Our 9.2 Upgrade: How Transformation + Technology = Success

© 2014 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Our 9.2 UpgradeHow Transformation + Technology = Success

Session #13164June 22-25, 2014

Interact 2014Orlando, Florida


SpeakerDonna McKee | Supply Chain LeadJason Moebius | Managing Director

University of Kansas University of Kansas Medical Center University of Oklahoma University of Oklahoma Health Science Center


About Huron Consulting GroupHuron provides services to a wide variety of organizations, including leading academic institutions, healthcare organizations, Fortune 500 companies, medium-sized businesses and law firms.

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Huron Consulting GroupHuron Consulting Group History• Formed in March 2002 by a core group of

experienced financial and operational consultants, including CEO and President Jim Roth.

• 2,237 consultants company wide, and approximately 50% consultants comprise Health & Education Consulting practice.

• We have conducted more than 11,000 engagements for over 4,100 higher education, public sector/government, and commercial clients.

LocationsAtlanta | Boston | Charlotte | Chicago | Dallas | Detroit | Houston | London | Los Angeles | New York | San Francisco | Tokyo | Washington, DC

Our Value Proposition• Focused and integrated - financial and

operational consulting – implementation service provider

• Combination of deep functional and industry expertise

• Independence and objectivity

Working with Huron, institutions can experience dramatic transformation across the entire organization. We partner with institutions to help them become better positioned to achieve strategic and financial goals, compete for scarce resources, and plan for the future.


OverviewOur 9.2 UpgradeTransformation + Technology = Success

As we approached our 9.2 upgrade, our team was tasked with reducing customizations, simplifying the source-to-settle business process for our end-users and creating a paperless engagements process for our suppliers. Our presentation shares the best-in-class perspective that success is equal parts transformation and technology. We’ll also review our lessons learned during the upgrade and how we leveraged new features and functionality to eliminate 25+ customizations & simplified the procure-to-pay process


Agenda/Contents

Getting Started Upgrade Methodology Big Wins Surprises along the way Lessons Learned


Getting Started

Time and Money Funding the project

Get it Done Competing projects on the horizon

Managing Expectations Leadership Central and end-users Materials teams Technology teams


Transformation + TechnologyFinding: Identifying opportunities

Achieving: Executing a sourcing and supplier campaign

Keeping: The right technology + the right business process

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KU/KUMC had the opportunity to achieve significant cost savings through strategic sourcing initiatives in multiple high spend commodity areas and establish its own strategic sourcing program.

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Findings and Opportunities• Significant savings opportunities can be achieved through strategic sourcing for various commodity areas

focusing on high spend vendors

• Develop strategic sourcing program as part of ongoing operations and shift focus to commodity management

Goals• Identify and achieve one-time and recurring cost savings in high spend commodity areas• Identify and incorporate best practices into sourcing initiative and contract establishment• Focus purchasing staff on commodity management and strategic sourcing

Annual Financial OpportunityEstimated FY13 Saving FY13 Saving To Date

$1.3M $3.3M +


Savings Review

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Commodity Area / Timeframe

Estimated Area Size

Identified Opportunity Range

1st Year Achieved Cost

Savings

One Time Savings

Wave I Areas

Scientific Supplies $7,255K $550 -780K $1,135K $600

Office Related Products

$2,670K $800-1,150K $2,340K $2,100K

KU Dell (D/L Only) $2,260K $200-420K $210K – $330K

Wave II Areas

IT Distributors $3,115K $305-585K $32K

MRO $1,750K $120-205K $170K – $200K

KU MFD $1,035K $80-145K $25K – $30K

Total $18,085K $2,055 - 3,285K Total: $3,912K – $4,267K


Methodology

What color is your upgrade? Compliance Crimson Business Process Blue Transformation Teal Technology Tan

Huron SPARK


Big Wins

Assessment set clear expectations WorkCenters Workflow Techies love PeopleTools 8.53


Lessons Learned

Understanding PUM Workflow is as good as your data Matching & Workflow: Less is more


A Quick look at the PUM


PeopleSoft Update Manager PeopleSoft Update Manager (PUM) runs on the PeopleSoft Image database

PeopleSoft Images are Oracle Virtual Box virtual machines that you download locally

There is one PeopleSoft Image per product family (database instance) and they will be released periodically (Every 6 to 8 weeks)

PeopleSoft Image is the master source environment from which you will pull the updated objects, create a custom change package, and apply updates to your environment

PeopleSoft Image for your application is cumulative so you will download the most current PeopleSoft Image and get all of the updates that you need


One image per database instance for 9.2 HCM, ELM, CRM, and FIN/SCM.

Example naming: FSCM 9.2.005 Would be the 5th image delivered for the FSCM 9.2 release.

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PeopleSoft Update Manager


Oracle Virtual Box installation: This is just one time software installation. It takes 2 hrs. to download > install >

configure. Downloading FSCM PeopleSoft Update Manager (PUM) images These Image sizes are typically 20 to 30GB. This download is required only when

Oracle releases an image. For example, Image 4, 5, 6 etc.. It typically takes about 6 -7 hrs. with 100mbps cable internet connection in the office.

Restoring and configuring PUM image on networkThis is where we need a lot of time for setup. This is one time setup per image. Import image appliance into Virtual Box - 2hrs Configure the Network and assign/get mac address - 1hr Set the mac address in the network to get a static IP - 2hrs


Configuring Change Assistant to work with PUM Configure the Change Assistant on one of the windows servers to use

PUM. This is also one time setup per image. - 4hrs

Downloading Patches from PUM source Once the steps 1 - 4 are completed, the PUM is ready to extract the

fixes/patched. Typically, a fix/patch needs to be searched in the image, download

it from Change Assistant, compare with demo database, and then create a change package.

- 6 to 10 hrs.


Oracle Best Practice

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© 2014 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 19

© 2014 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 20


Methodology

A Quick look at SPARK

© 2014 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.22

The Upgrade Dilemma

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To address these common challenges, Huron Consulting Group has developed our “SPARK Solution” for PeopleSoft 9.2 upgrades. Our methodology brings together the right blend of:

Industry specific experience Focus on process improvement and increased efficiencies Transition from heavy customization to maximum usage

of delivered functionality

The decision to upgrade is challenging and complex. Alternatives and justification for staying current are sometimes elusive: What resources are required? How long will it take? What is the business value of the upgrade? What new functionality will benefit the organization? What’s the return on this investment?


What is your biggest opportunity or challenge related to an upgrade project?

A. Business improvements not realizedB. Upgrade impacts planned operations C. System remains costly to maintainD. Address process inefficienciesE. Other


Start Out Right


SPARK SolutionHuron’s “SPARK Solution” for the 9.2 PeopleSoft Release addresses these issues via a structured approach that provides leadership the information they need to understand and make informed decisions.

Specialized consultants in Higher Education & HealthcarePlatinum Partner of OracleApplications Assessment to Jumpstart your upgrade Reduction of time and implementation costsKnowledge transfer to help client achieve self sufficiency

Our SPARK Solution is focused on results for your organization, examples from our clients include:

40% reduction in modifications Implementation of over 50 pieces of new functionality Streamlined processing of high volume area’s such as requisitioning, processing of life

events


SPARKJumpstart

ApplicationAssessment

Technology & ProcessMigration

Transition

Initial Review of

Retrofits & New Features

Technology estimates adjusted based on

decisions made during Fit/Gap and Design

Project Description & Initial Estimates

Project Plans

Detailed Work PlanDevelopment & Management

Incremental & External Resources

Assess ability to support internally.

Factor in knowledge transfer

requirements

Tangible ResultsLeading Research University in the Western US– over 20% reduction in modifications Leading University in the Midwest – 30% reduction in modifications Leading Healthcare Provider in the Northeast– nearly 40% reduction in modifications


Higher Education and Healthcare FocusedJumpstart is a combination of

interviews with key stakeholders and assessment questionnaires.

SPARK

Current state of your applications.

Technology requirements outside of the core upgrade process.

Which customizations are not required as a result of new functionality.

Jumpstart Deliverables Upgrade objectives Resource estimate Preliminary timeline Technology requirements Cost estimates

Business Assessment

Technology Assessment

Customization Assessment


Technology & Process Migration

Application Assessment

SPARK A Rapid Upgrade Approach

Our toolkit and accelerators are designed to help us get from assessment to transition as expeditiously as possible.

Transition

Develop Test

Implement Post Production

Support

Initiate Fit Gap Design


Upgrade AcceleratorsHuron was an integral part of the 9.2 beta testing team. We have leveraged this experience with our industry expertise and upgrade experiences to create project accelerators that will assist us in every phase of the upgrade. Some of these accelerators are our:

Jumpstart Assessment

Please indicate (yes/no) if your company uses or is interested in enabling the selected functionality as part of the upgrade

In Production?(yes/no)

Future Use?(yes/no)

Asset Management yes no

Cash Management yes no

Commitment Control yes no

Contracts yes no

Contracts for Government Accounting yes no

Deal Management yes no

eSettlements yes no

Expenses yes no

Financial Gateway yes no

General Ledger yes no

Grants yes no

IT Asset Management yes no

Maintenance Management yes no

Payables yes no

FMS ESA ALMModules/Functionality

# First Release for Feature

Product Feature Higher Ed Healthcare RecommendConfiguration

RequiredTraining

EffortData

ConversionProcess

Redesign

90 9.0Commitment

ControlIncludes the Journal Class field in the budget flat file for importing Commitment Control budget journals. (This feature was backported from 9.1 to 9.0.)

Yes Limited Yes Yes Yes Yes Yes

91 9.1Commitment

ControlEnter a SpeedType key directly for each budget journal l ine as well as select from a prompt list. Yes Limited Yes Yes Yes Yes Yes

929.1

Commitment Control

Maintain budgets more efficiently by using account ranges when defining account exclusions for budget definitions. You can also copy the entire Budget Definition setup, including the creation of Commitment Control Ledgers, Ledger Groups, and Budget Definitions.


939.1

Commitment Control

The Check Only capability allows you to budget check transactions using what-if scenarios that do not actually commit the funds against any budget. This capability also provides pre-validation of the transaction data against budget definitions.


949.1

Commitment Control

The Value Required selection in the budget definition is optional, as opposed to either selected or deselected. When selecting the Value Required as optional, a blank key ChartField is treated as if a value were present. This feature helps to reduce the budget setup in the area of rule sets.


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9.1

Commitment Control

General Ledger provides real-time budget checking of position data from PeopleSoft HCM. Requisitions for positions are validated against budgetary rules in Financials and recorded as Pre-Encumbrances; position offers are booked as Encumbrances. Position data changes, such as bonuses and salary changes, are validated and booked against the budget as appropriate.


1. Contracts 2. Billing 3. Receivables

Contracts Reconciliation Summary The Reconciliation Summary page will be added to view the results from the Reconciliation Summary process. This page will provide the difference between billing and revenue at the detail level as well as the attributes that are related to retainages, withholdings, limits, and fees. The information provided on this page will enable you to determine where to complete the remaining process, or to make an adjustment. Contracts with rate-based contract lines can be viewed based on revenue recognized and total amount billed to date for the following values: Contract, Contract Line, Project Costing business unit, Project or Project Activity. The revenue data is stored on the CA_ACCTG_LINE_PC table and the billing information is stored on the BI_ACCT_ENTRY table. The reconciliation process looks to these two records based on the criteria defined on the Chartfields selected on the Contracts Reconciliation Definition page. Also, if you do not select break on the chartfields you want to break on they do not appear on the report generated. The Reconcile Revenue and Billing feature does not support prepaid amounts. 1. Configure reconciliation options for each user. Set Up Financials/Supply Chain, Product Related, Contracts, General Options, Reconciliation Options by User

Describe the level of customization you believe to be present in your current implementation (high / medium / low). What were the factors that determined that level of customization? Are you looking to increase, or decrease, this level of customization?

Do you have customization documentation such as design documents, specifications and test scripts?

Is this documentation current?

# of Prod Instances

Total # of Environments (Prod and non Prod)

Data:

Objects:

Control Files:

Data Dictionary:

Security:

Describe your hardware environment. Attach architecture diagram if available.

Technical AssessmentCustomizations

Instances/Environments

Shared Components By Environment:

Hardware Configuration

Industry Specific 9.2 Demo

Scripts

Upgrade Fit Gap Matrix

. Configure reconciliation options for each user. Set Up Financials/Supply Chain, Product Related, Contracts, General Options, Reconciliation Options by User

Quickly define scope and effort plus identify areas of greatest value

Pre-defined targeted functionality to expedite reviews and designs

Supplements Fit Gap and expedited test planning and execution


What is your primary motivation for upgrading?

A. Stay current on maintenanceB. Improve business processesC. Enhancements and New FeaturesD. Reduce CustomizationsE. All of the aboveF. Other


Are you considering an upgrade to 9.2?

A. Within the next 12 monthsB. 12 to 18 monthsC. More than 18 monthsD. Not at all


Tools and Accelerators to Meet Upgrade Goals Toolkit & Accelerators

Current Cost Baseline AnalysisRoadmap & Readiness to Start

Fit Gap Analyzer9.2 Demo Scripts

Pre-configured workbooks (industry specific)

Pre-defined test scripts (industry specific)

Training Aids (specific to 9.2 new features and enhancements)

KT Readiness Assessment

Updated Cost Baseline Analysis


ContactsDonna McKeeDirector | Supply ChainHuron Consulting GroupP [email protected]

Jason MoebiusManaging DirectorHuron Consulting GroupPhone [email protected]


Questions?