Government Exhibit P3062 [Non-designated testimony redacted]
00005 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21 | Q Okay. And can you please state your full | 22 | name and address for the record, sir? | 23 | A Richard Scott Elliott, 410 North Mercedes | 24 | Drive, Norman, Oklahoma 73069. | | |
00008 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15 | Q Mr. Elliott, what is your current job | 16 | title? | 17 | A Human resources portfolio manager for -- | 18 | or in information management and technology. | 19 | Q And who is your current employer? | 20 | A Kerr-McGee Corporation. | 21 | Q And how long have you held this position | 22 | at Kerr-McGee? | 23 | A Three years and a few days. | 24 | Q And can you please give me a general | 25 | description of your job responsibilities in your |
00009 | 1 | current position? | 2 | A Sure. I manage a group of IT | 3 | professionals that supports several of our | 4 | corporate clients, human resources, legal and | 5 | medical groups. | 6 | Q How many IT professionals do you manage? | 7 | A Eight other folks besides me. | 8 | Q And how many of those report directly to | 9 | you? | 10 | A All of them. | | | | | | | | | | | | | | | 18 | Q Do you also do any work that would | 19 | support the financial aspect of Kerr-McGee? | 20 | A No, that's handled by another group in MI | 21 | & T. | 22 | Q Is there another person who would be | 23 | considered your counterpart that handles the | 24 | financials? | 25 | A Yes. |
00010 | 1 | Q And who is that? | 2 | A Bryan Wilks. | 3 | Q And what's his position? | 4 | A Portfolio manager as well for financial | 5 | systems. | 6 | Q And do your job responsibilities also | 7 | include responsibility for software procurement? | 8 | A In an advisement capacity, yes. | 9 | Q What do you mean when you say in an | 10 | advisement capacity? | 11 | A Our strategy at Kerr-McGee is that our | 12 | customers are the ones who drive software | 13 | procurement decisions and we are advisors to them | 14 | in that process. | | | | | | | | | | | | | | | | | | | | | | |
00011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 17 | Q Are you also responsible for working to | 18 | insure that Kerr-McGee gets the best deal that it | 19 | can on software procurement? | 20 | A We act in different roles depending on | 21 | the, depending on the procurement activities. | 22 | Q Is it ever a goal to try to get the best | 23 | value or best price that you can on software | 24 | procurement? | 25 | A Always. |
00014 | | | | | | | | | | | | | | | | | 9 | Q. (By Ms. McKinney) Can you explain to me | 10 | generally what the nature of Kerr-McGee's | 11 | business is? | 12 | A Yes. Again, back to our two main lines | 13 | of business, oil and gas exploration and | 14 | production and then chemical manufacturing. Our | 15 | main product is titanium dioxide, a pigment. We | 16 | do produce a few other electrolytical chemicals | 17 | and for a short period of time we still have a | 18 | small business producing railroad ties. It's | 19 | being phased out at the end of this year. | 20 | Q And does Kerr-McGee have any | 21 | operations -- or let me ask it this way. In what | 22 | geographical areas does Kerr-McGee have | 23 | operations? | 24 | A We have operations, I don't know how many | 25 | states, but across the United States and to my |
00015 | 1 | knowledge we have operations in Brazil, Bonine, | 2 | Morocco, Australia, China, the Netherlands, | 3 | Germany, the UK. Those are the major ones. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00018 | | | 2 | Q So given the definitions that you've just | 3 | given me, does the oil and gas division have | 4 | independent authority for procurement of any ERP | 5 | software? | 6 | A In my experience at Kerr-McGee, those ERP | 7 | software decisions have been global decisions, | 8 | not business unit specific. | 9 | Q And what do you mean by global decisions? | 10 | A We, our preferred strategy at Kerr-McGee | 11 | is to have for each major functional area one | 12 | global supplier of software. In financials we | 13 | have one, in HR we have one. We have not been | 14 | able to accomplish that yet in the supply chain | 15 | side to my knowledge. | | | | | | | | | | | | | | | | | | | | |
00031 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18 | Q. (By Ms. McKinney) And how would you | 19 | define core functionality on the financial | 20 | management side? | 21 | A The general ledger, accounts payable. | 22 | There are a variety of for us revenue or I should | 23 | say upstream oil and gas specific accounting | 24 | functions that would be core for us. I'm sure | 25 | there's a variety of others that could be listed, |
00032 | 1 | but those are the ones that are main ones for us | 2 | in my opinion. | 3 | Q Do you know what any of those oil and gas | 4 | specific accounting functions are? | 5 | A Some. | 6 | Q Can you name them for me? | 7 | A One would be -- the two major items are | 8 | tracking production and then tracking the revenue | 9 | that we receive for production. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00033 | 1 | Q. (By Ms. McKinney) Would these | 2 | accounting functions you've just named, tracking | 3 | the production and tracking revenue, are those | 4 | functions that are specific to an oil industry or | 5 | to an oil company? | 6 | A That's not my area of expertise, but it | 7 | would seem to be so because that is oil and gas | 8 | production and oil and gas revenue. | 9 | Q Which software vendors offer core | 10 | financial management functionality? | 11 | MR. HAMMAKER: Objection, vague and lacks | 12 | foundation. | 13 | THE WITNESS: I don't know the complete | 14 | list. Again, not my area of expertise or | 15 | responsibility. | 16 | Q. (By Ms. McKinney) Do you know some? | 17 | A Yes. | 18 | Q Which ones would you name? | 19 | A The ones I can specifically name would be | 20 | PeopleSoft, Oracle, Lawson and SAP. | 21 | Q And with regard to human resources | 22 | management core functionality, which vendors | 23 | offer HR core functionality? | 24 | A Again, I don't know the complete list, | 25 | but I would list the same four. |
00034 | 1 | Q Any others? | 2 | A It's my understanding that Microsoft | 3 | purchased Great Plains, which I believe offers in | 4 | name at least those core functionality. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25 | Q But you don't have the same level of |
00035 | 1 | knowledge about Lawson, SAP or Microsoft that you | 2 | do about Oracle and PeopleSoft? | 3 | A The Oracle and PeopleSoft knowledge is | 4 | more current than the other two because we did | 5 | not -- or the other three. We did not have | 6 | detailed evaluations of Microsoft and of SAP | 7 | during our selection process. Lawson I do have a | 8 | feel but not detailed modules or detailed | 9 | functionality. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00039 | | | | | 3 | Q Mr. Elliott, who would you name to be the | 4 | foremost ERP software vendors currently? | 5 | MR. HAMMAKER: Objection, vague, lacks | 6 | foundation. | 7 | THE WITNESS: Based on our process and a | 8 | review of Gartner recommendations, the same four | 9 | I listed previously, PeopleSoft, Oracle, Lawson | 10 | and SAP. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00040 | | | | | | | | | | | | | | | 8 | Q. (By Ms. McKinney) And in your opinion | 9 | what factor or factors drive innovation in the | 10 | software industry? | 11 | A I would list competition, business | 12 | environment changes, customer demands, regulatory | 13 | changes. | | | | | | | | | | | | | | | | | | | | | | | | |
00041 | | | | | | | | | | | | | | | | | | | 10 | Q Do you consider Kerr-McGee's ERP software | 11 | needs to be complex? | 12 | A Yes. | 13 | Q Do you consider them to be unique? | 14 | A No. | | | | | | | | | | | | | | | | | | | | | | |
00042 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23 | Q. (By Ms. McKinney) Mr. Elliott, what | 24 | core financial management software does | 25 | Kerr-McGee use? |
00043 | 1 | A Oracle. | 2 | Q And -- | 3 | A And Energy Extensions from P2ES. | 4 | THE REPORTER: P2BS? | 5 | THE WITNESS: ES. | 6 | Q. (By Ms. McKinney) Do you know what | 7 | modules it uses from Oracle on the finance side? | 8 | A I do not know for sure. | 9 | Q And what is Energy Extensions? | 10 | A To my knowledge that deals with all of | 11 | the oil and gas specific revenue accounting | 12 | including production. | 13 | Q Would you consider that a point solution? | | | | | | | 17 | THE WITNESS: I really could go either | 18 | way on that. It's integrated with Oracle. I | 19 | think, my opinion would be that it is not. | | | | | | | 23 | Q And why would it not be considered a | 24 | point solution in your opinion? | 25 | A Oracle integration. |
00044 | | | | | | | | | 5 | Q Is the Oracle financial management | 6 | software used in both the oil and gas and the | 7 | chemical manufacturing business units? | 8 | A Yes. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00045 | | | 2 | Q Are there any business units within | 3 | Kerr-McGee that use some other financial | 4 | management software besides Oracle? | 5 | A If there are I don't know. | 6 | Q Do you know when Oracle financial | 7 | management software was initially purchased or | 8 | licensed? | 9 | A Prior to the year 2000. | | | | | | | | | | | | | | | | | 18 | Q Do you know what languages Kerr-McGee | 19 | operates the Oracle financial management software | 20 | in? | 21 | A I do not. | 22 | Q And do you know what currencies are used | 23 | on the Oracle financial management software, if | 24 | there are any foreign currencies used? | 25 | A I'm sure there are, but I don't know |
00046 | 1 | specifically what we use. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 17 | Q We'll shift to the HR side now. | 18 | What core HR software does Kerr-McGee | 19 | currently use? | 20 | A PeopleSoft. | 21 | Q And is the PeopleSoft software used in | 22 | all geographic regions where Kerr-McGee operates? | 23 | A Yes. | 24 | Q And are there any business units that do | 25 | not use the PeopleSoft HR software? |
00047 | 1 | A No. | 2 | Q And when was the PeopleSoft HR software | 3 | initially purchased or licensed? | 4 | A 2001. | | | | | 7 | Q And do you recall how much Kerr-McGee | 8 | paid PeopleSoft? | 9 | A There are documents that support this. I | 10 | believe the license fees were in the neighborhood | 11 | of 1.5 million. | 12 | Q And did Kerr-McGee pay PeopleSoft any | 13 | implementation fees? | 14 | A No. They were not our implementation | 15 | partner. | 16 | Q And does it currently pay PeopleSoft, | 17 | does Kerr-McGee currently pay PeopleSoft any | 18 | maintenance fees? | 19 | A Yes. | 20 | Q And how much does it pay in maintenance | 21 | fees? | 22 | A This year it will be approximately | 23 | 360,000,I believe, this year. | 24 | Q Do you know what it has been in previous | 25 | years since the implementation? |
00048 | 1 | A Yes. | 2 | Q What has it been? | 3 | A The first year was 300,000, succeeding | 4 | year was around 330 and then I believe about 345. | 5 | Q That brings us to this year, which was | 6 | 360? | 7 | A Uh-huh. | 8 | Q What version of the PeopleSoftHR | 9 | software does Kerr-McGee use? | 10 | A Is there a specific module that you're | 11 | asking about? | 12 | Q I guess we should back up. Which modules | 13 | were licensed? | 14 | A We have HR, we have time and attendance, | 15 | we have licensed payroll, benefits | 16 | administration, data warehouse. There are three | 17 | analytic suites that we have licensed, Workforce | 18 | Analytics, Score Card and Rewards. In case I'm | 19 | missing any of these there's a document in our | 20 | material that reflects all of them. Employee and | 21 | manager self service and a variety of E modules | 22 | such as compensation, recruiting, compensation | 23 | manager, E pay. | | | | |
00049 | | | | | | | | | | | | | | | | | | | 10 | Q In which languages does Kerr-McGee | 11 | operate the PeopleSoft HR software? | 12 | A Currently English, German and Dutch. | 13 | Q And do you have any plans to operate it | 14 | in any additional languages? | 15 | A Not at the moment. | 16 | Q And in which currencies, if there are any | 17 | foreign currencies involved, does Kerr-McGee | 18 | operate the PeopleSoft HR software? | 19 | A Foreign is highly dependent on where you | 20 | are, but if you're talking non U.S. currencies -- | 21 | Q Non U.S., yes. | 22 | A Yes. We -- I'm sorry, we also use | 23 | French. For -- we use the pound in the UK, we | 24 | use the euro, we also use the Swiss frank, we | 25 | also have a Canadian dollar. And I believe |
00050 | 1 | that's it. I think the rest of our folks are ex | 2 | pats, and so it would be the U.S. dollar. | 3 | Q Are these foreign currencies that you | 4 | named, are those currencies in which employees | 5 | are being paid? | 6 | A Yes. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00051 | | | | | | | | | | | | | | | 8 | Q Is there any other human resources | 9 | management software that Kerr-McGee uses? | 10 | A No. We have one global instance. | 11 | Q Do you use any software from any of the | 12 | following vendors? And I'm going to go down the | 13 | list. Do you use any software from SAP? | 14 | A Kerr-McGee does not. We contract for | 15 | payroll processing in Germany with a company who | 16 | does. | 17 | Q What do you mean when you say you | 18 | contract for payroll processing? | 19 | A We pay a fee each year for a company to | 20 | produce payroll checks for us in Germany. | 21 | Q Is that similar to outsourcing payroll? | 22 | A It's outsourcing the production of | 23 | checks. | 24 | Q But would you consider it outsourcing of | 25 | the payroll function? |
00052 | 1 | A No. | 2 | Q Just the check process? | 3 | A We take care of the function, they | 4 | produce the checks. It's not BPO. | | | | | | | | | | | | | | | | | | | 14 | Q Do you use Hyperion? | 15 | A I believe we do for some financial | 16 | planning, but I am not 100 percent certain. | | | | | | | | | | | | | | | | | | |
00053 | | | | | | | | | | | | | 7 | Q And do you use any software from ADP | 8 | aside from the payroll processing in Germany? | 9 | A We outsource payroll, check production to | 10 | ADP in the United States. And there is a piece | 11 | of software that lives at our site that enables | 12 | that to happen. | 13 | Q Do you outsource any other part of the | 14 | payroll function aside from check processing? | 15 | A ADP handles production of checks, direct | 16 | deposits, tax filing. Other than that we do all | 17 | of the process work ourselves. | | | | | | | | | | | | | | | | |
00054 | | | | | | | | | | | | | | | 8 | Q. (By Ms. McKinney) I'd like to ask you | 9 | now about the process through which you selected | 10 | PeopleSoft for HR software. | 11 | A Okay. | 12 | Q When did that process begin? | 13 | A The actual selection process began | 14 | shortly after my arrival at Kerr-McGee, which | 15 | would be June 2001. | 16 | Q And who was the primary person | 17 | responsible for the selection of new HR | 18 | management software? | 19 | A The lead person would have been Lynda | 20 | Garcia. | | | | | | | | | | |
00055 | 1 | Q Is she still with Kerr-McGee? | 2 | A She is. | 3 | Q Do you know what her title is now? | 4 | A I do not. She's in the finance | 5 | organization. | | | | | | | | | | | 11 | Q And do you know if Ms. Garcia was the | 12 | person who managed the project on a day to day | 13 | basis? | 14 | A The selection project? | 15 | Q Yes. | 16 | A She was, she was our lead person on the | 17 | Kerr-McGee side. | 18 | Q Did she have any title associated with | 19 | the selection process such as project manager or | 20 | something similar? | 21 | A Not that I'm aware of. | 22 | Q And what was your involvement in the | 23 | selection process? | 24 | A I was the I think technical lead was the | 25 | official title. |
00056 | 1 | Q And what did that mean in practical | 2 | terms? | 3 | A Practical terms, I managed our group of | 4 | individuals from the IT side that participated in | 5 | the selection process. I also participated in | 6 | day to day activities such as question formation, | 7 | reviewing demonstrations, doing research if | 8 | required. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00057 | | | | | | | | | | | | | | | 8 | Q. (By Ms. McKinney) And what do you | 9 | recognize this document to be? And let me just | 10 | say for the record, this document appears to be a | 11 | Power Point, on the front it's entitled | 12 | Kerr-McGee HR Financial Analysis, Employee | 13 | Service Center and HRIS dated September 2001 and | 14 | Bates labeled Kerr-McGee 008 through 040. | 15 | Mr. Elliott, what do you recognize this | 16 | document to be? | 17 | A This document is a summarization of the | 18 | HR strategy that our HR organization was pursuing | 19 | in 2001. | | | | | | | | | | | | |
00058 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24 | Q The first one says project consultants, | 25 | Scott, Madden & Associates. And who was Scott, |
00059 | 1 | Madden & Associates? | 2 | A An HR consulting firm. | 3 | Q And what was their role on the HR | 4 | software selection process? | 5 | A It's described well here. They were | 6 | facilitators for the process. | 7 | Q And what did they do as facilitators? | 8 | A A facilitator, possibly coordinator is an | 9 | equally good term. They organized the work | 10 | products, facilitated discussions, facilitated | 11 | planning, were responsible for not only the HRIS | 12 | side but integrating it into the larger HR | 13 | strategy that this document represents. And that | 14 | was their sole involvement. As it states here, | 15 | they do not have or at least did not have at that | 16 | time an HRIS implementation practice. | | | | | | | | | | | | | | | | | | |
00060 | | | 2 | Q Why did you feel it was necessary to | 3 | engage a consultant to assist in this process? | 4 | A I can't answer for Lynda. | 5 | Q Was it Lynda who made the decision to | 6 | engage Scott, Madden? | 7 | A It was the HR organization as a whole and | 8 | Lynda was our point person. | 9 | Q And who was the main point person for | 10 | working with Scott, Madden? | 11 | A Lynda and I were both part of the, quote | 12 | unquote, project office, but Lynda was our point | 13 | person on the project within. | 14 | Q Do you know how much Kerr-McGee paid | 15 | Scott, Madden for its consulting services? | 16 | A I do not. | 17 | Q Would Lynda know? | 18 | A It's been a while. You'd have to ask | 19 | her. | | | | | | | | | | | 25 | Q. (By Ms. McKinney) Now, next on this |
00061 | 1 | list it says HRIS project office. | 2 | A Uh-huh. | 3 | Q Do you know what that term means? | 4 | A I know what it means with regards to our | 5 | selection process. | 6 | Q Sure. What was the HRIS project office? | 7 | A Would you like me to read it straight off | 8 | the document? | 9 | Q No. I would like to know, you know, what | 10 | you know. If the document helps to refresh your | 11 | recollection, that's fine, but I'd like you to, | 12 | you know, testify based on your knowledge. | 13 | A My view of the HRIS project office, the | 14 | responsibilities again are listed here | 15 | specifically. We as a group were responsible for | 16 | coordinating, well, the execution of the project, | 17 | obtaining resources, doing the visits as we | 18 | discussed. There were a lot of discussions | 19 | regarding what questions would be asked, what | 20 | weighting would be assigned to each one of the | 21 | criteria, how the RFPs or RFIs would look after | 22 | they were issued and we were facilitators, | 23 | coordinators on all those. My personal main task | 24 | was to coordinate the technical resources | 25 | involved. |
00062 | 1 | Q Were you a part of the HRIS project | 2 | office? | 3 | A Yes. | 4 | Q Who else was a part of the HRIS project | 5 | office, do you know who made up that group? | 6 | A Lynda Garcia was the main person and | 7 | officially we included Scott, Madden as a part of | 8 | the project office. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25 | Q And then these boxes here on Page 7, you |
00063 | 1 | said these are all people who participated in the | 2 | process? | 3 | A Yes. | 4 | Q Anda are these all groups that would be | 5 | end users of the software? | 6 | A Yeah. | | | | | | | | | 11 | Q. (By Ms. McKinney) How were these people | 12 | selected to participate in the selection process? | | | | | 15 | THE WITNESS: I don't recall the exact | 16 | process we went through to choose the folks. The | 17 | goal was to have people representing as many | 18 | different areas in the HR organization as we | 19 | could and plus involve technical people in from | 20 | several of our major areas as well. | 21 | Q. (By Ms. McKinney) Who selected these | 22 | people who were participants in the software | 23 | selection process? | 24 | A I'll go back to my previous answer. I | 25 | don't know the exact details of how we selected |
00064 | 1 | these people. As I look through here it was I | 2 | believe my recommendations on the technical side | 3 | to say these are the people that need to | 4 | participate based on their areas of expertise. | 5 | Q And was Lynda Garcia responsible for | 6 | selecting the other people involved here? | 7 | A I'll say again, I don't know the details | 8 | of how they were selected. | 9 | Q But you selected the people listed in | 10 | this box labeled technical who are here under | 11 | your name? | 12 | A Yes. | 13 | Q And are those the people you referred to | 14 | earlier who you were responsible for managing | 15 | throughout the selection process? | 16 | A For this process, yes. | 17 | Q Were you responsible for managing anyone | 18 | else on this chart? | 19 | A No. | 20 | Q Was Lynda Garcia responsible for | 21 | coordinating the other people in these other | 22 | boxes on this page? | 23 | A Yes. She served as the functional lead, | 24 | if you will. | | |
00065 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24 | Q Can you tell me what, what the role of | 25 | subject matter experts was in this process? |
00066 | 1 | A As I recall, basically the document says | 2 | input and guidance. Many of these folks would be | 3 | consumers of, as I recall, some of the services | 4 | within the HRIS. | | | | | | | | | | | | | | | 12 | Q Did the -- did the technical team that | 13 | you were responsible for managing meet on a | 14 | regular basis throughout the selection process? | 15 | A Yes. We had scheduled meetings plus as | 16 | needed meetings depending on what was happening | 17 | in the process. | 18 | Q Let me back up just a second. How long | 19 | did the selection process take in total? | 20 | A We started this in June of 2001, the | 21 | contract was signed I believe at the end of | 22 | October 2001. | 23 | Q And how frequently did the technical team | 24 | meet during that time? | 25 | A I don't think there was any standard |
00067 | 1 | number of meetings we had on a weekly basis. | 2 | Q So you didn't have some kind of regular | 3 | set time for meeting? | 4 | A No. There was -- as I recall, there were | 5 | group meetings where the entire group met | 6 | together. | 7 | Q Would that have been the entire -- | 8 | A Core selection team. | 9 | Q -- core selection team? | 10 | Including your technical team? | 11 | A Yeah. | 12 | Q And how frequently were those meetings? | 13 | A I think it depended on where we were in | 14 | the process. I can't recall the exact schedule. | 15 | Q Could you estimate the total number of | 16 | times that the HRIS core selection team met over | 17 | the course of the selection process? | 18 | MR. GORESEN: I'm going to object to the | 19 | extent it calls for speculation. | 20 | THE WITNESS: Anything I gave you would | 21 | be a guess. | | | | | | | | |
00068 | | | | | | | | | 5 | Q And with regard to your technical team, | 6 | can you estimate how many times your technical | 7 | team met on its own throughout the entire | 8 | selection process? | 9 | A As an estimate, we were visiting maybe | 10 | not in total but at least, you know, two or more | 11 | weekly basis. We did not have a set time where | 12 | we got together as an entire team, only as | 13 | needed. | | | | | | | | | | | | | | | | | | | | | | | | Q I'm not going to ask any more questions |
00069 | 1 | on this document for a little bit. | 2 | What were the main responsibilities of | 3 | your technical team in this process? | 4 | A To review, to the extent we could, the | 5 | technical soundness of the proposed solutions. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23 | Q Do you know if any presentation was ever | 24 | made to the CEO or other executives regarding the | 25 | selection of PeopleSoft? |
00070 | 1 | A I believe there was. | 2 | Q And were you part of that presentation? | 3 | A No. | 4 | Q Who did that presentation? | 5 | A I believe Lynda did. | 6 | Q Do you know when that was? | 7 | A I do not know the exact date. My surmise | 8 | would be either late September or early October. | 9 | Q Did you work with Lynda at all in | 10 | preparing that presentation? | 11 | A Scott, Madden was again the main | 12 | facilitator for producing documents, but I did | 13 | participate with Lynda as well. | | | | | | | | | | | | | | | | | | | | | | | | |
00072 | | | | | 3 | Q In addition to Scott, Madden, did you | 4 | consult with any other outside resources as part | 5 | of the selection process? | 6 | A One would have been Gartner. | 7 | Q And what was your interaction with | 8 | Gartner Group? | 9 | A We asked the question who would be their | 10 | I believe the term is magic quadrant vendors with | 11 | regards to the HR space. | 12 | Q And what did they tell you? | 13 | A PeopleSoft, Oracle, SAP, Lawson. | | | | | | | | | | | | | | | | | | | | | | | | |
| 00073 | | | | | | | | | | | | | | | | | | | | | | | | 13 | Q And did you personally have contact with | 14 | someone at Gartner Group? | 15 | A I did not. | 16 | Q Do you know who did? | 17 | A I believe Lynda. | 18 | Q And do you know if she met with them in | 19 | person? | 20 | A I do not know for sure. | 21 | Q Do you know if she had personal contact | 22 | with them at all? | 23 | A Yes. I know for a fact there was | 24 | definitely a phone visit. At that time we had a | 25 | subscription to their services, so I don't know |
00074 | 1 | if there was anything else involved. | 2 | Q Do you know if they provided Kerr-McGee | 3 | with any written research report? | 4 | A I don't know. Ours was a fairly simple | 5 | and straightforward question. | 6 | Q So you never saw some written research | 7 | report from Gartner Group? | 8 | A No. | 9 | Q So the information that came from Gartner | 10 | Group you got through Lynda Garcia? | 11 | A Yes. | | | | | | | | | | | | | | | | | | | | | | | | | 24 | Q At what stage did you make reference | 25 | calls? |
00075 | 1 | A After, I believe, the field had been | 2 | narrowed to PeopleSoft and Oracle. | 3 | Q So you didn't call any references for | 4 | Lawson or SAP? | 5 | A None. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25 | Q. (By Ms. McKinney) Do you consider |
00076 | 1 | yourself to be a sophisticated customer of EAS | 2 | software? | 3 | MR. GOREEN: I'm going to ask for -- are | 4 | you asking if Scott Elliott considers himself to | 5 | be a sophisticated customer? | 6 | MS. McKINNEY: Yes. | 7 | THE WITNESS: When it comes to | 8 | Kerr-McGee's needs, yes. | 9 | Q. (By Ms. McKinney) Could you describe | 10 | for me the main steps in the process of selecting | 11 | the PeopleSoft HR software, if you know? | 12 | A You have the documents that describe all | 13 | of them. At a high level, again, based on | 14 | Gartner's recommendations, we identified four | 15 | companies that we felt like we should pursue. | 16 | All four companies were contacted to let them | 17 | know that we were actively engaged in a selection | 18 | process. PeopleSoft, Oracle and Lawson | 19 | responded. SAP did not. The request for | 20 | information and detailed questions were | 21 | developed, sent out and received back from those | 22 | three vendors. We had on site demonstrations at | 23 | Kerr-McGee from those three vendors. The RFI | 24 | responses and the presentations were graded by | 25 | the HRIS selection team. Lawson was eliminated |
00077 | 1 | based on that grading. PeopleSoft and Oracle | 2 | returned for additional demonstration. Two | 3 | visits were made, one to Oracle headquarters, one | 4 | to a PeopleSoft executive gathering. Reference | 5 | calls were made. The team made the | 6 | recommendation to upper management and they | 7 | approved. | | | | | | | | | 12 | Q Were there any other factors that went | 13 | into developing that list of what four vendors | 14 | Kerr-McGee would consider? | 15 | A Yeah, there were two other vendors | 16 | that -- I'm not sure, I can't remember the exact | 17 | nature of the research we did, but Baan and J.D. | 18 | Edwards were both considered in addition to those | 19 | four folks. Based on what we could determine, I | 20 | would think primarily from J.D. Edwards website, | 21 | it looked like they lacked the international | 22 | functionality that we thought we needed. Baan | 23 | was in serious financial difficulty prior to | 24 | their acquisition by SSI. | | |
00078 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18 | Q And then you mentioned that all four of | 19 | the vendors on your list, Oracle, PeopleSoft, SAP | 20 | and Lawson, were contacted? | 21 | A Correct. | 22 | Q In what way were they contacted by | 23 | Kerr-McGee? | 24 | A I believe Lynda Garcia phoned each one of | 25 | them personally. |
00079 | 1 | Q And do you know about what time frame | 2 | this was in? | 3 | A It would have been in June, I believe. | 4 | Q And were you on any of those phonecalls | 5 | that Lynda Garcia made? | 6 | A No. | 7 | Q Do you know the nature of the phonecalls | 8 | or what she said to them? | 9 | A Back to my previous, previous answer. It | 10 | would have been that we were actively engaged in | 11 | an HR selection process and we were contacting | 12 | them to solicit their participation and to also | 13 | find out where we should send our request for | 14 | information. | 15 | Q At the time that she called each of those | 16 | four, do you know if Kerr-McGee intended to send | 17 | each of those four vendors an RFI? | 18 | A I believe that was our intent. | 19 | Q And did she ask for any response from | 20 | them during those phone conversations? That is, | 21 | was she seeking any response from them prior to | 22 | sending the RFI? | 23 | MR. GORESEN: I'm going to object to the | | | | |
00080 | | | | | 3 | A To the best of my knowledge it was to | 4 | whom and where should we send the RFIs. | 5 | Q And you said that three responded? | 6 | A Yeah. | 7 | Q And which three were those? | 8 | A PeopleSoft, Oracle and Lawson. | 9 | Q And SAP did not respond? | 10 | A Correct. | 11 | Q And what does that mean? | | | | | | | | | | | 17 | Q. (By Ms. McKinney) Does that mean -- did | 18 | Lynda talk to anyone at SAP? | 19 | A I do not know specifically who she would | 20 | have talked to. They did not provide the | 21 | information which was who should we send the RFI | 22 | to and to where should it be sent. | 23 | Q Do you know if she, if she was able to | 24 | get anyone on the phone and speak with them? | 25 | A I do not know. |
00081 | 1 | Q Do you know who she tried to call at SAP? | 2 | A No. | 3 | Q Do you know if she left a voice-mail with | 4 | anyone at SAP? | 5 | A I wasn't in on the call. I don't know if | 6 | she talked to a person or left a voice-mail. | 7 | Q Do you know if she ever sent any written | 8 | communications to SAP? | 9 | A Not that I'm aware of. | 10 | Q Do you know if she made any subsequent | 11 | attempts to contact SAP either by phone or | 12 | through written communications? | 13 | A I believe there was more than one | 14 | attempt. I don't know how many. | 15 | Q Do you know how long of a time period she | 16 | spent trying to get in touch with SAP? | 17 | A No, I don't know exactly. The documents | 18 | we have we don't list the dates that, you know, | 19 | exact dates the RFIs went out or when the | 20 | phonecalls were made or when they were contacted. | 21 | Q And to your knowledge did SAP ever | 22 | respond? | 23 | A Yes. | 24 | Q Do you know when they responded? | 25 | A I don't know the exact date. |
00082 | 1 | Q Do you know -- | 2 | A Our documents -- | 3 | Q -- the approximate date? | 4 | A Our documents state that it was while the | 5 | process was well underway. I believe it was | 6 | after we had already received RFI responses from | 7 | the other vendors. | 8 | Q Do you know how SAP responded at that | 9 | time? | 10 | A Other than calling Lynda, no. | 11 | Q Do you know that they called Lynda? | 12 | A Yes. | 13 | Q And do you know -- but you don't know | 14 | anything else about their response? | 15 | A No. | 16 | Q Do you know if they at that point were | 17 | seeking to compete for Kerr-McGee's HR business? | 18 | A Yes. | 19 | Q And Kerr-McGee declined to entertain any | 20 | bid from SAP? | 21 | A Correct. We did not send them an RFI. | 22 | Q Why did Kerr-McGee decline to send SAP an | 23 | RFI? | 24 | A They did not meet our requests for | 25 | information and we were already well underway in |
00083 | 1 | the process. | 2 | Q Was there any other reason that you | 3 | didn't entertain SAP in the process? | 4 | A I don't know what it would have been, no. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00085 | | | | | | | 4 | Q. (By Ms. McKinney) Did you have to | 5 | purchase any new hardware in order to install the | 6 | PeopleSoft software? | 7 | A Yes, we did. We did not have the | 8 | hardware infrastructure that would have supported | 9 | it. | 10 | Q Can you describe for me what hardware you | 11 | had to purchase? | 12 | A Sure. We purchased a database server, | 13 | that's HP, we also purchased a file and print | 14 | server, two application servers, two web servers | 15 | as well as a load balancer and that was for our | 16 | production environment. Let me make one slight | 17 | change. The database server already existed but | 18 | we purchased a significant amount of disc and | 19 | memory to upgrade that. We also chose to | 20 | purchase a test environment that consisted of one | 21 | database server, one web server, one app and file | 22 | server. | 23 | Q Why did you need to purchase new hardware | 24 | in order to implement the PeopleSoft HR software? | 25 | A That's what the software called for. |
00086 | 1 | Q So, the hardware you had previously would | 2 | not have been sufficient in order for you to run | 3 | the PeopleSoft - | 4 | A No. | 5 | Q -- software? | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22 | Q I guess prior to, prior to the time that | 23 | you went forward with the selection process and | 24 | undertook to evaluate different ERP vendors, did | 25 | you have to develop some sort of business case to |
00087 | 1 | justify simply the decision to purchase some new | 2 | HR -- | 3 | A Software? | 4 | Q -- software? | 5 | A A business case I think in the strictest | 6 | MBA sense was not required. Excuse me. We had, | 7 | we had the situation in the United States that | 8 | our vendor was no longer supporting our software | 9 | and the cost had been such and the limited | 10 | capability had been such that we knew we had to | 11 | do something different. | 12 | Q Did you consider trying to upgrade your | 13 | existing software? | 14 | A The vendor was no longer marketing, | 15 | developing or doing anything with that software. | 16 | There was not an upgrade path. | 17 | Q Could it have been upgraded using | 18 | independent consultants? | 19 | A In what way? | 20 | Q Could -- even though the company was not | 21 | continuing to support that software, could you | 22 | have hired anyone independently to perform | 23 | necessary upgrades on that software? | 24 | A I guess the answer would be yes, we could | 25 | have, but Kerr-McGee is not into developing |
00088 | 1 | software and that's what it would have been. | 2 | Q Did you ever do an analysis of how much | 3 | it would have cost to try to do that? | 4 | A No. It wasn't consistent with our | 5 | strategy. | 6 | Q And did you ever consider outsourcing the | 7 | HR functions that were involved? | 8 | A To my knowledge no BPO outsourcing | 9 | consideration was ever given to HR. Currently we | 10 | do have one piece of HR BPO'd. | 11 | Q What piece is that? | 12 | A Health and welfare administration. | 13 | Q And who does that? | 14 | A ADP. | 15 | Q And they handle the entire business | 16 | process of health and welfare administration? | 17 | A They do. We have two people on our staff | 18 | at Kerr-McGee that are in essence, I guess they | 19 | manage the vendor relationship and serve as a | 20 | third level escalation, if you will, if there are | 21 | questions that ADP cannot handle. | 22 | Q And how long have you used ADP for health | 23 | and welfare benefits? | 24 | A I believe a little over about 18 months | 25 | would be my estimate. Perhaps 19 or 20. |
00089 | 1 | Q Why was the decision made to outsource | 2 | that portion of the human resources function to | 3 | ADP? | 4 | A I was not a part of the selection in the | 5 | project or the decision making on that. | 6 | Q Who was in charge of that? | 7 | A Our HR group. | 8 | Q Would -- I'm sorry, I've forgotten her | 9 | name. Is it Lynda Garcia? | 10 | A I do not believe she was in HR at that | 11 | time. | 12 | Q Had she moved to finance? | 13 | A I don't know where she was at that exact | 14 | moment in time. | 15 | Q So, the decision to outsource health and | 16 | welfare benefits was made after your PeopleSoft | 17 | software had been implemented. Is that correct? | 18 | A Correct. We were -- yes. | 19 | Q And had you considered using a PeopleSoft | 20 | module for that function? | 21 | A Actually, yes. We have licensed benefits | 22 | administration. During the PeopleSoft | 23 | implementation we had a change in HR leadership | 24 | and in approach and the decision was made to stop | 25 | the benefits administration implementation. |
00091 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16 | Q Now, did you agree with the decision to | 17 | outsource health and welfare benefits to ADP? | 18 | A To be honest, I don't think I either | 19 | agreed or disagreed. If the HR strategy was to | 20 | perform all of our functions in-house, then the | 21 | purchase that we made and the implementation we | 22 | had embarked on was the correct path. But if our | 23 | strategy was to, for whatever reason, outsource | 24 | where appropriate, then at that time it was the | 25 | right thing to do to stop the benefits admin |
00096 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16 | Q Now, in evaluating or in, you know, | 17 | assessing the interface between the in-house | 18 | software and the ADP outsourcing process, who was | 19 | responsible for that? | 20 | A As I said, Gene Wolz. | 21 | Q Gene Wolz? | 22 | A It's not assessing, it was developing the | 23 | interfaces. | 24 | Q And did he successfully develop the | 25 | interfaces? |
00097 | 1 | A Oh yeah. | 2 | Q Was that a problem for him at all? | 3 | A Actually it wasn't -- it was not him | 4 | solely who did all the programming, but it was | 5 | our team that did. | 6 | Q Did you, did you feel any need to be | 7 | involved in the decision of whether to outsource | 8 | this health and welfare benefits function to ADP | 9 | versus using the PeopleSoft module that was | 10 | purchased for that purpose? | 11 | A No. | 12 | Q Why not? | 13 | A The reason I'm confused, I felt no need. | 14 | I'm not sure how to explain what doesn't exist. | 15 | Q Well, let me -- let me back up. I'm just | 16 | trying to understand because you were, you were | 17 | involved in the selection process whereby | 18 | Kerr-McGee chose PeopleSoft for its HR management | 19 | function. Correct? | 20 | A Right. | 21 | Q And you were responsible for leading the | 22 | team of IT professionals who were involved in | 23 | that process. Correct? | 24 | A Yeah. | 25 | Q And one of the modules that was purchased |
00098 | 1 | would have covered health and welfare benefits | 2 | functions? | 3 | A Right. | 4 | Q But after the PeopleSoft software was | 5 | implemented, a decision was made to have those | 6 | functions done through ADP outsourcing instead of | 7 | through the PeopleSoft module? | 8 | A Right. | 9 | Q But you didn't feel that you needed to | 10 | participate in that decision to shift those | 11 | functions to outsourcing? | 12 | A No. | 13 | Q Did you think the decision made sense? | | | 15 | THE WITNESS: I was not a -- | | | 17 | THE WITNESS: -- participant in the | 18 | process. | 19 | Q. (By Ms. McKinney) Did you agree with | 20 | the decision? | | | | | | | | | | |
00099 | | | 2 | THE WITNESS: I've already answered that | 3 | question previously. Would you like me to answer | 4 | it again? | 5 | Q. (By Ms. McKinney) Yes. | 6 | A As I said before, the HR strategy, if it | 7 | is to perform those functions in-house, then | 8 | buying and installing benefits admin was the | 9 | correct solution. If the strategy is to take a | 10 | look at different places in the organization, | 11 | different functions it could outsource, then the | 12 | function or the strategy of using outsourcers was | 13 | correct. | 14 | Q Do you agree with the strategy of | 15 | outsourcing where appropriate? | | | | | | | 19 | THE WITNESS: As I answered before, I | 20 | said that I neither agree nor disagree because | 21 | agreement is based upon the HR strategy, not | 22 | business processing as a separate entity. | | | | | | |
00100 | | | | | | | | | | | | | | | | | | | | | | | | | 13 | Q Do you have any opinion on whether health | 14 | and welfare benefits should be outsourced to ADP | 15 | or should be performed by PeopleSoft software? | 16 | A As I answered before, if the HR strategy | 17 | is that those functions should be performed | 18 | in-house, then I agree that benefit admin | 19 | implementation and purchase is correct. If the | 20 | strategy is such that we should look at | 21 | outsourcing specific functions, then I agree that | 22 | the strategy of looking at and outsourcing those | 23 | functions is good. | 24 | Q So it sounds like from an IT perspective | 25 | it doesn't make much of a difference to you which |
00101 | 1 | path is chosen. | 2 | MR. HAMMAKER: Objection. | 3 | THE WITNESS: Yes. | 4 | Q. (By Ms. McKinney) Either way will work? | 5 | MR. HAMMAKER: Objection. I don't think | 6 | that reflects his testimony. | 7 | THE WITNESS: In my experience at | 8 | Kerr-McGee, we did not complete the benefit admin | 9 | implementation, so I cannot speak to whether or | 10 | not it would work at Kerr-McGee because I have no | 11 | experience. ADP health and welfare does work | 12 | because we have been outsourcing with them for | 13 | over a year and a half. | | | | | | | | | | | | | | | | | | | | | | | | |
00102 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24 | Q I'm going to ask you if the RFI describes | 25 | some certain features, and so if you can remember |
00103 | 1 | please let me know. | 2 | A Okay. | 3 | Q Do you know if the RFI described the | 4 | ability to integrate modules into bundles or | 5 | suite, into a bundle or suite of associated HR | 6 | functions? | 7 | A I'm not sure I understand what you're | 8 | trying to ask. | 9 | Q Okay. Did the RFI specify that the | 10 | software that Kerr-McGee was going to use needed | 11 | to be able to work as a suite of associated | 12 | functions? | 13 | A I believe, I believe there were questions | 14 | along those lines, but our approach would be that | 15 | it would be purchased as a suite. We were not | 16 | considering purchasing part from Lawson, part | 17 | from Oracle, part from PeopleSoft. It was one | 18 | vendor to provide all those functions. | 19 | Q Did the RFI specify that the software | 20 | needed to support foreign language requirements? | 21 | A Yes. | 22 | Q And how about foreign reporting | 23 | requirements? | 24 | A Yes, I believe it did. I can't recall | 25 | the exact questions. |
00104 | 1 | Q Did it specify that the software needed | 2 | to be able to function across multiple | 3 | jurisdictions? | 4 | A What's your definition of jurisdiction? | 5 | Q Different states within the United States | 6 | and/or different countries? | 7 | A Yes, there were questions along those | 8 | lines. | 9 | Q Did the RFI specify that the software | 10 | needed to function across different business | 11 | divisions of Kerr-McGee? | 12 | A I would have to look. | 13 | Q Did it discuss at all scale and | 14 | flexibility to support thousands of multiple | 15 | users? | 16 | A I don't recall the specific questions | 17 | there. It's been a while. We did put either in | 18 | the RFI itself or in visiting with the vendors in | 19 | the demonstrations that Kerr-McGee was an | 20 | inquisitive company and that we had some number | 21 | of thousands of users and that we expected most, | 22 | if not all of our users, to be self service | 23 | users. So that would address the fact there | 24 | would be many people using it at one time. | 25 | Scalability was also discussed when receiving |
00105 | 1 | specifications from PeopleSoft for our hardware. | 2 | Q Did the RFI discuss any need for | 3 | flexibility so that the software could be matched | 4 | to your unique administrative requirements? | 5 | A In my interpretation, most of what we put | 6 | in the RFI did have to do with administration of | 7 | the HR function across multiple pieces of the HR | 8 | organization. | 9 | Q Did you have any requirement of an option | 10 | to purchase additional functional modules later? | 11 | A I cannot remember that being in the RFI. | 12 | Q Did you have any requirement of periodic | 13 | updates to keep tax and employment laws current? | 14 | A Yes. | 15 | Q And how about ongoing maintenance and | 16 | support? | 17 | A Yes. | 18 | Q And was 24 hour technical support | 19 | addressed in your RFI? | 20 | A I don't believe it was because we didn't | 21 | feel that that was required for us. Certainly if | 22 | something completely broke down we would need | 23 | help, but as a normal course of business we're | 24 | fairly self sufficient. | 25 | Q Did you have a requirement that the |
00106 | 1 | software have already been successfully | 2 | implemented by a comparable customer? | 3 | A I don't know if that was in the RFI, but | 4 | that was communicated to the vendors. | 5 | Q And who responded to the RFI? | 6 | A As stated before, PeopleSoft, Oracle and | 7 | Lawson. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00108 | | | | | | | | | | | | | | | 8 | Do you recall, do you recall if there was | 9 | any discernible difference in the evaluation of | 10 | Lawson's RFI response? | 11 | A Not specifics, only in the realm of | 12 | international or non U.S. capabilities. | 13 | Q And what was the -- what was the | 14 | distinction there in the evaluation of Lawson? | 15 | A They did not provide the non U.S. | 16 | capabilities that Oracle and PeopleSoft did. | 17 | Q And specifically what capabilities did | 18 | Lawson not provide? | 19 | A I just stated that I cannot remember what | 20 | those specifics were. | 21 | Q Do you remember any further detail on -- | 22 | A No. | 23 | Q -- the international issue with Lawson? | 24 | A None. | | |
00109 | | | | | | | | | | | | | | | | | | | | | | | | | 13 | Q And which vendors performed on site | 14 | demonstrations? | 15 | A As I stated before, PeopleSoft, Oracle | 16 | and Lawson. | | | | | | | | | | | | | | | | | | |
00112 | | | | | | | | | | | 6 | Q And then what happened after the | 7 | demonstrations? | 8 | A The presentations were graded by the team | 9 | and based on the grading and I guess I would say | 10 | verbal feedback from the team Lawson was | 11 | eliminated due to lack of non U.S. functionality | 12 | and reporting. | | | | | | | | | | | | | | | | | | | | | | | | | | |
00113 | | | | | | | | | | | | | | | | | | | | | 11 | Q Who made the ultimate decision to | 12 | eliminate Lawson? | 13 | A The team. | 14 | Q And who would have communicated that | 15 | decision to Lawson? | 16 | A I believe Lynda did. | 17 | Q In addition to the issue with | 18 | international functionality and reporting, was | 19 | there any other reason that Lawson was | 20 | eliminated? | 21 | A I cannot recall. | 22 | Q Do you know how Lynda communicated to | 23 | Lawson the fact that they had been eliminated? | 24 | A I do not know. | 25 | Q Do you know if she told them why they had |
00114 | 1 | been eliminated? | 2 | A I believe she did. | 3 | Q Do you know if they had some response to | 4 | her on the issue of their international | 5 | functionality? | 6 | A I do not know. | 7 | Q You never had any direct contact with | 8 | Lawson on that issue? | 9 | A On informing them that they were no | 10 | longer a part of the selection process, no. | 11 | Q Did you ever have any direct contact with | 12 | Lawson regarding the issue of their international | 13 | functionality? | 14 | A Other than when they made their on site | 15 | demonstration, no. | 16 | Q And did you personally evaluate whether | 17 | Lawson had the international functionality that | 18 | was needed to meet Kerr-McGee's requirements? | 19 | A Throughout most of this process Lynda and | 20 | I neither one voted, but we viewed the | 21 | demonstrations, asked questions. | 22 | Q But did you personally assess whether | 23 | Lawson had the functionality that was required? | 24 | A In what format? | 25 | Q Did you make a decision in your mind as |
00115 | 1 | to whether Lawson could meet your requirements? | 2 | A I agreed with the team that they could | 3 | not. | 4 | Q And in addition to viewing the | 5 | demonstration that Lawson did, was there any | 6 | other source of information on which you based | 7 | the decision to agree with the team that Lawson | 8 | couldn't meet the requirements? | 9 | A No. We had no further contact with them | 10 | until the decision was made. | 11 | Q Were any questions posed to Lawson about | 12 | whether it could make some accommodation to meet | 13 | Kerr-McGee's requirements in terms of | 14 | international functionality? | 15 | A Well, since it's been three years and 24 | 16 | hours worth of demos, I can't remember any | 17 | specific questions. | 18 | Q Did you ever talk to any Lawson | 19 | representative personally at any time? | 20 | A As I stated, during the demonstration. | | | | | | | | | | |
00116 | | | | | | | | | | | | | 7 | Q. (By Ms. McKinney) Now, you mentioned | 8 | that SAP was never sent an RFI. Did it bother | 9 | you at all that SAP was not sent an RFI? | | | | | | | | | | | | | 16 | A No. | 17 | Q And why not? | 18 | A Again, you're asking me to speculate on | 19 | that which does not exist or did not occur. We | 20 | had two companies that provided virtually all of | 21 | our RFE -- RFI requirements. | 22 | Q Oracle and PeopleSoft? | 23 | A Yes. Had we only had one, I don't know. | 24 | Q Did you feel like you were still going to | 25 | be able to get a good price with the two vendors |
00118 | | | | | | | | | | | | | | | | | | | | | | | | | | | 14 | Q Did you disclose to the vendors who | 15 | participated in the demonstration round the | 16 | identity of the other vendors they were competing | 17 | against? | 18 | A We disclosed to PeopleSoft and Oracle | 19 | that they were our finalists. I don't know about | 20 | the demonstrations. | | | | | | | | | | |
00119 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16 | Q Who was in charge of negotiations with | 17 | Oracle and PeopleSoft? | 18 | A Lynda Garcia was the point person as far | 19 | as the actual final price. | | | | | | | | | | | | |
00120 | | | | | | | | | | | | | | | 8 | Q Do you have any knowledge of whether | 9 | Lynda Garcia negotiated price with Oracle or | 10 | PeopleSoft? | 11 | A The answer has to be yes. | 12 | Q And did she? | 13 | A I mean -- | 14 | Q I'm sorry, I thought you were answering | 15 | whether you have knowledge. | 16 | A Oh, no. The answer would be yes. I | 17 | think that would be the only reason that we would | 18 | have lower offers. | 19 | Q So, did Oracle and PeopleSoft both | 20 | discount their prices? | 21 | A Yes. | 22 | Q And do you know by how much they | 23 | discounted their prices? | 24 | A I don't know what Oracle's discount would | 25 | have been. PeopleSoft would have been in the 45 |
00121 | 1 | percent range off list. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00122 | 1 | Q And after Oracle and PeopleSoft responded | 2 | to the RFQ, do you know if there were further | 3 | negotiations with them on price? | 4 | A Yes, there were. I don't remember the | 5 | exact numbers that came back originally, but they | 6 | were higher than what we ended up with. | 7 | Q So, both of them came down on price? | 8 | A Yes. | | | | | | | | | | | | | | | 16 | Q Do you have any knowledge of whether | 17 | steps were taken to try to ensure that Kerr-McGee | 18 | could get the best possible price on the | 19 | software? | 20 | A I don't know the specific steps, no. | 21 | Q No. That would have been within Lynda | 22 | Garcia's realm of responsibility? | 23 | A Yes. | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19 | Q And do you know what the reasons were for | 20 | ultimately choosing PeopleSoft over Oracle? | 21 | A I don't know the exact reasons why, you | 22 | know, one person chose PeopleSoft over another. | 23 | What we produced was the general themes in the | 24 | documents that we provided. One was Oracle at | 25 | the time did not have native German language |
00124 | 1 | functionality and that was our -- actually was | 2 | and still is our largest non U.S. location. If I | 3 | remember right, we rated the vendors, the matrix | 4 | included vendor viability, vendor service, | 5 | functionality, technology and cost. And the | 6 | functionality was pretty much a dead heat, the | 7 | vendor viability and vendor service were both in | 8 | favor of PeopleSoft and technology was in favor | 9 | of Oracle. Probably the best summary statement | 10 | other than the German functionality would be that | 11 | there were certain modules such as recruiting | 12 | that Oracle did not offer at the time and the -- | 13 | what people will euphemistically call the vision | 14 | thing, the team felt PeopleSoft was farther | 15 | advanced from a vision what HR could be, should | 16 | be standpoint than Oracle was at that time. | | | | | | | | | | | | | | | | | | |
00125 | | | | | 3 | Q And when did the implementation of the | 4 | PeopleSoft software begin? | 5 | A We had our kickoff meeting in early | 6 | January of 2002. We actually had some | 7 | preparatory work with our implementation partner | 8 | in December, but the official kickoff was | 9 | January. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00126 | | | | | | | | | 5 | Q Which modules have been implemented so | 6 | far? | 7 | A The core HR product has been implemented, | 8 | time and attendance has been implemented, as | 9 | stated before, the benefits administration | 10 | implementation was halted. Payroll for the | 11 | similar reason was also halted. Employee self | 12 | service view, employee service update, manager | 13 | self service, the data warehouse and the | 14 | workforce analytics cube. | 15 | Q And which modules remain to be | 16 | implemented? | 17 | A Manager self service transaction, | 18 | obviously benefits admin and payroll, E pay, E | 19 | comp, and the three data marks that live on top | 20 | of the data warehouse. And those would be | 21 | Workforce, Score Card -- when I said Workforce | 22 | Analytics before, I should say just the Workforce | 23 | cube because Workforce Analytics has not been | 24 | implemented, Score Card and Rewards have not been | 25 | implemented. |
00127 | | | | | | | 4 | Q Is Kerr-McGee in the process of | 5 | implementing them right now? | 6 | A No. We are in the process right now of | 7 | implementing an additional module that we | 8 | purchased, learning management. We are engaged | 9 | in other activities right now and the strategy | 10 | for going forward is being prepared by our HR | 11 | group. | 12 | Q What happened with payroll? | 13 | A What happened as far as? | 14 | Q Well, you said that the implementation | 15 | was halted. How is payroll being handled | 16 | currently? | 17 | A Okay. First question, the halting of the | 18 | implementation of payroll was done for the same | 19 | reasons as benefit admin, wanted to look at | 20 | outsourcing the payroll, leaving the payroll | 21 | production outsourced and possibly outsourcing | 22 | the payroll function was to be reviewed. | 23 | Q And -- | 24 | A The indecision is that we are in the same | 25 | situation as before we started that with ADP |
00128 | 1 | being our payroll check producer, tax filer. | 2 | Q And has a conclusion been reached | 3 | regarding whether Kerr-McGee will outsource the | 4 | payroll business function? | 5 | A The decision was reached, I'm not sure | 6 | with even a specific project at that time, but | 7 | currently business process of payroll is not | 8 | outsourced. | 9 | Q But the PeopleSoft payroll module has not | 10 | been implemented? | 11 | A That is correct. | 12 | Q So what software is being used for the | 13 | payroll function currently? | 14 | A As I stated before, ADP produces our | 15 | checks, files our taxes and there is a piece of | 16 | software that lives at our site to enable that to | 17 | happen. | 18 | Q And that's a piece of ADP software? | 19 | A Yes. | 20 | Q Is there a name for it? | 21 | A Pay-For-Win. And I'm not sure how to | 22 | spell that. | 23 | Q Is there any other software that's used | 24 | for any part of the payroll function? | 25 | A No. |
00129 | 1 | Q So the -- | 2 | A Well, I mean time and labor feeds | 3 | payroll, but for actually doing payroll, no. | 4 | Q So, the Pay-For-Win software that's at | 5 | Kerr-McGee in combination with the outsourced | 6 | check processing function is sufficient to cover | 7 | the entire payroll business process? | 8 | A In the U.S. | 9 | Q Is there a different software that's used | 10 | for payroll overseas? | 11 | A Each country has its own payroll | 12 | provider. We chose not to implement global | 13 | payroll processing due to really the number of | 14 | employees we have in different countries. | 15 | Q And why did the number of employees cause | 16 | you not to implement the payroll module? | 17 | A We did not feel it would be cost | 18 | justified to do so. | | | | | | | | | | | | | | |
00130 | | | | | | | | | 5 | Q Is there currently any future plan to | 6 | change the way that Kerr-McGee processes payroll? | 7 | A Where? | 8 | Q Let's say first in the United States. Is | 9 | there any future plan to change the payroll | 10 | system? | 11 | A No plans at this time. | 12 | Q And how about overseas, is there any plan | 13 | to change the way that Kerr-McGee uses a | 14 | different payroll provider in each country? | 15 | A No. | 16 | Q And you said earlier that the time | 17 | keeping function feeds into payroll? | 18 | A Yes. | 19 | Q Does that mean that the PeopleSoft time | 20 | keeping software has to interface with the ADP | 21 | payroll software? | 22 | A Yes. | 23 | Q And did you have to go through some | 24 | process to make sure that those softwares could | 25 | interface together? |
00131 | 1 | A We prepared the interface. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00132 | | | | | | | | | | | | | | | | | | | | | | | | | | | 14 | Q Was he able to develop an effective | 15 | interface? | 16 | A Oh yeah. | 17 | Q Have there been any problems with that | 18 | interface? | 19 | A Not any more than, you know, any other | 20 | piece of software, an occasional bug. But no, we | 21 | have not had a single instance of missed payroll | 22 | or wholesale failure. | | | | | | |
00133 | | | | | | | | | | | | | | | | | 9 | Q In the countries where it has been | 10 | implemented, is it functioning in the foreign | 11 | languages used in those countries? | 12 | A We use English outside of Germany and | 13 | Netherlands. We don't -- we have such a low | 14 | concentration of employees in other non English | 15 | speaking countries that it was not worthwhile to | 16 | consider doing self service there in another | 17 | language. | 18 | Q So, the only foreign languages you need | 19 | it to operate in are German and Dutch? | 20 | A Currently. | 21 | Q Currently? Do you anticipate using it in | 22 | other foreign languages in the future? | 23 | A I haven't been made privy to any | 24 | acquisition plans yet. | 25 | Q And then how about the manager self |
00134 | 1 | service module, is that the same situation with | 2 | regard to languages? | 3 | A Yes, waiting on approval. | 4 | Q So at the present time the PeopleSoft | 5 | software is not being used in any foreign | 6 | languages? | 7 | A That's not what you asked earlier. | 8 | Q That's what I'm asking now. | 9 | A That's incorrect. The HR software is | 10 | being used in German and Netherlands. | | | | | | | | | | | | | | | | | | | | | | | 22 | Q HR core functionality is being used in | 23 | German and Dutch? | 24 | A Yes. | | |
00136 | | | | | | | | | | | | | | | | | | | 10 | Q Was the implementation completed on | 11 | schedule? | 12 | A As I stated before, benefit admin and | 13 | payroll, no, because we just close to discontinue | 14 | that. The HR was actually implemented ahead of | 15 | schedule and then we brought out, we brought up | 16 | some non U.S. locations prior to the U.S. | | | | | | | | | | | | | | | | | | |
00137 | | | | | | | | | | | | | 7 | Q And when you say you requested additional | 8 | money, did that mean you had to exceed your | 9 | budget for implementation? | 10 | A Yes. | 11 | Q And by how much? | 12 | A One point nine million. | 13 | Q What was the original budget? | 14 | A Just shy of 7 million. | 15 | Q And then you had to add another 1.9 | 16 | million on top of it? | 17 | A Yes. | 18 | Q And do you know why the implementation | 19 | exceeded the original budget you had planned? | 20 | A My -- yeah. We had a large number of | 21 | reporting requirements that were what I would | 22 | call nonstandard. And as an organization we were | 23 | not willing to do without some of them or do the | 24 | analysis that it would take to eliminate a number | 25 | of them. And so we spent a large quantity of |
00138 | 1 | money on developing reports. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21 | Q And what customization was required? | 22 | A I don't have the complete list of | 23 | customizations that we've done. | 24 | Q Do you know how many customizations you | 25 | had to do? |
00139 | 1 | A Approximately -- well, this is over the | 2 | life of our implementation. I don't know, you | 3 | know, depending on what point. But as we sit | 4 | here today approximately fifty affecting twenty | 5 | different objects. | 6 | Q And what do you mean by object in that | 7 | context? | 8 | A An object would be a screen, a page, a | 9 | program, some definable piece from a programming | 10 | standpoint. | 11 | Q Did you know when you made the selection | 12 | of PeopleSoft that you would need to do that much | 13 | customization in order to implement the software? | 14 | A Actually, I don't know. No. | 15 | Q Was that customization customization that | 16 | you did out of necessity or was it because | 17 | Kerr-McGee made a choice to customize? | 18 | A For us it's always a choice. Our first | 19 | choice is not to. And evidently from other | 20 | implementations, this was a fairly low number, | 21 | fairly noninvasive. | 22 | Q And what would cause Kerr-McGee to make a | 23 | choice to customize some object? | 24 | A Fair question. For us it's really, it's | 25 | really a binary question. If there's something |
00140 | 1 | in the software that doesn't meet what we need, | 2 | then it's a choice, do we change our business | 3 | process, whatever that may be, to match the | 4 | software or do we not. And if we make a decision | 5 | that the time invested in the customization is | 6 | worthwhile in our estimation, we'll go ahead and | 7 | do it. Our preference would be to change the | 8 | business process first though. | 9 | Q So the initial impetus is that the | 10 | software won't be able to meet some need of some | 11 | existing business process? | 12 | A Yes. | 13 | Q Is that right? | 14 | A Uh-huh. | | | | | | | | | | | | | | | | | | | | | | |
00142 | | | | | | | | | | | | | | | | | 9 | Q Are you currently satisfied with the | 10 | PeopleSoft modules that have already been | 11 | implemented? | 12 | A Actually, yes. | | | | | | | | | | | | | | | | | | | | | | | | | | |
00144 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23 | Q. (By Ms. McKinney) Do you view SAP as a | 24 | competitor to Oracle and PeopleSoft? | 25 | A Yes, I do. |
00145 | | | | | | | | | | | | | | | | | | | | | 11 | Q Do you have any plans to go through any | 12 | procurement of HR software any time in the near | 13 | future? | 14 | A None whatsoever. | | | | | 17 | Q Have you engaged in any evaluation of HR | 18 | software since the time of your PeopleSoft | 19 | selection? | 20 | A No. | 21 | Q So that's been put aside for now I take | 22 | it? | 23 | A PeopleSoft is our system strategy. | | | | |
00150 | | | | | | | | | | | | | | | | | | | | | 11 | Q What were your views of what the effect | 12 | of the merger would be on you? | 13 | A I guess the two immediate effects would | 14 | be, in our opinion, reduced competition, which | 15 | would lead to reduced price and innovation | 16 | pressure and the second piece would be some | 17 | economic hardship should Oracle's plan be | 18 | executed as I understand it, which would be to | 19 | halt the marketing of PeopleSoft software. | | | | | | | | | | | | |
00154 | | | | | | | | | | | | | | | | | 9 | MS. McKINNEY: Let me mark the next | 10 | exhibit. I guess this is 1932? | | | | | | | | | | | | | | | 18 | Q And what is this document? | 19 | A My declaration given with regards to the | 20 | Oracle proposed acquisition -- | | | 22 | THE WITNESS: -- of PeopleSoft. | | | | | | |
00155 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23 | Q Now, who drafted this declaration? | 24 | A The declaration was initially drafted by | 25 | Kent Brown. |
00156 | 1 | Q And was there some -- | 2 | A It was earlier. | 3 | Q -- earlier draft of this document that he | 4 | provided to you? | 5 | A Yes. | 6 | Q And do you still have a copy of that | 7 | draft? | 8 | A I believe we returned it to Kent. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00157 | | | | | | | 4 | Okay. So, during that, that in person | 5 | meeting with Mr. Brown, do you recall making any | 6 | changes to the draft of the declaration that you | 7 | were reviewing with him? | 8 | A Yes. | 9 | Q And do you recall what those changes | 10 | were? | 11 | A Not in detail. | 12 | Q Do you recall the subject matter of any | 13 | of those changes? | 14 | A From a tenor perspective, the document as | 15 | it exists and as I signed was changed to reflect | 16 | an opinion rather than facts on what would happen | 17 | should the acquisition come through. Just my | 18 | crystal ball doesn't work any better than anyone | 19 | else's. | 20 | Q So, you were changing it to reflect the | 21 | thoughts on the merger were your opinions? | 22 | A The thoughts on the merger would be | 23 | things that could possibly happen rather than | 24 | things that absolutely would happen. | | |
00163 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16 | Q With regard to your declaration, is there | 17 | anything in it now that you're not comfortable | 18 | with? | 19 | A I read it over last night and no. | 20 | Q Is there anything when you read through | 21 | it, was there anything you saw that you thought | 22 | needed clarification? | 23 | A I'm probably, I'm probably -- it's like a | 24 | programmer trying to judge whether their own | 25 | program is good. I know what I said. No. |
00165 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23 | Q Do you have an opinion of the company | 24 | Oracle Corporation? | 25 | A Yes. |
00166 | 1 | Q What's your opinion? | 2 | A Overall my opinion is good. We use them | 3 | worldwide for financials. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00167 | | | | | | | | | | | | | | | | | | | | | | | | | | | 14 | Q Could you please take a look at Page 5 of | 15 | that Power Point Bates labeled Kerr-McGee 137? | 16 | A Yes. | 17 | Q Under the right hand column it says | 18 | Oracle cons. | 19 | A Uh-huh. | 20 | Q And then there's a box that says vendor | 21 | service and lists several items. | 22 | A Yes. | 23 | Q Were you aware of any of these issues | 24 | that are listed here in this box? | 25 | A Yes, at the time we made the selection |
00168 | 1 | these items had come out. | 2 | Q And the first one says recent bad press | 3 | regarding customer service. Do you know what | 4 | that's referring to? | 5 | A I believe -- well, I don't know for sure. | 6 | Q What do you think it was? | | | | | | | 10 | THE WITNESS: The only thing I can say | 11 | with confidence is that it regards the service of | 12 | existing customers and their software | 13 | implementations. | | | | | | | | | | | | | | | | | | | | | | | | |
00170 | 1 | Q Was Kerr-McGee part of an Oracle user | 2 | group at that point in time? | 3 | A Yes. | 4 | Q And had Kerr-McGee experienced Oracle | 5 | separating itself from Kerr-McGee's user group? | 6 | A I believe we participated with, I don't | 7 | know what the name was, OAUG at that time, yes. | 8 | Q What is OAUG? | 9 | A I don't know what -- I assume it's Oracle | 10 | and I assume it's user group, but I don't know | 11 | what the A stands for. | 12 | Q So Kerr-McGee was apart of that user | 13 | group? | 14 | A Yes. | 15 | Q And Oracle separated itself from that | 16 | user group? | | | | | | | 20 | Q How did Kerr-McGee react when that | 21 | happened? | 22 | A I don't recall having any specific | 23 | conversations with what we should or should not | 24 | do as a result of that. | | |
00172 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24 | Q You mentioned earlier that when you | 25 | talked to the Justice Department about your |
00173 | 1 | opinion of the effects of the merger, the two | 2 | items you mentioned were reduced competition and | 3 | economic hardship based on Kerr-McGee's | 4 | investment in PeopleSoft? | 5 | A Yeah. | | | | | | | 9 | Q. (By Ms. McKinney) With regard to the | 10 | first item relating to competition, what is your | 11 | view on the potential impact of the merger on | 12 | competition? | 13 | A Our view, as I state in my declaration, | 14 | would be that should the merger be consummated | 15 | that it would reduce the competition in the ERP | 16 | HR space, particularly those companies we feel | 17 | could possibly supply Kerr-McGee with that type | 18 | of software. | 19 | Q And what's the basis for your viewpoint? | 20 | A Our selection process identified really | 21 | only four people that could possibly in our view | 22 | supply the HR software that we needed, one of | 23 | which we did not have detailed knowledge about, | 24 | one of which we eliminated due to functionality | 25 | at that time, and so the largest possible pool in |
00174 | 1 | our view at the moment would be three. Should | 2 | one of those be eliminated we would view three to | 3 | two as a fairly substantial decrease in the | 4 | competitive environment. | 5 | Q Your selection process was in 2001. | 6 | Correct? | 7 | A That is correct. | 8 | Q And you testified that you haven't | 9 | engaged in any additional analysis of software | 10 | vendors since that time. Correct? | 11 | A That is correct. | 12 | Q And how -- do you think that the reduced | 13 | competition you anticipate would affect | 14 | Kerr-McGee? | 15 | A Yes. | 16 | Q And how do you think that that would | 17 | affect Kerr-McGee? | 18 | A I suppose there could be a lot of answers | 19 | there, but our standpoint is that innovation | 20 | within the software itself could be negatively | 21 | affected. The development of new modules and new | 22 | functionality could be negatively affected. The | 23 | overall customer service environment could be | 24 | affected. That would be my top three. | 25 | Q All three of those items relate to |
00175 | 1 | Kerr-McGee's use of PeopleSoft software. | 2 | Correct? | 3 | A Those three relate to not just our use of | 4 | PeopleSoft in particular but future development | 5 | in the HR space. | | | | | | | | | 10 | Q The merger is not going to affect | 11 | Kerr-McGee with regard to any future -- it's not | 12 | going to affect Kerr-McGee with regard to any | 13 | impending software procurements, is it? | 14 | A Hate to be obtuse. Please define what | 15 | impending is in your mind. | 16 | Q Well, you testified earlier that you have | 17 | no plans right now to look at procurement of new | 18 | HR software. Correct? | 19 | A My understanding of your question is that | 20 | a new HR software package or vendor. In that | 21 | case that is correct. If you refer to purchasing | 22 | perhaps additional modules, we have no plans at | 23 | the moment but could very well see purchasing | 24 | additional modules from existing vendors. | 25 | (A brief pause.) |
00176 | 1 | Q Mr. Elliott, could you please take a look | 2 | at your declaration? And on Page 12, if you | 3 | could look at Paragraph 42. And in this | 4 | paragraph you state in the second sentence, a | 5 | merger could reduce the competitive pressure that | 6 | now causes both firms to continue to improve | 7 | their software. | 8 | A Yes. | 9 | Q What's your basis for this statement? | 10 | A My opinion is that should this | 11 | competition not exist, there would not be the | 12 | same level of pursuit of innovation and | 13 | improvement in software, as a general statement | 14 | about HR software. | 15 | Q And do you have any other basis for this | 16 | statement aside from your own opinion? | 17 | A I do not have familiarity with Oracle's | 18 | current or future development plans for their HR | 19 | software. What I have seen is a large push on | 20 | the PeopleSoft side for both new functionality, | 21 | new modules and improved ownership experience. | 22 | Q And you anticipate that a merger would | 23 | negatively impact that development? | 24 | A That's my opinion. | 25 | Q Are you aware of Oracle's public |
00177 | 1 | commitment to continue supporting PeopleSoft | 2 | software even if a merger takes place? | 3 | A Yeah. I did not look up the details, but | 4 | what I believe I'm familiar with is their | 5 | commitment to maintain support for ten years | 6 | should the merger occur. | 7 | Q And does that affect your view at all? | 8 | A No, not at all. | 9 | Q And why not? | 10 | A Supporting problems that crop up with | 11 | existing software is far different than | 12 | innovation and development and adding features | 13 | and new modules to software. | 14 | Q In the next sentence in that paragraph | 15 | you state, PeopleSoft and Oracle now compete for | 16 | the same customers and this competition drives | 17 | both vendors to make significant investments and | 18 | better products. | 19 | A Uh-huh. | 20 | Q Now, what's your basis for this | 21 | statement? | 22 | A I could not find a document that would | 23 | support this, but during the selection process | 24 | both PeopleSoft and Oracle made what I would say | 25 | an emphasis or a big deal of the amount of money |
00178 | 1 | that they both invest in R and D. | 2 | Q And for the part of the statement that | 3 | says PeopleSoft and Oracle compete for the same | 4 | customers, do you have any particular basis for | 5 | that statement? | 6 | A Both the PeopleSoft sales rep and the | 7 | Oracle sales rep both during the course of | 8 | conversation indicated that each company was a | 9 | frequent competitor of the other. | 10 | Q Now, down in Paragraph 43 in the second | 11 | sentence you state, in my experience -- | 12 | A Uh-huh. | 13 | Q Excuse me. Software vendors that | 14 | discontinue marketing a product typically reduce | 15 | or eliminate new development initiatives for that | 16 | product and focus their resources on developing | 17 | the product that continues to be marketed and on | 18 | switching customers of the discontinued product | 19 | to another product. | 20 | A Yes. | 21 | Q Now, what experience are you referencing | 22 | here? | 23 | A I have two recent ones. Our experience | 24 | with N Power from Integral. The same thing | 25 | happened. They stopped marketing N Power as a |
00179 | 1 | viable product and then therefore soon after | 2 | stopped development and then therefore soon after | 3 | stopped support. We have a legal software | 4 | product called E-Tech that we've experienced the | 5 | same situation. It's no longer marketed, now | 6 | there's no more development going on. I'm not | 7 | sure if the support shoe has dropped yet or not. | 8 | Q So that contributes to your opinion that | 9 | if Oracle were to acquire PeopleSoft the same | 10 | thing might happen? | 11 | A Yes. | | | | | | | | | | | 17 | Q How much do you think Kerr-McGee has | 18 | invested in its PeopleSoft HR software all in | 19 | total? | 20 | A The out of pocket costs are the 9 million | 21 | as stated in the documents that have been | 22 | provided. | 23 | Q And are there additional costs as well? | 24 | A Not that we've quantified. We don't -- | 25 | at least it hasn't been a practice in the past |
00180 | 1 | where we have capitalized or tracked the amount | 2 | of internal labor. It's safe to say that it | 3 | would be tens of thousands of hours. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
00181 | | | | | | | | | | | | | | | 8 | Q If you knew that SAP was a vendor that | 9 | would be able to meet Kerr-McGee's needs in terms | 10 | of ERP software, would you still have concerns | 11 | about the Oracle, PeopleSoft merger's effect, | 12 | potential effect on competition? | | | | | 15 | THE WITNESS: Yes, I would still have | 16 | concerns. | 17 | Q. (By Ms. McKinney) And why is that? | 18 | A Because I view three moving to two as a | 19 | significant decrease in competition. | | | | | | | | | | | | |
00182 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16 | Q Mr. Elliott, you've referred in your | 17 | testimony this afternoon to a declaration that | 18 | you provided to the United States Department of | 19 | Justice in this matter. Does what we have marked | 20 | as Government Exhibit 63 appear to you to be a | 21 | complete copy of the -- with exhibits of the | 22 | declaration that you provided to the Department | 23 | of Justice? | 24 | A It does appear. | | |
00183 | | | | | | | | | 5 | Q Do you see, is that your signature at the | 6 | bottom of Page 13? | 7 | A Yes, it is. | | | | | | | | | | | | | | | | | | | 17 | Q Thank you. | 18 | To the best of your information and | 19 | belief, Mr. Elliott, is the declaration which has | 20 | been marked as Government Exhibit 63 true and | 21 | accurate? | 22 | A I'm sorry, say it again, Mike. | 23 | Q Is the -- | 24 | MR. HAMMAKER: Could you read the | 25 | question back, please? |
00184 | 1 | (The record was read as requested.) | 2 | THE WITNESS: Oh, yes. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elliot 05-20-04 |