---------------------- Forwarded by Tracy Geaccone/GPGFIN/Enron on 02/12/2001 03:47 PM ---------------------------


Jennifer Reed@ECT
02/12/2001 03:27 PM
To:	Bob Butts/GPGFIN/Enron@ENRON, George Wasaff/Enron@EnronXGate, Mark E Lindsey/GPGFIN/Enron@ENRON, Terrie Wheeler/GPGFIN/Enron@ENRON, Greek Rice/Corp/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, Terry 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, Tiffany Miller/NA/Enron@ENRON, David Vandor/Corp/Enron@ENRON, Nadia A Rodriguez/NA/Enron@ENRON, Stephen Wolfe/HOU/ECT@ECT, Ricardo Guerra/Corp/Enron@ENRON, Elaine Schield/Corp/Enron@ENRON, Brent A Price/HOU/ECT@ECT, Thomas Myers/Enron@EnronXGate, Jeff E Smith/Enron@EnronXGate, Shilpa Kadakia/Enron@EnronXGate, 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 Communications, 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/Enron Communications@Enron Communications, Kevin Hughes/HOU/EES@EES, Wade Stubblefield/HOU/EES@EES, Dana Lee/HOU/EES@EES, Wanda Curry/HOU/EES@EES, Steve Frazier/HOU/EES@EES, Patrick Cagney/HOU/EES@EES, Mary Lynne Ruffer/HOU/EES@EES, Kerry Roper/GPGFIN/Enron@ENRON, Michael S Galvan/HOU/ECT@ECT, Amy Spoede/HOU/ECT@ECT, Brian Heinrich/HOU/ECT@ect, Kristin Armstrong/HOU/ECT@ECT, Becky 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 Geaccone/GPGFIN/Enron@ENRON, John Cobb/FGT/Enron@ENRON, Bob Chandler/ET&S/Enron@ENRON, Harry Walters/ET&S/Enron@ENRON, david.mcellin@enron.com, James Weitekamp/GPGFIN/Enron@ENRON, Fernley Dyson/LON/ECT@ECT, Melissa Allen/LON/ECT@ECT, Stephen Wood/LON/ECT@ECT, Caroline Lothian/LON/ECT@ECT, Claire Wright/LON/ECT@ECT, Niamh O'Regan/LON/ECT@ECT, Raewyn Perkins/LON/ECT@ECT, Mike Jordan/LON/ECT@ECT, Jeffrey E Sommers/Enron@EnronXGate, Agatha B Tran/Enron@EnronXGate, Howard Selzer/Corp/Enron@ENRON, Jim Davoli/Corp/Enron@ENRON, Pamela Rush/Corp/Enron@ENRON, Joe Darensbourg/Enron@EnronXGate, Allan Sommer/Corp/Enron@Enron, Susan Bellinghausen/Enron@EnronXGate, Emitra Nelson/Enron@EnronXGate, Braden Sewell/Corp/Enron@ENRON, Lonnie Liu/Enron@EnronXGate, Mark Schmidt/Corp/Enron@ENRON, Kathy Kokas/Corp/Enron@ENRON, Shelly Michalk/Corp/Enron@ENRON, Rick Boehm/Corp/Enron@ENRON, Andrew Lawrence/Enron@EnronXGate, Brandee Sanborn/Corp/Enron@ENRON, Kathryn Schultea/HR/Corp/Enron@ENRON, Keith Marlow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mary Solmonson/Enron@EnronXGate, John Keiser/FGT/Enron@ENRON
cc:	Jan Johnson/GPGFIN/Enron@ENRON, Mark Frank/HOU/ECT@ECT 

Subject:	Pilot Meeting

There's a lot going on!  We want to update you, and we want to invite you to view a pilot of a financial data warehouse.  The pilot shows cost reporting using a small sample of real data (see below for more description).  Here'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 		EB24C2	BU reps 
Wed 2/21 9:00-10:30am		EB30C2	Videoconference for Europe
Wed 2/21  1:00-2:30pm 		EB24C2	All
Thurs 2/22 10:00-11:30am	EB48C2	All
Thurs 2/22 1:00-2:30pm 		EB24C2	All
Fri 2/23 10:00-11:30am		EB24C2	All

Our next major deliverable = 	a charter, workplan and budget will be presented to Rick Causey and the CAOs on February 27 for their approval.  

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

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

Data Warehouse Project Update

The cost reporting pilot has been built by Beverly Fennessy and the technical 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 actual 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 test this solution's (Acta/Oracle/Business Objects) ability to:

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

The BU reps need to become familiar with the pilot, and all of our interview 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.  There's a distribution list at the end of this memo - if you know of someone in your group who should attend, please invite them.

 Assuming no significant changes are identified in the user review of the pilot, we expect at least a portion of the cost reporting from the data warehouse to be rolled into production by the end of April.  So be sure to voice 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 Susan Bellinghausen from the ISC providing input.  We are working on both direct and indirect cash flow (historical) and trying to determine the best way 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 manual 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 module 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 changes might be needed.

The next step will be earnings, which will expand cost reporting by bringing in gross margin, other income, interest expense, minority interest and taxes.  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 determining which other information should be transferred into the warehouse in the early phases.  Our strategy is to place only the information that is most requested 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 time.

Budgeting and Forecasting Tool

In our interviews, many people expressed an interest in an automated planning 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 numbers feeding the warehouse so that our reporting could include both actuals and plan or forecast.  We'd like to hear any thoughts you have on how you think your BU would use a tool such as this.

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

Susan Helton and James Weitekamp are working on this effort.

Close Process

Howard Selzer is leading the initiative to shorten the close process.  He is gathering close calendars from each BU and is talking with each group about possible opportunities to squeeze time out of the schedule.  He will also focus on topside entries (after the 8th workday) to determine how to eliminate the need for these entries.  Glenn Kobes will provide the tax perspective.

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 of the media we can use.  A Web Advisory Team has been formed so that each BU will have input into how we can best communicate using this site (still waiting for ETS and Europe to appoint representatives to this team).  Ideas for knowledge sharing include soliciting tips to be reviewed by the Web Advisory Team and then posted to the intranet site, forming user groups in cooperation 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) and encouraging participation in the Houston ASUG (SAP user group).  We'll want to coordinate with the ISC's efforts to avoid duplication (they have FAQs on their web site).

Alternate Hierarchies

Caroline Lothian is working to compare and document how the each BU uses alternate hierarchies for reporting. This specifically addresses team reporting, but also includes anything other than the legal rollup.  A common design for team report hierarchies is necessary to build canned reports in the data 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. Beyond 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 200,000 cost objects in SAP.  As far as we know, this is the largest number among all of SAP's customers.  We want to be proactive in controlling these numbers before they have the possibility of bringing our systems to their knees.  In addition, the large number of entities and cost objects result in extra costs related to tax compliance and accounting maintenance, as well as the intangible costs related to higher complexity.  Jill Erwin is heading an initiative to first find out how the BUs use various cost objects and whether 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 resolved through specific training.  We will also need training on the new tools 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 what 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 automation of buckets and e-schedules, balance sheets by profit center, intercompany 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 BU 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.