ITA2323_Final_SHOWREADY_28April2015

welcome.

HP (Case Study): A Global Implementation of NetSuite

SuiteWorld

Paul Kirch, Principal, NetSuite

Bruce Cavers, Sr. Director, NetSuite

Nigel Blair-Johns, Sr. Program Manager, Hewlett-Packard

Cautionary Note: Forward Looking Statements

This presentation contains “forward-looking” statements that involve risks and uncertainties and

assumptions. These statements are based on information available to NetSuite management at the time of

this presentation.

Actual results could differ materially from our current expectations as a result of many factors, including, but

not limited to, risks associated with quarterly fluctuations in our business and results of operations; current

macro-economic conditions and the possibility they could deteriorate; changes in business plans of our

SuiteCloud partners and other strategic partners; and the effects of competition. These and other risks and

uncertainties associated with our business are described in our most recently filed annual report on Form 10-

K for the year ending 12/31/14 and any subsequently filed reports on Form 10-K, 10-Q or 8-K. These filings

are available on the SEC’s website at www.sec.gov and on NetSuite’s website at www.netsuite.com.

We assume no obligation and do not intend to update any forward looking statements. Customers who

purchase our services should make sure the decisions are based on features that are currently available.

Please be advised that any unreleased services or features from NetSuite that are not currently available

may not be delivered on time, or at all.

© NetSuite Inc. 20153

http://www.sec.gov/

http://www.netsuite.com/

Cautionary Note


Hewlett Packard will be talking about its own products and/or services, which it makes available directly to customers. The statements and opinions contained herein are those of HP Software and not of NetSuite. NetSuite has not verified any statements or claims herein and assumes no responsibility for such statements or claims.

Paul KirchPrincipal, Software,

Netsuite

Bruce CaversSenior Director,

Enterprise, NetSuite

Nigel Blair-JohnsSenior Program

Manager, HP Software

Presenters

Company Logo Company Logo Company Logo


Press Release


“NetSuite has delivered an enterprise-class solution that’s enabling us to streamline complex revenue and billing processes and gain new insights into business performance,” said Paul Chapman, Chief Information Officer, HP Software.

“The two-tier ERP implementation with NetSuite OneWorld is robust and elegant and provides us with new agility, flexibility and scalability in our management of the Software business.”

Agenda

1. Background

2. Project Scope and Methodology

3. Project Organization and Timeline

4. Solution Design

5. Results


Project Background

Hewlett-Packard


“The HP garage is known as the birthplace of Silicon Valley.”

367 Addison Avenue, Palo Alto, California

• Iconic Company: HP is one of Silicon Valley’s most iconic companies.- HP was established in a garage in Palo Alto, California in 1939.

• Cloud Software: Over the last 5-10 years, cloud software has emerged as a viable alternative to traditional on premise software solutions.

- HP has established several cloud based application offerings for its customers

- New selling models challenge legacy back office order management systems

• Innovation: HP is undergoing dramatic change and reorganization.- HP Software needed to internally integrate the acquired Autonomy business, and planned to

leverage a new internally developed SAP platform. That option became unavailable.

- Needing future flexibility and legacy HP systems not being an option, decision to deploy NetSuite for legacy Autonomy business

- Key drivers were time to result and ability to give the business tight scope and cost control

- A pilot exercise in a new way of doing business

Introduction


Project Scope and Methodology

Scope of Project

The view to the top on September 15, 2014.


Scope of Project

• Revenue: Approximately $1 billion revenue in 5 discrete business units. Purpose of project was to consolidate back end business support systems onto one platform.

• Geographical Scope: Over 159 licensed users in 8 countries: Canada, France, India, Mexico, Poland, Switzerland, United Kingdom, and United States.

• Item Master: Over 10,000 SKUs representing HP Software products.

• Customizations: Customizations included the UBB script for Minimum Monthly Usage (MMU/MMC), discounting, Business Area, Profit Center and Global Currency customizations, intercompany transactions and draft sales order (quote) from a contract.

• Process Challenges: Order Capture, customer-facing AR Invoice processes, revenue recognition, intercompany accounting, and GL interface to existing HP (SAP Lighthouse) systems.


Generate energy and measure progress by breaking down into “bite-sized chunks”, and be relentless …..

Wave Methodology


Project Plan


The project plan was

organized around a

series of “sprints” or

“waves.”

Sprint 1: 9/14 – 10/14

Sprint 2: 10/14 – 11/14

Sprint 3: 11/14 – 12/14

Sprint 4: 1/15 - 2/15

Sprint 5: 2/15 - 3/15

• Strategy was to use a combination of traditional waterfall and agile/scrum in a series of “waves” or “sprints.”

- PMO office developed a series of “sprints” to define solution development.

• Methodology used defined milestone dates together with rapid design and implementation techniques.

- Face to face meetings were considered critical to the process to confirm requirements and design.

• PMO Office focused on measurable, quantifiable metrics.

- Daily e-mails to entire project team, detailing UAT testing progress metrics.

- Test cases defined and blocking bugs identified in extremely methodical approach.

- CR’s (Change Requests) or bugs managed closely to identify owners and push resolution.

- Measure of tests completed against “trend line” used to keep team focused.

Project Methodology


Overall

Testing progress measured against required progression line

End to End Tests

Discrete Tests

Required Progression Line

Daily e-mail before daily 7:00 a.m. (Pacific) scrum

• Passed

• Failed

• Not run

• Incomplete

• Complete


Daily review of test case progression

Project Organization and Timeline

Project Organization – HP Software

Nigel Blair-Jones

Sr. Program Manager, HP Software

Order Management

TeamLead: Ann Hunter

Record to Report Team

Lead: John Dean

Technical Team

HP IT

Patrick Rueckert

Program Office

Project Organization – NetSuite (with Accenture)

Bruce Cavers

Sr. Director, NetSuite

Order Management

TeamLead: Casey Lucas

Record to Report Team

Lead: Paul Kirch, Max Elie-Salomon, Megan Radigan

Technical Team

NetSuite Offshore Team

Manoj Singh

Program Office

Timeline

Total Elapsed Time: 7 months

9/15/14 10/15/14 11/15/14 12/15/14 01/15/15 02/15/15 03/15/15

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6

Finish

Requirements Solution Design Technical Design

and Waterline

Development Testing UAT & Go Live

Start

Mobilization

• Discovery: 7 week joint discovery phase to firm up scope, effort & schedule before release of full project. Project structured as a two party partnership (NetSuite PS and HP Software). Discovery commenced in June 2014

• Kickoff: internal launch took place Aug 20, with rapid mobilization of both teams. Early focus was on developing a clear understanding of HP Software business requirements

• Requirements: NetSuite led daily on-site requirements gathering meetings Sep15 through Oct15

• Waterline Review: Early Nov. combined HP / NetSuite team met for a “waterline” F2F meeting to finalize requirements & scope, and agree on the overall solution. Cleared the path for NetSuite to build out those requirements

• User Acceptance Test: commenced Feb 04 for 6 weeks, including two-week F2F UAT session one week after start of test window

• Go Live: Project “go live” took place on Mar 16, 7 months after kick-off

Project Timeline


Solution Design

• Major Gaps- Use of contract, and creation of Sales Order from Contracts.

- Pricing, Discounting, and Exchange Rates (Accounting and Spot Rate Currencies).

- AR Invoice Design, with Japanese and French language requirements.

• Process Requirements- Sales Order Capture using ASOF (spreadsheet), with Draft Sales Order Creation.

- Revenue Recognition, Credit and Rebill and Cash Application processes.

- Intercompany invoice processing for “intercompany eligible” items through re-biller entities

• Integration with 3rd Party Software- Integration to Avatax required for U.S. Sales and Use tax determination and

calculation.

Solution Design


Revenue Recognition Process


Revenue Recognition Process

Acco

un

tin

gS

ale

sC

usto

me

r

Invoice/Cash

Sale

Generated

Revenue

Template

Defined?

Customer

Sales Process

No

Schedule

CreatedYes

Review

Revenue

Journal

Revenue

Booked

Schedule

Updated

Adjustment

Required?

Adjust

Invoice/Cash

Sale

Book Journal

Entry

Yes

No

Revenue Journal EntryInvoice/Cash Sale Revenue Schedule Financial Reports

Draft Order

Sales

Order

Fulfillment

Cash

Application

Invoicing


Factory Sales Office

#2 Trigger Sale of Software

from Factory to Sales Office

Reseller/

Distributor

or CustomerRe-biller

Bill From/Ship

From Ship From Ship To#3 Create I/C

AR/AP

(% discount)

#1

Customer

Facing AR

Invoice

# 4 Interco

AR/AP

(% discount)

Intercompany Overview

• Automated sequence of events on generation of customer trade invoice

• All intercompany records generated and stored at transaction level

Subsidiary Definition and Relationships


Local Sales

Office

Regional Hub

Sales Office

Regional Hub

Sales Office

Local Sales

Office

Regional Hub

Sales Office

Local Sales

Office

Local Sales

Office

Local Sales

Office

Regional

Re-Biller

Regional

Re-Biller

Regional

Re-Biller

Factory

• Deployed 20 entities to create trading model

• Intercompany workflow through entities dependent on customer location

• All flows and accounting are “under the covers” to business operations teams processing orders

Overview of Intercompany Invoicing Process


INTERCOMPANY HIGH-LEVEL FLOW - DRAFT

NET

SUIT

ED

ata

cent

erH

P F

ina

nce

sy

stem

s

NOTE: TRADING FLOW GBF0 = > CH19 => CA00 IS USED AS AN EXAMPLE TO EXPLAIN THE FLOW

CONTRACT

Intercomp. BillingLevel A IC AR

GBF0 CH19

Pricing Transfer

Global trade Screening

CustomerHPCCH19

LH1DAS/TRIM

Intercomp. BillingLevel B IC AP,

And IC ARCH19 -> GBF0 (IC AP acc)

CH19 CA00 (ICAR acc)

PDF Inv Output

CompanyCH19

Pricing Transfer

VendorHPCUS99

Standalone accounting doc.

Level B IC AP

CH19 CA00

VendorHPCCH19

CompanyCA00

CustomerHPCA00

CONFIRMATION

MANUALAccounting

docs

Entitlement Fulfillment

process

Trigger delivery

CUSTOMER

EmailLicense keys / SW download

CompanyGBF0

Trade Billing to Customer

CompanyCA00

PDF Inv Output

Confirmation of service

PDF Inv Output

Invoice Archival

Invoice Archival

ASSUMPTIONS

* IC AP transaction wiil not have IC Purchase order, this need to be understood.

*Pricing will be transferred from one document to another, only sourcing the IC discounts from one common database within Netsuite

IC FUNDING DISCOUNTS DATABASE

International or Non-U.S. Taxes


Month End NetSuite Task ListDay -2 Day -1 Day +1 Day +2 Day +3

Ensure fulfilled sales

orders have correct

status

Ensure customer payments are applied

against correct AR invoices

Calculate

Consolidated

Exchange Rates

Generate SAP LH

Extract and Load to

SAP

Invoice Fulfilled Orders

(AutoInvoice is on)

Create Revenue

Rec Journal

Entries

Load Exchange

Rates

Eliminate Interco

Transactions

(required)

Run Reports

Reconcile orders fulfilled

to orders invoiced, if

necessary

Ensure that I/C

AR and AP

accounts balance

by subsidiary

Create JV’s

including Accrual

JV’s and any

Adjusting JV’s

Book Revaluation

Journals, Adjustments

using Saved Search

Reconcile NS

balances with SAP

Lighthouse

balances

Ensure that all AR invoices have been sent

(e-mail or physical) to customers. (By

subsidiary, with 11:59 p.m. local time cutoff

on Day -1).

Review Actuals and

Finalize Revenue

Book Realized

Gain/Loss Journals in

GC (USD)

SAP/Lighthouse

Run sales trending and

other required reports

Lock NetSuite AR

Period

Finalize Revenue Lock NetSuite

Accounting Period

• “Follow the Sun” month end close schedule

• Country AR is locked at 11:59 PM local time

• Regional close starts with APJ

• Financial close activities follow the same regional sequence

Proposed Month End Schedule

Integration to SAP (Hybrid Cloud)


NetSuite

SAP (LH)

Requirements:

• Replicate SAP accounting

requirements. Each transaction

required to have Company Code,

Business Area, Profit Center, and

Natural Account.

• Provide the Transactional Currency

(TC), Local Currency (LC), and

Global Currency (GC) values on

each transaction.

• Accommodate (not replicate!) SAP

LH treatment of Unrealized

Gain/Loss on Revaluation and

Realized Gain/Loss on Transactions

Main

Rev Rec

Realized Gain/ Loss

Main Saved Search Extract Definition


Criteria Results

Integration strategy was to use a saved search in NetSuite to extract

information for load to SAP using the existing HP GL interface procedure.

Results

• Project Go Live- ABoC successfully went live over the weekend of March 13-15, 2015,

- During the week of March 16-20, team converted principal conversion objects, including:

- Customers

- AR Invoices

- Existing Open Orders

- Revenue Recognition Journals / deferred revenue schedules

• First month end close took place March 31, 2015

- Achieved to schedule

• First quarter close

- Closing as we speak

Results


“I’ve just discovered fire and can now venture out …”


“I’m inspired and feel as though I’ve just discovered fire and can now

venture out of the dark ages.” – HP Analyst

Conclusion

The Stories…

• Needed to deploy quickly with minimum CapEx and resources.

• Chose NetSuite for 124 subsidiaries around the world.

• Created repeatable implementation and rollout templates.

• Failed attempt to standardize on Oracle – too costly, too long.

• Reduced ongoing IT costs by 70% while gaining multi-currency

consolidation and increased organizational flexibility.

• 50-80% faster implementation.

• Aligned processes and gained control of 3,000+ projects in 15+ countries.

• Dramatically increased utilization and consultant-project fit.

• Gained enterprise visibility for forecasting.


• 2400+ employees

• $414.5M revenue in FY13

• $123M revenue in Q1 FY14

• Used by 20,000+ organizations

• Fastest growing top 10 FMS WW

• Used across 100+ countries

The Undisputed Cloud ERP Leader


The Undisputed Cloud ERP Leader

NetSuite is the most successful ERP suite SaaS provider operating in terms of active customers, international presence and functionality offered across the product.

Event Note: Observations and Analysis From NetSuite's Global Customer ConferenceAnalyst(s): Chris Pang, Robert P. Anderson, Christian Hestermann, June 2011


Thank You

SuiteWorld 2016 // May 16–19

see you next year.


ITA2323_Final_SHOWREADY_28April2015

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