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QuestDirect. org Total Cost of Ownership for PeopleSoft Applications Panel Discussion Session 101820
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QuestDirect.org
Total Cost of Ownership for PeopleSoft Applications
Panel DiscussionSession 101820
QuestDirect.org
Agenda
Introductions 5
What is Total Cost of Ownership (TCO)? 5
Why is TCO important? 5
How do we calculate TCO? 25
Open discussion 10
QuestDirect.org
Introductions• Carmen Mazza
– Manager of HRIS and Payroll– Securian Financial Group– [email protected]– 651.665.3659
• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– [email protected]– 612.316.1518
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: HCMLabor + 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: HCMLabor + Mainframe + Middle Tier + Licensing
Active employees (ALP)
$9.2MM + Mainframe + Middle Tier + Licensing277,000 ALP
=$65.22 per EE per year
QuestDirect.org
Securian’sTCO Formula: HCMSalaries + 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, 2014Sands Expo and Convention CenterLas Vegas, Nevada
Save the Date
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 101820• Carmen Mazza
– Manager of HRIS and Payroll– Securian Financial Group– [email protected]– 651.665.3659
• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– [email protected]– 612.316.1518
