September 30, 2014

1. Best Practices: Learn from the AARP Implementation of PeopleSoft Financials 9.2Early Adopter Program (EAP) September 30, 2014

2. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

3. Who we are: AARP Video

4. Organizational/System Metrics Organization • Location : 50 states, DC, Puerto Rico and US Virgin Islands • Business Units : 23 • Employees : 2,500 System • Customers : 1,400 • Vendors : 254,000 • Banks : 2 Banks; 35 Accounts • Monthly Vouchers : 15,000 • Monthly Billing : 300 • Monthly Pos/Reqs : 2,500 • Monthly Expenses : 3,800 • Open Grants : 80 • Fixed Assets : 6,000

5. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

6. Business Value Improved user experience Integrated platform Automated controls Improved period close Data accuracy Increased Reporting Capability Business Process Standardization Optimized, scalable organizational structure Enhanced collaboration w/employees, suppliers, customers & partners

7. IT Value Current State Future State • Integrated systems • Common database • Automated processes • One common set of Master Data • Single system of record • Disparate systems • Multiple databases • Manual, redundant processes • Fragmented Master Data • Fragmented reporting

8. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

9. Program Organization Executive Sponsors Program Operations Team Process Representatives Process Representatives Process Representatives Process Representatives Process Representatives Process Representatives Program Lead Director, ERP Program Coordinator Senior Advisor ERP Advisors Project Manager Project Analyst HCM/EPM Support Team Subject Matter Expert (SMEs) Subject Matter Expert (SMEs) Solution Architect Subject Matter Expert (SMEs) IBM Delivery Project Exec Subject Matter Expert (SMEs) Solution Architect Solution Architect Solution Architect Solution Architect Solution Architect Subject Matter Expert (SMEs) Solution Architect Subject Matter Expert (SMEs) Subject Matter Expert (SMEs) IBM Solution Architect Finance Analyst IBM Lead Group Finance Dir IBM Project Manager Chg & Training Specialist Org Chg Specialist 3rd Party Proj Dir & Principal Architect IBM Project Manager Communications Specialist Procurement Support Account to Report (A2R) Customer to Cash (C2C) Treasury Workstation Application Support Source to Settle (S2S) Hire to Rehire (H2R) IT Enterprise Performance Management (EPM) Solution Owner Solution Architect Senior Advisor Solution Owner Solution Owner Solution Owner Solution Owner Solution Owner Solution Owner Subject Matter Expert (SMEs) Project Manager (IT) Project Manager (Business) HCM/JDE Support Team Senior Advisor

10. Implementation Schedule

11. 32 Systems Consolidated to PeopleSoft Implemented State Legacy State (Total 32) QuestStat (Planned) PeopleSoft FSCM 9.2 + OBIA Concur Travel & Expenses JDE GL, Assets, Grants, Projects, AP, Reqs, POs, Vendors, Customers Admark Customers, Billings, AR Manual + access dbs Supplier Contracts, Strategic Sourcing, Financial Gateway, Reporting PeopleSoft HCM 9.1 + ELM 9.1 QuestStat PS HCM 9.1 Improvements Benefits Assessment, Security Rationalization, Row Level Security, Apply Maintenance packs 3-7 Ontrack + Learning Portal Enterprise Learning Management Gauss ePerformance UPKs for Training Data Center Migration to Cloud

12. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

13. Implementation Footprint New 9.2 Features Adopted • Financials Audit Trail for Supplier Changes • Balance Sheet Valuation through Settlement Date • Account Reconciliation Management • Improved General Ledger to Sub-System Reconciliation • Combination Editing by Transaction Source • SpeedCharts • Mass GL Journal Approval • Enhanced Approvals for GL Journals • Approval Workflow for Commitment Control Budget Journals • Implementation of Financial Gateway • Project Summarization • Rounding and Accelerated Processing for Project Funds Distribution • A2R: Accounts to Record • General Ledger • Grants Management • Project Costing • Asset Management • Commitment Control

14. Implementation Footprint New 9.2 Features Adopted • Supplier Hierarchy • Implementation of Contracts • Supplier Onboarding & Collaboration • Audit trail to support the changes that are made to the supplier core data. • Self-Service Supplier and Bidder Registration • Implementation of Strategic Sourcing • Price Adjustment Visibility on Requisitions • PO Rollover Improvements • Procurement and Payables Integration to Asset Management • Transparent Punchout • S2S: Source to Settle • Purchasing • eProcurement • Supplier Contracts • Strategic Sourcing • Accounts Payables • Travel and Expenses • Financial Gateway

15. Implementation Footprint New 9.2 Features Adopted • Cash Forecasting • Billing Dashboard and Workcenter • AR Workcenter • C2C: Customer to Cash • Customer Management • Customer Billing • Accounts Receivables • Customer Contracts

16. Implementation Footprint • H2R: Hire to Retire • ePerformance • eDevelopment • Enterprise Learning Management • Security Redesign • Remaining Implementation Modules • eCompensation • Succession Planning • Career Planning

17. Implementation Footprint • EPM: Enterprise Performance Management • Enhanced Hyperion 11.1 • Enhancement & DRM • HR OBIEE/OBIA • Procurement OBIEE/OBIA • Projects OBIEE/OBIA • Financials OBIEE/OBIA

18. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

19. Defined and implemented a Reporting Governance Structure to analyze and migrate user requested reports Approach to finding a Reporting Home

20. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

21. QA and Testing Business Process/Policy Change Impacts Non Functional/Infrastructure Test Prod Readiness Test: 2 Months UAT: 6 Weeks Integration Test: 2 Months System Test: 2 Months Unit and String Tests Design Validation incl. Visual CRPs: 2 months

22. QA and Testing: PTF • PTF (PeopleSoft Test Framework): Not Used* • * In consideration now to address regression test with PUM application • Rationale: Manual test activity to enable knowledge transition and build up SME knowledge

23. Agenda Get to Know AARP Program Value Proposition Program Scope & Timeline Feature/Function Highlights Reporting Solutions Testing Change Management

24. Platform Adoption • Secure Enterprise Search (SES) & Global Search • Pivot Grids • Embedded Help • New PeopleSoft Online Help Solution • PeopleSoft Update Manager (PUM) • Apple Devices • New Attachment Functionality • Work Centers and Dashboards • Value Add Integrations (Integration broker enhancements) • Approval Workflow Improvements & Extensions

25. Our Guiding Principles Remain Unchanged

26. Change Management – Lessons Learned • Complicating factors • Unwinding 10 years of business process • Moving off an exceptionally stable platform • BPO of AP and Payroll during implementation • Communication plan • End User Driven Strategy

27. Contact Information Amy Doherty VP, CSSD, AARP adoherty@aarp.org Steven Doyle Partner, IBM sedoyle@us.ibm.com Sid Prodhan Associate Partner, IBM sprodhan@us.ibm.com