Fusion Financials at its Best – Get Ready to Expand

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Fusion Financials at its Best Get Ready to
Expand! Case Study of Sakura Finetek USA

• Jun 29, 2020

Presented by Hemal Parikh, NexInfo Sandeep
Sindol, Sakura Finetek USA
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Presenter Information

• Name Hemal Parikh
• Experience Expertise
• Business Process Design Solutions Design
  Project Management Change Management
• Enterprise Resource Planning (ERP) Human
  Capital Management (HCM)
• Sr. Solutions Architect/Delivery Lead at NexInfo
  Solutions with 16 years of experience in
  delivering financial solutions across industries
  geographies
• Oracle Certified Implementation Specialist with
  experience in leading ERP transformation
  engagements, recommending industry best practices
  implementing Business Optimization initiatives
  for Enterprise Customers across industry domain.

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Presenter Information

• Name Sandeep Sindol
• Experience Expertise
• Systems Applications Manager with 15 years of
  experience working in IT
• Leads development, enhancements and maintenance
  of Oracle ERP and other SaaS and on-premise
  software applications used throughout the Sakura
  organization
• Passion for staying informed and learning about
  emerging technologies to provide cost effective
  solutions that meet business expectations but
  require minimal resources

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Agenda

• Topic Introduction
• Key Considerations Finance Organization Should
  Make
• Implementation Challenges (Business/System)
• 3-Step Implementation Approach
• Day in Life Financial Cloud Implementation

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Questions?
Please submit questions using the Questions
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Introduction

• Problem statement Many companies shy away from
  implementations of new software because they feel
  that its a very cumbersome task. Fear of
  unknown We are here to try and show a
  methodology that can make this more predictable.
• What to Expect in this Session ?
• Session Goals
• Key Considerations made by Finance Organization
  Change Adoption. Case Study of Sakura Finetek
• Implementation Challenges Faced Steps taken to
  overcome them
• Understand 3-step process approach associated
  best practices to expedite Oracle Financial Cloud
  implementation
• Learn how the 3-step process, can help in
  simplifying Cut-over process with minimal
  downtime
• Motivation to migrate to Cloud is to outsource
  Application maintenance and IT work. Its more
  beneficial, when business users drive everything.

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Key Take Away

• The key considerations any finance organization
  should make for a successful ERP Cloud
  implementation
• Get to know typical (business system)
  challenges ways to address them using best
  practices.
• How this 3-step process can help in simplifying
  Cut-over process for Go-Live

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Sakura Finetek Case Study
Company Background Sakura is a privately-held
Medical Equipment Manufacturers specializing in
histopathology and cytology. Sakura is based out
of Torrance, CA here in US and employs around 200
people. Distribute products through the three
Sakura Finetek entities in USA, Europe and Japan
with over 100 distributors worldwide. Key
Objective Moving from Oracle EBS 11i On-Prem ERP
application to more futuristic Oracle Cloud
ERP Project Scope Finance (AP, AR, FA, GL, CM),
Procurement (PR, PO), Supply Chain (OM,
Inventory, PLM, MFG), WMS Project Duration
Little over 1 Year Cutover Downtime 3 business
days No. of Integrations Integrating System
20 integrations with 3rd party systems using
PaaS
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Key Considerations Finance Organization Should
Make

• Key Transformative Initiatives
• Change in Chart Of Account Structure
• Adoption of Account hierarchy for effective
  Financial Reporting.
• Streamlining Optimizing Month End process
• OCR Invoice Imaging

Hemal to put the draft
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Proposed Chart of Accounts Segments

• COA Segments in the Sequence length.
• Company (3 chars)
• Account (6 chars)
• Cost Center (6 chars)
• Inter Company (3 chars)
• Future1 (3 chars)
• Future2 (3 chars)
• Key Changes
• Account Segment
• Account Hierarchy Usage. Account Segment length
  to be extended to 6 chars.
• Discontinue usage of Sub Account Segment
• Cost Center Segment
• Cost Center Hierarchy Usage to address Expense
  Tracking by Project.
• Length of Cost Center to be extended to 6 chars

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Account Segment Account Cost Center Hierarchy
Usage
(Solution to Project ID usage Sub-Account
discontinuation)
EBS 11i
Co-Acct-Sub A/c-Dept-Fut1-Fut2
EBS 11i
300-73010-310-530-000-000
EBS 11i
300-73010-315-530-000-000
EBS 11i
300-73010-320-530-000-000
Account Hierarchy Usage
Project ID Usage
300-73010S-53000S-000-000-000
Summary TE A/c (No Transaction)
Summary Node (No Transaction)
300-730310-530000-000-000-000
TE - Entertainment
Cost Center - Non Project
300-730315-530101-000-000-000
TE Mileage/Auto
Project - 101
300-730320-530102-000-000-000
TE - Airfare
Project - 102
IT Cost Center Summary
Travel Entertainment Summary
53000S
73010S
530000
IT Cost Center Non Project
730310
Entertainment
530101
Project - 101
730315
Mileage/Auto
530102
Project - 102
730320
Travel-Airfare
Co-Acct-Dept-InterCo-Fut1-Fut2
Oracle Cloud ERP
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Adoption of Account hierarchy for effective
Financial Reporting.
Explaination of how hierarchy helps in Financial
Reports Hemal Share the snapshots of Financial
Reports Sandeep
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Streamlining Optimizing Month End process
Oracle features for Month End Recon
Hemal Positive feedback heard from Business
Sandeep
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Key Challenges (Business / System)

• Gap in Extracted Data, leading to issues in
  porting to Cloud system. (Transform Financial
  transaction data aligning with new COA
  structure).
• Approach Created mapping sheet loaded mapping
  segment values into Staging Table. Data Extract
  SQLs referenced staging table to transform data
  automatically.
• (Master Data for Customer Sites/Address was
  challenge as County was not captured in legacy
  system, but required in new system for Tax
  derivation)
• Learning Customer Data and impact on Tax
  derivation should have been considered at early
  stage of implementation.
• Prolong UAT phase, as customer is not comfortable
  with usage of new system.
• Learning Originally included Super Users in
  UAT, but later got multiple new scenarios from
  End Users.
• Design issues opens up during UAT phase.
  (Sandeep to think of e.g.)
• Learning Involve few End Users early in
  the Design/CRP phase.

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Key Challenges (Business / System)

• Cut-Over Deployment process is painstaking
  prone to errors. (Challenges faced AR Open Txn
  load, and reconciling the balances. As
  transactions went back to 3 years.)
• Learning Cleanup of Open AR transactions should
  have been started early.
• Getting involvement of End Customers for 3rd
  party integrations (for e.g. EDI) is challenge.
  Leading to transaction fallouts.
• Learning Involving 3rd party integration with
  (End Customers) early in the Project for testing
  cycle. To ensure rigorous testing for all
  scenarios.
• Post Go-Live Support, specially first few Month
  End process. (And the Quarterly Updates impacting
  Cost Accounting ME process.)
• High dependency on IT team continues, in-spite of
  Cloud adoption. Many cases, business super users
  are not tech savvy.
• Learning Expose users to Video tutorials have
  them use new system for their learning/training
  purpose before Go-Live. Super Users should take
  lead as Change Agent Trainer early in the
  Project.

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3-Step Process How it should be ?
Step-1 RAD Requirement Analysis Design
Project Initiation
Step-2 DATA Transport (Data Extract, Load
Integrate)
Step-3 Review (Iterative Reviews)
Go-Live
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Outcome of the 3-Step Process
RISK MITIGATED RAPID IMPLEMENTATION
Aligning the business objectives (not
requirements) with software reduces risk of
unmet needs Data Transportation to the cloud is
a significant challenge that needs to be
addressed early Education Training enable
iterative review by business users
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Day-in-Life Oracle Cloud Financial Deployment
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Step-1 RAD (Requirement Analysis Design)
Step-1
Identify Functionalities required across AP, AR, FA and GL. Perform functionality mapping and come up with To-be process flow
Finalize your GL Enterprise Structures COA structure. Outcome Complete (RI) Rapid Implementation sheet, A/c combinations upload sheet.
Define your Module level configurations all manual setups.
Define configure workflows (Invoices/Journals), Reports Dashboards
Define Interface needs automated(real time/batch) V/s. manual (ad-hoc run). Accordingly configure batch schedule Data Upload business process
Custom Interface needs(if any) to be tracked
under customization track
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Step-2 Data Transport (Extract Load)
Step-2
Load your Master Data - Customer Supplier Master FA Categories/Location, Banks
All External Data Interfaces external system Data Loads to be prepared deployed.
Load your Historical Data (GL balances other mandatory transactions)
Load your Open Transactions (Unpaid Invoices (AP/AR), In-Service Assets)
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Step-3 Review (Iterative approach)
Step-3
Review End to End System transaction, with sample master Item setups. (Step-1)
Review Master Data Load, perform End to End System transaction. (Step-2)
Review External system data load. (Step-2)
Review Historical Data Load, through reports (Step-2)
Review Open Transaction Load, and complete system transaction until end. (Step-3) Its your cut-over readiness.
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ABOUT US
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Who Is NexInfo?

• SUMMARY
• NexInfo Solutions Inc. (NexInfo) is a leading
  consulting company, a premier Oracle partner,
  founded in 1999 with 20 years of extensive
  experience in helping clients, utilizing our
  consulting expertise to small, medium and large
  enterprises. Whether you are a fortune 1000
  company or a small business or a start up,
  NexInfo can help you achieve Operational
  Excellence using a blend of Business Process and
  Software Consulting Services.
• Deep domain expertise, including Enterprise
  Resource Planning (ERP), Product Lifecycle
  Management (PLM), Integrated Business Planning
  (IBP/SOP), Customer Relationship Management
  (CRM), Enterprise Performance Management (EPM),
  Human Capital Management (HCM), Oracles Cloud
  Based Industry Solution for Higher Education
  (Student Cloud), Predictive Data Analytics,
  Security, Business Transformations.
• We use our proven NexGen Methodology for
  traditional models and NCAM (NexInfo Cloud
  Adoption Model) for fast track Cloud migration
  projects. Both methodologies bring a Best
  Practices based approach to help you achieve
  operational goals and accelerate operational
  excellence.
• Recognized in the industry, including features in
  Gartner Reports, The Silicon Review (50 Smartest
  Companies of the Year 2016 and 10 Fastest Growing
  Oracle Solution Providers 2017), and CIO Review
  (100 Most Promising Oracle Solution Providers
  2015 and 10 Most Promising ERP Consulting/Servies
  Companies 2019)
• PARTNERS
• CORPORATE INFO
• HQ in Orange County, CA with offices in Redmond,
  WA, Chicago, IL, Bridgewater, NJ, Dublin,
  Ireland, Chennai Bangalore, India
• Operations across the United States, Europe
  (Ireland, UK, Switzerland, Belgium) India

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Industry Experience
High Tech Semiconductors Devices
Industrial Equipment Manufacturing
Food Beverage
Life Sciences Medical Devices Pharmaceuticals
Biotechnology Clinical Research
Consumer PackagedGoods Retail
HigherEducation
Power, Oil Gas
Aerospace Defense
Finance
Building Products
Engineering Construction
Public Sector
Healthcare
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Thank you for joining us today.

• Questions?

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Contact Us
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Bellevue, WA
Bridgewater, NJ
Orange, CA Santa Ana, CA
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Bangalore, India
Chennai, India