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Oracle Approvals Management (Approvals Management Engine - AME) with iProcurement

Jan 17, 2007

Manoj Desai Dharmang Purohit

TIBCO Software Inc.


TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business.

With over 2,500 customers, TIBCO has given leading organizations around the world better awareness and agility what TIBCO calls The Power of Now.
TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains. Visit www.tibco.com for more information

2007 UBEX Corporation and TIBCO Software Inc. .

Presentation Objectives
Business Case Feature Description AME Components
Define Rule in AME Terminology

Solution overview Implementation steps Benefits Lessons learnt Questions

2007 UBEX Corporation and TIBCO Software Inc. .

Business Case
Situation prior to AME implementation
Core purchasing approval structures within Oracle Purchasing based on: Job Department Approval amount limits Approval hierarchies maintained across 14 operating units. Linear Employee/Supervisor approval hierarchy Dummy job roles to facilitate budget review

2007 UBEX Corporation and TIBCO Software Inc. .

Business Case
Major pain points
Maintenance issues No possibility for creating global structure Approval hierarchies had to be maintained across 14 operating units Exceptions to Employee-Supervisor hierarchy were not handled easily Approval cycle process issues Inefficient budget review process rejections require start from scratch

Project objectives
Determine an approval structure to be maintained on a global basis

Improve budget review cycle time

2007 UBEX Corporation and TIBCO Software Inc. .

Business Case - ROI


Cost of NOT implementing AME
Manual data entry & testing to maintain 14 operating units 8 hours per month

Data entry errors and recovery


Longer requisition approval turnaround time

Cost of implementing AME


Consulting - 70 person days TIBCO internal 36 person days

Return
Manual data entry reduced by 95%

10% improvement in approval cycle time

2007 UBEX Corporation and TIBCO Software Inc. .

Feature Description
What is AME?
Oracle Approvals Management (AME) is a self-service Web application that enables users to define business rules governing the process for approving transactions in Oracle Applications (where AME has been integrated). AME is tightly integrated with Oracle Workflow

2007 UBEX Corporation and TIBCO Software Inc. .

Define a rule in AME


Components of Rule are: Attributes: requisition amount, department Conditions: 5001 <= requisition amount <= 25000, department = 84200 Approval: Pre-approval group + direct hierarchy
If Requisition Amount between 5001 and 25000 USD and Department = 84200 then require pre-approval from FA2 and approval in direct hierarchy up to absolute job level 6 Rule

2007 UBEX Corporation and TIBCO Software Inc. .

Terminology
Pre approval group = A group comprising of finance analysts responsible for budgetary approval (selected based on amount, department)

Chain of authority = The main approval group or employee supervisor hierarchy


Post approval group = A post approval group which can approve requisitions after the initial chain of authority based on conditions (amount, department, etc.) Job Level = Approval Authority level associated while defining a job in Oracle HRMS

2007 UBEX Corporation and TIBCO Software Inc. .

Solution Overview - Global Purchase Requisition Approval Hierarchy


Rule #1
Enter Requisition up to $1.5K

Rule #2
Enter Requisition

Rule #3
Enter Requisition Up to $10K

Rule #4
Enter Requisition Up to 25K

Rule #5
Enter Requisition Up to$50K

Up to $5K

Pre approval group


Line Mgr Approval Line Mgr Approval

Financial Analyst *

Financial Analyst *

Financial Analyst *

Defined in AME

Line Mgr Approval

Line Mgr Approval

Line Mgr Approval Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP *

Job Lvl 3

O r

Mid Mgr Approval

Mid Mgr Approval

Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP *

Job Lvl 4

a c

Job Lvl 5

l e

Sr Mgr Approval

Sr Mgr Approval

Job Lvl 6

H R

Director Approval

Job Lvl 7

M S

Chain of Authority

Sr. Officer

Job Lvl 8

Post approval group

Corporate Controller

Corporate Controller

Defined in AME

CFO

2007 UBEX Corporation and TIBCO Software Inc. .

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Implementation Steps

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Benefits
AME helps you maintain your business logic associated with approval transactions globally from single window Lets you cut down approval related workflow customizations, hence reducing the cost of ownership Helps you leverage common expenditure policies across modules, thus consolidating your approval policy requirements Any transaction is assured to be approved under the latest conditions, regardless of organizational changes, currency fluctuations or transaction data Built-in testing utility to check the correctness of setup performed for both real-time and test transactions, hence reduces the need for elaborate testing cycles Intangible benefits derived from solution design
Reduced requisition approval turnaround times, thereby increasing the efficiency of our procure-to-pay process Increased visibility of spending traits upfront to management chain

2007 UBEX Corporation and TIBCO Software Inc. .

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Lessons Learnt
A well defined purchasing expenditure matrix helps to establish a solid foundation for creating approval rules in AME Gaps within employee-supervisor hierarchy with respect to job levels can extensively affect desired functionality It is always a safe practice to close down all in-process requisitions before going live with AME implementation Analyze the impact of your implementation with other applications already using AME and also with other applications using employee-supervisor hierarchy for approvals Identify your exception handling strategy upfront in case of any errors encountered during calculation of approvers by AME

Identify your requirements for segregation of duties aspect (SOX).

2007 UBEX Corporation and TIBCO Software Inc. .

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Ubex Corporation
Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications

Ubex is an Oracle Certified Partner

UBEX Booth Visit Booth # 14 today or www.ubex.com for more information Enter for a chance to win Nintendo Wii !!!

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Q & As

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End
- Thank You -

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