Delivering an Enterprise-Wide Standard Chart of Accounts with Oracle DRM

Biography Gary Crisci EPM Principal Technologist Oracle Ace (BI/EPM) ODTUG B.O.D. Co-Author: Developing Essbase Applications 15+ Years Finance/IT Experience Gary.Crisci@ge.com http://garycris.blogspot.com http://twitter.com/garycrisci

About GE

GE - Our Businesses Revenue: $B Revenue: $B Revenue: $B Revenue: $B Leading globally in power generation & water technologies Pushing the boundaries of technology in oil & gas to bring energy to the world Enabling utilities and industry to efficiently manage electricity from the point of generation to the point of consumption Providing our aviation customers with the most technologically advanced & productive engines, systems & services for their success Revenue: $B Revenue: $B Revenue: $B Developing transformational medical technologies & services that are shaping a new age of patient care Being a global technology leader & supplier to the railroad, mining, marine, stationary power & drilling industries Answering real-life needs, defining trends & simplifying routines. Leading a global lighting revolution to deliver innovative solutions Investing financial, human & intellectual capital to help our customers build their businesses Source: 2014 GE Annual Report

GE is consistently ranked as one of the world’s leading corporations

100+ Year Brand Legacy 1912 The Guarantee of Excellence on Goods Electrical 1915 Largest Electrical Manufacturer in the World 1920s Initials of a Friend…GE 1930s Live Better Electrically 1940s You Can Put Your Confidence in General Electric 1950s We’ve Got A Patent on Progress 1960s Progress is Our Most Important Product 1970s Progress for People; Men Helping Man 1979 We Bring Good Things to Life Imagination At Work 2013 GEs Leadership Philosophy: “Together, We All Rise”  

Business Case

Our environment Global Growth & Operations (GGO) role is to enable faster and more profitable growth. Global Operations is tasked with building a world-class enabling function through standardization and simplification for enhanced scale, speed, and customer value. Simplify the GE structure – running the company better… Enterprise Standards help get us there… 2

What is an Enterprise Standard? A set of consistent principles, or standards, to be applied across GE globally for key operational and financial transactions. Enterprise Standards streamline processes and the global systems infrastructure to drive simplification and reduce complexity across the company. Approach Platforms Processes Roles/Ownership Provide guiding principles Share key tenets to drive standardization Formalize specific decisions Identify preferred technology solutions Develop architecture that supports the regions Create transactional solutions Define data standards Ensure consistency across the company Document process flows Identify key activities and controls Define organization structures and ownership Define roles and responsibilities Develop metrics, KPIs, SLAs Enables profitable GE growth and creates a better way to do business “Simplification gives us an opportunity to do even more” – John Rice

Why Enterprise Standards? Legacy Future GE is complex. Through acquisitions and/or growth, we’ve added complexity. Complexity adversely impacts our customers and our people. Maximize use of shared services. Leverage our scale to be competitive in a fast paced world. Be more responsive to customers and the business. Numerous systems, processes and centers Multiple business units, locations and delivery models Numerous SOPs, SLAs, contracts and Statements of Work Formalized policies Leverage existing best practices Integrated GE master data Decreased platform(s) and tools enabling finance Enterprise Standards drive simplification and enable profitable GE growth

Current Enterprise Standards Source to Buy Includes the processes of setting up a supplier, negotiations with the supplier, approval of a supplier and requisitioning, and ends with a valid PO to hand off to the Accounts Payable process. Buy to Pay The processes for receipt of an invoice, matching it to a PO, and payment to the supplier. Fixed Assets Establishes standard processes for the initiation, acquisition, maintenance, disposition and reporting of the Company’s property, plant and equipment assets. Record-to-Report* Describes the process to account for and report financial transactions initially recorded within Buy-to-Pay, Invoice-to-Cash, Fixed Assets, Source to Buy, Payroll, and other financial processes. Enhancements to this Standard will define standard process workflows and shared service components of the Record-to-Report activities. Invoice-to-Cash Includes the Accounts Receivables processes of invoice distribution, collections, dispute facilitation, cash application and reconciliation. Stat & Tax Defines common processes and platforms for the statutory accounts, corporate income tax (CIT) and value added tax/goods and services tax (VAT/GST) return preparation and filing processes. Customs Contains standards, policies and governance for the management of customs activities (administration and collection of the duties levied by a government on imported goods).Enhancements to this standard will define standard process workflows for exports. Payroll Describes standard processes for payroll processing, from transmission of employee data to payroll calculation and processing the employee payment, to tax reporting and accounting. Travel & Living A single GE-wide policy governing T&L expenditures and reporting. * Enterprise Standard or enhancements in process

Today’s landscape is transforming Biz GL Simplification ’16 Target n Aviation Capital Corp. EM HC H&BS O&G P&W Trans. Total GL Today x y Multiple chart of accounts by ERP Varying business processes Mandates Single “operational” chart of account Last calendar day Standard finance system architecture (i.e. HFM, Planning) All ERPs “Shared Services enabled” Targeted reduction Prior to adoption, business ledgers will operate on both legacy charts of account and the Enterprise Standard chart of account

Solution Overview

Corporate EPM capabilities – start with a good team Development Operations Cross business standard design consultancy & implementation Comprehensive 24X7 support and health check-up assistance Reporting … Hyperion project resources to assist in view and form creation App admin … Comprehensive support during financial open/close period Consultation … Solution architects to provide guidance to Hyperion ES global designs Metadata management … Consistent management of corporate governed code blocks Integration team … Hyperion expertise across EPM technologies to ensure consistency across Hyperion services … Application health checkup assistance and troubleshooting Infrastructure Scalable infrastructure delivery with Hyperion suite of products State-of-the-art dedicated Hyperion environments Sandbox environment to perform tests for patches & versions Experienced Hyperion infrastructure GE support teams Reduced testing and deployment time due to centralization Holistic end to end service offering from deployment to operations management to drive standardization and cost efficiency

Technology is an enabler Functional Requirements Must be well defined Understood Agreed upon Must have a strong partnership with functional stakeholders

Enterprise Standard code block – functional definition External reporting S18 S19 S2 S4 S5 S7 n n n n n n Business Consolidation S1 / S16 S2 S3 S7 Analytic Dimension n n n n Enterprise Standard Oracle Code Block Ledger S1 S2 S3 S6 S8 S9 S10 S11 S12 Future Use 1/2 n n n n n n n n n n/n Enterprise Standard SAP Code Block Ledger S1 S2 S3 S7 S8 S10 S11 S13 S6 S14 S15 n n n n n n/n n n n n

DRM strategy Importance of DRM (Master Data Management ) for the ES COA Foundation for one company wide COA … one source of the truth Governance of enterprise segments & hierarchies at company level Governance of business segments & hierarchies at business level Standardized reporting of FP&A metrics Standard usage of accounts Transparency of business general ledgers to reporting of Financial Statements (10Q/K) Cornerstone to drive supplemental data collection simplification and accuracy DRM Implementation Timeline … Key Milestones 2Q13 1Q14 1Q15 DRM global design & system requirements Shared Services Platform as a Service Deploy ES DRM … ready for business use Governance & business DRM integration Integrated & funded global deployment plan Global Design ES DRM Business DRM Integration Governance Design Benefits Governance Pilot Strategic platform to enable the adoption of ES Chart of Accounts (COA) across the company Critical path dependency for business adoption of ES COA

Solution Architecture

The federated model AVDRM CODRM EMDRM HCDRM ESDRM LTDRM OGDRM PWDRM TRDRM

Oracle Data Relationship Management (DRM) DRM is an Oracle product used to manage Enterprise master data. Master data is stored in hierarchical structures within the application. The application applies rules that govern the addition, enrichment, and removal of data. Master Data is made up of Nodes and Node Properties.

Oracle Data Relationship Governance (DRG) DRG is a module to create workflows that enable users to create and enrich nodes and properties in a DRM application. DRG Workflows allow non-IT users to create or make changes to nodes. Governance Rules enforce continuity and data integrity. Workflows can be built with varying levels of functional approvals.

The Enterprise DRM Single source for all governed hierarchies that have consistent data across the enterprise Managed in one central DRM application and then synchronized with the subscribing business DRM’s

The Subscribing Business DRM Each subscribing business has its own DRM application Each subscribing business DRM contains data synchronized from the Enterprise DRM in addition to non-governed “Business” master data

DRM Hierarchies Non-Governed Segments Governed Segments S15 S16 S17 Centrally managed Requires enterprise level approval Drives consistency in COA Makes up majority of code block Locally managed at business level Only requires business level approval Allows for unique business requirements

Hierarchy stats Rationalized 3x – 4x reduction

Versioning Strategy Title or Job Number | XX Month 201X See tutorial regarding confidentiality disclosures.

Governance Approach

Oracle Data Relationship Governance (DRG) Module to create workflows that enable non-IT users to create and enrich nodes and properties Governance rules enforce continuity and data integrity Workflows can be built with varying levels of functional approvals

Tying it all together

DRM HUB (GE custom “data store”) The DRM HUB is an Oracle relational database built to share data within the master data ecosystem. The DRM Hub provides an integration layer for DRM applications to publish hierarchies and mappings to tables that subscribing systems can easily query. For convenience and better control, views are created to provide subscribing systems access to the exact data they require. The DRM HUB is the central location for disseminating master data. Non-governed segments are exported from Business DRMs to the DRM HUB to facilitate a common collection of master data for Shared Services applications. The DRM HUB is a Read Only environment. No data will be published into the HUB that does not originate in a DRM system.

Automated Task Scheduler Synchronization Migrates data from ESDRM to BUDRM utilizing native DRM Import/Export functionality Scheduled exports to publish data to HUB Runs Custom SOA application to migrate objects from ESDRM to BUDRM Automated Task Scheduler

Master Data Eco-System DRG ESDRM Governed Segments HUB Target Systems Synchronization Process Non-Governed Segments DRG BUDRM Master Data Eco-System

Knowledge Management

Communication Strategy and Resources ESDRM SC site – Workflows and Access requests, General Business Documents ESDRM Colab – General Project Comms, Release items & Scorecards Bi-weekly All business meetings Weekly touch points with each business Open items issues log in SC and posted to Colab weekly DRM Wiki page – program mission, data dictionaries, Hub info, shared links

Lessons learned (still learning)

“Perfect is the enemy of good” Lesson 1 “Perfect is the enemy of good” - Voltaire Be strong in your principles, but flexible in your approach

Lesson 2 "Wisdom too often never comes, and so one ought not to reject it merely because it comes late.” -Felix Frankfurter Be willing to change even when it means admitting you were wrong.

Thank you.