Fall 2014 Deloitte Consulting Project

Project Leaders: Neil Jones, Raina Kim

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The Team

Lucrecia Siman

Class of 2017Management Consulting

Political Science

Kyle McHughClass of 2017

FinanceEconomics

Monica Barboza

Class of 2017Management Consulting

Portuguese

3

The Team

Tiphaine Delepine

Class of 2017Finance

Elizabeth Principe

Class of 2017Finance

Applied Math

Lake Heckaman

Class of 2017Finance

Mathematics

Presentation Outline

Solution

Implementation

Benefits

Conclusion

Solving Atlas’s ERP issues will position Atlas for future success

Atlas Energy (Oracle)

Alberta Oil(SAP)

Our solution

Deloitte’s Task

Standardize business processesEnhance business continuity

Minimize change impacts

Increase operational efficienciesRetain top talent

Cut costs

Employees : 7,000

Annual revenue : $9 billion

Region: Canada

Alberta Oil

Employees : 12,000

Annual revenue : $13 billion

Region: Canada, US Eastern Europe and North Africa

Atlas Energy Inc

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Potential Solutions

Translate Alberta to Oracle

Translate Atlas to SAP

Alternative Option

2009 2010 20110%

10%

20%

30%

40%

50%

60%

27%32%

48%

Buyers considering a two-tier strategy

Trend towards two-tier ERP

According to Constellation Research, the amount of buyers considering two-tier ERP strategies is increasing consistently

Two-tier ERP strategies have been gaining popularity since the 2008 recession

Ventana Research found that 2/3 of companies with over 1000 employees use ERP systems from more than one vendor

Our solution: a two-tier ERP

Maintain Tier 1 ERP system at corporate level and continue operating multiple Tier 2 ERPs at the secondary level. This simplifies future acquisitions

and sales of divisions.

Oracle Hyperion Financial Management

Atlas Energy

(Updated Oracle)

Alberta (SAP)

Future Acquisitions

Future Acquisitions

External reporting

Senior Management reporting

Establish Oracle Hyperion Financial Management System

Update Oracle base system in Atlas

Map data from SAP to Oracle

How we will implement our solution

10Oracle.com

Use comprehensive suite to merge Oracle and SAP repositories

Oracle Hyperion Financial

Management Close Suite

Data Relationship Management

Administration tool Patches

Hyperion Disclosure

Management

xBRL

11

Benefits of a two-tiered solution

Minimal Disruption

Human Resources

Lower overall costs

Mergers & Acquisition

s

Trends in Global

Economy

Gartner Research; http://na.sage.com/~/media/category/sna/assets/lp/sagebusinessknows/Documents/resources/Sage_ERP_Two_Tier_Strategy.pdf; http://www.erpsoftwareblog.com/; http://blog.softwareinsider.org

Two-tier increases efficiency and savings

Minimal Disruption

Training only for high-level

management

Business operations

continue and improve

Cost Savings

Minimal training cost

Lower purchase price

No lost revenue

Gartner Research; http://na.sage.com/~/media/category/sna/assets/lp/sagebusinessknows/Documents/resources/Sage_ERP_Two_Tier_Strategy.pdf; http://www.erpsoftwareblog.com/; http://blog.softwareinsider.org

Our solution will streamline future M&A activities

Lower cost

Shorter time

Ease of acquisition

33% reduction in implementation costs50% decrease in full implementation time

Large-scale ERP systems cannot keep pace with a changing environment

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Global economic trends will yield increasing revenue streams for Atlas

Canadian Dollar

Weakens

GDP’s increase/stay the same

Foreign Countries

Import Canadian Oil

Actual Q4/14 Q1/15 Q2/15 Q3/15

-2

0

2

4

6

8

United States

Canada

Euro Area

Japan

ChinaImports-

bbl/day (mil-lions)

0

6

12United States

China

Japan

Germany

Netherlands

Canada

There will be more revenue at stake, so more is saved when business operations are not halted

Two-tier helps maintain culture and retain top talent

Keep HR processes in two-tier level• Retain Atlas’ top

talent• Take care of local

issues• Maintain unique

culture of companies

http://www.plex.com/about-plex/newsroom/blogs/meeting-the-challenge-of-future-growth-using-two-tier-erp-strate.html

Two-tiered solution addresses concerns

• Implementing a two-tier ERP system is less costly than converting all divisions to a single system

• The unique culture of each division is not compromised and local issues are easily resolved

• Standardizing top management while divisions remain separate facilitates future M&As

• Low-level operations are not interrupted while high-level management is in training

Disruptions are

avoided M&A is prevalent in the oil industry

Costs are minimize

dHR remains division-specific

A two-tier ERP system creates standardization that promotes growth while facilitating interaction between divisions.

Recap

Enhance business continuity

Increase operationa

l Efficiencies

Minimize cost

Minimize change impacts

Retain top talent

QUESTIONS?