LCBO’s Treasury Transformation
Carmela Abbamonte-Boyko, CPA, CMA Manager, Oracle Financials Email: [email protected]
Eduardo Farfan, CPA, CMA Project Leader, Treasury Email: [email protected]
Glenda Cardiño, CPA, CMA Treasury Analyst, Treasury Email: [email protected]
Agenda Who are we? Life before Implementation Why Oracle/Hyperion? Project Objectives Project Overview Life after Implementation Challenges & Successes Lessons Learned What is next?
LCBO – Who are we?
One of the world’s largest purchasers of alcoholic beverage Crown corporation 6,000 employees working in:
• 630+ retail outlets • 5 warehouses • Several regional, district locations • Head office
LCBO Treasury – Who are we? Investments; short-term timeframe, R1
(low) or higher instruments Hedging; passive strategy to reduce
losses LCBO does not incur debt to sustain
its operations Annual Cash Plan; Dividend schedule
to Province
LCBO SYSTEMS – ORACLE BUSINESS SUITE
THIRD PARTY
HOST (Web based)
Email – Data Entry
Hardcopies
Life before Implementation
Why Oracle/Hyperion? Oracle E-Business Suite is LCBO’s Financial
System Hyperion is LCBO’s Financial Planning Tool Integration with Accounts Payable & Financial
Planning Process Leveraging experience & knowledge Small Treasury Operation
Project Objectives Business Processes (STREAMLINE):
• Review & assess Treasury’s processes
• Implement improvements based on recommendations
Project Objectives System Implementation (INTEGRATION):
• ORACLE Treasury Module
• Transition of Cash Forecast Models to Hyperion
Project Overview
Go Live! - Feb 26 & 28
Vision & Plan Design Build & Test Operate
Perform Treasury review & provide recommendations Define business
requirements Fit/gap Analysis Oct 21-Dec 16
Business process design Oracle
Treasury & Hyperion Planning Design Nov 18-Jan
17
Configure & Test Nov 4-
Feb 21
Project Overview Project Launch
• Issue RFP to review, recommend and assist with implementation
• Select a partner
Project Management • Identify project team • Develop Project Charter & Plan • Establish weekly status meetings • Use of Share Point Repository
Project Overview Process Review
• Assess Treasury policies and programs on Foreign Exchange, Hedging, Investment, Cash Management and Forecasting
Business Requirements Workshops • Define to-be processes and requirements • Leverage industry best practices and Oracle out-
of-the box functionality
Project Overview Solution Design
• Perform Gap analysis • Configure Applications
Solution Development
• Create reports in Oracle Treasury • Develop 30+ web forms/business rules for Cash
Position & Planning • Integrate Oracle to Hyperion through interface
Project Overview Testing
• Build test scripts • Map & load test data • Perform unit, integration and user acceptance
testing Go-Live and Support
• Cutover planning • GO LIVE! • Post Go-Live support
LCBO SYSTEMS – ORACLE BUSINESS SUITE
THIRD PARTY
HOST (Web Based)
Email – Data Entry
Hardcopies
Life after Implementation
Auto
Auto
Auto
Auto
Project Challenges
Tight timelines due to year-end constraints Short learning curve for
Hyperion Planning Limited resources Key technical resource
not on-site
Technical Challenges Oracle Discounted
Securities calculation Oracle-Hyperion
interface development
Design of a date-specific Hyperion Cash Planning model Oracle BAI file
import process
Successes
Integrated business processes
Streamline process flow
Reduction of data entry
Effective knowledge transfer
Successes
Elimination of third-party hosting
Improved efficiency in Annual Cash Planning process
Improved FX hedging Capability of electronic
signature Dashboard – Increase visibility
related to Risk Management
Lessons Learned Perform business review & initial
configuration in parallel Key members should be on site Allow key members to start system testing
earlier
Lessons Learned Determine a good testing data strategy Daily touch point meetings during UAT
helped with keeping the team focused Post-implementation support is critical
What is next?
Review and update of key Treasury Policies
Inclusion of Treasury function in LCBO’s Business Recovery Plan
Develop a Banking Scorecard
Better integrate Treasury into Enterprise Risk Management