Managing a portfolio of projects within Oracle EBS Projects

1. Managing a portfolio of projects within Oracle EBS Projects Suhail Maqsood Chief Operating Officer, Rysigo Technologies Corp

2. Agenda • Oracle – Beyond Project Accounting? • Projects Lifecycle • Why Does Portfolio Planning Matter? • Portfolio Analysis Benefits • Project Portfolio Analysis Process and Walkthrough • Implementation and Setup • Additional Information • Questions © 2006 Oracle Corporation – Proprietary and Confidential

3. Oracle – Beyond Project Accounting?Full Lifecycle Enterprise Portfolio Management Project Costing & Project Billing Project Resource Management Project Analytics Project Management & Collaboration Project Portfolio Analysis Deliver Within Budget Improve Accountability Streamline Operations Improve Cash Flow Lower Operational Costs Optimize Utilization Increase Responsiveness Lower Admin Effort Lower Costs Improve Employee Satisfaction Drive Intelligent Decisions Reduce Project Financial Risk Lower Operational Costs Manage Exceptions Improve Data Confidence Deliver On Time & Within Budget Control Deliverable Quality & Changes Improve Margins & Customer Sat. Increase Response Times Prioritize Portfolio Align With Strategic Goals Balance Funds & Priorities Evaluate and Recommend Reduce Portfolio Risk Role Based Security, Global Project Repository, Templates, Resources Project Foundation

4. Projects Lifecycle Project Selection Project Planning Project Execution Project Control Project Control Project Reporting • Prioritize & Select Projects • Create Work Plan & Assign Resources • Generate Budget for Approval • Generate Forecasts • Manage Issues and Changes • Review Project Performance • Publish Reports to Stakeholders • Execute Work & Update Progress

5. Portfolio Planning Solves a Traditional Disconnect between Strategic Goals and Operational Decisions Portfolio Management Is Becoming a Required Business Process for Organizations to Obtain Funding Why Does Portfolio Planning Matter?

6. Better evaluate capital requests by consistently analyzing investments in context Increase competitive advantage by executing on real-time strategy changes Reduce risk by planning for “What If” scenarios Streamline the planning process with automated workflow for the planning & approval process Portfolio Analysis Benefits

7. Helps companies maximize return on their project spend by aligning their portfolios of project investments with the financial & strategic goals of the company It does for business what your mutual fund manager does for your retirement What Does Oracle Project Portfolio Analysis Do?

8. Portfolio Management Challenges • Lack of Strategic Alignment • Am I getting the highest ROI from my limited resources and budgets? • Am I doing the right projects? • Which projects don’t align with my strategic objectives? • Incomplete Information • How do I get accurate information on project costs and revenues for calculating ROI? • How do I get visibility into regional initiatives and skunkworks projects? • What resources are available for my projects? • Increased Compliance • How do governance requirements affect my projects? • How can I respond to calls for increased accountability? • Operational Challenges • How do I ensure standard ways for measuring and prioritizing projects? • How do I work with globally dispersed stakeholders? • How do I quickly respond to changing conditions?

9. Projects Lifecycle Prioritize & Select Projects Review Project Performance Management Create Work Plan & Assign Resources Generate Budget for Approval Generate Forecasts Publish Reports to Stakeholders Program Manager Execute Work & Update Progress Manage Issues and Changes Team Members

10. Prioritize & Select Projects Prioritize & Select Projects Review Project Performance Management Create Work Plan & Assign Resources Generate Budget for Approval Generate Forecasts Publish Reports to Stakeholders Program Manager Execute Work & Update Progress Manage Issues and Changes Team Members

11. Concept: Portfolios, Planning Cycles, Scenarios IT Portfolio Current Planning Cycle Next PlanningCycle Scenario A Scenario B Scenario C Projects can belong to only one portfolio at a time portfolio has only one current planning cycle at a time projects can be in multiple scenarios within that planning cycle Project A Project J Project A Project D Project D Project D Project F Project F.2 Project F Project E Project E

12. Portfolio Approver Has the ability to view portfolios & their submitted scenarios and to approve submitted scenarios & plans Portfolio Analyst Has the ability to view & update portfolios, create, initiate & close planning cycles, collect projects, build and recommend scenarios & submit plans for approval Portfolio Owner Has all of the above abilities and is the default portfolio approver New User Roles

13. Prioritize & Select Projects Create Portfolio Create & Initiate Planning Cycle Submit Projects Collect Projects & Build Scenarios • Investment Criteria • Financial & Non Financial Metrics • New Proposals • Approved Projects • (Carried out by Project Manager) • Common Criteria • Financial Justification • Strategic Alignment Collect & Rank Projects Compare Scenarios Analyze Portfolio • Analyze multiple portfolio scenarios to identify best fit. Recommend Scenarios Submit Plan Approve Plan Close Planning Cycle Recommend Scenarios and Execute Portfolio • Recommend Scenario(s) for Approval • Approve Scenario(s) • (Carried out by Portfolio Approver) • Launch approved projects

14. Industry Customers Jobsite Contract Management Technology Subcontract Work Force Economy Prioritize and Select Projects: Modules used Financials Portfolio Management Resource Management HR Update Skills Match Resources Track Utilization Procurement Project Management Accounting & Operations Inventory Plan Project Manage Change Manage Performance SecureProjectInformation Track Effort/Costs Manage Billing Capitalize Assets Cross-Charge Manufacturing Sales / Contracts AssetManagement Update Progress Resolve Issues Review Documents DocumentRepository Collaboration CAD/Product Info Intelligence Factors Pressuring Project Demands Built-In Enterprise Integration Personalized Role-Based Views

15. Create Portfolio / Create Planning Cycle

16. Create Planning CyclesSet Weights & Targets for Investment Criteria

17. Create Planning CyclesInvestment Mix & Financial Options, Targets

18. Submit ProjectsScorecard

19. Collect Projects

20. Build Scenarios

21. Build ScenariosScore and Rank Projects

22. Build ScenariosScore and Rank Projects

23. Build ScenariosScore and Rank Projects

24. Build ScenariosBalance Portfolio

25. Compare Scenarios

26. Compare Scenarios

27. Recommend Scenarios

28. Submit Plan

29. Approve Plan

30. IMPLEMENTATION AND SETUP

31. Technical Pre-requisites • Ensure Oracle DB has OLAP option enabled prior to FP-M application • Controlled patch available from Oracle Support • Oracle DB version 9i +

32. Functional Oracle Projects pre-requisites • New Financial Plan budgeting / forecasting model within Oracle Project Management. • Classifications and Categories for strategic objective definition • Use of HTML Oracle Project Management, Oracle Project Foundation pages • Project Creation, Project Sets

33. Setup Considerations: Calendars and Hierarchies Portfolio Organization Hierarchy (Optional, Profile Option) You can define an Organization Hierarchy to control which Project owning organizations can be included within the portfolio. Portfolio Analysis Calendars You can define GL calendars and Period Types for planning cycles that may span multiple years. Calendars and Period Types are assigned to your planning cycle.

34. Setup Considerations: Financial Plan Types • Determine the Financial Plan Type for Cost and Benefit • You will need to set the following profile options that is used to determine the cost and benefit information used for calculations throughout the application: • PJP: Financial Plan Type for Project Benefit • PJP: Financial Plan Type for Project Cost • Note that financial amounts will be refreshed in Portfolio Analysis upon baselining the financial plan types used above.

35. Setup Considerations: Classifications / Categories Investment Class Category and Class Codes Used to group classes of projects for analysis of cost and benefit for a scenario. Used for balancing scenarios by weighing cost vs benefit. Also used to calculate NPV, IRR, ROI. Portfolio Selection Class Category Defined using class categories but used for the PJP: Portfolio Selection Class Category profile option. This is used to select projects into different portfolios and planning cycle.

36. Setup Considerations: Investment Criteria Setup Investment Criteria (HTML Page) The Investment criteria (financial and non financial) determines how your business evaluates all investments across organizations. Use investment criteria to evaluate and select projects into project portfolios.

37. Setup Considerations: Miscellaneous and Summary • Impact to planning process around individual projects • Implementation of PJP security model • Design of the Portfolio boundaries • Definition of the business processes around • Portfolio-level Planning • Investment criteria creation, weighting & targeting • Project proposal • Project scoring • Project Financial Plan creation • Interaction between Funding Approval Status & Project Status

38. Thank youFor further information, please contactSuhail.Maqsood@Rysigo.com