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GS/OAS ERP ModernizationOASCOREThe Path Forward
Presented by
Charles H. Grover, Secretary of Administration and Finance & Andrew Vanjani, ERP Executive Program Manager
May 21, 2020
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➢ Executive Summary
➢ Background
➢ Key Developments
➢ Current Situation
➢ Path Forward
➢ Option 1 – “The Home Stretch”
➢ Option 2 – “A Phased Approach”
➢ Option 3 – “Course Correction/Hybrid Approach”
Table of Contents
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Executive Summary
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The purpose of this presentation is to outline the Path Forward for the OASCORE Modernization project and
to identify potential options to allow OAS Member States to make a final decision.
It is critical that we find a path forward to modernize the current ERP legacy system due to the current risk we
face, which has been identified in the last few financial audits, due to the end-of-life support from Oracle as
well as from Microsoft, which provides the current infrastructure.
After a thorough assessment of the As-Is state, the ongoing modernization effort, the project schedule delays
and cost slippage, the IG audit report and recommendations, the current Pandemic situation and what the To-
Be state would be if we continue down the current path; the following 3 potential options have been identified:
Option 1 – “Home Stretch”: define additional funds required to continue the project as planned,
Go Live with full functionality, and migrate off the current EBS system as soon as possible;
Option 2 – “Phased Approach”: divide the current project scope into 2 phases in order to provide
the OAS with partial functionality in a shorter timeframe and reduce any additional funds required
to the absolute minimum;
Option 3 – “Course Correction/Hybrid Approach”: take lessons learned and recommendations
from the IG audit report and leverage new PM’s experience to identify a best of breed solution to
transform the OAS into a modern and digital organization while implementing an integrated,
scalable and secured ERP solution.
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Executive Summary
4
Original
Budget
Additional
Request
Total Project
Cost
Additional
Months
1 Year
Operating
Costs *
5 Year
Operating
Costs*
Nov 2019
Request$$5,158,528 $3,100,000 $8,258,528 9 Months 800k-900k 4M-4.5M
Option 1 $5,158,528 $1,741,260 $6,899,78811- 14
Months800k-900k 4M-4.5M
Option 2 $5,158,528 $2,072,540 $7,231,06816- 19
Months800k-900k 4M-4.5M
Option 3 $5,158,528$1,000,000 -
$1,500,000$6,158,528 -
$6,658,528**
9-11
Months400k-500k 2M-2.5M
*Note: Operating Costs are estimated and based on production licenses cost, additional integrations and DOITS support (people and infrastructure)
**Note: Range is provided with best and worse case scenario due to only 2 weeks of assessment performed for option 3.
The table below provides a high-level summary of all options and compares it to the additional $3.1 million
requested to the CAAP in November 2019:
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Executive Summary
5
*Note: Operating Costs are estimated and based on product licenses cost, additional integrations and DOITS support (people and infrastructure)
Operating
Costs *
Operating
Costs *
Annual Cost
Avoidance
Annual Cost
Avoidance
Annual Cost
Avoidance
Annual Cost
Avoidance
Annual Cost
Avoidance
1-Year 5-YearOffice
365 E3
Dynamics
365
Strategic
Performance
Security
SSO/MFA
CIDH - Case
Management
Option 1 800k-900k 4M-4.5M N/A N/A N/A N/A N/A
Option 2 800k-900k 4M-4.5M N/A N/A N/A N/A N/A
Option 3 400k-500k 2M-2.5M$20,000-$40,000
(10%-20%)(2%-4%) $10,000 $50,000 – $80,000
$48,000
(80%)
The table below describes a few potential savings/cost avoidance that the OAS would realize in future IT
investments if option 3 is chosen.
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BackgroundOn November 2019, the Fifth Report of Progress of the ERP
project was presented to the members of the Committee on
Administrative and Budgetary Affairs (CAAP), highlighting a
series of challenges during the project lifecycle that impacted
its health, resulting in schedule delays and a budget overrun.
The report also outlined a proposed solution to extend the
project an additional 9 months (figure to the right) and an
increase of 3.1 million dollars (table below) in additional funds
to successfully bring the project to fruition. While the
abovementioned proposed solution was initially presented in
late 2019, no formal decision was made and the project was
allowed to continue until the end of March 31st,2020 pending
the IG audit report revision.
Sign-Off Systems Integration
Testing (SIT)
June
29, 2020
ADDITIONAL FUNDS PROPOSED IN 2019 COST
9- MONTH EXTENSION CREOAL SERVICES $ 2,000,000
CREOAL TRAVEL $ 234,000
CRP RESOURCE POOL (9-MONTHS OF CRP POOL TIME) $ 750,000
LEGACY ORACLE EBS 2020 LICENSE RENEWAL $ 155,000
TOTAL ADDITIONAL FUNDS PROPOSED $ 3,139,150
ERP Fifth Report of Progress
presented to CAAP
Nov
2019
Sign-Off CRP3Feb 24,
2020
Sign-Off User Accessibility
Testing (UAT)
Sept 14,
2020
Jan 1,
2021Go Live
NOV 2019 PROPOSED SCHEDULE
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7
Key Developments
It is important to note a few key developments that have occurred during the lifecycle of the project since its inception on October 12th, 2018;
● On November 2019, members of the CAAP requested the IG to perform an assessment of the project regarding 7 specific questions and to report findings and recommendations by March 2020;
● On December 10th, 2019, the ERP Executive role was temporarily filled by the Secretary of Administration and Finance (SAF), Mr. Charles Grover;
● On February 24, 2020, the SAF hired a dedicated ERP Executive Program Manager;
● On April 3rd, 2020, the IG audit report was presented to Secretary General’s advisors, the OIG and the SAF. One important finding that resulted from the IG audit report was the unrealistic new Go Live date of January 1st, 2021 considering some of the gaps and potential recommendations identified in the report;
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Current Situation
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As of May 2020, the ERP Modernization project has been paused pending decision of the CAAP on the Path Forward. Additional updates follow:
● Covid-19: This pandemic has impacted the schedule and cost of the project. Stakeholders supporting the project have been adapting to the “new normal” and currently working to support the day-to-day operations.
● Expired - Creoal Contract: The contract with Creoal expired on April 30th. A 2-Month No-Cost Extension was signed on May 13th, ,2020 to give the OAS time to decide the Path Forward. All liquidating damages required to terminate the contract were agreed upon and settled accordingly.
● Expired - Oracle Contract: The base contract expired on March 31st, and the next option year in the amount of $483,000 was not exercised due to uncertainty with Covid-19 and pending decision of the CAAP on Path Forward.
● Technology Fund: Remaining funds from the 5.1M initial budget: $2,044,000
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Current Situation – Cont’d
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PROJECT FINANCIALS
Baseline BudgetPaid as of
May 1st, 2020Balance
% Budget
Spent
Systems Integration (Creoal) $ 3,849,680.00 $ 1,924,841.00 $ 1,924,839.00 50%
Travel & Expenses (Creoal) $ 490,000.00 $ 376,416.52 $ 113,583.48 77%
Change Management (Clearing) $ 105,000.00 $ 105,000.00 $ 0 100%
Oracle Cloud Licenses (OASCORE) $ 705,588.24 $ 699,738.44 $ 5,441.59 99%
FXLoader $ 8,260.00 $ 8,260.00 $ 0 100%
$ 5,158,528.24 $ 3,114,255.96 $ 2,044,272.04 60%
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Path Forward
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Option 1 – The Home Stretch
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Scope Assumptions Critical Path – 9-12 Months
• Original Scope from Baseline
• Human Capital Management
(HCM)
• Payroll Costing extension
• Payroll Integrations (TRS, TXF,
eFTPS)
• Financials
• Fixed Assets extension
• P-Card extension
• Wire Template
• Additional Test Cycle (SIT -
Systems Integration Test)
• Additional Data Conversions to
support mid-year go-live
• Payroll, absence and benefit
balance conversion
• Detailed transaction conversion
for GL and Projects
• More complex budget conversion
• Extended Production Support
• Project delays due to COVID-19 (1
month)
• SIT delayed (1 month)
• OAS engages conversion consultant to
start by 7/1/2020
• All pending decisions are complete by
7/1/2020
• All submitted deliverables are approved
by 71/2020
• DFS blackout period mid-Nov thru mid-
Jan
• Identified bugs and changes during SIT
will be resolved before UAT
• DHR, DPO, DFS, DGS resources are
available to support the testing and
training as well as complete all project
tasks (minimum 50%)
• Parallel payroll period (2 month
duration)
• Deliverables/decisions are dispositioned
within 5 days of submission
• All JIRA tickets / Oracle SR’s resolved
within specified timeframes
• Assumes Technology Fund balance
remains with 2M
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Option 1 –Home Stretch - Timeline
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Systems Integration Testing (SIT)Sept 21,
2020
User Accessibility Testing (UAT)Dec 19,
2020
Data Conversion and
Integrations
July 1,
2020
User TrainingFeb 21,
2020
May 31,
2021Go Live
Parallel PayrollMar 02,
2021
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Option 1 – Home Stretch - Additional Costs
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TOTAL PROPOSED COST - MAY 2020
Items Additional Costs
Implementation Cost (Additional)* $400,000
Travel & Expenses **
+ 2 Months - Post Production $ 295,000
Oracle Licenses $ 483,000
Data Conversion Consultant $67,000
Temp Resources to Backfill SAF $200,000
Executive Program Manager $108,000
Change Management Consultant $90,000
User Acceptance Training (UAT) Consultant $ 90,000
FXLoader (Foreign Exchange Rate Solution for Oracle ) $8,260
Total Additional Funds $ 1,741,260
* In addition to the 5.1M initially budgeted
** Note: Additional travel costs should not be necessary – current travel budget estimated to last until Jun 2021
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Option 1 – Benefits and Risks
• Full functionality/scope goes live together at same time
• Provide post go-live support (3 months full support)
• Should be able to mitigate additional travel cost and keep within existing budget despite significant timeframe changes
• Eliminate current EBS availability risk
Risks
• Inability to identify qualified temp resources
to cover SAF support during implementation
• COVID-19 may impact OAS users ability to
support the project, especially the early
deliverables and milestones
• Oracle may increase rates and delete all
configurations made so far on their platform
if no-contract signed by June 30
• Only one (1) test cycle to test/validate the
conversion process before User Acceptance
Testing
• Increased Data Conversion Scope to support
mid-year go-live
• Significant amount of conversion and
integration/extension development remains
• OAS Infrastructure backbone may not be
able to support new traffic to the cloud since
we currently send traffic for all ERP
transaction to our internal data center.
Benefits
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Option 2 – A Phased Approach
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Scope Assumptions Critical Path – 9 months
• Go live with MVP (Minimal Value
Product)
• HCM Scope including Payroll from
SOW001
• Payroll - Project Costing
extension
• Payroll Integrations (TRS, TXF,
eFTPS)
• Additional Test Cycle (SIT)
• Design interim Payroll Project
Costing Extension (until full ERP
is live)
• Develop interim integrations with
EBS (until full ERP is live)
• Transfer Payroll Costs to General
Ledger (OASCORE → OASES)
• Transfer Project Payroll Costs to
Projects (OASCORE → OASES)
• MVP - Extended production
support to 3 months
• ERP limit scope- HCM/Payroll only
• Project delays due to COVID-19 (1
months)
• SIT delayed due to data conversion
issues (3 weeks)
• Parallel payroll period (3-month
duration)
• OAS engages conversion consultant to
start by 5/1/2020
• DHR/ DFS-Payroll resources available
to support production (EBS), parallel
testing and user training concurrently
during the mid-Nov thru Mid-Jan
blackout period.
• All JIRA tickets / Oracle SR’s resolved
within specified timeframes
• Identified bugs and changes during SIT
will be resolved before UAT
• Assumes Technology Fund balance
remains with 2M
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Option 2 - Phase 1 – Timeline–HCM/Payroll Only
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Data Conversion and
Integrations
Jul 1,
2020
Systems Integration Testing (SIT)Sep 14,
2020
User TrainingJan 16,
2021
User Accessibility Testing (UAT)Nov 14,
2020
Mar 28,
2021Go Live
Parallel PayrollFeb 1,
2020
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Option 2 – Phase 1 / Additional Costs – HCM/Payroll Only
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TOTAL PROPOSED COST - MAY 2020
Items Additional Costs
Implementation Cost (Credit) ($550,000)
Travel & Expenses *
+ 2 Months - Post Production $ 175,000
Oracle Licenses $ 350,000
Data Conversion Consultant $30,000
Temp Resources to Backfill SAF $50,000
Executive Program Manager $84,000
Change Management Consultant $70,000
User Acceptance Training (UAT) Consultant $ 70,000
FXLoader (Foreign Exchange Rate Solution for Oracle ) $8,260
Total Additional Funds $ 287,260
* Note: Additional travel costs should not be necessary – current travel budget estimated to last until Jun 2021
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Scope Assumptions Critical Path – 10 Months
• Financials, Procurement and
Grants / Project Portfolio Scope
from original baseline
• Fixed Assets extension
• P-Card extension
• Wire Template
• Additional Test Cycles (SIT &
UAT)
• Modify Payroll Project Costing
Ext. for OASCORE
• Includes DOIT’s Toolkit to support
the following integrations
• OTS (OAS Travel Solution)
• CCOSTS (Common Costs)
• FMS (Fellowship Management
System)
• RBCS (Results Based
Contracting System)?
• Go Live extended production
support to 3 months
•
• ERP Scope– Financials, Procurement,
and Grants/Projects
• COVID-19 related delays have been
resolved
• SIT delayed due to data conversion
issues (1 month)
• OAS and Creoal project teams are
ready and available to begin work on
1/2/2021
• DFS blackout period min-Nov thru
min-Jan
• OAS has completed data cleanup in
EBS prior to Phase 2
• All JIRA tickets / Oracle SR’s resolved
within specified timeframes
• Identified bugs and changes during
SIT will be resolved before UAT
• Assumes Technology Fund balance
remains with 2M
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Option 2 – Phase 2 – Phased Approach
18
Data Conversion and
Integrations
Jan 2,
2021
Systems Integration Testing (SIT)Mar 15,
2021
User TrainingSep 13,
2021
User Accessibility Testing (UAT)Jun 21,
2021
Go LiveNov 01,
2021
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19
Option 2 – Phase 2 / Additional Costs – Complete ERP
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TOTAL PROPOSED COST - MAY 2020
Items Additional Costs
Implementation Cost (Additional)* $980,000
Travel & Expenses $133,000
+ 2 Months - Post Production $ 285,000
Oracle Licenses $ 133,000*
Data Conversion Consultant $40,000
Temp Resources to Backfill SAF $150,000
Executive Program Manager $96,000
Change Management Consultant $80,000
User Acceptance Training (UAT) Consultant $ 80,000
FXLoader (Foreign Exchange Rate Solution for Oracle ) $8,260
Total Additional Funds $ 1,985,260
* In addition to the 5.1M initially budgeted
** Full Oracle Licenses is $483,000. Phase 1 licenses costs 350k, so Phase 2 will cost $133 for a total of $483k
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20
Option 2 – Phase 1 +Phase 2 / Total Additional Costs
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TOTAL PROPOSED COST - MAY 2020
Items Additional Costs
Implementation Cost (Additional)* $980,000 – (550,000) = $430,000
Travel & Expenses $133,000
+ 2 Months - Post Production $ 285,000+175,000=460,000
Oracle Licenses $ 133,000+350,000=483,000
Data Conversion Consultant $40,000+30,000=70,000
Temp Resources to Backfill SAF $50,000+$150,00=$200,000
Executive Program Manager $96,000+84,000=180,000
Change Management Consultant $80,000+70,000=150,000
User Acceptance Training (UAT) Consultant $ 80,000+70,000=150,000
FXLoader (Foreign Exchange Rate Solution for Oracle ) $8,260+$8,260= $16,520
Total Additional Funds $ 2,272,520
* In addition to the 5.1M initially budgeted
** Full Oracle Licenses is $483,000. Phase 1 licenses costs 350k, so Phase 2 will cost $133 for a total of $483k
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Option 2 – Benefits and Risks
• If only Phase 1 chose, additional funds
required are minimum
• Option 2 Phase 1 provides value faster to a
subset of the business, therefore faster ROI;
• Start with first payroll cycle of year 2021 in
OASCORE
• Provide more time for incremental
enhancements, and adoption of functionality
• Go live at the beginning on 1st Quarter vs 4th
Quarter
• There is no need to continue with Phase 2, so
a better platform can be identified for
additional scope
Risks
• Current EBS risk remains until Phase 2 is completed;
• Oracle may increase rates and delete all configurations
made so far on their platform if no-contract signed by June
30
• Inability to identify qualified temp resources to cover SAF
support during implementation
• COVID-19 may impact OAS users ability to support the
project, especially the early deliv. and milestones
• Increased Conversion Scope for mid-year go-live
• Only one (1) test cycle to test/validate the conversion
process before Acceptance Testing
• Only one(1) test cycle to test/validate the conversion
process before Acceptance Testing
• Significant amount of conversion and
integration/extension development remains
• OASCORE and OASES will have different COAs
• Existing project Resources may not be available (and may
need to be replaced) for future phases
• Need to redefine Data Conversion scope due to a Phased
approach
• OAS Infrastructure backbone may not be able to support
new traffic to the cloud since we currently send traffic for
all ERP transaction to our internal data center.
Benefits
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Option 3 – Course Correction/Hybrid Approach
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232323232323
Scope Assumptions Critical Path – 9-11 Months
• ERP Scope– Financials,
Procurement, and Grants/Projects
• Finance, Grants/Projects
Financials, Fixed Assets,
Procurement
• Human Capital Management,
Recruiting, Leave Absence
• Payroll integration with best of
breed solution included
• Onboarding and Offboarding
extension (power app)
• Change Management and
Governance included
• Identity and Access Management
integration included
• Design workshop included
• Priority Support included
• Other integrations with current
legacy systems included
• Go Live extended production
support to 1 month
• COVID-19 related delays have been
resolved
• 2-week analysis performed with
different vendors gathered enough
data to support pricing and timeline
provided
• SAF will be able to identify resources
to backfill SAF folks supporting the
project
• Ability to train current SAF DOITS
employees to support platform,
integrations and upgrade cycles
• Ability to train and empower SAF
business users to become super users
of the system, build basic powerapps,
generate reports and communicate
directly with vendor support for any
break fix issues without relying on
DOITS
• Assumes Technology Fund balance
remains with 2M
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Option 3
23
Reqs Gathering and Design
Workshops
Jul 1,
2020
Development & ConfigurationsSep 15,
2020
User Accessibility Testing (UAT)Feb 01,
2021
Data Conversion and
Integrations
Oct 30,
2021
April
30, 2021
Go LiveMay 31
– Aug
31, 2021
User Training
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Option 3
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TOTAL PROPOSED COST - MAY 2020
Items Additional Costs
Implementation Cost (Additional)* $500,000-$1,000,000**
Travel & Expenses 0
+ 2 Months - Post Production 0
Licenses 0
Data Conversion Consultant $90,000
Temp Resources to Backfill SAF $200,000
Executive Program Manager $108,000
Change Management Consultant 80,000
User Acceptance Training (UAT) Consultant 0
FXLoader (Foreign Exchange Rate Solution for Oracle ) 0
Total $1,000,000-$1,500,000
* In addition to the 5.1M initially budgeted
** Includes premiere support, post production, travel and license costs
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Option 3 – Benefits and Risks
• Solution fits much better with the profile of the OAS (project based)
• Native integration with Microsoft Office 365
• OAS has DOITS Microsoft developers to support future
configurations, therefore no need for Oracle service support
• Users no longer need to login to multiple systems since they login
with OAS network credential. Oracle would have required multiple
logins due to no Single Sign-on capability on several modules
• Security integration with Office 365, therefore no additional cost
• API integration (no middleware) with Payroll and recruiting system
• Implementation includes one vendor for product and services, one
button to push. A lot of the delays came because Creoal would
create a ticket with Oracle and ticket would take 6 months
• Platform solution that allows business users to build basic apps to
support day to day operations
• Platform provides out of the box templates for DOITS or any
business user to edit and create power apps (no development skills
required). Oracle required developers to create new functionality or
extensions
• No need for 3 months post production as DOITS will support
platform
• Premiere support available for break-fix and t to help our
developers. Dedicated Full-Time Dynamics
• Microsoft Consulting Services (MCS) takes care of all issues with
MS premiere support during implementation, which removes
responsibility from OAS as it happened with Oracle and Creoal
• MCS provides change manager and UAT manager to support
implementation reducing OAS cost for additional resources
• Trough Premiere support, OAS has the ability to pay for unlimited
environments versus with Oracle, each environment had a high
cost.
• Hybrid implementation model with offshore and onshore resources
to reduce implementation cost
Risks
• Current EBS risk remains until Project is
completed
• Inability to identify qualified temp resources
to cover SAF support during implementation
• Option 3 defined in two weeks based on
limited meetings with vendors and OAS staff
for proper requirements gathering
• Potential morale issues with SAF members
who have already spent 18-months supporting
the project
• COVID-19 may impact OAS users ability to
support the project, especially the early
deliverables and milestones
• OAS Infrastructure backbone may not be able
to support new traffic to the cloud since we
currently send traffic for all ERP transaction
to our internal data center.
Benefits