A Success Story: 11i Financials and Projects in 90 Days by Scott Pow

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A Success Story11i Financials and Projects in
90 Daysby Scott Pow
DARC Consulting
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Todays Agenda

• Introduction
• Client and Project Summary
• Project Methodology and Timeline
• Project Success Factors
• 11i Projects Key Challenges
• 11i Projects Intercompany Processing
• 11i Projects Multi-Currency Processing
• Question/Answer Session

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Introduction

• 3 Month Full 11i Financials, HR, and Projects
  Rapid Implementation
• What We Did and How We Did It
• Major Success Factors Allowing Us to Do It
• New Functionality Used Intercompany and
  Multi-Currency
• Scott Pow, Principal Consultant, DARC Corporation
• 6 Years Oracle Experience
• Several 11 and 11i Projects Implementations
• Projects Application Consultant
• Projects User
• Projects Teacher
• Projects SME and Team Lead on This Project

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Client Overview

• Global Organization
• Software Development
• In House and Traveling Support
• Consulting Services
• To Complement Software Implementations
• Dissolved at End of Project
• Approximately 200 Employees
• Approximate Annual Revenue 15 Million
• Offices in US, London, and Germany

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Project Motivation

• Integrated and Scalable Solution
• Intelligent and Adaptable System
• Provide Foundation for Growth
• Client Revenue at Project Start Software
  90, Consulting 10
• Client Projected Revenue in 24 Months Software
  10, Consulting 90

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Project Motivation

• Reduce Need for Manual Intervention
• Could Not Continue On Current Systems
• Epicor for Financials
• Siebel for Sales Force Automation
• Excel for Reporting
• Fully Web Enabled
• Easily Accessible to Global Users

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Project Motivation

• For Services Organization
• Integrated Project Accounting System
• Single Point of Entry for Time and Expense
• Automated Revenue Recognition and Billing
• Flexibility in Setting up New Projects
• Reduce Strain on Admin and Finance

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Project Overview

• Pre-project Work Done Before Core Project Team
  Arrived
• Scope Determination
• Preliminary Definition Meetings
• Project Plans
• Staff Requirement Analysis
• Completed at the End of 2000
• Official Project Start Date November 27, 2000

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Project Overview

• First Month (December 2000)
• Project Manager Prepared Project Plan
• Project Team Members Arrived
• Some Preliminary Requirement Meetings
• Full Team Assembled January 1, 2001
• Original Go Live Date April 1, 2001
• Implementation Days 90
• Very Aggressive but Achievable

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Project Overview

• Oracle 11i Applications Implemented
• Projects
• iTime
• iExpenses
• Human Resources
• General Ledger
• Accounts Receivable
• Accounts Payable
• Purchasing
• Fixed Assets
• Alerts

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Project Overview

• Four Sets of Books
• Five Operating Units
• Three Functional Currencies
• US Dollar
• British Pound
• German Mark
• Several Transactional Currencies
• Application Version 11.5.3
• Database Version 8.1.6
• Platform Sun SPARC Solaris 2.6

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Project Overview

• Four Main Phases

Requirements
Design
Build
Transition
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Project Timeline

• Phase One - Requirements
• Begins January 1, 2001
• Requirements for 4 Weeks
• End Last Week of January

Requirements
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Requirements Phase

• Two Main Steps
• Requirements Analysis
• Map and Gap Analysis
• Requirements Analysis
• Understand and Document Business
• Client Knowledge Transfer of Oracle Applications
  Functionality
• Map and Gap Analysis
• Map Gaps Between Clients Requirements and Oracle
  Applications Functionality
• Result Customization or Change in Client
  Business Processes

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Requirements Phase

• Typical Project Requirements Then Gap Analysis
• This Project Requirements Done in Parallel With
  Gap Analysis
• When Gap Came Up
• Documented Gap and Alternatives
• Provided Multiple Solutions and a Recommended
  Solution
• Completed in 48 Hours of Identifying Gap
• Client Reviewed and Decided

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Requirements Phase

• During Aggressive Schedule Gaps Bad
• Unplanned Custom Work Delayed Go Live Date
• Recommendation Determine Gaps During Scoping
  and Work Into Project Plan

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Project Timeline

• Phase Two - Design
• Begins January 15, 2001
• Design Phase for 10 Weeks
• Ends Week Before Scheduled Go Live Date

Design
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Design Phase

• Three Main Steps
• Version Verification
• Setup Design
• Conference Room Pilot (CRP)
• Version Verification
• AKA Playground Instance
• Ensure Oracle Functions As Expected
• Setup Only to the Extent to Get It to Work
• Do Not Include Final Business Requirements

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Design Phase

• Setup Design
• Translate Client Requirements Into Setups
• Setups Done in Our Test Instance
• Documented Setup Steps
• Reviewed and Approved by Client
• Test Instance Used for Both CRP and System
  Testing
• Conference Room Pilot (CRP)
• Execute Key Business Scenarios With Client So
  They Can See How System Will Meet Their
  Requirements

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Project Timeline

• Phase Three - Build
• Begins January 22, 2001
• Build Phase for 9 Weeks
• Ends Week Before Scheduled Go Live Date

Build
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Build Phase

• Two Main Steps
• Custom Development
• System Testing
• Custom Development
• Legacy Data Conversions
• System Interface Development
• Custom Reports
• Alerts and Extensions

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Build Phase

• System Testing
• Thoroughly Test Integrated Solution
• Same Instance for CRP and System Testing
• Heavy Client Involvement
• Technical Knowledge Transfer
• Users Numerous Testing Scripts Resulting in Fully
  Tested System and Well Trained Users

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Project Timeline

• Phase Four - Transition
• Begins February 5, 2001
• Transition Phase 8 Weeks
• Last 8 Weeks of the Project

Transition
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Transition Phase

• Two Main Steps
• Training
• Transition
• Training
• Almost Completely Client Driven
• Considerable Amount of Time on System
• Time and Expense Training
• DARC Prepared Training/procedure Documents

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Transition Phase

• Transition to Production
• Setting up Production Instance
• Delivered Project Material to Client, Like User
  Setup and Procedure Documentation
• Transitioned Open TARS

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Project Timeline

• Extremely Aggressive First 7 Weeks
• Requirements
• Gap Analysis
• Finalizing Setups
• Designing Technical Specifications
• Heavy Testing
• Tars

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Project Timeline
Requirements
Design
Build
Transition
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Implementation Success Factors

• Client Involvement and Dedication
• All Phases of Project
• Fully Committed in Time and Success
• Took Lead in Several Areas
• Thoroughly Reviewed Documents
• Flexible in Changing Business Process
• On System Learning Throughout the Project

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Implementation Success Factors

• Strong Ownership From Client Management
• Quickly Reviewed and Resolved Issues and Gaps
• Stood by Decisions
• Encouraged and Supported Key User Involvement
• Vocal and Supportive to Entire Team During
  Project Team Meetings

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Implementation Success Factors

• Experienced Focused Project Team
• Consultants From DARC Corporation
• Key Client Personnel
• DARC Provided Functional and Technical
  Consulting, Along With DBA Support
• Team Had Average of 5 Years Experience
• Previously Completed Several Implementations
  Together
• Strong Project Management
• Project Manager Had Significant Management and
  Implementation Experience

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Implementation Success Factors

• Using and Following Detailed Project Plan
• Clearly and Accurately Planned Out
• Keep to Time Frames and Dates
• Used Prior Projects As Guideline
• Weekly Update Comparing Actuals to Budget
• Provided Weekly Estimates to Complete
• Plan to Get Back on Schedule
• Weekly Status Meetings to Discuss Progress,
  Issues, Concerns, and Upcoming Weekly Plan

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Implementation Success Factors

• Stable System Early On In Project
• 11i Essentially New
• Setup Play Within First Week
• Began Testing New and Key Functionality
• Found Many Bugs/issues
• Playground Instance Used a Lot During First 6
  Weeks

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Implementation Success Factors

• Strong DBA Support
• Client Did Not Have a DBA So DARC Provided One
• Very Experienced With Apps and Oracle Support
• Great Communicator
• Applied Patches Day or Night on Site or off
• Very Involved in TAR Resolution Process
• Helped Bridge Gap Between Oracle and Team

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Implementation Success Factors

• Standard Methodology Modifications
• Training
• Testing
• Instance Management

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Implementation Success Factors

• Training
• Participated in Support Role for Training
• Provided Training/procedure Documents
• Client Held Formal Class for iTime and iExpenses
• Informal, On the Job Training for Applications
• Oracle Class Did Not Fit Into Plan
• Learn More by Testing the Applications

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Implementation Success Factors

• Testing
• Limited of Test Cases While Still Covering All
  Functionality Areas
• Efficiency Testing
• Key Devoted Clients Spent a Lot of Time Testing
• Test Plan Key Application and Integration
  Points
• Time up Front Saved Backend Time
• Benefited From Consultants Who Really Knew Their
  Respective Apps
• Utilized Metalink

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Implementation Success Factors

• Testing
• Keyed in on New 11i Functionality and Core
  Processes
• More Complex, Important and Highly Used Processes
  and Forms
• Documented Expected Results

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Implementation Success Factors

• Instance Management
• Combined CRP and System Test Instances
• CRP Standard Functional Setups and
  Functionality
• As Changes Occurred After CRP, They Were Added to
  CRP Instance
• As Customizations Became Ready, They Were Moved
  Into the Crp/Test Instance
• Final Integrated Test Run Through

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Implementation Success Factors

• Other Lessons Learned
• Strong Communication Between Applications in All
  Areas (Requirements, Testing, Setups, Issues)
• Work As a Team
• Ask for Help on System and Business Issues
• Invest Time in Educating Users
• Use the System Whenever Possible

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Projects 11i Key Challenges

• Gaps
• Labor Costing
• Invoicing
• Reporting
• Alerts
• Intercompany Processing
• Account Generator
• TARS

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Projects 11i Key Challenges

• Gaps Labor Costing
• Client Requirement Spread Labor Cost
• Oracle Functionality Hours Entered X Labor Cost
  Rate Labor Cost
• Use Extension
• Hourly/Salaried and Exempt/Non-Exempt
• Custom Pre-Process to Mark Previously Costed
  Labor Items As Not Costed to Get Full Weekly Cost

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Projects 11i Key Challenges

• Example An employee makes 52,000/year
  (1,000/week or 25/hour)

Employee works 40 hours in a week
1,000 (40 25)
1,000 (1,000 spread over hours entered)
Employee works 50 hours in a week
1,250 (50 25)
1,000 (1,000 spread over hours entered)
Employee works 30 hours in a week
750 (30 25)
1,000 (1,000 spread over hours entered)
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Projects 11i Key Challenges

• Gaps Invoicing
• Invoice Report Formatting
• Grouping of Invoices Across Multiple Projects
• Gaps General Reporting
• Projects Does Not Really Provide Many Valuable or
  User Friendly Reports
• Client Had Not Decided on Solution
• We Documented Requirements

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Projects 11i Key Challenges

• Alerts
• Missing Time Alert
• First One to Employee
• Second One to Regional Manager Summary Alert
• First Time Project Charged Alert
• Sent to Project Manager THE FIRST TIME Someone
  Charged Their Project
• Included Billing Rate Using Same Logic As
  Projects
• Goal of Speeding up Invoicing Cycle

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Projects 11i Key Challenges

• Intercompany Processing
• Major Challenge for the Client Project Team
• Oracle Documentation Was Lacking in Substance and
  Clarity
• Logged Several TARS Requesting Clarification
• Client Decided to Allow Cross Charging Between
  Companies/Legal Entities, but Manually Produce
  Invoices Between Them

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Projects 11i Key Challenges

• Account Generator
• Accounting Requirements Between Operating Units
• No Provided Parameters
• We Customized Account Generator
• Incorrect Default Sub Process

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Projects 11i Key Challenges

• TARS A Sampling
• Contract Project Changing Invoice Currency
• Transaction Import Too Many Employees
• Transaction Import Adjustments
• Adjusting AP Supplier Invoices in Projects
• Adjusting AP Expense Reports in Projects
• Invoicing Streamline Process
• Invoicing Credit Memos Taxes
• Expenditure Inquiry Intercompany Transactions

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Intercompany Processing

• 11i New Functionality
• True Multi-org Environment
• Segregate Data
• Customers (Shared)
• Sites (Per OU)
• Agreements (Per OU)
• Projects (Per OU)
• Allow Cross Charges
• Project AND Task Level
• Make Part of Template

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Intercompany Processing

• Setup Steps Per Operating Unit
• Implementation Units
• PA Periods
• Cost Rates
• Bill Rate Schedules
• Project Types
• Project Templates
• Autoaccounting
• Projects
• Profile Options
• Remaining Steps Are Across Operating Units

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Intercompany Processing

• Cross Charge
• Provider Org Different Than Receiver Org
• Different Cross Charge Types
• Intra Operating Unit
• Inter Operating Unit
• Intercompany
• None
• Determined When Processing Transactions (Either
  Distributing Costs or Importing)
• Cost Follows Expenditure Org, Revenue Follows
  Project Org
• Type Determines Processing Options

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Intercompany Processing
Company ABC
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Intercompany Processing
Company ABC
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Intercompany Processing
Company ABC
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Intercompany Processing

• Cross Charge Processing Options
• None
• Borrowed and Lent
• Accounting Entries Between Orgs
• Realign Costs and Revenue
• Intercompany
• Generates Intercompany Clearing Documents
• Company And/or Legal Requirements
• Inter-project Billing
• Subcontractor Relationship Between Projects
• Accumulate Charges on Provider Project, Then
  Summarize and Send Them to Receiver Project Via
  AP

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Intercompany Processing

• Transfer Pricing Rules
• Transfer Price Basis
• Calculation Method
• Currency
• Transfer Price Schedule
• Assign Rules
• Unlimited
• Labor and Non Labor
• Assigned to Intercompany Billing Projects

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Multi-Currency Processing

• Pre 11i Multi-Currency
• One Currency for All Projects, Transactions, and
  Invoices in Functional Currency
• Limited Currency Functionality Could Not Meet
  Global Business Requirements

• 11i Multi-Currency
• Multiple Currencies for Accounting, Invoicing,
  and Reporting
• Supports Projects Spanning Multiple Countries and
  Currencies

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Multi-Currency Processing

• Automatically Converted Currency
• Receipt Currency
• Reimbursement Currency
• Transaction Currency
• Functional Currency
• Project Currency
• Invoice Currency

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Multi-Currency Processing

• Company With Two Operating Units

• US Division Wins Multi-national Project and
  Client Wants Invoices in German Marks

Company ABC
US Division Functional Currency USD
European Division Functional Currency Euro
Project 123 Project Currency USD Invoice
Currency DEM
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Multi-Currency Processing - Time
Company ABC
US Division Employees
European Division Employees
Time
Time
Functional USD Project USD Transaction USD
Functional EUR Project USD Transaction EUR
Project 123
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Multi-Currency Processing - Expenses
Company ABC
US Division Employees
European Division Employees
Expen s e s
Expen s e s
Receipt GBP Reimburse EUR Functional
EUR Project USD Transaction EUR
Expen s e s
Receipt USD Reimburse USD Functional
USD Project USD Transaction USD
Receipt GBP Reimburse YEN Functional
EUR Project USD Transaction EUR
Project 123
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Multi-Currency Processing - Invoice
Project 123
Transactions US Time US Expenses Euro
Time Euro Expenses
Invoice US Time in DEM US Expenses in DEM Euro
Time in DEM Euro Expenses in DEM
Generate Invoice
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Multi-Currency Processing - Invoice
Project 123
Transactions US Time US Expenses Euro
Time Euro Expenses
Invoice US Time in GBP US Expenses in GBP Euro
Time in GBP Euro Expenses in GBP
Generate Invoice
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Summary

• Our 11i Implementation Was a SUCCESS
• Clearly Defined Project Plan
• Strong Client Involvement and Leadership
• Strong Project Management
• Experienced and Focused Project Team
• Stable System Environment
• Strong DBA Support
• Utilize New Functionality
• Intercompany
• Multi-Currency

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Summary

• Questions
• Answers

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Contact Information

• Scott Pow
• Principal Consultant
• DARC Corporation
• Email Spow_at_darc.com
• Website WWW.DARC.COM
• Phone [phone]
• Or Stop By OUR Booth