bord na móna financial shared services programme 2013 … conference 2017/shared services... ·...

Bord Na Móna

Implementing Shared Services and Business Intelligence at

Bord na Mona 2013-2017

David FoxFormer CIO Bord na Móna11th October 2017

Who is Bord na Móna? - Statistics

On an annual basis Bord na Móna:• Harvests and sells 4 million tonnes of peat;

• Blends, bags and distributes 1.6 million cubic metres of growing media;

• Manufactures and sells 210,000 tonnes of briquettes;

• Generates and sells 800,000 MW hours of electricity;

• Collects, treats and disposes of 625,000 tonnes of waste;

• Imports, blends, bags and sells 220,000 tonnes of coal;

• Purchases and co-fires 180,000 tonnes of biomass.

Copyright David Fox and Bord na Mona. Not for copying or distribution.

Shared Service Project Objective 2013

• Create an effective Finance operating model to support BNM to achieve strategic objectives by:• Standardisation, Simplification & Automation of following processes:

• Inventory Management

• Procure to Pay

• Order to Cash

• Record to Report

• Purchasing

• Reporting

• Facilitate cost reduction

• Increase quality of service

• Improved financial controls and risk avoidance

• Increased efficiency of Finance operations

• Migrating to Oracle StandardisationCopyright David Fox and Bord na Mona. Not for copying or

distribution.

Shared Service Project Objective 2013

Achieved via 3 key streams:

1. Organisation Change – new Shared Service Centre & Finance Business Partner model

2. Business Process Engineering – standardised, simplified processes & reporting, maximising use of automation

3. Information Technology – Implement Oracle R12 EBS solution & BI tools


Increased Efficiency• Optimised processes• Economies of scale• Greater span of control• Leverage IT investment• Standardisation• Process re-engineering• Integrated procurement• Acquisition synergies

Increased Effectiveness• Enhanced Customer Service from:

• Front office mind set• Service level agreements & service

costing• Make the most from specialist skills• Management more free to focus on

business issues• Improved decision support• Easier to do data warehousing• Improved control environment

Finance Shared Services – Business Case Benefits


FSS Functional Scope

Procure to Pay

• Submission (& approval) of Expenses

• Receive and Scan Mail (where received locally)

• Initiate Purchase Requisition

• Local Purchasing (P-Cards)

• Goods Receipting

Order to Cash

• Order Management (Point of Sales ‘POS’)

• Billing (including POS)

• Credit Management\ Cash Collection (POS)

• Accounts Receivable (POS)

Record to Report

• Request Chart of Accounts Changes

• Review Journal Entries

• Non-recurring/manual accruals

• Non rules based bad debt provisions, etc.

• Costing \ Project Accounting

• Budgeting, Forecasting (incl. cash flow and FX forecasting) & Business Planning

• Inventory (excl. sub-ledger recon. to GL)

• Review and analysis of Management Accounts

• Liaison with Business Unit Management

Local

Procure to Pay

• Processing & Audit of Expenses

• Receive and Scan Mail (where received in FSS)

• Supplier Master Data Management

• Centralised Purchasing

• Process AP Invoices (Including EDI)

Order to Cash

• AR Invoicing & Credit Management (excl. POS)

• Cash Receipts & Applications

• AR Collections

• Manage AR Period Close

Record to Report

• Manage AR Master Data & Open/Close Periods

• Create Standard Journal Entries

• Rules Based Provisions etc., & Sub Ledger Recs

• Fixed Assets (excl. Revals & Closing Projects)

• Bank and Petty Cash Recs

• Perform Allocations

• Inventory Accounting*

• Intercompany

• Perform Close & Consolidation

• Preparation of Management Accounts

• Tax Compliance

• Financial Reporting

• Audit & Compliance

Finance Shared Services

SHARED PROCESSES

Procure to Pay

• Resolve Supplier Queries

Order to Cash

• Customer Set Up & Maintenance

• Resolve Customer Queries

• Sales Order Admin (EDI, POS, Manual)

• Cash Collection (excl. POS)

Record to Report

• Budget preparation & processing

• Fixed Assets (revaluation & closing projects)

• Treasury (Group)


FSS Organisational Scope

Group

– Bord Na Móna Plc

– Bord Na Móna Property Ltd

– Bord Na Móna Treasury

Anua

– Bord Na Móna Environmental Ltd

– Bord Na Móna USA Inc.*

– Bord Na Móna Environment Products US Inc.*

– Bord Na Móna Environment UK Ltd*

Feedstock

– Bord Na Móna Allen Peat Ltd

– Bord Na Móna Energy Ltd

Retail

– Bord Na Móna Fuels Ltd

– Bord Na Móna UK Ltd*

– BNM Fuels Ltd

– Bord Na Móna Horticulture Ltd

Resource Recovery

– Bord Na Móna Resource Recovery

– Advanced Environmental Solutions (Ireland) Ltd

Powergen

– Edenderry Power Ltd

– Edenderry Operations Ltd

– Bord Na Móna Windfarm One Ltd

– Renewable Energy Ireland Limited (JV)

– Cushaling Power Ltd

– Oweninny Power Ltd (JV)

– Bruckana Wind Farm Ltd and Supply Company Ltd

– Mount Lucas Wind Farm Ltd and Supply Company Ltd

Companies Not in Scope

– Derryarkin Sand & Gravel

– Bord Na Móna ESOP Trustee Ltd

– Bord Na Móna Trustee Co. Ltd

– Suttons Oil

– Suttons Oil Ltd

– All non-trading or legal entities that are in liquidation

• In 2013 there were 28 active legal entities in BNM. Of these 23 were in scope for FSS includinginternational operations.

• FSS is viewed as an enabler for these and other acquisition and merger initiatives.


Legend

Oracle 12 Excel

Other –Internal

Other - External

Sage Line 500 Avante

2013 Applications Map

Manual InterfaceAutomatic Interface

Reconcile ReturnsRCT/ PSWT/ MOTCC

ROS

BankFile

Bank Payments

General

F

RE - Fuels

RR

PTime/ Payroll

Payroll

Central Payroll

SSC HR

G HR Payroll

Oracle

Reporting

OraclePayroll Cost Journals

Payments to Cash Mngt.

Gen Ledger

Oracle

Cash Mngt.

Oracle

ADataload (for Anua

Projects) Payments Only

Datalaod

LIMS Invoices

Excel

Continuous Cheques

Pre Printed ChequesAP Invoice

Payments (Std. Times)

Payroll

Clockwise/ TMS

Supporting Systems Payroll Journal

Payments

PayrollPayment by Results(Bonus Payments)

P.B.R.

Bonus Data

Production & Receipts

OtherRaw

Materials Inventory

Material Purchases

A

Sage Journals –Subsidiaries UK/ USA

Excel

Sage Journals

Sage – UK & US

Full Trial Balance

Journal Entries(Ireland, UK&USA)

ADI Uploads

Accruals Stock Journals Consolidated

ReportingTBC

Item Standard Costing/ Sales

Budgeting/ Various

Operations Planning

Budget/ Operations

Planning

Sales Reports Inventory

RE

Financial & Sales

Reporting

Diver/ Crystal/ Excel/ Access/

Sage

Item Standard Costing/ Sales

Budgeting/ Various Operations Planning

Financial & Sales Reporting - Diver

TBC

Bank Statements

EFT

Retail - Hort

Item Std Costing/ Sales Budgeting/

Various Ops Planning

Ops Planning - TXT

Production&Receipts

OtherPOs &

Scheduled Receipts

Inventory From Blade

Inventory Reports

Manual Adj. to

Inventory

UK Scheduled Inv. Despatches &Receipts

PInvent.,Purch.

PowerMaintAP Invoices, Inventory Balances&GL

Suppliers

Various reporting

Fuel Management

Analysis

Laboratory From IPSAS

AP InvoicesInventory

Balances&GL

Suppliers

Ae.g. Water/Soil Sampling

LIMS

Inventory Mgmt.Manufacturing

Sage – Anua UK

GL Journals

Production & Receipts

Other

FG/ RM/ Stores Inventory Mgmt

Avante Inventory Movements

GL Balances

Shipping

Fuels

F

InventoryProcurement

(Biomass)

IPSASReporting

Oracle

Quality

PabLab

Inventory ProcurementAP Invoicing

Maximo

Biomass/ Haulage

AP Invoices

Inventory & PO Journals

Production Sheets

Other

Supplier

Inventory

AP Invoices

GL Journals

Invoice Data - AR Sampling Data

TBC

TBC

Retail - Fuels

PTMPTP/HCM

RTR

Cheque/ EMT Export

OTC

Remittances

MS Word

CRM Application

MS Access

F RE - FuelsRRPGA

TBC

Order Mgt. -TBC

Excel

AR Invoice Related

BiddingPerformance Data

InvoicingReporting

Market Operations

Mkt. IntelligenceFuel Trends

Weather

Management

AP Invoices

GL Balances

Direct DebitsIVR

Realex/ Payzone/

Bilpay

Interfaces

EiTrax(Document

Mgt.)

Supporting Systems

Direct DebitsEFT

RealexCash/ Cheques

Payment Methods

Accounts Receivable Domestic

Routeman

GL Balances

Commercial Customers

IWS*

AR Balances

Commercial Customers -

Drehid

Genesys*

AR Balances

Cash/ Cheques

Other

IWS/ Genesys PowerMaint

Application Under Review Routeman

Customer

Cash/ Credit Notes

Shipping Execution

Sage

EDI Invoice

Order Mgt.

Sage

TBC

TBC

EDI Orders

Biomass Haulage

Data

Single Energy Market Systems

External Web Interface

SEMO

Transmission & Translation

Gentran EDI

Finished Goods Inventory

Order Mgmt.Shipping ExecutionInvoicing (UK/Int.)

Fourth Shift

GKN Pallet Tracking

Other

P&O Logistics –Planning&Execution

Blade (P&O)

Customer –UK/ Int.

EDI Invoice

EDI Orders

EDI Ack

EDI Remit

CashInvoices

(IRE)

Pallet Shipments Interface File

Note 1

Note 2

Manual Orders/ Printed Invoice

Customer –Domestic

Sales Reports

Orders (IRE)

Invoices UK/Int

- AR

Inventory

Cash – AR

AR Payments

TBC

RE - Hort

AR Invoicing

IPSAS

Electric Ireland (Customer)

External

Power Purchase Ag.

Hort

RE

New Commercial System – AR Commercial

*Elemos

Application Under Review

*New software combining Genesys & IWS` by Q4 2013

Out of Scope

BNM UK

Navision

3rd Party Logistical

Production

From/To Customer

UK/Int.

Orders

Invoice

Sutton OIl

Codas

From/To Customer

Orders

Invoice

Retail - FuelsTo Financial & Sales Reporting

Retail - Hort

Fourth Shift Blade

From Forthshift

Sage L 500

Ord

er

Mgm

t.

Ge

ne

ral L

ed

ger

Accounts Payable

Acco

un

ts R

ece

ivables

Purchasing

Inventory Mgmt.

Invoicing

Sage L 500

AvanteEpicor

Ge

ne

ral L

ed

ger

Accounts Payable

Acco

un

ts R

eceivables

Invoicing

Ban

k R

ec

Cas

h M

ngt

.

Fixe

d A

sse

ts

Ge

ne

ral L

ed

ger

Ch

art

of

Act

s

Re

po

rtin

g -

Frx

Inte

rco

mp

any

Accounts Payable

Purchasing

Vendors

Acco

un

ts R

eceivable

s

Inventory TBC

Fixe

d A

sse

ts

Ge

ne

ral L

ed

ger

Re

po

rtin

g -

Frx

Ban

k R

ec

Accounts Payable

Purchasing Acco

un

ts R

ece

ivables

Sage Line 200

Oracle

Ch

art

of

Act

s

Re

po

rtin

g

Cas

h B

oo

k

Accounts Payable

Vendors

Acco

un

ts R

ece

ivable

s

Excel

OracleOmincron Accounts

PayableAcco

un

ts R

ece

ivable

s(P

rop

erty)

Excel

Ge

ne

ral

Led

ger

Ge

ne

ral

Led

ger

CM Journals G

en

era

l Le

dge

r

Accounts Payable

Re

po

rtin

g

Bu

dge

ts

Jou

rnal

s

Man

ual

A

ccru

als

He

adco

un

t R

ep

ort

s –

IrlG

L

Tria

l Bal

ance

s(I

rl/U

K/U

SA G

L)

Ge

ne

ral

Led

ger

Acco

un

ts R

ece

ivable

s

Ban

k

Re

c

Cas

h

Mgm

t.

FSG

Re

po

rtin

gvi

a A

DI

Powergen Group Anua

RR Feedstock Re – Fuels Re – Hort

Legend

A Anua PTP Procure to Pay

F Feedstock HCMHuman Capital Management

p Powergen OTC Order to Cash

G Group PTM Purchase to Make

RRResourceRecovery

RE – FRetail Fuels

RE – H RetailHorticulture


Legend LegendOracle Excel

Other -Internal

Other - External

2017 Applications Map

Manual InterfaceAutomatic Interface

Oracle

Ge

ne

ral L

ed

ger

Cas

h M

gmt.

Fixe

d A

sse

ts

Pro

ject

Co

stin

g

Inventory Mgmt.

Acco

un

ts R

ece

ivab

les

Ad

vanced

C

ollectio

ns

Accounts Payable

Purchasing

iProcurement

iExpense

Reconcile ReturnsRCT/ PSWT/ MOTCC

ROS

BankFile

Bank Payments

General

F

RR

BNM Wide

HR Payroll

Oracle

Reporting

Oracle

Payroll Cost Journals

Payments to Cash Mngt.

Gen Ledger

Oracle

Cash Mngt.

Oracle

Payroll Interface

Payments (Std. Times)

Payroll

Clockwise/ TMS

Supporting Systems Payroll Journal

Payments

PayrollPayment by Results(Bonus Payments)

P.B.R.

Bonus Data

TBD

Business Intelligence

Bank Statements

EFT

PVarious reporting

Fuel Management

Analysis

Laboratory From IPSAS

AP InvoicesInventory

Balances&GL

Suppliers

Ae.g. Water/Soil Sampling

LIMS

Manufacturing

Oracle

GL Journals

F

InventoryProcurement

(Biomass)

IPSASReporting

Oracle

Quality

PabLab

Inventory ProcurementAP Invoicing

Maximo

Biomass/ Haulage

AP Invoices

Inventory & PO Journals

Production Sheets

Other

Supplier

Inventory

AP Invoices

GL Journals

Invoice Data - AR Sampling Data

TBC

TBC

PTMPTP

RTR

Cheque/ EMT Export

OTC

TBD

CRM Application

RRPA

BiddingPerformance Data

InvoicingReporting

Market Operations

Mkt. IntelligenceFuel Trends

Weather

Management

AP Invoices

GL Balances

Direct DebitsIVR

Realex/ Payzone/

Bilpay

Interfaces

EiTrax(Document

Mgt.)

Supporting Systems

Direct DebitsEFT

RealexCash/ Cheques

Payment Methods

Accounts Receivable Domestic

Routeman

GL BalancesGL Balances

Cash/ Cheques

Other

Application Under Review

Routeman

Customer

Shipping Execution

Oracle

Inventory

Orders

Single Energy Market Systems

External Web Interface

SEMO

GKN Pallet Tracking

Other

P&O Logistics –Planning&Execution

Blade (P&O)

Pallet Shipments Interface File

AR Payments

TBC

RE F

Biomass Haulage

Data

AR Invoicing

IPSAS

Electric Ireland (Customer)

External

Power Purchase Ag.

Magma/ EDI/ File Transfer Process

New Commercial System – AR Commercial

*Elemos

Out of Scope

BNM UK

Navision

3rd Party Logistical

Production

From/To Customer

UK/Int.

Orders

Invoice

Sutton OIl

Codas

From/To Customer

Orders

Invoice

Retail - FuelsTo Financial & Sales Reporting

Retail - Hort

Blade

Ente

rpri

se

Re

po

rto

ng

Magma/ EDI/ File Transfer Process

TBD

Feeder Systems

BNM Wide

HCM

EDI Orders

Manual Orders

CustStmnt/

Dunning

AR Payments

AR Manual Invoice

Cash

EDI Remit

AR EDI

Invoice EDI Ack Order Mgt.

OracleNavision

Codas

A Anua PTP Procure to Pay

F Feedstock HCMHuman Capital Management

p Powergen OTC Order to Cash

G Group PTM Purchase to Make

RRResourceRecovery

RE – F Retail Fuels

RE – H RetailHorticulture


Applications Footprint 2013

The table to the left depicts the various IT applications currently in use across the organisation, outlining the different business units in which they are used.


Applications Footprint May 2017PROCESS Fuels Horticulture Biomass Feedstock AES / Resource Recovery

PowerGen Group Other

(UK) (WM)Inventory & ManufacturingFG/RM/Stores Inventory Management O O NAVIS SAGE O MAX PowerM OBIEE/BIOperations Planning TXTMRP TXTManufacturing O O NAVIS IPSAS IPSAS DISC

Purchase To PayPurchase Ordering O O NAVIS SAGE O O O O O OBIEE/BIReceiving / Raw Material Inventory O O NAVIS SAGE O O O O O OBIEE/BIInvoice Verification O O NAVIS SAGE O O O O O OBIEE/BIPayment Processing O O NAVIS SAGE O O O O O OBIEE/BIAccounts Payable O O NAVIS SAGE O O O O O OBIEE/BISupplier Master Data Management O O NAVIS SAGE O O O O O OBIEE/BIEmployee Expenses O O NAVIS SAGE O O O O O OBIEE/BI

Order To CashEDI Transmission & Translation O/Gentran O/Gentran EDI MAX O/GentranOrder Processing O O NAVIS SAGE OOrder Shipping - Logistics O O O WEB O

Invoice Generation O O NAVIS SAGE O O O ELEM ROUTE O O LIMS OBIEE/BI

Accounts Receivable O O NAVIS SAGE O O O ROUTE O O LIMS OBIEE/BI

Cash Management O O NAVIS SAGE O O O ROUTE O O OBIEE/BIOrder Tracking O O O WEB

Pallet Tracking PALLET

Customer Master data management O O O O O O ELEM ROUTE O OBIEE/BIPOD Storage & Retrieval O

Payroll O O Bur SAGE O O O TMS O O TMS OBIEE/BIHR O O O O O O O OBIEE/BI

Record to ReportFixed Assets O O O SAGE O O O O O OBIEE/BIGeneral Ledger O O O SAGE O O O O O OBIEE/BI

Asset Management MAXAsset

Minder PowerM

Operational Reports Automsoft

ProcurementContract and Catalogue management O O SAGE O O O O O OBIEE/BI

ReportingSales & Financial Reporting O O NAVIS SAGE O O O ELEM O O OBIEEOther - DB Forms etc O O SAGE

CRMContact/Management

O O


Finance Model

• Focus on developing Finance function with functional expertise

•Positions Finance at the heart of business with flexibility to meet evolving needs

•Business Partners valued as trusted advisors to the business for their knowledge and ability to provided targeted analysis

• Specialist technical teams recognised for their deep skills

•Transaction Processing providing efficient processes standardised with strong controls

FinancialLeadership Team

Balancing the roles of steward, strategist, operator and catalyst

Finance Shared Services

Consolidated

centres of

excellence

pooling skills in

areas such as:

Treasury

Procurement

Tax

Group Finance (and CoEs)

Responsible for:

• Setting accounting policy

• Setting planning and forecasting framework

• Supporting finance strategy setting and execution

• Setting and embedding controls framework

• Analysis of consolidated results.

Business Unit Finance Partners

BU Finance Partners providing

decision support and financial

analysis to BUs.

BU

Fin

ance

Par

tner

s

Risk

Finance Transaction Processing & Reporting/Business Intelligence

Future Finance Operating Model


Application/ Design Principles

Generic – All Process Areas

• Oracle ‘Out of the Box’ is the basis for Process Design

• Oracle eBS is primary system for all Finance related Process areas and will integrate with a small number of operational support systems in downstream BUs

• Designed Processes and Policies to be Standardised, Simplified and Automated across BnM

• Controls and Security to be built within Process and System Design

• Duplication of Finance Activity within/ across Process and Business Units to be eliminated with data entry occurring only once

• Single Chart of Accounts

• Workflow Approval/ Resolution Process maximised

• Maximise use of electronic communication methods

• Standard reporting for all process areasCopyright David Fox and Bord na Mona. Not for copying or distribution.


Record to Report

• Single Chart of Accounts aligned with Reporting requirements

• Integrated Single Month End Timetable across the business

• Day 5 Month End Close, including Consolidation & Reporting

• Standard Management Report Pack

• Automated sub ledger, Bank & GL reconciliations

• Maximise system automated journal entries (auto reversing, recurring)

• Automate management allocations

• Automate intercompany end to end processes

• One integrated Fixed Asset process across the companyCopyright David Fox and Bord na Mona. Not for copying or distribution.


Reporting

• One Business Intelligence (BI) tool to be used – enables consistent performance measurement and metrics usage across the Group

• Common Data Architecture & Governance within/ across systems to facilitate reporting accuracy

• Right information, at right level of detail, at right time

• KPI’s, Dashboards & Reports to be clean and simple to ensure underlying message conveyed

• Dynamic reporting to meet end use analytical needs

• Eliminate reliance on Excel for critical reportsCopyright David Fox and Bord na Mona. Not for copying or

distribution.

Reporting ‘Architecture’ 2013


Conceptual Target Reporting Architecture


Business Intelligence Competency Centre

• To avoid duplication of effort and to reinforce the concept of ‘one version of the truth’ a centralised BICC was established.

• This was also necessary as (it was realised that) ongoing deep understanding of the data and data structures and the BI tools would be required

• Key Activities:• Develop and maintain BnM reports catalogue available to all BUs

• Support Finance Business Partners in developing adhoc reports

• Support BUs to achieve self service reporting

• Develop BI system, reporting dashboards and align with BnM strategy

• Support BUs with annual and 5 year plans


Shared Service Lessons Learned

Title Lesson Learned Associated Actions on the FSS project

Stakeholder Engagement Proactive engagement between the FSS and the shared service customers is required at all employee levels throughout the project lifecycle. Don’t let this be something that is “done to you.” Working with the change management function is key to this.

• Communications Approach and Plan - provide key details on how we will engage with the business units throughout the project.

• Business Coordinators - Business Coordinators identified to liaise with the Change Manager/ Deployment Lead to exchange key information relating to the project.

Change Impact Assessment Important that a formal change impact assessment is carried out so that all levels of the business can understand and plan for (a) input required during project design and testing (b) the immediate impact of the shared service go-live on business operations and (c) the impact of the bedding in period that will be required before being able to revert to

“business as usual”

• High level change impact assessments completed• Detailed impact assessments carried out to enable a change action plan to be

developed

Feedback Loop to Project Need to ensure that the business are providing feedback to the project on their readiness for go-live as well as risks / issues from their perspective. There also needs to be a reporting loop during the stabilisation phase.

• Business Readiness plan and approach developed• Deployment Lead role established for each BUto enable feedback to be collated and

actioned by the project team

Standardised Processes Willingness to move to standardised processes is key to long term success for both business user and the shared service. Short-term pain here is worth the effort.

• Standardised process design was a fundamental feature of the process design work and also in the functional designs

• The end user training plan is designed to ensure these standardised processes are embedded and communicated to the BU’s

Data Quality Business users have responsibility for the quality of the data that is migrated from the old systems to the new consolidated system. Important that this is understood and that necessary actions are taken to test and cleanse the data.

• The role of the Data Migration lead was key working with the business units as a key liaison, ensuring all data to be transitioned is of the required quality.

• Major issues emerged in the quality of supplier data and a detailed plan to remedy this was executed


Title Lesson Learned Associated Actions on the FSS project

Co-location: Within Bord na Móna the business and the project team were initially not co-located. Therefore all of the above items require more conscious effort and formalised documentation. Otherwise there is the ever-present risk that one side “loses sight” of the other.

This risk is mitigated through the delivery of:• Communication plan and Deployment Lead role activities will ensure increased

visibility of project in each BU• Knowledge Transfer - Knowledge transfer will ensure that no “Tacit” knowledge is

lost from the transition of finance activities to the FSS.

Leadership Business unit sponsors needed to be seen as promoting and championing the initiative and highlighting the benefits it will bring to their unit.

Engaging leadership is an important feature in the Communications Approach and Plan outlined. Ask back to the business was :-• Take a proactive approach in communicating with their teams• Promoting the FSS as frequently as possible • Encouraging teams to engage with the project• Feedback to project team on issues raised/ ways to improve interactions between

the teams • Reinforce standardisation and benefits constantly

Common Expectations Important that both the shared service and the business units have a common understanding of what will be operationally delivered by the shared service and, in turn, what the shared service requires of the business units.

Service Partnership Agreements(SPA) played a critical role, highlighting the requirements both the FSS and the business units have on each other.

Shared Service Lessons Learned


The Good News

• Apart from a three-month slippage of one phase, the overall programme was delivered on time and on budget

• Design principles were largely delivered

• After initial push-back, resistance proved futile and BU management and staff rowed in behind the programme

• Business case benefits slow to be realised but are happening with a significant time lag

• Better transparency of operations and financial performance had informed many tactical and strategic business decisions, especially in 2017.

• Business and IT teams have time to breathe after a hectic 3.5 years !


The not-so-good news• Business Unit support was taken for granted.

• Ongoing support costs, especially manpower, was significantly underestimated. The Cost of Ownership was, and is likely to remain, much higher than anticipated

• Very difficult to recruit/retain key technical staff on public sector salaries

• Not enough effort went into communications. You cannot over-communicate a programme of this scale.

• Negligible support from product vendor

• In general quality of data was worse, in some cases a lot worse, than expected• There were significant inconsistencies in data held in different systems• Gaps in data had habitually been compensated by local knowledge and/or spreadsheet

workarounds created to compensate

• Some out-of-the-box processes of the ERP solution complex and cumbersome

• BI proved to be very unforgiving of data quality gaps


Concluding Remarks• Put major effort into upfront planning. Leave nothing to chance or open to

interpretation. Fail to plan, plan to fail applies.• Design principles, programme governance, roles and responsibilities defined at the outset and

stick to them. • Governance at all levels is painful and essential. Committed programme sponsor, professional

programme management, programme deliverables built in to management objectives • Huge effort into RACI and RICEFW definitions upfront and built into contracts. This was a

living, breathing essential support to the programme team because …….• The Systems Integrator is not your friend

• ‘Out of the Box’ was the key mantra espoused by all from CEO down• One set of target processes for all BUs. No special cases.

• Any deviations from this had to be approved by Steering and alterations funded outside the project budget only a handful became necessary surprisingly !

• Communicate, communicate , communicate !!!• Data can kill you• BI is the killer app in ERP. It can be done. It’s not easy. It’s complex and painful.Copyright David Fox and Bord na Mona. Not for copying or

distribution.

Questions


Appendix

Bord na MonaCentral Support Service

Phase 1

IT HR

Facilities FSSC


• I need help

• Can’t log into Oracle

• Light bulb is not working

• I didn’t get my expense

• I need to Know

• How Do I

• Am I entitled to

• What’s the procedure for

Central Support Service

Schedule a task – Review

Daily, Weekly, Monthly

Daily checks

Schedule Maintenance

Co-ordinate & link multiple activities

IT Support

HR

FSS

Facilities


Central Support Service ModelExternal Sources

One Phone Number

Service Desk

Application

Knowledgbase/FAQ Log a Call

2nd

Level Support

1st Level Support

3rd

Level Support

Customer can Query

FAQ/Knowledgebase

Interaction between

Customer and Support

Cu

sto

mer

Qu

ery

O

wn

Calls

Interaction between

Custom

er and Service Desk

Analyst

Or log a call

Resolved

Submit to Service Desk ApplicationSubmit to the Service Desk Application

Assign to Queue

Third Party (Version 1)

Vendor (Oracle)

Central Support System


FSS Business Case Benefits

Focus on Core Business – Business unit management freed up to focus on market and customer activities

Scalability – Organic growth and acquisitions or disinvestments will be more easily incorporated

Greater leverage of finance resources

Flexibility/quickness to respond to market changes

Improvement in levels of investment in working capital

Ease of implementing new systems and processes

Ability to make ‘value add’ IT investments

Basis for on-going process optimisation and further evolution of the operating model

OperationalImproved data quality, transparency and

speed of dissemination of information

Standardised finance processes & systems

Improved control environment & embedded controls in Oracle leading to a systematic approach to internal controls

Enhanced reputation with suppliers /customers

Better working environment for staff

Up-skilling and development of employees

Ease of succession planning and increased opportunities within finance organisation

Improved communications, teamwork and strengthens cross-functional co-operation

Service Quality

People


bord na móna financial shared services programme 2013 … conference 2017/shared services... ·...

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