Post on 16-Aug-2015
HP (Case Study): A Global Implementation of NetSuite
SuiteWorld
Paul Kirch, Principal, NetSuite
Bruce Cavers, Sr. Director, NetSuite
Nigel Blair-Johns, Sr. Program Manager, Hewlett-Packard
Cautionary Note: Forward Looking Statements
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uncertainties associated with our business are described in our most recently filed annual report on Form 10-
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are available on the SEC’s website at www.sec.gov and on NetSuite’s website at www.netsuite.com.
We assume no obligation and do not intend to update any forward looking statements. Customers who
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Please be advised that any unreleased services or features from NetSuite that are not currently available
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Cautionary Note
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Hewlett Packard will be talking about its own products and/or services, which it makes available directly to customers. The statements and opinions contained herein are those of HP Software and not of NetSuite. NetSuite has not verified any statements or claims herein and assumes no responsibility for such statements or claims.
Paul KirchPrincipal, Software,
Netsuite
Bruce CaversSenior Director,
Enterprise, NetSuite
Nigel Blair-JohnsSenior Program
Manager, HP Software
Presenters
Company Logo Company Logo Company Logo
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Press Release
© NetSuite Inc. 20156
“NetSuite has delivered an enterprise-class solution that’s enabling us to streamline complex revenue and billing processes and gain new insights into business performance,” said Paul Chapman, Chief Information Officer, HP Software.
“The two-tier ERP implementation with NetSuite OneWorld is robust and elegant and provides us with new agility, flexibility and scalability in our management of the Software business.”
Agenda
1. Background
2. Project Scope and Methodology
3. Project Organization and Timeline
4. Solution Design
5. Results
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Hewlett-Packard
© NetSuite Inc. 20159
“The HP garage is known as the birthplace of Silicon Valley.”
367 Addison Avenue, Palo Alto, California
• Iconic Company: HP is one of Silicon Valley’s most iconic companies.- HP was established in a garage in Palo Alto, California in 1939.
• Cloud Software: Over the last 5-10 years, cloud software has emerged as a viable alternative to traditional on premise software solutions.
- HP has established several cloud based application offerings for its customers
- New selling models challenge legacy back office order management systems
• Innovation: HP is undergoing dramatic change and reorganization.- HP Software needed to internally integrate the acquired Autonomy business, and planned to
leverage a new internally developed SAP platform. That option became unavailable.
- Needing future flexibility and legacy HP systems not being an option, decision to deploy NetSuite for legacy Autonomy business
- Key drivers were time to result and ability to give the business tight scope and cost control
- A pilot exercise in a new way of doing business
Introduction
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Scope of Project
• Revenue: Approximately $1 billion revenue in 5 discrete business units. Purpose of project was to consolidate back end business support systems onto one platform.
• Geographical Scope: Over 159 licensed users in 8 countries: Canada, France, India, Mexico, Poland, Switzerland, United Kingdom, and United States.
• Item Master: Over 10,000 SKUs representing HP Software products.
• Customizations: Customizations included the UBB script for Minimum Monthly Usage (MMU/MMC), discounting, Business Area, Profit Center and Global Currency customizations, intercompany transactions and draft sales order (quote) from a contract.
• Process Challenges: Order Capture, customer-facing AR Invoice processes, revenue recognition, intercompany accounting, and GL interface to existing HP (SAP Lighthouse) systems.
© NetSuite Inc. 201513
Generate energy and measure progress by breaking down into “bite-sized chunks”, and be relentless …..
Wave Methodology
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Project Plan
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The project plan was
organized around a
series of “sprints” or
“waves.”
Sprint 1: 9/14 – 10/14
Sprint 2: 10/14 – 11/14
Sprint 3: 11/14 – 12/14
Sprint 4: 1/15 - 2/15
Sprint 5: 2/15 - 3/15
• Strategy was to use a combination of traditional waterfall and agile/scrum in a series of “waves” or “sprints.”
- PMO office developed a series of “sprints” to define solution development.
• Methodology used defined milestone dates together with rapid design and implementation techniques.
- Face to face meetings were considered critical to the process to confirm requirements and design.
• PMO Office focused on measurable, quantifiable metrics.
- Daily e-mails to entire project team, detailing UAT testing progress metrics.
- Test cases defined and blocking bugs identified in extremely methodical approach.
- CR’s (Change Requests) or bugs managed closely to identify owners and push resolution.
- Measure of tests completed against “trend line” used to keep team focused.
Project Methodology
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Overall
Testing progress measured against required progression line
End to End Tests
Discrete Tests
Required Progression Line
Daily e-mail before daily 7:00 a.m. (Pacific) scrum
• Passed
• Failed
• Not run
• Incomplete
• Complete
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Project Organization – HP Software
Nigel Blair-Jones
Sr. Program Manager, HP Software
Order Management
TeamLead: Ann Hunter
Record to Report Team
Lead: John Dean
Technical Team
HP IT
Patrick Rueckert
Program Office
Project Organization – NetSuite (with Accenture)
Bruce Cavers
Sr. Director, NetSuite
Order Management
TeamLead: Casey Lucas
Record to Report Team
Lead: Paul Kirch, Max Elie-Salomon, Megan Radigan
Technical Team
NetSuite Offshore Team
Manoj Singh
Program Office
Timeline
Total Elapsed Time: 7 months
9/15/14 10/15/14 11/15/14 12/15/14 01/15/15 02/15/15 03/15/15
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6
Finish
Requirements Solution Design Technical Design
and Waterline
Development Testing UAT & Go Live
Start
Mobilization
• Discovery: 7 week joint discovery phase to firm up scope, effort & schedule before release of full project. Project structured as a two party partnership (NetSuite PS and HP Software). Discovery commenced in June 2014
• Kickoff: internal launch took place Aug 20, with rapid mobilization of both teams. Early focus was on developing a clear understanding of HP Software business requirements
• Requirements: NetSuite led daily on-site requirements gathering meetings Sep15 through Oct15
• Waterline Review: Early Nov. combined HP / NetSuite team met for a “waterline” F2F meeting to finalize requirements & scope, and agree on the overall solution. Cleared the path for NetSuite to build out those requirements
• User Acceptance Test: commenced Feb 04 for 6 weeks, including two-week F2F UAT session one week after start of test window
• Go Live: Project “go live” took place on Mar 16, 7 months after kick-off
Project Timeline
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• Major Gaps- Use of contract, and creation of Sales Order from Contracts.
- Pricing, Discounting, and Exchange Rates (Accounting and Spot Rate Currencies).
- AR Invoice Design, with Japanese and French language requirements.
• Process Requirements- Sales Order Capture using ASOF (spreadsheet), with Draft Sales Order Creation.
- Revenue Recognition, Credit and Rebill and Cash Application processes.
- Intercompany invoice processing for “intercompany eligible” items through re-biller entities
• Integration with 3rd Party Software- Integration to Avatax required for U.S. Sales and Use tax determination and
calculation.
Solution Design
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Revenue Recognition Process
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Revenue Recognition Process
Acco
un
tin
gS
ale
sC
usto
me
r
Invoice/Cash
Sale
Generated
Revenue
Template
Defined?
Customer
Sales Process
No
Schedule
CreatedYes
Review
Revenue
Journal
Revenue
Booked
Schedule
Updated
Adjustment
Required?
Adjust
Invoice/Cash
Sale
Book Journal
Entry
Yes
No
Revenue Journal EntryInvoice/Cash Sale Revenue Schedule Financial Reports
Draft Order
Sales
Order
Fulfillment
Cash
Application
Invoicing
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Factory Sales Office
#2 Trigger Sale of Software
from Factory to Sales Office
Reseller/
Distributor
or CustomerRe-biller
Bill From/Ship
From Ship From Ship To#3 Create I/C
AR/AP
(% discount)
#1
Customer
Facing AR
Invoice
# 4 Interco
AR/AP
(% discount)
Intercompany Overview
• Automated sequence of events on generation of customer trade invoice
• All intercompany records generated and stored at transaction level
Subsidiary Definition and Relationships
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Local Sales
Office
Regional Hub
Sales Office
Regional Hub
Sales Office
Local Sales
Office
Regional Hub
Sales Office
Local Sales
Office
Local Sales
Office
Local Sales
Office
Regional
Re-Biller
Regional
Re-Biller
Regional
Re-Biller
Factory
• Deployed 20 entities to create trading model
• Intercompany workflow through entities dependent on customer location
• All flows and accounting are “under the covers” to business operations teams processing orders
Overview of Intercompany Invoicing Process
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INTERCOMPANY HIGH-LEVEL FLOW - DRAFT
NET
SUIT
ED
ata
cent
erH
P F
ina
nce
sy
stem
s
NOTE: TRADING FLOW GBF0 = > CH19 => CA00 IS USED AS AN EXAMPLE TO EXPLAIN THE FLOW
CONTRACT
Intercomp. BillingLevel A IC AR
GBF0 CH19
Pricing Transfer
Global trade Screening
CustomerHPCCH19
LH1DAS/TRIM
Intercomp. BillingLevel B IC AP,
And IC ARCH19 -> GBF0 (IC AP acc)
CH19 CA00 (ICAR acc)
PDF Inv Output
CompanyCH19
Pricing Transfer
VendorHPCUS99
Standalone accounting doc.
Level B IC AP
CH19 CA00
VendorHPCCH19
CompanyCA00
CustomerHPCA00
CONFIRMATION
MANUALAccounting
docs
Entitlement Fulfillment
process
Trigger delivery
CUSTOMER
EmailLicense keys / SW download
CompanyGBF0
Trade Billing to Customer
CompanyCA00
PDF Inv Output
Confirmation of service
PDF Inv Output
Invoice Archival
Invoice Archival
ASSUMPTIONS
* IC AP transaction wiil not have IC Purchase order, this need to be understood.
*Pricing will be transferred from one document to another, only sourcing the IC discounts from one common database within Netsuite
IC FUNDING DISCOUNTS DATABASE
Month End NetSuite Task ListDay -2 Day -1 Day +1 Day +2 Day +3
Ensure fulfilled sales
orders have correct
status
Ensure customer payments are applied
against correct AR invoices
Calculate
Consolidated
Exchange Rates
Generate SAP LH
Extract and Load to
SAP
Invoice Fulfilled Orders
(AutoInvoice is on)
Create Revenue
Rec Journal
Entries
Load Exchange
Rates
Eliminate Interco
Transactions
(required)
Run Reports
Reconcile orders fulfilled
to orders invoiced, if
necessary
Ensure that I/C
AR and AP
accounts balance
by subsidiary
Create JV’s
including Accrual
JV’s and any
Adjusting JV’s
Book Revaluation
Journals, Adjustments
using Saved Search
Reconcile NS
balances with SAP
Lighthouse
balances
Ensure that all AR invoices have been sent
(e-mail or physical) to customers. (By
subsidiary, with 11:59 p.m. local time cutoff
on Day -1).
Review Actuals and
Finalize Revenue
Book Realized
Gain/Loss Journals in
GC (USD)
SAP/Lighthouse
Run sales trending and
other required reports
Lock NetSuite AR
Period
Finalize Revenue Lock NetSuite
Accounting Period
• “Follow the Sun” month end close schedule
• Country AR is locked at 11:59 PM local time
• Regional close starts with APJ
• Financial close activities follow the same regional sequence
Proposed Month End Schedule
Integration to SAP (Hybrid Cloud)
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NetSuite
SAP (LH)
Requirements:
• Replicate SAP accounting
requirements. Each transaction
required to have Company Code,
Business Area, Profit Center, and
Natural Account.
• Provide the Transactional Currency
(TC), Local Currency (LC), and
Global Currency (GC) values on
each transaction.
• Accommodate (not replicate!) SAP
LH treatment of Unrealized
Gain/Loss on Revaluation and
Realized Gain/Loss on Transactions
Main
Rev Rec
Realized Gain/ Loss
Main Saved Search Extract Definition
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Criteria Results
Integration strategy was to use a saved search in NetSuite to extract
information for load to SAP using the existing HP GL interface procedure.
• Project Go Live- ABoC successfully went live over the weekend of March 13-15, 2015,
- During the week of March 16-20, team converted principal conversion objects, including:
- Customers
- AR Invoices
- Existing Open Orders
- Revenue Recognition Journals / deferred revenue schedules
• First month end close took place March 31, 2015
- Achieved to schedule
• First quarter close
- Closing as we speak
Results
© NetSuite Inc. 201537
“I’ve just discovered fire and can now venture out …”
© NetSuite Inc. 201538
“I’m inspired and feel as though I’ve just discovered fire and can now
venture out of the dark ages.” – HP Analyst
The Team …
© NetSuite Inc. 201540Also, Sakshi, Gerrom, and Megan and everyone else
who worked so hard on this project.
The Stories…
• Needed to deploy quickly with minimum CapEx and resources.
• Chose NetSuite for 124 subsidiaries around the world.
• Created repeatable implementation and rollout templates.
• Failed attempt to standardize on Oracle – too costly, too long.
• Reduced ongoing IT costs by 70% while gaining multi-currency
consolidation and increased organizational flexibility.
• 50-80% faster implementation.
• Aligned processes and gained control of 3,000+ projects in 15+ countries.
• Dramatically increased utilization and consultant-project fit.
• Gained enterprise visibility for forecasting.
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• 2400+ employees
• $414.5M revenue in FY13
• $123M revenue in Q1 FY14
• Used by 20,000+ organizations
• Fastest growing top 10 FMS WW
• Used across 100+ countries
The Undisputed Cloud ERP Leader
© NetSuite Inc. 201542
The Undisputed Cloud ERP Leader
NetSuite is the most successful ERP suite SaaS provider operating in terms of active customers, international presence and functionality offered across the product.
Event Note: Observations and Analysis From NetSuite's Global Customer ConferenceAnalyst(s): Chris Pang, Robert P. Anderson, Christian Hestermann, June 2011
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