Financial Services Industry

Cognos Implementation
Services for

Financial
Transactions
Processor #1
Subsidiary #1

Audit. Tax. Consulting. Financial

Advisory.
 Deloitte Consulting LLP
50 Fremont Street
San Francisco, CA 94105

Tel: 415-783-4000
Fax: 415-783-4329
www.deloitte.com

November 1, 2005

Person...
Client X

Dear Person...:

Client X (“Client X”) is undertaking a key project in choosing a Cognos planning

implementation to support your organization’s continuing strategic
development. Deloitte Consulting LLP (“Deloitte Consulting” is pleased to
submit our proposal to provide you with service excellence and support in
attaining this goal for Client X.

We take great pride in the work Client X and Deloitte Consulting have
accomplished together over the years. As one of our most important clients,
Client X has our firm’s pledge that every team member assigned to any Client X
engagement will be personally committed to exceeding your expectations and
providing superior service. In addition, Client X receives priority attention from
the top levels of our organization as a member of our Global Strategic
Relationship (“GSR”) program. Client X’s GSR status enables us to leverage the
talents of our most senior principals, professionals, and thought leaders to
address the issues that you face as a complex organization. Limited to the top
1% of all clients we serve – including Financial Transactions Processor #2,
JPMorgan Chase, and US Bank – the GSR program provides a network to
leverage leading practices from relevant engagements throughout the world.

For ease of locating information and understanding our response, we have

responded in your required format, Attachment B, supported by a
supplementary document and attachment as necessary to meet Client X’s
request for a detailed question response.

We look forward to discussing how we will work with you to make this
important project a success. In the meantime, should you have any questions as
you review our proposal, please feel free to contact me at the phone/email
provided below.

Sincerely,

Patricia Kloch Jennifer Steinmann

Lead Engagement Director Quality Assurance
Principal

Member of
Deloitte Touche Tohmatsu
 Deloitte Consulting LLP
50 Fremont Street
San Francisco, CA 94105
Deloitte Consulting LLP Deloitte Consulting
LLP Tel: 415-783-4000
Fax: 415-783-4329
206-716-6137 415-783-5247
www.deloitte.com
[email protected]
[email protected]

Member of
Deloitte Touche Tohmatsu
Table of Contents

Table of Contents............................................................................3
Executive Summary.........................................................................1
Executive Summary........................................................................................... 1

Statement of Work (SOW) Elements...............................................1

1. Project Overview........................................................................................... 1

2. Methodology and Approach...........................................................................5

3. Project Schedule and Deliverables..............................................................22

4. Project Team................................................................................................ 27

5. Why Deloitte Consulting?............................................................................32

6. Our Qualifications........................................................................................ 34

7. Project Assumptions.................................................................................... 39
Statement of Work Elements

Executive Summary
Executive Summary

Understanding Client X’s Needs

Client X (“Client X”) is committed to enhancing its ability to respond to market opportunities and to
achieving strategic and business goals. In support of these objectives, Client X has initiated a
project that will move your organization to a continuous, forward-looking planning process. This
process will be designed to integrate end-to-end business planning, forecasting, and reporting.

In teaming with Client X to help you achieve the right results, Deloitte Consulting LLP (“Deloitte
Consulting”) brings a comprehensive set of experiences and skills that translate into key benefits
for Client X.

Deep Experience in Implementing Cognos CPM

Client X has indicated that Cognos is
the likely technology for
implementation. Deloitte Consulting Please take a look at what Cognos has to say
has a deep relationship with Cognos, about our performance with their products.
as well as people certified and View us online at the Cognos site at:
experienced in the technology and all http://www.cognos.com/news/releases/2005/0
phases of an implementation such as
627_2.html
that is planned by Client X. We have completed more than 150 Cognos implementations in
planning, budgeting, and forecasting. Our relationship with Cognos has resulted in the following
distinctions:

 Named 2005 Global SI partner of the year, a distinction held only by Deloitte Consulting.
 Deloitte Consulting is a charter member of the Cognos Global Partner program, recognizing
our experience in and ability to perform large, complex Corporate Performance
Management implementations for Cognos customers globally.
 Accredited Cognos Enterprise Planning solution provider and Platinum consulting partner
(2005).
 Services Partner of the Year (2004), a designation given to the partners with the most
outstanding implementations measured by well managed projects with quick time-to-
success and overall customer satisfaction.

Because of the status of our relationship with Cognos, they have committed to provide, on a
subcontract basis to Deloitte Consulting, two full time corporate resources to support this
important initiative. Other benefits of our relationship with Cognos include:

 Extensive training and certification of our consulting staff.

 Development of our vertical knowledge base applied to the Cognos solution.
 Participation in Beta implementations of new product releases and collaboration with
development to help customize solutions to meet our customers' needs.
o As the 2005 Global SI partner of the year, Deloitte Consulting participated with
the pre-release of Cognos 8 BI. We co-developed with Cognos resources
upgrades for select reports from Series 7 to Cognos 8 BI.

Proposal for Cognos Implementation – November 2005 1

Statement of Work Elements

o Our experience with both Cognos Series 7 and Cognos 8 BI enables us to

provide Client X with an objective perspective to support your decision-making
process.
o Our consultants have Cognos 8 BI partner education in addition to deep
knowledge of Cognos Series 7.
 Senior Cognos executive dedicated to the success of the Deloitte Consulting relationship
and client implementations
 Access to the highest level of technical support at Cognos

In addition to the application implementation capabilities of Cognos and Deloitte Consulting, our
consulting practice brings credit card industry knowledge, technology integration skills, and deep
project management and forecasting process best practices knowledge. Cognos and Deloitte
Consulting can bring further depth in the reporting and analytical tools developed by Cognos that
can extend and enhance the value of your solution.

Extensive Integrated Performance Management

Experience
Our Financial Management practitioners have helped many large, complex organizations develop
strategies, complete process design, architect the IT infrastructure and implement integrated
performance management solutions. These solutions have helped our clients better link strategy
to the budgeting process, align individual performance measurements and provide a common
source for reporting and decision support.

In conjunction with our Supply Chain, CIO Services, Human Capital and Enterprise Risk Services
practices we have extended IPM solutions to include monitoring and reporting for procurement, IT,
human resources, and regulatory compliance performance.

Our Technology Integration practice has helped our clients further extend these solutions to
include remote access, self service, and third party data source capabilities in secure
environments using single sign on.

Please see the Appendix - Deloitte Consulting’s IPM (Integrated Performance Management
Services) for further details and linkages to our Cognos practice.

World Class Change Management Capability

Our Human Capital Advisory Services practice is the second largest human resource consultancy in
the world with extensive experience in Change, Leadership and Learning; HR Operations and
Technology; Organization and People Performance; and Compensation and Benefits.

Our Change enablement services contribute significantly to our success with Merger Integration,
ERP, Portal and other systems implementation projects. We would bring Client X these same world
class capabilities to our Cognos Implementation project as well.

Deep Experience in Oracle Environments

Deloitte Consulting has a top-tier Oracle practice built on outstanding strategy and delivery
capabilities and a long-term relationship with Oracle. We have more than 2,500 Oracle
practitioners worldwide. Deloitte Consulting is a Global Oracle Certified Advantage Partner; Global
Systems’ Integrator of the Year (2004); PeopleSoft Partner of the Year (2005); and has a
collaborative relationship with Oracle development on specific products, most recently PLM, ICM,
and Partner Relationship Management. We are very experienced in integrating Cognos into Oracle
environments.

This deep experience in both Cognos and Oracle means that Deloitte Consulting brings Client X
comprehensive understanding of all aspects of the implementation – we understand the

Proposal for Cognos Implementation – November 2005 2

Statement of Work Elements

technology, we understand your culture and needs, and we understand how to get you the results
you want in the most efficient and effective manner.

Tools and Technologies Designed for Efficiency

Deloitte Consulting has tools, templates and deep expertise to accelerate development of Client
X’s planning solution and provide the means for Client X to meet its aggressive timeline. We have
extensive knowledge and experience in planning, budgeting and forecasting process best practices
to facilitate resolution of remaining process design decisions. Our project and change management
methodologies and tools are designed to provide a framework for control, risk mitigation, testing,
and effective communications and training.

Senior, Experienced Team with In-depth Knowledge of

Client X
Client X and the Deloitte US firms have a long-standing and powerful business relationship built on
trust, complementary skills, capabilities, and resources. We have gained insight into your strategic
issues because of our intimate knowledge of your organization and business. Our proposed core
project team is composed of senior and experienced professionals who have deep knowledge in all
aspects of Client X’s desired Cognos implementation. Deloitte Consulting believes that by
dedicating senior professionals to this project, several of whom have successfully teamed with
Client X on past engagements, we can minimize ramp-up time on the project and ultimately
provide a more comprehensive and valid solution with a Client X/Subsidiary X context.

In addition to the core team, we have identified subject matter experts from our security and
strategy practices. They will contribute and provide perspectives regarding the overall strategy as
we focus on the specifics of the assessment.

Strong, Ongoing Relationship with Client X

Client X’s business model and related needs are complex and unique. To achieve and maintain
service excellence for Client X, our relationship-based approach is supported by a comprehensive
understanding of your extended enterprise and your multiple interdependent relationships. We
gained this understanding of Client X’s environment and strategies by working with you on a wide
range of more than 60 successful projects over the years. Supporting our effort on this project will
be Anna Mok, the senior Deloitte & Touche LLP partner responsible for the overall relationship of
the Deloitte US firms with Client X.

Collaborative Approach with an Unyielding Focus on

Results
Our working style is collaborative and professional. Our communication is open and frequent. The
Deloitte Consulting team will integrate easily into your organization, working collaboratively to
assist you to meet your objectives in a timely manner. This level of ongoing feedback and project
improvement builds buy-in as the project progresses.

We look forward to working with you on this important project.

Proposal for Cognos Implementation – November 2005 3

Statement of Work Elements

Statement of Work (SOW)

Elements
1. Project Overview

Background
Client X has undertaken an initiative to move to a continuous, forward looking planning process
that integrates end-to-end business planning, forecasting, and reporting. The overall goal is to
greatly enhance Client X’s ability to respond to market opportunities and achieve its strategic and
financial goals. With this vision, Client X Finance has launched an initiative to improve both the
process and tools required to support a continuous planning process.

 Based on our understanding of Client X’s needs, Client X is considering implementation of

Cognos Corporate Performance Management Suite (CPM) that will allow Client X to:
 Standardize planning budgeting and performance activities throughout the organization.
 Align business and financial planning, budgeting and forecasting.
 Perform budgeting and forecasting at a cost center level for all business units.
 Analyze actuals to forecast variances at the lowest desired level.
 Have an easy-to-manage and low maintenance report creation, generation, and
distribution environment.
 Seamlessly interface with the already existing planning solutions (VFM and TM1). See the
Appendix for details.

Project Success Criteria

Client X is embarking on a project to implement leading forecasting practices using the Cognos
CPM application to transform Client X’s budgeting processes. It is Client X’s intent to implement an
initial forecasting and reporting foundation limited to 50 budget and reporting users and 3 models
in Release 1. The April 3, 2006 target date is aggressive but it can be achieved with an
experienced and integrated process and application consulting team, project accelerators and
proactive involvement and support from Client X core project team resources and subject matter
experts as required.

Subsequent releases will rollout additional models with increasing capability and expanding user
base through to approximately 15 Analysts and 175 Contributors for budgeting and 265 users for
reporting.

Therefore, both 1) establishing a scaleable architecture; and 2) knowledge transfer to the Client X
team in Release I are critical and important dimensions in order to set the stage for subsequent
incremental roll-outs that may be led by the Client X team supplemented with consulting advisory
support.

Strategically, the measures of success for this initiative are:

 The effectiveness of the new processes and technology in advancing the Client X’s
planning and reporting capabilities (rolling 18-month, continuous planning model and
robust reporting and analytical capabilities) to manage the business and to support timely
decision-making;

Proposal for Cognos Implementation – November 2005 1

Statement of Work Elements

 Significant reduction in the duration and in the manual effort to consolidate and reconcile
data to complete the financial forecasting process;
 Well-understood and documented forecasting processes for Release I and buy-in to the
future state Vision to complete the roll-out for additional models and processes;
 Comprehensive technical and business process documentation to support knowledge
transfer, ease of maintenance, and assist in meeting regulatory documentation
requirements;
 The ability of the Client X project team to not only sustain the Release 1 models but also to
make enhancements to these models in subsequent roll-outs;

 To have clearly defined forecasting roles and responsibilities inside and outside of the
Finance organization.
 To help achieve SOX/SEC compliance.

By working with Deloitte and Cognos, our clients such as Cognos Inc., Aviva, Halliburton, Zimmer
and a major credit card organization have successfully implemented the Cognos CPM solution and
are well on their way to support incremental roll-outs throughout their organizations.

Scope
The following diagram provides an overview of the application scope of the Phase I
implementation. We understand that Client X has not yet made a Cognos Platform decision. We
are happy to provide additional objective insights to support your decision making processes. For
the reasons specified in “Our Understanding” we have made an assumption that the Platform of
choice for Phase I will be Cognos 8 BI and Cognos Enterprise Planning 7.3. Our implementation
budget will not be impacted by the decision to implement Cognos 8 BI or Series 7.

The following illustrates a high-level logical architecture of the application solution for Phase I:

Proposal for Cognos Implementation – November 2005 2

Statement of Work Elements

The following are the key scope items that form the basis of our proposal:

 General Functionality. Standard Cognos application functionality meets Client X

requirements.
 Revenue Model. The Revenue Model will be a “catcher’s mitt” application to collect
summary data from contributors either through the Excel loader, the Excel interface,
manual entry or copy and paste. The model will not contain any calculation logic and it will
not be a leading practice model.
 Expense and Compensation/Headcount Model. Client X will standardize on one
Salary/Headcount model and one Expense model, using leading practices, tailored for
Client X across all business units.
 Planning models. The above noted planning models are based on an 18-month rolling
forecast models.
 Reports. The following five reports will be developed as jointly agreed using the Cognos
platform of choice. The nature and content of the report will normally drive the type of
reporting solution (Analysis vs Enterprise Reporting):
o Statement of Revenue and Expense by General Ledger Summary Account
Report

Proposal for Cognos Implementation – November 2005 3

Statement of Work Elements

o Statement of Revenue and Expense by General Ledger Detail Report

o Professional Consulting Report
o Divisional Breakdown Report
o Headcount Report
 Framework Manager Model. A ReportNet framework manager model will be developed
that supports ad-hoc reporting for the data that exists in the Phase I Planning solution and
or data imported from the in-scope legacy systems specified below per the Data
Integration paragraph.
 Standard Reports. There are no standard Enterprise Planning reports delivered by
Cognos.
 Security. Security associated with the operating system, the network (including the
Internet, Intranet, and WAN), and individual user access is the responsibility of Client X.
 Data Quality. Client X will be responsible for all data quality, integrity and cleansing (if
needed). Data quality may impact the project go live date and budget. Project
management will jointly agree on changes to scope, schedule and budget as a result of
data quality.
 Data Integration. Consistent with the RFP requirements, Deloitte will be responsible for
loading inbound data and meta data from source system data files into Cognos Enterprise
Planning. Client X will be responsible for providing such data files (from Oracle and VFM) to
Deloitte based on specifications required to load the data into the Cognos Enterprise
Planning application which will be defined at the end of the Visioning and Design Phase.
Deloitte will also be responsible for providing Cognos outbound files to Client X based on
Client X defined specifications for such systems. Client X will be responsible for loading
such data into the Client X source systems such as Oracle or Metify.
 Licenses. For Phase I, Client X will deploy the Cognos solution to approximately 50 users.
These users will have a combination of budgeting and reporting access. The long term
expected user base will be approximately 15 Analysts and 175 Contributors for budgeting
and 265 users for reporting.
 Business Units. Up to 9 business units will be in scope for Phase I. This number may be
reduced depending upon the rollout schedule. Phase I will only be deployed to Client X.

Proposal for Cognos Implementation – November 2005 4

Statement of Work Elements

2. Methodology and Approach

Project Approach
Deloitte Consulting successfully implements Cognos projects with a structured approach tailored to
our client’s project constraints and objectives. The success of the project can be measured at
many levels – from the tactical level to the strategic level as identified above. Tactically, the
interim delivery and acceptance of deliverables, on-time, and on-budget are typical measures of a
project’s success.

There are other tactical, as well as strategic, measures but the reality is that they can only be
achieved in a predictable way by following a structured and rigorous approach to the project.
Management of stakeholders, mitigating and controlling risks, managing scope creep and many
other aspects have to be monitored and tightly controlled to achieve success with both the tactical
and strategic objectives.

Considering Client X’s project constraints and project goals, our proposed project approach is a
clear differentiator from other service offerings. Deloitte Consulting has proven successful results
in large enterprise deployments of Cognos CPM. As the Cognos 2005 Global SI of the year, we have
been formally recognized by Cognos for our success in assisting our joint clients in both national
and global implementations of Cognos CPM and Business Intelligence (BI).

The three differentiators of our approach include:

 Proprietary Express™ for Cognos CPM Methodology. Deloitte’s proven and

proprietary Express™ Methodology has been tailored for Cognos CPM implementations
(through over 150 implementations globally) with built-in application and leading practice
process and forecasting accelerators.
 Resourcing – A Deloitte Led Project. We will provide a Deloitte led implementation
team that will collaborate with Cognos technical resources in key threads of the project.
We will also leverage the senior leadership team of our project and their experiences on
similar projects. Deloitte Consulting is uniquely qualified to provide this approach since
Deloitte Consulting is the only full-service professional services firm that is also Accredited
Cognos Solution provider and was awarded the 2005 Global Systems Integrator award by
Cognos.

 Multi-disciplinary Approach. Combining Deloitte’s extensive experience with financial

services and payment card organizations with our world class integrated performance
management, change management, project management and Cognos application
capabilities.

Proposal for Cognos Implementation – November 2005 5

Statement of Work Elements

Express Methodology
Every organization has its own set of unique business objectives, resource constraints, and time
frames. We have found that a phased approach with well-timed checkpoints is the best method to
successfully implement the Cognos CPM – yielding quick wins and managed change throughout the
organization. Each phase of the implementation has a clearly defined purpose, which ensures that
all goals have been satisfactorily met before moving on to the next phase.

Our comprehensive and proprietary approach is based on our firm-wide Information Systems
methodology, Express™. The Express Methodology consists of Five Phases: Scoping and Planning,
Visioning and Targeting, Design, Construction and Implementation. For this project we, have
combined the Visioning and Targeting Phase with the Design Phase to form “Visioning and
Design.” This approach recognizes the fact that Client X has been conducting internal design
sessions to determine the future state processes and therefore the change supports the
aggressive timeline.

Express Methodology also consists of Five Threads: Project Management, Change Leadership,
Process Redesign and Package Implementation, Information Technology, Process and Systems
Integrity, Training and Performance Support.

The following illustrates our tailored Express Methodology Approach for this project with an
overview or detail description of our approach for each Phase and Thread as requested by the RFP
requirements. Details on the deliverables can be found in the Deliverable section of this document.

The key benefits of our Express approach to Client X include:

 Mitigation of the configuration risks and confirming the application fit to address Client X’s
l requirements
 Reflects the need to prototype the proposed solution in order to obtain Client X sign-off on
the designs
 Strong focus on project scope and expectations management
 Emphasis on knowledge transfer and client self-sufficiency
 Leverages the DeloitteAdvantage Accelerators for Cognos Plannning, as well as the Cognos
Innovation Center blueprints and lessons learned from previous engagements.
 Supports ‘no surprises’ consulting and a collaborative project team approach

Proposal for Cognos Implementation – November 2005 6

Statement of Work Elements

Express Methodology Phases - Scoping and Planning

During the Scoping and Planning phase, the business and technology objectives for the project are
defined, and high-level project plan for meeting them is developed. An assessment of the “Current
State” processes and technology standards is conducted in order to better understand the factors
that will impact the project goals. In addition, a “Leading Practices Process and Technology Gap
Assessment” will be completed to highlight the short-term and long-term opportunities for
improvement.

From a technology perspective, we leverage Cognos Inc. consultants to size and install the
development environment so that it is ready for the start of the Visioning and Design Phase.

Express Methodology Phases - Visioning and Design

As noted above, we will leverage process work currently completed by Client X by combining the
“Visioning and Design” phase. During the Visioning and Design Phase, the project team creates a
high-level planning calendar and process vision for the organization to achieve performance
improvement objectives, using the packaged software as the primary enabling technology. The
key activity includes understanding process redesign requirements and developing the future state
process vision based on leading practices.

In parallel, we will also work with Client X subject matter experts to complete the redesigned
Cognos CPM model designs. We will leverage our DeloitteAdvantage Prints and Cognos Innovation
Center BluePrints for the Salary and Compensation model and the Expense model. The prototype
designs will be developed in Cognos Enterprise Planning so that Client X may sign-off on the
prototypes before the Construction Phase begins.

From a reporting perspective, we will work with Client X subject matter experts to understand,
document and design the reporting and ad-hoc query requirements for release 1.

From a technology perspective, we will leverage Cognos Inc. consultants and support them in
arriving at appropriate production environment technology/hardware requirements.

Express Methodology Phases - Construction

During the Construction phase, the consulting team will configure the Cognos Enterprise Planning
and Reporting solution based on the prototype and reporting design documentation approved by
Client X. Our approach includes at least 1 Client X Cognos Enterprise Planning application resource
and 1 Client X Cognos BI resource working side by side with the consulting team to develop test
scripts, test each component of the solution and to benefit from knowledge transfer by working
closing with the Deloitte and Cognos consultants. We encourage Client X to identify and extend
additional resources especially for the Cognos CPM application to benefit from the knowledge
transfer process. Those Client X resources that will ultimately become future release Cognos
Planning Analyst administrators should participate in the model construction with Deloitte
consultants.

We will leverage our DeloitteAdvantage Cognos development standards and Accelerators to

configure and test the solution within the project time lines.

From a technology perspective, we will leverage Cognos Inc. consultants to install the production
environment, plan and execute the migration of the development to the production environment,
provide knowledge transfer with your Client X Technology team and to complete the technical
documentation to support ease of maintenance and knowledge transfer with your team.

From a process perspective, we will complete detail process and application documentation that
will be used to support the training and roll-out of the application.

Proposal for Cognos Implementation – November 2005 7

Statement of Work Elements

Express Methodology Phases - Implementation

During the Implementation or “Roll-out” (per the RFP requirements) phase, the consulting team
validates the new business processes end-to-end to obtain user acceptance.

These activities will include set-up and validation of the production environment for the system, as
well as the commissioning of the permanent support team to address the administration and
maintenance of the Cognos CPM system long-term.

Other activities include preparing for and delivering end-user process and application training,
performing process and technology cutover activities for "go live", and planning for post
implementation support and review.

Our proposal also includes consulting resource effort during the post-go live to complete project
technical and process documentation, obtain Client X sign-off on outstanding deliverables, while
assisting Client X to stabilize the system during the post-production period for a total of 3 weeks,
including the week of April 3, 2006. We will also conduct a project lessons learned debrief session
with Client X core project team resources as part of our project wrap-up.

Express Methodology – DeloitteAdvantage Accelerators

The following is a representative list of the DeloitteAdvantage Accelerators which may be
leveraged to deliver the project on-time and on-budget.

Tool Examples Objective

Deloitte  Cognos Planning The Deloitte Advantage prints have been developed over
Advantage Design Standards time to support our consultants and client teams to
Prints and Templates accelerate the delivery of Planning projects without
compromising the quality and completeness of the
 Complete design and
deliverables.
Cognos Planning
Print for Capital In addition, our Cognos CPM eroom contains a collection
Planning and Salary of sample project deliverables from over 100 Cognos
Planning (employee Planning and BI project implementations, globally. These
level and job-level) sample deliverables can be leveraged by Deloitte
consultants to accelerate deliverable completion.
 Cognos Planning
Administrator
Documentation
Templates
 Cognos Planning
Administrator
Process Templates
 Cognos Planning End
user Training Manual
Templates
 Rapid Security
Configuration
Templates

Cognos  Compensation and Our Deloitte consultants have leveraged the Cognos
Innovation Headcount BluePrint Innovation Center BluePrints to support the Visioning
Center phase of the Project.
 Forecasting
Methodology The Blueprints assist our clients to think out of the box
BluePrint when envisioning future state planning capabilities.
 Strategic Planning The Client X Cognos Planning models will be developed
BluePrint based on the Deloitte Cognos Planning Design

Proposal for Cognos Implementation – November 2005 8

Statement of Work Elements

Tool Examples Objective

 Capital Planning standards.

BluePrint

Finance This framework is designed to facilitate discussions with

Transformati senior client leaders on how to best reorganize the
on finance function to take advantage of leading practices.
Framework It starts with the overall strategy of the organization and
drives to a series of projects monitored by the finance
transformation program office.

CFO This framework is designed to represent a holistic view

Management of finance. It includes all major processes, roles,
Framework performance measures, technologies and organization
required to build a leading finance function. It is typically
used to support finance transformation initiatives and
projects.

Leading The objective of this tool is to serve as a portal that

Practices in includes all major leading practices and learning within
Finance the firm. It represents the combined learning of
thousands of practitioners across the globe.

Enterprise The Enterprise Value Map is an integrated model that

Value Map includes the major drivers of values for an organization.
It helps executives understand how projects and change
initiatives affect overall shareholder value. It also helps
to uncover additional opportunities and helps to
prioritize initiatives based on shareholder value creation.

Process The objectives of these redesign tools are to help

Redesign practitioners quickly and effectively redesign critical
Methodology processes. In addition, Deloitte Consulting has
developed enterprise-wide business process flows that
serve as a starting point for client process modeling.

Proposal for Cognos Implementation – November 2005 9

Statement of Work Elements

Tool Examples Objective

ValuePrint The objective of this tool is to help executives develop

and monitor the business value of change initiative
investments. It ensures that any change initiative is
aligned with corporate goals while reducing the time and
resources required to develop robust business cases.

Express Methodology Threads – Project Management

Project management activities will be important components of the project to help manage risks,
support quality control, report status and manage all project resources (time, staff, and budget).

Our project management approach is based on the Project Management thread, part of our proven
Express for Cognos Planning implementation methodology. The key project management activities
include status reporting, quality management, risk management, issues management, and change
control.

Status Reporting
Status reporting on a project serves two purposes. First, status reports provide feedback and
information to project stakeholders on the progress and outlook of the project. Second, status
reports serve as an historical record of the project’s progress, issues, deliverable status, etc. Our
experience suggests status reports should be drafted with both of these functions in mind.
Background information and context that is obvious to the project team at the time of the report
may be unavailable to subsequent readers or stakeholders outside the immediate project team.

Status reporting will be accomplished through a bottom-up approach. Project team members will
interact with project management on a daily basis, reporting on their work progress, any issues
they can see, schedule and calendar updates, activities planned this week and next, etc. In turn,
project management will incorporate this information into a written status report delivered at a
weekly status meeting. Project management will be responsible for the method and timing of
collecting information from individual team members.

Status reporting will contain a summary of progress against the project work plan and milestones.
A sample status report includes information in several categories, including:

 Work activity status – planned for this week and next (an outlook) and based on activities
in the detailed project work plan;
 Deliverable/outcome status – all major deliverables are listed and progress/status of the
work on those deliverables is captured;
 Open issues – a “snapshot” of all open issues with a synopsis of the issue, its impact and
activities underway to resolve the issue. This list includes risk events that have occurred or
are potentially imminent. This list can also include the status of any open change requests,
if applicable; and,
 Percent complete and cost-to-complete – when appropriate, this information can also be
included in the status report. Percent complete refers to overall task and/or deliverable
completion rates. Cost-to-complete represents a forecast of the total project cost
incorporating actual costs incurred to date and the latest estimate of future work/effort
and associated costs.

Proposal for Cognos Implementation – November 2005 10

Statement of Work Elements

Status reports will be an integral component of the change leadership and communication plan for
the project. Distribution schedules and patterns will be decided early in the Design phase but are
typically weekly and to all identified project stakeholders.

Quality Management
Quality management is concerned with ensuring that project processes are consistent with
creating deliverables and outcomes that meet the requirements of project stakeholders. Quality
management involves clearly stating project objectives during the early stages of the project,
setting interim review points throughout the project lifecycle, tracking open issues to confirm
resolution strategies and generally maintaining an arm’s length viewpoint on project progress and
approaches.

A number of quality management activities will take place as part of the overall project delivery:

 Project management will be responsible for regular and frequent reviews with the
responsible project team members of deliverable progress and content;
 A Project Advisor will provide relevant industry and functional views and opinions regarding
the applicability, usefulness and general fit of key deliverables (e.g., Cognos Planning
models); and,
 Regular quality assurance meetings will be built into the project work plan and schedule.

These activities will be incorporated into the project plan and will be monitored by project
management.

Risk Management
Managing risk is a key component of Deloitte’s Express methodology for implementing Cognos
CPM. The purpose of risk management is to facilitate the early identification of potential project
risks in order to develop strategies and plans of action for addressing and mitigating those risks.
Brainstorming Activity
Risk management is an ongoing I Identify New Risks
dentifyRisks
Risks
activity, from the start of the project
with the creation of the project
charter and continued on an on-
going basis through the completion Perform
Performrisk
riskanalysis:
analysis:
of the project. Although all risks
cannot be entirely eliminated, they •Assess
•Assesslikelihood
likelihoodand
andimpact
impact
•Set
•Setpriorities
typically can be reduced through •I
priorities
•Identify
dentifyearly
earlywarning
warningsigns,
signs,ififapplicable
applicable
early identification and •Develop
•Developcontingency
contingencyand
andmitigation
mitigationplans
plans
management. Risk management •Assign and monitor action items
•Assign and monitor action items
will reduce the probability that
given risks will materialize and will
establish contingency plans to deal Provide
Closed Out, Provide
with risks should they in fact occur. Regular
Regularreviews
reviewsand
andfollow
followupup feedback
feedbacktoto
Addressed on
or Expired oncontingency
contingencyand
andmitigation
mitigation management
management
plan
planaction
actionitems
items and
andproject
project
Deloitte Consulting’s proposed risk Risks team
team
management approach consists of
the following two major activities:

Initial Risk Management Assessment and Strategies

During the Design phase of the project and as part of the Project Charter deliverable, an initial risk
assessment results in a matrix with areas identified as potential risks for the successful completion
of the project. Risk impact ratings are developed for each identified risk using a Low/Medium/High
scale. Risk impact levels are assessed based on the impact to timelines, resources and budget
should the risk event occur. The risk assessment will also include the likelihood of occurrence for
each risk should no mitigation action take place (i.e., probability). Where applicable, suggested risk
mitigation actions for significant risks will also be included in the assessment. Risk tolerance is
something that is unique to each client, but our experience assisting clients with Cognos Planning

Proposal for Cognos Implementation – November 2005 11

Statement of Work Elements

implementations suggests that risk mitigation strategies will need to be developed for all risks that
rate at or above a High-Medium level for impact and probability, respectively.

Ongoing Risk Monitoring

A key element of the risk management approach involves regular reassessment and monitoring of
the project risk environment. Formal monitoring and reassessment activities will occur at a
minimum of every 2-3 weeks and/or at major project milestones (e.g., transition from phase to
phase). These activities will formally document the project risks. On an on-going basis, project
management will regularly assess the risk of the project and necessary actions. As appropriate, the
project managers will present risk status findings and recommendations to the overall project
governance structure (e.g., project steering committee, project sponsor, engagement partner).

Issues Management
Issues management is critical to the communication of and facilitation of project progress. Issues
are a fact of project life. For the sake of clarity, an issue should be considered a question, a
concern or a problem related to the project. Risks to the success of the project can also be
considered issues. The presence of an issue does not mean that a project is in trouble. Indeed, our
experience suggests that the absence of any project issues is a good signal that a project is in
trouble.

All project team members can and must identify issues related to the project. As appropriate, team
members should take on the responsibility of resolving any issues that come to their attention and
to notify the rest of the team. If the team is unable to resolve an issue, the issue will then be
escalated to the project governance structure (e.g., steering committee, project sponsor, etc.).
Records of both open and closed issues will be maintained in an Issues Log.

The documentation of an issue will include a brief description, date entered, assignment, target
closure date, closure notes, status and priority.

Key open issues will be also

documented in the weekly status Issue
report for review by project approved
management and the project
governance structure (e.g., steering
committee, project sponsor). It is identified
evaluated
expected that project team
accepted
members will not wait for the timing
of a status report to identify issues.
Instead, it is expected that as soon
as an issue has been identified and
rejected
analyzed, it will be documented and
communicated to project resolved
management. Key
Open Closed merged
If a reported issue is related to
project scope, that issue will be
elevated to a new category, proposed scope changes, and worked through the project’s change
control process.

The graphic above depicts the issue management life cycle and is intended to indicate the
numerous stages towards closure a given issue can progress through.

Issues are classified generally by priority. The higher the priority level for a given issue, the greater
the importance on resolving the given issue within a rapid timeframe so as to avoid project
schedule slippage or permit risk events to occur.

Proposal for Cognos Implementation – November 2005 12

Statement of Work Elements

Change Control
The purpose of a formal change control process is to clearly define requests for changes and
ensure appropriate approvals are gained before those changes are implemented. It is also
important to establish clear procedures for responding to proposed changes in a manner that
ensures timely decision-making. Change control documentation and approval procedures provide a
visible decision-making process for the project and a clear audit trail of changes.

A change is identified as any item which will result in the addition or reduction of resources, and/or
improve or delay the completion of a major project deliverable. Potential changes to the project
can occur in any of the following areas:

 The project’s critical path (i.e., overall duration or schedule of the project);
 The project’s deliverable(s) (e.g., number of, nature of, specific contents, purpose/intended
usage, etc.);
 The project budget; or,
 The project’s resources (i.e., assigned team members).

All change requests will be submitted using a change request form and can be submitted by any
team member to project management. Project management will review all change requests and if
necessary, assign requests for in-depth analysis to an appropriate project team member or other
resource if necessary. After logging the change request, project management will submit the
change request to the project governance structure (e.g., steering committee, project sponsor,
etc.) for approval.

In lieu of a diagram or flowchart of the change control process, the following table summarizes the
proposed change control process and procedures for this project:

Activity &
Activity Description Timing
Responsibility

Document  Document change requests by completing the Change Ongoing, as

Request Form encountered
Any project team
member  Evaluate the cause for the change and the impact of
the change on the project, as applicable, to benefits
and costs, impact on deliverables and timing, staffing
needs, work approach, and, user and management
participation
 Make and document a recommendation for processing
the change request

Log  Log the change requests as received Ongoing, as

encountered
Project Management

Approve/Reject  Review change request documentation and When change

recommendation with stakeholders directly impacted requests are
Project Management
by the proposed change. Explicit agreement to the submitted
and/or Project
recommendation should be obtained from the relevant
Governance
stakeholders and the Project Sponsor
 Approval of a change request signifies agreement to a
change in overall costs, scope, deliverables,
functionality or work plan, etc, as defined in the change
request form
 If the change recommendation is rejected, the change
request can be re-negotiated if possible, or withdrawn if
it is agreed to be non-essential. In this case the reasons

Proposal for Cognos Implementation – November 2005 13

Statement of Work Elements

Activity &
Activity Description Timing
Responsibility

will be documented in the Change Request Form

Update  As necessary, revise project documentation (e.g., As required

workplans, budgets, charter/scope statement, terms of
Project Management
reference, contract, etc.) to reflect the impact of the
approved change

Sign-Off  Upon completion of the requested change, sign-off the As required

change request form acknowledging that the change
Project Management
has been implemented as recommended

Resource Management
The following are key activities that will be undertaken to ensure that the project team is working
effectively, and that individual members are contributing to the project goals and performing as
expected.

 Regularly assess team dynamics through group feedback, external feedback, or through
one on one communication with team members.
 Identify areas for of team environment improvement and define appropriate activities to
realize desired changes.
 Incorporate or remove project resources based on changes in skill set requirements
according to predefined change control process.
 Identify implications of resource changes to other aspects of the project plan such as,
project budget and project workplan.
 Provide regular performance feedback.
 Delegate, motivate, and mentor team members.

Schedule Management
Project management will regularly review the progress of the project against the workplan, identify
issues as they arise and resolve issues according to the predefined management and control
process.

An assessment of progress against the workplan will be conducted at regular intervals. The
frequency of review is dependent on the overall project duration and proximity of critical project
milestones. The following are the key activities:

 Review progress against workplan by collaborating with the project team leads
 Identify and analyze variances by collaborating with the project team leads
 Identify implications to project schedule and other aspects of the plan (e.g. budget, risks,
resources, etc.).
 Address unresolved workplan issues according to the predefined change control process.

As result, project management will update and communicate the overall project schedule, status
reports and any change requests as appropriate.

Proposal for Cognos Implementation – November 2005 14

Statement of Work Elements

Express Methodology Threads – Process Redesign and

Package Implementation Thread
The purpose of the Process Redesign and Package Implementation thread is to describe the major
clusters of work related to the business processes involved in the implementation. This thread is
designed to scope the process changes, the model requirements and the organizational changes
and then to configure Cognos Planning and Cognos BI in order to obtain benefits envisaged
through the business process changes.

In addition, we will leverage our DeloitteAdvantage Sustainment templates to develop the future
state processes to support both process and application or technology production issues.

Forecast Process Re-engineering

We will also leverage our experiences and Process Accelerators to support Client X to implement
leading practice Forecasting processes.

To support our delivery of the most appropriate budgeting,

planning and forecasting solutions for our clients, our Finance
and Performance Management Team maintains a close watch
on emerging leading practices. With every client, we focus on
aligning the new planning, reporting and analytics capabilities
with the clients’ unique needs and specific business
objectives. We help organizations expand and improve their
analytical decision-making capability to make better and
faster business decisions.

Many of our clients have obtained significant tangible benefits

from redesigning their budgeting, planning and forecasting
processes, and implementing “next-generation” tools.

Leading Planning Practices Experience

and Tools
Deloitte Consulting delivers leading planning process visions
and detailed process design capabilities and supporting tools.
We work closely with our clients to implement the desired
solution over sequential deployment releases – paying close attention to the critical dimensions for
successful implementation.

Standardization
 Standard planning calendar
 Planning guidelines issued with Planning templates
 Standard planning reports at Corporate and Business
Unit level
 Standard set of metric definitions and natural
accounts for Planning purposes
 Controlled global assumptions

Express Methodology Threads – Information Technology

Thread
The purpose of the Information Technology thread is to build the server and networking
infrastructure needed to support the application development and production environments. Our
proposed approach is to leverage Client X technology resources to be responsible for the
procurement and installation of the hardware environment. We will also plan to leverage Client X

Proposal for Cognos Implementation – November 2005 15

Statement of Work Elements

technology resources on a part-time basis (as needed) to support an adequate development and
production environment that supports appropriate up-time and for this project. From time to time,
our Deloitte consultants may work off-site and therefore we will require appropriate remote access
to the development environment.

We will also leverage Cognos Inc. resources to develop, document technology architecture and to
provide appropriate server specifications. We will work with Cognos Inc. to understand / confirm
the Client X technology and database standards so that Cognos may provide appropriate
recommendations.

The hardware specifications will be based on the Release 1 requirements and future release high-
level requirements which we will jointly define in workshops during the Planning and Scoping
Phase (for the Development environment) and during the Visioning and Design Phase for the
Production Environment.

We will leverage Cognos Inc. consultants to support the installation of both the development and
production environment and to support the migration from the development to the Production
Environment.

Express Methodology Threads – Process and Systems Integrity

This thread addresses the security, data integrity and process integrity considerations in order to
implement the new business processes and related systems in a secure, reliable environment.

We will leverage Cognos resources for the overall design and configuration of the Cognos security
architecture and we will utilize DeloitteAdvantage security configuration accelerators (as needed)
to configure the Cognos security solution.

We will provide knowledge transfer to the Client X subject matter experts that will assist in
defining the overall business and technology security requirements to meet the Release 1
objectives.

The data integrity elements of this thread focus on the overall dataflows into, though-out and out
of the Cognos Enterprise Planning solution. The Deloitte Advantage Test Scripts for Cognos
Planning provide an overall framework for testing data flows throughout the system.

We understand that a data warehouse will not be in scope for Release 1 and therefore we plan to
design and develop file transfer processes and controls that will enable system to system transfer
of data through either flat files or other agreed data transfer standards.

The Project Deliverables section of our proposal includes responsibilities for data transfers between
the in-scope source and target systems.

Proposal for Cognos Implementation – November 2005 16

Statement of Work Elements

Express Methodology Threads – Change Leadership

The purpose of the Change Leadership thread is to ensure that people understand the need for
change and have the right capabilities

Systems implementation and business process redesign initiatives typically involve significant
change. Achieving the anticipated benefits of these new systems and processes relies almost
exclusively on the acceptance of the proposed changes by key stakeholders.

When projects fail to fully achieve their goals, the cause of failure most often is inadequate
attention to change leadership issues, not the technology or process aspects of the project. As
illustrated in the following diagram, when a change is first introduced it inevitably has a negative
impact on productivity, morale, and commitment. However, taking action to manage change using
a programmatic approach can have a dramatically positive impact, turning around the initial
negative impact and supporting an overall improvement in productivity, morale and commitment,
and ultimately contributing significantly to the success of the project.

Change is a process which, if not managed realistically, can create chaos, conflicts, and
operational constraints.
However, when led
Managed Change
effectively, change is a
Change I ntroduction process which can
facilitate creativity,
communications,
PRODUCTI VI TY/ cooperation, and
MORALE/
COMMI TMENT appropriate solutions.

Building on the change

readiness assessment,
Deloitte’s extensive
experience with projects
like the one Client X is
Unmanaged Change
considering suggests
there are three streams
TI ME
of change leadership
work to concentrate on:

 Leadership Alignment: Defining, developing and supporting the styles, actions and
behaviors needed to lead a large-scale change program;
 Communication: Involving stakeholder and audience groups in the right way at the right
time during the project to ensure its success; and,
 Training: Identifying and executing a training program that ensures users have the skills
and knowledge that they need to work successfully with the new systems and processes.

Change Readiness Assessment

A key step in developing and refining the change leadership program is conducting a Change
Readiness Assessment (CRA). This assessment is typically undertaken during the initial phase of
the project with periodic reassessments throughout the project to assess progress. The
assessment is undertaken to understand people’s readiness and capacity for the kind of changes
implied by the project. The specific objectives of a change readiness assessment are as follows:

 To identify key groups of impacted employees and management, i.e., stakeholders;

 To establish a baseline of stakeholder perceptions of change and the project’s benefits and
opportunities;
 To analyze and clarify the key concerns and challenges to change with each stakeholder
group; and,

Proposal for Cognos Implementation – November 2005 17

Statement of Work Elements

 To document communication and enrollment activities in the form of a change leadership

plan that can be executed and monitored throughout the remainder of the project.

It is important to note that an initial CRA sets a

Leadership Alignment
baseline of stakeholder perceptions and
understanding of the change required. It will be
Change necessary to re-assess these perceptions at
Readiness various points during the project to gauge how
Communication
Assessment
people’s understanding and readiness have
changed. These periodic re-measurements will
Training and Testing be valuable in refining the change leadership
strategy and plan as the project progresses.

Our proposed approach has embedded a CRA as a key part of the agenda for the project kick-off.
This part of the agenda will create an opportunity for a sizeable group of project stakeholders to
provide their feedback on the opportunities, challenges, benefits and concerns for the project.

Leadership Alignment
The activities in this stream of work are aimed at defining, developing and supporting the styles,
actions, and behaviors needed to lead a change program. The activities involve ensuring that
Client X leaders have a common understanding of the project’s objectives, challenges,
requirements and timeline. The activities include providing leaders, managers and supervisors
clear support and guidance around which actions they need to take individually and collectively to
demonstrate their commitment to the project. This stream of work also involves coaching
individuals and helping them learn how and when to initiate change and how to gain support for
change throughout the corporation. Leadership alignment activities will be documented in the
project’s change leadership plan.

It is important to recognize that the term ‘leaders’ refers not only to people who are leaders
because of their role and authority, but also to people throughout the organization who are
considered leaders, regardless of their position, because of their influence and/or popularity.

A number of outcomes are anticipated as a result of the activities in this work stream:

 Leaders are communicating consistent and accurate messages about the project
throughout Client X during all phases;
 Leaders are visible and active in supporting the project and are involved in project
activities; and,
 Leaders are raising issues and participating in resolving them as well as participating in
follow-up activities. They are engaged.

Communication
Effective communication is one of the foundations of a successful change leadership program.
Consistent, timely and straightforward communication enables stakeholders to understand the
change imperative, the vision of the future and their role in helping create that future.
Communication is critical to the success of any project that will result in changes to technology,
jobs, and/or organizational structure.

Deloitte’s approach to communication integrates leadership alignment with communication

activities into what we call a change leadership plan. Our experience has shown that an emphasis
on communication achieves the objective of informing stakeholders about the project. However,
ensuring stakeholders are involved and are eventually engaged in the project typically requires
more than effective communication. Leadership alignment activities are used to complement
planned communication activities helping to enroll key stakeholders and get them engaged in the
project’s success.

Proposal for Cognos Implementation – November 2005 18

Statement of Work Elements

Stakeholder Analysis
Organizations maintain a complex web of relationships, both internally and externally. Identifying
the individuals and groups who comprise these relationships (i.e., the stakeholders) and
determining their interests in the project is an important early step in building a project change
leadership plan. Each stakeholder group is likely to have specific questions and concerns about the
project that will need to be addressed. How those questions and concerns are addressed and the
nature of messages from the project will vary from one stakeholder group to the next. The output
of the stakeholder analysis will be a running listing of unique stakeholder groups for whom the
project will plan various communication and leadership alignment activities targeted to each
stakeholder group in the listing.

Communications Planning
Development of the communications component of the change leadership plan will flow logically
from the identification of stakeholder groups and their questions and concerns. By definition,
stakeholder groups are unique with distinct communication needs and challenges. Different
stakeholder groups will likely require different communications and different media.
Communications will be tailored to address each audience’s needs.

The structure of the change leadership plan, intended to capture all of the project communication
and leadership alignment activities, should include the following components:

 Identification of each relevant stakeholder group;

 Identification of key messages. Note that messages will likely change as the project
progresses;
 Identification of mechanisms that will be used to communicate the key messages (e.g.,
memos, speeches, videos, newsletters, e-mail, Intranet, posters, etc.);
 Timing of communications (when it will happen and how often – messages are most
effective when they are consistent and repetitive);
 Accountability for both delivering messages and for making the communications happen
(e.g., who will deliver the speech as well as who will write it); and,
 Feedback mechanisms – messages will need refinement based on the feedback received
from stakeholders. It is also important to find ways to encourage that feedback.

Communication Principles
Effective change leadership plans are guided by fundamental communication principles:

 Messages should be linked to the strategic purpose of the project – to help establish an
understanding of the need for change, to keep people motivated and on-track during the
project, and to establish credibility around the project as a positive change for Client X;
 Communication should be accurate, realistic and honest. Don’t gloss over possible
negatives. This will help curb rumors and speculation. Reduce uncertainty by telling
stakeholders what you know, and what you don’t know;
 Communication should be proactive rather than reactive. Try to get the messages out to
the stakeholders before they ask about the information in the message;
 Messages should be repeated consistently through varying channels. Multiple, consistent
messages help people internalize the message and more clearly understand its meaning;
 Enroll stakeholders by specifying in the messages the importance of their roles in making
the change happen; and,
 Be conscious that stakeholders’ awareness, understanding and buy-in will change
throughout the project. Therefore, communications must be adaptive. Seeking feedback on
communications throughout the project should be undertaken to adjust the timing, tone,
frequency, format, etc. of the communications and maintain their effectiveness.

Proposal for Cognos Implementation – November 2005 19

Statement of Work Elements

A number of outcomes are anticipated as a result of the activities in this work stream:

 All stakeholder groups have an increased level of understanding of the project. They feel
informed;
 Key stakeholder groups can articulate the project goals and objectives to others. They feel
comfortable that their questions and concerns are being heard and addressed by the
project team. They feel that they have had the opportunity to participate in the project and
provide feedback. They are involved; and,
 The project team is hearing from Client X staff through a variety of mechanisms on a
regular basis to raise relevant issues and ask informed questions.

Express Methodology Threads – Training and Performance

Support
The main focus of this of the Training and Performance Support thread is to design and deliver
process and application change knowledge transfer and to develop methods and materials for
ongoing support of job performance.

End-user training materials will be finalized during the Implementation Phase. These materials will
then be used during training events to educate and prepare Client X’s Cognos Planning user
community. We plan to leverage DeloitteAdvantage Training material accelerators to provide a
framework and to support the development of the training materials.

We also plan to integrate both the process components and the application components in the
design and development of the training materials. Therefore, the application training consultant
and the process consultants will work collaboratively with one Client X resource to prepare
comprehensive training documentation that covers the scope of the project.

Deloitte Led Implementation - Resource Approach

Our 2005 Cognos Global SI status demonstrates to Client X that Deloitte Consulting not only has
Cognos Planning and Cognos BI experienced and accredited consultants but also a verifiable track
record of successfully delivering similar and more complex projects. The benefit to Client X is that
we will present a single cohesive team of resources that are experienced in both planning
transformations and system implementations. Our team is passionate about providing Client X with
quality and comprehensive process and technical documentation that will not only bridge the
process and technology aspects of the project but also serve to support successful knowledge
transfer to the Client X project team members.

Our resourcing approach includes leveraging Cognos resources for the Technology Architecture
deliverables and the Security deliverables. This enables Cognos resources to be on-site for the
majority of the project to support risk mitigation and it leverages the Cognos organization for the
most technical areas of the solution where Cognos intrinsically has deep knowledge and
experience to support the team from a technical perspective.

Proposal for Cognos Implementation – November 2005 20

Statement of Work Elements

This stacked bar chart illustrates the project effort distribution by organization and Express
Methodology Thread. The greatest focus for our joint teams will be in the process redesign and
package implementation Thread (includes process redesign, Cognos Planning and BI
development). Project management is the second greatest area of resource effort.

This wave chart illustrates the total consulting effort by phase relative to the anticipated total
Client X team member effort by phase. In summary, this project is resourced from a consulting
perspective to provide detail documentation and knowledge transfer to the Client X organization.
In our experience, clients that have supporting documentation are able to quickly learn,
understand and support the implemented solution. Those clients that don’t have detailed
documentation of their solution find themselves in a difficult situation and incur additional

Proposal for Cognos Implementation – November 2005 21

Statement of Work Elements

consulting costs to maintain and further enhance the system once in production.

Proposal for Cognos Implementation – November 2005 22

Statement of Work Elements

3. Project Schedule and Deliverables

For organizations similar in size and complexity to Client X, our experience with Cognos Planning
leading practices suggests an average implementation time through production of approximately
21 weeks plus 3 weeks of support and documentation wrap-up. Because Client X is already
conducting design sessions to determine future state processes, and building on Deloitte’s proven
project accelerators and methodology refined through our extensive engagement experience, we
believe the project can be rolled into production after 17 weeks, assuming Client X has completed
the future state high-level process and model designs prior to the onset of the engagement.

The following high-level schedule summarizes the proposed timeline for this project by the main
project phases:

The following chart summarizes the detail deliverables and organization responsibilities envisaged
in our project approach:

P = Prime responsibility to complete the deliverable

S = Support the prime (knowledge, content, input) to complete the deliverable
J = Joint responsibility to complete the deliverable
K = Recommended Client X Knowledge transfer opportunity from Deloitte or Cognos Consultants if Client X resources are
available

Proposal for Cognos Implementation – November 2005 23

Statement of Work Elements

Project Deliverables Client X Cognos Deloitte

Consulting
Project Management
Project Charter S P
Project Plan S P
Risk Management Plan S P
QA Plan S P
Weekly Status/Steering Committee Reports S S P
Process Redesign
Process Assessment S P
Leading Practices Gap Assessment S P
Draft High-Level Future State Process Documentation S P

Proposal for Cognos Implementation – November 2005 24

Statement of Work Elements

Project Deliverables Client X Cognos Deloitte

Consulting
Draft Future State Process Documentation S P
Draft Future State Planning Calendar S P
DeloitteAdvantage Sustainment Strategy J J
Future State Process Documentation S P
Future State Planning Calendar S P
DeloitteAdvantage Sustainment Plan J J
Acceptance Testing S P
Implement Sustainment Processes S P
Package Implementation- Planning (revenue, expense,
HC, compensation and consolidation models)
Model Scope and Cognos Package Scope S P
Dimensional structures, hierarchies and base calculation P
logic for in-scope Planning models
Cognos Planning Prototype for each in scope Planning model S P
DeloitteAdvantage Cognos Planning Model Architecture P
DeloitteAdvantage Cognos Planning Design Documentation K P
Model Construction K P
Model Testing Approach P S
DeloitteAdvantage Model Test Scripts P S
Model Testing J J
DeloitteAdvantage Issue Resolution J S J
DeloitteAdvantage System Administrator Documentation P

Project Deliverables Client X Cognos Deloitte

Consulting
Package Implementation - Reporting
Reports Assessment S P
Ad-hoc Reporting Assessment S P
Dimensional Structures for Reporting P
Report Designs and Technical Specifications S P
Report Development S P
Report Testing J J
Acceptance Testing P S
DeloitteAdvantage Technical Documentation P
DeloitteAdvantage Issue Resolution J S J
Framework Manager Model (FMM) Technical Designs K P

Proposal for Cognos Implementation – November 2005 25

Statement of Work Elements

Project Deliverables Client X Cognos Deloitte

Consulting
FMM Package Development K P
FMM Business Views Development K P
Ad-hoc Querying and Reporting Testing J J
Acceptance Testing P S
DeloitteAdvantage Technical Documentation P
Information Technology
Understand Infrastructure Technology Standards S P
Development Environment Sizing S P S
Development Environment Technical Architecture S P
Development Environment Installation S/K P
Development Environment Testing J J J
Development Environment Technical Documentation P
Production Environment Sizing S P S
Production Environment Technical Architecture S P
Development Environment Support P S
Production Environment Installation S/K P
Production Environment Technical Documentation P
Production Environment Tuning J J J
Technical Migration Planning S/K P S
Technical Migration Testing S/K P S
Technical Migration Development to Production S/K P S
Production Performance and Stress Testing P S S
Acceptance Testing P S S
Production Environment Support P

Project Activities Client X Cognos Deloitte

Consulting
Process and Systems Integrity (Data Integration)
Define Interface and ETL Standards P
Inbound Cognos data load specifications for in-scope P
systems (Oracle Financial, VFM)
Inbound Cognos data load routines for in-scope systems K P
(Oracle Financial, VFM)
Inbound source system data load specifications for in-scope P
systems (Oracle Financial, Metifiy)
Inbound source system data load routines for in-scope P
systems (Oracle Financial, Metify)
Outbound Cognos data files for Oracle Financial and Metify K P
Outbound source system data files for Cognos Enterprise P
Planning (Oracle, VFM)

Proposal for Cognos Implementation – November 2005 26

Statement of Work Elements

Project Activities Client X Cognos Deloitte

Consulting
End to End Testing (Models, Interfaces, Reports, Queries) J J
Cognos Enterprise Planning Data Integration Administrator P
Documentation
Process and Systems Integrity (Security)
Understand Client X Application Security Standards S P
Production Environment Security Strategy S P
Planning and Reporting Security Requirements P
Populate DeloitteAdvantage Security Templates S/K P S
DeloitteAdvantage Security Test Scripts P S S
Test Security Configuration P S
Cutover Security Configuration S/K P
User Acceptance Testing P S S
Application Security Maintenance Documentation P
Change Leadership
Change Readiness Assessment S P
Communication Plan S P
Communications Plan Execution S P
Training & Performance Support
End User Training Analysis and Course Design S P
End User DeloitteAdvantage Training Materials S P
Training Materials Acceptance Testing P S
Train the Trainer P
End User Planning and Reporting Training Roll-out J J
End User Process Training J J
Go-Live Support J J

Please refer to the Appendix – Project Plan by Phase, Milestone and Deliverable for a high level
plan of the project based on our proprietary Express™ For Cognos CPM Methodology for Client X.

Proposal for Cognos Implementation – November 2005 27

Statement of Work Elements

4. Project Team
We believe a key element of success on the project will be the effective cooperation between the
Deloitte Consulting and Client X team, and we have demonstrated this on numerous successful
prior joint projects. Our collaborative approach involves our team and your staff in deliberations on
important decisions, making sure that all parties understand any possible interpretations, risks,
and applications of matters at hand. The table below describes the core team and subject matter
experts Deloitte Consulting proposes for the engagement.

The organizational chart and biographies below describe the key core team members, and subject
matter experts for the engagement:

Name Experience Project Responsibility

Core Team

Patricia Kloch Trish has 28 years of combined First point of contact for
Director management consulting and private industry Client X; management of
Deloitte Consulting LLP experience. For the past 20 years she has the engagement;
focused on consulting within finance assigning the right
organizations for some of the firm’s most resources as needed
significant clients across multiple industries,
including high tech manufacturing,
telecommunications, aerospace & defense,
energy, and consumer business. Her

Proposal for Cognos Implementation – November 2005 28

Statement of Work Elements

Name Experience Project Responsibility

experience includes strategy and business

process design across the breadth of
Integrated Performance Management areas
including financial, regulatory and
management reporting, performance
reporting, and planning & budgeting as well
as across the core finance processes process
improvement.

Nat D'Ercole Nat works with clients in North America to Day-to-day project
Senior Manager design and implement leading practice involvement and
Deloitte, Inc. consolidations and financial reporting, management; coordinate
planning, budgeting and forecasting, with Client X and Cognos
scorecards and analytical reporting that resources; Project
support the increasing pace and complexity Manager
of business. Nat has more than 14 years of
combined business experience in ERP,
business intelligence and performance
management package implementations, as
well as strategy and operations consulting.
His systems experience includes Cognos
ReportNet, Cognos Planning, Cognos Metrics
Manager, Cognos Controller, Cognos
Finance, Cognos Powerplay, Financial ERP
(SAP, PeopleSoft, Oracle, JD Edwards), and
ETL technologies.

Anthony J. D'Ugo Anthony is a manager in the Deloitte Cognos Cognos Planning Solution
Manager Corporate Performance Management Architect; Manage the
Deloitte, Inc. practice, and he is a Certified General Cognos Planning
Accountant with more than 10 years of implementation thread
experience implementing and designing and the Deloitte Cognos
information systems. Anthony’s primary accredited and
focus is Cognos implementations with a experienced Planning
strong emphasis on planning, business senior consultants and the
intelligence, process improvements, and Client X planning
system enhancements to meet client and resoureces
industry specific requirements. Anthony has
extensive experience in implementing
leading practice revenue and gross margin,
salary/headcount, expense, balance sheet
and cashflow models in various industries.
His systems experience and training include
Cognos Planning Architect, Cognos Planning
7.3, Cognos Business Intelligence Series
Products, Cognos Analytic Applications for
J.D. Edwards, and PeopleSoft/J.D. Edwards
Enterprise One.

Raul Lagman Raul is senior consultant in Deloitte’s Cognos Data Integration Lead;
Senior Consultant Corporate Performance Management work collaboratively with
Deloitte, Inc. Practice. Raul has over 8 years of experience Client X data integration
in consulting and implementation of team
Enterprise Applications in financial
institutions with a focus on systems
engineering, database administration and
ETL technologies. His technical certifications
include: include: MCSD (Microsoft Certified
Systems Developer), MCDBA (MCDBA:
Microsoft Certified Database Administrator),
MCSE (Microsoft Certified Systems Engineer)

Proposal for Cognos Implementation – November 2005 29

Statement of Work Elements

Name Experience Project Responsibility

and. His Cognos certifications and

experience include: Cognos 8 BI pre-release
partner education and implementation
Cognos ReportNet 1.0 - Metadata Modeling,
Cognos ReportNet 1.0 - Advanced Report
Authoring, Cognos ReportNet 1.0 -
Intermediate Report Authoring, PowerPlay
Series 7 - PowerPlay Exploration and Report
Building, PowerPlay Series 7 - PowerPlay
Transformer OLAP Modeling, PowerPlay
Series 7 Enterprise Server Administration,
Series 7 Decision Stream for Data
Warehouse Developers, Contributor 7.3
integration with Cognos BI and third party
systems

Denis Leclerc Denis is the Cognos Business Intelligence Reporting Lead and
Manager practice lead for Deloitte, Inc. and is a manage the Deloitte and
Deloitte, Inc. manager in Deloitte, Inc.’s Cognos Corporate Client X reporting
Performance Management practice. Denis resources on the project
has more than seven years of experience
advising and assisting clients in
implementing Cognos CPM applications,
including clients in the financial services
industry. Denis combines deep technical,
business, and accounting expertise to
enable companies to streamline their
planning, budgeting, consolidation and
reporting processes. His Cognos system
experience includes Cognos: Access
manager, Cognos Consolidations, Enterprise
Planning, Impromptu, IWR, Power Play,
ReportNet, Cognos Controller, and Cognos
series 8 BI. His Cognos training and
certification includes Cognos Analytical
Applications for JDE – Installation and
Implementation; Certified Impromptu
Administrator version 5.0-6.0; Cognos
Finance Basic Reporting 5.0; Cognos Finance
Basic Administration 5.0; Cognos Finance
Input Techniques 5.0; Cognos Finance
Advanced Reporting 5.0; Cognos Access
Manager Administration; Cognos Finance
Basic Reporting 5.1; Cognos Finance Basic
Administration 5.1; Cognos Finance Input
Techniques 5.1; Cognos Finance Advanced
Reporting 5.1; Cognos Planning -Partners
Certification Version 7.1; Cognos ReportNet
FastTrack Version 1.1; and Cognos-8 Beta
version, Select Partners.

Lisa Heacock More than 11 years of experience including a Process Lead

Manager focus on financial planning and analysis and
Deloitte Consulting LLP Deloitte Consulting's Strategy & Operations
with focus in CFO Services. Industry skills
include budgeting; forecasting; long-range
planning; general/advanced accounting
including monthly close process;
building/implementing general ledgers,
accounting systems and financial reporting
tools; as well as development and

Proposal for Cognos Implementation – November 2005 30

Statement of Work Elements

Name Experience Project Responsibility

implementation of internal controls and

policies and procedures, including Sarbanes-
Oxley. Her experience includes the financial
services industry. In addition Lisa was an
assistant controller for a major Bay Area
organization prior to joining our consultancy.

Adam Grant Adam has eight years of consulting and Change Management Lead
Senior Consultant project management experience as an
Deloitte Consulting LLP organization change and strategy
consultant. His most substantial work
experience is in managing enterprise
adoption of new technologies and building
Organization Change & Transformation,
Sales & Marketing, and HR & Performance
strategies as part of corporate growth
initiatives. Adam has worked most
extensively with clients in high technology,
health care, consumer products, and
financial services industries.Products,
Cognos Analytic Applications for J.D.
Edwards, and PeopleSoft/J.D. Edwards
Enterprise One.

Quality Assurance and Subject Matter Advisors

Jennifer Steinmann Jennifer is the lead consulting partner for the Quality Assurance
Quality Assurance Principal Client X relationship. With over 12 years of
Deloitte Consulting LLP experience in Payments and Procure-to-Pay
expertise, she has led numerous projects for
Client X and has acted as a subject matter
expert on many of our Client X Regional
efforts. Jennifer is also a frequent speaker
on Procure-to-Pay strategies at industry
conferences. Jennifer will be responsible for
quality assurance on this project.

Erik Stone Erik, a principal in Deloitte Consulting’s Subject Matter Advisor

Principal Oracle practice, has 20 years of experience
Deloitte Consulting LLP providing assessment, strategy, selection,
and implementation projects to help clients
manage risks, achieve operational
excellence, and create competitive
advantage. The range of consulting services
that Erik provides includes lean, rapid ERP
implementation projects for middle market
companies; large complex ERP
implementation projects for Fortune 500
companies; business process
redesign/reengineering focused on
operational efficiency, effectiveness, quality,
and control; system enabled process
improvement and technology
implementation, particularly within finance
operations, planning and analytics; change
management solutions designed to help
organizations understand and prepare for
organization and process changes related to
new technology; and Information Technology
operational and organizational
analysis/assessment and strategy

Proposal for Cognos Implementation – November 2005 31

Statement of Work Elements

Name Experience Project Responsibility

development.

Steve Herczeg Steve is a Senior Manager in Deloitte Subject Matter Advisor

Senior Manager Consulting’s Financial Services Technology
Deloitte Consulting LLP Practice. He has 20 years of experience with
finance operations, Business Process Design,
IT Strategy, and Implementation of large
package and custom development systems
in the credit card and transaction systems
arena. He dedicates most of his time to the
Client X account and has significant
knowledge of the organization and its
systems.

Yemaya Ponder Yemaya has 18 years of consulting Subject Matter Advisor

Senior Manager experience in the financial services industry.
Deloitte Consulting LLP Projects include in-depth experience in
costing analysis and chargeback
mechanisms, profitability measurement,
banking and mutual fund transfer agency
operations, large-scale system
implementations, and Sarbanes-Oxley
readiness work. She has worked extensively
in both the property and casualty insurance
and retail banking industries prior to joining
Deloitte Consulting. Her functional
experience includes commercial insurance
risk management, and sales and marketing
of financial products and services.

In addition to the core team, Deloitte & Touche Partner Anna Mok, in her role as advisory partner,
will seek formal and informal feedback from Client X on services for this engagement. She will set
performance expectations with you, obtain your feedback and evaluations, and incorporate your
comments to achieve continuous service improvement. We take your feedback to heart, and it
becomes the basis for how we work with you moving forward.

Qualifications and Experience

Deloitte Consulting believes the selected vendor will require a range of specific qualifications and
experience in order to complete a comprehensive review of Client X’s network strategy. Deloitte
Consulting’s deep experience positions us to bring Client X the right solutions in all the critical
areas required for success on this project.

Deloitte Consulting also brings the benefit of holistic knowledge and understanding of Client X,
supported by experience gained from more than 60 successful projects carried out by the Deloitte
US Firm for Client X. Please refer to Appendix – Client X Projects for the project overviews.

Proposal for Cognos Implementation – November 2005 32

Statement of Work Elements

5. Why Deloitte Consulting?

Deloitte Consulting brings specific qualities and skills to Client X that translate into specific
benefits.

Deloitte Consulting’s values – and reputation – are founded on a strong philosophy that our clients
are served by professional advisors who put objectivity above all else. Our clients expect us to
provide ideas and solutions that meet their business needs first, not our own service offerings or
financial interests. We are open and frank with our clients at all stages of a relationship and
commit to raising issues proactively as well as offering alternative solutions.

By combining the talents of Deloitte Consulting and Cognos there is no other team today that can
offer the same comprehensive range of services to deliver a successful Cognos Corporate
Performance Management solution to Client X. In addition to our CPM suite implementation
capabilities, our consulting practice brings change management advisory, technology integration,
business intelligence advisory and delivery capabilities and deep project management and
planning process skills.

As the Cognos 2005 Global SI and Cognos Platinum Partner, Deloitte Consulting has access to and
support from Cognos professional services for Cognos Inc. project resources on the Client X project
as required. Cognos resources have worked with Deloitte Consulting on other recent similar
projects such as Zimmer and Aviva. Cognos resources provide access to a broader network of
Cognos professionals for technical issue resolution. Deloitte Consulting has two dedicated Cognos
Inc alliance managers to manage our Global alliance relationship. The Cognos alliance managers
support the project team by escalating priority project issues for immediate resolution.

Deloitte Consulting Advantage and Benefits to Client X

 The team proposed to serve Client X on this important

assignment has deep experience in implementing Cognos
Corporate Performance Management suite and other key
Cognos technologies
 Experienced in designing and implementing leading practice
forecasting planning models using Cognos technologies
Deep Cognos CPM expertise
 A tailored approach designed to quickly move through Design
while still establishing strong project control
 Proven and tailored Express implementation methodology
 Comprehensive library of Deloitte Advantage implementation
accelerators for Cognos Planning

 Deloitte led implementation with Cognos Inc. consultants

responsible only for the most technical aspects of the solution
 Global Systems Integrator for 2005 as selected by Cognos,
Platinum Consulting Partner and Charter Member of Cognos'
Global Partner program
 Ability to leverage Cognos Innovation Center blueprints for
Collaborative relationship Visioning and Design purposes
with Cognos
 Access to the highest level of technical support at Cognos
through two dedicated alliance managers for Deloitte
 Accredited Cognos solution provider
 Deloitte is also an authorized Cognos Planning education
partner. Our resource provides Cognos customers with both
Public and on-site tailored Cognos Planning education courses.

Proposal for Cognos Implementation – November 2005 33

Statement of Work Elements

Deloitte Consulting Advantage and Benefits to Client X

 Start-to-finish project delivery experience and capability

 Extensive planning, budgeting & forecasting business process
and leading practice thought leadership
 Fully-integrated project management approach and tools with
our Cognos Corporate Performance Management Express
Proven project delivery implementation methodology
capability  Focused attention on risk, issue and change management as
an integral component of our approach
 Dedicated effort towards stakeholder communications and
enrolment
 Embedded project activities and deliverables to facilitate
knowledge transfer to Client X project team members

 Local Partner assigned to monitor project progress and overall

delivery quality
 "Next door" access to Deloitte resources
Short-term focus and long-
term support  Single point of contact for project command and control, issue
escalation and resolution and commercial arrangements
 Willingness to partner with Client X to share risk and take
ownership for project success

 Competitive rates that reflect team member experience and

allow Client X to leverage more experienced staff

 Strong local staffing content, and the ability to source

Flexible commercial terms
additional local skills for other needs if they arise such that
travel can be minimized and continued support more readily
available

 Numerous successful projects for Client X

 Numerous successful projects for other credit cards/payments
and financial services firms in North America
 Hundreds of Partners and Directors dedicated to the financial
Deep credit cards/payments services sector globally
and financial services  Dedicated lead client service partners focused on providing
industry expertise quality service to Client X
 Extensive industry-specific thought leadership and financial
and management accounting expertise
 Financial services-specific implementation and value-based
tools

By selecting Deloitte Consulting, this important project will benefit from our collaborative style,
lessons learned, implementation accelerators, Planning and Business Intelligence experience and
Planning and Reporting leading practices. We believe that each of these elements are critical
ingredients to deliver the maximum value to Client X and will contribute to the project’s success.

Proposal for Cognos Implementation – November 2005 34

Statement of Work Elements

6. Our Qualifications

Halliburton Energy Services – Planning, Budgeting, and Reporting

Overview Halliburton is one of the world's largest providers of products and services to
the oil and gas industries. Halliburton has annual revenues of approximately
$13 billion and operates in over 95 countries.

Project Deliver a world-class planning, budgeting, and reporting process for

Objective Halliburton Energy Services (HES). The timeline for the project was three
years. Phase 1 started in October 2002 and was complete in October 2003.
The main success factors were defined as:
 Improve the communication of performance throughout the business by
providing standard monthly reporting to 2,000 users in all HES locations
in more than 95 countries
 Improve the accuracy of the Halliburton forecast by implementing a
planning tool in all countries that would enable business unit managers to
re-forecast the plan monthly, based on the latest actual results
 Reduce the time that end-users spend on planning, while increasing the
frequency of the planning process
 Promote accountability and ownership of the forecasts by adopting a
process that requires sign-off of the plan at various levels within the
organization
 Enable forecasting of revenue, direct costs, capital spend, working
capital, and allocations of central costs to product lines

Scope and Process Design – An objective of the project was to deliver a standard
Challenges process for planning across the globe and make the process easier for the
end-users. With many different businesses involved, designing and obtaining
consensus on a standard process required significant effort.
Change Management – With a large number of users located all over the
globe, managing effective communication with the user community was
critical and obtaining sign-off on the new designs and roll-out training
required attention.
Technology – Halliburton has global operations in countries where network
connections and bandwidth was poor.
Data Migration – A number of reporting solutions and data warehouses
already existed at Halliburton. The transfer to a new source required
additional interfaces and data validation.

Results Project Phases – Process Review & Software Selection

Deloitte & Touche was engaged by the Halliburton to help with the Phase 1
of the project. The first objective was to conduct an analysis of the planning
process at Halliburton and understand the client’s requirements. This was
achieved through a number of workshops run by the Deloitte & Touche
team.
Once the process was understood, the next critical milestone was the
selection of a software vendor to partner with Halliburton. Deloitte & Touche
helped the client select a shortlist of vendors and then helped manage the
selection process. A significant aspect of the selection testing was a
demonstration that the software could work in Halliburton’s environment.
The chosen vendor was Cognos.
Project Phases – Implementation

Proposal for Cognos Implementation – November 2005 35

Statement of Work Elements

Once the software vendor was selected, the main implementation effort
commenced at the beginning of January 2003. The Deloitte & Touche team
was made up of local industry (oil and gas) experts from Houston and an
experienced Cognos team sourced from the United States and the United
Kingdom. The Halliburton team included representatives from the central
planning team and operational managers responsible for each of the
planning processes. The Halliburton process owners worked closely with the
Deloitte & Touche process leads.
The implementation phase was carried out based on the Deloitte & Touche’s
Express methodology.
A key feature of the methodology involves understanding business
requirements for each model, visioning the future state and detail design
documentation of the future state models, including a prototype of the
screens to demonstrate to process owners how the software would be used.
In addition to a number of informal demonstrations, the project team had
two formal rounds of conference room pilots (CRP), carried out using Web
technology to allow participation from process owners globally. Feedback
from these sessions was included in the design documentation to determine
that the final solution had global support.
Project Phases – Roll-out
A train-the-trainer approach was adopted with project team members
traveling to about 15 key countries to train local representatives. The
training sessions delivered in person and recorded, made available on the
Halliburton intranet planning portal for end-user access.
The system went live to the full user community around the world at the
beginning of September for the input of the 2004 plan.
Deloitte & Touche and Halliburton also worked together on subsequent
releases of the planning model to address greater planning process
integration, such as tops–down planning and the operational models, as well
as other capabilities.

Proposal for Cognos Implementation – November 2005 36

Statement of Work Elements

Cognos Strategic Forecasting Model Project - Cognos Enterprise Planning and

PowerPlay Implementation

Overview A large international energy provider was having trouble satisfying board
and government reporting requirements.

Project The large international energy provider required help with the selection of a
Objective new platform to develop a strategic budgeting, forecasting, and reporting
solution to satisfy board and government reporting requirements.

Scope and Seventeen platforms were considered against a weighted set of criteria. Only
Challenges three could make it to the short list. The three chosen were Cognos
Enterprise Planning, Hyperion Planning, and Oracle Analyser. The Cognos
product was chosen, and Deloitte Consulting developed a comprehensive
business case for the subsequent implementation.

Results The solution developed included the Analyst and Contributor components of
Cognos Enterprise Planning and the use of Cognos PowerPlay for reporting
purposes. The model was developed and deployed on a four-tier Web
architecture.
Deloitte Consulting assumed a number of roles on the implementation team
and was responsible for the following activities:
 All aspects of project management
 Change management
 Assisting with design specification
 Assisting with the build of the new model in conjunction with client and
Cognos team members
 Deploying the model to key users from corporate and the business units
 Preparing procedure manuals
 Developing user and administrator training
 Training of key users
The project was successfully delivered on time, under budget, and to a high
degree of quality. Deloitte Consulting has also been requested to participate
in two follow-on Cognos Enterprise Planning projects for the retail business
unit and treasury.

Proposal for Cognos Implementation – November 2005 37

Statement of Work Elements

Aviva Insurance

Overview Aviva is the world's sixth-largest insurance group and the biggest in the UK.
It is one of the leading providers of life and pensions products to Europe and
has substantial businesses elsewhere around the world.

Project Aviva Insurance needed to replace spreadsheet intensive environment with

Objective driver-based models for under-writing, salary, and expenses.. It lacked
version control and alignment of business drivers, and ultimately, it needed
to bring the planning process ownership to the planning department.

Scope and The scope of this project included exporting actuals from Oracle Financials to
Challenges Cognos Planning and importing budget data back into Oracle Financials.
To succeed, teams must:
 Understand process challenges first and then understand user
requirements and needs
 Build knowledge transfer into the project plan
 Get executive buy-in and support
 Develop a multi-year roadmap
 Accurately estimate training needs
 View the integrator as a partner — you are in it together
 Change management will guide success: Communicate, Communicate,
Communicate

Results The following capabilities have been implemented:

 Underwriting model; Salary and headcount planning model; Capital
Expenditures/Depreciation projection; Allocations models; Income
statement and summary metrics; Driver-based planning
 Flexibility to have different rules for different business units
 Scenario Modeling, including flexibility to compare different potential
corporate hierarchies
 Workflow functionality to track plan submissions and approvals
 Upload to Oracle GL for Variance Reporting

Proposal for Cognos Implementation – November 2005 38

Statement of Work Elements

Zimmer

Overview Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer is the

worldwide #1 pure-play orthopaedic leader in designing, developing,
manufacturing, and marketing reconstructive and spinal implants, trauma,
and related orthopaedic surgical products. Zimmer has operations in more
than 24 countries around the world and sells products in more than 100
countries.

Project Zimmer had very limited budgeting capabilities due to a spreadsheet and
Objective resource intensive budget environment. It needed more control and
flexibility over assumptions, as well as more plan analysis capabilities.
Zimmer also needed to replace its global spreadsheet planning environment
with common Cognos planning engine and standard models. The scope of
this project also included developing a data mart for transforming actuals for
planning purposes and developing Planning reports using Cognos Business
Intelligence applications.

Scope and The scope of this project also included developing a data mart for
Challenges transforming actuals for planning purposes and developing Planning reports
using Cognos Business Intelligence applications. The project also included
developing a data mart for transforming actuals for planning purposes and
developing planning reports using Cognos Business Intelligence applications.
To success, teams must:
 Contain project scope
 Build knowledge transfer into the work plan
 Involve business leads (global representation) in the overall design of the
solution
 Invest time to cleanse data and planning hierarchies, making the
transition a much smoother one

Results The following capabilities have been implemented:

 Sales, gross margin, operating expenses and capital, headcount/salary,
balance sheet, profit and loss statements, and GL Mapping
 Common global planning chart of accounts
 Unified planning data mart
 Automated data transformation
 Multi-currency model capabilities (local and reporting)
 Plan reporting using Cognos Business Intelligence applications

Proposal for Cognos Implementation – November 2005 39

Statement of Work Elements

7. Project Assumptions
Deloitte services, staffing, timeline, deliverables, professional fees and expenses committed in this
Proposal are based on the following assumptions and expectations. Client X and Deloitte will
evaluate the applicability and effect of any change in these assumptions or expectations during
the Scoping and Planning Phase. If any changes are required we will jointly determine impact to
scope and pricing.

1. No significant organizational change activities will occur during the project e.g. either
significant turnover of staff on the project or mergers/acquisitions.

2. All customizations are deemed out of scope - it is assumed that the standard Cognos
application functionality meets Client X requirements.

3. Several key factors will drive higher or lower effort as outlined in our resource plan:

a. Client X will arrive at an agreed redesign of the planning solution as defined by

the project schedule
b. Poor data quality/integrity will require data cleansing which has not been
scoped within our Cognos solution proposal
c. Migration of more than 1 year of historical data will lengthen our proposed
project timeline for testing/reconciliation
d. The number of interfaces and number of sources required could increase the
assumed complexity of the Cognos solution
e. The availability of Client X resources to support model and reporting design
workshops and make timely decisions according to the project schedule
4. The Client X project team members, management, and sponsor (as outlined in this
proposal) will be actively engaged in working directly with the Deloitte team members to
achieve the goals and objectives of the project. The requirements, design, source system
interfaces, infrastructure installation and acceptance testing of the solution will require
active Client X participation.

5. Decisions relating to the project can be made promptly, consistent with the project
schedule, with the Steering Committee having the authority to make timely decisions on all
key issues relating to the project.

6. Client X will provide adequate work space and facilities for the Deloitte project team to
work alongside Client X staff involved in this project, including telephones, Client X network
access, printers, etc. Work will be performed primarily in City X, California. The Deloitte
team may periodically work at Deloitte offices for deliverable creation, administration and
other activities.

7. The development environment for the Cognos solution will be fully installed and
functioning by December 23rd, 2005.

8. The production environment for the Cognos solution will be fully installed by no later than
Feb 24, 2006.

9. Client X will provide a stable technical environment, an environment that does not cause
excessive delay (defined by 90% application up time during normal working hours) or
disruption in development work, required for the duration of the project schedule.

Proposal for Cognos Implementation – November 2005 40

Statement of Work Elements

10. Client X will complete the physical site preparation for equipment to be installed and also
provide database server, file server, and workstations hardware and software, prior to the
start of the Visioning and Design Phase.

11. Client X will provide access to the development environment (remote and onsite) for the
project team as required to maintain the project schedule.

12. Client X is responsible for systems maintenance, backup, recovery, and disaster recovery.

13. Client X is responsible for future upgrade/release of the Cognos solution.

14. Deloitte is not responsible for software issues or bugs that we encounter during the
Construction Phase of the project. We will work proactively, to escalate issues for priority
resolution through our DeloitteAdvantage Issue Escalation process. From time to time,
such issues or bugs may impact the project timelines and project costs.

15. The Client X Project Team will complete the required Cognos education courses through
Cognos public education. We are assuming the Client X project team resources will
complete Cognos Planning training by Dec 23, 2005 and the Client X project team
resources will complete the Cognos BI education training by January 30, 2006.

Proposal for Cognos Implementation – November 2005 41

Statement of Work Elements

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member
firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an
organization of member firms around the world devoted to excellence in providing
professional services and advice, focused on client service through a global strategy
executed locally in nearly 150 countries. With access to the deep intellectual capital of
120,000 people worldwide, Deloitte delivers services in four professional areas — audit,
tax, consulting, and financial advisory services — and serves more than one-half of the
world’s largest companies, as well as large national enterprises, public institutions,
locally important clients, and successful, fast-growing global growth companies.
Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory
and other reasons, certain member firms do not provide services in all four professional
areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its
member firms has any liability for each other’s acts or omissions. Each of the member
firms is a separate and independent legal entity operating under the names “Deloitte,”
“Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names.

In the U.S., Deloitte & Touche USA LLP is the member firm of Deloitte Touche
Tohmatsu, and services are provided by the subsidiaries of Deloitte & Touche USA LLP
(Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and their
subsidiaries) and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S.
member firm are among the nation’s leading professional services firms, providing
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information, please visit the U.S. member firm’s website at www.deloitte.com/us.

Proposal for Cognos Implementation – November 2005 42

Statement of Work Elements

© 2005 Deloitte Development LLC. All rights reserved.

Proposal for Cognos Implementation – November 2005 43