Capgemini Kpn Presentation Obug 2009

‘ Efficiency and Effectiveness’ Improving Financial Transaction Processing and Consolidation with Financial Accounting Hub and Oracle DRM at KPN Marc de Kam, KPN Balt Leenman, Capgemini

Storyboard (hidden slide)

Introduction: Marc de Kam and Balt Leenman 5min

Tell what we are going to tell: current developments and specific: ‘efficiency and effectiveness’ (Balt)

Current Economic Developments: the impact of technology at business developments 15 min (Balt)

Down-turn economy, times and businesses are changing

Technology is changing: TechnoVision, a way to map all major developments

Business drivers and - issues

How Technology developments can address business issues

Some examples

KPN situation

KPN 20 min (Marc)

KPN profiel

Knelpunten

Opdracht

Oplossing 1: Oracle Financial Services Accounting Hub

Aanpak & Architectuur

Oplossing 2: Oracle DRM

Aanpak & Architectuur

Lessons Learned

Next Steps

Conclusions 5 min

Map back to TechnoVision and ‘efficiency and effectiveness’ (Balt)

Q&A

OBUG Antwerpen, 31 March 2009

Introduction

Current Economic and Technology Developments

KPN Financial Efficiency and Effectiveness

Conclusions

TechnoVision: a Business Technology Strategy

Introduction

Conclusions

TechnoVision approach: Technology enables TechnoVision is Capgemini’s way to map the world of technology capabilities and to determine which technologies are related to the needs of a particular business . This provides clarity so business and technology executives can focus their efforts and work together more effectively . OBUG Antwerpen, 31 March 2009 Operations cost & cash HRM Products & services Customers and Sales Trust & compliance Suppliers and partners

TechnoVision identifies 17 key information technology trends, grouped into 7 clusters Real-time Integrated Business Intelligence Mastered Data Management Google-fication Mash-up Applications iPodification Role Based User Portals Rich Internet Applications Software as a Service Packaged Sector / Segment Solutions Real-Time Business Process Control Composite Applications Jericho Style Security Sensing Networks Utility Business Infra-structure Smart Business Networks Social Collaboration Tools / Wikinomics Free Agents Nation KEY INFORMATION TECHNOLOGY TRENDS OBUG Antwerpen, 31 March 2009 Real-time integrated business intelligence Smart business networks Software- as-a-service Real-time business process control Packaged sector / segment solutions iPodification Jericho style security Mashup applications Sensing networks Social collaboration tools /Wikinomics Composite applications Role-based user portals Utility business infra-structure Free agents nation Google-fication Rich Internet applications Mastered data management

TechnoVision clusters and Oracle Solutions OBUG Antwerpen, 31 March 2009 BPEL-PM SOA Suite BPM (BEA) RTD (Real Time Decisioning) EPM (Hyperion) BAM (Business Activity Monitoring) CRM (Siebel) HRM (PeopleSoft) ERP (E-Business Suite) Industry Solutions (AIA) Oracle Data Base RAC / GRID (Virtualization) Application Server Enterprise 2.0 WebCenter UCM/ Stellent RUEI (Moniforce) BRE (Haley) ESB OBIEE DRM (Hyperion) FAH (Financial Accounting Hub)

Introduction

Conclusions

KPN Profile Telephone Internet Television Allround ICT Service Provider 38 million customers across the Netherlands, Germany and Belgium Revenues € 14,6 bn Profit € 2,6 bn Wireline Wireless OBUG Antwerpen, 31 March 2009

Legacy OBUG Antwerpen, 31 March 2009

Best In Finance

Best Practice Financial Processes

Proven IT solutions

Efficient and Effective Execution

Order to Cash Invest to Capitalize Requisition to Pay Record to Report OBUG Antwerpen, 31 March 2009

Issues Record 2 Report process

Legacy / many custom(ized) applications

Source systems have their own interface towards Oracle, with their own logic

Financial Masterdata stored in several systems

Manual post-processing of transactional data often necessary

Maintenance of accounting logic is spread across the organization, complex and not standardized

No single consistent view on financial data

The Assignment

Realise efficiency improvements and cost reduction within the Record to Report process

Realise a single and uniform source for financial masterdata

Realise a single and uniform source for accounting rules

Realise a efficient process for the management of financial master data, and accounting rules replacing the current complex, timeconsuming process

Solution 1: Improve Transaction Processing OBUG Antwerpen, 31 March 2009

The Accounting Hub

Harmonised and standardised process supported by IT by means of 1 dedicated IT tool

Minimal manual effort, aimed only at errorhandling for Journal Import

Provide subledger reports

Oracle Accounting Hub is the Oracle solution for this process

The Accounting Hub - Objectives

What does this solution resolve?

Realize efficiency and cost reduction

First time right: 99% of subledger-journal entries

Phase out (decentral) accounting tools

Improve control, transparency of transaction processing

Implement a uniform structure for accounting rules

Implement central location for the maintenance of these rules

Simple reconciliation between subledgers and general ledger

Accounting Hub - Project approach

Start with a pilot

Simple applications first

Focus on technical implementation

Test for project-organization and governance

Reduce Risk

Accounting Hub – Roll-out Strategy Phase 2 Phase 4 Phase 3 Phase 5 Phas OBUG Antwerpen, 31 March 2009 Stream Sep 08 Okt 08 Nov 08 Dec 08 Jan 09 Feb 09 Mrt09 Apr 09 Mei 09 Jun 09 Jul 09 Aug 09 Sep 09 Okt 09 Nov 09 MCCS SPM, Sret Reorganisatie GOVA Arbor (Telfort) OSP Maranello Exact (8 adm) Interface MDM Reviva ITCIS Sympac DMS PM/DM CARE

Architecture – 1 Year Ago Oracle GL Grootboek Billing System D Billing System C Billing System B Billing System A Billing System E Logistics Logistics Logistics System X System Y System Z GL Payables Purchasing Projects Inventory Receivables enrichment E-Business Suite 11i journals Web ADI Excel journals Sources (80+) OBUG Antwerpen, 31 March 2009

Architecture – As is Now Oracle BRM A Billing System C Logistics Billing System D Logistics Logistics Logistics System X System Y System Z GL Payables Purchasing Projects Inventory Receivables Excel E-Business Suite Release 11i FAH GL E-Business Suite Release 12 Custom built interface journals Web ADI journals Billing System E journals enrichment OBUG Antwerpen, 31 March 2009

Architecture – Future Billing System C Billing System B Billing System A Logistics Logistics System X System Y System Z GL Payables Purchasing Projects Inventory Receivables E-Business Suite Release 12 FAH events events journals OBUG Antwerpen, 31 March 2009

Solution 2: Master Data Management OBUG Antwerpen, 31 March 2009

DRM - Scope

Financial Master Data consisting of

Organizational units and chart of account segments

Reporting models

Procurement hierarchies

Implement an improved process for managing Financial Master Data

Data Governance

Data Rule Book

Business Rules

Data Definitions

Implement new IT

High-level Process – before DRM OBUG Antwerpen, 31 March 2009 WorkFlow System Reference DataBases

Changes take a long time

No insight into their progress

No transparent process

Unclear capturing

No clear role description

Informal structure

Long realization time

No clear definitions

Transparent business rules are not present

Ownership not clear

Long implementation time

Functional documentation is not present

No transparent process

Distribution diagram is not clear

Data flow is not straightforward

High-level Process – As is now with DRM OBUG Antwerpen, 31 March 2009 Portal WorkFlow Master Data System Systems Karis SOX New MD Item Initiator Enrich MD Item Enrich MD Item Enrich MD Item Department A Department B Department C Agora Consumer Support Verification

Master Data Governance Strategic Tactical – across departments Operational - departmental OBUG Antwerpen, 31 March 2009 Enterprise Data Management Program Management, Architects, Quality Assurance System and Data subject matter Experts

Operational Data Stewards

Data Definer

Data Producer

Data Users

Tactical Data Stewards

Data Steward Coordinator

Data Governance Council

Accounting Board

Data governance Executive Management Data Governance Steering Committee

Interfaces – before DRM Legacy DRM OBUG Antwerpen, 31 March 2009

Interfaces – As is Now IT - Support OBUG Antwerpen, 31 March 2009

Introduction

Conclusions

Lessons Learned (Accounting Hub)

Phased project approach (resources / capacity)

FAH relatively new, there are bugs (performance!)….

Process events… or live with the consequences for reporting…!

Keep accounting rules simple

Interfacing… always 2 parties

Lessons Learned (DRM)

Interfacing.. always 2 parties

POC was on DRM, not on using its data across the organization

Extensive Business effort necessary

Oracle support essential

Next Steps

Issues in R2R-process out of the way

Experience with subledger accounting

Our wish list…

Further integration Accounting Hub - DRM necessary!

Integration Oracle GL’s : cross-version global consolidation functionality

Always process events to create full-fledged FSAH-applications. The benefit being that more uniformity can be created to management information.

How does this help KPN further? OBUG Antwerpen, 31 March 2009 Trustworthy Financial Consolidation One single instance Costs of integration Faster Closing