Maggie Driscoll Business Applications Controller Director - Finance Cap Gemini Ernst & Young

2. Maggie DriscollBusiness Applications Controller Director - Finance Cap Gemini Ernst & Young

3. Using Oracle Projects for Flexible Business Management

4. The Strategic View – Background • Oracle Products Background • Oracle 10.7 system within Cap Gemini (Implemented from 1996) • General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, Cash Management, Project Billing & Costing • Human Resources & Payroll (Implemented in 1998) • iProcurement (Implemented in July 2002) • Current • All of above now on Release 11i

5. The Strategic View – Background • Company Background • Complex Business Issues • Merger of Cap Gemini and Ernst & Young Consulting & Gemini, May 2000 • Future • Release 12 • Working closely with Oracle on future product pre-releases, including project management/collaboration • Self Service Human Resources

6. Challenge: Business Management Internal Cause: • Reorganisations • Acquisitions • Joint Ventures • Multi Vendor & Customer Environment • Fragmented Business Information • Cost to run Multiple Systems

7. Challenge: Operational Efficiency Cause : • Reorganisations • Acquisitions • Joint Ventures • High Application Roll Out Costs • High Training Costs • Unable to maintain 5 day Close • Cannot view Projects across Legal Entities

8. Challenges: Global Operations & Financial • Business Intelligence/Information: • Increase in demand for analysis of data & information in ‘challenging’ times • Invoicing: • Internal Complexity vs. Customer contracts • Multi Currencies • Global deliveries

9. EY Consulting UK Cap Gemini Ernst & Young UK + Cap Gemini UK Telecom UK + Telecom IRE Gemini Consulting UK Cap Gemini Ernst & Young IRE EY Consulting IRE + Cap Gemini IRE Cap Gemini Ernst & Young UK & Ireland Reorganisations & Joint Ventures 4 Entities 1 Instance 5 Independent Systems

10. Cap Gemini Ernst & Young UK & Ireland Challenges: Year 2000 Solution : • Business Management • Reorganisation/ Acquisition/Joint Venture • Multi Vendor & Customer Environment • Fragmented Business Information • Cost to run Multiple Systems Oracle 11i Upgrade • Operational Efficiency • High Application Roll Out Costs • High Training Costs • Unable to maintain 5 Day Close • Cannot view Projects across Legal Entities • Financials • Project Costing • Project Billing • Global Operations & Financial • Business Intelligence • Multi Currency Invoicing

11. CGEY Oracle Projects & Ledgers‘OPAL’

12. Hyperion CUSTOMERS WORKFLOW Cash Mgt AR PA SIEBEL AP Fixed Assets GL DTX RETAIN HR / Payroll Oracle Projects & Ledgers Hyperion E-Procurement HR / Payroll

13. Oracle Projects & Ledgers FDC Hyperion CUSTOMERS E-Procurement WORKFLOW Cash Mgt AR Vendor Invoices PA SIEBEL AP Costs AP AP Costs Fixed Assets Employees GL Salaries etc. DTX HR / Payroll RETAIN Employees

14. Oracle Projects & Ledgers FDC Hyperion CUSTOMERS E-Procurement WORKFLOW Billing Billing Cash Mgt AR Vendor Invoices PA Billing SIEBEL AP Costs AP Billing Revenue Charges / Recoveries Timecard & Expenses AP Costs Fixed Assets Employees GL Salaries etc. DTX HR / Payroll RETAIN Employees

15. Oracle Projects & Ledgers Hyperion CUSTOMERS E-Procurement WORKFLOW Upload Billing Billing Cash Mgt AR Vendor Invoices Sales Funnel PA Billing SIEBEL AP Costs AP Billing Revenue Charges / Recoveries Timecard & Expenses AP Costs Fixed Assets Employees GL Salaries etc. DTX HR / Payroll On-Line Authorisation RETAIN Employees

16. Oracle Projects & Ledgers FDC Hyperion CUSTOMERS E-Procurement WORKFLOW Upload Billing Billing Cash Mgt AR Vendor Invoices Sales Funnel REPORTING Business Objects PA Billing SIEBEL AP Costs AP Billing Revenue Charges / Recoveries Timecard & Expenses AP Costs Fixed Assets Employees GL Salaries etc. DTX HR / Payroll RETAIN Employees

17. Oracle Projects & Ledgers FDC Hyperion CUSTOMERS E-Procurement WORKFLOW Upload Billing Billing Cash Mgt AR Vendor Invoices Sales Funnel REPORTING Business Objects OFA Discoverer PA Billing SIEBEL AP Costs AP Billing Revenue Charges / Recoveries Timecard & Expenses AP Costs Fixed Assets Employees GL Salaries etc. DTX HR / Payroll RETAIN Employees

18. Using Oracle Projects for Flexible Business Management HOW & WHY?

19. “Cap Gemini Ernst & Young requires an application to accommodate our ever changing organisational structure. Our managers also need the capability to gain projects visibility across legal entities in a single instance. Oracle 11i meets these objectives” Christine Hodgson CFO Cap Gemini Ernst & Young, UK& Ireland

20. Oracle Projects Design • Business Rule • Everything is project coded • Matrix Reporting • Project Ownership, Types & Classifications • Extracts – Cross Operating Unit • Customisations • Time & Expense Recording - DTX • Forecasting • Borrowed & Lent • Designed in 10.7 • Auto Accounting rules • GL Segments • Not using 11i functionality • Intercompany functionality • Extensions - flexibility

21. “Oracle 11i inter-company functionality enables the UK not to incur additional overheads in the area of 'intra-geography' trading and runs a relatively seamless operation, which most importantly is seamless to our clients and to our consultants.” Luc Bourguignon Director - Finance, Group Reporting & Quality Cap Gemini Ernst & Young, UK & Ireland

22. Oracle Projects Design • One Instance of Oracle Financials • 4+ Legal Entities - Multiple Functional Currencies • Multiple Divisions • 6500+ Employees • 400 Business Units • 8000 Projects

23. How & Why Projects…. • All revenue, cost & commitment is project coded • Simple Project Structure – All Operating Units • Resources • Margin comparison • Project & Delivery Financial Mgt • Reporting

24. Project Structure • Simple • Any resource can be charged to any project! • Charges & Recoveries (Borrowed & Lent) • Reporting design • Project Owner • Project Classifications • Project Types • Customers • Revenue Categories • Cost Categories

25. Why hierarchies • Projects & Resources ‘owned’ by business units • Matrix Reporting ‘as if owned’ • ‘Extracts’ of data • Can ‘restate’ history without transactional impact • Core Functionality

26. Executive Conclusions • “As with all large organisations, we • inevitably hone our organisation each • year. The 11i functionality enables us to manage re-organisations using core functionality from within Projects. • The use of 'multiple hierarchies' means that we are able to more easily produce matrix reporting with little or no effect on transactional data or legal entity.” • Maggie Driscoll • Director - Finance, Operational & Functional • Cap Gemini Ernst & Young, UK & Ireland

27. Invoicing • Work/Work • Simple & Composite Billing • Customisations • Composite Billing – Multiple projects • Simple print module

28. Intercompany Design • Seamless view & management of the ‘project’ across Operating Units • Allow cross charging of all resources on projects • Automated intercompany • Transfer Price rules • Operating Unit • Business Unit • Project • Use of ‘extensions’ provides flexibility • Billing • Costing

29. And the Result…. • Massive data reorganisations can occur using core functionality in Projects • Hierarchy changes • Changes to Lists of Values in PA • Amending Transfer price rules • Restate history through reporting rather than transactional change • Audit Trail maintained on the Project • Audit Trail maintained for Customer • Audit Trail maintained in the Ledgers

30. Executive Conclusions “Our management accounting & invoicing functions are dispersed throughout the company. Oracle Projects allows us to bill our customers, but analyse the revenue & costs according to our own internal structures. Most of my unit’s business users don’t even know what the General Ledger is! Ian Murphy Financial Controller Cap Gemini Ernst & Young, UK & Ireland

31. … and to conclude Oracle Projects has been a complete success for us, giving us ongoing financial benefits At the same time it has allowed us to compress the financial close cycle, with improved quality of business reporting, which would have only been possible through complex General Ledger Reporting Tony Deans Vice President Cap Gemini Ernst & Young, UK& Ireland

32. …and of course life really is not quite that simple, but Oracle Projects certainly helps

33. Q & Q U E S T I O N S A N S W E R S A

35. Primary Reporting Hierarchy • Features: • Single Primary Hierarchy for System • Hierarchical Structure • Business Group Organisation at Top of Hierarchy • Consolidation Organisations as well as Low Level Organisations • Used as Default Hierarchy for GOP and other reporting • All Organisations in each Sub Hierarchy belong to same OU Business Group Org OU1 Org OU3 Org OU2 Org … … … Cons Org (OU1) Cons Org (OU2) Cons Org (OU3) LL Org1 (OU1) LL Org1 (OU2) LL Org1 (OU3) LL Org2 (OU1) LL Org2 (OU2) LL Org2 (OU3)

36. Alternative Reporting Hierarchies • Features: • As many Alternative Reporting Hierarchy as required • Hierarchical Structure • Any Organisation can be at Top of Hierarchy • Low Level Organisations do not necessarily appear in every Hierarchy • Organisations from different OU’s can appear at all levels and branches • Used for Memo and other special reporting Alt Hierarchy Top Org … Cons Org1 Cons Org2 LL Org1 (OU1) LL Org2 (OU1) LL Org1 (OU2) LL Org2 (OU2) LL Org1 (OU3) LL Org2 (OU3)

37. OPAL 11i UPRADE - Intercompany Receiver Provider AR Invoice AP Invoice AP AR ICPO Generates Posts ICPROJ TPO Notional Charge Actual Charge and Recovery and Recovery TPROJ Books to RO KEY TPROJ - Target Project ICPROJ - Inter Company Project RO - Resource Owning Org ICPO - Inter Company Project Owner TPO - Target Project Owning Org

38. OPAL 11i UPGRADE - Intercompany Receiver Provider IC Project Forecast Process Absorbed Cost Forecast Project IC Revenue Forecast ICPO TPOABC ICPROJ TPO TPROJ Forecasts RO KEY TPROJ - Target Project TPOABC - Absorbed Cost Forecast Project for TPO ICPROJ - Inter Company Project RO - Resource Owning Org ICPO - Inter Company Project Owner TPO - Target Project Owning Org

39. 11i Transfer Price Extension Get Cross Charge TP Schedule Identify Relevant Line / Rule Target Project Bill Rate Get Bill Rate Rate = Null Apply Line/Rule Percentages i.e. Use Std Appl Functionality

40. 11i Standard Costing Module Get Costing TP Schedule Identify Relevant Line / Rule Std Cost with DSA check Nominated Bill Rate Schedule Std Cost no DSA check Target Project Bill Rate DSA Check Get Std Cost Rate = Zero Get Bill Rate Apply Line / Rule Percentages

42. Executive Conclusions “Upgrading to 11i Financials enabled us to run all our accounts from a single, centrally managed database. We are able to roll out new applications to the thousands of PC’s in use in the UK & Ireland. Users can quickly and easily access information using any internet browser.” Jeff Clark Project Manager, Cap Gemini Ernst & Young, UK& Ireland