Leveraging Oracle HCM Cloud for HR Transformation in Europe The Road not taken?

Agenda HCM Cloud Basics HCM Cloud in Europe The Essentials Three Key items for Success Key Lessons Learned  Q & A Session

HCM Cloud Basics

Analyst view on HCM and SaaS Trends Gartner is projecting the SaaS market will grow at a steady CAGR of 19.5% through 2016, having increased the forecast slightly (.4%) since its latest published report Gartner is projecting a $10 billion HCM market by 2015, with $4 billion in talent management, 75% of that market coming from SaaS. IDC's revenue forecast for worldwide HCM market is $11 billion in 2016, growing at a compound annual growth rate (CAGR) of 8.1%. Market data and trends show that the HCM market is predicted to grow rapidly in the next few years

Target Customer for HCM Cloud HCM Cloud Basics Why HCM Cloud Quicker ROI Reduced and Predictable IT Costs Considered as a “successor” for Oracle EBS and PeopleSoft HCM product Hassle free upgrades Reduced Upgrade risk and downtime Stay current – utilize latest functionality Target Customer for HCM Cloud Number of Employees < 15000 Multi country companies with small population in each region Customers with multiple and isolated HR systems Existing Oracle Customers interested in better Talent and Compensation product Customers looking to improve user experience – Social, Mobile and Analytics Have limited budget for hosting and licenses Willing to adopt best practices and align with product features

HCM Cloud – Advantages More resources required in On-premise vs Cloud Go-Live takes longer in On-premise vs Cloud New Releases/Upgrade adoption is much later for On-premise Infrastructure is Oracle Cloud Service Managed in Cloud, thereby reducing resources

HCM Cloud in Europe

HCM Cloud trends in Europe

Three Key Items for Success

The Three Key Items for Success What we discovered is that there are three Essential items: Maturity & breath of the Product Global adoption Stick to the standard and take advantage of upgrades Consider this a journey of enhancement & improvement Maturity of the Implementation approach Getting this up and running is fairly simple Address the connection in your wider IT environment Address the internal Maintenance & Support Maturity of the organization Cloud requites adoption to the standard Align your Operating Model Apply a strong Change Management support

The Essentials

Product : Oracle HCM Cloud

Implementation Methodology: HCM Cloud Methodology Cognizant leverages proprietary Oracle Cloud Implementation methodology which has been successfully used in Cloud based rapid Implementation of HCM Cloud projects and is aligned to Oracle’s OUM methodology. Diagnose (Assess, Finalize Scope & Plan) Solution envisioning workshops conducted with stakeholders to understand scope, critical success factors and gather requirements. AccelHRate Diagnose Simulate Validate Deploy 1 2 3 4 Simulate (Process Map & Build) Business process flows are mapped to Oracle HCM Cloud to identify, prioritize and estimate Gap & conversions needs. Validate (Test & Reconfigure) System Integration and User Acceptance Testing is performed to ensure that the solution meets the business requirements. Deploy (Transfer & Train users) System is deployed for business users. End User Training is conducted and provides detailed cutover and rollout plan, validates production instance and ensures operational readiness.

Implementation Methodology: Pre-Configured Solution Head Start with Oracle + Cognizant Other SI Oracle HCM Cloud + Cognizant Advantage Client specific requirement Recruiting Cognizant’s IP Accelerate Time to Value Reusable Processes & Templates PeopleSoft Connect Value Added Services Learn Reduce Program Risk Core HR Process Modeler EBS Connect Dashboard & Reports Compensation Adopt Industry Best Practices Benefits Seeded Configurator Taleo Connect UPK Kits Talent Management Increased User Adaptability Migration Assist 1000+ Test Cases Time and Labor Align with HR Transformation Accelerate Integrate Deliver Payroll

Change Management: Organizational CM Framework The Cognizant OCM framework incorporates four change domains supported by key enabling elements Stakeholder Mapping & Analysis Cognizant’s Organization Change Management Framework Change Vision, Sponsorship, Executive Alignment & Program Governance Stakeholder Management Plan 1 2 Change Agent Identification & Network Change Strategy & Leadership Stakeholder Management & Communication Change Management Strategy and Plan Communication Strategy, Planning and Delivery Managing Organizational Change Baseline / Iterative Change Assessment Organization Impact Assessment Active and visible executive alignment & sponsorship Tight collaboration between business operations and the project team Effective communications Dedicated Change Agent Network Initial Change Impact Analysis Organization Design Requirements Macro Level Organization Structure Job Impact Analysis Micro Organization Structure and Job Design 3 Knowledge Transfer Management 4 Skills Management Organization Design Future State Governance Skill Gap Assessment Transition Plan / Roadmap Training Delivery Strategy 15

Change Management: Framework contd.. Cognizant’s OCM framework is flexible and can be customized to fit customer specific needs Offerings Objectives Assess the organization’s aptitude for change Develop recommendations to guide the design of a change program to transform culture to the desired state Identification of key stakeholders Understand Stakeholder requirements and preferences Establish change agents within the organization Ensures adequacy, timeliness, consistency and the context of communication is maintained Establish a two-way communications network Develops targeted communication to stakeholders with varying degree of change buy-in Impact assessment across people, process and technology dimensions Identifying and prioritizing the identified impacts and developing necessary litigator steps Assess organizational structure impact Organization structure to operate after the change? What roles / responsibilities will be changed or eliminated Gauging the skill gaps in impacted resources that will affect their performance post change Developing a comprehensive training plan an associated material based on the skill gaps identified Organizational Change Readiness Assessment Illustrative Solution Set Stakeholder Analysis & Management Planning Communication Strategy, Planning and Delivery Change Impact Assessment and Analysis Org Design & Governance Model Skill gap assessment & training needs analysis 16

Examples & Solutions Lessons Learned

Example Project Timelines Implementation Upgrade Go-Live all 6 Countries Goal Management Performance Management Talent Review Compensation Management OTBI for HCM Wave 1 – Core I Netherlands Wave 1- Core Rollout Wave 2 Roll-out Talent Functional Areas Month 5 Month 4 Core HR, ESS/MSS Profile Management Absence Management Payroll Extract Rollout to 5 Countries* Payroll Extracts Extend functionality Stay with latest release Prepare for future upgrades Enable internal IT team for support End to end testing of business processes Release 7 Upgrade Month 6 * Roll-out Countries: Spain, France, UK, Italy, Germany

Our Success Factors Third party vendors to be made aware of project timelines and expectation from them during the project lifecycle Establish a streamlined service resolution process with Oracle Willingness to change the current way of working with HCM Cloud delivered processes without the need for heavy customization Openness to look at alternative solution/workarou nds is desirable Ensured that SMEs and Business leaders define the overall solution which should then be validated only for legislative compliance with other countries. Communications strategy and sponsor should endorse this approach Prep the customer (cloud understanding, global design, product limitations, dependencies) Helped them identify key roles and our expectations from them during project Helped them plan for additional phases, post warranty support and end user trainings well in advance Manage external dependencies well Expectation setting Centralized decision and design Adopt consultative approach

Key Lessons Learned Key Lessons Learned 1 4 2 3 5 Limited availability of environments in SaaS Implementations Ensure minimal overlap of phases Plan Production to Test cloning for critical phases of projects (.e.g. CRP2, .SIT, UAT, Upgrade) Start configuring Enterprise Setup on production post CRP2 or post approval of To-Be Process Model Don’t underestimate data migration esp. historical data Small upgrade window Small window (5-6 weeks) available for end to end upgrade - hence it is critical to prioritize, validate and roll-out new functionalities It is important to evaluate results of test plan immediately after upgrade and liaise with Oracle for resolution at an early stage 5 4 1 2 3 Key Lessons Learned SMEs buy-in and period reviews Ensure that client keeps Worker council involved and updated with the progress of the project to ensure their buy-in to the solution Keep ~2 months for end to end rollout for each set of countries Oracle Releases newer version every six months Before starting the implementation, get all details of new releases in HCM Cloud space from Oracle and plan implementation accordingly Importance of Data Privacy Involve customer legal experts at an early stage of the project and also ensure Customer PMO arranges for necessary design/CRP/UAT sign off from their internal legal team

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