Designing and Implementing a Global Financial System for

Designing and Implementing a Global Financial System for Europe Presenter: Lourdes Godfrey

Introduction About Equifax Premier provider of information that enables businesses to assess risk. We offer our clients solutions to identify, solicit, and acquire new customers; process transactions; & manage customer relationships. • Year 2000 Revenues: US$ 1. 8 billion • 1999 awarded BBB Online Privacy Seal

Introduction About the presenters: • Lourdes Godfrey, AVP International Financial Systems – Global Program Manger for Oracle Financials implementation • Mike Gruen, Senior Business Analyst International Financial Systems – Global coordinator for Oracle Financials Implementation.

Introduction Oracle Project Overview • Mid-1998 recognized need to replace international legacy systems • Selected Oracle after brief selection process • Developed roll-out strategy & defined KPI • Implemented Europe first & designed the global template • Scope: GL, AR, AP, PO, CM, FA, SSP, WE

Background The Selection Process • Significant support in local countries • Allow single instance implementation – Multiple languages in a single instance – Single instance supporting country-specific “localizations” – 100% WEB based • References who implemented using similar approach in similar countries.

Background The Roll-out Strategy • Two data centers: Europe & Americas • Proposed Technical infrastructure • Modules: GL, AR, AP, PO, CM, FA, SSP, WE • Implementation Approach • Site qualification criteria • Where / how global template developed

Background The Roll-out Strategy (Cont. ) • Complexity of each implementation • Sequence / timing of roll-out • Which release to implement (11. 03 / 11 i ) • High-level overall global costs to implement.

Background High-level plan

Implementing the Strategy It’s Aug. 1998 - Spain’s on First…. • Address Y 2 K issues with existing system • Integrate with new custom billing system targeted to go live 1/99. • Phase 1: Implement AR & GL 10. 7 fast! • Phase 2: AP & enhanced reporting • KPI and Global Design were not done yet - agreed would bear risk of retrofitting.

Implementing the Strategy Key Lessons Learned in Spain • Super Users must be involved 100% • Use backfill resources effectively • 100% of regulatory requirements and common Spanish business practices NOT covered by Oracle’s localizations • AX module for S. European countries tax reporting requirements encourages using multiple SOBs vs. Multi-org.

Implementing the Strategy UK’s on Second, but really First. . . • UK target site for Global template – Rich consolidation complexity – representative of all lines of business • Implement UK & Ireland first using the global template, then migrate Spanish databases to form consolidted European datacenter.

Financial BPO Then Things Changed ! • Corporate decision to outsource back- office finance and accounting processes. • Impact on overall planning: – Outsource first, then implement Oracle – Implement Oracle first, then outsource – Outsource and Implement at same time! • Lower overall cost & quicker realization of benefits drove us to do both.

Financial BPO Practical Project Implications: • Move to outsourcing location coincided with go-live date. • Ownership / Management of super users transferred to BPO • BPO transition & communications Mgt. • Stakeholder Management • Organizational Change Management • Corporate Involvement & Ownership

Geographical Scope Location: Function: No. Staff: Legacy: Bradford Arndale Finance & Admin 90 Peoplesoft Location: Function: No. Staff: South Shields, BPO Finance ? Location: Function: No. Staff: Legacy: Wexford Finance & Admin 3 Pegasus OPERA Location: Function: No. Staff: Legacy: Bradford ITC IT Support 10 - Location: Function: No. Staff: Legacy: Madrid Finance & Admin 15 ORACLE FIN 10. 7 Location: Function: No. Staff: Legacy: London Cap House 8

How we did it Global Steering Committee • Process Owners may be a combination of Pw. CES and/or Equifax Staff

How we did it European Steering Committee

How we did it Global Process Teams: Global Process Team: • UK AP & PO • UK AR/Billing • UK Mgt. Reporting • S. America AP/PO • South America Mgt. Reporting • Spain AP/PO • Spain AR/Billing • Spain Mgt. Reporting • Internal Audit • Corporate Consol. Reporting • N. Amer. AP/PO • N. Amer. AR/Billing • North America Mgt. Reporting • Internal Audit

How we did it Global Design Approach:

Project Plan - Analysis and Design July 2000 Aug 2000 Sept 2000 Oct 2000 Nov 2000 Programme Management Draft Co. A & Template Design Workshop on Template Design Global Design Signoff & Spain Gap Analysis Agree “CORE” Design Areas Agree Key Design Issues Global & Europe Design Reviews European & Business Design Signoff Steering Committees Prototype Set Up Demonstrated Prototype Detail Design European Prototype Workshops

Prototype & Planning Sept 2000 Global & European Signoff for Prototype Approach ORACLE Prototype Design Oct 2000 Nov 2000 Dec 2000 Global & European Signoff for System Design & Issue Resolution European Signoff for Implementation Plan & Change Management European Prototype Sessions AR & CM AP & PO GL & FA Prototype Process Design Prototype Issues & Planning Session Spanish Prototype Session Prototype Set Up Global Prototype Session Prototype Data Definition Detailed Plans: - Implementation - Cut Over - Org Change - Training - Policy Change - 2 nd Phase

High-level Overall Project Plan July 2000 Aug 2000 Sept 2000 Oct 2000 Nov 2000 Dec 2000 Jan 2001 Feb 2001 Mar 2001 Apr 2001 May 2001 Programme Management Infrastructure Development & Implementation Build System Test User Acceptance Go Liv e Phase 2 Jun 2001

Prototype Approach Advantages of this approach: • Reduced timescales & cost • Hands-on approach = early visibility and familiarization with software • Reduced need formal Oracle training • Early buy-in and focus on vanilla impl. • Timeboxing forces discipline • Cost-justifying enhancements to vanilla

Prototype Approach Challenges of this approach: • Workload is intense from day 1. • Novelty - requires repetitive explaining • Requires committed & empowered project team • Very high dependence on full-time users • Requires committed sponsorship to vanilla implementation.

Europe Phase 1 Key Lessons Learned UK Phase 1: • Get all parties involved in Global design • Constantly communicate Global design • Identify common Global reports & finalize reporting requirements early - prototype. • Empowered Super Users are key. • Plan post-Implementation support early. • Identify organizational changes early.

Project Completion Phase 2: • Phase 1 included core modules only: (GL, AR, AP, PO, CM, & FA) • Phase 2: – Self-Service Purchasing – Web Expenses – Spain instance consolidation – Spain design migration to global template

Phase 2 Approach:

Phase 2 - Spanish Integration: Feb 2001 Mar 2001 Apr 2001 May 2001 Jun 2001 Jul 2001 Aug 2001 Programme Management Initiation and High Level Analysis Apps Set-Up and Configuration System Test and Development, Build and Test U. A. T Conversion and Cutover Infrastructure Development & Implementation Go Live Implementation Support

Technical Details: • Sun E 10, 000 • 7 instances: Prototype, development, conversion, system test, UAT, production baseline, & training • 380 Gb usable disk space fully mirrored • Each DB approx. 8 Gb. Production = 70 Gb. • Network to Spain: 512 Kbps line with 256 Kbps PVC with backup 256 Kpbs line • PCs: 800 Mhz with 128 Mb RAM.

Future Plans: • Establish Americas data center in Atlanta • Roll-out to South America using the Spanish migration templates, workplan, etc. & global template as baseline in 2001 • Roll-out to US in 2002. • Add-on Global Billing (under analysis) • Add-on OFA or BIS reporting (future analysis)

Conclusion: What we did: • Implemented Oracle Financials 11 i – single instance for Europe – two languages – global design template • Centralized certain processes in the UK • Outsourced finance in UK & Spain • Outsourced Application support in UK • Began roll-out in South America

Conclusion: Lessons Learned: • Explicitly define scope and objectives up front & stick to it! • Time-box major project phases. • Get full-time user resources dedicated • Implement rigorous change-control methods • Stick to Vanilla - it’s a great flavor! • Force cost-justification to modifications

Conclusion: Lessons Learned (cont. ): • Consider Organizational change implications early - roles & responsibilities • Think globally; Act locally- change mindset • Communicate frequently with stakeholders • If outsourcing attach BPO super users to hip with your super users. • Get sign-off and buy-in on all major decisions from BPO team.

Q & A and Discussion