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Iansiti - Expert Witness Demonstrative Exhibit: Demonstrative Exhibit For Expert Witness Iansiti

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3 vendors satisfy the HRM and FMS high function requirements of Enterprises

Squares and arrows representing steps and requirements for arriving at the vendors satifying requirements[D]

DaimlerChrysler Worldwide Operations

Many lines of business Arrow pointing right

Division Daimler Chrysler Mercedes Group Chrysler Group Commercial Vehicles Sales Org Automotive Services Other
Employees 362,063 104,151 93,062 95,062 45,609 11,035 13,144
2003 Revenue ($ million) 171,870 64,807 62,130 35,923 - 17,682 554

Organizational Management more complex than just divisions in countries.

  • 2003 Sales 3.85 million Passenger Cars, 501,000 Commercial Vehicles
  • Manufacturing Facilities in 17 countries
  • Brands: Mercedes-Benz, Chrysler, Jeep®, Dodge, 7+ others
  • Products Sold in >200 countries , Official Language English

Map of Example: Many locations crossing lines of business[D]

Source: Daimler Chrysler 2003 Annual Report; www.daimlerchrysler.com

HR Example: Chrysler has 93,000 employees

Previous map of world continents with organizational chart pointing to the USA

[D]

 Process transactions

Add employees

Track personal data

Cut paychecks & direct deposit

Pay taxes

Manage the organization

Analyze human resource capabilities and needs

Examine job types, pay scales, open and filled positions

Manage employee skill sets and progress

Relate skills and capabilities to organizational context

Apply benefits and managing incentives

Manage change: transfers, reorganizations, acquisitions, etc...

Enterprise Requirements

map of world continents with organizational chart pointing to the USA

[D]

 Business Requirements (Credibility and Capabilities)
  • Experience
  • Stability (financial)
  • R&D
  • Support
  • Dedicated enterprise sales force

Software Requirements ("High Function"):

    Process transactions:
  • "Deep" FMS and HRMS functionality
  • Integration, Web Enablement

Manage the organization:

  • Capturing and managing organizational subunits
  • Multiple languages, currencies
  • Multiple jurisdictions (automation for legal and regulatory compliance)
  • Achieving configuration flexibility within the organization and across organizations

    • Managing Complex Organizations

    Four different tables and charts illustrating Complex Organizations[D]
    Manage the Organization

    Consolidate & Report - "roll up"

    Drill Down

    Re-organize

    Configure at each level

    Share data - single global instance

    Secure data

    In near real time

    Images of table and a section of a web page[D]
    Process Transactions

    Order, Invoices, Payments, Checks

    Approvals, rules for processing by division

    Automated transactions

    Multiple Jurisdictions

    Regulations, Labor Law, Accounting Principles, Tax Code vary between cities, counties, states, and countries

    Internal Controls Manager
    Global Financials
    Euro as Functional Currency for Oracle Applications
    Oracle Applications Global Accountinq Enqine User Guide
    Oracle Euro Business Support Implementation Guide
    Oracle Financials Country-Specific Installation Supplement
    Oracle Financials Common Country Features User Guide
    Oracle Financials for Argentina User Guide
    Oracle Financials for Australia User Guide
    Oracle Financials for Austria User Guide
    Oracle Financials for Belgium User Guide
    Oracle Financials for Brazil User Guide
    Oracle Financials for Canada User Guide
    Oracle Financials for Chile User Guide
    Oracle Financials for Colombia User Guide
    Oracle Financials for the Czech Republic User Guide
    Oracle Financials for Denmark User Guide
    Oracle Financials for Finland User Guide
    Oracle Financials for France User Guide
    Oracle Financials for Germany User Guide
    Oracle Financials for Greece User Guide
    Oracle Financials for Hungary User Guide
    Oracle Financials for Italy User Guide
    Oracle Financials for Japan User Guide

    Source: Oracle 11i Virtual Applications Documentation Library 11.5.9

    		 Web page screen capture[D]

    Source: SAP Library/SAP R/3 Enterprise Application Components /Financials/Country Versions/Asia-Pacific/China

    Multiple Jurisdictions

    Examples ofmulti-jurisdictional issues WITHIN the US

    National
    Employee Benefits
    Health, Life & Disability Insurance
    Maternity/Paternity/Educational Leave
    Flexible Spending Accounts
    Retirement/401 k/Pension Plans
    COBRA

    Payroll tax
    Federal Withholding
    FICA/Medicare deductions
    State Withholding, Unemployment
    Multi-state Withholding
    State Disability
    Local taxes
    Garnishment

    Regulations
    OSHA
    State OSHA
    EEOC
    Workers Compensation
    Collective Bargaining
    HIPPA
    Family Medical Leave Act
    Sarbanes-Oxley

    		 State
    California taxes
    Board of Equalization
    • Property Taxes
    • Sales & Use Tax
      • State Tax
      • Local Tax
    • Special Taxes
      • Environmental Fees
      • Excise Taxes
      • Fuel Taxes

    Franchise Tax Board
    • State Income Tax
    • Employee State Income Tax Withholding

    Employment Development Department
    • Unemployment Insurance Tax
    • Employment Training Tax
    • Employee State Disability Insurance
    • Independent Contractor Reporting
    		 Local
    San Mateo County Controller's Office
    • Property Tax

    Redwood City Finance Department
    • Business Tax
    • Utility Users Tax

    Map of California counties

    Sources: http://redwoodcity.org/finance/services/index.html, http://www.co.sanmateo.ca.us/smc/county /content/0,, 1774_2126_19550,00.html, http://www.edd.ca.gov/taxind.htm, http://www.ftb.ca.gov/, http://www.boe.ca.gov/proptaxes/sappcont.htm

    Web Enablement

    Representation on an online user guide screen[D]

    SSA: Masterpiece Accounts Payables User Guide

    		 Unreadable web page with links, graphs, and charts

    http://www.peoplesoft.com/media/en/pdf/pia.pdf

    PeopleSoft provides unlimited hierarchical levels, multiple "trees", and configuration for managing organizations

    Capabilities of PeopleSoft with Business Units:
    • Unlimited number of levels arranged hierarchically
    • Configuration flexibility for each business unit (how transactions are entered, approved, and maintained; how and when background processing occurs; how reports are requested; our inter-organizational journal transactions occur; journal error and approval processing; base currencies; how security of data is enforced; bank accounts; payment processing and refund options; etc..)
    • Data is secured by business unit
    • Data can be shared across business units (such as customers)
    • Multiple hierarchies for organizing data along multiple dimensions such as lines of business, legal entities, or business units.
    • Management of the organization is much simpler; multiple organizational models can be used simultaneously (e.g. to project impact)
    		 Example chart of hierarchical levels, trees, and configuration[D]

    Source: PeopleBooks Library > PeopleSoft 8.4 General Ledger People Book > Defining Your Operational Structure

    Lawson installed with "single company" setup

    Chart illustrating Lawson installed with

    [D]
    Shortcomings
    • Limited configuration: Little flexibility to configure process by company level
    • Limited organization: Only 5 FMS "levels" insufficient to model complexity of even basic organizations;
    • HR and FMS integration: separate organizational models
    • Limited security: All data is "shared" so there is no security
    • Limited sharing across pillars
    • Limited re-organization: Very cumbersome to re-organize accounting units, history lost
    • Limited consolidation

    Lawson and Hyperion for consolidation

    Chart illustrating Lawson and Hyperion for consolidation

    [D]
    Shortcomings
    • Limited configuration: Little flexibility to configure process by company level
    • Limited organization: Only 5 "levels" insufficient to model complexity of even basic organizations
    • Limited security: All data is "shared" within a company
    • Limited sharing: All or nothing between companies
    • Limited re-organization: Very cumbersome to re-organize accounting units, history lost
    • Better consolidation....
    • No drill down into real time data
    • No help in HR

    Graph demonstrating Infrastructure Depth and Supply chain[D]

    Graph illustrating The Remarkable Stability of the Computing Industry in the Face of Waves of Significant Change[D]

    Updated August 14, 2015