1. Oracle Enterprise Data Management Cloud Service Blue Cross Blue Shield of Michigan
October 25, 2018

2. Tom Borgula – Director - IT Corporate Services
Oracle EDMCS
Tom Borgula – Director - IT Corporate Services
Blue Cross Blue Shield of Michigan
A nonprofit mutual insurance company founded in 1939
The largest health insurer in Michigan, serving 4.5 million people here and 1.6 million more in other states
The largest network of doctors and hospitals in Michigan: 152 hospitals, and more than 33,000 doctors
An independent licensee of the Blue Cross Blue Shield Association
Number of employees: more than 8,100
10/25/2018

3. Oracle EDMCS ERP Background at BCBSM
The background BCBSM ERP is essential to understand the strategy and success of the ERP transition to the cloud. We have had alignment at the Executive level for ERP strategy since when the ERP Steering Committee was formed:
Executives from Finance / Procurement / HR / IT - Chaired by IT
Charter – Oversee Corporate strategy for ERP
Guiding Principles - Upgrade every year / No customizations / Single ERP software platform – Oracle / PeopleSoft (Finance/Procurement/HCM)
Alignment across the four pillars has allowed us to eliminate customizations each year / upgrade each year / implement out of the box functionality each year / reduce the annual cost to maintain ERP.
The ERP Steering Committee meeting cadence (every two months) allowed us to continually update the executives on the progress of Oracle Cloud functionality / maturity. In 2015 Oracle Fusion reached an acceptable maturity level for us to propose an ERP strategy of moving to Cloud ERP. Putting together a strategy and business case was easier because of the relationship with the executives and their knowledge of ERP gained through the Steering Committee.
10/25/2018

4. Why an ERP Cloud Strategy?
Oracle EDMCS
Why an ERP Cloud Strategy?
Business drivers
Enterprise’s Finance organization utilizing multiple core systems to handle accounting, budgeting/forecasting and financial reporting
More than 15 core Financial systems (including 4 General Ledgers) exist across the Enterprise using 5 separate Chart of Accounts Interfaces to upstream admin systems that limit flexibility and require significant cost to alter
Hundreds of single-purpose applications and databases (Excel spreadsheets, Access Databases, etc.) create control and accuracy risks
Companies of similar size and complexity utilize 3 core systems for these functions (one ERP with one Chart of Accounts, one consolidation and one budgeting/forecasting system)
10/25/2018

5. Why an ERP Cloud Strategy? Technology drivers
Oracle EDMCS
Why an ERP Cloud Strategy?
Technology drivers
On-premise PeopleSoft ERP platform new functionality being released was slowing down
Oracle Cloud ERP platform functionality increasing
BCBSM Corporate strategy moving towards managed services
Cloud facilitates shorter time-to-market of business activities, M&A and divestitures, changes in business structure happen seamlessly
10/25/2018

6. Oracle EDMCS
Why EDMCS?
EDMCS is one component of the BCBSM strategy / transition to the Oracle cloud
BCBSM is moving from multiple - ERP platforms / multiple chart of accounts / multiple general ledgers
To one - Enterprise ERP cloud platform / one chart of accounts / one general ledger
Need a tool to aid in the transition from multiple chart of accounts to one chart of accounts
While maintaining the existing multiple chart of accounts
While planning future business strategies / planning and their impact to the current multiple chart of accounts and the future single chart of accounts
10/25/2018

7. Oracle EDMCS Why EDMCS? Immediate Need – Enterprise Consolidation
FCCS implemented with new Enterprise COA
Need to consolidate multiple Entities that have different COAs
Need one place to manage account mappings
Future Need – Enterprise Migration to one instance of Oracle Fusion ERP
Need to manage transitioning from multiple ERP systems with each having a unique COA to the new COA
Need to manage alternate hierarchies for the different lines of business after the migration is complete
Need to support future acquisitions migrating to the one Enterprise instance of Oracle Fusion ERP
Govern COA changes
Model potential COA changes
10/25/2018

8. Oracle EDMCS EDMCS Journey 2016 New COA designed
Decision made to migrate from on-premise Hyperion Planning and Budgeting/Strategic Finance to Oracle Enterprise Planning and Budgeting Cloud Service
Decision made to implement Oracle FCCS
2017
Enterprise ERP Cloud Strategy Developed in partnership with Oracle
EPBCS implemented
Decision made to implement Oracle EDMCS
2018
FCCS implemented
EDMCS implemented
Fusion ERP implementation started
10/25/2018

9. Oracle EDMCS EDMCS Benefits Who benefits?
Planning now has the ability to quickly rollup the multiple enterprise chart of accounts into one chart of accounts
Strategy now has the ability to what if different scenarios and their impact on the enterprise / individual entities easily without spreadsheets or multiple databases
Accounting now has the ability to see the impact to the general ledger based on future strategic models
Finance Management Reporting now has the ability to define alternate hierarchies for each business area
Business areas are now able to receive the reporting and analytics that they use to make decisions quicker from their Finance support teams
IT no longer has to make programming changes to accommodate future hierarchies
10/25/2018

10. ERP Architecture Prior to 2018
Source Applications & Integration
Enterprise Performance Mgmt
Analytics & Reporting
Oracle Cloud
Enterprise Performance Management
Enterprise Planning & Budgeting
Talent Management
Taleo
Oracle On-Premise
Oracle BI Applications, HCM & sPro on Oracle DB
Oracle Business Intelligence
PeopleSoft
Financials
Supply Chain
HCM
External
External
Systems/Integrations
Claims, Acquisitions, etc.
Entities
Multiple General Ledgers
Multiple COAs
10/25/2018

11. Enterprise ERP Complete
Enterprise ERP Transition to Cloud Completed
Enterprise ERP Complete
Source Applications & Integration
Enterprise Performance Mgmt
Analytics & Reporting
Oracle Cloud
Enterprise Performance Management
Enterprise Planning & Budgeting
Strategic Finance
Financial Close and Consolidation
Profitability and Cost Management
Enterprise Data Management
Account Reconciliation
Oracle ERP/SCM/HCM/Talent Mgmt
Financials
Procurement
HCM
Talent Management
Accounting Hub
Accounting Engine & Rules
PaaS
SOA & Data Relationship Mgmt
Services Procurement Extension (i.e., Java SaaS Extension)
Informatics
Financial
HCM
Procurement
External Data
External
External
Systems/Integrations
Claims, Acquisitions, etc.
10/25/2018

12. Oracle EDMCS - BCBSM
Appendix
10/25/2018

13. EDMCS Milestones in our Journey
Planning and execution
2016
New COA designed
Decision made to migrate from on-premise Hyperion Planning and Budgeting/Strategic Finance to Oracle Enterprise Planning and Budgeting Cloud Service
Decision made to implement Oracle FCCS
2017
Enterprise ERP Cloud Strategy Developed in partnership with Oracle
EPBCS implemented
Decision made to implement Oracle EDMCS
2018
FCCS implemented
EDMCS implemented
Fusion ERP implementation started
10/25/2018