On Time and Within Budget

1. On Time and Within Budget Business Transformation Oracle Financials, Purchasing End of the Beginning

2. On Time and Within Budget ? • Senior level sponsorship • Definition Phase to confirm requirements • Created Process Owners • Fixed price implementation • No customisation • Strong project management

3. Sponsor’s Vision • Single point of entry of information onto the system • Validation at source • Minimise manual processes • Introduce better management control by providing in-year resource information • Improve the timeliness and quality of management information.

4. LAUNCH 2 June ‘03 7 wks 18/7 26/9 10 wks 8 wks CRP1 Event 13/2 13 wks 7 - 11 July UAT CRP2 Event 8 - 19 Sept CRP3 Event 10 - 14 Nov 6 wks User Testing 12 Jan – 6 Feb Training Training Preparation Overview of the Project Sep Oct Nov Dec Jan Feb Mar Apr Jun Aug Jul 21/11 Mobilise/CRP1 CRP 2 CRP 3 Transition GO LIVE 1 April ‘04 Technical Development

5. WHAT ?

7. The VISTA Solution Positions Human Resources Purchase Ordering Commitments Personnel Cost centres PO’s Expense General Ledger CMG Payroll Salary data Accounts Payable Accounts Receivables

8. DH now has a Process Approach to Departmental Management • Business ‘benefits’ are now probable not possible! • In-system budgeting - monitoring and controlling budgets • Resource accounting - visible commitments • Treasury Management - controlling cash centrally • Purchasing against Contracts/PO’s - controlling expenditure • Accounting Central Control - managing transactions • Self-service - procurement, expenses, employee details • Will reduce the administration burden ( e.g. reduce the need for BCLO’s)

9. HOW ?

10. Vista - A Simple View...

11. Vista - A Simple View User User logs onto Vista and raises a REQUISTION (this could be from an online catalogue)

12. Vista - A Simple View Vista routes the Requisition to... User

13. Vista - A Simple View Approver User Who has authority to approve or reject the requisition, If approved….

14. Vista - A Simple View Approver User Vista auto-creates a PURCHASE ORDER which is emailed to the supplier. This is the suppliers trigger to work on our behalf. AND…... Supplier

15. Vista - A Simple View Approver User General Ledger Vista notes a COMMITMENT against the relevant budget in the GENERAL LEDGER Supplier

16. Vista - A Simple View Approver User General Ledger Supplier The supplier despatches the goods or services to the requisitioner.

17. Vista - A Simple View Approver User General Ledger Who completes a RECEIPT on Vista. This is noted on the General Ledger where the COMMITMENT is changed to an ACCRUAL. From a resource accounting perspective, when the receipt is completed the value of that receipt is effectively “spent”. Supplier

18. Vista - A Simple View Approver User General Ledger Accounts Payable Supplier So when the supplier sends the invoice to the Accounts Payable team in DH...

19. Vista - A Simple View Approver User General Ledger They check that the goods have been receipted. If so they pay the invoice and capture the actual expenditure. Accounts Payable Supplier

20. Opportunities Process adoption Head count savings ISG/FID relationship/teamwork Purchasing savings 10% to 25% Financial Control HR data management Threats GBT creditability and coverage Unmatched invoices New org ‘fit’ with VISTA central processes DH purchasing team DH application strategy/data management GBT HoF relationship with FID/FM FID Accounting centre performance VISTA SWOT analysis Strengths • Definition phase and planning • Process Leaders/Owners • Open relationship DH/CGEY • Pragmatic decision making • Project management • GL stream – COA and budgets • Training Weaknesses • HR data quality • Significant cost centre changes in March • Purchasing ownership in the DH • ISG bandwidth – Unity/Support

21. The End Game! • Implement the three VISTA processes • Oracle replaces legacy systems ( 25) • Electronic procurement via requisitions • Central budget management • FID head-count reduction = 11.5 • ISD head-count reduction = 3.5 • Procurement savings = 5% p.a. ( £1m plus) • Accounting centre service improvements

22. Colin Grace – Praktis Consulting Director 01925 856161 Colin.Grace@Praktis.com