Gaining Better User Adoption of Oracle HCM Cloud Coexistence with Oracle E-Business Suite Kathryn Koch Senior Manager ALLETE Kishore Karlapudi Senior Director Drivestream

ALLETE - who we are and what we do? Regulated Utility Company (NYSE: ALE), headquartered in Duluth, MN Five companies across three states Minnesota Power Superior Water, Light and Power ALLETE Clean Energy US Water Services BNI Energy 1900 Employees $1.42 Billion Revenue

Who did we partner with? Founded in 2002 - Headquartered in the Washington DC Metropolitan Area Leadership Team – Former Big 4 Management Consultants Strategy & Advisory Business Process Transformation & Optimization Enterprise Systems Integration Implementation & Managed Services

Who did we partner with? Exceptional Track Record of Oracle Cloud Customer Success 140+ Oracle Cloud Projects across HCM, ERP, EPM, SCM and CX Largest number of live Oracle Cloud Payroll customers Reference Customers across every major Industry Vertical Cloud Service Offerings Strategy & Advisory Services Cloud Implementation Services Application Management Services (AMS) Business Process Outsourcing (BPO) Services Oracle HCM Cloud Oracle ERP Cloud Oracle CX Cloud Planning & Budgeting Cloud PeopleSoft EBS JDE Focused Exclusively on Oracle Technology Cloud Expertise On-Premise Expertise Oracle PaaS / IaaS Oracle Student Cloud (NEW)

A B C Effective Scoping & Planning Modules Business Processes Functional Scope Unique Business Requirements Integrations Data Conversions Special Reports B Technical Scope C Other Business Priorities User Availability User Time Commitment Conflicting Projects Calendar Time

Launch Implementation Rollout I Jan 2017 Project Scope & Timeline Rollout I Global Human Resources Goals Management Performance Management Talent Review & Succession Planning Career Development Workforce Compensation Learning Management Employee & Manager Self-Service Oracle Transactional Business Intelligence Rollout II Live Jan 2019 Rollout I Live Jan 2018 Launch Implementation Rollout I Jan 2017 2018 Co-existience Live - Jan2018 Rollout II Payroll US Time & Labor Benefits Administration Absence Management 2017 Jan 01, 2017 6

EBS – Finance / Supply Chain Oracle Cloud HCM Co-existence with Oracle EBS EE Data + Work Structures Taleo The Integrations between HCM Cloud and EBS EE Data and Work Structures will continue after Go-live of HCM Payroll (Phase II) till ALLETE moves their EBS-ERP system to Oracle Complete Cloud Earnings Integration will be discontinued after Phase II rollout of Payroll into HCM Cloud New Hires EBS - HCM EE Data + Earnings + Work Structures HCM Cloud EBS – Finance / Supply Chain Payroll Costing

Oracle Cloud HCM Co-existence with Oracle EBS Integrations HCM Change Only extracts were utilized EBS Integration identified the changes – Insert/Update/Correction and loaded into EBS using API calls HCM Cloud – EBS – Work Structures (Location, Department, Job, Grade & Grade Ladder) HCM Cloud – EBS – Employee Demographic Data ( Person, Employment, Phone, Address, Email, Names, etc.) HCM Cloud – EBS – Earnings Data from Compensation Module Positives Able to maintain both HCM Cloud and EBS systems effectively Able to focus on HCM Cloud Implementation to Transform the Business Post go-live issues on Integrations are very minimal Challenges Challenge in mapping HCM cloud to EBS especially the Data items with different structures Underestimated the effort involved and complexity in Developing the Integrations on EBS side Significant amount of time spend in Developing the Integrations on HCM Cloud and EBS Special care during Production Cutover

Positives Employees able to use system to familiarize with functionality HRIS/IT Staff able to learn “cloud” Scheduling Patches Logging issues Utilize Report Tool Difference between alerts and notifications (bursting) Two phased approach provided us flexibility to support current business Able to Implement with existing staff without overloaded workloads Clear and Proven Implementation methodology helped us to stay on coarse during the Implementation Very engaged project team – helped us front load the work with minimal issues post Go-live Talent Modules rollout success as screens and process intuitive OTBI Reporting, dashboards were a big boon for ALLETE and their executive staff User adoption was more given the flexibility available on the cloud

Positives Core Design – Phase I design is done in consideration of Phase II modules and ALLETE’s vision to move their business to Cloud ALLETE was very open minded and ready to adopt the change to cloud, by leveraging the cloud functionality and changing their existing business processes if required A well planned and executed Change management Cloud was able to handle the Union and Non-Union process requirements better Mobile / handheld device capability for their executive staff Cloud was able to address the complex requirements including the addition of custom forms Documentation from EBS (custom fields and other processes) helped the Implementation and helped us move them to cloud

Learnings Ensure Interfaces from HCM to EBS works after every patch Some items were not easy to interface, duplicate entry for transition period Ensure HR Staff have clear understanding of what information is being interfaced Ensure your Employees are clear on which system (EBS or HCM) to use to update their data A year is long – but fast Implementing Time and Labor with all the various union scenarios is very challenging Had to delay the Learn Go-Live to Phase II for product enhancements Allow enough time to work with Unions as reviewing the new processes with Unions will take time

Questions? Q&A