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Helene Abrams
eprentise
habrams@eprentise.com
Avoid the Tower of Babel by Structuring
Oracle E-Business Suite to Remove Silos
Webinar Mechanics
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 Q&A addressed at the end of the session.
Answers will be posted within two weeks on our
new LinkedIn Group, EBS Answers:
http://www.linkedin.com/groups/EBS-Answers-
4683349/about
 Everyone will receive an email within 24 hours
with a link to view a recorded version of today’s
session.
 Polling questions will be presented during the
session. If you want CPE credit for this webinar,
you must answer all of the polling questions.
Learning Objectives
Objective 1: Learn the root causes of silos in Oracle E-Business
Suite (EBS) implementations.
Objective 2: Understand how silos impair financial operations and
create barriers to growth and innovation.
Objective 3: Explore how a convoluted EBS structure results in silos
of data that constrict performance and limit agility.
Objective 4: Learn techniques to enable different areas of the
organization to work together and eliminate silos of data.
Objective 5: See how an enterprise data quality initiative will
facilitate breaking down silos.
Agenda
Introduction
The Tower of Babel in Oracle® E-Business Suite: Silos
Root Causes of Silos
Challenges and Impact of Silos
Roadmap to Eliminating Silos
Benefits of Eliminating Silos
eprentise Can… …So Our Customers Can:
Consolidate Multiple EBS Instances
Change Underlying Structures and
Configurations
 Chart of Accounts, Other Flexfields
 Inventory Organizations
 Operating Groups, Legal Entities,
Ledgers
 Calendars
 Costing Methods
Resolve Duplicates, Change Sequences,
IDs
Separate Data
Introduction: Finished but not Done
: Transformation Software for E-Business Suite
Reduce Operating Costs and Increase
Efficiencies
 Shared Services
 Data Centers
Adapt to Change
 Align with New Business Initiatives
 Mergers, Acquisitions, Divestitures
 Pattern-Based Strategies
• Make ERP an Adaptive
Technology
Avoid a Reimplementation
Reduce Complexity and Control Risk
Improve Business Continuity, Service
Quality and Compliance
Establish Data Quality Standards and a
Single Source of Truth
Company Overview: Established 2006 l Helene Abrams, CEO
The Tower of Babel
In the story of the Tower of Babel, people’s inability to
communicate – they were all speaking different languages -
resulted in them being unable to finish constructing the tower.
The result: Project failure… all because of silos.
Objective 1: Learn the root causes of
silos in Oracle E-Business Suite (EBS)
implementations.
What are Silos?
Silo’s are information locked
in disparate databases,
separate ledgers (SOBs),
different operating units etc.
They are the barriers to
doing business efficiently
and effectively that are
overcome everyday through
workarounds or forgone
opportunities.
Root Causes of Silos in EBS
Existing silos in EBS originated in several ways.
Most of these were due to a lack of:
 Available technology at the time of implementation.
 An understanding of how a global business should operate,
 Knowledge of EBS configurations, hierarchies, ownership, and security.
 A solution for quick integration of acquired systems (M&A activity).
 Interdepartmental communication and collaboration.
 Standardization:
 Process level: corporate standards, governance, and controls
 Data level: data formats, naming conventions
Different divisions within a company were allowed to setup their own operating
units to meet their requirements eventually leading to fragmented integration,
more complexity and isolation.
Company grew by acquisition adding new EBS instances with each acquired
company.
Original configuration didn’t support the current business – original setup
including history abandoned for a new setup with no way to communicate
between structures.
Different departments tackled requirements or problems on their own rather
than working together to find a solution that fits everyone.
Corporate standards, governance, and controls were not in place – changes
done “on-the-fly”.
Root Causes of Silos in EBS
Globally
Each country with their own Finance, HR, Billing
Systems
Hundreds of FTEs identified as performing
reporting activities in Finance
Many staff in multiple
locations
Many disparate processes,
procedures
Made very little sense for 10% of the revenue to be
burdened by the cost structure of an entire EBS instance
and support.
Regional production instances were an
obstacle to business improvements and
new initiatives
Multiple general ledgers, employee
records, and system interfaces
Silos make it impossible to have common
definitions, standard business processes,
and share information.
Challenges for Global Businesses
Silos in Your Business
Many organizations face significant challenges in
communication between disparate parts of the
business.
Multiple instances, different charts of accounts, and a
lack of governance and control result in silos of
information and multiple sources of “truth.”
Eliminate the silos to share data effectively, reduce
costs and risks and communicate across the
organization.
Objective 2: Understand how silos
impair financial operations and create
barriers to growth and innovation.
Silo
Impact
Statutory and
Regulatory
(SEC)
Requirements
HR
Management
(i.e.
Transferring
Employees)
Tax
Reporting
Compliance
Customer
Relations
Supply Chain
Management
(Vendor
Relations)
Workflows
Separate
Instances
Separate
Business
Groups
Separate
Sets of
Books
Separate
Operating
Units
Separate
Inv. Orgs.
Multiple
COAs and
Calendars
Examples of Silos By EBS Structure
When EBS
Silos are
Present,
Costly
Workarounds
Must be
Developed
Silos Impact Timely & Accurate Business
Decisions
Trusted, uniform, and timely information is inaccessible to business
users.
Inaccurate forecasts, contradictory information, and the inability to
address compliance requirements result in increased costs and
unnecessary risks.
“Very few organizations have a real handle on the relationship
between a business process…and the underlying I.T. system that
powers [it]…And worse yet, if they did…they would probably
discover that they have four sets of different systems handling
overlapping business processes.” - Michael Vizard says in Solving
I.T.’s Biggest Challenge.
Objective 3: Explore how a convoluted
EBS structure results in silos of data that
constrict performance and limit agility.
Example of Silos
Instance A B C D Distinct
Release 11.5.10.2 11.5.10 11.5.10.2 11.5.9 -
Size (GB) 1,425 548 61 96 -
Languages 4 2 1 1 4
Sets of Books 104 48 1 30 183
Calendars 10 7 1 1 19
Charts of Accounts 40 43 1 18 102
Legal Entities 120 48 0 47 215
Operating Units 121 49 0 47 217
Inv Orgs 137 50 1 48 236
Modules Installed 9 17 4 5 21
Security Rules on Value Set 13,012 300 15 153 13,480
Security Rules X Responsibilities 17,350 445 6 75 17,876
Cross Validation Rules 86,845 39,925 25 165 126,960
Currencies 56 28 1 28 64
EBS Users 43,986 30,494 247 3,023 N/A
Sets of Books, Legal Entities, OUs, and Inventory Orgs
Redundant and configured differently
Charts of Accounts and Calendars
Disparate and misaligned
Sets of Books – Difficult to comply with local and statutory regulatory requirements
Legal Entities – Easy to over- or under-pay taxes and misstate financial information
Operating Units – Difficult to leverage supplier relationships (terms, discounts, etc.)
Inventory Orgs – Impossible to know if a product is actually in stock (or where it is on the shelf)
Charts of Accounts – Reports and data extracts must be done 40 times
Calendars – With 10 calendars, the company is depreciating assets in 10 different ways and closing periods
at different times
Redundant Objects
Redundant Objects
Silos Constrict Performance and Agility
There is no single
source of truth
for enterprise
information.
Leads to a lack
of trust
in the data,
resulting in:
Objective 4: Learn techniques to
enable different areas of the
organization to work together and
eliminate silos of data.
Steps for Eliminating Silos
1. Identify the information that exists.
2. Determine what information needs to be shared.
3. Determine what information needs to be maintained
separately.
4. Identify common business processes.
5. Must be championed from the top.
Roadmap to a Global Business – 3
Imperatives to Remove Silos
All of the data
must be
consolidated into a
single instance.
There must be a
single Chart of
Accounts that
meets all of the
legal and
reporting
requirements of
the business.
All of the data and
business processes
must be complete,
consistent, correct,
and accessible to
those who need it.
Consolidation of Redundant Objects
Disparate objects in each
instance should be
consolidated into other
objects.
Eliminates redundancy.
Enables the company to
conduct operations
consistently.
Facilitates streamlined
compliance with local
statutory and regulatory
requirements.
Instance COAs Calendars SOBs LEs OUs
Inv
Orgs
A 40 9 46 65 66 83
B 43 6 12 13 14 15
C 1 0 0 0 0 0
D 18 0 6 24 24 25
Total 102 15 64 102 104 123
Reduction in infrastructure costs
(hardware, maintenance, licenses)
Reduction in personnel to
support multiple systems
Provision of better customer service
and the ability to operate globally
Agility to grow and to
embrace new initiatives
Global Reporting/
Analytics
Facilitate efficient and effective decision
making with timely and reliable fact based
information
Access real-time information at
consolidated level
Create Centralized Shared Services
(maintenance, setup, centralized
processing)
Eliminate duplicate
integrations and interfaces
Lower license and support fees
Operation of a single business with consistent data,
streamlined processing and the ability to leverage
markets, suppliers of other parts of the business
Consistent Business Processes
Reduce testing during
patches and upgrades
Reducing Costs: Multiple Instances into a Single
Global Instance
A Single COA
Reduces
Complexity
Taiwan
Malaysia
China
India
UK
Russia
DolEx US
DloEx Mexico
DolEx Guatemala
Eurofil
Muzo
Hong Kong
Maldives
Singapore
Sri Lanka
Philippines
Brunei
US
Canada
Macau
USD
EUR
GBP
AUD
PHP
USD
BND
TWD
USD
MYR
CNY
USD
INR
USD
GBP
EUR
USD
SGD
CAD
AUD
HKD
CHF
DKK
JPY
MOP
HKD
USD
SGD
USD
LKR
NOK
NZD
SEK
RUB
USD
MXN
USD
CAD
USD
GTQ
EUR
CZK
AsiaPac LKR
AsiaPac AUD
AsiaPac EUR
AsiaPac GBP
AsiaPac BND
AsiaPac PHP
AsiaPac MYR
AsiaPac INR
AsiaPac TWD
AsiaPac CNY
Europe GBP
Europe EUR
Europe USD
Europe SGD
Europe CAD
Europe AUD
Europe HKD
Europe CHF
Europe DKK
Europe JPY
Europe NOK
Europe NZD
Europe SEK
GPN RUS
AsiaPac MOP
AsiaPac HKD
AsiaPac SGD
DOLEX US
DOLEX MX
DOLEX GT
GPN EUR
GPN MZO
NAm USD
AsiaPac USD
NAm CAD
021
023
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
Hong Kong
Singapore
Taiwan
China
India
Sri Lanka
Sri Lanka
Sri Lanka
Sri Lanka
Brunei
Philippines
Malaysia
India
Taiwan
China
UK
UK
UK
UK
UK
UK
UK
UK
UK
Canada
Sri Lanka
Maldives
Singapore
Philippines
Macau
UK
UK
UK
UK
US
Canada
Comerica
GPS LKR
GPS AUD
GPS EUR
GPS GBP
GPS BND
GPS MYR
GPS INR
GPS TWD
GPS CNY
GPS CHF
GPS DKK
GPS JPY
GPS NOK
GPS NZD
GPS SEK
GPS MOP
GPS HKD
GPS SGD
GPS US
GPS CAD
021
023
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
021
023
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg
GPS
US
201
301
401
Bk Seg
GPN SRL
GPN BRU
GPN PHI
GPN MLS
GPN IND
GPN TWN
GPN CHN
UK SOB
GPN MAC
GPN HK
GPN SNG
US SOB
CAN SOB
525
575
585
505
570
804
802
803
801
915
565
545
851
205
021
023
911
912
913
025
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
GPN Book BalSegBalSeg
201
301
401
US
SOB
205
565
570
801
802
803
525
575
585
505
804
915
545
851
DLX
RUS
EUR
MZO
Seg Bk
• Streamline the month-
and year-end closing
processes.
• No more messy financial
consolidations using
spreadsheets.
• R12 eliminates the need
for using and
maintaining multiple
charts of accounts.
Benefits of Adopting a Single, Global
COA
Restructures transactions to accurately reflect changes in the
business.
Improves accuracy and speed of reporting.
Numerous routine tasks that would have taken up to a
month can be reduced to days and in many cases be
automated.
Within a single instance, a global COA reduces the time
spent compiling, reconciling, and consolidating financial data
from disparate systems and spreadsheets and reduces the
close time between the different modules and GL.
Case Study: Global Supply Chain
Management
A $22 billion global manufacturing
company’s supply chain was split between
three instances, fifty-seven sets of books (w/
20 COAs),sixty-six legal entities, sixty-three
operating units, and one hundred seventy-
two inventory orgs.
Case Study: Global Supply Chain Management
Case Study: Global Supply Chain Management
Case Study: Global Supply Chain
Management- Strategy to Overcome Silos
Consolidate three instances into two; reorganize legal
entities, op. units, and inv. orgs. by business process; and
establish consistent charts of accounts to leverage global
visibility:
 Go-to-Market Instance
 Global Supply Chain Instance
Objective 5: See how an enterprise
data quality initiative will facilitate
breaking down silos.
1. Begin with a plan
 Consolidate instances by business process into either a Go to Market
Instance, or a Global Supply Chain Instance.
2. Define the scope and articulate the expected business results.
 Isolate key data Silos and quantify the value lost through their continued
existence.
 Identify redundant business processes to be collapsed into one another.
 Define global quality standards and uniform conventions.
Breaking Down Silos
3. Execute, Implement, and Manage.
 Nominate and stand behind a benevolent dictator.
 Establish consensus.
 Align Instances, Calendars, COA, Operating Units, Inventory orgs, etc. to
facilitate the flow of key data necessary to accelerate business processes.
4. Measure the Results.
 Ensure accurate data is quickly and easily accessible to requisite parties
with enough time to capitalize on its value.
Breaking Down Silos
Benefits of Eliminating Silos
By taking these steps to eliminate silos within Oracle E-Business
Suite, companies are able to:
Save money.
Improve processes.
Add value to existing operations.
Create an environment of complete, consistent, and correct information.
Many organizations face challenges to communicate between disparate parts of
the business due to silos
Silos create the problem of knowing whose version of the “truth” is correct.
Lack of confidence in the quality of the data impacts operations and financial
performance, increases resource, legal and audit costs and increases risks
associated with regulatory compliance.
Bridging the silos starts with a shared data quality initiative.
Consolidate systems and structures that provide similar businesses processes
(multiple instances, charts of accounts, and calendars for example) and resolve
duplicate and incomplete data to eliminate multiple sources of “truth”.
Eliminating the silos will enable companies to share data effectively and
communicate across the organization.
Conclusions
Questions?
Thank You!
- One World, One System, A Single Source of Truth -
Helene Abrams
CEO
www.eprentise.com
habrams@eprentise.com
Answers from this session will be posted within two weeks on our new LinkedIn
Group, EBS Answers: http://www.linkedin.com/groups/EBS-Answers-4683349/about

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Avoid the Tower of Babel by Structuring Oracle E-Business Suite to Remove Silos

  • 1. Helene Abrams eprentise habrams@eprentise.com Avoid the Tower of Babel by Structuring Oracle E-Business Suite to Remove Silos
  • 2. Webinar Mechanics  Open and close your panel.  View, select, and test your audio.  Submit text questions.  Raise your hand.  Q&A addressed at the end of the session. Answers will be posted within two weeks on our new LinkedIn Group, EBS Answers: http://www.linkedin.com/groups/EBS-Answers- 4683349/about  Everyone will receive an email within 24 hours with a link to view a recorded version of today’s session.  Polling questions will be presented during the session. If you want CPE credit for this webinar, you must answer all of the polling questions.
  • 3. Learning Objectives Objective 1: Learn the root causes of silos in Oracle E-Business Suite (EBS) implementations. Objective 2: Understand how silos impair financial operations and create barriers to growth and innovation. Objective 3: Explore how a convoluted EBS structure results in silos of data that constrict performance and limit agility. Objective 4: Learn techniques to enable different areas of the organization to work together and eliminate silos of data. Objective 5: See how an enterprise data quality initiative will facilitate breaking down silos.
  • 4. Agenda Introduction The Tower of Babel in Oracle® E-Business Suite: Silos Root Causes of Silos Challenges and Impact of Silos Roadmap to Eliminating Silos Benefits of Eliminating Silos
  • 5. eprentise Can… …So Our Customers Can: Consolidate Multiple EBS Instances Change Underlying Structures and Configurations  Chart of Accounts, Other Flexfields  Inventory Organizations  Operating Groups, Legal Entities, Ledgers  Calendars  Costing Methods Resolve Duplicates, Change Sequences, IDs Separate Data Introduction: Finished but not Done : Transformation Software for E-Business Suite Reduce Operating Costs and Increase Efficiencies  Shared Services  Data Centers Adapt to Change  Align with New Business Initiatives  Mergers, Acquisitions, Divestitures  Pattern-Based Strategies • Make ERP an Adaptive Technology Avoid a Reimplementation Reduce Complexity and Control Risk Improve Business Continuity, Service Quality and Compliance Establish Data Quality Standards and a Single Source of Truth Company Overview: Established 2006 l Helene Abrams, CEO
  • 6. The Tower of Babel In the story of the Tower of Babel, people’s inability to communicate – they were all speaking different languages - resulted in them being unable to finish constructing the tower. The result: Project failure… all because of silos.
  • 7. Objective 1: Learn the root causes of silos in Oracle E-Business Suite (EBS) implementations.
  • 8. What are Silos? Silo’s are information locked in disparate databases, separate ledgers (SOBs), different operating units etc. They are the barriers to doing business efficiently and effectively that are overcome everyday through workarounds or forgone opportunities.
  • 9. Root Causes of Silos in EBS Existing silos in EBS originated in several ways. Most of these were due to a lack of:  Available technology at the time of implementation.  An understanding of how a global business should operate,  Knowledge of EBS configurations, hierarchies, ownership, and security.  A solution for quick integration of acquired systems (M&A activity).  Interdepartmental communication and collaboration.  Standardization:  Process level: corporate standards, governance, and controls  Data level: data formats, naming conventions
  • 10. Different divisions within a company were allowed to setup their own operating units to meet their requirements eventually leading to fragmented integration, more complexity and isolation. Company grew by acquisition adding new EBS instances with each acquired company. Original configuration didn’t support the current business – original setup including history abandoned for a new setup with no way to communicate between structures. Different departments tackled requirements or problems on their own rather than working together to find a solution that fits everyone. Corporate standards, governance, and controls were not in place – changes done “on-the-fly”. Root Causes of Silos in EBS
  • 11. Globally Each country with their own Finance, HR, Billing Systems Hundreds of FTEs identified as performing reporting activities in Finance Many staff in multiple locations Many disparate processes, procedures Made very little sense for 10% of the revenue to be burdened by the cost structure of an entire EBS instance and support. Regional production instances were an obstacle to business improvements and new initiatives Multiple general ledgers, employee records, and system interfaces Silos make it impossible to have common definitions, standard business processes, and share information. Challenges for Global Businesses
  • 12. Silos in Your Business Many organizations face significant challenges in communication between disparate parts of the business. Multiple instances, different charts of accounts, and a lack of governance and control result in silos of information and multiple sources of “truth.” Eliminate the silos to share data effectively, reduce costs and risks and communicate across the organization.
  • 13. Objective 2: Understand how silos impair financial operations and create barriers to growth and innovation.
  • 16. Silos Impact Timely & Accurate Business Decisions Trusted, uniform, and timely information is inaccessible to business users. Inaccurate forecasts, contradictory information, and the inability to address compliance requirements result in increased costs and unnecessary risks. “Very few organizations have a real handle on the relationship between a business process…and the underlying I.T. system that powers [it]…And worse yet, if they did…they would probably discover that they have four sets of different systems handling overlapping business processes.” - Michael Vizard says in Solving I.T.’s Biggest Challenge.
  • 17. Objective 3: Explore how a convoluted EBS structure results in silos of data that constrict performance and limit agility.
  • 18. Example of Silos Instance A B C D Distinct Release 11.5.10.2 11.5.10 11.5.10.2 11.5.9 - Size (GB) 1,425 548 61 96 - Languages 4 2 1 1 4 Sets of Books 104 48 1 30 183 Calendars 10 7 1 1 19 Charts of Accounts 40 43 1 18 102 Legal Entities 120 48 0 47 215 Operating Units 121 49 0 47 217 Inv Orgs 137 50 1 48 236 Modules Installed 9 17 4 5 21 Security Rules on Value Set 13,012 300 15 153 13,480 Security Rules X Responsibilities 17,350 445 6 75 17,876 Cross Validation Rules 86,845 39,925 25 165 126,960 Currencies 56 28 1 28 64 EBS Users 43,986 30,494 247 3,023 N/A Sets of Books, Legal Entities, OUs, and Inventory Orgs Redundant and configured differently Charts of Accounts and Calendars Disparate and misaligned Sets of Books – Difficult to comply with local and statutory regulatory requirements Legal Entities – Easy to over- or under-pay taxes and misstate financial information Operating Units – Difficult to leverage supplier relationships (terms, discounts, etc.) Inventory Orgs – Impossible to know if a product is actually in stock (or where it is on the shelf) Charts of Accounts – Reports and data extracts must be done 40 times Calendars – With 10 calendars, the company is depreciating assets in 10 different ways and closing periods at different times Redundant Objects Redundant Objects
  • 19. Silos Constrict Performance and Agility There is no single source of truth for enterprise information. Leads to a lack of trust in the data, resulting in:
  • 20. Objective 4: Learn techniques to enable different areas of the organization to work together and eliminate silos of data.
  • 21. Steps for Eliminating Silos 1. Identify the information that exists. 2. Determine what information needs to be shared. 3. Determine what information needs to be maintained separately. 4. Identify common business processes. 5. Must be championed from the top.
  • 22. Roadmap to a Global Business – 3 Imperatives to Remove Silos All of the data must be consolidated into a single instance. There must be a single Chart of Accounts that meets all of the legal and reporting requirements of the business. All of the data and business processes must be complete, consistent, correct, and accessible to those who need it.
  • 23. Consolidation of Redundant Objects Disparate objects in each instance should be consolidated into other objects. Eliminates redundancy. Enables the company to conduct operations consistently. Facilitates streamlined compliance with local statutory and regulatory requirements. Instance COAs Calendars SOBs LEs OUs Inv Orgs A 40 9 46 65 66 83 B 43 6 12 13 14 15 C 1 0 0 0 0 0 D 18 0 6 24 24 25 Total 102 15 64 102 104 123
  • 24. Reduction in infrastructure costs (hardware, maintenance, licenses) Reduction in personnel to support multiple systems Provision of better customer service and the ability to operate globally Agility to grow and to embrace new initiatives Global Reporting/ Analytics Facilitate efficient and effective decision making with timely and reliable fact based information Access real-time information at consolidated level Create Centralized Shared Services (maintenance, setup, centralized processing) Eliminate duplicate integrations and interfaces Lower license and support fees Operation of a single business with consistent data, streamlined processing and the ability to leverage markets, suppliers of other parts of the business Consistent Business Processes Reduce testing during patches and upgrades Reducing Costs: Multiple Instances into a Single Global Instance
  • 25. A Single COA Reduces Complexity Taiwan Malaysia China India UK Russia DolEx US DloEx Mexico DolEx Guatemala Eurofil Muzo Hong Kong Maldives Singapore Sri Lanka Philippines Brunei US Canada Macau USD EUR GBP AUD PHP USD BND TWD USD MYR CNY USD INR USD GBP EUR USD SGD CAD AUD HKD CHF DKK JPY MOP HKD USD SGD USD LKR NOK NZD SEK RUB USD MXN USD CAD USD GTQ EUR CZK AsiaPac LKR AsiaPac AUD AsiaPac EUR AsiaPac GBP AsiaPac BND AsiaPac PHP AsiaPac MYR AsiaPac INR AsiaPac TWD AsiaPac CNY Europe GBP Europe EUR Europe USD Europe SGD Europe CAD Europe AUD Europe HKD Europe CHF Europe DKK Europe JPY Europe NOK Europe NZD Europe SEK GPN RUS AsiaPac MOP AsiaPac HKD AsiaPac SGD DOLEX US DOLEX MX DOLEX GT GPN EUR GPN MZO NAm USD AsiaPac USD NAm CAD 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 Hong Kong Singapore Taiwan China India Sri Lanka Sri Lanka Sri Lanka Sri Lanka Brunei Philippines Malaysia India Taiwan China UK UK UK UK UK UK UK UK UK Canada Sri Lanka Maldives Singapore Philippines Macau UK UK UK UK US Canada Comerica GPS LKR GPS AUD GPS EUR GPS GBP GPS BND GPS MYR GPS INR GPS TWD GPS CNY GPS CHF GPS DKK GPS JPY GPS NOK GPS NZD GPS SEK GPS MOP GPS HKD GPS SGD GPS US GPS CAD 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg GPS US 201 301 401 Bk Seg GPN SRL GPN BRU GPN PHI GPN MLS GPN IND GPN TWN GPN CHN UK SOB GPN MAC GPN HK GPN SNG US SOB CAN SOB 525 575 585 505 570 804 802 803 801 915 565 545 851 205 021 023 911 912 913 025 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 GPN Book BalSegBalSeg 201 301 401 US SOB 205 565 570 801 802 803 525 575 585 505 804 915 545 851 DLX RUS EUR MZO Seg Bk • Streamline the month- and year-end closing processes. • No more messy financial consolidations using spreadsheets. • R12 eliminates the need for using and maintaining multiple charts of accounts.
  • 26. Benefits of Adopting a Single, Global COA Restructures transactions to accurately reflect changes in the business. Improves accuracy and speed of reporting. Numerous routine tasks that would have taken up to a month can be reduced to days and in many cases be automated. Within a single instance, a global COA reduces the time spent compiling, reconciling, and consolidating financial data from disparate systems and spreadsheets and reduces the close time between the different modules and GL.
  • 27. Case Study: Global Supply Chain Management A $22 billion global manufacturing company’s supply chain was split between three instances, fifty-seven sets of books (w/ 20 COAs),sixty-six legal entities, sixty-three operating units, and one hundred seventy- two inventory orgs.
  • 28. Case Study: Global Supply Chain Management
  • 29. Case Study: Global Supply Chain Management
  • 30. Case Study: Global Supply Chain Management- Strategy to Overcome Silos Consolidate three instances into two; reorganize legal entities, op. units, and inv. orgs. by business process; and establish consistent charts of accounts to leverage global visibility:  Go-to-Market Instance  Global Supply Chain Instance
  • 31. Objective 5: See how an enterprise data quality initiative will facilitate breaking down silos.
  • 32. 1. Begin with a plan  Consolidate instances by business process into either a Go to Market Instance, or a Global Supply Chain Instance. 2. Define the scope and articulate the expected business results.  Isolate key data Silos and quantify the value lost through their continued existence.  Identify redundant business processes to be collapsed into one another.  Define global quality standards and uniform conventions. Breaking Down Silos
  • 33. 3. Execute, Implement, and Manage.  Nominate and stand behind a benevolent dictator.  Establish consensus.  Align Instances, Calendars, COA, Operating Units, Inventory orgs, etc. to facilitate the flow of key data necessary to accelerate business processes. 4. Measure the Results.  Ensure accurate data is quickly and easily accessible to requisite parties with enough time to capitalize on its value. Breaking Down Silos
  • 34. Benefits of Eliminating Silos By taking these steps to eliminate silos within Oracle E-Business Suite, companies are able to: Save money. Improve processes. Add value to existing operations. Create an environment of complete, consistent, and correct information.
  • 35. Many organizations face challenges to communicate between disparate parts of the business due to silos Silos create the problem of knowing whose version of the “truth” is correct. Lack of confidence in the quality of the data impacts operations and financial performance, increases resource, legal and audit costs and increases risks associated with regulatory compliance. Bridging the silos starts with a shared data quality initiative. Consolidate systems and structures that provide similar businesses processes (multiple instances, charts of accounts, and calendars for example) and resolve duplicate and incomplete data to eliminate multiple sources of “truth”. Eliminating the silos will enable companies to share data effectively and communicate across the organization. Conclusions
  • 37. Thank You! - One World, One System, A Single Source of Truth - Helene Abrams CEO www.eprentise.com habrams@eprentise.com Answers from this session will be posted within two weeks on our new LinkedIn Group, EBS Answers: http://www.linkedin.com/groups/EBS-Answers-4683349/about

Editor's Notes

  1. Thank you for joining today’s presentation entitledAvoid the Tower of Babel by Structuring Oracle E-Business Suite to Remove Silos.I’m Julissa Gonzalez with eprentise marketing and communications.Before we get started, I want to review a few housekeeping items and let you know how you can participate in today’s web event. We’re looking at an example of the GoToWebinar Attendee Interface, which is made up of two parts. There is a Control Panel at the right. Within that Control Panel is how you can participate in today’s event, so let’s look at that.By clicking the orange arrow, you can open and close your Control Panel.The View Menu is also where you can choose to keep you Control Panel open – or in other words not to auto-hide when inactive.The Audio pane provides audio information. By default you have joined the Webinar via Mic & Speakers. Click Audio Setup to select your computer speaker or headset devices.If you prefer, you can join the audio via telephone by selecting Use Telephone, and the dial-in information will be displayed, including an Audio PIN.During the presentation, you have the ability to send questions to our Webinar staff through the Questions pane. Simply type in your question and click send. At the end of the presentation we will do a Q&A session to answer as many questions as we have time for. We will also post all of the questions and answers on our new LinkedIn group, EBS Answers, within 2 weeks. We invite you to join this interactive group to see the Q&A, ask follow up questions or even provide your own answers, comments or discussions. The link to that group page was in your webinar invitation email and will also be included in your follow up email. We will be presenting polling questions during the session. If you would like to receive CPE credit for today’s webinar, you must respond to all the polling questions. The CPE certificate will be emailed to you within 2 weeks.As a final reminder, today’s Webinar is being recorded, and everyone will receive an email with a link to view a recording of today’s event.
  2. In the story of Babel, an immense project had been undertaken- to build a tower to the sky. In this allegory, as punishment for pride, the people’s speak was confounded by many different languages. As a result the project failed because the people couldn’t communicate. Like the Tower of Babel, an organization’s major projects may fail for a similar reason- the team may not be able to access the information they need— there are multiple communication issues that result in project problems, delays, or at worst, outright failure.
  3. Large enterprises face significant challenges getting disparate parts of the business to work together. Inaccurate forecasts, contradictory information, and the inability to address compliance requirements result in increased costs and risks. Multiple instances, different charts of accounts, and a lack of governance and control result in silos of information known to few—but not available to all—and multiple sources of truth, causing decisions to be made and corporate actions to be taken based on misinformation. This article examines how silos impair financial operations, how they create barriers to growth and innovation, and what you can do to remove them.Oracle does not have any cross-instance functionality, so by its very nature, multiple instances provide a barrier to communication, sharing of data, and common processes or standards.Similarly, even though operating units are now “visible” with MOAC functionality, and you are able to transact across operating units, the governance to enforce standard is not built into the functionality. An operating unit can have different discount policies, different credit limits, different pricing books, etc. than another operating unit, even within the same set of books. Today we will be giving some real examples of silos in EBS and show how they are costing the organization money.
  4. Silos can take many forms in an organization, but specific to EBS, many silos can be created by the way an organization has structured their instance.Separate InstancesOracle does not have any cross-instance functionality, so by its very nature, multiple instances provide a barrier to communication, sharing of data, and common processes or standards.Similarly, even though operating units are now “visible” with MOAC functionality, and you are able to transact across operating units, the governance to enforce standard is not built into the functionality. An operating unit can have different discount policies, different credit limits, different pricing books, etc. than another operating unit, even within the same set of books. One of the more common ways that silos are created in EBS is separate instances. In the near past, when connectivity was a challenge, many organizations chose to implement separate instance for different parts of the organization. With connectivity issues largely a thing of the past, the functional reasons for maintaining separate instances is gone. Unfortunately many organization are left with their legacy structure of multiple instances. Oracle does not have any cross-instance functionality, so by its very nature, multiple instances provide a barrier to communication, sharing of data, and common processes or standards.Similarly, even though operating units are now “visible” with MOAC functionality, and you are able to transact across operating units, the governance to enforce standard is not built into the functionality. An operating unit can have different discount policies, different credit limits, different pricing books, etc. than another operating unit, even within the same set of books. Statutory and regulatory reporting can be problematic at best. For SEC reporters this can mean having to export consolidating information from multiple instances and then map disparate information into consolidated financial statements. The problem can be even more intractable than just mapping, the way expenses are allocated in each instance can be very different. Additionally, for SEC reporters the annual external audit is significantly harder as auditors have to look at information system controls around financial reporting for multiple instances. HR management is challenging as well. There is no way to transfer employees between instances. Worse, it is not uncommon to have duplicate positions without a single system for HR to work with. Tax compliance is fraught with challenges. At a minimum, sales tax nexus (whether a company has physical presence) is almost impossible to determine the location of all employees easily between multiple instances. Likewise for state tax reporting, apportionment for income tax reporting is done based on sales, employee location, and a variety of other information that may need to be aggregated from multiple instances. Customer relations can be significantly impaired by multi-instance information silos. As an example, managing customer credit lines can’t be done within EBS if the same customer exists in multiple instances. Think of the impact of asking a significant customer to provide all their information multiple times as they buy from disparate pieces of your company.Supply chain management become difficult as eProcurement will not function across instances. A result can be duplicate purchases, foregone quantity discounts, poor purchase timing leading to overstock or shortages.Workflows are negatively impacted as duplicate users are set-up for approvals. Worse, from a GRC standpoint, it is possible to have a user with multiple levels of access just to overcome the silos. Separate Business GroupsBecause statutory requirements and HR regs are maintained at the business group level, separate business groups can caasue difficulties in managing employees- there is no easy way to transfer an employee. This can also cause difficulties in payroll tax reporting and compliance.Separate Sets of Books (Ledgers), Separate Operating Units, Separate Inventory Orgs and Multiple COAs and CalendarsWith the multiple charts of accounts and calendars, it was virtually impossible to generate accurate and transparent financial results.  In E-Business Suite Release 11i, there is no easy and no transparent way to operate across different sets of books or between instances.  As an example, something as simple as intercompany transfers can be needlessly cumbersome.  Instead of the ease of doing entries within one instance, a multi-instance EBS set-up means that the transactions are accounted for discretely, with no reference between the originating or recipient company.  At best, this could cause errors where timing and or amounts are not consistent.  This could result in overpaying or underpaying taxes, value added tax (VAT), or other taxes due to incorrect regulatory reporting.  Worse, because of the high number of manual reconciliations, intercompany revenues could be outright misstated and not properly eliminated on consolidation.  Other problems that could arise are difficulties in providing organization-wide management reports.  When there is manual reconciliation having to be performed to get what should be readily available performance measures, time is lost and the information loses its decision usefulness.  Instead of management being able to react quickly to changes, operations can become a series of reactions to late-arriving information.Each operating unit has individual freight carriers, matching tolerances, approval hierarchies, supplier terms, and contracts.  With a multitude of operating units, it is difficult to determine how much business is conducted with a particular supplier, difficult to determine the enterprise cost of managing and maintaining different supplier relationships, and difficult to determine the burdened costs of different inventories.  Within a multi-org environment, much of the data must be set up by operating unit.  While there are some advantages to having a multi-org environment, especially in regard to security, there are limitations that prevent obtaining an enterprise view of the data, especially the ability to leverage supplier relationships.  By consolidating operating units to provide an enterprise view of the data, an organization may be able to reduce the number of suppliers or negotiate with current suppliers to obtain larger discounts and change payment terms—each of which contributes major amounts of money to the bottom line.
  5. When Silos exist in critical areas, costly workaround must be developed. SpreadsheetsExternal reporting software- HyperionData warehousesEducated guessesPaper files“Cheat sheets”
  6. Redundancy Within an EBS InstanceMultiple charts of accounts (COAs) and calendarsGenerating accurate and transparent financial results is virtually impossibleMultiple sets of booksAccounting for intercompany transfers becomes cumbersomeTransactions are accounted for discretely and without referenceTiming and accounting errors are commonIncorrectly reporting on taxes and other regulatory requirements can lead to over- or under-paymentMisstating revenue can go unnoticed due to manual, error-prone reconciliationsMultiple operating unitsSupplier relationships and analytics become difficult to leverageInventory valuation problems are very difficult to spot and resolve
  7. With the proliferation of silos and channels comes the problem of knowing whose version of the “truth” is correct. Where did it originate?What data supports it? Is it complete or accurate? These combine to lead to a seldom asked question: How trustworthy is it?  Lack of confidence in the quality of data impacts operations and financial performance, increases resource, legal, and audit costs, and heightens risks associated with regulatory compliance.
  8. Bridging the silos starts with Identifying the information that exists in the organizationDetermining what information needs to be sharedWhat information, due to regulatory requirements, must be maintained separately.  In order to effectively eliminate silos, it is also necessary to identify common business processes in the organization.  Any efforts to eliminate the silos must be championed from the top of the organization by someone with authority, a budget, and an ability to share the vision of a connected enterprise.  Often driven by the CIO (Chief Information Officer), the efforts to remove silos must include defining clear responsibilities, especially for the business process owners.   Maintaining the link between the business and the data needed to support the business processes creates opportunities to get the right information to the right people at the right time in order to enable better and more intelligent decisions.
  9. Let’s look at an example of an EBS user.  This company, referred to as XM, had four different EBS instances.  A profile of the different instances follows:In addition to trying to operate from different versions of EBS with different modules installed, XM had multiple sets of books (SOBs), legal entities (LEs), operating units (OUs), and inventory orgs that were redundant and configured differently.  The following table shows those objects in each instance that could be logically consolidated into other objects, and therefore eliminated as separate objects, so that XM can conduct operations consistently and still comply with local statutory and regulatory requirements.
  10. Three Instances:Instance A –6 sets of books 6 COAs5 Calendars2 Currencies5 Legal Entities10 Operating Units118 Inventory OrgsInstance B —38 Sets of Books1 COA1 Calendar8 Currencies46 legal Entities25 Operating Units23 Inventory OrgsInstance C —13 Sets of Books13 COAs1 Calendar6 Currencies14 Legal Entities28 Operating Units31 Inventory Orgs