P4080-R: Nextel - Financial, HR, SCM, Tax Systems Overhaul: Software Selection Update, Steering Committee

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Government Exhibit P4080-R

Financial, HR, SCM, Tax Systems Overhaul
Software Selection Update


Image of cellular phones and Nextel's logo

Steering Committee - December 9, 2002

Nextel's logoProprietary and Confidential

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Agenda


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Approach

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Software Selection Strategy


  • Met with Executives and Oversight Committee on 8/26 & 9/26 to identify project vision, general approach (can't go wrong with either vendor) and high level scope
  • Met with Systems Integrators to Estimate Integration Complexity: 10/11 - 10/25 and 11/13 - 11/20
  • Met with Nextel IT to Estimate Integration Complexity: 8/26 - Present
  • Oversight Committee - Drive decision process and propose solution based on 5 options: 10/1/02 - 12/6/02

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Software Selection Options


Graph chart of software options for hr, accounting/finance/tax, and scm[D]

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Software Evaluation Methodology


  • FSO Oversight Committee implemented a 3 Pronged Approach to Evaluate Software Vendors
    1. Solicit Vendor Responses to RFQ

      » Compiled and Mailed RFQ: 11/6

      » Received RFQ Responses: 11/15

      » Evaluated RFQ Responses: 11/15 - 12/3

      Perform Executive Reviews and Reference Checks

      » Executive Reviews

    • PeopleSoft: 11/21
    • Oracle: 11/19

    » Reference Checks

    • American Tower Corporation (Oracle): 12/2
    • Duke Power (PeopleSoft): 12/2
    • Sprint (PeopleSoft): 12/5

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Software Evaluation Methodology


  • FSOOversight Committee implemented a 3 Pronged Approach to Evaluate Software Vendors
    1. Perform two Rounds of Software Demonstrations

      » 1st Round

      • PeopleSoft: 10/16-10/17
      • Oracle: 10/22-10/23

      » 2nd Round

      • PeopleSoft: 11/15
      • Oracle: 11/14

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Three primary methods were used to evaluate each of the vendors


Image depicting methods of evaluating vendors[D]

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Determining Weighted Vendor Criteria


  • Oversight Committee developed a list of Vendor Selection Criteria
  • Oversight Committee Agreed on Selection Criteria and Grouped Criteria into 3 Tiers
  • Oversight Committee Assigned Weighting to Each Tier Depending on its Importance to the Business Decision

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Weighted Vendor Criteria


Image depicting methods of evaluating vendors[D]

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Summary Results

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FSO Oversight Committee Recommendation


  • The FSO Oversight Committee recommends that Nextel implement an all PeopleSoft Solution for its HR, Accounting & Finance, Tax, and Supply Chain Enterprise Systems

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Overall Summary


All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 1 represents the highest priority attributes receiving scores from 0-3 points, tier 2 attributes ranged from 0-2 points and tier 3, the lowest priority attributes, ranged from 0-1 points.

Line graph measuring all Tier items by Poor, Average, and Excellent[D]

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Tier 1 Criteria


All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 1 represents the highest priority attributes receiving scores from 0-3 points.

Line graph measuring Tier 1 items by Poor, Average, and Excellent[D]

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Tier 2 Criteria


All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 2 represents medium priority attributes receiving scores from 0-2 points.

Line graph measuring Tier 2 items by Poor, Average, and Excellent[D]

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Tier 3 Criteria


All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 3 represents low priority attributes receiving scores from 0-1 point.

Line graph measuring Tier 3 items by Poor, Average, and Excellent[D]

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Detailed Results

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Software Selection Options


Image depicting software selection options[D]

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Option 1 - All PeopleSoft (Summary)


  • Modules/Gaps
    • Accounting & Finance
      • For all items in Phase I & II, everything was accepted, except some areas of Reporting (Cognos) - FSO will use Hyperian and Business Objects to solve gap
      • and Property Management (rent db) - FSO will either develop a custom solution for Rent DB or procure a small package
    • Human Resources/Payroll
      • For all items in Phase I & II, everything was accepted, except Commissions - FSO will continue to use Oracle Solar interfacing through current NDW architecture - also includes NIST EN 0005
    • Supply Chain Management
      • For all items in Phase I & II, everything was accepted, except Contract tracking, - Open FSO item - NIST EN 0285, NS 0193 and OTH 0284
    • Tax
      • For all items in Phase I & II, everything was accepted, except Lease Co - Open FSO NIST NS 0241
  • Cost
    • Total Cost of Ownership (assume 5 years): $ REDACTED
  • IT Issues
    • Integrating PeopleSoft Finance and Supply Chain to Atlas is more complex and expensive (REDACTED) than Oracle integrating to Atlas
    • Hardware, software, implementation, and support costs are lower (REDACTED) than a hybrid system approach
  • Functional Evaluation (Results out of 10)
    • Finance & Accounting:
    7.23
    • Human Resources:
    7.41
    • Supply Chain:
    8.14
    • TOTAL AVERAGE:
    7.59

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Option 1 - All PeopleSoft (Products to be Implemented)


Human Resources & Payroll
PeopleSoft ProductFunction
Benefits AdministrationBenefits
CommissionsCommissions
Directory InterfaceProfile Maintenance
eBenefitsBenefits
eCompensationCompensation
eCompensation Manager DesktopCompensation
eDevelopmentEmployee Development
eEquityStock Option/Stock Purchase Administration
Enterprise Incentive ManagementIncentive Administration
Enterprise Learning SolutionsLearning Management
Enterprise PortalApplication Gateway
Enterprise WarehouseReporting and Analysis
ePayEmployee Payroll Self-Service
ePerformancePerformance Management
eProfileEmployee Profile Self-Service
eProfile Management DesktopMaintenance of Employee Profiles
eRecruitRecruiting
eRecruit Management DesktopRecruiting
Global PayrollPayroll
Help Desk HRWorkforce Support Center
HRMS Portal PackHR Gateway
HRMS WarehouseReporting and Data Repository
Human ResourcesRecruiting Compensation Workforce Development
Mobile Time ManagementTime and Labor
Payroll InterfaceEmployee Data Transfer
Payroll for North AmericaPayroll
Global
PeopleSoft ProductFunction
App ConnectApplication Integration
Enterprise PortalApplication Gateway
Enterprise WarehouseEnterprise Data Warehouse
Integration BrokerApplication Integration
 
Supply Chain Management
PeopleSoft ProductFunction
Catalog ManagementItem Master Management
Demand PlanningDistribution Requirement and Forecasting
Enterprise PlanningPlanning & Scheduling
eProcurementeProcurement (Ariba Replacement)
eStoreEmployee ? Fulfillment
InventoryInventory Management
Inventory Planning? Master Management & Receiving
PurchasingProcurement
Services ProcurementLegal and Services Contract Management
Strategic SourcingRFP Auctioning
Supply Chain WarehouseAnalysis & Reporting
Supply Rating SystemVendor Evaluation/Supplier Analysis
Accounting, Finance & Tax
PeopleSoft ProductFunction
Activity Based ManagementCost Accounting
Analytical ForecastForecasting
Asset ManagementFixed Asset and Property Management
Balanced Score CardPerformance Management
??
BudgetingBudgeting
Business PlanningFinancial Planning and Forecasting
Cash ManagementTreasury
Deal ManagementTreasury
ExpensesExpense Reimbursement Submission & Reporting
Financials WarehouseReporting and Analysis
General Ledger?
Global Consolidations?
PayablesAP and ? for Payment
ProjectsProject Accounting
ReceivablesAR Function ? Ensemble

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Option 1 - All PeopleSoft (Cost)


License Cost Support & Maintenance Training Total Cost of Ownership
$ REDACTED $ REDACTED $ REDACTED $ REDACTED

Assumptions:

  • Numbers are based on prices provided by RFQ
  • Training costs are not comprehensive.
  • Support and Maintenance numbers are based on 5 year contract

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Option 1 - All PeopleSoft (IT)


Integration Risks
  • PeopleSoft / Atlas integration will cost approximately $ REDACTED more than Oracle / Atlas integration.
Delivery Risks
  • Relative to other options, none.
Technical Considerations
  • Lower software and hardware costs than hybrid options (3,4, and 5).
  • Approximately REDACTED % lower implementation and on-going support costs than hybrid options.
  • Higher IT training costs to get team up to speed.

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Option 1 - All PeopleSoft (Func. Eval.)


Attendees rated each application on how well it met the business-defined functional requirements during the demonstration sessions. These requirements were graded on a scale of 0-10 (0=Does Not Meet, 10=Exceeds.)

Unreadable line chart for rating PeopleSoft functional evaluation

 Finance & AccountingHuman ResourcesSupply Chain ManagementTotal
Attendees:20222870

Attendees included members of the Oversight Committee and designated primary and secondary SMEs.

  Functionality Demonstrated
Human Resources
Compensation (including MBSO)
Benefits
Surveys & Traning
Recruiting
Payroll
Commissions for In-Directs
Supply Chain Management
Script covering Request to Check
Accounts Payable (including VAD)
Time & Expense Reporting
Item Master Management
Forecasting
Distribution Management
Inventory Management
Reporting
Fixed Assets
Business Objects Capability
Accounting & Finance
Tax-LeaseCo
Consolidations
Budgeting/Forecasting
Revenue Management/Reporting
Property Mangement
General Ledger
Treasury

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Option 1 - All PeopleSoft (Func. Eval.)


Bar graph depicting point (0.00-10.0) evaluation of functions[D]

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Updated August 14, 2015

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