Big Bang Implementation Approach:Financials V9.1 Upgrade & New

Implementation

Michele PaulAVP Assistant Treasurer, Strategic Finance and Management ReportingHannover Life ReassuranceMichele.Paul@hlramerica.comwww.hlramerica.com

Mario SanchezSr. DirectorDrivestream Inc.Mario.Sanchez@drivestream.comwww.drivestream.com

Table of Contents Introductions About Hannover Reassurance Company of America About Drivestream Audience Questionnaire Beginnings Road Taken Big Bang Implementation Achieved Results Take Aways Wrap Up

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About Hannover

About Hannover Re Hannover Life Reassurance Company of America (HLR America) is the

North American life and health reinsurance subsidiary of Hannover Re Group.

One of the largest and most financially sound professional reinsurance groups in the world.

Rated "AA-" by Standard & Poor’s, HLR America offers innovative risk reinsurance and financial solutions for ordinary life, group life, annuities, accident and health, and special risk insurance.

Market Focus: Mortality Solutions

Financial Solutions

Automated Underwriting Systems

Medicare Market Services

Group Life and Specialty Health and Accident Markets

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About Drivestream

Drivestream is a US based global management consulting services firm headquartered in the Washington DC area with delivery centers located in the United States and India. We have been in business since 2002.

We provide strategic advice and tactical support for developing, maintaining and upgrading our customers’ business applications.

We invest heavily in people, process and tools for delivering our services. Drivestream’s leadership team has a very strong consulting background with

many years of work experience at PricewaterhouseCoopers, IBM, KPMG and other Fortune 500 companies around the world

We have successfully delivered over 300 projects for some of the world’s largest companies to middle market customers across the industries and geography.

About Drivestream

Drivestream Customers

1.How many have completed a PeopleSoft implementation?

1.How many have already upgraded to version 9.1/9.2 ?

2.How many would identify themselves as Finance? HR? IT?

3.How many choose to perform upgrades using in-house resources only?

Audience Questionnaire

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Beginnings

Hannover Environment

Hannover Re and Oracle / PeopleSoft

2009: Hannover Re US acquired a block of assets from Scottish Reinsurance

Included PeopleSoft Financial Applications Licensed FSCM modules include

General Ledger V8.8 Accounts Payable V8.8

PeopleSoft V8.8 Environment

Future Model

Upgrade from V8.8 to V9.1 Upgrade PeopleSoft Financials system

Application version (from 8.8 to 9.1) 9.1 is the latest PeopleSoft FMS release from Oracle (GA

11’09) PeopleTools version (from 8.49 to 8.51)

Modules included in upgrade: General Ledger Accounts Payable

Deliver new and enhanced V9.1 features and functions for future use by the business

Review and implement dormant applicable V8.8 Features.

Implement V9.1 to New Units PS Implementation to new Business Units Standardize and improve business processes Bring existing disparate functions into the PS Platform Integrate the organization’s existing information systems.

Main legacy systems: Freedom Sage TRS

Reconfigure V8.8 PeopleSoft business model Sunset legacy systems

End of the year Reporting Demands

Project Key Elements Upgrade PeopleSoft Finance, staying as close to a ‘vanilla’

implementation as possible, minimizing customizations.

Utilize 9.1 functionality to retire existing 8.8 customizations wherever possible.

Enable new V9.1 features as determined in the fit-gap analysis, without impact to timeline or effort.

Identify and document business process changes. Deliver user training

Provide full support to the user community during and after deployment.

9.1 New Features Global Enhancements

Navigation Features Drop Down Navigation

Breadcrumbs

Recently Used List

Menu Sort

Menu Search

Type Ahead

Extended Attachment Capabilities Journal Entries

Vouchers

Vendors

Approval Framework User Configuration

Module Specific Features Accounts Payable

Email Payment Advices

Mass Payment Cancellation

Enhanced User Authentication w/ Voucher Spreadsheet Upload

Streamlined Withholding

Voucher Excel Upload

General Ledger Improved Messaging w/ Journal

Spreadsheet Upload

Enhanced Subsystem Recon

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Road Taken

Delivery Strategy Options

Phased ApproachInitial V8.8 to V9.1 Upgrade phase followed

by the Implementation in a subsequent phase Big Bang Approach

V8.8 to V9.1 Upgrade and New Implementation in a single Cut-over to Production.

Launch &Design

Build Test DeployInitial UpgradeAssessment

Upgrade & Implementation Paths

PREPARE PERFORM

Top Down Analysis Bottom Up Analysis

PRESENT

Project Planning Workshop

Project Kick Off Resource Planning &

Onboarding

Environment Launch FIT-GAP: Discover, Deep

Dive, Decide Customization Impact

Analysis Finalize Designs

Customization Retrofit / Unit Testing

Functional Configuration Test Moves to Production Test Preparation Training Development

System Testing Integration / Parallel

Testing Additional Test Moves

User Acceptance Testing

Training Production Cutover Production Support

Plan

Launch &Design

Build Test Deploy Initial ImplementationAssessment

PREPARE PERFORM

Top Down Analysis Bottom Up Analysis

PRESENT

Project Planning Workshop

Project Kick Off Resource Planning &

Onboarding

Environment Launch FIT-GAP: Discover, Deep

Dive, Decide Finalize Designs

New Tech Development Functional Configuration Test ADM Migrations Test Preparation Training Development

System Testing Integration Testing Additional Test Moves

User Acceptance Testing

Training Production Cutover Production Support

UPGRADE UPGRADE

Plan

IMPLEMENTATION IMPLEMENTATION

Phased Timeline

Timelines

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Big Bang Implementation

TestBuild

Upgrade: Plan, Launch &Design Deploy

Initial UpgradeAssessment

Initial ImplementationAssessment

PREPARE PERFORM• Top Down Analysis • Bottom Up Analysis PRESENT

PREPARE PERFORM• Top Down Analysis • Bottom Up Analysis PRESENT

Project Planning Workshop

Project Kick Off Resource Planning &

Onboarding

Environment Launch Gather Requirements Customizations: Retire,

Retrofit, Replace FIT-GAP: Discover, Deep

Dive, Decide Finalize Designs

Customization Retrofit New Tech Development Functional Configuration Test Moves to Production Test Preparation Training Development

System Testing Integration Testing Additional Test Moves

User Acceptance Testing

Training Production Cutover Production Support

Big Bang Phases

Implementation:Plan , Launch &

Design

How We Did It People

Combined DS and HLR teams bring ultimate synergies – One TeamCross representation agreement on business processesStrong executive sponsorshipHLR Adaptation to Change Strong SMEs- no turnoverStrong Implementation Partner

ProcessProven Drive MethodologyDisciplined project management Risk Identification and mitigation

ProgramsTools and TemplatesMinimal customizationsCleansing of data User training and system adoption

NameV8.8 AP Lead

NameV8.8 GL Lead

Steering Committee

HLR PM

One Project Team

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HLR

Drivestream

Business UsersStakeholders

FUNCTIONAL

PS Admin Lead

Infrastructure & Development Team

PS Technical Lead

InfrastructureTeam

PS Admin

PS Technical Dev Team

Project Support

Project Sponsors

Prod Support Team

NameFreedom AP Lead

NameFreedom GL Lead

Drivestream

PS Functional Leads

2 Functional Teams:

-Current V8.8

-New (Freedom)

Project Management

Success Factors Cross representation agreement on business processes

Strong executive Sponsorship

Strong SME resources- no turnover

Disciplined project management

One Project Plan

Risk Identification and mitigation

User training and system adoption

Minimal customizations

Cleansing of data

HLR Adaptation to Change

Strong Implementation Partner

Big Bang ChallengesRisks and Challenges

More Complex Project

Higher Risk Multiple Dependencies

Larger scope and Impact

Larger Project Team

Higher Initial Cost Investment

Shorter learning curve Less time to ‘learn’ from previous cycles/phases

Immediate and enterprise-wide changes

Mitigation Elements Client Executive Commitment

Funding

Steering Committee

Project Team PMO resources

Solid Implementation Partner

Senior leads and SME

Solid Project Management

Planning

Communication

Risk Management

Resource Management

Change Control

Proven and Effective Methodology Process Efficiencies

Tested Tools and Templates

Extended Testing Cycles

Dedicated Conversion Instance

High Activity and Morale

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Achieved Results

Deliverables Highlights Standardized and optimized business processes

Successful Migration from legacy systems

Rationalization of Headcount, roles and responsibilities

Single integrated ledger set to meet reporting, compliance, and processing requirements

PeopleSoft Enhancements Enhanced Financial Reporting including IFRS reporting New Business Units Structure New Chartfield Structure New Ledgers Structure Upgrade from V8.8 to V9.1 Effective Workflow Updated Security Model

Upgraded PeopleSoft Roles HelpDesk/Production Support SuperUser Workflow Administrator Security Administrator

Big Bang Benefits Minimized Implementation Time Minimized Project Cost Earlier Investment Return and Benefits Supported Corporate Reporting Deadline

Requirements Earlier re-deployment of Project Resources

back to Production Resource commitment and deployment at a

shorter cycle Change adoption not drawn out over a

longer time Allowed earlier sun setting of legacy

systems Shorter term commitment to the PS

implementation

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Take Aways

Top 3 reasons to Upgrade For Tools sake!

PeopleTools 8.50+ provides the Web 2.0 look and feel PTF – PeopleSoft Test Framework Type-ahead and enhanced search

Features, Features, Features! On an average each new version brings ~10-20 new features per module Each new version brings in new or enhanced interface/integration capabilities Newer versions are more e-friendly

Got support? Keep up with Oracle’s support policy Keep the application current with patches/fixes

Test, Test & Test Some More! User Acceptance Testing (UAT) was held in 2 locations

(Orlando, FLA and Denver , CO)

Key Users attended onsite UAT sessions

Full, detailed Test Scripts/Scenarios were executed across all modules

A Formal Defect reporting and resolution process was in place during testing

Extended Testing vs. Parallel Testing

All reported incidents were resolved prior to go-live

Recommendations

UAT is not intended to be a training session (manage expectations)

Make it a fun and rewarding experience for your users (e.g., casual dress, play games)

Show your appreciation!!! (e.g., give thank you gifts, provide breakfast/lunch, host customer appreciation dinner)

Conversion Lessons

Early Conversion in Dedicated Conversion Instance Conversion Instance locked down after conversion and reconciliation (2 Years Transactions)

Go Live Cutover Weekend:

Conversion Tables Migrated directly to Production Instance

Data Conversion only for last 2 Periods

When remapping Chartfields , convert ALL V8.8 historical transactions Issues with Cancellations, Reversals, etc.

Lessons Learned

1. IT + Business =joint discussion for planning

2. Strategy for Performance Testing

3. Experienced and dedicated Project Management Team

4. Plan for and include the latest maintenance packs as part of the upgrade process

5. Using an automated testing tool (PTF)

6. Using a robust tool for Issues management, especially Testing related