Enron Mail

Subject:Pilot Meeting
Date:Mon, 12 Feb 2001 19:45:00 -0800 (PST)

---------------------- Forwarded by Tracy Geaccone/GPGFIN/Enron on 02/12/20=
01 03:47 PM ---------------------------

Jennifer Reed@ECT
02/12/2001 03:27 PM
To:=09Bob Butts/GPGFIN/Enron@ENRON, George Wasaff/Enron@EnronXGate, Mark E =
Lindsey/GPGFIN/Enron@ENRON, Terrie Wheeler/GPGFIN/Enron@ENRON, Greek Rice/C=
orp/Enron@ENRON, Robert Johansen/ENRON@enronxgate, Jill Erwin/HOU/ECT@ECT, =
Mike Deville/HOU/ECT@ECT, Gary Peng/GPGFIN/Enron@ENRON, Gregory Adams/Corp/=
Enron@ENRON, Glenn Kobes/ENRON@enronXgate, Karen Choyce/Corp/Enron@ENRON, T=
erry West/Corp/Enron@ENRON, Stephen Schwarzbach/Corp/Enron@Enron, Patricia =
Shannon/HOU/ECT@ECT, Raul Maldonado/Corp/Enron@ENRON, Regina Hawley/GPGFIN/=
Enron@ENRON, Wes Colwell/HOU/ECT@ECT, Georgeanne Hodges/HOU/ECT@ECT, Laura =
E Scott/CAL/ECT@ECT, Jim Coffey/HOU/ECT@ECT, Greg Whiting/Corp/Enron@ENRON,=
Hope Vargas/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT, Susan Helton/HOU/ECT@=
ECT, Faith Killen/HOU/ECT@ECT, Karry Kendall/HOU/ECT@ECT, Carol Carter/HOU/=
ECT@ECT, Stephen Thatcher/Corp/Enron@Enron, Sarah Brown/HOU/ECT@ECT, Paula =
Harris/HOU/ECT@ECT, Edie Leschber/HOU/ECT@ECT, Lindsay Long/HOU/ECT@ECT, Ti=
ffany Miller/NA/Enron@ENRON, David Vandor/Corp/Enron@ENRON, Nadia A Rodrigu=
ez/NA/Enron@ENRON, Stephen Wolfe/HOU/ECT@ECT, Ricardo Guerra/Corp/Enron@ENR=
ON, Elaine Schield/Corp/Enron@ENRON, Brent A Price/HOU/ECT@ECT, Thomas Myer=
s/Enron@EnronXGate, Jeff E Smith/Enron@EnronXGate, Shilpa Kadakia/Enron@Enr=
onXGate, Angeles Beltri/Enron@EnronXGate, Scott Blackburn/Enron@EnronXGate,=
John Best/Enron@EnronXGate, Sayed Khoja/Enron@EnronXGate, Alisa Green/HOU/=
ECT@ECT, Patricia Anderson/Enron@EnronXGate, Kent Castleman/NA/Enron@Enron,=
Allen W Ueckert/Enron@EnronXGate, Darin Talley/Corp/Enron@ENRON, Rainier S=
Cockrell/HOU/ECT@ECT, Phillip Lord/Enron Communications@Enron Communicatio=
ns, Carolyn Barrett/Enron Communications@Enron Communications, Biren Kumar/=
Enron Communications@Enron Communications, Murthy Rao/Enron Communications@=
Enron Communications, Leo Paige/Enron Communications@Enron Communications, =
Wanda LaBaume/Enron Communications@Enron Communications, Madeline Chan/Enro=
n Communications@Enron Communications, Kevin Hughes/HOU/EES@EES, Wade Stubb=
lefield/HOU/EES@EES, Dana Lee/HOU/EES@EES, Wanda Curry/HOU/EES@EES, Steve F=
razier/HOU/EES@EES, Patrick Cagney/HOU/EES@EES, Mary Lynne Ruffer/HOU/EES@E=
ES, Kerry Roper/GPGFIN/Enron@ENRON, Michael S Galvan/HOU/ECT@ECT, Amy Spoed=
e/HOU/ECT@ECT, Brian Heinrich/HOU/ECT@ect, Kristin Armstrong/HOU/ECT@ECT, B=
ecky Pham/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Rod Hayslett/FGT/Enron@ENRON=
, James Saunders/FGT/Enron@ENRON, Rick Dietz/ET&S/Enron@ENRON, Tracy Geacco=
ne/GPGFIN/Enron@ENRON, John Cobb/FGT/Enron@ENRON, Bob Chandler/ET&S/Enron@E=
NRON, Harry Walters/ET&S/Enron@ENRON, david.mcellin@enron.com, James Weitek=
amp/GPGFIN/Enron@ENRON, Fernley Dyson/LON/ECT@ECT, Melissa Allen/LON/ECT@EC=
T, Stephen Wood/LON/ECT@ECT, Caroline Lothian/LON/ECT@ECT, Claire Wright/LO=
N/ECT@ECT, Niamh O'Regan/LON/ECT@ECT, Raewyn Perkins/LON/ECT@ECT, Mike Jord=
an/LON/ECT@ECT, Jeffrey E Sommers/Enron@EnronXGate, Agatha B Tran/Enron@Enr=
onXGate, Howard Selzer/Corp/Enron@ENRON, Jim Davoli/Corp/Enron@ENRON, Pamel=
a Rush/Corp/Enron@ENRON, Joe Darensbourg/Enron@EnronXGate, Allan Sommer/Cor=
p/Enron@Enron, Susan Bellinghausen/Enron@EnronXGate, Emitra Nelson/Enron@En=
ronXGate, Braden Sewell/Corp/Enron@ENRON, Lonnie Liu/Enron@EnronXGate, Mark=
Schmidt/Corp/Enron@ENRON, Kathy Kokas/Corp/Enron@ENRON, Shelly Michalk/Cor=
p/Enron@ENRON, Rick Boehm/Corp/Enron@ENRON, Andrew Lawrence/Enron@EnronXGat=
e, Brandee Sanborn/Corp/Enron@ENRON, Kathryn Schultea/HR/Corp/Enron@ENRON, =
Keith Marlow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mary Solmonson/Enron@Enro=
nXGate, John Keiser/FGT/Enron@ENRON
cc:=09Jan Johnson/GPGFIN/Enron@ENRON, Mark Frank/HOU/ECT@ECT=20

Subject:=09Pilot Meeting

There's a lot going on! We want to update you, and we want to invite you t=
o view a pilot of a financial data warehouse. The pilot shows cost reporti=
ng using a small sample of real data (see below for more description). Her=
e's the schedule to view the pilot. Please contact Jennifer Reed at x39406=
to RSVP, so we'll know if we need to schedule more sessions.

Tues 2/20 1:00-2:30pm =09=09EB24C2=09BU reps=20
Wed 2/21 9:00-10:30am=09=09EB30C2=09Videoconference for Europe
Wed 2/21 1:00-2:30pm =09=09EB24C2=09All
Thurs 2/22 10:00-11:30am=09EB48C2=09All
Thurs 2/22 1:00-2:30pm =09=09EB24C2=09All
Fri 2/23 10:00-11:30am=09=09EB24C2=09All

Our next major deliverable =3D =09a charter, workplan and budget will be pr=
esented to Rick Causey and the CAOs on February 27 for their approval. =20

Besides the data warehouse =3D=09=09BU reps and others have volunteered to =
lead a number of initiatives
=09Steve Frazier, Mike Deville and Susan Bellinghausen=09-=09Cash Reporting=
=09Susan Heltonand James Weitekamp=09=09=09-=09Planning and Forecasting Too=
=09Howard Selzer and Glenn Kobes=09=09=09=09-=09Close Process Re-engineerin=
=09Joe Darensbourg=09=09=09=09=09=09-=09Knowledge Sharing
=09Caroline Lothian=09=09=09=09=09=09-=09Alternate Hierarchy Review
=09Jill Erwin=09=09=09=09=09=09=09-=09Reduction of Complexity
=09Madeline Chan and Dave McEllin=09=09=09=09-=09Training and Change Manage=

We've mapped out a strategy in each of these areas, set deliverables and ex=
pect to accomplish a lot while our BU reps are with us from Feb. 20th to 28=

Data Warehouse Project Update

The cost reporting pilot has been built by Beverly Fennessy and the technic=
al team based on the design Li Chan has specified based on your input from =
the initial interviews, followups and several cost reporting workshops she =
has sponsored in the last month.

The pilot will be a mini-cost reporting button, using a small subset of act=
ual financial data from SAP-CO (one BU, three months of data), and showing =
only the cost center information (not project info). It is designed to tes=
t this solution's (Acta/Oracle/Business Objects) ability to:

1.=09extract data from SAP using Acta,
2.=09report data using a team structure,
3.=09develop usable, presentable and technically efficient "canned reports,=
" and
4.=09provide users an ad-hoc query tool for reporting and analysis not cove=
red by canned reports.

The BU reps need to become familiar with the pilot, and all of our intervie=
w participants are invited to see the pilot and evaluate the tool.
We'll have a questionnaire for your comments and suggestions, which we will=
incorporate into the development of the actual cost reporting button. The=
re's a distribution list at the end of this memo - if you know of someone i=
n your group who should attend, please invite them.

Assuming no significant changes are identified in the user review of the p=
ilot, we expect at least a portion of the cost reporting from the data ware=
house to be rolled into production by the end of April. So be sure to voic=
e your input!

The second part of the warehouse will be cash reporting. Steve Frazier is =
the BU rep leading this effort, with Mike Deville from Corp Reporting and S=
usan Bellinghausen from the ISC providing input. We are working on both di=
rect and indirect cash flow (historical) and trying to determine the best w=
ay to source the data. We'd like to get it from SAP since that's where we =
can get the most detail, with the Treasury workstation as the source for ma=
nual wires not yet input into SAP. However, Susan's group has told us that=
the current SAP design won't allow us to use the Cash Budget Management mo=
dule since that information doesn't tie to FI (due to differences in value =
date and posting date). Therefore, we're looking at what SAP design change=
s might be needed.

The next step will be earnings, which will expand cost reporting by bringin=
g in gross margin, other income, interest expense, minority interest and ta=
xes. We're hoping to be able to tie into the Energy Ops Project Enlighten =
(data warehouse) as a source of gross margin data for wholesale operations.

We envision that the counterparty reporting button will also interface with=
other Enron warehousing efforts, such as Global Counterparty.

A significant objective of the warehouse is to provide ad hoc reporting, so=
we will be looking at the data behind the reporting buttons and determinin=
g which other information should be transferred into the warehouse in the e=
arly phases. Our strategy is to place only the information that is most re=
quested into the warehouse in the early phases, but to design the warehouse=
to be flexible enough to allow additional fields to be transferred in over=

Budgeting and Forecasting Tool

In our interviews, many people expressed an interest in an automated planni=
ng tool. We have looked at three products - SAP's SEM, Hyperion's Planning=
and Adaytum's ePlanning. Some of you attended a demo of Adaytum last week.=
We like because it seems to have the most functionality and two Enron BUs=
already use it (Europe and EBS). We want to be able to plan for earnings =
as well as cash forecasting and projected balance sheets, with these number=
s feeding the warehouse so that our reporting could include both actuals an=
d plan or forecast. We'd like to hear any thoughts you have on how you thi=
nk your BU would use a tool such as this.

We're evaluating the valuation proposition now and expect to can make a rec=
ommendation at Rick's February 27 staff meeting. =20

Susan Helton and James Weitekamp are working on this effort.

Close Process

Howard Selzer is leading the initiative to shorten the close process. He i=
s gathering close calendars from each BU and is talking with each group abo=
ut possible opportunities to squeeze time out of the schedule. He will als=
o focus on topside entries (after the 8th workday) to determine how to elim=
inate the need for these entries. Glenn Kobes will provide the tax perspec=

Knowledge Sharing

Joe Darensbourg is preparing a plan to share best practices among groups. =
He is also spearheading the Global Accounting Intranet site, which is one o=
f the media we can use. A Web Advisory Team has been formed so that each B=
U will have input into how we can best communicate using this site (still w=
aiting for ETS and Europe to appoint representatives to this team). Ideas =
for knowledge sharing include soliciting tips to be reviewed by the Web Adv=
isory Team and then posted to the intranet site, forming user groups in coo=
peration with the ISC (ETS has groups already in place), setting up a forum=
to ask questions of other users (either as part of eThink or separately) a=
nd encouraging participation in the Houston ASUG (SAP user group). We'll w=
ant to coordinate with the ISC's efforts to avoid duplication (they have FA=
Qs on their web site).

Alternate Hierarchies

Caroline Lothian is working to compare and document how the each BU uses al=
ternate hierarchies for reporting. This specifically addresses team reporti=
ng, but also includes anything other than the legal rollup. A common desig=
n for team report hierarchies is necessary to build canned reports in the d=
ata warehouse, since we expect you will want to include data at drill-down =
levels such as BU, line of business, team, profit center and cost center. B=
eyond a team hierarchy, we're really looking to share best practices rather=
than build a common standard.

Number of Entities and Cost Objects

Currently we have about 1,900 legal or accounting entities and nearly 200,0=
00 cost objects in SAP. As far as we know, this is the largest number amon=
g all of SAP's customers. We want to be proactive in controlling these num=
bers before they have the possibility of bringing our systems to their knee=
s. In addition, the large number of entities and cost objects result in ex=
tra costs related to tax compliance and accounting maintenance, as well as =
the intangible costs related to higher complexity. Jill Erwin is heading a=
n initiative to first find out how the BUs use various cost objects and whe=
ther there may be a way to simplify their use, and then to identify ways to=
ensure that new entities and cost objects are set up only when that is the=
best way to accomplish Enron's objectives.

Training and Change Management

In our interviews, we heard about some problems that may be able to be reso=
lved through specific training. We will also need training on the new tool=
s and initiatives that will be implemented in Project Sunrise. It is also =
important for us to continue to communicate with various accounting groups =
as to what Project Sunrise is doing so that we can ensure that we provide w=
hat users really need. Madeline Chan and Dave McEllin are taking the lead =
on what approach we should take on training. We have also spoken with the =
Change Management team in the ISC (under Andy Lawrence), who has agreed to =
provide direction and resources as well as help ensure that together we are=
providing seamless service to our users.
Other Issues

Other areas that we intend to address in Project Sunrise include the automa=
tion of buckets and e-schedules, balance sheets by profit center, intercomp=
any issues and foreign currency issues. In addition, we working with Susan=
Bellinghausen and Rick Boehm (ISC) to provide better reporting related to =
payroll distribution and labor distribution.

As you can see, this is a very broad project, and we want to be sure each B=
U is properly represented. If you'd like to offer additional resources to =
Sunrise, either in general or related to a specific initiative, please call=
Mark at x57193 or Jan at x33260. Attached is the mailing list.