Corporate Compliance Using Lawson ProcessFlow and Smart Notification

Disclosure ControlsInternal Controls Designed to ensure that required disclosed information is recorded, processed, summarized, and reported within the time periods specified by the SEC. Include controls and procedures to help ensure that the required disclosed information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Controls that pertain to the preparation of financial statements for external purposes that are fairly presented in conformity with generally accepted accounting principles. Preservation Controls Designed to ensure that all audit records, material financial transactions, related communications, working papers, and other data, is preserved, protected from alteration, and readily available. Understanding the Law The Sarbanes-Oxley Act established new and enhanced standards for corporate accountability, as well as severe penalties for corporate wrongdoing. Good corporate governance and ethical business practices are now the law. Primary Areas of Regulation under Sarbanes-Oxley

Sarbanes-Oxley – Relevant Sections Section 404  Requires management to annually: State their responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting Conduct an assessment of the effectiveness of the company’s internal controls and procedures for financial reporting  Requires the independent auditor to: Attest to management’s assertion (requires a framework such as COSO) Section 409  Real Time Disclosures: Issuers are required to disclose to the public, on an urgent basis, information on material changes in their financial condition or operations. These disclosures are to be presented in terms that are easy to understand supported by trend and qualitative information of graphic presentations as appropriate.

The COSO Framework COSO identifies five components of internal control that need to be in place and integrated to ensure the achievement of each of the three main objectives. 1.Monitoring 2.Information & Communication 3.Control Activities 4.Risk Assessment 5.Control Environment Internal Control Framework

Primary Areas of Focus Control Activities  Completion of the documenting of internal controls  Testing and implementing internal controls  Sustaining internal control implementations  Implementation of system based controls Monitoring  Timely review of reports  Internal audit function  Proactive notification of material events Information and Communication  Single version of the truth  Timely distribution of information

Lawson Solutions Base Systems  Financials, Procurement, HR/Payroll  Expense Management, Time Management, etc…  Reporting & Analytics ProcessFlow - System based controls and approvals  Lawson ProcessFlow provides a means of implementing documented internal controls  System based controls  Audit trails are created and can be reported on Smart Notification - Proactive Monitoring and Reporting  Time or data event based  Monitor data for “material events”  Root cause analysis

Functionality comparison with Process Flow CapabilitySmart NotesProcess Flow Notifications with rich, actionable content? Yes - Focus No End-user subscribe and customize model? Yes No Dynamic links into Lawson applications? Yes No Delivery to a wide range of devices? Yes No Monitors data from both Lawson and non-Lawson systems? Yes No Ability to define and monitor complete processes / workflow? No Yes - Focus Ability to automatically route workflow requests? No Yes Perform automated steps based on workflow decisions? No Yes

ProcessFlow

Lawson ProcessFlow - Packaging ProcessFlow Standard  Every Lawson release 8 customer receives ProcessFlow Standard at no charge  ProcessFlow Standard is delivered with the 8.0.X Environment ProcessFlow Professional  Saleable version of ProcessFlow  Full-capability version of ProcessFlow ProcessFlow Solutions  No charge, licensed products; 28 pre-built processes (flows)  Available to every ProcessFlow Standard or Professional customers  Will operate with either ProcessFlow Standard or Professional

ProcessFlow Standard Can build processes (flows) from scratch using the ProcessFlow Designer Can not build processes from scratch that contain any of these three nodes:  UserNode  HR UserNode  Work Object Node Can operate and configure processes that contain any of these three nodes

ProcessFlow Professional Full-capability version of ProcessFlow Can build processes (flows) from scratch that contain any node in the ProcessFlow Designer Can build processes from scratch for multi-step, multi- user review and approval  Job requisition  Salary increase  Purchase requisition  Etc. Can build processes from scratch that contain these three nodes:  UserNode  HR UserNode  Work Object Node

Types of Triggers (Standard or Professional) Automatic Initiate ProcessFlow as a by-product of a Lawson application Action. e.g. requisition is released, employee expense approved... Manual Initiate ProcessFlow as an explicit result of an employee action. e.g. Employee “presses” a button,... Scheduled Initiate ProcessFlow in a Time-based or repeatable Way. ProcessFlow Start

ProcessFlow Inbasket Delivered with both ProcessFlow Standard and ProcessFlow Professional Two versions:  Web/HTML Inbasket  Lawson Portal based Inbasket Both versions of Inbasket have same functionality Both versions of Inbasket only require a web browser connected to internet/intranet for access Only difference is deployment method Reviewers and approvers in ProcessFlow do NOT need to be set-up as Lawson applications users Unlimited number of end users

How Do You Build a ProcessFlow?

ProcessFlow Designer A Graphical User Interface (GUI) to define a process Simulate the process at design time Upload the process on the ProcessFlow Server Repository for server side execution

ProcessFlow Designer: Nodes Activity Nodes  AGS, DME (Internet Object Services, IOS)   Message Builder  Work Object Creator  Web Run Can be used to integrate with non-Lawson, web-addressable applications  User Action  HR User Action Logical Nodes  Branching - conditional channeling of data  Iteration - looping over defined sub-graph  Assign – basic mapping of variables

ProcessFlow Designer: Salary Change Approval Can NOT use ProcessFlow Standard to build a process from scratch that includes the User Node(s)

ProcessFlow Metrics Track how long to complete each step in a multi-step, multi-level review and approval workflow process Metrics are stored in the database powering the Lawson applications Answer questions to identify bottlenecks:  “How long does it take to approve purchase requisitions greater than $1,000 by store, by region?” Can be analyzed by:  Lawson’s Enterprise Performance Management products  Lawson Smart Notification  Other reporting and analysis tools

How do I Receive ProcessFlows?

When to use ProcessFlow Web/HTML Inbasket? Can be assigned per end user Reviewers and approvers that do not use the Lawson Portal, i.e., LID users, non-Lawson application users Non-organizational reviewers and approvers  Supplier or vendor personnel  Customer personnel Low-frequency reviewers and approvers Example HTML templates delivered by Lawson Very customizable Modified with any HTML editor HTML skills required

When to use Lawson Portal based ProcessFlow Inbasket? Can be assigned per end user Reviewers and approvers that do use the Lawson Portal High-frequency reviewers and approvers Integrated user experience with Lawson Portal Quicker and easier to implement  Only need to “turn on” Lawson Portal based ProcessFlow Inbasket flag in each person’s RD30 Lawson web user record Very customizable with Lawson Design Studio Can be modified with any HTML/JavaScript editor  Do not need Lawson Design Studio  HTML/JavaScript skills required

ProcessFlow Example

Business Problem New and Returning Employee Security Set-up  Employees initiated the request for access  Time consuming process  An average of new hires or returning employees each bi-weekly pay cycle  Small security division staff

Problem Resolution Used ProcessFlow Professional (or Standard) to Automate Security Set-up Process:  Identifies all new or returning employees  Verifies Status Code and Process Level  Creates the user personal profile and web name (RD30) record  Creates the interface file for use by the current Lightweight Directory Access Protocol (LDAP) account creation system  s the employee or HR office the logon information

Example PHR008 Security Flow This process can be built from scratch with ProcessFlow Standard Note no User Nodes, HR User Nodes, or Work Object Nodes

Smart Notification

Proactively monitors data, filters out noise, and automatically delivers important information Simplifies and guarantees reporting, analysis and information dissemination Eliminates uncertainty

Smart Notification makes it easy Data Sources Smart Notification Server

Smart Notification

In-Context Application Links

Functionality comparison with Process Flow CapabilitySmart NotesProcess Flow Notifications with rich, actionable content? Yes - Focus No End-user subscribe and customize model? Yes No Dynamic links into Lawson applications? Yes No Delivery to a wide range of devices? Yes No Monitors data from both Lawson and non-Lawson systems? Yes No Ability to define and monitor complete processes / workflow? No Yes - Focus Ability to automatically route workflow requests? No Yes Perform automated steps based on workflow decisions? No Yes