1

Implementing a Unified Group Financial Reporting System using OutlookSoft

Fred Squire

Atos Consulting on behalf of GUS plc

BPM Partners: Make it Live in 2005

19th April 2005

2

• GUS plc

• Why GUS wanted to improve our Group reporting

• How GUS managed the project

• Why GUS selected OutlookSoft

• What GUS have learned

• Where GUS are now

3

About GUS plc …

• Retail and business services group

• FTSE 100 company with sales of £7.5bn and profits of £827m

• GUS plc comprises :

• Argos Retail group; Argos, Homebase, Financial Services, Wehkamp

• Information and customer relationship management services through Experian

• 66% shareholding in the luxury goods company Burberry

• 51% shareholding in the South African retail group Lewis

• Each Division trades in a different market place, as a consequence, they operate in an autonomous way

4

Why GUS wanted to improve Group reporting?

•IFRS compliance

•Address existing system limitations (distributed architecture)

•Automate management and statutory reconciliation activities

•Improve confidence in the reported numbers

•Reduction in the time spent on low value reconciliation activities

•Faster data collection

•Faster Board reporting

•Improve audit compliance

•Flexible platform for future improvements

5

The approach that GUS used

•GUS have worked in three phases

•Phase 0: Feasibility•Review our existing management and statutory

processes •Produce a feasibility study

•Phase 1: Design and Selection•Develop the high level ‘To Be’ processes•Develop the Single Application Design•Develop the Entity Maps•Design the Request for Proposal and Evaluation Criteria•Produce the Case for Change•Project launch and vendor selection•Vendor due diligence

•Phase 2: Implementation•Build the application •Document the application•Migrate the historic data from our Hyperion StatRep

application•Test the application•Training the users

6

Selecting OutlookSoft …

• GUS did an extensive evaluation of the marketplace:• Reviewed 9 software packages• Invited 5 vendors to respond to an RFP • Invited 3 vendors back for an informal demonstration • Because OutlookSoft was a new vendor GUS carried out

extensive international Due Diligence

• The same 3 vendors were then invited to demonstrate to each of the Divisions during a formal 2 day session

7

• GUS selected Everest as the favourite for a number of reasons:

• The interface was Excel• Ease of use• Truly unified and scalable• Fast implementation• Flexible reporting• Level of supplier commitment• Can accommodate our inherent complexities

"During our selection process, we whittled the contenders down to three main products. The reason that OutlookSoft's product was selected was down to

reputation and standing in the marketplace. The fact that Everest also makes use of Excel was a key factor in our final decision. Everyone in the accounting world is

familiar with Excel so, in choosing that intuitive interface, we knew we could minimise training costs and ensure rapid user adoption.“

Martin Boden, Group Financial Controller

Why GUS Selected OutlookSoft …

8

Build and Execute Reporting environmentProcess EnhancementDesign Single ApplicationSystems Selection

Phase 1 (Design & Selection)

Phase 2 (Implementation) Phase 3 (Post imp. review)

Post Implementation Review

• Design reporting process and assess divisional/group implications

• Assess appropriateness of support tool

• Develop Group reporting inventory

• Design/map entity structure for single database

• Assess implications for data sources

• ITT (Invite to Tender) for system reporting software

• Produce divisional/group road map for implementation

• Board approval of business case

• Change management (training, process documentation)

• Prioritise, design and mobilise the implementation work streams

• Initiate key ‘must-do’ steps

• Implementation of agreed projects / initiatives

• Testing, user acceptance, parallel running, switchover (including data migration)

• Ongoing tracking, coordination and assurance around programme delivery for each work stream

• Change management (training, documentation)

• Ongoing support of new processes and systems

• Ensure statutory reporting cycle performs as expected

• Ensure divisional improvements

Mar

2004

Apr May Jun Jul Aug Sep Oct Dec Jan

2005

Feb Mar Apr

Where GUS are now…Nov

9

What GUS built…

A combined system capable of:• IFRS compliant statutory consolidation and reporting• Management consolidation, KPI’s and reporting• Budget & forecast collection and reporting

• Clever stuff:• Reporting in multi exchange rates simultaneously while only

storing input data once in the system• Ability to consolidate using different exchange rates by

division• Uses 11 dimensions and 3 cubes• Early adopter of Zoom logic • Full statutory calculated cash flow • Extensive use of SQL logic, expansions and eAAG controls

• Physical scope:• Global user base• 5 separate IT infrastructures, policies, software, hardware and

standards

10

All of this is true but there are some learning's …

• This should be a relatively simple implementation, it is after all only a glorified adding machine!

But

• When using a new software package don’t underestimate the need for vendor resources

• Project management is a full time activity

• Develop a clear plan for dealing with changing requirements e.g. IFRS

• Put your best qualified accountants and system accountants on the team

• Don’t underestimate the Change Management workload i.e. regular Divisional communications / visits/common project plan and user “buy-in”

• The importance of having dedicated project facilities and IT support

11

•A common platform for users to submit their financial information to Group

• that captures, stores and reports; Budget, Forecast and Actuals data within one environment

• that has been built on the principle that:“There will be one version of the truth”

From 1 January 2005 GUS have …

“… and GUS have built and tested it in 6 months”

“It used to take two weeks to produce one monthly report. With the new system, we're hoping to reduce that to just one week. That time saving will

prove invaluable in freeing up staff to work on other more value-added tasks and analyse performance to aid decision making.“

Martin Boden, Group Financial Controller

12

Contact Details

For further information and questions please contact:

Natalie Chiang, Financial Planning & Analysis Manager – GUS plc

OutlookSoft UK User Group Chairperson020 7495 0070 Natalie.chiang@gusplc.com

OutlookSoftMark Atkinson, Client & Partner Relationsmatkinson@outlooksoft.com

Atos ConsultingFred SquireFred.Squire@atosorigin.com