The road to Oracle Cloud – Financials, Payroll & HCMInoApps Globe Event – Wednesday 28th September 2016
Bob MunroChief Financial Officer
Agenda
• Overview of Callcredit
• The case ( desperate need !) for change
• The vendor selection process
• Project Scope & (original…..) plan
• What actually happened & status today
• Benefits Realised & Lessons learnt
• Questions
Callcredit – Our history & growth
With consumer data at the heart of everything we do, the
business builds on a strong heritage established over the last
15 years serving credit and marketing professionals.
2003 2008 2010/11
2000 2007 2009 2012
2014
Callcredit, EuroDirect (est.
1991) and GMAP (est.
1997) were brought
together under the
name Skipton Information
Group.
Broadsystem
(est. 1984)
was acquired.
Renamed Callcredit
Information Group
Further acquisitions –
pbl, Latitude,
The Trading Floor,
TenantID, GMAP Japan
KK was also formed.
Callcredit
was
formed
Legatio and Decision
Metrics were acquired.
Opened a regional
office in Japan
Management team led a
Management Buy Out (MBO)
backed by Vitruvian Partners,
a private equity business.
Noddle Limited and
Callcredit Operations
UAB (Lithuania)
were founded.
Acquisition of Coactiva.
Management team led an
MBO backed by GTCR,
a private equity business.
2013Acquisitions of
Lifestyles Online.
GMAP China opened
in Shanghai.
2016Acquisition
of Numero.
Application
to FCA.
3
Acquired Recipero 26 Sep
The need to transform Finance within Callcredit
£
m
Total cost of Finance
Other
IT
Labour
2013 2014 2015 LV
Key Metrics 2013 2014 2015
Finance cost as % revenue
High Higher Even Higher
PwC Benchmark
- All companies (median) 0.93% Key Trend –reducing costs
- Financial services (median)
1.48%
FTEs (incl. MSD billing) 50 54 61
Systems are a significant driver of overall finance costs, heightened control risk and reduced finance effectiveness.
Total cost growth (%) of finance function (incl. biling) outpacing sales growth - Total costs significantly > median benchmark
Processes & controls • Ability to adopt best practices impaired• Transactions - inconsistent processes / multiple G/Ls• Reporting / Planning – entirely spreadsheet based• Controls predominantly manual & retrospective
People / Organisation• High attrition & declining engagement ; • Commercial finance / business partners spend majority
of time “data gathering” vs business insight / analysis• Strong appetite for change
Current trajectory
Target
Strategic / growth priorities of business demand finance rebalance resources & activities to business partnering, that processes are cost efficient and control/risk framework aligned to best practice
• New finance system key enabler of all 3 core objectives
CRMMicrosoft Dynamics CRM 2013 / Bizagi / CallPro
Usage Billing(iDynamics Tardis)
FinanceSage (Credit)
BIMicrosoft SQL Server 2012 / MDS
TimesheetsKeydin
HRNGA
Empower
PayrollNGA
Empower
ExpensesConcur
Micro
soft O
n P
rem
ise(O
ffice 20
10
, Exchan
ge 20
07
, Lync 2
01
3, Sh
arePo
int 2
00
7 / 2
01
0)
FinanceSpread -sheets
Current systems do not meet current / future needs - fragmented landscape, old technology, high spreadsheet dependency in finance
FinancePegasus (MSD)
FinanceExchequer
(MSD)
FinanceSpread -sheets
FinanceSpread -sheets
FinanceSpread -sheets
FinanceSpread -sheets
FinanceSpread -sheets
Fin
ance
/ H
R –
Tran
sact
ion
al S
yste
ms
incl
. b
illin
gB
ud
geti
ng/
Fore
cast
ing
/ R
ep
ort
ing
HR / Payroll • Current system not fit for purpose -
unsupported in 2016
• Weak MI & business intelligence
• Minimal process automation capability
Finance • Limited integration of past acquisitions
• No planning /reporting tools
• Cannot support key MI needs
• Inconsistent data structures
HR & Finance• Low run costs
• Disaster Recovery capability weak
• Limited / no international functionality
CRMMicrosoft Dynamics CRM 2015 / CPQ / ActiveDocs
Micro
soft O
ffice 3
65
/ Oth
er M
S Clo
ud
Service
s(O
ffice, Exchan
ge, Lync, Sh
arePo
int / P
ow
er BI, A
zure Services)
BIMicrosoft SQL Server 2014 / MDS
Usage Billing(iDynamics Tardis)
Budgeting, Planning / Forecasting and Reporting
Transactional Finance System
Supplier:Procure-to-Pay
Billing:Invoice-to-Cash
Asset:Acquire-to-Retire
Projects:Time -sheets
G / L:Record-
to-Report
HR Payroll Expenses
High level / Key Requirements
• Integrated finance / HR system, unless material functionality gaps warranted “best in breed” approach
• Configurable systems, incorporating best practice processes / workflow automation (incl. mobile), built on open framework for flexible integration
• Proven solutions from established vendors, committed to ongoing development of full suite of applications
• Systems delivered as SaaS/hosted,
with cost effective licensing & support models
Target end state – a fully integrated, scalable, cost effective solution that provides the business with leading functional capabilities
Summary Assessment – Oracle & InoApps emerged as preferred vendor, based on functionality, ability to deliver & cost
Vendor Scoring - Summary
• SAP has marginal technical, support and HR functional capability advantages over Oracle.
• Oracle proved significantly stronger product adoption rates, the suitability of the implementation partner and finance functional capabilities.
• From a Total Cost of Ownership perspective Oracle is a clear winner.
• Net total cost of Oracle solution & annual P/l impact to be further narrowed through contract negotiation
General 80% 38%
Implementation Partner 80% 30%
Technical 56% 62%
Functional Capability - Finance 75% 65%
System Integration 70% 70%
Support and Maintenance 50% 60%
Costs 65% 30%
Vendor Selection Process
• Long list identified through bench research , discussions with professional advisors & peer companies
• High level technology / functional assessment - short list of 3 vendors
• Detailed assessment scope - total cost of ownership, functional & technical requirements, delivery capability / vendor attributes
• Process commenced early May, targeted to conclude end July
Original Plan - New Finance & HR system will be implemented in phases through to July 2016
2015 2016
Today
Jul Sep Nov 2016 Mar May Jul
GTCR Board Approval7/30/2015
Contracts Signed8/31/2015
Project Start9/1/2015
Global Design Complete
10/12/2015Phase 1 Delivered into Production1/25/2016
Phase 2 Delivered into Production7/11/2016
7/30/2015 - 8/31/2015Contract Setup
9/1/2015 - 10/12/2015Global Design
10/12/2015 - 1/25/2016
Billing 10/12/2015 - 1/25/2016
Core Financials
10/12/2015 - 1/25/2016Procure to Pay
10/12/2015 - 1/25/2016Project Accounting
10/12/2015 - 1/25/2016Payroll
10/12/2015 - 1/25/2016Core HR
2/15/2016 - 7/11/2016Planning and Budgeting
2/15/2016 - 7/11/2016HR Phase 2
7/12/2016 - 8/9/2016Post Implentation Support
Implementation plan - Post design and CRP -end date retained, phased drops
February March April May June July August
Data
Design CRP TestingSystem Available to Callcredit 28/7
Production Handover29/2
Full Launch04/4
HCM Phase 1
HCM Phase 2
Payroll
Finance
Service Management
Decommission
P1 P215/3 29/3 14/4
DL
Drop 1
Drop 2
Drop 3
Drop 4
Drop 5
Contract and Build Handover Handover Handover Handover
Requirements Decommissioning
29/2
04/4
01/5
01/6
15/7
• HCM – Phase 1 data migration, core self service functionality ; Phase 2 –Learning & development, performance management
• Payroll – 3 months parallel running, comprehensive testing
Project CORA - Financial Scope & Phasing
Drop 1 - March
GENERAL LEDGER
Tenant ID Limited
Coactiva Limited
Crown Acquisition TopCo Ltd
Crown Acquisition MidCo Ltd
Crown Acquisition MidCo2 Ltd
Crown Acquisition BidCo Ltd
Crown Acquisition Consumer Limited
Drop 2 - April
ACCOUNTS PAYABLE / ACCOUNTS RECEIVABLE / CASH MANAGEMENT
Process Benchmarking Limited
Callcredit Data Solutions Limited
Callcredit Information Group Limited
Latitude Digital Marketing Limited
Drop 3 - May
• FIXED ASSETS
• Callcredit Limited
• DecisionMetrics Limited
• Callcredit Consumer Limited
• Callcredit Public Sector Limited
Drop 4 – June
• INTERCOMPANY
• Callcredit Marketing Limited
• Callcredit Lead Generation Limited
• Project Numero (Acquired Feb 2016)
Drop 5 - July
• EXPENSES (TBC)
• PROCUREMENT (TBC)
• PBCS
• PROJECTS
• Callcredit Operations UAB
• GMAP Japan / GMAP Shanghai
10 Oracle finance modules, 21 legal entities, 13 business units
Overall Project slipped 1-2 months against aggressive timetable
February March April May June July August
Data
Design CRP TestingSystem Available to Callcredit 28/7
Production Handover29/2
Full Launch04/4
HCM Phase 1
HCM Phase 2
Payroll
Finance
Service Management
Decommission
P1 P215/3 29/3 14/4
DL
Drop 1
Drop 2
Drop 3
Drop 4
Drop 5
Contract and Build Handover Handover Handover Handover
Requirements Decommissioning
29/2
04/4
01/5
01/6
15/7
• Payroll – 2cnd Implementation in UK of wholly new system – required extended testing / software fixes – Oracle highly engaged
• HCM – Data migration delays – issues with legacy data, migration capabilities
Callcredit Oracle Cloud Financials – Staus as at 28th September
Drop 1 – March COMPLETE• GENERAL LEDGER• Tenant ID Limited• Coactiva Limited• Crown Acquisition TopCo Ltd• Crown Acquisition MidCo Ltd• Crown Acquisition MidCo2 Ltd• Crown Acquisition BidCo Ltd• Crown Acquisition Consumer Limited
Drop 2 – May COMPLETE• ACCOUNTS PAYABLE / ACCOUNTS RECEIVABLE
/ CASH MANAGEMENT• Process Benchmarking Limited• Callcredit Information Group Limited• Latitude Digital Marketing Limited
Drop 3 – July COMPLETE• FIXED ASSETS• Callcredit Limited• Callcredit Consumer Limited• DecisionMetrics Limited• Callcredit Public Sector Limited• Callcredit Marketing Limited• Callcredit Lead Generation Limited• Callcredit Data Solutions LImited
Drop 4 – August
Drop 5 – September ON TRACK• PBCS
October ON TRACK• Release 11 Upgrade
The remaining modules to be implemented between Q4 2016 and Q1 2017 – Procurement / Expenses / Project Accounting
The Release 11 Upgrade has caused us to ‘pause’ project activities
Financials
Payroll – 3 months completed , o/s issues being progressively addressed ;HCM – Strong user adoption and acceptance ; MI and reporting issues
Status as of 28th September 2016
7 holding companies live on Oracle Cloud Financials (GL)
10 business units live on Oracle Financials (GL/AP/AR/CM/FA)
Oracle Cloud HCM (phase 1) live
Oracle Cloud Payroll live
Callcredit is the first company in the UK to go live at the same time with Oracle Cloud HCM, Financials
and Payroll
All in 11 months
It can be done!(but not without some pain)
10 Lessons Learnt from Oracle Cloud Financials Implementation
• RESOURCING - this is not a “side of desk activity” ;• During the planning phase the number of subject matter experts required for design,
build and testing. Take this number, then double it.
• DESIGN – Conference Room Pilots critical phase of design phase• Output is what gets built ; requires significant engagement from future users ( beyond
project team ) ;
• Makes sure you have “challengers” ; everyone’s learning , some are just more expert
• DATA MIGRATION / INTERFACES – Legacy data issues, master data models, limited automated migration capabilities
• CONFIGURATION / ENVIRONMENT MANAGEMENT• Rigorous controls required to ensure alignment across test, production environments
• Lack of Automated tools - each environment “configured by hand”
• SYSTEM / CONFIGURATION DOCUMENTATION
10 Lessons Learnt from Oracle Cloud Financials Implementation
• ORACLE FUSION IS NOT E-BUSINESS SUITE • Very good but developing product - gaps in functionality, tools and integration across
platform
• PAYROLL IS A NEW PRODUCT – Very strong Oracle focus & support• Went live with work arounds ; being addressed through R11 & R12
• BEST PRACTICE PROCESSES STANDARDS – “Out of the box” configurable processes very good, but some gaps
• SERVICE MANAGEMENT – Fragmented E2E service/ support model, requires very strong governance & supplier management
• WELCOME TO THE CLOUD - Patch updates, semi annual major releases• Impacts on resourcing / skillsets, testing, ongoing change management
Cloud Drivers vs Benefits Realised
Source: Enterprise Performance Management, Top Trends for 2016, Oracle, September 2016
In context of Cloud EPM, the top two cited benefits realised are getting results faster and improvements in the service received.
Benefits Realised To Date by Callcredit from Oracle Cloud Financials
• Integrated HCM, Payroll and Finance System• The bulk of Callcredit’s costs are human capital costs. An integrated system
allows these costs to be seamlessly posted to the General Ledger, analysed and reconciled.
• Secure, stable infrastructure, hosted in state-of-the-art data centre• Less downtime, outages, system failures etc.
• Single finance system with new global chart of accounts• Common ‘finance language’ across the department/companies etc.
• ‘Real time’ reporting through ‘on the fly’ build of the Balances Cube• Elimination of the prior need to continuously rebuild the reporting cube during
the month-end process.• Continuous processing in the Accounts Payable Department
• AP now can begin to process invoices in the next period from working day 3 (previously it was working day 10).
• Replica invoices populated in Accounts Receivable• Leveraging the InoApps data transformation tool, InoHub a monthly upload of
billing data allows full itemised invoices to be loaded in AR, facilitating cash collection.
Benefits Realised To Date by Callcredit from Oracle Cloud Financials (cont.)
• Invoice Approvals workflow (for unmatched invoices) allowing for time-saving across the AP department.
• Processing efficiencies from implementation of Procurement and Invoice Imaging
• Elimination of spreadsheets and process efficiencies from the implementation of PBCS (expected by 30th September).
• Elimination of the Group Allocations spreadsheet(s) and process efficiencies from the implementation of Calculation Manager (expected by 31st October).
Q&A