P0067-R: Verizon - 2002-2004 HRMS System Convergence From SAP To PeopleSoft

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GOVERNMENT EXHIBIT P0067R

Slide 1

HRMS System: Convergence

2002 - 2004 HRMS System Convergence

Convergence from SAP to PeopleSoft

Updated July 24, 2002

Illegible Stamp

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Slide 2

Cost Summary - July 2002

Category Original 2001 Business Case Revised June 2002 Cost Comments
IT Software Development: 7,030,240 [REDACTED TEXT] [REDACTED TEXT] workdays @ [REDACTED TEXT]/day. The original estimate has been reduced because some data conversion work has been done for VIS PeopleSoft conversion; benefits feeds being modified for FGTE labor contract negotiations in PA; and the [REDACTED TEXT] project contingency being eliminated.
       
Hardware - Production: 2,351,000 [REDACTED TEXT] Original estimate assumed production capacity would double. New estimate assumes [REDACTED TEXT] increase.
       
HW (Test): 312,000 [REDACTED TEXT]  
       
License Fee: 1,050,972 [REDACTED TEXT] Reduction in additional license fees negotiated with PeopleSoft.
       
Client Costs: 1,915,750 [REDACTED TEXT] Client costs (HR $[REDACTED TEXT] Payroll $[REDACTED TEXT] ) for training and incremental test resources have been removed from the business case and will be self-funded within current client expense budgets.
       
Total Cost $12,659,962 [REDACTED TEXT]  
  • HRMS conversion can take place independent of financial systems.
  • Project focus is data conversion, PeopleSoft business processes will be adopted whenever possible, and [REDACTED TEXT].
  • Assumes 2002 project initiation to leverage VIS convergence experience and work effort required to support [REDACTED TEXT].

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Slide 3

Annual Savings - July 2002

Category Description Amount
IT COPS Savings REDACTED REDACTED
Software License Fees REDACTED REDACTED
D&E Savings REDACTED REDACTED
ERP Upgrades REDACTED REDACTED
Personnel Services Savings REDACTED REDACTED
Data Center Savings REDACTED REDACTED
Human Resources Savings REDACTED REDACTED
     
Total Annual Savings REDACTED REDACTED
     
Payback Period REDACTED REDACTED
     
     

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Slide 4

Funding Strategy

REDACTED

  • Charge the following project costs [REDACTED TEXT] in 2002:
    • Production hardware = [REDACTED TEXT]
    • Test hardware = [REDACTED TEXT]
    • Begin implementation of retroactive pay and gross pay software change = [REDACTED TEXT]
    • Begin work on data conversion and system availability = [REDACTED TEXT]
    • Total charged [REDACTED TEXT] in 2002 = [REDACTED TEXT]
  • Remaining IT software development costs to be incurred in 2003 and 2004:
    • [REDACTED TEXT] workdays @ [REDACTED TEXT]/day = [REDACTED TEXT]
    • PeopleSoft license fee adjustment = [REDACTED TEXT]
    • Total 2003 and 2004 D&E funding requirement = [REDACTED TEXT]
  • Potential conversion strategy:
    • 2 phases = 1st phase to include approximately 15,000 employees
    • Cut phase 1 in October 2003, phase 2 April 2004

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Slide 5

Business Drivers for Convergence

REDACTED

  • 70% of Verizon employees currently supported by PeopleSoft.
  • Supports all four Human Resources key business priorities, [REDACTED TEXT].
  • Enables the implementation of standard business processes (e.g. personnel administration, payroll office support, compensation administration, recruitment), and reduces business operating costs.
  • Facilitates the administration of Benefits Plans by having interfaces from only one system to our key third party administrators [REDACTED TEXT].
  • Eliminates an entire application platform, which significantly reduces system support costs: COPS labor; hardware support; software maintenance fees.
  • Reduces ongoing system maintenance by eliminating the need for applying mandatory D&E updates to two systems. Eliminates the need for future system upgrades to the SAP HR/Payroll system.
  • Facilitates the introduction of new companies and the transfer of employees between companies.
  • Simplifies organizational reporting.
  • Eliminates current LOB independent plans and workarounds to consolidate HR and payroll administrations.

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Slide 6

Requested Supporting Documentation:

  • Appendix A - Status of Transition Funding by Business Segment.
  • Appendix B - Transition Business Cases - Not Approved.
  • Appendix C - eHR Initiatives Enabled by Convergence.
  • Appendix D - Summary of Human Resource Force Reductions.

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Slide 7

Appendix A

Verizon Transition Costs Summary
($ Millions)

  Original Plan 2001 Adj 2002 Adj Adjusted Plan Spending to Date 05/31/02 Expected Remaining Spending Total Spending Over (Under) Spending
Telecom REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
Wireless REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
International REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
Information Services REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
Corporate & Other REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Total REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED

• Includes [REDACTED TEXT] for funding HRMS convergence project in 2002

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Slide 8

Appendix B

Transition Business Cases - Not Approved

  ($millions)
    2000-2002

Lob-Exp:

Non-systems
Exp

2000-2002

System

Systems
Expense

2000-2002
Capitalized
Software

Capital-
SOP

2000-2002

D&E

2000-2002

Other Cap.

Cap-
Hardware

2000-2002

Exp Sav

Exp.-
Savings

2000-2002

Force Save

Force-
Savings

2000-2002

Revenue

Revenue

2000-2002

Total Expense
2000-2002

Total Capital
  LOB / Project Name
   
  Nat Ops / Consolidation REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  ESG / Simplification / Standardization Programs REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
(1) Retail / Retail Markets Data Warehouse (NA) REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Retail / Single Sales Com / Tracking System REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Retail / C-SAV REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  ASG / Verizon Online IT Systems and Architecture REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Finance / Transition West to PeopleSoft REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  NSG / Real Estate REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
(2) NSG / Implementation of Barcode Systems (NA) REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  NSG / Inventory Recovery Initiative REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  IT / Consolidation of Applications REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Total Not Approved REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
   
  New Requests for Funding (July 2002): REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
(4) Natural Returns: REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Total Funding Required REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
  Funding Requested for 2002 REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
   
(4) Verizon Bus. Center @ Verizon.com REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED
   
(3) iConsole Desktop Integration REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED REDACTED

(1) Retail has been asked to provide a limited version of the Marketing Date Warehouse project. The not approved portion is designated as (NA).
(2) A portion of [REDACTED TEXT] of the Barcode project was approved. This portion is designated as Not Approved (NA).
(3) Currently under review with intent to cover within target (Gap has been closed).
(4) Currently under review.

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Slide 9

Appendix C

eHR Initiatives Enabled by Convergence

  • Integrated Workflow - Reduction of paper processing; faster transaction cycle times
  • Employee Services & Payroll Services - Standardized Administrative Support
  • Organizational Hierarchy and Reporting
  • Integrated HRMS Data Mart/Warehouse Strategy
  • Role Based Security -Enhances/simplifies data security and associated administration
  • Interactions and Transactions with Benefits Vendors (primarily Hewitt and Fidelity)
  • Absence Management Tracking System
  • Staffing Systems (Associate, Management, Executive, Leadership Development)
  • Compensation Systems (Associate, Management, Executive)
  • Workforce Development Systems (Performance Management)
  • Labor Relations Database (bargaining planning, contracts, grievance tracking, etc.)
  • Worker's Compensation System
  • Accident Reporting System
  • Diversity Tracking and Reporting
  • Migration to Common Processes (time & attendance, gross/net payroll calculations, etc.)
  • Facilitate/Simplify the Movement of Employees across Verizon entities

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Slide 10

Appendix D

Human Resource
Summary of Force Reduction

Human Resource Force Savings are as follows:

  FTE's % of Current Staff
     
Benefits Methods Staff REDACTED REDACTED
ESC Staff REDACTED REDACTED
Data Integrity Staff REDACTED REDACTED
SAP Production Support Staff REDACTED REDACTED
Total REDACTED REDACTED

Verizon logo

VZ-ORCL 02558 Highly Confidential

Updated August 14, 2015

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