Power Hour Multinational User Global Implementations & Lessons Learned, Global Users Share Their Experiences OAUG Webinar July 20, 2016 Presented by

COPYRIGHT CELANTRA SYSTEMS Our approach today… Reprise of popular Collaborate 16 session that broke off into three discussion groups Today, we have a panel of experienced users Please ask us questions through the dialog box 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Three areas we will discuss today Global Processes and Oracle Org Design Local Requirements and Legal Compliance Project Sponsorship, Scope and Management Global Processes and Oracle Org Design Standard processes, each with different reporting outputs (e.g. Corporate vs. Statutory) Service-based Operational Model Flexible Legal and Operational Organizational structure Design for 10-15 year life Local Requirements and Legal Compliance Validation of what REALLY is required Requirement Validation Framework Find Multi-company solutions SAF-T & Electronic filing – CELANTRA FOCUS Project Sponsorship, Scope and Management Key project success factors Establish your authority to build, and Constantly Provide Clarity around what you’re building Scope Management Requirement Validation Framework – CELANTRA FOCUS Two Approaches Agile, Scrum, iterative Waterfall Approach 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS Our Panelists Hans Kolbe, founded Celantra Systems and advised software implementation projects for over 15 years. Hans has led dozens of global implementations with complex intercompany requirements, including Swiss Principal, Commissionaire and multi-tier models. He is a specialist in Intercompany process design and multi-org configurations, international compliance and transactional taxation. His extensive knowledge on Oracle applications is combined with a formal background as a German attorney, trained in international and comparative law. Andreas Schuett is VP Global Accounting Governance for the SUPPLY CHAIN Division at Deutsche Post DHL Group in Bonn, Germany. In his 20 years with the group, he spent over 14 in Corporate Accounting around group consolidation and reporting before moving into the divisional role where a current focus is on global harmonization and standardization of accounting processes, internal controls and reporting in SUPPLY CHAIN´s global Oracle implementation. Rene Roembell, Senior Consultant with Celantra Systems based in Frankfurt, has been working with Oracle based ERP Systems since 1989. Before entering private practice in 2001, he was with Oracle and has been with Celantra Systems since 2007. Rene’s extensive knowledge of Oracle applications and tools is combined with a deep understanding of functional, technical and project management challenges, for both domestic and international organizations. Robert Culpepper Financial Systems Manager in UPS’ Financial Systems Group in New Jersey, has been with UPS for over 31 years. Part of a team that has implemented and continue to support Financial and Project Accounting modules in 255 business units, in 70 countries and 25 languages, satisfying both Corporate & Local Statutory requirements. Dan Chaffer, has worked extensively in Finance Systems, focusing on Oracle applications for the last 15 years. At Qualcomm, he led a global rollout of Oracle from a single USD ledger and 19 operating units, to over 60 ledgers and 95 operating units. A private consultant since 2015, he brings an accountant’s practical approach to system implementations and project leadership 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Global Processes & Oracle Org Design For Efficient Operations & Maintenance and a Fast Month-End Close 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

…Flexible Output Standard Processes… Oracle Data Corporate Filings Oracle Data Payments Invoices Journals Electronic Compliance Statutory Compliance Management Reporting …Flexible Output Commercial Invoices Commercial Invoices 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS In your multinational ERP processes, how close are you to a standard process template model? 25% Standard processes 50% 75% 100% 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Panel Discussion Global Processes 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Flexibility is the key to a successful Org structure Identify the lowest common practices Configure, don’t Customize Operational Models to consider Supply Chain Management Approach Customer / Vendor facing organizations Finance Organization Supply Chain Management Approach Large Distribution Centers, global product management Individual entities with separate management Customer / Vendor facing organizations Shared services – Sales, and customer service Entity-based selling or buying Finance Organization Country, Regional or Global Shared Services 9/21/2018 COPYRIGHT CELANTRA SYSTEMS 9

Design the Operating Model. to Maximize Flexibility Design the Operating Model to Maximize Flexibility and Minimize Maintenance Classic Silo Model Cross-Legal Entity Operating Unit (CLEOU) Partial Silo Model 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS Integration models 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Panel Discussion Oracle Org Design 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Local Requirements and Legal Compliance Figuring out what you need to do, versus what’s “always been done” 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS How satisfied are you that you could fit local requirements into your standard processes? Not at all Somewhat satisfied Satisfied Ecstatic 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Legal compliance – a Requirement Validation Framework For each legal entity, understand what must be done for local compliance Determine whether it will happen inside or outside of Oracle Determine how often it needs to happen Remember that for most entities, the corporate close will happen more often and the close time will be much shorter 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Compliance is becoming more Complicated OECD heightens scrutiny of Multinationals - “BEPS Project” (“Base Erosion and Profit Shifting”) Intercompany functionality must be easily configurable to comply with new regulations or meet unexpected challenges SAF-T and other electronic filing formats becoming commonplace 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Upcoming Celantra Webinar Upsurge in European e-Audit Requirements SAF-T and BEPS Trends and Solutions Flexible Design, Effective Compliance And Efficient Transactions San Francisco, CA 94114 +1 415 824 8344 info@celantrasystems.com http://www.celantrasystems.com Hold the date: Wednesday 14-September 2016 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Panel Discussion Compliance Model 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Project Sponsorship, Scope and Management Authority, Vision and Delivery 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS What do YOU think? On your Oracle ERP Project, do you have (or did you have) sufficient Executive Sponsorship? Yes No 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS “The single biggest problem in communication is the illusion that it has taken place.” – George Bernard Shaw Create the Vision Requirements are key Make sure that the Sponsor understands and supports what the project will deliver Regular updates Keep the sponsor, the stakeholders and the project team focused on the requirements Manage Scope Stakeholders & Sponsor are making the decision about changes in 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

The Team – Critical Components Project Team Functional Technical Development Manager Stakeholders Key Stakeholders Subject Matter Experts Customer Decision-makers Steering Committee Executive Sponsor Project Sponsor Key Management 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Panel Discussion Project Management 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

Flexible Design, Effective Compliance And Efficient Transactions CELANTRA SYSTEMS We help multinational corporations simplify their global implementations and satisfy challenging, local in-country requirements at the same time. Our team of highly experienced consultants focuses on three areas that are critical to companies operating on a global stage: Organizational ERP Design for efficient transactions and fast closes Intercompany process re-engineering and automation Statutory compliance and electronic filing OUR FOCUS We provide solution design, program management, and staffing to ensure effective delivery. Specialized areas of focus include: Intercompany automation, elimination and reconciliation Transfer price elimination (Profit in Inventory) Legal and Operational Structure design to support operational efficiency and reporting compliance Global Chart of Accounts Design and Financial Reporting Tax, Statutory, Trade and Customs compliance Flexible Design, Effective Compliance And Efficient Transactions San Francisco, CA 94114 +1 415 824 8344 info@celantrasystems.com http://www.celantrasystems.com 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS Hans Kolbe Hans Kolbe has managed and advised global software implementation projects for over 15 years. His extensive knowledge on Oracle applications is combined with a formal background as a German attorney, trained in international and comparative law. His knowledge of and interest in international law and corporate finance led him to re-establish the Multi-National Special Interest Group within OAUG. Under his leadership, this forum has become a dynamic marketplace for the exchange of innovations and ideas from around the world. Hans has led dozens of global implementations with complex intercompany requirements, including Swiss Principal, Commissionaire and multi-tier models. He is a specialist in Intercompany process design and multi-org configurations, international compliance and transactional taxation. hanskolbe@celantrasystems.com www.celantrasystems.com 415-730-1131 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS Rene Roembell Rene Roembell is a Senior Consultant with Celantra Systems. Based out of Frankfurt Germany, he manages the European Chapter of the Oracle Multi-National SIG group. He has been working with Oracle based ERP Systems since 1989, and with Oracle EBS since 1996. He worked as an Oracle Principal Consultant until 2001 when he went into private consulting and has been with Celantra Systems since 2007. His extensive knowledge of Oracle applications and tools is combined with a deep understanding of functional, technical and project management challenges of both domestic and international organizations. Over the last several years he has focused on solving the functional and technical challenges that multi-national corporations encounter in Europe, providing solutions reneroembell@celantrasystems.com www.celantrasystems.com 415-730-1131 9/21/2018 COPYRIGHT CELANTRA SYSTEMS

COPYRIGHT CELANTRA SYSTEMS Dan Chaffer Dan Chaffer has worked extensively in Finance Systems for his entire career, focusing for the last 15 years + on Oracle applications in a multinational context. He led a global rollout of Oracle that expanded Qualcomm’s foot print of a single USD ledger and 19 operating units, to over 60 ledgers and 95 operating units. He was also the lead Finance manager on the R12 upgrade that took place during that expansion. Dan has piloted multinational consolidation projects in both HFM and Cognos Controller, and comes with an accountant’s practical approach to system implementations dan.chaffer@celantrasystems.com www.celantrasystems.com +1 760-613-9292 3 9/21/2018 COPYRIGHT CELANTRA SYSTEMS