Infosys-Oracle Blog

Guest post by
Mili Bhaskar, Consultant, Infosys

Continuous pressure on businesses to perform has forced enterprises to evaluate, evolve and empower their finance functions, as a result of which there is a strategic shift seen in the finance department from being a score keeper to a valued business partner. The finance function on its path to evolve has come to be integrally dependent on effective information systems and technologies.

In this part of blog, I provide an overview of the current industry trends and in the next part, I will elaborate how Oracle Fusion Financials Application aides organizations in keeping up with these changing trends.

Oracle Fusion Financials 11g Release1 includes the following modules:

• Oracle Fusion General Ledger
• Oracle Fusion Cash and Expense Management
• Oracle Fusion Accounting Hub
• Oracle Fusion Payments & Collections
• Oracle Fusion  Accounts Payable
• Oracle Fusion Asset Management
• Oracle Fusion  Accounts Receivables

Industry Trends

• Strategic Shift from scorekeeper  to  value adding Business Partner
  Business partnering is gaining more importance as economic activities soar high and companies strive to achieve better market share and visibility through increased revenue. To meet this demand of the market, finance function needs to be re-engineered and restructured to partner with management for decision making through better financial information, analytics, trends, forecasts and dashboards.
• Proactive risk management-Business Agility through 'One Stop Source'
  Real time information for critical functions such as Accounting, Finance and Risk management is required to provide better business management and enable the finance stakeholders to do root cause analysis immediately to manage threats and concerns more efficiently.
• Ever-changing Regulatory Reforms and Policies
  Healthcare reforms, Energy and Environmental legislation, Tax changes, Strengthened antifraud enforcement, and the Looming conversion to International Financial Reporting Standards (IFRS) have added stress on legacy finance systems and finance processes. The finance organization needs a common set of systems which are scalable to meet the current as well as future statutory and regulatory needs.
• Scalable Global Shared Services Model
  Organizations are looking for flexible, scalable and efficient Global Shared Service delivery models that can enhance enterprise value by enabling cost-effective growth, supporting internal controls and compliance. The need is to extract more value from the shared service model by having systems support to establish Shared service organization by capabilities like Accounting SSC, Invoicing SSC etc.
• Mergers and Acquisitions
  In the current business scenario when economies turn tough the industry follows the trend of inorganic growth for survival, sustainability and growth. The potential benefits brought forth by mergers and acquisitions are always flanked by challenges of establishing an acquisition playbook for the people, processes and systems of the two organization.

The industry trends in Financials Management that are discussed above can very well be addressed by the Oracle Fusion Financials Applications and in the next blog, I will discuss Infosys Point of View on this aspect.

Posted by Guest Blogger at 12:03 PM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

Guest post by
Gaurav Kumar, Principal Consultant, Infosys

Definition of success parameters at the outset of any enterprise is the first step to determine the steps that need to follow. The ability to follow through with the detailed planning basis the success parameters is at the heart of project and program planning. The effective management of any enterprise depends upon the identification and administration of these parameters. Hence the relevance and effectiveness of any KPI is how closely it is linked to the business outcome and its understandability.

However, one of the key issues that manifests itself in IT projects and programs is the identification of key performance indicators to report on. With conflicting objectives and requests, the list seems to keep growing till it begins to lose significance or worse still, not get acted upon. Thus having a small number of easy to understand and relevant metrics which are shared between business and IT is preferable. This is easier said than done. The end state of metric definition is reached by responding to the points of consideration below in an accurate and objective manner. 

The points of consideration in identification of such metrics is the focus of this writeup.

• Relevance:  This is the key attribute in the Identification of levers for the identified objectives:  In order to create a suitable set of metrics, a completely exhaustive and mutually exclusive list of levers which influence the priorities identified.
• Business Impact/Consequence: All levers for the identified objectives would not have an equal weightage. Relative ranking of levers based on the stated objectives would help creating a such hierarchy. Creating a hierarchy would allow the addressing of levers in the weightage assigned.  This also represents the strength of linkage of the metric to the identified strategic objectives of the overall exercise.
• Purpose:
   o  Status Update versus Analysis: Strategic/Tactical metrics
   o  Audience
   o  Frequency
• Breadth:  How much of the process is under coverage of the metric? Are there complementing metrics that are available to fill in the gaps? Are all key aspects of the process covered?
• Operation ability:
   o  Ease of calculation
   o  Ease of collations
   o  Periodicity of collation and analysis
   o  Role clarity with reference of metric: This would call for a matrix which has guidelines for the following:
         Who captures what
         Who analyses
         Who receives
         Who owns/acts on it
   o  Whose goal /performance measure is this on?

The need to critically evaluate each metric with these considerations would allow a more objective determination of its value.

So any time there is a metric which someone thought of for a project/program, the request for introduction should be accompanied by the answers to the following five fundamental queries:

What are we measuring?

Why are we measuring?

Who is measuring/acting on it?

How is the measurement taking place?

When is the measurement taking place?

Posted by Guest Blogger at 12:01 PM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

Guest post by
Arun Tomar, Consultant, Infosys

In the previous part of the blog, we discussed about some of the important Human Capital Management trends in the industry. This part throws light on how Oracle Fusion Human Capital Management Application can cater to the needs of these fast changing Human Resource trends in the industry.

Infosys POV and Oracle Functionality

• Enhance Workforce Effectiveness
  Oracle Fusion Human Capital Management Application is developed on Web2.0 technology; this has not only improved the functionality and usability, but also reduced the number of steps needed for a user to complete a given task. Oracle Fusion Human Capital Management has features like Tabbed Windows, Personalization, Auto-Save, and Contextual Searches translating into improved operational efficiency.
• Use of Workforce Analytics to Support Decision Making
  Oracle Fusion Human Capital Management includes capabilities for Embedded and Predictive Analytics. Embedded analytics are intuitive and are available across key transactional screens and some as stand-alone. With Predictive Analytics, more advanced analysis can be performed that could have a significant impact on future performance of the workforce, and give a different path towards strategic decision making. One example of this is, a pre-built analytical application that uses Human Capital Management data in a 9-box matrix to predict possible outcomes such as risk of loss of an employee, employee performance etc.
• Integrated Talent Management
  Oracle Fusion Human Capital Management provides integrated Performance Management and Talent Review modules. With its 9-Box functionality, Oracle Fusion Talent review provides a familiar tool, which helps identify high-performing talent, talent at risk of leaving, key talent within certain geographies/business entities, etc.  In addition, it has a collaborative Network @ Work module which caters to employees' needs to give kudos, share goals, manage group spaces, and reach out to mentors and many such features which support networking amongst employees.

There is also an integrated Oracle Fusion Compensation Management module which meets all the compensation management related requirements of the employer. There is also Workforce Directory Management (WDM) module, which provides an Organizational Chart, Person Directory and Person Portrait.

Together, these provide a great solution for many of the most critical strategic Talent Management needs. 

• Leverage a 21st Century, next-generation Human Capital Management system
  Oracle Fusion HCM is available On-Premise or in Software as a Service (SaaS) model.

Customer can also choose from two different deployment options while implementing Oracle Fusion Human Capital Management. First is to deploy the complete Suite of Oracle Fusion Applications. Second option is co-existence, in which customer can continue with their Application Unlimited Core Human Capital Management systems and implement Oracle Fusion HCM - Talent Management. In co-existence deployment option, there is an out-of-the box Integration and data extraction solution provided by Oracle which is secure, innovative and functional.

Conclusion

With Oracle Fusion Human Capital Management collaborative workforce environment productivity of organization will scale up. It will provide new avenues to customers to manage the Human Resource processes and workforce in a strategic manner. Oracle Fusion Human Capital Management users will also be more in control of HR processes and related data with embedded intelligence, talent review, and other vital components, such as the interactive organization chart. Thus, Oracle Fusion Human Capital Management gives users the right data and tools at the right time, making users more productive, better connected, and more informed.

Posted by Guest Blogger at 10:45 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

R12 was a major release for OPM in the sense it merges process inventory with discrete inventory which resulted into streamlining of inventory operations & better integration with Order Management, Purchasing etc. Another change was the introduction of SLA for OPM, which finally hit the nail in coffin for much criticized MAC module. Afterwards, there are lots of enhancements like Multi-batch operations, Make-to-Order Functionality, Landed cost management etc.  We now even have validated integration between 3rd party Regulatory document generation partners and OPM Regulatory Management. But, something was still missing. Something that process manufacturer is demanding from Oracle from long time??

The process companies, like other industries, rely heavily on contract manufacturing. When I was doing OPM Implementation for a medium size Oil industry back in 2004, the big hurdle was implementation of outside processing (OSP). It was not available in OPM. We had to develop a workaround by creating dummy warehouse for outside processing, and building few customizations on top of that.  Sad to say, the scenario has not changed much as far as OSP is concerned. While certain tax requirements related with contract manufacturing have been covered by Localizations, specifically India Localization, these are more of a Band-Aids & the full solution is still awaited.

Oracle is also reiterating for some time about introducing OSP in OPM. In fact, it is one of their top most priority items, but nothing concrete came out.  Finally, in recently concluded Oracle Open world 2011, they have discussed about it & provided their approach. The approach is more or less similar to discrete manufacturing and is provided below:

Company will have service agreement with OSP Vendor. The Raw or Unfinished materials are either delivered directly by RMS (Raw material supplier) to OSP Vendor facility or it can be shipped by the company.  OSP Vendor will do the necessary processing and ship back the semi-finished or finished goods to company. Necessary documents like Bill of lading will be generated. There will also be option of Partial receipt & QC inspection. Lot Genealogy will be updated to show the OSP detail. Similarly, Subcontract Material Tracking/ Valuation will be available.

Now, as Oracle has provided their approach, it will not be long when this functionality will be available in OPM. It seems the long awaited wish of Client will finally be fulfilled.

Posted by Ashish Namdeo at 6:34 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

Guest post by
Anand Balakrishnan, Principal Consultant, Infosys

Dear Nikki,

Sorry, I missed our flight. I knew you would be wondering if I made it to my section of the plane and wanted to let you know as soon as I could.

After we parted at the check-in counter and I was belting my way across the concourse I went through a full body scan that created some excitement for the good folks in the TSA, consequently I missed the shuttle transfer to the flight.

I've had myself rescheduled on the night flight to SFO, I take a connection to Seattle an hour later and a shuttle is scheduled to pick me up at SeaTac and drop me home by 8.00am.

Sit back, enjoy a complimentary beverage of your choice from the airline (the flight attendant has been informed) and head home as soon as you land without having to wait for your checked baggage.

Regards

Baggage ID - NA210802
(Green Samsonite 360^O Swivel)

Delayed or lost baggage is one of the biggest fears that plague most airline passengers.

Imagine a world where your checked baggage could "take care of itself".

Imagine a world where the baggage tag had an embedded intelligent chip that could communicate with the conveyor belt to ensure that it slid off where it had to, got picked up by automated and unmanned vehicles pre-programmed to get your bag on your flight and the bag took care of itself till it reached the carousal where all you need to do is pick it up.  Imagine a world where your bag could send you the above e-mail as soon it was became logistically impossible for it to make the connection with you and it was able to automatically reschedule itself on a new flight, organize the shuttle service to get dropped off and inform the flight attendant to offer you a complimentary drink.  Imagine a world where you knew if your bag was going to reach your destination with you before you reached your destination and the airline was able to make up for the inconvenience while you were onboard the flight...

We at Infosys are imagining a world where this is not fiction, but a reality. We believe that the pervasiveness of computing and the ability for devices embedded with NFC chips to communicate with each other is the solution to a number of challenges faced by the logistics industry.  Watch this space for more as we focus on Building tomorrows enterprise....albeit, one checked bag at a time.

Posted by Guest Blogger at 7:15 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

Guest post by
Vandana Baliga, Senior Associate Consultant, Infosys

From the housing bubble burst in US to Euro debt crisis and the potential threat of student loan bubble in US, Are the banks alive to the risk?  There is a growing need to be sensitive to economic conditions, capture the debt dynamics and interpret the figures on the balance sheet of banks meaningfully. To address this need Financial Institutions have to foresee in to future and be pro-active.

The question looming large on the banks today is how to achieve this?

The nature of things to come can be determined based on Balance Sheet analysis determining the composition of the assets and liabilities of a bank, forward the risks associated in building budgets and forecasts. In other words, this would mean incorporating what if scenarios, accounting for historical performance into forecast data and model complex banking products to derive net interest margin and risk adjusted returns.

While measuring and forecasting business for banks, there are two things that matter most:

1. Profitability, and
2. Financial stability

And these two things have to be maintained without compromise.

Bank's profitability is measured as Net Interest Income, difference in spread between loans (assets) and deposits (liabilities). Other performance measures for banks that draw attention include non-interest income, generated in the form of loan origination fees and service charges and non-interest expense constituting workforce expenses, capital expenditure, provisions for loans. It is imperative that the performance measures are risk adjusted.

Financial stability of the bank is largely dependent on cushion available against the risks faced by banks, by maintaining their capital ratios. It is imperative that the budgets and forecasts of Banks need to incorporate macro-economic factors and associated risks to give realistic picture of these measures.

All this necessitates for a tool which would enable the bank perform all the above acts efficiently. One such application is the Oracle Financial Services Balance Sheet Planning (OFSAA BSP).

OFSAA BSP enables scenario based planning, allowing financial institutions to compare budgets versus actual performance for strategic decision making with respect to profitability, margin and contributions at business unit level.

OFSAA BSP is not confined to the numbers on the income statement and balance sheets alone. It is a systematic and planned approach of the performance measures allowing for the risk factors with constant monitoring. It includes capturing the customer nuances, modeling assumptions, complex cash flow calculations, processing and analyzing results centrally or at business unit level.

Posted by Guest Blogger at 10:18 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

A typical day in life of a manufacturer in digital imaging industry involves not just competing head-to-head with their top competitors. Ever shrinking margins and ever increasing customer expectations add to the woes. If one thinks a little deeper or tries to read between the lines the true competition lies between the manufacturers' multi-enterprise supply networks. Therefore, it is imperative that discrete manufacturers have visibility across their supply chains and more so across their supply ecosystems to ensure their suppliers are putting them in a position of competitive advantage in terms of inventory and cost.

The equilibrium has never been easy to establish. Since time immemorial the onus of balancing service levels against cost has been an uphill task. It's the age old conundrum of establishing the perfect formula to maximize company profit and deliver optimal value to customers, all at the same time. But today, insurmountable pressures on both sides of the equation are making it harder for manufacturers to satisfy the demands of both internal stakeholders and customers. Often the equation turns into an inequality.

In order to increase the supply chain responsiveness, the Original Equipment Manufacturers (OEM) are moving fixed costs to variable structures by outsourcing production and distribution to contract manufacturers and third party logistics providers.  There is always a reputation cost associated with such engagements as we have discussed earlier. The risk is truly due to adding the vicinity and supplier complexity to a supply chain usually results in reduced agility and control. At the same time instant fulfillment of customer requirement is paramount.  Helen Keller's famous Catch 22 comes to mind.

So on one side of the equation is the financial and product agility, and on the other is supply chain agility. It is this paradox that has forced manufacturers to seek global supply chain visibility as soon as possible. SMART players use the Strategic and Tactical fulcrums of the CMO engagement in assessing the balancing points of the equation discussed above. The window of assessment is a key determinant in arriving at the best results. This can help resolve the enigma of symbiosis and reap rich dividends of a CMO.

Posted by Amit Sinha at 10:55 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )

Guest post by
Gaurav Kumar, Principal Consultant, Infosys

A key step that needs occur prior to the start of any business transformation is the definition of objectives for the same. Many a transformation enterprise has bitten the dust with conflicting objectives being pushed by key stakeholders. As a fundamental premise, we can agree that any business transformation activity must have a set of objectives that it seeks to achieve. These objectives are quantified in myriad ways to arrive at a value that is expected to be achieved through the transformation. This activity however does not provide the clarity on the individual stakeholder objectives that the transformation seeks to achieve. Neither does it provide the collective sequential set of priorities which can be used as guidance by the transformation team. For example, the transformation may be effecting improvement of a particular metric however the levers to impact may widely differ amongst the stakeholders.

At this stage, we make a fundamental assumption: key stakeholders for the transformation are represented in the Steering Committee. As a first step, it is essential to collate a prioritized listing of objectives from the Steering Committee members. These objectives should then be grouped and presented to the designated Steering Committee for harmonization. The harmonization exercise seeks to achieve the following:

• Enunciate exact set of objectives to be achieved
• Provide weightage to each enunciated objective

These set of objectives and their weightages serve as input decision framework for the entire transformation exercise. The decision framework also needs to take into account the ease of implementation. This can be categorized as the extent of change management as well as the technological ease of implementation of the change. This especially applies to requirements and their prioritization.

Such an activity also enables identification of key metrics that are expected to be affected by the transformation. The tracking of the same helps validate the efficacy of the transformation. The impact to metrics should be further broken into levers which are specific actions that impact the calculation of the metric. The quantum of change in these levers should be agreed upon and the monetary benefit assigned to the same. These help transcend the gap from the qualitative nature to objectives to the quantification of business benefit. The realization of this business benefit which could come in terms of revenue increase or cost reduction. Avoidance of risk in this case is treated as a cost reduction measure as there are risk mitigation measures or insurance premium that needs paid as safeguard.

An effective transformation always keeps its eyes on this decision framework and uses it to track proposed solutions for impact to the levers in the pre Go Live state. In the Post Go Live state, the metrics and the levers are tracked against as per the agreed periodicity to determine the degree of success.

To use a hackneyed quote from Through the Looking Glass:
"Would you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to," said the Cat.

Posted by Guest Blogger at 10:28 AM | Permalink | Comments ( 0 ) | TrackBacks ( 0 )