The road to Oracle Cloud – Financials, Payroll & HCMInoApps Globe Event – Wednesday 28th September 2016

Bob MunroChief Financial Officer

Agenda

• Overview of Callcredit

• The case ( desperate need !) for change

• The vendor selection process

• Project Scope & (original…..) plan

• What actually happened & status today

• Benefits Realised & Lessons learnt

• Questions

Callcredit – Our history & growth

With consumer data at the heart of everything we do, the

business builds on a strong heritage established over the last

15 years serving credit and marketing professionals.

2003 2008 2010/11

2000 2007 2009 2012

2014

Callcredit, EuroDirect (est.

1991) and GMAP (est.

1997) were brought

together under the

name Skipton Information

Group.

Broadsystem

(est. 1984)

was acquired.

Renamed Callcredit

Information Group

Further acquisitions –

pbl, Latitude,

The Trading Floor,

TenantID, GMAP Japan

KK was also formed.

Callcredit

was

formed

Legatio and Decision

Metrics were acquired.

Opened a regional

office in Japan

Management team led a

Management Buy Out (MBO)

backed by Vitruvian Partners,

a private equity business.

Noddle Limited and

Callcredit Operations

UAB (Lithuania)

were founded.

Acquisition of Coactiva.

Management team led an

MBO backed by GTCR,

a private equity business.

2013Acquisitions of

Lifestyles Online.

GMAP China opened

in Shanghai.

2016Acquisition

of Numero.

Application

to FCA.

3

Acquired Recipero 26 Sep

The need to transform Finance within Callcredit

£

m

Total cost of Finance

Other

IT

Labour

2013 2014 2015 LV

Key Metrics 2013 2014 2015

Finance cost as % revenue

High Higher Even Higher

PwC Benchmark

- All companies (median) 0.93% Key Trend –reducing costs

- Financial services (median)

1.48%

FTEs (incl. MSD billing) 50 54 61

Systems are a significant driver of overall finance costs, heightened control risk and reduced finance effectiveness.

Total cost growth (%) of finance function (incl. biling) outpacing sales growth - Total costs significantly > median benchmark

Processes & controls • Ability to adopt best practices impaired• Transactions - inconsistent processes / multiple G/Ls• Reporting / Planning – entirely spreadsheet based• Controls predominantly manual & retrospective

People / Organisation• High attrition & declining engagement ; • Commercial finance / business partners spend majority

of time “data gathering” vs business insight / analysis• Strong appetite for change

Current trajectory

Target

Strategic / growth priorities of business demand finance rebalance resources & activities to business partnering, that processes are cost efficient and control/risk framework aligned to best practice

• New finance system key enabler of all 3 core objectives

CRMMicrosoft Dynamics CRM 2013 / Bizagi / CallPro

Usage Billing(iDynamics Tardis)

FinanceSage (Credit)

BIMicrosoft SQL Server 2012 / MDS

TimesheetsKeydin

HRNGA

Empower

PayrollNGA

Empower

ExpensesConcur

Micro

soft O

n P

rem

ise(O

ffice 20

10

, Exchan

ge 20

07

, Lync 2

01

3, Sh

arePo

int 2

00

7 / 2

01

0)

FinanceSpread -sheets

Current systems do not meet current / future needs - fragmented landscape, old technology, high spreadsheet dependency in finance

FinancePegasus (MSD)

FinanceExchequer

(MSD)

FinanceSpread -sheets

FinanceSpread -sheets

FinanceSpread -sheets

FinanceSpread -sheets

FinanceSpread -sheets

Fin

ance

/ H

R –

Tran

sact

ion

al S

yste

ms

incl

. b

illin

gB

ud

geti

ng/

Fore

cast

ing

/ R

ep

ort

ing

HR / Payroll • Current system not fit for purpose -

unsupported in 2016

• Weak MI & business intelligence

• Minimal process automation capability

Finance • Limited integration of past acquisitions

• No planning /reporting tools

• Cannot support key MI needs

• Inconsistent data structures

HR & Finance• Low run costs

• Disaster Recovery capability weak

• Limited / no international functionality

CRMMicrosoft Dynamics CRM 2015 / CPQ / ActiveDocs

Micro

soft O

ffice 3

65

/ Oth

er M

S Clo

ud

Service

s(O

ffice, Exchan

ge, Lync, Sh

arePo

int / P

ow

er BI, A

zure Services)

BIMicrosoft SQL Server 2014 / MDS

Usage Billing(iDynamics Tardis)

Budgeting, Planning / Forecasting and Reporting

Transactional Finance System

Supplier:Procure-to-Pay

Billing:Invoice-to-Cash

Asset:Acquire-to-Retire

Projects:Time -sheets

G / L:Record-

to-Report

HR Payroll Expenses

High level / Key Requirements

• Integrated finance / HR system, unless material functionality gaps warranted “best in breed” approach

• Configurable systems, incorporating best practice processes / workflow automation (incl. mobile), built on open framework for flexible integration

• Proven solutions from established vendors, committed to ongoing development of full suite of applications

• Systems delivered as SaaS/hosted,

with cost effective licensing & support models

Target end state – a fully integrated, scalable, cost effective solution that provides the business with leading functional capabilities

Summary Assessment – Oracle & InoApps emerged as preferred vendor, based on functionality, ability to deliver & cost

Vendor Scoring - Summary

• SAP has marginal technical, support and HR functional capability advantages over Oracle.

• Oracle proved significantly stronger product adoption rates, the suitability of the implementation partner and finance functional capabilities.

• From a Total Cost of Ownership perspective Oracle is a clear winner.

• Net total cost of Oracle solution & annual P/l impact to be further narrowed through contract negotiation

General 80% 38%

Implementation Partner 80% 30%

Technical 56% 62%

Functional Capability - Finance 75% 65%

System Integration 70% 70%

Support and Maintenance 50% 60%

Costs 65% 30%

Vendor Selection Process

• Long list identified through bench research , discussions with professional advisors & peer companies

• High level technology / functional assessment - short list of 3 vendors

• Detailed assessment scope - total cost of ownership, functional & technical requirements, delivery capability / vendor attributes

• Process commenced early May, targeted to conclude end July

Original Plan - New Finance & HR system will be implemented in phases through to July 2016

2015 2016

Today

Jul Sep Nov 2016 Mar May Jul

GTCR Board Approval7/30/2015

Contracts Signed8/31/2015

Project Start9/1/2015

Global Design Complete

10/12/2015Phase 1 Delivered into Production1/25/2016

Phase 2 Delivered into Production7/11/2016

7/30/2015 - 8/31/2015Contract Setup

9/1/2015 - 10/12/2015Global Design

10/12/2015 - 1/25/2016

Billing 10/12/2015 - 1/25/2016

Core Financials

10/12/2015 - 1/25/2016Procure to Pay

10/12/2015 - 1/25/2016Project Accounting

10/12/2015 - 1/25/2016Payroll

10/12/2015 - 1/25/2016Core HR

2/15/2016 - 7/11/2016Planning and Budgeting

2/15/2016 - 7/11/2016HR Phase 2

7/12/2016 - 8/9/2016Post Implentation Support

Implementation plan - Post design and CRP -end date retained, phased drops

February March April May June July August

Data

Design CRP TestingSystem Available to Callcredit 28/7

Production Handover29/2

Full Launch04/4

HCM Phase 1

HCM Phase 2

Payroll

Finance

Service Management

Decommission

P1 P215/3 29/3 14/4

DL

Drop 1

Drop 2

Drop 3

Drop 4

Drop 5

Contract and Build Handover Handover Handover Handover

Requirements Decommissioning

29/2

04/4

01/5

01/6

15/7

• HCM – Phase 1 data migration, core self service functionality ; Phase 2 –Learning & development, performance management

• Payroll – 3 months parallel running, comprehensive testing

Project CORA - Financial Scope & Phasing

Drop 1 - March

GENERAL LEDGER

Tenant ID Limited

Coactiva Limited

Crown Acquisition TopCo Ltd

Crown Acquisition MidCo Ltd

Crown Acquisition MidCo2 Ltd

Crown Acquisition BidCo Ltd

Crown Acquisition Consumer Limited

Drop 2 - April

ACCOUNTS PAYABLE / ACCOUNTS RECEIVABLE / CASH MANAGEMENT

Process Benchmarking Limited

Callcredit Data Solutions Limited

Callcredit Information Group Limited

Latitude Digital Marketing Limited

Drop 3 - May

• FIXED ASSETS

• Callcredit Limited

• DecisionMetrics Limited

• Callcredit Consumer Limited

• Callcredit Public Sector Limited

Drop 4 – June

• INTERCOMPANY

• Callcredit Marketing Limited

• Callcredit Lead Generation Limited

• Project Numero (Acquired Feb 2016)

Drop 5 - July

• EXPENSES (TBC)

• PROCUREMENT (TBC)

• PBCS

• PROJECTS

• Callcredit Operations UAB

• GMAP Japan / GMAP Shanghai

10 Oracle finance modules, 21 legal entities, 13 business units

Overall Project slipped 1-2 months against aggressive timetable

February March April May June July August

Data

Design CRP TestingSystem Available to Callcredit 28/7

Production Handover29/2

Full Launch04/4

HCM Phase 1

HCM Phase 2

Payroll

Finance

Service Management

Decommission

P1 P215/3 29/3 14/4

DL

Drop 1

Drop 2

Drop 3

Drop 4

Drop 5

Contract and Build Handover Handover Handover Handover

Requirements Decommissioning

29/2

04/4

01/5

01/6

15/7

• Payroll – 2cnd Implementation in UK of wholly new system – required extended testing / software fixes – Oracle highly engaged

• HCM – Data migration delays – issues with legacy data, migration capabilities

Callcredit Oracle Cloud Financials – Staus as at 28th September

Drop 1 – March COMPLETE• GENERAL LEDGER• Tenant ID Limited• Coactiva Limited• Crown Acquisition TopCo Ltd• Crown Acquisition MidCo Ltd• Crown Acquisition MidCo2 Ltd• Crown Acquisition BidCo Ltd• Crown Acquisition Consumer Limited

Drop 2 – May COMPLETE• ACCOUNTS PAYABLE / ACCOUNTS RECEIVABLE

/ CASH MANAGEMENT• Process Benchmarking Limited• Callcredit Information Group Limited• Latitude Digital Marketing Limited

Drop 3 – July COMPLETE• FIXED ASSETS• Callcredit Limited• Callcredit Consumer Limited• DecisionMetrics Limited• Callcredit Public Sector Limited• Callcredit Marketing Limited• Callcredit Lead Generation Limited• Callcredit Data Solutions LImited

Drop 4 – August

Drop 5 – September ON TRACK• PBCS

October ON TRACK• Release 11 Upgrade

The remaining modules to be implemented between Q4 2016 and Q1 2017 – Procurement / Expenses / Project Accounting

The Release 11 Upgrade has caused us to ‘pause’ project activities

Financials

Payroll – 3 months completed , o/s issues being progressively addressed ;HCM – Strong user adoption and acceptance ; MI and reporting issues

Status as of 28th September 2016

7 holding companies live on Oracle Cloud Financials (GL)

10 business units live on Oracle Financials (GL/AP/AR/CM/FA)

Oracle Cloud HCM (phase 1) live

Oracle Cloud Payroll live

Callcredit is the first company in the UK to go live at the same time with Oracle Cloud HCM, Financials

and Payroll

All in 11 months

It can be done!(but not without some pain)

10 Lessons Learnt from Oracle Cloud Financials Implementation

• RESOURCING - this is not a “side of desk activity” ;• During the planning phase the number of subject matter experts required for design,

build and testing. Take this number, then double it.

• DESIGN – Conference Room Pilots critical phase of design phase• Output is what gets built ; requires significant engagement from future users ( beyond

project team ) ;

• Makes sure you have “challengers” ; everyone’s learning , some are just more expert

• DATA MIGRATION / INTERFACES – Legacy data issues, master data models, limited automated migration capabilities

• CONFIGURATION / ENVIRONMENT MANAGEMENT• Rigorous controls required to ensure alignment across test, production environments

• Lack of Automated tools - each environment “configured by hand”

• SYSTEM / CONFIGURATION DOCUMENTATION

10 Lessons Learnt from Oracle Cloud Financials Implementation

• ORACLE FUSION IS NOT E-BUSINESS SUITE • Very good but developing product - gaps in functionality, tools and integration across

platform

• PAYROLL IS A NEW PRODUCT – Very strong Oracle focus & support• Went live with work arounds ; being addressed through R11 & R12

• BEST PRACTICE PROCESSES STANDARDS – “Out of the box” configurable processes very good, but some gaps

• SERVICE MANAGEMENT – Fragmented E2E service/ support model, requires very strong governance & supplier management

• WELCOME TO THE CLOUD - Patch updates, semi annual major releases• Impacts on resourcing / skillsets, testing, ongoing change management

Cloud Drivers vs Benefits Realised

Source: Enterprise Performance Management, Top Trends for 2016, Oracle, September 2016

In context of Cloud EPM, the top two cited benefits realised are getting results faster and improvements in the service received.

Benefits Realised To Date by Callcredit from Oracle Cloud Financials

• Integrated HCM, Payroll and Finance System• The bulk of Callcredit’s costs are human capital costs. An integrated system

allows these costs to be seamlessly posted to the General Ledger, analysed and reconciled.

• Secure, stable infrastructure, hosted in state-of-the-art data centre• Less downtime, outages, system failures etc.

• Single finance system with new global chart of accounts• Common ‘finance language’ across the department/companies etc.

• ‘Real time’ reporting through ‘on the fly’ build of the Balances Cube• Elimination of the prior need to continuously rebuild the reporting cube during

the month-end process.• Continuous processing in the Accounts Payable Department

• AP now can begin to process invoices in the next period from working day 3 (previously it was working day 10).

• Replica invoices populated in Accounts Receivable• Leveraging the InoApps data transformation tool, InoHub a monthly upload of

billing data allows full itemised invoices to be loaded in AR, facilitating cash collection.

Benefits Realised To Date by Callcredit from Oracle Cloud Financials (cont.)

• Invoice Approvals workflow (for unmatched invoices) allowing for time-saving across the AP department.

• Processing efficiencies from implementation of Procurement and Invoice Imaging

• Elimination of spreadsheets and process efficiencies from the implementation of PBCS (expected by 30th September).

• Elimination of the Group Allocations spreadsheet(s) and process efficiencies from the implementation of Calculation Manager (expected by 31st October).

Q&A