Shared Services Centers Yair Shaked Finance Director

Oracle Corp. – Key Facts Largest enterprise software vendor Founded 1977; Public 1986 Corporate offices – Redwood Shores, CA 145 Countries, WW. 78,000 employees worldwide Revenue(Last 12 Month)- 18B$ Net Profit (Last 12 Month)- 4.2B$

NOT a Global Corporation Local Decision Making No commonality in Processes or Systems No Global Chart of A/C ’ s or Standard reports No Global picture of Customers, Suppliers and Employees Oracle in 1998

Disparate Technology (52 Applications Instances) Fragmented Data Oracle’s Infrastructure 1998

What did we want to achieve?

Simplify, Standardize, Centralize, Control

Improve operating margins from 20% range to 40% range.

Need to reduce all Labor costs EXCEPT FOR R&D.

Accounting and back office are not the crown jewels of Oracle. R&D is !

Put your own house in order BEFORE doing acquisitions.

Acquisition & Merge processes Short!

Do it at time when things are going well.

Doing it - by using Oracle Systems.

Evolution of Shared Services at Oracle Data Entry Account reconciliations Limited B/S scope Corporate Submission Accounts clerks Audit Support Focus: Process Efficiency Business Support Exceptions Full B/S and P&L Analysis & Review Qualified Accountants Audit Lead Focus: Control Phase I Phase II

Colorado Springs Bangalore Sydney Rocklin Dublin "מה שיכול להיעשות מכאן – ניתן להיעשות משם" Shared Services at Oracle Romania

WHY Shared Services at Oracle Economies of Scale Consistent Business Processes Improved data integrity & business intelligence Increase control Reduce reporting cycles Oracle Unified Infrastructure Vision Consolidated Technology – Global Single Instance

Where are we now? Key decisions at Global Corporation HQ. Management reporting – one version of the truth. Global standard processes. Transaction processing in Shared Service Center. Local Finance focused as business advisors. Monthly close process FAST (Days!) Acquisitions integrated FAST (weeks/months) Good corporate governance/SOX compliance.

Finance Directors - Can Concentrate on Business Visibility and Accountability Self Service – Do it Right on the First Time Agile Organisation Take Our Own Medicine The Benefits of Shared Services

Total F&A Cost Declined 30% Total Heads Declined 25% Cost per head declined Payback was 28 months Biggest Savings is IT

Establish global standard business processes Clear separation of duties Facilitate operational reviews and audits Increase operational efficiency Expedite incorporation of new business units Manage cost The Benefits of Shared Services

Oracle’s Implementation Methodology Change Mgt/ SSC Activities Define 1 wk GAP Analysis 3 Weeks Resolve 2 weeks UAT 3 wk Transition 2 Weeks Post Imp. Support Model Timeline 3 Months

Critical Success Factors Executive Management Sponsorship Effective Change Management Outstanding Communication Quality Focus Global Process Owners Partnering

Some Practical Considerations Need Top Management Commitment and Active Involvement – Create a unified Vision for Finance Hardest Part: Local resistance Leadership of local FD! Allow no room for duplication Architecture predefined - do not move a broken process Maintain and Build on the Process

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