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