Multinational Implementation Challenges — Panel Northern California GEO

Multinational Implementation Challenges - Panel Northern California GEO Group Training Day Jan 24 2006 Sponsored by the OAUG Multi-National Special Interest Group Hans Kolbe, Celantra Systems, Inc. – Chairperson MN-SIG Kranti Atluri, Silicon Storage Technology, Inc. Nga Do, Salesforce. com Paul Kirch, Independent Consultant MN-SIG Panel - Nor. Cal 2006

Goals of the Multi-National Special Interest Group? - Cross-Module and Cross-Geographies Processes and Issues specifically facing global or multi-country Oracle applications users Organize exchange of ideas and experiences Take active role in OAUG Enhancement process with Oracle Corporation Synchronize with other SIGs and GEOs MN-SIG Panel - Nor. Cal 2006

Objectives of Global Implementation Workshops • Communicate and Share Oracle Functionality Improvements, Third Party solutions and in-house solutions • Collect Feedback for Oracle CAB and Liaison sessions • Communicate program and project experiences Previous Multi-National SIG Workshops at Oracle Open World and at OAUG conferences in 2003 -05, Paris June 2004, Oct 03, London June 03, Nor. Cal July 2003). MN-SIG Panel - Nor. Cal 2006

Global Implementation Key Issues • Key project and business decisions: – Central versus local or regional control – Containing and tracking variations without compromising integrity (DFF, Transaction Types, COA etc. ) – Customer, Vendor, Item global visibility, naming conventions, and maintenance – Project Management across countries and regions, central team, local teams, external sources • Key Oracle functionality issues remain: – Multi-org restrictions as related to Shared Services and Supply Chain Visibility – Uncertainty about Legal Compliance tools (Globalizations, GAE, VAT) and varying legal requirements – Intercompany models are not sufficiently developed – Language issues (NLS, MLS) – Single instance Issues (Performance, Time Stamp, Sys Admin complexities) MN-SIG Panel - Nor. Cal 2006

MN SIG Workshop Results § § § Significant shift to Global Implementations with 11 I Upgrade: consolidate instances, global COA, global or regional business processes, SSCs. Biggest issues confirmed: Multi-Org, IC, Legal Compliance Better direction from Oracle required to avoid lengthy investigation and verification by each individual client. Requesting recommendation of alternatives and complimentary tools. Example: Sales tax or Trade compliance). No Global Implementation is known without significant customizations. Negative Feedback (if used at all): Gl. S, Global Accounting Engine, MLS, Multi-Byte, MRC, Euro Conversion, Positive Feedback: Improvements to PA Accounting including crosscharging, OM, GL consolidation tools, IC Drop-Ship functionality in 11. 5. 9. , Internal Sales Orders in 11. 5. 9 Patch Set H and 11. 5. 10. High hopes for Release 12 – to be confirmed. MN-SIG Panel - Nor. Cal 2006

Norcal OAUG 19 March 2018 International and Global Implementation Karen Mc. Grath Assistant Controller S i l i c o n S t o r a g e T e c h n o l o g y, I n c. MN-SIG Panel - Nor. Cal 2006

Company and Background • SST is a leading provider of nonvolatile memory solutions • Is a fabless company headquartered in Sunnyvale, CA • Running on a single Instance with multi-org • 17 Legal entities in 12 countries • 24 Sets of Books with 5 inventory orgs, 5 have sub-ledgers, the others are used for GL consolidation with TB entry MN-SIG Panel - Nor. Cal 2006 SST Proprietary and Confidential

Project Background • Currently running on Oracle 11. 0. 3 since Jan 2000 • Use AR, AP, GL, FA, OE, PO, BOM, WIP, INV and Costing modules • Large customizations include systems to process Vendor data and invoice automation • Currently all ERP support is centralized in SV, CA with one person in Macao for local support on local time zone MN-SIG Panel - Nor. Cal 2006 SST Proprietary and Confidential

Major Implementation Goals • Plan to upgrade to 11. 5. 10 and implement OSFM, HRMS, Procurement and ASCP in Phase II I- • Plan to implement B 2 B solution with the trading partners to process vendor data • Implement Oracle as primary transaction system for most subledgers. Plan to implement multi currency and multi language • Decentralize Accounting functions to offshore locations using local language and local currency • Phase out Local Accounting systems like UFS and VAT System used in offshore locations and have everyone use Oracle ERP MN-SIG Panel - Nor. Cal 2006 SST Proprietary and Confidential

Challenges and Concerns • Uncertainty of VAT and local Accounting requirements • Local HR requirements not easy to access to give requirements to the implementation team to setup • Language issues and reporting requirements for local compliance • Currency translations and reconciliations between Inter Company transactions MN-SIG Panel - Nor. Cal 2006 SST Proprietary and Confidential

S i l i c o n S t o r a g e T e c h n o l o g y, I n c. THINK BEYOND FLASH. . . Think Super. Flash MN-SIG Panel - Nor. Cal 2006

Introduction • Paul Kirch (paul_kirch@yahoo. com, cell: 408 -316 -5899) • Independent Oracle consultant with 10+ years experience with Oracle Apps • Specialized in international implementations, with project experience in South America, Middle East, Europe and Asia, including Japan, PRC, and Taiwan • CPA, MBA in International Finance, and a candidate for CFA (Certified Financial Analyst) designation • Current Project: Full suite of Oracle apps in rollout to 40+ countries around the world, including China, India, Japan, 15 European countries, and the US • Topic: Global Multi-org design at Portland-based company, with principal manufacturing sites in Hillsboro, Ore. , Peabody, Mass, Acht, Netherlands, and Brno, Czech Republic MN-SIG Panel - Nor. Cal 2006

Multi-Org Alternatives A) Standard Model - one SOB per country/currency; one legal entity/operating unit per legal entity. A country/legal based model. B) “Inverted” Model – shared operating unit for shared business processes - local GL SOB for legal/statutory reporting. A business process efficient model. MN-SIG Panel - Nor. Cal 2006

Standard Oracle (“Silo”) Multi-Org Model All Subsidiaries are Parallel Entities Ledger Consolidation Central Ger L 1410 1462 Fra U. K Ita Swe Den 1475 1473 1463 1444 1432 Fra Inventory EE Mea Hol Bel Swi Aus Spa Pol 1461 1442 1465 1415 1467 14 xx Swe Den Fin Nor Spa Por Per Operating Unit : One Validation Org for VAT rates , One Planning Org , Global MN-SIG Panel - Nor. Cal 2006 Master.

Enterprise Consolidation With “Push Down/Push Up” Model WW Consolidated So. B GL Book of Record IT Company Asia and U. S Company Europe FR DE Eliminations and Consolidations Entries HK MN-SIG Panel - Nor. Cal 2006 SG Local Legal Adjustment Entries are booked at country level

Shared Operating Unit Model General Concept Shared Processes for Sales and Service Entities Local Legal Adjustment Entries are booked at country level Unit A Global Operating Unit GL, OM, AR, INV Entity Separation by Balancing Segment Unit B Unit C Unit D Unit E Local Processes (AP, FA, Payroll…? ) MN-SIG Panel - Nor. Cal 2006 Unit F

MN-SIG Panel - Nor. Cal 2006

More versus Fewer Inventory Org Tradeoffs Issue More Inventory Organizations Global MRP and Global Visibility to WIP Requires more MRP runs. Spares and MFG have No global MRP different MRP requirements Inter-org Transfer Transactions More difficult as need to issue and receive Not needed if move within 1 inventory org Financial Transactions (AR and AP invoices) Supported through Trading Networks Not supported within 1 inventory org Global Visibility to Inventory and Demand More difficult with less visibility with > orgs Less difficult (ideal is a single inventory org) Ability to forecast and measure More difficult without Advanced Supply Chain Less difficult (ideal is a single inventory org) Global Cost NA NA MN-SIG Panel - Nor. Cal 2006 Global Item Maintenance NA Fewer Inventory Organizations N/A