Omnicom Group Is a Giant in the Marketing and Advertising World, with Roughly 1,500 Agencies s1

Microsoft Dynamics Customer Solution Case Study

Advertising Giant Empowers Agencies with Global Rollout of ERP Solution

Overview “With Microsoft Dynamics AX, our agencies have a Country or Region: United States financial system that can evolve and adapt to their ever- Industry: Media and entertainment— Advertising changing business needs.”

Customer Profile Randy Weisenburger, Global CFO, Omnicom Omnicom Group is a strategic holding company with a portfolio of hundreds of advertising, marketing, and public- In the marketing and advertising industry, few companies match relations agencies around the world and the scale of Omnicom Group, a U.S.$11.7 billion holding more than 50,000 employees. company with roughly 1,500 agencies located throughout the Business Situation world. Omnicom wanted to equip its agencies with a standard Omnicom wanted to offer a standardized financial-management system to its enterprise resource planning solution and chose Microsoft agencies that would help increase Dynamics AX based on its ease of use, global availability, operational efficiency and reduce reporting burdens. project-accounting and financial-reporting capabilities, and ability to be customized for the marketing and advertising Solution Omnicom worked with Microsoft Services industry and Omnicom’s specific requirements. To help ensure a to set up a global project office that successful deployment, Omnicom worked with Microsoft would assist local agencies in implementing Microsoft Dynamics AX. Services to set up a global project office that helps manage local implementations, development, and a standard solution Benefits Foundation for continued growth template. Omnicom has deployed Microsoft Dynamics AX for Better insight into the business agencies around the world to improve their financial processes, More efficient processes Stronger, faster reporting gain business insight, and prepare themselves for future growth. Reliable global partner Situation This partner needed to have a strong Omnicom Group is a giant in the marketing development organization, excellent and advertising world, with roughly 1,500 project management capabilities, and a agencies located around the world. With local presence in the hundreds of countries the number of agencies in the group where Omnicom agencies are located. continuing to grow, Omnicom saw an opportunity to equip its agencies with a Solution tool that would help them manage their After an extensive software evaluation individual businesses more effectively. process, Omnicom selected Microsoft Additionally, from the corporate Dynamics AX as the ERP solution that it perspective, Omnicom wanted to provide would promote to its agencies worldwide. the agencies with a standard enterprise The group chose Professional Services resource planning (ERP) solution to further Automation (PSA) for Microsoft Dynamics enhance the already efficient corporate AX based on the solution’s superior reporting processes of the agencies. technical flexibility, ease of use, and ability to accommodate the group’s project- One Omnicom agency, MarketStar, accounting, financial-reporting, and maintained six different systems that advertising and marketing services handled various aspects of its financial requirements. accounting. Because these systems were minimally integrated, MarketStar spent an “We needed to implement best-in-class inordinate amount of time managing data ERP software that would allow our agencies consistency and gathering information to report in faster time frames and meet about business performance. “We had varying client demands for information,” roughly 1,500 employees we maintained in says Wayne Wilson, Global Program payroll, but that information had to be Manager for Omnicom. “Additionally, reentered into separate systems for human Microsoft Dynamics AX had the scalability resources as well,” explains Nicole and localization capabilities—both Hennessey, Application Support Manager language and statutory—that we required for MarketStar. as a global organization.”

For TBWA Worldwide, a global marketing Global Project Office and advertising network that is part of Omnicom tapped Microsoft Services as its Omnicom, different financial systems at its global deployment partner. Together, country operations in the EMEA region Omnicom and Microsoft set up a global made responding to requests for project office that provides project consolidated information very challenging. management and consulting assistance to local agencies implementing the new To address the needs of its agencies, solution. Microsoft Services performs Omnicom needed a flexible ERP solution architecture, design, and performance and a consulting services partner to help reviews for each local implementation. the agencies coordinate development and implementation efforts around the world.

27 "Microsoft has proven to be a very reliable, with a detailed review of our processes and very professional partner. They always lived requirements,” says Joe Weiner, Vice up to expectations and, in fact, quite a few President and Corporate Controller for times exceeded them and helped us Zimmerman. “Both Microsoft and Omnicom tremendously," says Peter Barannikov, assisted us with their knowledge of the Business Intelligence and Systems Director software and suggested best practices that for BBDO Russia Group, an Omnicom helped us minimize customization.” agency that recently worked with the global project office on an implementation Centralized Development Resources of Microsoft Dynamics AX. To maximize efficiencies in the global rollout, the global project office works with Marc Damasse, International Controller at Microsoft Global Services India to provide TBWA, is responsible for the rollout of development services as needed, including Microsoft Dynamics AX in the EMEA region maintaining the standard software template and has only good things to say about the and creating customizations for agencies. centralized approach to global project “Omnicom tailored the template for management. So far, he has overseen Microsoft Dynamics AX specifically to the implementations of Microsoft Dynamics AX needs of its agencies,” says Damasse. “The at TBWA agencies in Dubai, Saudi Arabia, template simplifies deployments with and Egypt, and is helping with a current calibrated settings for purchase orders, deployment in Spain. TBWA Europe plans costs estimates, job management, and to have all its agencies running Microsoft working-capital reporting, for example.” Dynamics AX within three years. When complete, the rollout will cover 20 MarketStar worked with the global project countries, 6 large markets, and 18 different office to implement Microsoft Dynamics AX tax regimes. in 2009. “The Omnicom template gave us a head start in fitting the solution to our “Each project is transparent and organized, business,” says Hennessey. “For example, with weekly reports and single points of we appreciated the work the global project contact at Microsoft and Omnicom,” says office did in the area of expense Damasse. “The project methodology, based processing. And, knowing that Microsoft on the Microsoft Dynamics Sure Step did the development gave us confidence; methodology from Microsoft, facilitates we know that we have reliable resources communication and helps keep the project available now and in the future.” on track. Using this methodology, we trust we will be able to manage several major Single, Integrated Solution implementations starting in 2011.” MarketStar replaced its six separate financial-accounting systems with Microsoft Zimmerman Advertising, an Omnicom Dynamics AX in 2009. With a single, agency with nearly 1,000 employees, integrated system, time-sheet information replaced an outdated accounting package that employees enter online automatically with Microsoft Dynamics AX in 2008. “The flows into the general ledger and payroll Omnicom global project office assisted us modules, eliminating the need for duplicate

37 data entry. Similarly, when employees in agencies in 10 different countries across the financial department deal with accounts several brands,” says Damasse. “We are receivable and billing, they can pull often given very short notice, possibly a required information from a single source week, to compile and analyze financial data instead of compiling it in several Microsoft requested by our clients.” Excel spreadsheets. “We reconcile actual time spent versus Zimmerman integrated Microsoft Dynamics budgeted to track profitability and prepare AX with its job management system and more accurate proposals in the future,” he studio production applications to minimize adds. “The time-sheet module in Microsoft duplicate work. The agency also uses Dynamics AX enables us to do this easily, Microsoft Dynamics AX to better align its and even drill down to see which employee financial department with operational did what kind of work on a specific project.” groups within the company, especially when estimating projects and approving Client and Group Reporting purchases. “We are taking advantage of the MarketStar, LatinWorks, TBWA, and collaboration and workflow capabilities of Zimmerman all say the new solution helps the solution so that we can act faster as an with preparing reports by minimizing the organization,” explains Weiner. “Everyone need to gather information from separate shares the same system and same systems and format it according to information.” corporate reporting requirements. “For the TBWA Europe agencies that have deployed Real-Time Information Microsoft Dynamics so far, having the LatinWorks, a fast-growing Omnicom standardized financial-management system advertising agency based in Austin, Texas, enables them to respond to clients faster which previously used QuickBooks and in more detail,” says Damasse. “The Enterprise and the Enterprise Agency Suite agencies that have adopted the solution from Harris, now uses Microsoft Dynamics can now produce standard corporate AX with Enterprise Portal to provide reports much more easily and faster than managers with a real-time view into project before. It removes a significant burden financials. The agency is also continuing to from the accounting departments at our learn how to take advantage of the agencies.” collaboration and workflow features available in the solution to better connect Damasse expects that the TBWA agency in financial accounting with operational Spain will see similar gains once it aspects at the company. completes its implementation. “With the current focus on liquidity, there is an For the TBWA agencies that have deployed emphasis on credit risk management,” he Microsoft Dynamics AX, Damasse says the explains. “Our agency in Spain will solution provides unprecedented insight immediately benefit from Microsoft into time spent on each client account. Dynamics AX because they will be able to “Very often, a large client will request an automatically publish treasury reports, such update on the time spent by TBWA as working-capital reports and client-aging

47 reports that are included in the Omnicom AX in June 2009, a year in which it nearly template. The controller at this agency doubled in size to more than 100 won’t have to compile this information and employees. will save at least one day each month. And, features like pay-when-paid will definitely “We were quickly outgrowing our help to optimize cash management.” QuickBooks Enterprise software,” says Hector Silva, CFO at LatinWorks. “Deploying At Zimmerman, Weiner says the flexibility Microsoft Dynamics AX was a strategic of Microsoft Dynamics AX helps the priority because it provided us with a financial department produce more useful world-class accounting solution which reports. “One of the biggest difficulties we would integrate with other necessary faced with our previous system was our collaborative tools. Microsoft and inability to customize reports without Omnicom provided the advice and expensive consulting help,” says Weiner. resources to help us complete the “Now, we have tremendous reporting implementation in four months, on time flexibility and plan on building on that and on budget, even in the midst of further in the future with business incredible business activity.” intelligence and data mining.” For Zimmerman, Microsoft Dynamics AX Benefits will help the agency expand internationally. Omnicom now offers its agencies a world- “Microsoft Dynamics AX provides the class ERP system tailored to their needs and foreign-currency conversion and a consulting and development partner that localization capabilities we need to grow can assist with implementations around the abroad,” says Weiner. “And, we have a world. platform that we can build on, especially as we enhance our financial-planning model, “With Microsoft Dynamics AX, our agencies add business intelligence, and continue to have a financial system that can evolve and improve our operational processes.” adapt to their ever-changing business needs. Omnicom added its own industry MarketStar plans to use Microsoft and financial-accounting expertise to the Dynamics AX to help meet changing client solution, resulting in a world-class system requirements. “Previously, we could not for its marketing services and advertising easily adjust our processes according to companies,” says Randy Weisenburger, client requests,” says Hennessey. “Now, Global CFO at Omnicom. with Microsoft Dynamics AX, accommodating those changes will be Foundation for Continued Growth much easier because we’re dealing with a As a strategic holding company, Omnicom single system built on standard seeks to grow small and midsize marketing technology.” and advertising agencies into successful larger companies. LatinWorks is a perfect Better Insight into the Business example of this strategy in action. The Equipped with a single, integrated solution, agency implemented Microsoft Dynamics Omnicom agencies have the real-time

57 insight they need to make more accurate the general ledger,” says Hennessey at estimates and answer customer questions MarketStar. “For example, the time-sheet more promptly. “At TBWA Europe, we aim information that our employees enter is to use Microsoft Dynamics AX to make it now automatically recorded, whereas easier to share information across before, it was maintained in our end-user agencies,” says Damasse. “We’re creating a system as well as back-office spreadsheets. report library and instituting common By eliminating those manual processes, policies for how to use system capabilities. we’ve reduced the opportunity for errors.” All this is aimed at making information transparent and available, and helping Stronger, Faster Reporting CFOs at local agencies to understand what By using a modern financial-management information the corporate office needs.” solution, Omnicom agencies have made significant gains in the time it takes to Damasse also sees this common financial- prepare client and corporate reports. management solution helping to serve “We’ve seen a big change in the timeliness international customers better. “Because we of reports from offices that have can easily track our costs and hours on implemented Microsoft Dynamics AX,” says previous projects, we can estimate new Damasse of TBWA Europe. projects and make fee proposals more accurately, especially for large, international With Microsoft Dynamics AX, Zimmerman clients whose projects may span many has shortened its month-end-closing countries,” he says. “Microsoft Dynamics AX process to just a few days. “At the end of helps TBWA Europe demonstrate to clients each month, we have all the information we the work that we are doing and our need,” says Weiner. “In general, our diligence in responding to their questions.” financial processes are faster. Online expense reporting and a multidimensional More Efficient Processes chart of accounts help us bill clients sooner, Agencies that have deployed Microsoft for example.” Dynamics AX use the solution to eliminate time-consuming, error-prone manual Reliable Global Partner processes. Zimmerman uses the solution to Damasse, International Controller for automatically process more than 700 TBWA, believes that Omnicom and invoices each month for its zTRAC Microsoft offer local agencies the strong advertising performance management project support that is essential to the service. Previously, this work required more success of a financial-management solution than 60 hours each month from employees implementation. “Implementing financial in the accounting department. systems is often more difficult than for production systems,” he explains. “I know At MarketStar, new automation is helping large firms that implemented software from to reduce the chance for error. “Our another vendor, and it was a terrible accounts receivable and billing processes process. The Omnicom and Microsoft now are much tighter because all costs approach is a clear contrast, with associated with a project flow directly into

67 safeguards that help reduce risk and ensure Microsoft Dynamics timely completion of the project.” Microsoft Dynamics is a line of integrated, adaptable business management solutions After successfully implementing Microsoft that enables you and your people to make Dynamics AX in Dubai and Egypt, Damasse business decisions with greater confidence. and team members from Microsoft and Microsoft Dynamics works like familiar Omnicom are applying best practices to the Microsoft software such as Microsoft Office, current implementation in Spain before which means less of a learning curve for starting new large projects across Europe in your people, so they can get up and 2011. “We’re seeing improved efficiencies running quickly and focus on what’s most as we carry forward lessons learned,” he important. And because it is from says. “Microsoft Consulting Services is Microsoft, it easily works with the based in the United States, Omnicom’s systems that your company already has Microsoft Dynamics AX team is in New York implemented. By automating and and London, the Microsoft Global Services streamlining financial, customer developers are in India, and my team is in relationship, and supply chain processes, Paris. But with the global project office and Microsoft Dynamics brings together organized approach, these geographic people, processes, and technologies, issues are not a problem.” increasing the productivity and effectiveness of your business, and helping you drive business success.

For more information about Microsoft Dynamics, go to: www.microsoft.com/dynamics