questdirect.org total cost of ownership for peoplesoft applications panel discussion session 101820
DESCRIPTION
QuestDirect.org Introductions Carmen Mazza –Manager of HRIS and Payroll –Securian Financial Group – Paul Brand –HRIS Technology Manager –Wells Fargo Bank –TRANSCRIPT
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Total Cost of Ownership for PeopleSoft Applications
Panel DiscussionSession 101820
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Agenda
Introductions 5
What is Total Cost of Ownership (TCO)? 5
Why is TCO important? 5
How do we calculate TCO? 25
Open discussion 10
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Introductions• Carmen Mazza
– Manager of HRIS and Payroll– Securian Financial Group– [email protected]– 651.665.3659
• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– [email protected]– 612.316.1518
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Wells Fargo is…• #1 in deposits among US banks.• #1 in market capitalization among US banks.• #4 in assets among US banks.• #1 in mortgage origination and servicing.• #1 in philanthropy among all US companies.• #12 in revenue among all US companies.
4
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Wells Fargo’s Environment• Implemented PeopleSoft HCM in 1993 (v. 2.0)• PeopleSoft release 8.9, PeopleTools: 8.52
– HR, NA Payroll, Ben Admin– Heavy-duty employee self-service– Manager self-service (custom) – Talent Acquisition Manager and Candidate Gateway
• Employees on Payroll (NA): 277,000• Heavily customized for compliance and volumes
5
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Securian Financial Group is…• Subsidiary of Minnesota Mutual
Companies• Founded in 1880 in St. Paul • Provides Financial Services including
– $343 billion of life insurance in force – $20 billion in assets under management
6
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Securian’s Environment• Implemented PeopleSoft in 1998• PeopleSoft release 9.1, PeopleTools: 8.50
– HR, NA Payroll, Base Benefits & Ben Admin– Employee self-service - eBenefits, eProfile, ePay, – Manager self-service (custom) – Talent Acquisition Manager and Candidate Gateway
• Employees on Payroll: 3,700• Moderate customizations
7
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What is TCO?• TCO represents the organization’s
complete financial exposure• Typically expressed in dollars per unit,
such as employee.
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Why is TCO important?• Options comparison• Benchmarking• Evaluating impact of changes over time
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How do we calculate TCO?• Units• Inputs• Denominators• Value for cost
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Wells Fargo’s TCO Formula: HCMLabor + Mainframe + Middle Tier + Licensing
Active employees (ALP)
• Labor = Wages + bonus + training + load (Salary * 0.29) for app and support teams.
• Mainframe Cost = allocation for all MF data center costs, including operations staff, electricity, MF utility licensing…
• Middle Tier = HW/SW for app, web, and load balancing. • Licensing = maintenance only. License fully depreciated.
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Wells Fargo’s TCO Formula: HCMLabor + Mainframe + Middle Tier + Licensing
Active employees (ALP)
$9.2MM + Mainframe + Middle Tier + Licensing277,000 ALP
=$65.22 per EE per year
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Securian’sTCO Formula: HCMSalaries + Direct Expenses + Indirect Allocations + IT Services
# of W2s
• Salaries = HRIS & Payroll processing functions. • Direct = Software maint., consulting, travel, misc. • Indirect = Rent, Benefits, misc. overhead• IT Services = app development, devices, phones,
processing & storage.
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Securian’s TCO numbers
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What about value? • What does your organization get for its money?
– Quality of service– Scope of service
• Functions supported• # of interfaces
– Cost & risk avoidance• Lean function staffing
– Strategic Considerations• Valuable opportunities• Distraction from mission
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APRIL 7-11, 2014Sands Expo and Convention CenterLas Vegas, Nevada
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TCO Session 101820• Carmen Mazza
– Manager of HRIS and Payroll– Securian Financial Group– [email protected]– 651.665.3659
• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– [email protected]– 612.316.1518