Big Bang Implementation Approach:Financials V9.1 Upgrade & New
Implementation
Michele PaulAVP Assistant Treasurer, Strategic Finance and Management ReportingHannover Life [email protected]
Mario SanchezSr. DirectorDrivestream [email protected]
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
Slide heading
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