Haemonetics Global EBS Journey:

SAP Acquisition, Migration to EBS,

and an Upgrade to R12 Just for Fun
Tony Gazikas and Alyssa Johnson

Haemonetics Corp

Introductions Tony Gazikas

Vice President,
Chief Information Officer Haemonetics Corp.
30+ years managing and engineering information technology solutions
for global companies
Responsibilities:
Corporate IT Strategy and delivery of Enterprise IT Applications &
Engineering, Infrastructure, Networking, Telephony, IT Security, Device
management & Mobility

Recent Accomplishments:

IT Organizational Transformation
Corporate wide Infrastructure & Security Refurbishment (20+ sites)
Acquisition of Palls Whole Blood business (SAP based)
Oracle ERP R12 Upgrade
Seamless automated iOS deployment with connectivity to Enterprise Apps
Corporate wide Single Sign On for all internal and external SaaS apps

Chief User Delight Officer

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Haemonetics Corp

Introductions Alyssa Johnson

Practice Director, Rolta
Engagement Manager for transformational projects including
- Oracle E-Business Suite implementations
- Release 12 EBS upgrades, and Mergers & Acquisitions

Advise clients across all business areas assisting with

strategic IT planning and design
President of the Oracle Applications User Group (OAUG)
International speaker on a variety of Oracle E-Business Suite
topics

Co-Author of The Release 12 Primer for Oracle EBusiness Suite

Haemonetics Corp

Our Companies
Haemonetics
Headquartered in Braintree, MA with $939M in FY14 revenue. Haemonetics
is a global healthcare company dedicated to providing innovative blood
management solutions for its customers. Together, Haemonetics devices and
consumables, information technology platforms, and consulting services
deliver a suite of business solutions to help customers improve patient care
and reduce the cost of healthcare for blood collectors, hospitals, and patients
around the world. Haemonetics is the leader in blood management and our
technologies address important medical markets: blood and plasma
component collection, the surgical suite, and hospital transfusion services.
Rolta
Rolta is an international Engineering and IT consulting firm with revenues
exceeding $600MM, over 5000 employees and a $1B market cap. Rolta is
recognized internationally as a leader in the industry, providing both
management and technical support services to clients.
Since first opening its doors for business, Rolta has achieved impressive
growth by making a difference in the communities it serves and adhering to a
corporate mission that states:
Rolta helps organizations gain valuable business insights and provides
dynamic technology solutions for various verticals, including
Manufacturing, Process, Utilities, Power, and Banking amongst others.
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Haemonetics Corp

A tale of 3 stories (2 of them EBS)

Whats the first sign that you have work coming your way?...
The CFO comes to visit you in your office, not theirs

Haemonetics was just embarking on a 5 year IT infrastructure

overhaul plan when we made the business decision to Acquire
Palls Whole Blood business
The 2 years that followed became a wild ride with 3 major IT
programs:
1.
2.

3.

Acceleration of the IT Infrastructure plan to add scale and

stability for the acquired Pall manufacturing assets/staff
Upgrades to our EBS for Day 1 (a carve out with only 3
months post announcement)
A highly flexible implementation plan to perform a much
needed ERP Upgrade to R12
Haemonetics Corp

Pall Whole Blood Carve Out

Acquisition
Haemonetics Migration from SAP to Oracle

Typical IT Acquisition Challenges

Licensing
Infrastructure
Communications
Systems Access
Training
ERP Functionality

Haemonetics Corp

It can however get much harder.

Pall and HAE had very different IT footprints
Systems

Pall Applications

Haemonetics Apps

Email

IBM Notes

MS Exchange

ERP

SAP, DSI, MAPICS (Italy)

Oracle EBS

US Direct eSales

Rx Crossroads-SAP

GHX

Quality/Regulatory

Pilgrim, IBM Notes & Fileshares

Agile

Engineering & Plants

IBM Notes, Maximo, Fileshares

Fileshares, Maximo

Timekeeping

Kronos, Solari (Italy)

Manual systems

Payroll

ADP Globalview

local country suppliers

Telephony

Siemens

Avaya

Haemonetics Corp

Whats the plan to operate in 3 months?...

With less than 3 months between the acquisition

announcement and Day 1 we needed to act fast
For non-ERP functions, create complete duplicate of all IT
systems and run in parallel until conversion (0-2 years)
For ERP functions, split the baby
Use existing HAE Oracle E-Business Suite for most sales and
non-inventory purchasing functions
Retain SAP to operate the plants and conduct US eSales until
conversions are possible

What about that much needed Release 12 upgrade?

Put that on hold for now please, we have some work to do
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Haemonetics Corp

Integration Landscape
Worldwide sales and 4 manufacturing plants

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Covina CA
Tijuana MX
Fajardo PR
Haemonetics Corp
Ascoli
IT

Haemonetics Oracle ERP Footprint

Financials
Projects
Discrete Manufacturing
Process Manufacturing
ASCP
Procurement

22 Operating Units
60 Inventory Orgs
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Haemonetics Corp

Order Management
Advanced Pricing
Service
Field Service
Depot Repair
Service Contracts
HCM
Hyperion Planning
Essbase, OBI, DRM

Acquiring SAP Footprint

Financials
Discrete Manufacturing
Supply Chain Planning
Procurement
Order Management
Advanced Pricing

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Haemonetics Corp

A Phased approach to Manufacturing

Integration
Phase 1 (Day 1)
Duplicate Pall ERP IT systems for manufacturing
but Carve out corporate functions
- HR
- Financials
- Implementation of all Non US Sales (OTC)

Phase 2 (<1 Year)

Implementation of Global Manufacturing on EBS
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Haemonetics Corp

Day 1 - US
Plant Functions
on SAP ERP

Corp Functions
on Oracle ERP

All local purchasing, manufacturing,

and inventory management

Assets
(Excel)
SAP

PO &
Receiving
AP

Bank

14

Upload TB

MFG

AR

GL

OM

INV

GL
Temp

Oracle
MAP

GL
AR
(Interco)

Virtual
Warehouses
AR

OM

INV

3rd Party Haemonetics

O2C Provider
Corp

From -90 to +90 days

Available Day 1

1033 new items

52 sub-inventory orgs
42 shipping networks
10 inventory organizations
8 new bank accounting systems
4 New Sets of Financial Books, Legal Entities, and Operating Units
3 additional Temporary Sets of Books to support SAP
2 existing Operating Units brought up to full functioning business units

Available Day 90
Two Additional Operating Units

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Haemonetics Corp

Within 1 year
Accelerated exit off SAP onto Oracle in 9 months
Identification of high impact areas assured focus
- Item and BOM conversion
- EDI interfaces with 3rd Party O2C provider
- Procure to Pay

Multiple passes at data conversion

- Get production migration right the first time!

Comprehensive historical data retention strategy

All financials & all manufactured items
Comprehensive Lot traceability reports
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Haemonetics Corp

Implementation Methodology
ROLTA Oracle Implementation Lifecycle

PLAN

DESIGN

BUILD

TEST

DEPLOY

Program Management & Governance

Business Enablement
Technology Enablement
Development & Integration
Organizational Change Management & Training

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Haemonetics Corp
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M&A Key Takeaways

PLAN

Establish M&A vision and communicate early and often

Define critical business decision options and drop dead dates
A new operating unit it takes X weeks and we need Y by Friday

Rationalize post-merger ERP environment with goal of establishing a

common system
Size of the ERP systems
Opportunities for standardization
3rd party systems & interfaces

Create overall plan with well-defined timelines and milestones

Establish business ownership for all key decisions
Cross functional governance to manage contention (Escalate FAST!)

Identify and establish project teams with key stakeholders and

knowledge leaders
Over-communicate business change management

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Haemonetics Corp

M&A Key Takeaways

DESIGN/BUILD

Design of integration
Importance of the vocabulary of ERP systems
On Site Visits are ESSENTIAL
Cautiously Identify opportunities to streamline
- Consider best practices, including acquired companies process, but
- Dont take on too much change even if its better, take good notes and come
back later during optimizations

Data Conversions
Knowledge base of both system is critical
- Get a knowledgeable experts in the acquired ERP technology

Data Dictionary imperative

Determine upload method: APIs, Dataloader, etc.
Establish repeatable method even if manual and test it many times
- It always takes more time to align data than you think.. Add time!

See business validation (special reports likely)

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Haemonetics Corp

M&A Key Takeaways

TEST

Pay attention to business processes as well as systems

Identify and/or build a Power User group
Bring users physically together for at least one CRP
Do some local visits as well before go-live
Consider sending IT experts at sites during transition

Take a Train the Trainer approach

But dont leave any users behind in the training process

If possible, leave time in plan to support additional

testing or validation

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Haemonetics Corp

M&A Key Takeaways

DEPLOY

Communicate, Communicate, Communicate

Messaging is key
Importance of Training
Rapid Response team and Helpdesk is vital during
first two weeks of deployment
Test the response model before you need it
Have backup processes for relaying problems (dont
depend on one number or one email)

Have standing meetings each day

Reach out proactively
hows it going?
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Haemonetics Corp

M&A Key Takeaways

POST MIGRATION

Celebrate!
Post-production support imperative
Continue to integrate team
Follow-up in 1 month to find lingering issues
that wont get reported first time around
Many future optimizations are identified when the
dust clears

Follow the overall Roadmap

Thank those quiet heroes that made a
difference but tend to hide in the back!
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Haemonetics Corp

Back to the EBS R12 Upgrade

Business Drivers for R12

11i version is end of life 2015
R12.1.3 is stable, supported for 6 more years (to 2020)

R12 has improved global financials for companies

Reduced complexity across business units and countries
Sub ledger accounting improves access to transactions

More standard functionality with less work-arounds

Easier to implement future functionality
Shared Services
- One responsibility can enter, view, and report on multiple operating units

Payments
- Better manage payment process for global organization

Prepares the way for advanced reporting (OBIEE engine)

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Haemonetics Corp

R12 Upgrade Schedule

FY14

FY15

VAL,
SOX &
UAT

UPGRADE

CRP5

Signoffs

CRP4

Training

CRP3

Finalize
Requirements &
Documents

Training

Training

Business
Requirements

EIT

Business

Freeze
Window

Final Issues
Resolution

R12 Development & Remediation

Go Live
8/1

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9/1

10/1

11/1

12/1

Haemonetics Corp

1/1

2/1

3/1

4/1

5/1

6/1

Project Statistics
1089 Training Modules Oracle User Productivity Kits (UPKs)
711 Custom Objects Remediated
175 People Engaged in testing (CRPs & UAT)
133 Traceability Test Scripts
111 Oracle Responsibilities consolidated
106 Oracle objects decommissioned in R12
96 Continuous Hours Conducting the Upgrade
71 Custom Interfaces Upgraded
16 Steering Committee Members Driving Success
5 Conference Room Pilots to verify operability
4 Complete Test Runs of the Upgrade Playbook
1 Production System Upgrade and GO-LIVE on May 6th
An implementation team dedicated to HAE success!
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Haemonetics Corp

Key planning elements

Augment internal team with functional support staff
Use a backfill model where possible - internal SMEs learn new system

Create a repeatable 11i to R12 technical upgrade process

Run it multiple times, We ran ours 5

Plan to conduct reporting upgrades concurrently

OBIEE & Hyperion Planning and Reporting

Create a 6 month countdown calendar

Planned communications up to and including 30 days post Go-Live

Create 7x24 global Go-Live support model

Consider clever tools like DeskAlarts as to inform during cutover

Expect surprises post Go-Live no matter how good testing and

planning are (Rapid response)
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Haemonetics Corp

Work Products and Deliverables

Assess
and
Plan
Work Products and
Deliverables

Design

Work Products and

Deliverables

R12 Impact Analysis

R12 Impact Analysis

on RICEW Items

Functional
Specifications

Development
Standards

Instance
Management plan
Inventory of
functional process
Detailed project
plan

Build

Work Products and

Deliverables

CRP2

Upgrade

RICEW
Remediation

Configure all
OUs

Configuration
Documents

Apply RICEW

Config Mgmt Plan

Knowledge Transfer
Plan

CRP1 Instance

Issue & Gap Log

Unit Testing

Mobilize Team

Issue & Gap Log

Workshops with
EIT BAs

Prioritized RICEW
List

Delta Test Scripts

CRP3

Upgraded R12
Instance

Update Playbook

Upgrade

Additional
Upgrade for OPM
migration

Evaluation of
Rapid E-Suite

Technical
Specifications

3rd Party
Integrations

Update Playbook

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Work Products and

Deliverables

Customizations
(RICEW)
Remediation

Initial Upgrade
Playbook

Test

Test

Haemonetics Corp

Merge Delta Test

Scripts with Agile
Test Scripts
CRP4/CRP5
Upgrade
Gather
timings
Configure all
OUs
Apply RICEW
Test Execution
All OUs
Localizations
3rd Party
integrations
Test Results
Issue & Gap Log
Update Playbook
Deployment Plan
Training Material
preparation

Deploy

Work Products and

Deliverables

End User Training

UAT
Upgrade
Apply RICEW
Test Execution

Go-Live

Go-Live
contingency/
roll back plan

Go-Live cut
over plan

Final upgrade
playbook

Production
Support

Progress was made prior to SAP integration

Assess
and
Plan
Work Products and
Deliverables

Design

Work Products and

Deliverables

R12 Impact Analysis

R12 Impact Analysis

on RICEW Items

Functional
Specifications

Development
Standards

Instance
Management plan
Inventory of
functional process
Detailed project
plan

Build

Work Products and

Deliverables

CRP2

Upgrade

RICEW
Remediation

Configure all
OUs

Configuration
Documents

Apply RICEW

Config Mgmt Plan

Knowledge Transfer
Plan

CRP1 Instance

Issue & Gap Log

Unit Testing

Mobilize Team

Issue & Gap Log

Workshops with
EIT BAs

Prioritized RICEW
List

Delta Test Scripts

CRP3

Upgraded R12
Instance

Update Playbook

Upgrade

Additional
Upgrade for OPM
migration

Evaluation of
Rapid E-Suite

Technical
Specifications

3rd Party
Integrations

Update Playbook

29

Work Products and

Deliverables

Customizations
(RICEW)
Remediation

Initial Upgrade
Playbook

Test

Test

Haemonetics Corp

Merge Delta Test

Scripts with Agile
Test Scripts
CRP4/CRP5
Upgrade
Gather
timings
Configure all
OUs
Apply RICEW
Test Execution
All OUs
Localizations
3rd Party
integrations
Test Results
Issue & Gap Log
Update Playbook
Deployment Plan
Training Material
preparation

Deploy

Work Products and

Deliverables

End User Training

UAT
Upgrade
Apply RICEW
Test Execution

Go-Live

Go-Live
contingency/
roll back plan

Go-Live cut
over plan

Final upgrade
playbook

Production
Support

R12 Upgrade Key Takeaways

ASSESS/PLAN

Resourcing

Continuity was key

Flexibility enables multiple projects
Leverage knowledge base
Highly-skilled team customer and consultant

True Partnership (everyones vested)

Project Management
Strengths complimented each other
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Haemonetics Corp

R12 Upgrade Key Takeaways

DESIGN/BUILD

Manage Custom Objects

Used Panaya to identify custom objects
Leveraged off-shore model
Remediated 711 custom objects

3rd Party integrations

Statements of Work required with some parties
71 Interfaces
- Remember banks and EDI are long lead time items

Scope of end-to-end testing inbound/outbound

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Haemonetics Corp

R12 Upgrade Key Takeaways

TESTING

Additional testing cycles

For Finance Business Owners
Prove out solutions
Build confidence and train

Focused testing on delta functionality

Validation strategy includes automation of
testing
Traceability Matrix key to assuring complete
testing coverage
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Haemonetics Corp

R12 Key Takeaways

DEPLOY

Cutover plan critical for manufacturing facilities and

distribution centers

Orchestrated communication plan in multiple languages

key
Deploy IT staff to high use locations for go-live
Rapid Response Teams for key production areas

Code freeze continued until after first month end close

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Haemonetics Corp

Summary
Large scale business transformation is fun
Mergers and acquisitions (M&As)
Major system upgrades
Business process re-engineering

Transformations create opportunities for IT to

demonstrate significant corporate value
Success lies in

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Knowing the a long range IT roadmap and vision

Flexibility and openness to business strategy changes
Creating solid and repeatable methodology for delivery
Having fun along the way!!
Haemonetics Corp

Questions
Rolta Booth Moscone South 1911