Enabling Business Transformation with DRM & FDMEE

CON9537 - Oracle Open Customers Present DRM

Enabling Business Transformation with DRM & FDMEEA M&A Customer Success Story at WestRock

Moscone West

Oct 26, 2015

Business Analytics Solutions Provider Using Oracle EPM and BI Technologies

Tim WalshDirector of Financial Systems

[email protected]

IntroductionsBusiness BackgroundEPM Solution OverviewImplementation ApproachImplementation ResultsClosing and Q&A

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Agenda

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About WestRock

Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/2015

Objective – 81 Sources in 100 Days

Produce Consolidated Financial Statements generated by JDEReport Profits by Business Unit in JDE & HyperionReport Balance Sheet by Legal Entity in JDE & Hyperion

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Goal

Have all general ledger summary level data (balance sheet and business unit revenue/expense) in JDE and Hyperion for the July 31, 2015 financial close.

Multiple Challenges to Overcome

Organizations needed to be integrated within 100 days (81 sources to 1 Financial System)

Prior mapping processes were time consuming and required rigid one-to-one maps from source to target using Excel spreadsheets

Methods and tools utilized in prior mappings differed – skills were not transferable

Key validations were required prior to loading of mapped data to the JDE GL to reduce significant delays in the closing process

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But What Path To Take?

Option 1 – Perform High Level Consolidations and Focus on External Reporting Only

Option 2 – Ensure Consistency in Performance Management Reporting at the Plant Level so the business can be properly managed

Senior Leadership Weighed in and Provided Critical DirectionSteve Meadows, CAO – “Our internal business partners rely on Hyperion to support their performance management reporting needs around Divisional and Plant Profitability. We have a mandate to provide this same level of reporting capability, and must strive to do so, in the new organizational structure, until we know that we can not.”

With support from Key Leadership, a dedicated combined finance team, and the DRM-FDMEE accelerators from Edgewater Ranzal, Option 2 was approved as the way forward.

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The Project Mandate

Financial reports are accurate and complete

Consolidations are complete in time for the July 31st close and subsequent quarterly filings, preferable in a single consolidations tool

Management Reporting processes remain in place until transition is planned and implemented

For day 1, as little upstream processes as possible are changed, and full transitions are considered only after day 1

As much detail as possible is put into the financial system

A tool is used to facilitate the mapping process in a way that can be completed and tested before the deadline and can be efficiently maintained

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Financial Systems Overview at WestRock

Hyperion PlanningCubes

• Operational• Financial• Capital• Std Cost• Sales• Freight• Rolling Forecast

• Salary• Expense

Multiple Billing

Systems

JDEdwardsG/L – A/R – A/P

Purchasing / Job CostFixed Assets / EPAM

Legacy RockTenn

Multiple Purchasing

Systems

PeopleSoftPayroll

SAP 1

SAP 2

SAP Templates

Non SAP Templates

45 Sources, 34% of Revenue

Corporate Entries

18 Sources, No Revenue

SAP BW2 Systems plus 16 templates

66% of revenue

Financial Systems Overview at WestRock

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SAP BCS 81 Sources

Legacy MWV

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Use Edgewater Ranzal COA Approach as Accelerator for M&A Implementation

Hyperion Planning

Cubes• Operational• Financial• Capital• Std Cost• Sales• Freight• Rolling Forecast

• Salary• Expense

JDEdwardsG/L – A/R – A/P

Purchasing / Job CostFixed Assets / EPAM

SAP 1

SAP 2

SAP Templates

Non SAP Templates

45 Sources, 34% of Revenue

Corporate Entries

18 Sources, No Revenue

SAP BW2 Systems plus 16 templates

66% of revenue

?????

Hyperion

FDM Map execution

DRM Hierarchy & Map

Management

ReconCube

RanzalCOA

Framework

Results & Benefits Realized

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Summary of Project Results

Delivered an integrated FDMEE/DRM/Essbase mapping platform to map disparate

sources into one common JDE GL

Architected and implemented solution within 100 days and under budget

Effectively transferred knowledge ensuring that functional admins were able to update

and run the model autonomously

Benefits Realized

Developed framework for quickly integrating future companies into the organization

Standardized mapping processes regardless of source

Increased traceability, versioning, audit, management and control within the mapping process

Pre-validation of data prior to loading into the GL leading to less voiding and reloading of

batches

Proposed Timeline

Mar 15th: Project Kick Off.

April 30th: Requirements & Conceptual Design Phase Complete.

May 11th

Initial mapping within DRM complete within Edgewater Ranzal Lab

One source mapped, loaded, and viewable by Corporate Finance within Essbase

May 29th: Initial Build complete

FDM & DRM

JDE load file Process

Data extraction process from source systems

Software Upgrade of Dev & Test Environment to 11.1.2.3.

Month of June: Testing & Cut Over. Complete Upgrade.

End-to-End System Integration testing

Acceptance Testing w/ preliminary training

Production Cut-Over 12

Team Composition

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Executive SponsorCAO

GovernanceProject Manager

DRM FDM Essbase JDEdwards

(1) Consultant

(1) Manager

(11) COA Maps Business

(1) Consultant (1) Manager (1) Manager

EngagementManager

(1) IntegrationSpecialist

Steering CommitteeAccounting, Tax, Audit, IT

Key: Blue = WestRockGreen = Consulting

What’s Next? Future Phases

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Feed of DRM master data back to JDE

DRG Workflow to support new JDE master data request process

Feed of hierarchies from DRM

Custom Audit/transaction history packaged standalone

Out of the box audit queries to be utilized

Future M&A “Information Factory”

Closing and Q&A

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Tim WalshDirector of Financial Systems

[email protected]