why upgrade to peoplesoft enterprise 8.8 hcm: … a business case to upgrade from peoplesoft...

Why Upgrade to PeopleSoft Enterprise 8.8 HCM: Building a Business Case to Upgrade from PeopleSoft Enterprise 7.5 An Oracle White Paper August 2003

Why Upgrade to PeopleSoft Enterprise 8.8 HCM: Building a Business Case to Upgrade from

PeopleSoft Enterprise 7.5

Overview............................................................................................................. 4 What Is the Business Benefit of Upgrading?................................................. 4

Reduced Costs............................................................................................... 4 Administrative Savings ............................................................................ 4 IT Savings.................................................................................................. 6

Increased Productivity.................................................................................. 7 Strategic Human Capital Management ...................................................... 8

Increased Depth and Breadth of Existing Solutions.................................... 8 New Products Now Available ......................................................................... 9

Expanded Self-Service ................................................................................. 9 Continued Investment in Core Human Capital Management ............... 9

Oracles PeopleSoft Enterprise Recruiting Solutions ......................... 9 Oracles PeopleSoft Enterprise Global Payroll.................................. 10 Oracles PeopleSoft Enterprise Stock Administration ..................... 10 Oracles PeopleSoft Enterprise Directory Interface ......................... 10

Enhanced Solutions for Employee Performance .................................. 10 PeopleSoft Enterprise Learning Management ................................... 10 Oracles PeopleSoft Enterprise ePerformance .................................. 11 Oracles PeopleSoft Enterprise HelpDesk for Human Resources . 11 Oracles PeopleSoft Enterprise Sales Incentive Management ......... 11

New PeopleSoft Enterprise Workforce Analytics Solutions for Measurement and Management Excellence............................................ 12

Oracles PeopleSoft Enterprise Workforce Analytics....................... 12 Workforce Portal for Role-Specific Access ............................................ 12

Oracle s PeopleSoft Enterprise Portal, PeopleSoft Enterprise HRMS Portal Pack ................................................................................. 12

Global/Country Depth .................................................................................. 12 Global Architecture .................................................................................... 13 More Countries ........................................................................................... 13 More Products............................................................................................. 13

Technology Advantage ................................................................................... 13 Reduced Costs............................................................................................. 14 Increased Efficiency ................................................................................... 14 Improved Productivity............................................................................... 14

Why Upgrade to PeopleSoft Enterprise 8.8 HCM Page 2

Case Study ........................................................................................................ 15 CUNA MutualReversing the Value Pyramid in Nine Months Flat 15 The HartfordImproving the Employee Experience Starts with an Upgrade ........................................................................................................ 16 BaxterUpgrade and Global Implementation Saves Millions............ 16

Upgrade Services ............................................................................................. 18 Upgrade Strategy Workshop ..................................................................... 18 Upgrade Planning Workshop.................................................................... 18 Technology Strategy Workshop ............................................................... 18 Solution Center, Offshore, PeopleSoft Hosting, Remote, and Hybrid Solution Offerings ...................................................................................... 19

Next Steps ........................................................................................................ 19 Summary ........................................................................................................... 21 Appendix .......................................................................................................... 22

The PeopleSoft Enterprise 8.8 HCM Solution Matrix.......................... 22


Why Upgrade to PeopleSoft Enterprise 8.8 HCM: Building a Business Case to Upgrade from

PeopleSoft Enterprise 7.5

OVERVIEW There has never been a more important time to maximize the value of your investment in enterprise applicationsthey can help drive more informed decisions, optimize resource usage, and improve business performance. Yet many organizations are not maximizing the potential of their enterprise applications because they are not making effective use of available technology.

Proving the value of your IT investment and showing hard-dollar return on

investment (ROI) is paramount in todays tough business climate. Managers who want to upgrade all or part of their HCM

environment must be able to articulate the business benefits. This white paper is about helping you articulate the value Oracles PeopleSoft

Enterprise applications and technology can deliver to your organization. You will see how other customers have realized real business benefits by upgrading from Oracles PeopleSoft Enterprise 7.5 to Oracles PeopleSoft Enterprise 8 HCM. You will see how you can accomplish an upgrade in a reasonable time frame, yielding a rapid return on investment, and fast time to benefit. Finally, you will learn about the tools that are available to you that will help you build a compelling business case for upgrading to PeopleSoft Enterprise 8. This paper contains the following sections:

WHAT IS THE BUSINESS BENEFIT OF UPGRADING? Proving the value of your IT investment and showing hard-dollar return on investment (ROI) is paramount in todays tough business climate. Managers who want to upgrade all or part of their HCM environment must be able to articulate the business benefits.

Reduced Costs Going from PeopleSoft Enterprise 7.5 to 8.8 can result in reduced costs. This cost reduction comes from two main areas: administrative and IT savings.

Administrative Savings

The first area for cost savings is administrative back office efficiency, which results from employee and manager self-service. We documented some of the gains made in this area by conducting a survey of all our new or upgrading customers in 2002. They stated the following:


Of new or upgrading customers, 66 percent saw a reduction in costs (cycle time, transactions, HR administration, or direct headcount).

Cost Reductions by Savings Area

On average, customers experienced up to 67 percent savings for employee self-service transactions and up to 59 percent savings for manager self-service transactions.

Before the release of PeopleSoft Enterprise 8, self-service was

limited to less than 40 transactions. Todays PeopleSoft Enterprise 8.8 release

offers more than 200. The five factors that contributed most to ROI were employee self-service,

Internet architecture, workflow, manager self-service, and time to best practice.

These findings are consistent with analyst reports. For example, according to Paul Hammerman, lead HRMS analyst from Giga, most companies can expect the following gains from implementing self-service:

Decreased processing costs by 60 to 90 percent.

Decreased cycle times from weeks to seconds.

Decreased HR phone calls by 50 percent.

Reduced HR errors by 75 percent.

Before the release of PeopleSoft Enterprise 8, self-service was limited to less than 40 transactions. Todays PeopleSoft Enterprise 8.8 release offers more than 200. Some examples of customers who have experienced tremendous savings by aggressively implementing self-service include:


US Bank

With 54,000 employees and a swath of merger activity, US Bank decided to upgrade to PeopleSoft Enterprise 8 HCM. They did so to take advantage of in-sourced payroll, benefits administration, and employee and manager self-service. As of June 2002, they had saved $1.6 million and are on track for saving $10 million over the next five years.

Toyota Motor Company

Toyota Motor Manufacturing North America needed a fast ROI to fund the upgrade. They are on track to achieve a 200 percent ROI on their implementation of the HCM suite and employee and manager self-service. The collaborative applications alone are projected to generate $7 million in direct cost savings.

Vail Resorts

Vail Resorts, manager of such ski and golf resorts as Vail, Heavenly, and Jackson Hole, upgraded to PeopleSoft Enterprise 8.3 HCM in 2001. Vail reported five-year-projected hard-dollar savings of more than $18 million for core HR/base benefits and self-service. To date, Vail has avoided costs of $950,000 for system and interface maintenance, reaped more than $250,000 in savings from reducing workers compensation overpayments now that jobs are correctly classified, and gained $350,000 in savings from employee self-services such as online pay stubs and profile management for its 12,800 employees. Vail has seen an overall decrease in cycle time of almost three weeks.

Vail reported five-year-projected hard-dollar savings of more than $18 million for core HR/base benefits and self-service. To

date, Vail has avoided costs of $950,000 for system and interface maintenance,

reaped more than $250,000 in savings from reducing workers compensation

overpayments now that jobs are correctly classified, and gained $350,000 in savings

from employee self-services such as online pay stubs and profile management

for its 12,800 employees. Process Before After

Pay stubs 17 days < 1 day

Employee profiles 10 days < 1 day

Recruiting services 8 days 2 days

Most of these savings come directly from the reduction of back office administrative personnel, paper, postage, and error rates, and elimination of systems and the maintenance of these systems. The PeopleSoft Enterprise 8.8 HCM release will drive even more substantial savings.

IT Savings

The second factor that contributes to cost reduction is decreased HRIT support. NTT Group (Nippon Telegraph and Telephone Corporation), for example, was able to remove 127 servers and 14,000 terminals by implementing PeopleSoft Enterprise 8 HCM. They reduced their total cost of ownership by 65 percent. In another example, Hewlett-Packard used the upgrade to remove four systems and migrate to a single global instance of PeopleSoft Enterprise 8 HCM. In the process, they saved $3 million and eliminated 195 full-time employees.


In addition to cost reduction, you are also able to extend the reach of your applications to others beyond just the power users, who have traditionally been the main users. Now anyone in the organization can sign on anywhere, anytime, on any web-capable devicefor example, the employee who wants to enroll in benefits but would like to review the options with his wife in the comfort of their home. Or the executive on the go who needs to approve promotions on her laptop from the airplane? Because PeopleSoft Enterprise HCM suite keeps no code on the client, everything is accessible through a standard browser.

Increased Productivity Upgrading customers can also expect to see savings from improved employee and manager productivity, which happens when users can easily and quickly access the systems that are most important to them. With the advent of ATMs, eBay, and Amazon.com, consumers are used to having easy access to products and services. They have come to expect the same in the business environment. This walk up and use accessibility is delivered in PeopleSoft Enterprise HCM through user homepages, intuitive breadcrumbs, enhanced workflow, and role-based delivery of information via our enterprise portal.

The enhanced user navigation released in PeopleSoft Enterprise 8 was a big hit for

us. With our HR homepage, our employees can quickly get to the information they

care about easily. People fought it at first, saying it was just giving them more

workbut now they cant live without it.

Chuck Moore Vice President of HRIS, WellPoint The enhanced user navigation released in PeopleSoft Enterprise 8 was a big hit for

us, says Chuck Moore, vice president of HRIS at WellPoint, one of the nations largest publicly traded healthcare companies. With our HR homepage, our employees can quickly get to the information they care about easily. People fought it at first, saying it was just giving them more workbut now they cant live without it.

The independent consulting firm, Cedar, recently conducted research on the impact of the enterprise portal and found that employee productivity increases between 15 and 29 hours per year from the combined benefit of single sign-on, a more intuitive user interface, simplified searches, and roles-based access. Other research organizations, such as Meta Group, indicate even higher productivity savings from a portal.

Serving personalized information through a branded portal was instrumental in increasing employee efficiency at Anadarko Petroleum, one of the largest oil and gas exploration and petroleum companies in the world. They used Oracles PeopleSoft Enterprise Portal to roll out upgraded HR, payroll, benefits, and time and labor. In addition to branding the portal with oil wells and company slogans, Anadarko took pains to deliver information to employees that was specific to their roles and interestsby location, job class, or a multitude of other variables.

At our site in Texas, for example, we have an HMO that is not relevant to the rest of the organization, says Scott Ramsey, HR, Corporate Administrative Systems. With the portal, its easy to filter that information out. Before the portal, it was sending everything to everyone. Consequently, the employee had to sift through mountains of useless information. The end result: less time sifting and searching and more time seeing the information you need.


Strategic Human Capital Management Through workforce analytics and access to new application functionality (Oracles PeopleSoft Enterprise Sales Incentive Management, PeopleSoft Enterprise ePerformance, and PeopleSoft Enterprise Learning Management), your organizations will have the ability to optimize your workforce, and drive behavior that reduces cost and creates maximum value. Managers can tie objectives to learning, recognize achievements with rewards, and link performance to promotions. The value is driven by putting the technologies into the hands of people who actually use it and by enabling management with the right tools to manage the workforce effectively.

Combining people and available technology creates a great opportunity or inflection point for HR in the organization. This change is accelerating, and people matter more today to the organizations performance. According to the Towers Perrin Talent Report, employees who understand how they can work toward corporate goals increase their engagement by 68 percent.

INCREASED DEPTH AND BREADTH OF EXISTING SOLUTIONS Since the introduction of PeopleSoft Enterprise 7.5, we have devoted more than 980,000 work-hours to enhance just core HRMS. And we invested an additional 1,600,000 work-hours in tools and technology across the PeopleSoft Enterprise product line. This means that our customers initial HCM investment continues to increase in value. You reap the benefit of better technology, usability, and features every time you upgrade.

Anadarko made the decision six years ago to go with PeopleSoft Enterprise

HRMS. Five years later, the system is still being enhanced, theyre staying up to date

with our business needs, and the globalization of the product has been a

great benefit to Anadarko. Quality code, quality people.

Scott Ramsey Supervisor of HR and Corporate

Administration Systems, Anadarko Petroleum

The most recent PeopleSoft Enterprise 8.8 HCM release has improved application functionality and improved levels of integration and performance.

From a technical perspective, PeopleSoft Enterprise 8.8 HCM offers enhanced navigation and provides a new and more intuitive way to navigate productively around your application environment. An enhanced user interface with various assisting technologies (such as screen readers for the visually impaired) substantially achieved the accessibility goals of Section 508 of the U.S. Rehabilitation Act. And we have added security enhancements that automatically create a row security permission list for each department manager, update existing manager permission lists, and remove the manager permission lists of employees who are no longer in a managerial position. Other enhancements include customized table views and the ability to check the spelling in all correspondence housed in the HRMS application.

From an application functionality perspective, we continue to add new features across the product line with every release. You can get a list of all the functional enhancements for the HCM product suite by reviewing the delta overview documents (PeopleSoft Enterprise 7.5 to 8.0, 8.0 to 8.3, and 8.3 to 8.8) that are available in Customer Connection. As an example, however, here are the most recent enhancements to our core HR application:


Position management. Enhanced defaulting scheme for position data and cloning for new positions that provides synchronized data across the enterprise.

Commitment accounting. Enhanced business process that ensures that your PeopleSoft Enterprise HRMS account codes will map accurately to your account codes for Oracles PeopleSoft Enterprise Financial Management.

Labor relations. Enhanced job change notification and approval process for easy employee transfers.

New country functionality. For France, Brazil, India, and Hong Kong.

NEW PRODUCTS NOW AVAILABLE

Expanded Self-Service The PeopleSoft Enterprise product family offers more than 200 self-service or collaborative applications. Specifically, they are Oracles PeopleSoft Enterprise eBenefits, PeopleSoft Enterprise eRecruit, PeopleSoft Enterprise eCompensation, PeopleSoft Enterprise eProfile, PeopleSoft Enterprise eDevelopment, e PeopleSoft Enterprise Equity, PeopleSoft Enterprise ePay, and the manager self-service applications PeopleSoft Enterprise eRecruit, PeopleSoft Enterprise eProfile, and PeopleSoft Enterprise eCompensation Manager Desktop. With these collaborative applications, you can instantly connect all your employees to their workforce processes. Employees and managers can make faster and more informed decisions, reducing the administrative burden for your HR staff.

Continued Investment in Core Human Capital Management The following products round out the PeopleSoft Enterprise HCM solution offerings.

Oracles PeopleSoft Enterprise Recruiting Solutions

Using an integrated recruiting system will enable your organization to hire strategically and retain key talent. This system will be the strategic differentiator for tomorrows top companies. According to the Talent Management Group, companies are reducing recruiting costs by at least 25 percent by automating the recruiting process in their organization.

By using PeopleSoft Enterprise Recruiting Solutions, you can recognize other savings, such as the reduction of excess recruiting fees, overpayment to contractors, postage, forms, and distribution, to name a few. According to Cedar, the time to create a requisition to hire is reduced by three hours per requisition, and the time to search and find qualified candidates is greatly reduced. The overall impact on a recruiters productivity is 15 percent. Cedar also states that organizations can reduce new-hire processing time by 30 minutes per new hire and reduce resume processing time by 75 percent.

According to Cedar, the time to create a requisition to hire is reduced by three hours per requisition, and the time to

search and find qualified candidates is greatly reduced. The overall impact on a

recruiters productivity is 15 percent.


Oracles PeopleSoft Enterprise Global Payroll

Your organization can benefit by providing accurate and timely payroll to your workforce, which will assist in eliminating errors and providing on-time payments. These two process efficiencies greatly assist in employee satisfaction and reduce compensation staff time by saving them from having to answer questions and resolving problems from inaccurate data. You will realize savings in the form of reduced overpayments by increasing the accuracy of payment information and keeping up with the constantly evolving global pay regulations, which impact withholdings and actual pay-out amounts.

Oracles PeopleSoft Enterprise Stock Administration

PeopleSoft Enterprise Stock Administration is the only stock application that has out-of-the-box integration with PeopleSoft Enterprise HR, PeopleSoft Enterprise Payroll, and PeopleSoft Enterprise Benefits Administration. This integration is key to providing lower cost of implementation and ongoing maintenance costs. Stock Administration integration also lowers the cost of ongoing management by automatically identifying changes in HR data, such as personal job data (terminations and leaves of absence) that impact an individuals eligibility to participate in stock plans.

Oracles PeopleSoft Enterprise Directory Interface

PeopleSoft Enterprise Directory Interface (PDI) facilitates the new hire process and greatly assists in optimizing the workforce. Additionally, by properly managing the security to your companys most valuable data, you can protect your intellectual property, which for most organizations is invaluable. A recent study conducted by the FBI revealed that data theft, from both inside and outside the enterprise, is the single fastest-growing cyber-crimeresulting in an average annual loss of $2.1 million per organization surveyed. Oracles PeopleSoft Enterprise Directory Interface will not only add a valuable level of security but will also assist in the onboarding process, achieved by giving new workers immediate access to information, applications, and the tools they need to do their job. When you have immediate access to applications, the new hire process is streamlined and employee satisfaction is immediate. The net result is that you have immediate productivity and shorter ramp time for the new hire, providing readily identifiable ROI through business process optimization.

A recent study conducted by the FBI revealed that data theft, from both inside and outside the enterprise, is the single

fastest-growing cyber-crimeresulting in an average annual loss of $2.1 million per

organization surveyed. Oracles PeopleSoft Enterprise Directory Interface

will not only add a valuable level of security but will also assist in the

onboarding process, achieved by giving new workers immediate access to

information, applications, and the tools they need to do their job.

Enhanced Solutions for Employee Performance

PeopleSoft Enterprise Learning Management

By automating manual registration tasks and aligning learning with corporate objectives with learning to the specific needs of individuals, your organization can quickly realize the business benefits from an enterprise learning management system. You can greatly reduce travel and administration costswhich, depending on the size of the organization, can amount to millions of dollars. Ramp times, also


known as the onboarding process, can be reduced by as much as 30 percent or more by automating the learning process.

Oracles PeopleSoft Enterprise ePerformance

PeopleSoft Enterprise ePerformance will help your organization build a bridge between businesses strategies and employee execution, so that the workforce activities are in line with corporate objectives. Todays disjointed and disparate performance process can now be streamlined with one integrated self-service solution, saving organizational time and expense. Oracles PeopleSoft Enterprise ePerformance promotes a dynamic shift to increased employee success, enabling improved company performance and inevitably increasing the organizations bottom line.

Oracles PeopleSoft Enterprise HelpDesk for Human Resources

Today, when employees have a question, they most often turn to their local HR representative. With more resources available online, employees are much more likely to turn to low-cost self-service first. Today, without the use of an automated HelpDesk, approximately 70 percent of inquiries are routed to an HR generalist or specialist, and the balance is only partially automated. With PeopleSoft Enterprise HelpDesk for Human Resources, approximately 95 percent of the process becomes automated, saving time, effort, money, and employee frustration with the process. The level of satisfaction in the workforce goes up when employees questions are answered quickly and accurately.

PeopleSoft Enterprise Sales Incentive Management leads the sales organization toward company objectives while driving

sales productivity, increasing administrative efficiency, and reducing

costs.

Oracles PeopleSoft Enterprise Sales Incentive Management

PeopleSoft Enterprise Sales Incentive Management (SIM) leads the sales organization toward company objectives while driving sales productivity, increasing administrative efficiency, and reducing costs. The return on investment for SIM is readily identifiable by reducing excessive costs in incentives overpayment. According to Gartner, the average commissions overpayment in most organizations is five to eight percent. SIM will also alleviate lost selling time by eliminating salespeoples individual commission tracking, known as shadow accounting. According to most industry analysts, individual salespeople spend between five to 15 hours a month tracking and correcting their commissions.


New PeopleSoft Enterprise Workforce Analytics Solutions for Measurement and Management Excellence

Oracles PeopleSoft Enterprise Workforce Analytics

Implementing PeopleSoft Enterprise Workforce Analytics results in hard-dollar savings through reduced personnel costsby better performance management and standardized metrics. Your organization will also realize reduced turnover from targeted workforce compensation management and retention policies. And youll gain reduced IT spend by avoiding multiple reporting systems and deploying and maintaining workforce metrics centrally.

Implementing PeopleSoft Enterprise Workforce Analytics results in hard-dollar

savings through reduced personnel costsby better performance

management and standardized metrics. Your organization will also realize reduced

turnover from targeted workforce compensation management and retention policies. And youll gain reduced IT spend

by avoiding multiple reporting systems and deploying and maintaining workforce

metrics centrally.

According to IDC, an investment in analytics products results in a payback in less than two years, with operational analytics showing the highest return of approximately 277 percent.

Workforce Portal for Role-Specific Access

Oracle s PeopleSoft Enterprise Portal, PeopleSoft Enterprise HRMS Portal Pack

According to Gartner, The portal as the user interface (UI) has become the most-desired UI in Fortune 2000 enterprises. The portal has become a key imperative for empowering the extended enterprise. PeopleSoft Enterprise Portal lets your organization streamline business processes and facilitate community-based collaboration, which ensures that every decision is the best decision.

Portal packs are tightly integrated into PeopleSoft Enterprise applications, which eliminates integration costs and redundant business rule development efforts, thus lowering the total cost of ownership. And because portal packs are release independent, they are always in synch with your application releases, providing easy upgrades and reduced maintenance costs.

GLOBAL/COUNTRY DEPTH Business knows no national boundaries. As your organization expands globally, you must meet the challenge of unique human capital management requirements. Are you following accepted hiring practices for the German market? Are you in compliance with training requirements for France? Can you manage your worldwide enterprise from a single database with the right technology and applications in place?


Global Architecture PeopleSoft Enterprise 8.8 is built on global architecture with local functionality in a single instance for comprehensive management of your entire workforce. It lowers overall total cost of ownership and prevents data redundancy, enabling faster access to stored data.

A number of significant enhancements have been made to PeopleSoft Enterprise

global functionality over time. For example, Unicode was delivered in release

8.0, which enables languages with different character sets to exist within the

same database. We can now support all character sets (including simplified and traditional Chinese and Japanese). This

allows us to deliver more complex languages and gives our customers greater flexibility to do translations.

A number of significant enhancements have been made to PeopleSoft Enterprise global functionality over time. For example, Unicode was delivered in release 8.0, which enables languages with different character sets to exist within the same database. We can now support all character sets (including simplified and traditional Chinese and Japanese). This allows us to deliver more complex languages and gives our customers greater flexibility to do translations.

The application infrastructure also allows the pieces work together seamlessly. The global architecture manages the people, process, and the data integration. Together, all the pieces of the global architecture bring about a much higher level of integration than stand-alone tools can provide.

More Countries Localized HR support has been expanded to encompass 19 countries, including the United States, Canada, Australia, Singapore, New Zealand, Japan, India, Hong Kong, Malaysia, France, Germany, United Kingdom, Italy, Spain, Switzerland, Netherlands, Brazil, Mexico, and Belgium. And PeopleSoft Enterprise Global Payroll is now supported for these 16 countries: Australia, Singapore, India, New Zealand, Japan, Hong Kong, Malaysia, France, Germany, United Kingdom, Italy, Spain, Switzerland, Netherlands, Brazil, and Mexico.

More Products Products have been enhanced or introduced to meet the unique challenges of global organizations. They include Oracles PeopleSoft Enterprise Time and Labor, PeopleSoft Enterprise Payroll Interface, PeopleSoft Enterprise Recruiting Solutions, PeopleSoft Enterprise ePerformance, PeopleSoft Enterprise eCompensation, PeopleSoft Enterprise eCompensation Manager, PeopleSoft Enterprise eProfile, e PeopleSoft Enterprise Development, PeopleSoft Enterprise ePay, and the PeopleSoft Enterprise Workforce Analytics suite.

Ten of the top 10 Fortune Global companies use PeopleSoft Enterprise software to drive their human capital management. You should feel confident that we can provide support for various regulations, security capabilities, currencies, time zones, languages, and functionality to help you operate and excel in a global environment.

TECHNOLOGY ADVANTAGE Though there are many reasons to upgrade to PeopleSoft Enterprise 8.8, the technological advantages are particularly compelling. The most significant benefits include the following:


Reduced Costs Compared to a client/server-based system, PeopleSoft Enterprise 8.8 reduces administration, support, and development costs, lowering the overall total cost ownership:

Web-based applications and administration mean that there is no code or clients to deploy to users. The existing IT infrastructure is used wherever a user may be.

Single sign-on and LDAP integration makes managing users, profiles, and passwords easier.

Oracles PeopleSoft Enterprise Integration Broker, with its prebuilt integration points, brings the benefits of integrated enterprise applications without the cost.

Increased Efficiency We now have a common HR system across our organization, from New York to

London to Paris, that still enables us to follow country-specific rules and

regulations.

Patrick Chauss Director of the Gershwin Project,

Socit Gnrale

PeopleSoft Enterprise 8.8 makes users and administrators more efficient by streamlining tasks that they perform every day:

PeopleSoft Enterprise Portal brings together applications in a single role-based interface, which keeps users focused on the job at hand.

Full text search across applications lets users find information wherever they are within PeopleSoft Enterprise applications.

Oracles PeopleSoft Enterprise Upgrade Assistant enables administrators to perform faster and higher quality upgrades.

Oracles PeopleSoft Enterprise Query Monitor lets administrators isolate poorly performing queries, enabling better overall system performance.

Improved Productivity Productivity means getting more from your workforce. PeopleSoft Enterprise 8.8 enables greater productivity by empowering your users to work smarter:

Web-browser access gives every userinternal and externalaccess to the system if they need it.

Direct URL access lets users stay focused on a task by taking them directly to the appropriate transaction through a simple hyperlink.

Mobile technology keeps users connected to the enterprise, even when they are traveling.

Oracles PeopleSoft Enterprise Context Manager helps users make better and more informed decisions by binding business applications to related information.


CASE STUDY As weve covered in this paper, the value of upgrading to PeopleSoft Enterprise 8.8 HCM often includes reducing costs, improving productivity, and establishing a foundation to move to strategic human capital management. But, depending on the organization, the focus shifts. Three organizations provide examples of the breadth of value from an upgrade.

CUNA MutualReversing the Value Pyramid in Nine Months Flat CUNA Mutual, with 4,900 employees, began its odyssey of creating an infrastructure platform for business to employee services in 2001. When they started, the employee experience of service delivery from human resources was that of having to call HR for most inquiries or being able to merely pull static paper and forms from the intranet to request transaction services. Service was limited to the hours of the HR department. Employees could answer-shop through the HR department until they got the most favorable response.

In less than four months from approval of their business case by the executive

leadership team, CUNA Mutual completed an upgrade to PeopleSoft Enterprises

three-tier architecture from the PeopleSoft Enterprise 7.5 client/server architecture.

They then went on to implement more than an upgrade, by providing web access to

PeopleSoft Enterprise for HR and employees, thereby achieving 24x7

service.

From the HR departments perspective, their efforts were 60 percent administrative and processing, 20 percent developing and managing policies and procedures, and 20 percent being a business partner. Staff had to rekey most actions from paper forms and answer phone inquiries by laboriously accessing PeopleSoft Enterprise 7.5 screens. HR could provide few tools or services to managers to lead their staff. Their vision, however, was to turn this pyramid of services upside down and become a business partner at least 60 percent of the time.

In less than four months from approval of their business case by the executive leadership team, CUNA Mutual completed an upgrade to PeopleSoft Enterprises three-tier architecture from the PeopleSoft Enterprise 7.5 client/server architecture. They then went on to implement more than an upgrade, by providing web access to PeopleSoft Enterprise for HR and employees, thereby achieving 24x7 service. They also implemented Authoria and PeopleSoft Enterprise eBenefits to support the first-ever Authoria-PeopleSoft Enterprise integrated open enrollment and achieved benefits such as 90 percent data entry reduction and elimination of about $60,000 in paper and postage costs immediately, with not one technical issuein less than nine months from approval to value. And they didnt stop there, but continued to provide additional employee and manager services.

The overall value included reducing the number of systems and interfaces, establishing an infrastructure platform for direct electronic services to all employees 24x7, improving cycle time for servicesalmost 100 percent in some cases but at least by 50 percentand increased enterprise employee productivity of almost 3,000 hours, resulting in the opportunity for second order value. The back office now supports more employees with the same staff and is working on providing value-added services. HR is walking the talk.


The HartfordImproving the Employee Experience Starts with an Upgrade The Hartford Experience is the corporations branding strategy built on delivering customer solutions, ease of doing business, and providing extraordinary service. eHR extends The Hartford Experience to employees and managers by providing the foundation for improving the way the company conducts human resource-related tasks, delivering human resource-based solutions to employees and managers, and providing the vehicle through which they can deliver extraordinary service.

The shift from a manual world to an online world, starting with the PeopleSoft

Enterprise HRMS upgrade, is delivering on the promises. The Hartford is on track to

deliver the next phase of strategic human capital managementthat of showing how workforce competencies, skills, education,

and performance interact to affect customer satisfaction and the companys

profitability. The eHR initiative began with a successful business case delivered in early 2001 that included upgrading PeopleSoft Enterprise HRMS from a primarily manual to a web-based operation, and then implementing a combination of customized functionality for managers and collaborative applications. A lesson learned during the early implementation work was to get adequate funding early on for the hardware infrastructure to support the vision. The eHR initiative also includes the migration to PeopleSoft Enterprise Performance Management, consisting of a data warehouse and analytic tools to analyze and measure the effectiveness of HR programs to improve HR functions such as staffing, development, talent management, and compensation. This eHR blueprint guides The Hartfords effort to align human capital with the companys key business objectives and move HR from an administrative to a strategic role.

The forecasted ROI and savings results along the way keep solidifying the eHR vision to deliver The Hartford Experience to employees and managers. The project was approved as a cost-neutral project that could deliver staff realignment to value-added activities in the businesses and some headcount reduction and printing, distribution, and productivity savings from more efficient employee services through self-service.

The shift from a manual world to an online world, starting with the PeopleSoft Enterprise HRMS upgrade, is delivering on the promises. The Hartford is on track to deliver the next phase of strategic human capital managementthat of showing how workforce competencies, skills, education, and performance interact to affect customer satisfaction and the companys profitability.

BaxterUpgrade and Global Implementation Saves Millions Baxter International Inc. is a global healthcare company that provides critical therapies for people with life-threatening conditions. With 2001 sales of nearly $7.7 billion and approximately 48,000 team members (employees) in more than 50 countries, Baxter is a global leader in developing innovative medical therapies that improve the quality of life for people around the world.

CEO Harry Kramer says, If we want to be the best company for our customers and investors, we must first be the best company for our employees. A primary component of Baxters success is its commitment to building the best team in healthcare. This vision includes hiring and developing the best workforce,


managing its staff to clear business objectives, and compensating its workforce for achievement of those objectives. The company first turned to PeopleSoft Enterprise software in 1999 to deliver on this vision.

Baxter had 14 separate systems outside North America, and numerous countries had no automation for their workforce record keeping. Baxter began its global upgrade to a single instance of PeopleSoft Enterprise 8 in October 2000. Eight months later, it had rolled out to 23 countries around the world. Within another four months, it had upgraded the North American system from PeopleSoft Enterprise 7.02 to PeopleSoft Enterprise 8, following this by rolling out to an additional 22 countries worldwide.

Its upgrade project was delivered on time and on budget within 18 months. It has followed this core PeopleSoft Enterprise HRMS upgrade with the addition of self-service from Oracles PeopleSoft Enterprise collaborative applications. Baxter selected PeopleSoft Enterprise 8 because it offered an integrated solution across key HR functions to empower employees, a single global instance of data to improve accuracy and speed, and significantly lowered cost of ownership through self-service processes and an internet-based architecture.

Baxter selected PeopleSoft Enterprise 8 because it offered an integrated solution

across key HR functions to empower employees, a single global instance of

data to improve accuracy and speed, and significantly lowered cost of ownership through self-service processes and an

internet-based architecture.

The benefits to date include:

One instance instead of multiple instances. Instead of 14 systems, Baxter now has one global HR system that provides global HR data for HR initiatives and eliminates local country IT support costs. Baxter also consolidated from 35 payroll systems to 23. By doing so, Baxter has avoided potential implementation costs of approximately $500,000 for each of 32 countries.

Savings for IT and end user support. By moving from a client/server framework to the web, Baxter eliminated the work of updating the client for new releases and changes, saving 15 days of IT costs. With one overall support team that manages end user issues and change requests, Baxter has lowered the cost of maintenance by $500,000.

Mass compensation and data changes. Each country used to develop, execute, and maintain systems programs to affect changes in their local HR and payroll systems. Each country would spend one to two weeks conducting these changes. With the standard compensation and mass change programs maintained centrally with PeopleSoft Enterprise 8, Baxter has eliminated local development efforts.

Increased decision-making speed and efficiency through ad hoc reporting. More than 700 end users can now create queries that used to take IT support. Baxter saved 17 days in organization-wide headcount reporting. This decreased effort to gather data results in a minimum of $150,000 annual savings.


Training efficiencies. PeopleSoft Enterprise 8s intuitiveness makes it easier to learn. Baxter can deliver online training instead of classroom training and decrease travel and classroom costs resulting in an additional savings of $150,000 to $200,000 per year.

UPGRADE SERVICES Developing an overall upgrade strategy and performing the detailed functional and technical analysis required to build a business case can be a daunting task. Many organizations have found that a business partner is a valuable asset for helping them through this process. Oracles PeopleSoft Enterprise Global Services stands ready to work closely with you or the partner of your choice.

We provide you with an executive strategy outline that lays the foundation for your

tactical upgrade plans. Reduce risk, save valuable time, and align your management and enterprise with PeopleSoft Enterprise

Global Services as your guide along the way. PeopleSoft Enterprise Global Services focuses on lowering your overall risk,

building a solid business case, and completing the project in a predictable amount of time. We offer a variety of services tailored to your needs.

Upgrade Strategy Workshop Creating a careful strategy for your upgrade can help you align your PeopleSoft Enterprise solution along your business processes and assure that you are upgrading to the version that fits your needs. Let us help you build a solution strategy to address common upgrade challenges. This one-day workshop helps provide the guidance you and your executive team needs to make the most appropriate decisions for your upgrade. We provide you with an executive strategy outline that lays the foundation for your tactical upgrade plans. Reduce risk, save valuable time, and align your management and enterprise with PeopleSoft Enterprise Global Services as your guide along the way.

Upgrade Planning Workshop The Upgrade Planning Workshop helps you understand how to generate more value from your software by using our parallel deployment approach to implement new products and features in parallel.

Save up to 50 percent of the time and cost of a traditional sequential upgrade.

Reduce documentation, as well as testing and benchmarking.

With parallel deployment, you reduce the time your databases must be frozen to ensure the integrity of your applications by upgrading and implementing new applications at the same time. You will also build a comprehensive upgrade plan to assure a successful upgrade.

Technology Strategy Workshop In this one-day service, PeopleSoft Enterprise Global Services will provide recommendations on how best to optimize the use of your system. Our experienced consultants work with you to review your current plans and help you decide on future steps to make the best use of your system.


Solution Center, Offshore, PeopleSoft Hosting, Remote, and Hybrid Solution Offerings Oracles PeopleSoft Enterprise Global Services has many ways to help you accomplish your upgrade. We can work with you on-site or in our Solution Center, leverage Oracles PeopleSoft Enterprise Hosting, or offer offshore consulting services to ensure that you receive rapid, cost-effective services that will expedite your move to the latest PeopleSoft Enterprise applications.

Our ISO 9001 Certified Solution Centers have assisted hundreds of our customers to upgrade to PeopleSoft Enterprise 8 technologies.

NEXT STEPS If weve convinced you to look seriously at upgrading to PeopleSoft Enterprise 8.8 HCM but youre unclear on how to build the business case to prove it, we can help. A review of more than 100 business case documents has helped to develop a framework that seems to hold up under the rigor of executive scrutiny. You can use this framework for an upgrade or for any new technology purchase.

A review of more than 100 business case documents has helped to develop a

framework that seems to hold up under the rigor of executive scrutiny. You can

use this framework for an upgrade or for any new technology purchase.

PeopleSoft Enterprise Business Case Framework

Lets briefly examine each stage:

Goals and strategies. Articulating your companys overarching goals and the associated business strategies is the first thing that must be done as you build your business case. There are four basic overarching goals:

Revenue = growth. An organization typically grows revenue through acquisitions, selling more, or raising prices. Customer support and expanding channels are common growth indicators. For public sector organizations, growth equates to an increase in service offerings or expanded coverage.

Cash flow = liquidity. To achieve a cash flow goal, a company may work to reduce accounts receivables, increase inventory turns, sell assets, or work to improve cycle times.

Market share = units/volume. To achieve a market share goal, an organization typically drives toward economies of scale to drive down costs per unit. For public sector organizations, a market share goal focuses on expanded services without an increase in budget.

Profitability = margin. In pursuing this goal, an organization works to reduce the cost of goods sold and/or SG&A expenses, or to raise prices. Public sector organizations dont track profitability but need to adhere to a


high level of budgetary scrutiny and accountability while achieving high service levels.

Current state. This is an optional section that is often useful to remind the reader what current technology is in place.

Business issues. Business issues often fall out of your discussions around the overarching goal of the organization.

Mapping proposed solutions to business issues. In this section, you can work with your PeopleSoft Enterprise team to determine which products or upgrade strategies would have the biggest impact on your specific business issues and challenges.

Value of investment. Usually thought of as the financial metrics, this section should also include strategic value statements as to how business outcomes might be changed with the new technology. For the financial metrics, you can leverage tools like the ROI Analyzer to help you ascertain what you should expect from the PeopleSoft Enterprise upgrade. This analysis consists of six basic steps:

For the financial metrics, you can leverage tools like the ROI Analyzer to help you

ascertain what you should expect from the PeopleSoft Enterprise upgrade.

Project approach. This section typically includes the timelines and resources required for the upgrade.

Executive summary. This section represents a short description of the project and expected benefit that executives can use for signoff.

In some cases, a full business case may be more than you needa simple ROI analysis and project plan might be all that is required. In each region, we have specialists who can assist you in using the ROI tools and business case framework to build your unique case. Many third-party consultants also excel in doing this type of analysis.


SUMMARY Oracles PeopleSoft Enterprise 8.8 offers customers tremendous opportunities to operate as a real-time enterprisereducing costs, improving profitability, and providing the foundation for strategic human capital management. The exact benefits you will derive from upgrading to PeopleSoft Enterprise 8.8 depend on your upgrade path, the products you select, and your individual business practices. In most cases, however, the evidence has shown that you can justify an HCM upgrade in fewer than 18 months.

In 2002, more than 200 customers were helped in building their business case for PeopleSoft Enterprise 8, and we can do it

for you.

In 2002, more than 200 customers were helped in building their business case for PeopleSoft Enterprise 8, and we can do it for you. Extensive post-implementation audits have also been conducted at CUNA Mutual, The Hartford, US Bank, Vail Resorts, Baxter HealthCare, Edward Jones, and PMI Group to prove that PeopleSoft Enterprise HCM meets and exceeds ROI expectations.

Contact your customer account team today to help you assess, plan, and execute your upgrade strategy. More than 1,500 customers have already realized the benefits of PeopleSoft Enterprise 8you can, too.


APPENDIX

The PeopleSoft Enterprise 8.8 HCM Solution Matrix Product Suite Product Features Benefits

All PeopleSoft

Enterprise HCM

Solutions

Enhanced navigation provides a

new and more intuitive way to

productively navigate around your

HCM application.

Enhanced user interface with

various assisting technologies (such

as screen readers for the visually

impaired) substantially achieved the

accessibility goals of Section 508 of

the Rehabilitation Act (U.S. federal

legislation).

Enhanced address formatting for all

countries and address search

functionality allow for higher

productivity.

Security enhancements

automatically create a row security

permission list for each department

manager, updates existing manager

permission lists, and removes the

manager permission lists of

employees who are no longer in a

managerial position.

Other enhancements include

customized table views and the

ability to check the spelling in all

correspondence housed in the HCM

application.

Usability and

productivity.

Real-time integration

and streamlined

business processes.

Cost reduction.

PeopleSoft

Enterprise HRMS

HRPosition Management.

Enhanced defaulting scheme for

position data and cloning for new

positions better provide

synchronized data across the

enterprise.

HRCommitment Accounting.

Enhanced business process

ensures that your PeopleSoft

Usability and

productivity.


and streamlined

business processes.

Cost reduction.

Global capability.


Product Suite Product Features Benefits

Enterprise HRMS account codes

will map accurately to your

PeopleSoft Enterprise Financials

account codes.

HRLabor Relations. Enhanced

job change notification and approval

process allows for easy employee

transfers.

HRFrance. New process allows

you to manage French profit

sharing.

HRNew country functionality for

Brazil and India.

HREnhanced existing country

functionality for France, Germany,

Italy, Japan, Mexico, Spain,

Switzerland, and United Kingdom.

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise Payroll for

North America:

Rapid data entry allows you to add

basic payroll data on paysheets

quickly.

Bank transit number validation

allows you to verify the transit

routing number by using an

algorithm that is published by the

American Bankers Association.

Usability and

productivity.


and streamlined

business processes.

Cost reduction

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise Global

Payroll:

Enhanced existing functionality for

payrolls for France, Germany, Italy,

Japan, Mexico, Spain, Switzerland,

and United Kingdom.

New PeopleSoft Enterprise Global

Payrolls for Brazil, Netherlands,

New Zealand, India, and Singapore.

PeopleSoft Enterprise Global

Payroll gives organizations

complete control over all aspects of

Global capability.


and streamlined

business processes.

Flexibility.

Cost reduction.



their payroll operation, including

statutory payroll and absence

requirements.

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise Time and

Labor. Enhancements include major

self-service functionality for managers

and employees that enable them to

manage, plan, report, and approve time

by using new calendars and schedules.

Usability and

productivity.


and streamlined

business processes.

Cost reduction.

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise ePerformance

(new). Employees get clearly identified

performance targets and receive

improved feedback, performance

reviews, and rewards. Top performers

are identified, retained, and motivated

across the enterprise, while others are

identified for development.

Note: Out-of-box integration to

PeopleSoft Enterprise 8.3 HRMS and

8SP1 is available.

Usability and

productivity.


and streamlined

business processes.

Cost reduction.

Global capability.

Alignment to

corporate objectives.

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise HelpDesk for

Human Resources (new). Delivers a

call center solution that provides agents

with a 360-degree view of each

member of the workforce. Agents can

directly launch into knowledge bases

and HR processes to get immediate

access to needed information, ensuring

prompt and accurate responses.

Note: Out-of-box integration to

PeopleSoft 8.3 HRMS and 8SP1 is

available.

Usability and

productivity.


and streamlined

business processes.

Global capability.

Cost reduction.

PeopleSoft

Enterprise HRMS

PeopleSoft Enterprise Pension

Administration. New search and

prompt views are available.

Usability and

productivity.

Cost reduction.

Collaborative

applications/

self-service

All. Enhanced homepages make

navigation easier for employees and

managers. Other enhancements

include sortable self-service

Usability and

productivity.

Communication.



include sortable self-service

functionality.

All. Improved self-service workflow

configuration process makes it easy

to set up workflow notifications that

are appropriate to your business

processes. For example, when

certain events occur during the

performance review cycle, workflow

notification sends automated email

messages to managers and

employees.

Cost reduction.

Collaborative

applications/

self-service

PeopleSoft Enterprise eRecruit:

Job Agent functionality lets the

applicant express interest in types

of jobs that may not yet be available

and then be automatically notified if

and when such a position does

become available.

Attachments, such as cover letters

or references, can now be attached

to the application in addition to the

resume.

Employees can review an

applicants entire interview schedule

and their own and can view any

comments or detailed information

entered by the recruiter.

Usability and

productivity.

Communication.


and streamlined

business processes.

Cost reduction.

Collaborative

applications/

self-service

PeopleSoft Enterprise eRecruit

Manager Desktop:

Recruiting administrators can create

and save standard job posting

descriptions that can be used over

and over to ensure timely postings

and a consistent corporate image.

Administrators can create job-

posting templates that can be linked

to job requisitions.

The applicant index process is

Usability and

productivity.

Communication.

Cost reduction.



redesigned so that you can search

for applicants while the index

processing is running.

Collaborative

applications/

self-service

PeopleSoft Enterprise ePay. The

PeopleSoft Enterprise Global Payroll

for Japan year-end adjustment (YEA)

process is now supported.

Usability and

productivity.

Communication.


and streamlined

business processes.

Cost reduction.

Collaborative

applications/

self-service

PeopleSoft Enterprise

eCompensation Manager Desktop.

The individual employee salary change

and the group salary change without

budgets transactions are now

combined into one transaction. The

new employee salary change

transaction is enhanced to use the

configurable self-service process

control feature.

Usability and

productivity.

Communication.


and streamlined

business processes.

Cost reduction.

PeopleSoft

Enterprise Mobile

Workforce

PeopleSoft Enterprise Mobile Time

Management (new). This product

premieres as the launch product for our

new mobile business applications suite

for workforce members who are

disconnected from their time reporting

systems.

Usability and

productivity.

Cost reduction.

Flexibility.

PeopleSoft

Enterprise Workforce

Analytics

PeopleSoft Enterprise Workforce

Warehouse, PeopleSoft Enterprise

Workforce Planning, PeopleSoft

Enterprise Workforce Rewards, and

PeopleSoft Enterprise Workforce

Scorecard. All were upgraded to

PeopleSoft Enterprise 8.8 to use the

new PeopleSoft Enterprise

PeopleTools 8.42 features.

Note: These products are independent

of PeopleSoft Enterprise HRMS and

work with any PeopleSoft Enterprise

Usability and

productivity.

Cost reduction.



HRMS release.

PeopleSoft

Enterprise Learning

Management

Solutions

Enterprise Learning Management

(new). Organizations can dynamically

deliver training where it is needed, both

inside and outside the enterprise. For

the first time, learning systems are

integrated with both performance and

incentive management applications.

Note: This product is independent of

HRMS. Out-of-box integration to

PeopleSoft Enterprise 8.3 HRMS is

available.

Usability and

productivity.

Cost reduction.

Alignment with


PeopleSoft

Enterprise Incentive

Management

PeopleSoft Enterprise Sales

Incentive Management (new).

Addressing the entire incentive

management business process, this

product offers an unmatched portfolio

of features to support sales, operations,

and compensation administration.

PeopleSoft Enterprise SIM delivers

industry templates for the high-tech and

industrial sectors.

Note: This product is independent of

HRMS. Out-of-box integration to

PeopleSoft Enterprise 8.3 HRMS is

available.

Usability and

productivity.

Cost reduction.

Alignment with



Why Upgrade to PeopleSoft Enterprise 8.8 HCM August 2003 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 oracle.com Copyright 2003, 2005, Oracle. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

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