How McKesson Successfully Delivered the Largest HR Analytics Project

Ling Xiang Oracle BI Applications Product Manager Ian Leath Enterprise Solutions Director McKesson Barry Cooper Head of Development McKesson

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle Corporation.

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Oracle BI Applications Product Family

Rapid Performance Insight
CRM ANALYTICS
SALES MARKETING Campaign Effectiveness Customer Insight Product Propensity Market Basket Analysis Campaign ROI

ERP ANALYTICS
FINANCIALS General Ledger Accounts Receivable Accounts Payable Fixed Assets Profitability Expense Management PROJECTS Project Funding and Budget Product Cost Project Revenue Project Billing Project Profitability Resource Mgmt HUMAN RESOURCES Empl. Productivity Compensation Talent Management Recruiting Analysis Learning Analysis Workforce Profile Time & Labor STUDENT INFORMATION Admissions and Recruiting Student Records Student Financials PROCUREMENT & SPEND Direct & Indir Spend Sourcing Buyer Productivity Contract Compliance Supplier Perf. Purch. Cycle Time Employee Expense SUPPLY CHAIN & ORDER MGMT Revenue & Backlog Inventory Analysis Fulfillment Status Customer Status Order Cycle Time BOM Analysis MANUFACTURING Plan to Produce Work Orders Inventory and WIP Quality, Resource Usage Bill of Material Costing

SERVICE & CONTACT CENTER Service Effectiveness Customer Satisfaction Resolution Rates Service Rep Efficiency Service Cost Service Trends

Pipeline Analysis Forecast Accuracy Up-sell/Cross-sell Cycle Times Lead Conversion Sales Team Effectiveness

PRICE Price Segments Price Waterfall Analysis Deal Life Cycle Deal Desk Analysis Product Pricing Performance

LOYALTY Member Demographics Membership Trends Promotion Cost Promotion Effectiveness Points Analysis

ENTERPRISE ASSET MANAGEMENT Maintenance History Maintenance Costing Asset Genealogy Breakdown & Preventive Quality Inventory

ORACLE BUSINESS INTELLIGENCE FOUNDATION

SOURCE ADAPTERS: AND OTHER OPERATIONAL AND ANALYTIC SOURCES

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Oracle BI Apps: Deeper than Dashboards

1.
Pre-Built Analytic Warehouse
Business Analytics Warehouse Over 300 star schemas Designed for analysis and reporting

2.

Certified Application Integration

Pre-mapped integration Fusion, EBS, PSFT, SEBL , JDE, IBM Role-based Security

3.

Best Practice Metrics

Over 10,000 metrics Additional pre-defined calculations Based on best practices

4.

Role-Based Dashboards
Over 500 Dashboards and Pages Over 3,000 reports Across Lines of Business

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Whats in Human Resources Analytics

Dashboards 11 Dashboard Pages 55 Reports 323 Attributes 683 Workforce Effectiveness
Corporate Contribution Effectiveness Trends

(11.1.1.7.1)
Metrics 600

Retention
Overview Retention Hotspots Top Performers Trends

Recruitment
Overview Requisitions Vacancy Analysis Recruitment Pipeline Offer Analysis New Hires Applicant Pool Quality of Hire Recruiter Effectiveness Requisition Recruitment Activities Recruitment Event Details Candidate Sourcing

Time and Labor

Overview Timecard Monitoring Processed Time Time Coverage Time Trend Estimated Labor Cost

Workforce Deployment
Overview Staffing Demographics Trends

Absence and Accrual

Overview Accrual Absence Trends Absence Details Absence Calendar
Overview Salary Compression Pay for Performance

Payroll
Overview Payroll Trend Payroll Cost Overtime Spend Payroll Labor Hours

Workforce Development
Overview Employee Performance by Supervisor Employee Performance Supervisor Performance Internal Mobility Top Performers Under Performers

Compensation

Learning
Overview Manage Enrollments Training Results Delivered Training

Fusion Embedded Content

Workforce Trend Turnover Trend

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

What Is New HR Analytics 11.1.1.7.1

Time and Labor
Benefits of Time and Labor Analytics
Gain quick insight into key time collection metrics and monitor timecard status Analyze reported time trend and time usage pattern
Track productive and non-Productive time and

control overtime usage

Check reported and processed payable time

variance
Analyze time posting to payroll and projects Easy navigation from key metrics, time trend

to transactional timecard details

Support Oracle and PeopleSoft Time and

Labor; Support for Fusion Time Labor is planned

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What Is New HR Analytics 11.1.1.7.1

Payroll
Benefits of Payroll Analytics
A new star schema to store pay run

transactions including earnings, deductions, taxes and special balances

Aggregate payroll balances into configurable

summary measures for better total compensation and cost analysis, e.g. total base pay, employer-paid healthcare cost and taxes, etc.
Time trend analysis on payroll measures e.g.

year, quarter, month and year ago

Custom fields to extend payroll balances Support Fusion, EBS and PeopleSoft Payroll

(including North American and Global Payroll)

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

What Is New HR Analytics 11.1.1.7.1 Core Workforce Enhancements

Dimensional enhancements
New HR Assignment dimension to support multiple assignments New HR Person dimension captures the static view of a person (no history); new HR

Person Legislation dimension to support legislative attributes, e.g. ethnicity and captures history
New Cost Center dimension (derived from an employees department) New HR Supervisor hierarchy at the assignment level instead of at employee level New HR Position hierarchy New Compa-Ratio Band dimension New Legal Entity dimension

New Reporting Establishments dimension

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

What Is New HR Analytics 11.1.1.7.1 Other Enhancements

All fact tables have been enhanced to support new dimensional

changes New Performance Band in Learning Enrollment and Completion subject area New Workforce frozen snapshot to support as-Is and as-was reporting Enhanced Type 2 slowly-changing dimension joins (use Type 1 original key plus Effective Date) Redesigned Compensation dashboard to analyze salary compression

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

Next Generation Data Integration

BI Apps 11.1.1.7.1 with Oracle Data Integrator and Golden Gate
Oracle Data Integrator provides
In-database E-LT Transformation vs. E-T-L Best in class performance, scalability, availability Lightweight deployment for lower TCO Faster time-to-value through declarative design

Oracle Golden Gate option for BI Apps

Reduce load on source system by streaming data

continuously into persistent store in the DW More reliable change data capture and delete support Enables near real time DW refresh

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

HR Analytics Roadmap
Current Releases and Roadmap
BI Apps 7.9.6.4 January 2013
For Applications Unlimited customers ETL with Informatica

Whats Next 0-12 month planning cycle

Fusion & AU: release alignment Dual ETL ODI and Informatica New content: Talent Profile Analytics New cloud adapters: Adapters to Fusion HCM Cloud Services, Taleo Recruiting adapter Co-existence of Fusion, Taleo Clouds and Apps Unlimited in HR Warehouse New: Better support flexfield extension Cost of Ownership Improvements: Data Lineage, ETL Validation, platform support Endeca Extensions

Future Directions Post 12 month planning cycle

BI Applications as Oracle Cloud Service New content: HR/Financial integration, continuous Talent Management enhancements New Cloud Adaptor: Fusion Time and Labor Unstructured/big data analytic applications e.g. employee survey analysis Continue user experience redesign by leveraging BI Foundation Suite platform developments including Mobile App Designer Additional cost of ownership improvements

BI Apps 11.1.1.7.1 May 2013

For Application Unlimited customers New ETL with ODI New Golden Gate option New Time and Labor Analytics New Payroll Analytics New Adaptor: PeopleSoft Global Payroll

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

HR Analytics Cloud Integration

OTBI
BI Common Semantic Model

On Premise
BI View Objects

OBI Applications PSFT HCM

OTBI

ETL

ETL

BI Common Semantic Model

Fusion HCM SaaS

OBIEE Semantic Model

Release 8

EBS HCM

Other Sources

OBIA Data Warehouse

ETL
Taleo Recruiting
Flat Files Extract

SaaS Cloud

Release 9

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

Whats Planned: Higher Value Prebuilt Analytics

Workforce Sentiment
(unstructured analysis of surveys and reviews)

Endeca Extensions
Why is attrition in the Midwest spiking?

Operational Modeling
(domain specific forecasting and performance mgmt)

Essbase Extensions
How many should I hire to meet projected demand?

Future

Advanced Analytics Extensions

Predictive Metrics
(smarter KPIs)

Will more training increase employee productivity and by how much?

Today

HR Analytics
(historical analysis on structured metrics)

HR Analytics
(historical analysis on structured metrics)

Fusion OTBI
(real-time operational analysis & reporting)

Fusion OTBI
(real-time operational analysis & reporting)

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

How to Successfully Deliver the Largest Oracle Human Resources Analytics Project

Open World 2013

Ian Leath Enterprise Solutions Director Barry Cooper Head of Development McKesson Corporation Confidential and Proprietary
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Leading change for 180 years

Pioneering
Drug Distribution and Manufacturing

Revolutionizing
Industry Practices

Innovating
Quality, Safety and Efficiency Solutions

Mid to late 1800s Established first U.S. national drug distribution system, with covered wagons delivering products 1833 to 17 states Founded as drug importer and wholesaler

Early 1900s Became leading distributor of drugs in U.S.

1968 McKesson Labs became No. 1 maker of Vitamin C and aspirin in United States

1990 Launched McKesson IOG in England & Ireland 1989 Introduced first PC-based realtime ordering system for pharmaceuticals

1999 Launched McKesson IOG in France & Netherlands 1990s Merged with leading IT, supply and automation companies to become largest healthcare services company

1870 McKesson Labs introduces first easy-to-swallow gelatin-coated pill

1964 First to manufacture generic form of Tetracycline

2012 The UK's leading Health and Social Care IT Solutions and Services 2011 provider McKesson acquire System C Healthcare

McKesson Corporation Confidential and Proprietary

At the forefront of innovation in healthcare since 1833 15

Our global presence

USA
McKesson Corporation founded 1833 Employs more than 36,000 staff globally Leaders in information technology, pharmaceuticals, pharmacy automation and disease management solutions

UNITED KINGDOM
McKesson founded 1990 Staff 750 + Leading health and social care IT provider Used by every NHS healthcare provider Fastest growing system supplier in social care

NETHERLANDS
McKesson founded 1999 Employs more than 90 staff McKesson systems support 1/5 of all patients in hospital or mental care

IRELAND
Our Picture Archiving and Communications System is being installed in more than 30 hospitals across the Republic.

FRANCE
McKesson founded 1999 Employs more than 320 staff #1 Supplier of e-prescribing and nursing systems in the acute sector

GERMANY & SWITZERLAND

McKesson Cardiology imaging technology is used in more than 30 hospitals

McKesson Corporation Confidential and Proprietary

US$112 billion turnover worldwide

Ranked #14 Fortune 500

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Location & Staff

Over

99%

of all NHS organisation in England and Wales have McKesson solutions and services

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Organised into 2 Business Units

Workforce Solutions
A unique portfolio of products and services designed to accelerate the benefits of the NHS Electronic Staff Record (ESR)

Health & Social Care

Responds to the markets increasing requirement for solutions which reflect the care journey ignoring boundaries between hospital, community and social care
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Workforce Solutions
McKesson Shared Services (MSS) provides payroll outsourcing services to NHS organisations
Provides HR, payroll and pensions services to 50 NHS organisations Delivering the ALBs contract with Logica Includes electronic efficiency tools such as absence management, electronic timesheets and electronic expenses management the Electronic Payroll Suite Also covers Client Services everything from education and consultancy to project management

The Electronic Staff Record (ESR) HR and payroll system for the NHS in England & Wales
Worlds largest integrated HR and payroll system, paying 1.4 million NHS staff every month (7% of the working population) ESR has delivered major savings to the NHS through replacing multiple separate HR and payroll systems. It replaced 67 HR systems, 1702 in-house trust systems and 28 payroll systems It continues to offer NHS managers the tools needed to more efficiently manage their workforce and meet the NHS requirements for higher productivity and lower costs 10 year contract value is 500m
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The Electronic Staff Record and the NHS

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McKesson Corporation Confidential and Proprietary

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The National Health Service (NHS)

The NHS is the fifth largest employer in the world The largest employer in the UK Employs over 1.4million people in England and Wales 574 organisations Free at the point of care

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The NHS Electronic Staff Record (ESR)

replaced

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67 1,702 28

is the complete workforce management tool for the

NHS

HR systems

Terms and conditions Training history and qualification Absence history Occupational health information Training management and E-Learning delivery

in-house

Payroll systems

Single workforce IT system for a devolved NHS

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The National Solution for the NHS in England and Wales

420 350,000 250,000 175,000

organisations paygrades

allowances

1.4 2 12

million employees
million payslips per month

51.5

million lines of custom code supported

million lines of code and configuration

7% 300,000 265,000
of the working population joiners a year leavers a year
The Worlds largest integrated HR & Payroll system
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Assignments an hour

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Unique Challenges
Unique issues and challenges
Error affecting 0.1% of assignments means 2,000 problems for ESR; Replication of faults for a resolution can sometimes be extremely difficult; There is nothing else on the scale of ESR.

Very Severe SLAs

100% Pay Accuracy; 99.6% Availability; 100% of the Service Fee is at Risk each Month.

All new Functionality needs to be scalable

Performance testing of paramount importance; 100% goals with penalties attached makes change a major risk.

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What the ESR Solution Delivers Today

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Operating Facts of ESR

Application HCM 12.1.3 Database 11gR2 IBM Power7 running AIX OS

20 TB Database
5 million assignments processed each month $3 billion per month payroll value Payroll processing peak rate circa 175k assignments per hour 44,000 Professional Users 4500 concurrent users (Maximum) Approx. 1m Enabled Self Service Users (Manager/Employee)
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ESR Solution Components

HR/ Payroll

Self Service OLM

Reporting

eLearning

Data Warehouse

Interfaces Registrations

NHS Layer Configuration 500+ Customisations

E-Business Suite

Oracle HCM R12.1 Oracle Database 10G IBM POWER7 AIX 6.1

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ESR Functional Components

Data Warehouse
Smart card eRec
eKSF GMC

Local Reports Employee/Manager Self Service and Shared Service

Strategic Decisions

NMC
T&A BACS GL BACS EDI eProd

Absence Management Payroll

Learning Management

Talent Management Recruitment

Core HR

HR/Finance Establishment (Workstructures)

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HR Analytics How Did We Do It?

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Drivers to Move to OBIA

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Drivers to Move to OBIA

Provide a new reporting facility which would become the strategic reporting tool of the future.

An independent data warehouse.

Provide Line Managers with more analytical analysis reporting capability.

Report scheduling (not available in Discoverer)

Replacement of the Discoverer Reporting solution (this is a much longer term aim/goal)
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The Proof of Concept

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Focus of the Proof of Concept (PoC)

Primary focus on ETL incremental timing
Ability to load the data from a typical business day (online and batch activity) within the incremental window Target 3 hour window for the incremental load

Secondary focus on functional data model and capability PoC was jointly run exercise with Oracle providing specialist OBIA expertise alongside our own application and technical specialists.
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PoC Customer Needs & Expectations

Warehouse populated every night with incremental data amendments therefore data is maximum 24 hours old Empower the customer to take ownership for the dashboard and analyses development OBIA facility should be launched from within ESR, logging the user into OBIA with their correct security context Used the out-the-box dashboards and analyses as a template / guide for developing their own Kept the seeded subject areas
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PoC McKesson Expectations

Some standard EBS functionality not replicated by OBIA Competencies, Qualifications, E-Learning (player aspect) Element entries, Grades and Spine Points (non Comp workbench salary) Various Extra Info Types (EITs) and Special Info Types (SITs) Some of the things we knew we would need to customise

Custom Data Security Model (VPD and STC)

Absences (assignment level) timeline and costing Payroll costing and GL mappings
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The Project

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Project Goals & Deliverables

Aggressive timeline, with Programme-level commitment to go-live end of March 2013
Project kick-off in September 2012
Multiple streams to cover analysis, infrastructure commission and build, education, development and test

Structured end user education approach train the trainers

Phased rollout to all organisations
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Project Structure
Governance Internal Project Board External Project Board Delivery Development team Functional Analyst/Design Testing Education Project Manager, Technical Architect and DBAs
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Things we expected to be straightforward

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#1 - Security
Security Profiles No out-of-the-box organization security although examples on how to implement are included in the manual No generic out-of-the-box integration of EBS security profiles in OBIA EBS Responsibility mapping to OBIA roles

No automatic mapping
Mapping is a customization in OBIEE. The documentation does mention how to do it but its not out the box
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#2 - Assignments
There is no discrete Assignment dimension. Assignment level data items are included in the Person dimension We had to build our own Assignment dimension and link it into every FACT

#3 - Others (quick round-up)

No out-the-box support for EITs and SITs
Organization Reporting (drill) hierarchy Terminology
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McKesson Corporation Confidential and Proprietary

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Data Change History/Date Tracking

Beware how you implement date tracked changes in the ETL so that all date track changes from EBS are accurately reflected
OBAW by default does not cater for history stored in source (Siebel) system, so has its own implementation for recording history of change

Date tracked deletes not implemented out the box

Some date tracked changes not replicated across correctly

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Other Challenges
Integration Not as tight as between Discoverer and EBS Data security Agents / Scheduling Others Payroll mapping Data truncation Absences mapping, especially with open-ended absences Data quality and the ETL
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Lessons Learned

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BI Caching
Is it for you and your implementation? Why we turned it off. Functional breadth

Data depth
Implementation Dont rely on the cache to fix what you think may be performance problems design your solution with performance in mind.
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Development Practice
BI repository not ideally suited to collaborative working DAC & Informatica is easier to collaborate on

Various 3rd parties have recommendations on multi-userdevelopment techniques, and plenty of information in the Blogosphere. Worth the research up front
As per EBS, observe rules about custom object naming conventions

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A Positive Outcome
Success of the project relied heavily upon our skilled and experienced team

Positive outcome because of the McKesson skills and help from a direct route into Oracle development
Many of our solutions to product issues were fed back to Oracle so that they could be included within the core product at a later date

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A Successful Project

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A Successful Project
The project went live as planned at end of March 2013 and the customers love it!

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Management Overview Dashboard

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Example Competency Analyses

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Absence Trends Over Period Analyses

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Monthly Pay Bill by Element Group

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How Large?
2.3 billion Payroll FACT records 360 million/year or 30 million/month estimated growth 237 million workforce event/month FACT records 369 million absence event/ month FACT records. 41 million absence dimension records

13 million employee dimension records

Typical incremental load takes 4 hours Initial full load (from live ESR source) takes 3 days
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