NA101 Umoja Overview
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1 NA101 Umoja Overview 1
2 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 2
3 Course Overview The Umoja Overview course is designed to be introductory in nature, and provides an overview of Umoja, including its benefits, structure and key deployment phases. Audience: This course will be users first course and a prerequisite for the remainder of the Umoja courses. Course Duration: 1 hour and 30 minutes 3
4 Course Objectives After completing this course, you will be able to: Define the aspects of the Umoja solution List the key drivers of Umoja Explain the objectives and benefits of Umoja Describe the process changes driven by Umoja Foundation Explain the importance of data in Umoja Describe the Umoja system components Explain the integration of Umoja system components 4
5 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 5
6 Module 1 Objectives After completing this module, you will be able to: Define the aspects of the Umoja solution List the key drivers of Umoja Explain the objectives and benefits of Umoja Describe the process changes driven by Umoja Foundation 6
7 Key Terminology Umoja Key Term Enterprise Resource Planning (ERP) Systems, Applications, and Products in Data Processing (SAP) International Public Sector Accounting Standards (IPSAS) Description An administrative reform initiative designed to help the UN operate more effectively by integrating and streamlining business processes that manage financial, human and physical resources within a single global solution for the entire Secretariat A software package that improves organizational performance by providing enterprise view of data, processing data in realtime data, standardizing business processes and implementing leading business practices The ERP system being implemented by Umoja A set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements 7
8 What is Umoja? means Unity in Swahili. It is the Secretariat s administrative reform initiative that changes how we work, how we conduct our business and how we manage our resources. helps the UN operate more effectively by integrating and streamlining business processes that manage financial, human and physical resources within a single global solution for the entire Secretariat. 8
9 What is the Umoja Solution? The Umoja solution includes the following aspects: Umoja provides an opportunity for UN staff to learn new skill sets while continuing to perform value-added tasks. PEOPLE Umoja enables the standardization of processes and administrative practices throughout the Secretariat. PROCESSES TECHNOLOGY Umoja provides the UN with modernized business processes and an integrated system of record, SAP ERP 6.0. Note: Umoja will ultimately replace the UN legacy systems such as IMIS, Mercury, Sun, ProcurePlus, and Galileo. It is integrated with other systems. 9
10 Why is Umoja Important? "Umoja is designed to help harmonize the way the UN works, providing a single data repository with reliable, real-time information. It is far more than an Information Technology project; it is an organizational transformation that will enable high-quality and cost-effective service Credit: UN Photo/Rick Bajornas delivery around the world." -Secretary-General Ban Ki-moon at the 100-Day Pilot Countdown 10
11 Why is the UN Implementing Umoja? The Umoja solution represents a once-in-a-generation opportunity for the UN to: Upgrade its technology, tools and practices to those appropriate for the 21 st century Comply with or exceed international industry standards (for example, IPSAS) Streamline fragmented administrative processes, to allow managers and staff to focus on higher value activities Unify multiple systems and platforms to avoid delays, waste and frustration 11
12 What are the Objectives and Benefits of Umoja? Umoja is an organizational transformation initiative that aims to: Renew the way the UN manages human, financial and material resources, bringing the organization up to accepted common standards Enhance decision-making by linking programmes and operations with the allocated resources Reduce the average time required for administrative processes, by streamlining, integrating and automating business processes Increase efficiency by reducing the amount of staff time spent on manual processes while enhancing accountability on internal controls Enable the implementation of IPSAS by the Secretariat To read about the Guiding Principles of Umoja, please visit Umoja NET. 12
13 Umoja Supports the Adoption of IPSAS The UN General Assembly approved the adoption of IPSAS for the preparation and presentation of the organization's financial statements. IPSAS requires a full accrual accounting system. For example: Expenses are recognized when services or goods are received Fixed assets are capitalized and depreciated based on their useful life Umoja is designated to support the proper adoption of IPSAS. This allows for: Use of full accrual accounting, which has become best practice Enhanced transparency of financial processes IPSAS Enhanced financial accountability Umoja Improved organizational performance due to quality financial information Improved consistency and comparability of financial statements 13
14 Umoja Sponsors The Umoja solution is supported at all levels of the UN. The sponsors of the project are fully committed to steering Umoja down the path to success. Sponsor Secretary-General Ban Ki-moon Project Owner Yukio Takasu, Under-Secretary-General (USG), Department of Management Umoja Steering Committee Yukio Takasu (Chair), USG, Department of Management Susanna Malcorra, Chef de Cabinet Ameerah Haq, USG, Department of Field Support Kim Won Soo, Assistant Secretary-General (ASG), Change Implementation Team Catherine Pollard, ASG, Office of Human Resources Management Gina Casar, ASG, Office of Programmes Planning Budgets and Accounts ASG, Office of Central Support Services (TBD) Franz Baumann, ASG, Department of General Assembly and Conference Management Dennis Thatchachaiwalit, Director of Management, UN Office at Vienna Craig Boyd, Director, Department of Field Support ASG, Chief Information Technology Officer (TBD) 14
15 Umoja Phases and Scope To accelerate progress, the Umoja solution is deployed in three phases. The first phase, Umoja Foundation, impacts functionalities in four process areas. Foundation Extension 1 Extension 2 Deployment commences 2013 Process Areas: Supply Chain, Procurement and Logistics Finance and Budget Services to the Public and Staff and Real Estate (Central Support Services) Programme and Project Management Essential to support IPSAS requirements Deployment commences 2014 Process Areas: Human Resources and Travel Deployment commences 2017 Process Areas: The remaining of the planned processes to complete full scope 15
16 Umoja Foundation Clusters Umoja Foundation is being deployed in clusters. The Umoja Foundation functionalities are released in phases with each cluster. As a result, you could work with staff members at another location who does not yet have the Umoja solution. Foundation Extension 1 Extension 2 Pilot Cluster 1 Cluster 2 Cluster 3 Cluster 4 Note: The remainder of this course will focus on Umoja Foundation. To read about timeline of Umoja, please visit Umoja NET. 16
17 What s Changing? With the implementation of Umoja Foundation, the process areas with upcoming changes are: Supply Chain, Procurement and Logistics Finance and Budget Services to Public and Staff and Real Estate (Central Support Services) Programme and Project Management* Central Support Services Programme & Project Management Finance & Budget Supply Chain/Procureme nt/logistics Human Resources Note: Programme and Project Management is not deployed in Pilot. 17
18 Supply Chain, Procurement and Logistics Supply Chain, Procurement and Logistics Umoja Changes: Business Partners (e.g. vendors, suppliers, etc.) are centrally stored and shared Procurement and logistics activities are highly integrated with finance in one system Umoja is deployed in phases. Galileo is provisionally retained for asset and inventory management in Peacekeeping (PK) and Special Political Missions (SPMs) Equipment, materials, assets and other key data are centrally stored and shared (except for those maintained in Galileo) Procurement activities are conducted using the Shopping Cart functionality and one web-based, searchable UN contract catalog Robust, organization-wide automated reporting assists with forecasting and supply management 18
19 Finance and Budget Finance and Budget Umoja Changes: Banks, funds, assets and other key data are centrally stored and shared Umoja incorporates existing internal controls, appropriate regulations and rules, as well as workflow for review and approval Increased automation of financial processes Cost and Management Accounting, Asset Accounting and Grants (trust fund) Management methods are standardized Payment of invoices is only possible after three-way matching of Invoice, Purchase Order and Goods Receipt 19
20 Services to Public and Staff and Real Estate Services to Public and Staff and Real Estate Umoja Changes: Real estate, assets and other key data are centrally stored and shared Bill from various UN offices can be combined and issued as consolidated invoice to external customers Third-party procurement generates requisition for procurement actions thereby funds allocation is not required Grants (trust fund) Management and administration are directly integrated with the billing process so invoices related to the grant are automatically generated upon release Robust, organization-wide automated reporting enable effective lease management and space management and planning 20
21 Programme and Project Management Programme and Project Management Umoja Changes: Allotment of trust fund budget in Headquarters take place in Umoja (Grants Management), while each Peacekeeping (PK) Mission create a project to track trust fund expenditures Integration with Finance (Grants Management) enables robust donor reporting Managers have direct access to key data and reports Note: The Programme and Project Management is not deployed in Umoja Pilot. 21
22 Learning Checkpoint 1 When does the Umoja Foundation phase commence? Select the correct option. A B C D
23 Learning Checkpoint 1 When does the Umoja Foundation phase commence? Select the correct option. A B C D Option A is the correct answer. The Umoja Foundation phase commences in
24 Learning Checkpoint 2 What are the objectives and benefits of Umoja? Select all that apply. A. Increased organizational efficiency B. Enhanced decision-making C. Adoption of IPSAS by the Secretariat D. Multiple business processes E. Increased manual effort 24
25 Learning Checkpoint 2 What are the objectives and benefits of Umoja? Select all that apply. A. Increased organizational efficiency B. Enhanced decision-making C. Adoption of IPSAS by the Secretariat D. Multiple business processes E. Increased manual effort Options A, B and C are correct answers. Increased organizational efficiency, enhanced decisionmaking and the adoption of IPSAS by the Secretariat are a few benefits of Umoja Foundation. 25
26 Learning Checkpoint 3 Which of the following process areas are impacted by Umoja Foundation? Select all that apply. A. Services to Public and Staff and Real Estate (Central Support Services) B. Human Resources C. Finance and Budget D. Supply Chain, Procurements and Logistics E. Travel 26
27 Learning Checkpoint 3 Which of the following process areas are impacted by Umoja Foundation? Select all that apply. A. Services to Public and Staff and Real Estate (Central Support Services) B. Human Resources C. Finance and Budget D. Supply Chain, Procurements and Logistics E. Travel Options A, C and D are correct answers. Services to Public and Staff and Real Estate (Central Support Services); Finance and Budget; and Supply Chain, Procurements and Logistics are impacted by Umoja Foundation. 27
28 Module 1 Summary The key points covered in this module are listed below: Umoja is an administrative reform initiative designed to help the UN operate more effectively by integrating and streamlining business processes Umoja is deployed in three phases: Foundation, Extension 1 and Extension 2 Umoja Foundation impacts the following process areas: Supply Chain, Procurement and Logistics; Finance and Budget; Services to Public and Staff and Real Estate; and Programme and Project Management 28
29 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 29
30 Module 2 Objectives After completing this module, you will be able to: Explain the importance of data in Umoja Describe the Umoja system components Explain the integration of Umoja system components 30
31 Key Terminology Master Data Key Term ERP Central Component (ECC) ECC Module Graphical User Interface (GUI) Supplier Relationship Management (SRM) Business Intelligence (BI) Portal Description Fundamental business data common and applicable across the UN The main Umoja component comprised of various modules The ECC representation of a typical organizational function. It can be further organized into sub-modules An interface used to access ECC A Umoja component used specifically for procurement and requisitioning activities The Umoja component that is both a data warehouse and reporting tool A secure website that requires a login and provides access to a system 31
32 SAP Overview SAP is a type of ERP system that improves organizational performance in the following ways: Enterprise View of Data Users can operate in the same system instead of using different legacy systems. Reduction of manual entry processes Maintenance of highquality data Consistent usage of integrated data across the organization Real-time Data Processing Data in SAP is processed instantly instead of moving through multiple systems and interfaces Minimizes lag time For example, the financial impact of purchasing or receiving actions are immediately reflected in the General Ledger, rather than waiting for an interface to run. Standardized Business Processes SAP allows the organization to streamline and standardize its business processes Leads to significant cost savings Brings recommended leading business practices of successful implementations in both public and private sector organizations 32
33 Importance of Data Data is the common language in SAP. Input Data Central Database UN Users Extract Data Data available in real time All users, with enterprise roles, from different geographic and business areas of UN can access a common central database, which is always up-to-date and unaffected by local server issues. With SAP, users can input and extract information from a single source. This will allow data to be available in real time. SAP also prompts users to check their entries, draws attention to errors and confirms that data has been entered successfully. 33
34 Categories of Data In SAP, data is segregated into several categories. Umoja brings the very important concept of Master Data. Since all users access data in one system, universal Master Data minimizes data entry and allows for sharing of consistent data. Fundamental business data common and applicable across the UN E.g. Vendors, Materials Data has a lifecycle and must be managed just like any other business process with policies and procedures. 34
35 Material Master Data For example, the Material Master is a Master Data record that contains information about all products procured, stored and shipped by the UN. Key components of Material Master include: Unique ID of a product Product Type of product or service. Matches the equivalent UNSPSC classification. Properties to enable material management Product Category Material Management Properties Material Master Data Objects Other physical or financial characteristics 35
36 Introduction to Umoja Components The Umoja system is made up of three components that rely on consistent data to keep them fully integrated. These three components are: ERP Central Component (ECC) Supplier Relationship Management (SRM) Business Intelligence (BI) Data ECC BI SRM 36
37 ERP Central Component (ECC) ECC is the main Umoja component that enables enterprise resource management. ECC comprises: Modules Business Processes Transactions Each module represents a typical organizational function. For example: Finance (FI) and Materials Management (MM) Some modules have sub-modules that further define business functions. For example, FI is divided into sub-modules such as FI- AA (Asset Accounting) and FI-AR (Accounts Receivable) Within a particular module, an organization s business processes are configured and put together For example, budget entry process takes place in the FI-FM (Funds Management) module and the inbound goods process in the MM- IM (Inventory Management) module Each business process is comprised of transactions, which are steps that need to be executed in the correct order For example, procuring goods, receiving goods, paying the invoice 37
38 ECC Modules The Umoja ECC modules and their corresponding business areas are: PP: Production Planning PM: Plant Maintenance MM: Materials Management IM: Inventory Management WM: Warehouse Management SD: Sales and Distribution RE-FX: Real Estate Management PS: Project System GM: Grants Management FM: Funds Management CO: Controlling FI: Financial Accounting AP: Accounts Payable AR: Accounts Receivable AA: Asset Accounting GL: General Ledger 38
39 ECC Graphical User Interface (GUI) The Graphical User Interface (GUI) is an interface used to access ECC. It is the software on a computer or local server that allows connection into Umoja. It s a visual means of moving and reviewing information in a system. For example, Microsoft s Windows, and Apple s OS operating systems are both GUIs to the code-driven systems masked behind desktop icons and menus. 39
40 Supplier Relationship Management (SRM) All procurement functions in Supply Chain and Procurement are performed in the SRM component. SRM is an online procurement application that allows for the following functionality: Requisitioning Strategic Sourcing and Solicitations Contract Life-Cycle Management Supporting Processes SRM Call-off PO(s) ECC Creation of Shopping Cart (PR) Materials Management Approval Process SC generate (pre)commitment in FM Strategic Sourcing Bid(s) Contract(s) Approval Process Normal PO(s) Demands Generation(PR) Read only copies of PO(s) POs (replicated Goods Receipt(s) Invoice Receipts(s) Note: While Supply Chain and Procurement transactions are completed in SRM, Logistics transactions are completed in ECC. 40
41 SRM Portal The SRM portal is used to access the SRM component. It is a secure website that requires a user name and password. SRM is fully integrated with ECC. It shares data with ECC and the two components are in sync at all times. 41
42 Business Intelligence (BI) The BI component is a data warehouse as well as a reporting tool. It processes data from both the ECC and SRM components and generates meaningful reports. BI can be accessed through a portal. BI replaces, amongst other tools, the Funds Management Tool (FMT) and will ultimately become the main reporting system. This allows all UN users to have access to reports across all Umoja components. While reports exist within ECC, BI simplifies the data analysis process and provides users with fast, selfservice access to enhanced reports. 42
43 Integration of Umoja Components All the three Umoja components are fully integrated with each other, allowing users to share data and generate meaningful reports. The image below depicts the integration of Umoja components: BI BI Portal ECC Data SRM ECC GUI SRM Portal 43
44 Learning Checkpoint 1 Which of the following type of data serves as a basis for transactions? Select the correct option. A. Key Reference Data B. Master Data C. Transactional Data 44
45 Learning Checkpoint 1 Which of the following type of data serves as a basis for transactions? Select the correct option. A. Key Reference Data B. Master Data C. Transactional Data Option B is the correct answer. Master data is the data that serves as the basis for all transactions. 45
46 Learning Checkpoint 2 All procurement functions in Supply Chain and Procurement are performed in the component. Fill in the blank with the correct option. A. BI B. FI C. SRM D. PP 46
47 Learning Checkpoint 2 All procurement functions in Supply Chain and Procurement are performed in the component. Fill in the blank with the correct option. A. BI B. FI C. SRM D. PP Option C is the correct answer. All procurement functions in Supply Chain and Procurement are performed in the SRM component. 47
48 Module 2 Summary The key points covered in this module are: SAP is a type of ERP system that improves organizational performance in many ways Umoja brings the very important concept of Master Data, which is fundamental business data common and applicable across the UN The three components of Umoja are ERP Central Component (ECC), Supplier Relationship Management (SRM) and Business Intelligence (BI) ECC is the main Umoja component that enables enterprise resource management All procurement functions in Supply Chain and Procurement are performed in the SRM component The BI component is a data warehouse as well as a reporting tool 48
49 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 49
50 Course Summary The key points covered in this course are: Umoja is an administrative reform initiative designed to help the UN operate more effectively by integrating and streamlining business processes Umoja solution impacts people, processes and technology Umoja is deployed in three phases: Foundation, Extension 1 and Extension 2 Umoja Foundation impacts the following process areas: Supply Chain, Procurement and Logistics; Finance and Budget; Services to Public and Staff and Real Estate; and Programme and Project Management SAP is a type of ERP system that improves organizational performance in many ways Umoja brings the very important concept of Master Data, which is fundamental business data common and applicable across the UN The three components of Umoja are ECC, SRM and BI 50
51 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 51
52 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click on the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 52
53 Agenda Course Introduction Module 1: Umoja Introduction Module 2: Umoja Foundation Solution Course Summary Course Assessment Course Survey 53
54 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click on the Start link of the course survey 5. Click the Submit button once you have completed the course survey 54
55 Congratulations! You have successfully completed the Umoja Overview course. 55
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