QuestDirect.org Total Cost of Ownership for PeopleSoft Applications Panel Discussion Session

QuestDirect.org Agenda Introductions5 What is Total Cost of Ownership (TCO)?5 Why is TCO important?5 How do we calculate TCO?25 Open discussion10

QuestDirect.org Introductions Carmen Mazza –Manager of HRIS and Payroll –Securian Financial Group – Paul Brand –HRIS Technology Manager –Wells Fargo Bank –

QuestDirect.org Wells Fargo is… #1 in deposits among US banks. #1 in market capitalization among US banks. #4 in assets among US banks. #1 in mortgage origination and servicing. #1 in philanthropy among all US companies. #12 in revenue among all US companies. 4

QuestDirect.org Wells Fargo’s Environment Implemented PeopleSoft HCM in 1993 (v. 2.0) PeopleSoft release 8.9, PeopleTools: 8.52 –HR, NA Payroll, Ben Admin –Heavy-duty employee self-service –Manager self-service (custom) –Talent Acquisition Manager and Candidate Gateway Employees on Payroll (NA): 277,000 Heavily customized for compliance and volumes 5

QuestDirect.org Securian Financial Group is… Subsidiary of Minnesota Mutual Companies Founded in 1880 in St. Paul Provides Financial Services including –$343 billion of life insurance in force –$20 billion in assets under management 6

QuestDirect.org Securian’s Environment Implemented PeopleSoft in 1998 PeopleSoft release 9.1, PeopleTools: 8.50 –HR, NA Payroll, Base Benefits & Ben Admin –Employee self-service - eBenefits, eProfile, ePay, –Manager self-service (custom) –Talent Acquisition Manager and Candidate Gateway Employees on Payroll: 3,700 Moderate customizations 7

QuestDirect.org What is TCO? TCO represents the organization’s complete financial exposure Typically expressed in dollars per unit, such as employee.

QuestDirect.org Why is TCO important? Options comparison Benchmarking Evaluating impact of changes over time

QuestDirect.org How do we calculate TCO? Units Inputs Denominators Value for cost

QuestDirect.org Wells Fargo’s TCO Formula: HCM Labor + Mainframe + Middle Tier + Licensing Active employees (ALP) Labor = Wages + bonus + training + load (Salary * 0.29) for app and support teams. Mainframe Cost = allocation for all MF data center costs, including operations staff, electricity, MF utility licensing… Middle Tier = HW/SW for app, web, and load balancing. Licensing = maintenance only. License fully depreciated.

QuestDirect.org Wells Fargo’s TCO Formula: HCM Labor + Mainframe + Middle Tier + Licensing Active employees (ALP) $9.2MM + Mainframe + Middle Tier + Licensing 277,000 ALP = $65.22 per EE per year

QuestDirect.org Securian’sTCO Formula: HCM Salaries + Direct Expenses + Indirect Allocations + IT Services # of W2s Salaries = HRIS & Payroll processing functions. Direct = Software maint., consulting, travel, misc. Indirect = Rent, Benefits, misc. overhead IT Services = app development, devices, phones, processing & storage.

QuestDirect.org Securian’s TCO numbers

QuestDirect.org What about value? What does your organization get for its money? –Quality of service –Scope of service Functions supported # of interfaces –Cost & risk avoidance Lean function staffing –Strategic Considerations Valuable opportunities Distraction from mission

QuestDirect.org APRIL 7-11, 2014 Sands Expo and Convention Center Las Vegas, Nevada QuestDirect.org/COLLABORATE COLLABORATE 14- Quest Forum is THE source for PeopleSoft roadmaps & news. It matters where you register! All PeopleSoft education and events run through Quest

QuestDirect.org TCO Session Carmen Mazza –Manager of HRIS and Payroll –Securian Financial Group – Paul Brand –HRIS Technology Manager –Wells Fargo Bank –