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

2. Biography Gary Crisci EPM Principal Technologist Oracle Ace (BI/EPM)
ODTUG B.O.D.
Co-Author: Developing Essbase Applications
15+ Years Finance/IT Experience

3. About GE

4. 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

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

6. 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”

7. Business Case

8. 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

9. 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

10. 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

11. 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

12. 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

13. Solution Overview

14. 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

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

16. 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

17. 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

18. Solution Architecture

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

20. 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.

21. 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.

22. 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

23. 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

24. 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

25. Hierarchy stats
Rationalized 3x – 4x reduction

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

27. Governance Approach

28. 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

30. Tying it all together

31. 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.

32. 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

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

34. Knowledge Management

35. 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

36. Lessons learned (still learning)

37. “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

38. 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.

39. Thank you.