Project CornerStoneAtlanta OAUG

November 18, 2005Kriss Poll, Director, ERP DevelopmentNancy Patin, Director, Enterprise Resource PlanningDavid Fearnley, Director, IT OperationsErik Mogelgaard, Director, Data Center Operations

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About Cox• Multi-service broadband communications

company with approximately 6.6 million total customers in 23 regional markets

• The nation’s third-largest cable television provider

• High-speed Internet• Digital Telephone service• Cox Business Services offers commercial voice

and data services• New Wireless product line

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Free-Cash-Flow growth Sustaining StrategiesStrategy Capability

Integrated service bundling

Single integrated billing & back office system across all markets

Expanded retail push

Integrated collaborative supply chain

Increased revenue and margin

Scaleable and visible assets/capabilities

Customer insight Standardized customer and product data

Source: Cox Long Range Plan – Corp. Base Case (11/02)

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Cornerstone – Supporting our Strategies

The first phase of a multi-year program focusing on improving our financial, supply chain, and capital management tools.

JDEReplacement

Business Drivers

Capital Projects

SupplyChain

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Benefits IdentifiedSarbanes-Oxley Makes regulatory compliance more manageable

Strategic ObjectivesEnables a variety of initiatives such as the retail distribution strategy

Critical Management InformationDelivers profitability analysis, Streamlined Capital Project Tracking, and more accurate and timely revenue reporting

Delivers significant financial benefits:We expect this program to deliver nearly $130 million in cash flow improvement over a four year period

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Wave 1 Goals• Establish foundation for future business operations• Integrated technology applications for finance,

accounting, supply chain management and capital management

• New reporting capability that will leverage the strength of Oracle as well as existing reporting methods

• Oracle enabled process improvements inherent in the software - Off the Shelf Version of Oracle

• Future stability and flexibility of CCI’s technical infrastructure

CPE process standardization

Sourcing & contract compliance

Demand & supply planning

Purchasing Inventory Item master

standardization Warehouse mgmt

Regional planning Supplier

collaboration Strategic sourcing

404/SOX Compliance Workflow Financial analysis Financial budgeting

& forecasting

GL, AP, AR Program cost Tax management Fixed assets

Long term planning

Income tax planning

Capital transparency

Budget Integration

Capital project tracking

ROI Measurement

Wave 1:Technology

Wave 2:Process

Optimization

Wave 3:Strategy/

Transformation

Short-term

Long-term

Supply Chain FP & A/Accounting

Capital Planning

Project Scope

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Wave 1 Schedule• March 2004 - Selected Capgemini

• May 2004 – Selected Oracle

• January 1, 2005 – Three locations and Corporate Live

• April 1, 2005 – Nine systems converted

• July 1, 2005 – Final seven systems

All milestones on-time, on-budget

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eBusiness Suite• Assets • General Ledger• Inventory• iProc• Incentive Compensation• Payables• Purchasing• Receivables• Warehouse Management• Projects

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Third-party applications• Vertex – sales and use tax• More4Apps – capital projects workbench• Noetix views – packaged Discoverer

views• Applimation – Configuration management• Kintana – Migration control

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Challenges• Linux

– Decision Made in August 2004– Timing, not the decision slowed development

• Hurricane Ivan– Impacted one of our ‘pilot’ cable systems

• New Data Center– Migration in November and December 2004

• Privatization• Selling 15% of our subscribers

– 4 Markets announced on eve of April go-live

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Challenges (cont.)• Incentive Compensation

– Used for Programming Cost Calculations, not sale commissions

– Orphaned project team– Conflicting milestones– Did not engage Oracle Consulting Services

enough for overall design– Good tool, hampered by unevenly applied

project management principles

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Success Factors –Governance• Strong Sponsor and Active Executive Steering

Committee– Defined Guiding Principles– Define Decision Process, most resided in the teams

• Strong PMO team• Team Mix

– Over 120 full- and part-time members– Team Leads were all Cox Employees– Shadowed with senior Capgemini consultants– OCS SMEs on each team

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Success Factors –Vanilla• Well defined criteria and approval

process• 16 customizations

– Excluding reporting• Less than 1000 hours of development• Did not budget for customizations

– Required steering committee budget approval

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Success Factors – End User Focus• Originally our major roadblock

– Did not want to repeat previous experience

• Genuine inclusion of the users– Field focused, not a corporate application

• Change Ambassador Program– Primary contact for all local activities and

communications

• Field Training resources– Local Users comprised 70% of training resources

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Motivation for Linux Decision• Why Consider Linux

• Control and reduce escalating costs associated with I.T.• Continuous availability and increased resource utilization

• Initial Steps• Redhat Study - position Intel/Redhat• Everything Microsoft - In depth analysis & options for

application migration to Intel/Microsoft/l Platform• Review SUN Roadmap• Review ORACLE Roadmap

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Approach for Linux• Action

• Initial Steps – triggered hybrid direction.• Breakdown financial cost allocation.

• Stimulated a focus on portability of Oracle• ORACLE Corporation

• Commitment to Linux• GRID Computing, Real Application Cluster

Implemented RAC/Solaris 2003 for High availability.• Lower risk Application migration

Oracle/Linux (vs) Microsoft Conversion. • Minimal retraining of staff.

• Successfully migrated Operational Infrastructure to Linux for validation.

• Vendor Alignment, Consolidation• Industry Performance benchmarks

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Infrastructure

• Oracle Applications 11.5.9 • Oracle Discoverer 10g (9.0.4)• Oracle Database Server 9.2.0.5• Oracle Forms/Reports 6i with Patch set 16• Oracle J-initiator 1.3.1.9• Oracle ADI • Oracle Enterprise Manager Grid Control 10g• Oracle Clustered File System• Red Hat Enterprise Linux ES release 3

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11.5.9 Production Environment

Database Servers9.2.0.5 RAC DatabaseCluster ManagerVertex dataOEM 10g Agent

11.5.9 Services -Forms 6i, Report 6i, -Jserv, Portal, MWA, -http/https-Concurrent Managers

-OEM 10g Agent-J2EE services for Vertex

Dell 6650

catlmsxp82

Dell 6650

catlmsxp83

Dell 6650

catlmsxp84

Load Balancer

Dell2650

catlmsxp85

Dell2650

catlmsxp86

Dell2650

catlmsxp87

Dell2650

catlmsxp88

Discoverer 10g and11.5.9 Services

Identity Management Services (10g):- Oracle Internet Directory- Oracle Directory Integration and Provisioning- Oracle Delegated Administration Services-OracleAS Single Sign-On-OracleAS Certificate Authority

-RMAN Catalog

-OEM Grid Control

-OEM 10g Agent

OID Prod EnvironmentApps

Server10g

OID

AppsServer

10g

DBServer

DBServer

PERP

Technical Architecture

Custom InterfaceConcurrent ManagersInbound and outboundinterfaces

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Linux Conclusion• Results

• Oracle Financials on Intel/Redhat successful• Implementation costs for hardware and software reduced

over 50%• Server infrastructure 50% idle during peak usage

• Additional Benefits• Oracle Internet Directory OID – Active Directory• SOX Compliance• Expanded usage OID

• Oracle GRID Continuation• Linux facilitates hardware portability

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Future In Motion• Acknowledge

• Increased Care & Feeding for Linux environment• Downgrading from 64-bit to 32-bit architecture

• People overhead - 15% due to reduced ease of management.• Boost in Intel capacity – Overcompensated for less mature

software.• Reintroduce 64-bit when needed.

• Foundation built for Horizontal Scalability & GRID computing• Guarantee efficiency and utilization of hardware.

• Commitment• Billing System• PeopleSoft 8.9• Oracle Database Applications

Cornerstone Service Reliability Logical Diagram

Return to Presentation

Oracle Discoverer 10g:catlmsxp88

Internal LoadBalancer Farm

catl0ds01catl0ds02

Oracle OID/SSO Clustercatlmsxp79catlmsxp80

OEM 10g Mastercatlmsxp80

PERPOracle 9i RAC Clustercatlmsxp82 (PERPA)catlmsxp83 (PERPB)catlmsxp84 (PERPC)

END USERS ACCESS / AUTHENTICATION

APPLICATION AND DATABASE

STORAGE/OUTPUT/

DEPENDENCIES

LANDT_SRV_6513_1DT_SRV_6513_3DT_SRV_6513_2DT_SRV_6513_4

COMM

Duke DriveServer SwitchesDT_SRV_6513_1DT_SRV_6513_3DT_SRV_6513_2DT_SRV_6513_4

COMM COMM

Oracle Financial Application Cluster:(eBusiness Suite 11.5.9)

catlmsxp85catlmsxp86catlmsxp87catlmsxp88

Cox EmployeeMSIEv6

Jinitiator 1.3.1.9

VPNDT_DIST_6509_1DT_DIST_6509_2

Dual AttachedSAN FABRIC

ddf01dir01ddf02dir01

EMC DMX Storage:DDCX701DDMX501

Financial Service (Cornerstone – Oracle Financials) Diagram: Logical Version: R0006

Date: 2005/07/12 Cox Proprietary Information – Internal Use Only Change History: See Attached Page

BACKUPS

PINFAPRDINFRAcatlmsxp77Authentication

Synchronized with Active Directory

Dialup/PPP

Cox EmployeeMSIEv6

Jinitiator 1.3.1.9 Remote Dialup

BillingJDEdwards

PeopleSoft Bank of America

9

8

8

8

14

14

8

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E-Business Home Page:

http://coxerp.corp.cox.com

URL - Cornerstone: Discoverer 10g Plus

http://cornerstone.corp.cox.com100%

100%

100%

100%

99.90%

100%

99.96%

100%

100%

100% 100%98.43%

98.37% AUG 2005

100%

99.97%

99.96%

100% 99.98%

100%

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Data used in series callculation

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Contacts• Kriss Poll

– Director, ERP Development– kriss.poll@cox.com– 404-269-8747

• Nancy Patin– Director, ERP Systems– nancy.patin@cox.com– 404-269-7295

• David Fearnley– Director, IT Operations– david.fearnley@cox.com– 404-269-8244

• Erik Mogelgaard– Director, Data Center Operations– erik.mogelgaard@cox.com – 404-269-8441