Financial Systems Integration

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Financial Systems Integration Executing the
Strategy
Pam McGregor Toni Cobb Jeff Mayo Carol
Praplaski June 14, 2002
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Agenda

• About NDCHealth
• Financial Systems Strategy
• Phased Delivery Approach
• Implementation Accomplishments and Challenges
• Accounts Receivable
• Order Management
• Project Accounting
• iTime iExpense

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About NDCHealth

• NDCHealth has been providing integrated
  information support to all segments of the health
  industry for over two decades. This experience,
  leveraged with our powerful network and
  information management capabilities, has built
  our reputation as a premier provider of
  value-added information services serving more
  segments of the healthcare industry than any
  other similar company.

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About NDCHealthTechnology and Resources

• Intelligent network processes over 2 billion
  real-time health care transactions annually, peak
  rate of 650 transactions/second
• Connected to over 4,000 payer plans
• 39 of nations hospitals gt 400 beds, about 1,200
  hospitals
• 90 of nations pharmacies, about 50,000
  pharmacies
• gt 150,000 physicians
• 25 terabyte Oracle database for the
  pharmaceutical industry, over 100 pharmaceutical
  manufacturers
• Over 3.5 billion prescriptions on file

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NDCHealths Financial Systems Strategy

• Create integrated financial information system
  effectively supporting company goals and
  objectives - 1999

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Gradual Execution of Strategy
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Billing Implementation Quick Wins

• Improved cash flow through a centralized
  automated billing and AR system
• Global reporting
• Centralized processing
• Fewer lockboxes
• Timely and accurate recording of AR transactions
• One global customer master file utilized company
  wide
• Natural Integration between Oracle subsystems
  (AR, OM, PA and GL)
• Improved customer AR account status information
  provided by on-line inquiry to record all
  customer issues
• Online collection activity comments with
  automatic follow-up notification
• Automated, real-time credit card payment method
  utilizing Authorize.Net

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Implementation Accomplishments Challenges

• Accounts Receivable
• Order Management
• Project Billing / Project Costing
• iTime iExpense

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Accounts Receivable

• Business Drivers
• Antiquated and non-integrated financial systems
• Standalone billing/AR systems
• Lack of Customer Master
• Lack of management information Consolidated DSO
  Analysis
• Desire for centralized shared services
• Desire for improved cash flow through automated,
  centralized processes
• High cost of manual and duplicate processes
• Billing
• Customer Maintenance

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Accounts Receivable

• Converted data from multiple systems
• Customers
• Open Balances for Customers
• Customer Bank Information
• Items
• Installed Customizations/Interfaces
• Credit Card process using 3rd party tool -
  Auth.net
• AR Open Balances to HP3000 to keep opening
  balance on invoices generated in HP3000
• AR Customer Update to HP3000 to keep new/modified
  customers in sync in both systems
• HP Items to Oracle Interface - as new service
  codes are added in HP3000 automated way to bring
  data into Oracle

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Accounts Receivable

• Challenges
• Reporting by individual Business Unit in a single
  organization environment
• Customer data review and cleansing needs to
  happen in a controlled timely manner by end users
  most familiar with data
• Same customers with multiple bill-to and
  ship-tos in several legacy systems
• Determining naming convention and data entry
  standards
• Creating a shared services environment at same
  time we were implementing new applications

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Order Management

• Business Drivers
• Lack of integrated order management system into
  Oracle Financials
• Lack of easily obtained OM information
• Need for improved management information

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Order Management

• Converted Data
• Price Lists
• Customers in conjunction with AR
• Inventory items
• Customizations
• Freight calculation for orders based on ship-from
  and ship-to zip codes, using UPS rate table
  information.
• Shipping UPS interface that will request,
  generate and print UPS shipping labels, using UPS
  web interface and custom NDC code.
• Order fulfillment sets assignment. Automatically
  set all order lines to an order fulfillment set
  to insure discounts and service items invoice
  together with shippable items, especially since
  most sales are paid with credit cards.
• Credit card authorization customization using
  Auth.net web interface.

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Order Management

• Challenges
• Existing Oracle Inventory lacked item categories
• Data cleansing
• Functional involvement

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Project Accounting

• Business Drivers
• A need for a centralized, automated, integrated
  capital expense tracking system
• A need for a centralized, integrated customer
  billing system

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Project Accounting

• Data Converted
• Projects contract capital
• Project costs and revenue
• AR contact
• Customizations
• Event Spawning Ability to automatically create
  events on a weekly, monthly, or quarterly basis
• Additional Invoice Information Customized the
  PRC INTERFACE INVOICE TO RECEIVABLES program to
  include descriptive flex field, and product
  information.
• Created Custom Invoice Printing using Optio.
• Custom Tax Program to accommodate multiple taxing
  jurisdictions by project
• Created interface to load external expenditures.

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Project Accounting

• Challenges
• Project Name data was not unique in legacy
  system and exceeded field length, had to clean
  data
• Agreement on Auto Accounting setup
• Determining standardized burdening rates

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iTime iExpense

• Business Drivers
• Eliminate paper driven system
• Lack of standardized labor collection process
• Enforce business policy
• Eliminate manual processes

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iTime iExpense

• Implementation
• Interfaces/Customizations
• Created interface between non-Oracle HR/Payroll
  system for employee add/update/terminations
• Automated User maintenance for new employees
• Created custom workflows for Approvals
• Use of Email Alerts
• Notifications
• Missing Timecards
• System Administration

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iTime iExpense

• Challenges
• Routing driven off HR supervisor ensure data
  accuracy prior to deployment
• Develop process to update HR supervisor to avoid
  document routing problems
• Develop a realistic expense report approval
  hierarchy
• Adequately staff a Help Desk to answer user
  questions
• Be prepared for quirky PC desktop problems due
  various browser versions and other desktop PC
  configurations

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Centralization During Implementation

• Challenges
• Centralization of processes procedures
• New players have much to learn
• Old players lose interest in project
• Mitigate Risk to Project Success
• Excessive training
• Facilitate knowledge transfer sessions between
  old and new players
• Hold a post go-live pass the torch meeting
  between project team and users
• Hold regular lessons learned meetings after
  each month-end close
• Dont accept excuses from new players

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Implementation Recommendations

• Data Conversion
• Determine naming conventions early on in the
  project
• Provide enough time for data cleansing
• Perform Static Conversions 1 month prior to
  go-live and ensure totals in legacy systems match
  totals converted in Oracle
• Resources
• Secure upper management support
• Identify the most knowledgeable, internal
  functional staff for the project and dedicate
  them for the projects duration
• Testing
• Identify all business scenarios and fully test.
• Perform at least two full integration tests.

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Implementation Recommendations

• Training
• Complete Policies and Procedures for new business
  processes prior to go-live
• Implement Help Desk Support/Procedures for Oracle
  Applications
• Complete end-user training 1-2 weeks prior to
  go-live
• Leverage the Train-the-Trainer approach.
• Keep legacy system query capabilities available
  for 3-6 months after production
• Freeze application setups 1 month prior to
  go-live
• Prior to go-live, put process in place to address
  requests for new requirements and related
  enhancements
• Determine Key Success Factors prior to project
  start-up and evaluate 3 to 6 months after
  implementation

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• Questions?