Experian (LON:EXPN)

Global information services company.

Provides data, analytical tools, and marketing services to organizations and

consumers to help manage the risk and reward of commercial and financial

decisions.

Known for its comprehensive understanding of individuals, markets, and economies.

Helps organizations find, develop, and manage customer relationships to make their

businesses more profitable.

Promotes greater financial health and opportunity among consumers by enabling them to

understand, manage, and protect their personal information.

Constituent of the United Kingdom's FTSE 100 index.

2009 Revenue $3,821 USD (millions).

Clients in more than 65 countries.

15,000 employees in 40 countries.

Oracle 12.0 – All Financials, All HR Modules

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Challenges of Globalization

GloballyEach country with their own Finance, HR, Billing SystemsHundreds of FTEs identified as performing reporting activities in Finance

Many staff in multiple locationsMany disparate processes, procedures

Made very little sense for 10% of the revenue to be burdened by the cost structure of an entire EBS instance and support.

Regional production instances were an obstacle to business improvements

Multiple general ledgers, employee records, and system interfaces

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Why Consolidate Instances?

Reduction in infrastructure costs (hardware, maintenance, licenses)

Reduction in personnel to support multiple systems

Provision of better customer service and the ability to operate globally

Agility to grow and to embrace new initiatives

Global Reporting/ Analytics

Facilitate efficient and effective decision making with timely and reliable fact based information

Access real-time information at consolidated level

Create Centralized Shared Services (maintenance, setup, centralized processing)

Eliminate duplicate integrations and interfaces

Lower license and support fees

Operation of a single business with consistent data, streamlined processing and the ability to leverage markets, suppliers of other parts of the business

Consistent Business Processes

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Database Consolidation

con·sol·i·da·tion (kәn-sŏl′-ĭ-dā′-shәn)

n.

1. As it relates to databases – the migration of multiple,

heterogeneous systems so that they run on a single hardware

and/or software instance, resulting in cost reduction, improved

operational efficiency, and the development of more responsive,

dynamic, and customer-centric IT systems.

Although estimates vary widely, in many cases

companies are able to save upwards of 40 percent of

their on-going IT costs from a consolidation project.

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Roadmap to a Global Business – 3 Imperatives

All of the data must be

consolidated into a single instance.

There must be a single Chart of Accounts that

meets all of the legal and reporting

requirements of the business.

All of the data and business

processes must be complete, consistent, correct, and

accessible to those who need

it.

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CARQUEST Road Map

USA 11i

Canada 11i

History

Canada

History

US

Consolidation, June 2010

Canadian Instance

US Instance

eprentise Consolidation

CARQUEST

Global – 11i

History

US

Canada

CARQUEST North

America – R12

R12

Upgrade

Upgrade date TBD

Nov. 2009 June 2010

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Experian - Diamond Road Map

Unify – 11i

• Spain and

Hong

Kong

COA v.1

• Europe

COA v.2

COA v.2Unify – R12

• Europe,

Spain and

Hong

Kong

COA v.2

• US and

UK Global

COA v.3

R12

Upgrade

January 2009

FlexField

Europe

June 2010

Unify – R12

• Spain and

Hong

Kong

COA v.1

• Europe

COA v.2

UK – 11i

UK COA

US – 11i

US COA

UK “Open”

Custom

Extract &

Transform

Scripts II

US “Open”

Custom

Extract &

Transform

Scripts I

Unify – R12

Europe,

Spain and

Hong Kong

COA v.2

FlexField

HK & Spain

September 2009

Convergence

January 2010

Unify – R12

All

Countries

and

Regions

Global COA

v.3

Global

COA v.3

History

Europe

Spain

Hong Kong

UK

US

History

US

History

UK

History

Europe

Spain

Hong Kong

UK – 11i

UK COA

US – 11i

US COAHistory

US

History

UK

January, 2009 June, 2010

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Results

CARQUEST

All history moved

No need to configure new

responsibilities, new operating

units, new parameters

One instance – no sunset

instance to maintain

Only had to redo Canadian

interfaces, RICE,

customizations

Still need to upgrade to R12

Experian

Spain, HK, Europe all history

US, UK 2 years history

Maintaining 2 (R11i) sunset

instances for history, OBIEE

All interfaces, RICE objects,

customizations need to be

redone

Time spent in configuring Unify

instance to accommodate

additional data (org units,

ledgers, etc.)

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Taking Advantage of R12 Functionality

R12 Enhancements

Common

Accounting Engine

Subledger

Accounting (SLA)

Multi-Org Access

Control (MOAC)

No more sets of

books Ledgers

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R12- Global Financial Management

Analytics

Transaction Entry

Accounting & Tax

Audit, Reconciliation

& Drilldown

XML Publisher Reporting

Operations in US, UK, France Simultaneous

Accounting for All

Entities

While Ensuring

Corporate

Visibility & Local

Compliance

Global Visibility, Auditability, and Control

US GAAP

• Global COA

• US Calendar

• $

US GAAP

• Global COA

• US Calendar

• £

US GAAP

• Global COA

• US Calendar

• €

French IAS

• Global COA• French Calendar

• €

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Ledgers and Secondary Ledgers

Can be combined into ledger sets

Define create accounting rules and events

A single transaction will update multiple ledgers

according to rules

Widely applicable to foreign subsidiaries, compliance

with multiple regulations (IFRS, US GAAP)

Streamlines close process, ensures consistent

financial reporting

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Multi-Org Access Control

Provides the ability to manage customers and suppliers across operating units without changing responsibilities

Users can be assigned to multiple operating units

Processes and transactions can span operating units

Increases efficiency of operating a shared service center

Streamlined access, processing, and reporting

Provides the ability to negotiate with suppliers and leverage purchasing power

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1 Business, 1 Instance, 1 Source of Truth,

and 1 R12 Upgrade

A single global Chart of Accounts and a single global

instance enhance functionality

Reduces time spent compiling, reconciling, and consolidating

financial data

Reduces close time between modules and GL

Standardizes accounting policies across the enterprise

Define rules, interfaces once

Everyone adheres to the same set of rules and definitions

Full drill-down, roll-up, auditability

Corporate consistency and global visibility

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Conclusion: One World, One System,

A Single Source of Truth

Results of a single global Chart of Accounts and single global instance

› Take advantage of R12 functionality

› Additional cost savings

Interfaces only have to be written once

Analytics have a complete view of all the data without ETL from multiple diverse

environments

Smaller IT infrastructure footprint produces lower cost of ownership

Efficiencies of operating as One Business

› Managing global view of customers, suppliers

› Consolidating financials

› Shared service center

› Standardized pricing and discount policies

› Managing inventories

Questions?

Thank You!

Bob Von Der Ahe Experian Global Corporate Systems

bob.vonderahe@experian.com

Paul Phillips CARQUEST Technologies, LLC

paul.phillips@gpi.com

Helene Abrams eprentise, LLC habrams@eprentise.com