using oracle projects for flexible business management

8/10/2019 Using Oracle Projects for Flexible Business Management

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Maggie Driscoll

Business Applications ControllerDirector - Finance

Cap Gemini Ernst & Young


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Using Oracle Projects

for Flexible BusinessManagement


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The Strategic ViewBackground

Oracle Products Background

Oracle 10.7 system within Cap Gemini (Implemented from 1996)

General Ledger, Accounts Payable, Accounts Receivable, FixedAssets, Cash Management, Project Billing & Costing

Human Resources & Payroll (Implemented in 1998)

iProcurement (Implemented in July 2002)

Current

All of above now on Release 11i


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The Strategic ViewBackground

Company Background Complex Business Issues

Merger of Cap Gemini and Ernst & Young Consulting & Gemini, May2000

Future

Release 12

Working closely with Oracle on future product pre-releases, includingproject management/collaboration

Self Service Human Resources


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Challenge: Business Management

Internal Cause:

Reorganisations

Acquisitions

Joint Ventures

Multi Vendor & Customer Environment

Fragmented Business Information

Cost to run Multiple Systems


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Challenge: Operational Efficiency

High Application Roll Out Costs

High Training Costs

Unable to maintain 5 day Close

Cannot view Projects across Legal Entities

Cause :

Reorganisations

Acquisitions

Joint Ventures


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Business Intelligence/Information:

Increase in demand for analysis of data &

information in challenging times

Invoicing: Internal Complexity vs. Customer contracts

Multi Currencies

Global deliveries

Challenges: Global Operations &

Financial


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Cap Gemini Ernst & Young UK & Ireland

Reorganisations & Joint Ventures

Cap Gemini Ernst& Young UK

Telecom UK

Telecom IRE

Cap Gemini Ernst& Young IRE

5 Independent Systems

4 Entities

1 Instance

EY Consulting UK

Cap Gemini UK

Gemini Consulting UK

+

+

Cap Gemini IRE

EY Consulting IRE

+


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Cap Gemini Ernst & Young UK &Ireland Challenges: Year 2000

Solution :

Financials

Project Costing

Project Billing

Oracle 11i

Upgrade

Business Management

Reorganisation/ Acquisition/Joint Venture

Multi Vendor & Customer Environment

Fragmented Business Information

Cost to run Multiple Systems

Global Operations & Financial

Business Intelligence

Multi Currency Invoicing

Operational Efficiency

High Application Roll Out Costs

High Training Costs

Unable to maintain 5 Day Close

Cannot view Projects across Legal Entities


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CGEY Oracle Projects &Ledgers

OPAL


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Oracle Projects & Ledgers

PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

Hyperion

Fixed

Assets

AR

GL

AP

Cash

Mgt

E-ProcurementHyperion

HR /

Payroll


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PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

FDC

Fixed

Assets

AR

GL

AP

Cash

Mgt


AP Costs

Employees

Salaries etc.

Employees

Vendor

Invoices

AP Costs



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PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

FDC

Fixed

Assets

AR

GL

AP

Cash

Mgt

AP Costs

Employees

Salaries etc.

Employees

Vendor

Invoices

Billing Billing

Billing

BillingRevenue

Charges / RecoveriesTimecard

& Expenses

AP Costs



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PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

Hyperion

Fixed

Assets

AR

GL

AP

Cash

Mgt

AP Costs

Employees

Salaries etc.

Employees

Vendor

Invoices

Billing Billing

Billing

BillingRevenue


& Expenses

AP Costs

Sales

Funnel

Upload

On-Line

Authorisation

E-Procurement


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PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

FDC

Fixed

Assets

AR

GL

AP

Cash

Mgt

AP Costs

Employees

Salaries etc.

Employees

Vendor

Invoices

Billing Billing

Billing

BillingRevenue


& Expenses AP Costs

Sales

Funnel

Upload


REPORTING

Business Objects


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PA

DTX

WORKFLOW

RETAIN

CUSTOMERS

HR /

Payroll

SIEBEL

FDC

Fixed

Assets

AR

GL

AP

Cash

Mgt

AP Costs

Employees

Salaries etc.

Employees

Vendor

Invoices

Billing Billing

Billing

BillingRevenue


& Expenses AP Costs

Sales

Funnel

Upload


REPORTING

Business Objects

OFA

Discoverer


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Using Oracle Projects

for Flexible BusinessManagement

HOW & WHY?


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Cap Gemini Ernst & Young requires anapplication to accommodate our

ever changing organisational structure.

Our managers also need the capability

to gain projects visibility across

legal entities in a single instance.Oracle 11i

meets these objectives

Christine Hodgson

CFOCap Gemini Ernst & Young, UK& Ireland


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Oracle Projects Design

Business Rule

Everything is project coded

Matrix Reporting

Project Ownership, Types & Classifications

ExtractsCross Operating Unit

Customisations

Time & Expense Recording - DTX

Forecasting

Borrowed & Lent

Designed in 10.7

Auto Accounting rules

GL Segments

Not using 11i functionality

Intercompany functionality

Extensions - flexibility


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Oracle 11i inter-company functionality

enables the UK not to incur additional

overheads in the area of 'intra-geography'

trading and runs a relatively seamless

operation, which most importantly isseamless to our clients and

to our consultants.

Luc Bourguignon

Director - Finance, Group Reporting & QualityCap Gemini Ernst & Young, UK & Ireland


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Oracle Projects Design

One Instance of Oracle Financials

4+ Legal Entities - Multiple Functional Currencies

Multiple Divisions

6500+ Employees

400 Business Units

8000 Projects


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How & Why Projects.

All revenue, cost & commitment is project

coded

Simple Project StructureAll Operating Units

Resources

Margin comparison

Project & Delivery Financial Mgt

Reporting


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Project Structure

Simple

Any resource can be charged to any project!

Charges & Recoveries (Borrowed & Lent)

Reporting design Project Owner

Project Classifications

Project Types

Customers Revenue Categories

Cost Categories


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Why hierarchies

Projects & Resources owned by business

units

Matrix Reporting as if owned

Extracts of data

Can restate history without transactional

impact

Core Functionality


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As with all large organisations, weinevitably hone our organisation each

year. The 11i functionality enables us to

manage re-organisations using core

functionality from within Projects.

The use of 'multiple hierarchies' means

that we are able to more easily produce

matrix reporting with little or no effect ontransactional data or legal entity.

Maggie DriscollDirector - Finance, Operational & Functional

Cap Gemini Ernst & Young, UK & Ireland

Executive Conclusions


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Invoicing

Work/Work

Simple & Composite Billing

Customisations

Composite BillingMultiple projects

Simple print module


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Intercompany Design

Seamless view & management of the project acrossOperating Units

Allow cross charging of all resources on projects

Automated intercompany

Transfer Price rules Operating Unit

Business Unit

Project

Use of extensions provides flexibility Billing

Costing


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And the Result.

Massive data reorganisations can occur usingcore functionality in Projects

Hierarchy changes

Changes to Lists of Values in PA Amending Transfer price rules

Restate history through reporting rather thantransactional change

Audit Trail maintained on the Project Audit Trail maintained for Customer

Audit Trail maintained in the Ledgers


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Our management accounting & invoicing functions

are dispersed throughout the company.

Oracle Projects allows us to bill our customers, but

analyse the revenue & costs according to our own

internal structures.

Most of my units business users dont even knowwhat the General Ledger is!

Ian MurphyFinancial Controller

Cap Gemini Ernst & Young, UK & Ireland



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Oracle Projects has been a complete success for

us, giving us ongoing financial benefits

At the same time it has allowed us to compress the

financial close cycle,

with improved quality of business reporting, whichwould have only been possible through complex

General Ledger Reporting

Tony DeansVice President

Cap Gemini Ernst & Young, UK& Ireland

and to conclude


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and of course life

really is not quite that simple, but

Oracle Projects certainly helps


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Q U E S T I O N SA N S W E R S


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OU1 Org

LL Org1 (OU1)

LL Org2 (OU1)

Cons Org (OU1)

Features: Single Primary Hierarchy for System

Hierarchical Structure Business Group Organisation at Top of Hierarchy

Consolidation Organisations as well as Low Level Organisations

Used as Default Hierarchy for GOP and other reporting

All Organisations in each Sub Hierarchy belong to same OU

Business Group Org

OU2 Org

LL Org1 (OU2)

LL Org2 (OU2)

Cons Org (OU2)

OU3 Org

LL Org1 (OU3)

LL Org2 (OU3)

Cons Org (OU3)

Primary Reporting Hierarchy


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LL Org1 (OU1) LL Org2 (OU1)

Cons Org1

Features: As many Alternative Reporting Hierarchy as required

Hierarchical Structure

Any Organisation can be at Top of Hierarchy

Low Level Organisations do not necessarily appear in every Hierarchy

Organisations from different OUs can appear at all levels and branches

Used for Memo and other special reporting

Alt Hierarchy Top Org



Cons Org2

Alternative Reporting Hierarchies


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OPAL 11i UPRADE - Intercompany

Provider Receiver

TPO

TPROJ

ICPO

ICPROJ

RO Books to

AR AP

Actu al Chargeand Recovery

Not ional Chargeand Recovery

AR Invoice

Generates Posts

TPROJ - Target Project

ICPROJ - Inter Company Project

RO - Resource Owning Org

ICPO - Inter Company Project Owner

TPO - Target Project Owning Org

KEY

AP Invoice


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OPAL 11i UPGRADE - Intercompany

Provider Receiver

TPO

TPROJ

ICPO

ICPROJ

RO Forecasts

Absorbed Cost

ForecastProject IC

Revenue

Forecast

TPROJ - Target Project

ICPROJ - Inter Company Project

RO - Resource Owning Org

ICPO - Inter Company Project Owner

TPO - Target Project Owning Org

KEY

IC Project

Forecast

Process

TPOABC

TPOABC - Absorbed Cost Forecast

Project for TPO


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11i Transfer Price Extension

Get Cross ChargeTP Schedule

Identify Relevant Line / Rule

Target Pro ject

B il l Rate

Get Bill Rate Rate = Null

i .e. Use Std Appl

Functionality

Apply Line/RulePercentages

11i St d d C ti M d l


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11i Standard Costing Module

Std Cost wi th

DSA check

Std Cost no

DSA check TargetProject Bi l l

Rate

Nominated

Bil l Rate

Schedule

Get Costing TP

Schedule

Identify Relevant

Line / Rule

Apply Line / RulePercentages

DSA

Check

Rate =

Zero

Get Std

Cost

Get Bill

Rate


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Upgrading to 11i Financials enabled us torun all our accounts from a single, centrally

managed database.

We are able to roll out new applications to

the thousands of PCs in use in the UK &

Ireland.Users can quickly and easily access

information using any internet browser.

Jeff Clark

Project Manager,Cap Gemini Ernst & Young, UK& Ireland


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