HP Software Global ERP Implementation

HP (Case Study): A Global
Implementation of NetSuite
SuiteWorld
Paul Kirch, Principal, NetSuite
Bruce Cavers, Sr. Director, NetSuite
Nigel Blair-Johns, Sr. Program Manager,
Hewlett-Packard

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Please be advised that any unreleased services or features from NetSuite that are not currently available
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© NetSuite Inc. 20153

Cautionary Note
Hewlett Packard will be talking about its own products and/or services, which it makes available
directly to customers. The statements and opinions contained herein are those of HP Software and not
of NetSuite. NetSuite has not verified any statements or claims herein and assumes no responsibility
for such statements or claims.

Paul Kirch
Principal, Software,
Netsuite
Bruce Cavers
Senior Director,
Enterprise, NetSuite
Nigel Blair-Johns
Senior Program
Manager, HP Software
Presenters
Company Logo Company Logo Company Logo

Press Release
“NetSuite has delivered an enterprise-class
solution that’s enabling us to streamline
complex revenue and billing processes and
gain new insights into business performance,”
said Paul Chapman, Chief Information Officer,
HP Software.
“The two-tier ERP implementation with
NetSuite OneWorld is robust and elegant and
provides us with new agility, flexibility and
scalability in our management of the
Software business.”

Agenda
1. Background
2. Project Scope and Methodology
3. Project Organization and Timeline
4. Solution Design
5. Results

Hewlett-Packard
“The HP garage is known as the birthplace of Silicon Valley.”
367 Addison Avenue, Palo Alto, California

• Iconic Company: HP is one of Silicon Valley’s most iconic companies.
- HP was established in a garage in Palo Alto, California in 1939.
• Cloud Software: Over the last 5-10 years, cloud software has emerged
as a viable alternative to traditional on premise software solutions.
- HP has established several cloud based application offerings for its customers
- New selling models challenge legacy back office order management systems
• Innovation: HP is undergoing dramatic change and reorganization.
- HP Software needed to internally integrate the acquired Autonomy business, and planned to
leverage a new internally developed SAP platform. That option became unavailable.
- Needing future flexibility and legacy HP systems not being an option, decision to deploy
NetSuite for legacy Autonomy business
- Key drivers were time to result and ability to give the business tight scope and cost control
- A pilot exercise in a new way of doing business
Introduction

Scope of Project
The view to the top on September 15, 2014.

Scope of Project
• Revenue: Approximately $1 billion revenue in 5 discrete business units.
Purpose of project was to consolidate back end business support systems onto
one platform.
• Geographical Scope: Over 159 licensed users in 8 countries: Canada, France,
India, Mexico, Poland, Switzerland, United Kingdom, and United States.
• Item Master: Over 10,000 SKUs representing HP Software products.
• Customizations: Customizations included the UBB script for Minimum Monthly
Usage (MMU/MMC), discounting, Business Area, Profit Center and Global
Currency customizations, intercompany transactions and draft sales order
(quote) from a contract.
• Process Challenges: Order Capture, customer-facing AR Invoice processes,
revenue recognition, intercompany accounting, and GL interface to existing HP
(SAP Lighthouse) systems.© NetSuite Inc. 201513

Generate energy and measure progress by breaking down into “bite-
sized chunks”, and be relentless …..
Wave Methodology

Project Plan
The project plan was
organized around a
series of “sprints” or
“waves.”
Sprint 1: 9/14 – 10/14
Sprint 2: 10/14 – 11/14
Sprint 3: 11/14 – 12/14
Sprint 4: 1/15 - 2/15
Sprint 5: 2/15 - 3/15

• Strategy was to use a combination of traditional waterfall and agile/scrum in
a series of “waves” or “sprints.”
- PMO office developed a series of “sprints” to define solution development.
• Methodology used defined milestone dates together with rapid design and
implementation techniques.
- Face to face meetings were considered critical to the process to confirm requirements
and design.
• PMO Office focused on measurable, quantifiable metrics.
- Daily e-mails to entire project team, detailing UAT testing progress metrics.
- Test cases defined and blocking bugs identified in extremely methodical approach.
- CR’s (Change Requests) or bugs managed closely to identify owners and push
resolution.
- Measure of tests completed against “trend line” used to keep team focused.
Project Methodology

Overall
Testing progress measured against required progression line
End to End Tests
Discrete Tests
Required Progression Line

Daily e-mail before daily 7:00 a.m. (Pacific) scrum
• Passed
• Failed
• Not run
• Incomplete
• Complete

Daily review of test case progression

Project Organization and
Timeline

Project Organization – HP Software
Nigel Blair-
Jones
Sr. Program Manager, HP
Software
Order
Management
Team
Lead: Ann Hunter
Record to
Report Team
Lead: John Dean
Technical Team
HP IT
Patrick
Rueckert
Program Office

Project Organization – NetSuite (with Accenture)
Bruce Cavers
Sr. Director, NetSuite
Order
Management
Team
Lead: Casey Lucas
Record to
Report Team
Lead: Paul Kirch, Max Elie-
Salomon, Megan Radigan
Technical Team
NetSuite Offshore Team
Manoj Singh
Program Office

Timeline
Total Elapsed Time: 7 months
9/15/14 10/15/14 11/15/14 12/15/14 01/15/15 02/15/15 03/15/15
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6
Finish
Requirements Solution Design Technical Design
and Waterline
Development Testing UAT & Go Live
Start
Mobilization

• Discovery: 7 week joint discovery phase to firm up scope, effort & schedule before
release of full project. Project structured as a two party partnership (NetSuite PS
and HP Software). Discovery commenced in June 2014
• Kickoff: internal launch took place Aug 20, with rapid mobilization of both teams.
Early focus was on developing a clear understanding of HP Software business
requirements
• Requirements: NetSuite led daily on-site requirements gathering meetings Sep15
through Oct15
• Waterline Review: Early Nov. combined HP / NetSuite team met for a “waterline”
F2F meeting to finalize requirements & scope, and agree on the overall solution.
Cleared the path for NetSuite to build out those requirements
• User Acceptance Test: commenced Feb 04 for 6 weeks, including two-week F2F
UAT session one week after start of test window
• Go Live: Project “go live” took place on Mar 16, 7 months after kick-off
Project Timeline

• Major Gaps
- Use of contract, and creation of Sales Order from Contracts.
- Pricing, Discounting, and Exchange Rates (Accounting and Spot Rate Currencies).
- AR Invoice Design, with Japanese and French language requirements.
• Process Requirements
- Sales Order Capture using ASOF (spreadsheet), with Draft Sales Order Creation.
- Revenue Recognition, Credit and Rebill and Cash Application processes.
- Intercompany invoice processing for “intercompany eligible” items through re-biller
entities
• Integration with 3rd Party Software
- Integration to Avatax required for U.S. Sales and Use tax determination and
calculation.
Solution Design

Revenue Recognition Process
Revenue Recognition Process
AccountingSalesCustomer
Invoice/Cash
Sale
Generated
Revenue
Template
Defined?
Customer
Sales Process
No
Schedule
Created
Yes
Review
Revenue
Journal
Revenue
Booked
Schedule
Updated
Adjustment
Required?
Adjust
Invoice/Cash
Sale
Book Journal
Entry
Yes
No
Revenue Journal EntryInvoice/Cash Sale Revenue Schedule Financial Reports
Draft Order
Sales
Order
Fulfillment
Cash
Application
Invoicing

Factory Sales Office
#2 Trigger Sale of Software
from Factory to Sales Office
Reseller/
Distributor
or Customer
Re-biller
Bill From/Ship
From Ship From Ship To#3 Create I/C
AR/AP
(% discount)
#1
Customer
Facing AR
Invoice
# 4 Interco
AR/AP
(% discount)
Intercompany Overview
• Automated sequence of events on generation of customer trade invoice
• All intercompany records generated and stored at transaction level

Subsidiary Definition and Relationships
Local Sales
Office
Regional Hub
Sales Office
Regional Hub
Sales Office
Local Sales
Office
Regional Hub
Sales Office
Local Sales
Office
Local Sales
Office
Local Sales
Office
Regional
Re-Biller
Regional
Re-Biller
Regional
Re-Biller
Factory
• Deployed 20 entities to create trading model
• Intercompany workflow through entities dependent on customer location
• All flows and accounting are “under the covers” to business operations teams processing orders

Overview of Intercompany Invoicing Process
INTERCOMPANY HIGH-LEVEL FLOW - DRAFT
NETSUITE
Datacenter
HPFinance
systems
NOTE: TRADING FLOW GBF0 = > CH19 => CA00 IS USED AS AN EXAMPLE TO EXPLAIN THE FLOW
CONTRACT
Intercomp. Billing
Level A
IC AR
GBF0  CH19
Pricing Transfer
Globaltrade
Screening
Customer
HPCCH19
LH1DAS/TRIM
Intercomp. Billing
Level B IC AP,
And IC AR
CH19 -> GBF0 (IC AP acc)
CH19  CA00 (ICAR acc)
PDF Inv
Output
Company
CH19
Pricing Transfer
Vendor
HPCUS99
Standalone
accounting doc.
Level B IC AP
CH19  CA00
Vendor
HPCCH19
Company
CA00
Customer
HPCA00
CONFIRMATION
MANUAL
Accounting
docs
Entitlement
Fulfillment
process
Trigger
delivery
CUSTOMER
Email
Licensekeys /
SW download
Company
GBF0
Trade Billing to
Customer
Company
CA00
PDF Inv
Output
Confirmation
of service
PDF Inv
Output
Invoice
Archival
Invoice
Archival
ASSUMPTIONS
* IC AP transaction wiil not
have IC Purchase order, this
need to be understood.
*Pricing will betransferred
from onedocument to
another, only sourcing the IC
discounts from one common
database within Netsuite
IC FUNDING
DISCOUNTS
DATABASE

International or Non-U.S. Taxes

Month End NetSuite Task List
Day -2 Day -1 Day +1 Day +2 Day +3
Ensure fulfilled sales
orders have correct
status
Ensure customer payments are applied
against correct AR invoices
Calculate
Consolidated
Exchange Rates
Generate SAP LH
Extract and Load to
SAP
Invoice Fulfilled Orders
(AutoInvoice is on)
Create Revenue
Rec Journal
Entries
Load Exchange
Rates
Eliminate Interco
Transactions
(required)
Run Reports
Reconcile orders fulfilled
to orders invoiced, if
necessary
Ensure that I/C
AR and AP
accounts balance
by subsidiary
Create JV’s
including Accrual
JV’s and any
Adjusting JV’s
Book Revaluation
Journals, Adjustments
using Saved Search
Reconcile NS
balances with SAP
Lighthouse
balances
Ensure that all AR invoices have been sent
(e-mail or physical) to customers. (By
subsidiary, with 11:59 p.m. local time cutoff
on Day -1).
Review Actuals and
Finalize Revenue
Book Realized
Gain/Loss Journals in
GC (USD)
SAP/Lighthouse
Run sales trending and
other required reports
Lock NetSuite AR
Period
Finalize Revenue Lock NetSuite
Accounting Period

• “Follow the Sun” month end close schedule
• Country AR is locked at 11:59 PM local time
• Regional close starts with APJ
• Financial close activities follow the same regional
sequence
Proposed Month End Schedule

Integration to SAP (Hybrid Cloud)
NetSuite
SAP (LH)
Requirements:
• Replicate SAP accounting
requirements. Each transaction
required to have Company Code,
Business Area, Profit Center, and
Natural Account.
• Provide the Transactional Currency
(TC), Local Currency (LC), and
Global Currency (GC) values on
each transaction.
• Accommodate (not replicate!) SAP
LH treatment of Unrealized
Gain/Loss on Revaluation and
Realized Gain/Loss on Transactions
Main
Rev Rec
Realized Gain/ Loss

Main Saved Search Extract Definition
Criteria Results
Integration strategy was to use a saved search in NetSuite to extract
information for load to SAP using the existing HP GL interface procedure.

• Project Go Live
- ABoC successfully went live over the weekend of March 13-15, 2015,
- During the week of March 16-20, team converted principal conversion objects, including:
- Customers
- AR Invoices
- Existing Open Orders
- Revenue Recognition Journals / deferred revenue schedules
• First month end close took place March 31, 2015
- Achieved to schedule
• First quarter close
- Closing as we speak
Results

“I’ve just discovered fire and can now venture out …”
“I’m inspired and feel as though I’ve just discovered fire and can now
venture out of the dark ages.” – HP Analyst

The Team …
Also, Sakshi, Gerrom, and Megan and everyone else
who worked so hard on this project.

The Stories…
• Needed to deploy quickly with minimum CapEx and resources.
• Chose NetSuite for 124 subsidiaries around the world.
• Created repeatable implementation and rollout templates.
• Failed attempt to standardize on Oracle – too costly, too long.
• Reduced ongoing IT costs by 70% while gaining multi-currency
consolidation and increased organizational flexibility.
• 50-80% faster implementation.
• Aligned processes and gained control of 3,000+ projects in 15+ countries.
• Dramatically increased utilization and consultant-project fit.
• Gained enterprise visibility for forecasting.

• 2400+ employees
• $414.5M revenue in FY13
• $123M revenue in Q1 FY14
• Used by 20,000+ organizations
• Fastest growing top 10 FMS WW
• Used across 100+ countries
The Undisputed Cloud ERP Leader

The Undisputed Cloud ERP Leader
NetSuite is the most successful ERP suite
SaaS provider operating in terms of active
customers, international presence and
functionality offered across the product.
Event Note: Observations and Analysis From NetSuite's Global Customer Conference
Analyst(s): Chris Pang, Robert P. Anderson, Christian Hestermann, June 2011

SuiteWorld 2016 // May 16–19
see you next year.

HP Software Global ERP Implementation

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