On Time and Within Budget Business Transformation Oracle Financials, Purchasing End of the Beginning

 Senior level sponsorship  Definition Phase to confirm requirements  Created Process Owners  Fixed price implementation  No customisation  Strong project management On Time and Within Budget ?

 Single point of entry of information onto the system  Validation at source  Minimise manual processes  Introduce better management control by providing in-year resource information  Improve the timeliness and quality of management information. Sponsor’s Vision

Overview of the Project DecJanFebAprMar Jun Jul Aug SepOct Mobilise/CRP1 CRP 2 CRP 3 Technical Development GO LIVE 1 April ‘04 Nov Transition UAT Training Preparation LAUNCH 2 June ‘03 18/7 7 wks 26/9 13/2 10 wks 8 wks 13 wks 6 wks CRP1 Event 7-11 July CRP2 Event 8-19 Sept CRP3 Event Nov User Testing 12 Jan–6 Feb Training 21/11

WHAT ?

CMG Payroll General Ledger Purchase Ordering The VISTA Solution Accounts Payable Accounts Receivables Human Resources Salary data PO’s Expense Positions Cost centres Commitments Personnel

DH now has a Process Approach to Departmental Management Business ‘benefits’ are now probable not possible! –In-system budgeting - monitoring and controlling budgets –Resource accounting - visible commitments –Treasury Management - controlling cash centrally –Purchasing against Contracts/PO’s - controlling expenditure –Accounting Central Control - managing transactions Self-service - procurement, expenses, employee details –Will reduce the administration burden ( e.g. reduce the need for BCLO’s)

HOW ?

User User logs onto Vista and raises a REQUISTION (this could be from an online catalogue)

User Vista routes the Requisition to...

User Approver Who has authority to approve or reject the requisition, If approved….

User Approver Supplier Vista auto-creates a PURCHASE ORDER which is ed to the supplier. This is the suppliers trigger to work on our behalf. AND…...

User Approver Supplier General Ledger Vista notes a COMMITMENT against the relevant budget in the GENERAL LEDGER

User Approver Supplier General Ledger The supplier despatches the goods or services to the requisitioner.

User Approver Supplier General Ledger Who completes a RECEIPT on Vista. This is noted on the General Ledger where the COMMITMENT is changed to an ACCRUAL. From a resource accounting perspective, when the receipt is completed the value of that receipt is effectively “spent”.

User Approver Supplier General Ledger Accounts Payable So when the supplier sends the invoice to the Accounts Payable team in DH...

User Approver Supplier General Ledger Accounts Payable They check that the goods have been receipted. If so they pay the invoice and capture the actual expenditure.

VISTA SWOT analysis Opportunities Process adoption Head count savings ISG/FID relationship/teamwork Purchasing savings 10% to 25% Financial Control HR data management Threats GBT creditability and coverage Unmatched invoices New org ‘fit’ with VISTA central processes DH purchasing team DH application strategy/data management GBT HoF relationship with FID/FM FID Accounting centre performance Weaknesses HR data quality Significant cost centre changes in March Purchasing ownership in the DH ISG bandwidth – Unity/Support Strengths Definition phase and planning Process Leaders/Owners Open relationship DH/CGEY Pragmatic decision making Project management GL stream – COA and budgets Training

The End Game! Implement the three VISTA processes Oracle replaces legacy systems ( 25) Electronic procurement via requisitions Central budget management FID head-count reduction = 11.5 ISD head-count reduction = 3.5 Procurement savings = 5% p.a. ( £1m plus) Accounting centre service improvements

Colin Grace – Praktis Consulting Director