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Total Cost of Ownership for PeopleSoft Applications

Panel DiscussionSession 101820

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Agenda

Introductions 5

What is Total Cost of Ownership (TCO)? 5

Why is TCO important? 5

How do we calculate TCO? 25

Open discussion 10

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Introductions• Carmen Mazza

– Manager of HRIS and Payroll– Securian Financial Group– Carmen.mazza@securian.com– 651.665.3659

• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– Paul.a.brand@wellsfargo.com– 612.316.1518

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Wells Fargo is…• #1 in deposits among US banks.• #1 in market capitalization among US banks.• #4 in assets among US banks.• #1 in mortgage origination and servicing.• #1 in philanthropy among all US companies.• #12 in revenue among all US companies.

4

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Wells Fargo’s Environment• Implemented PeopleSoft HCM in 1993 (v. 2.0)• PeopleSoft release 8.9, PeopleTools: 8.52

– HR, NA Payroll, Ben Admin– Heavy-duty employee self-service– Manager self-service (custom) – Talent Acquisition Manager and Candidate Gateway

• Employees on Payroll (NA): 277,000• Heavily customized for compliance and volumes

5

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Securian Financial Group is…• Subsidiary of Minnesota Mutual

Companies• Founded in 1880 in St. Paul • Provides Financial Services including

– $343 billion of life insurance in force – $20 billion in assets under management

6

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Securian’s Environment• Implemented PeopleSoft in 1998• PeopleSoft release 9.1, PeopleTools: 8.50

– HR, NA Payroll, Base Benefits & Ben Admin– Employee self-service - eBenefits, eProfile, ePay, – Manager self-service (custom) – Talent Acquisition Manager and Candidate Gateway

• Employees on Payroll: 3,700• Moderate customizations

7

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What is TCO?• TCO represents the organization’s

complete financial exposure• Typically expressed in dollars per unit,

such as employee.

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Why is TCO important?• Options comparison• Benchmarking• Evaluating impact of changes over time

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How do we calculate TCO?• Units• Inputs• Denominators• Value for cost

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Wells Fargo’s TCO Formula: HCMLabor + Mainframe + Middle Tier + Licensing

Active employees (ALP)

• Labor = Wages + bonus + training + load (Salary * 0.29) for app and support teams.

• Mainframe Cost = allocation for all MF data center costs, including operations staff, electricity, MF utility licensing…

• Middle Tier = HW/SW for app, web, and load balancing. • Licensing = maintenance only. License fully depreciated.

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Wells Fargo’s TCO Formula: HCMLabor + Mainframe + Middle Tier + Licensing

Active employees (ALP)

$9.2MM + Mainframe + Middle Tier + Licensing277,000 ALP

=$65.22 per EE per year

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Securian’sTCO Formula: HCMSalaries + Direct Expenses + Indirect Allocations + IT Services

# of W2s

• Salaries = HRIS & Payroll processing functions. • Direct = Software maint., consulting, travel, misc. • Indirect = Rent, Benefits, misc. overhead• IT Services = app development, devices, phones,

processing & storage.

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Securian’s TCO numbers

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What about value? • What does your organization get for its money?

– Quality of service– Scope of service

• Functions supported• # of interfaces

– Cost & risk avoidance• Lean function staffing

– Strategic Considerations• Valuable opportunities• Distraction from mission

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APRIL 7-11, 2014Sands Expo and Convention CenterLas Vegas, Nevada

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TCO Session 101820• Carmen Mazza

– Manager of HRIS and Payroll– Securian Financial Group– Carmen.mazza@securian.com– 651.665.3659

• Paul Brand– HRIS Technology Manager– Wells Fargo Bank– Paul.a.brand@wellsfargo.com– 612.316.1518