It takes a commitment this strong to build a cloud foundation this quickly

The Israeli government’s fast actions and unwavering focus helped enable cloud foundation development in just 11 weeks


Client

Government of Israel


Primary goal

Develop and deploy a secure cloud foundation within a highly compressed timeframe 


Technology

Google Cloud 

 

The Government of Israel began its journey from on-premises solutions to Google Cloud when it became clear that a cloud foundation would help balance the need for organization-wide governance with those of individual ministries. Building a fully enabled foundation would typically take about nine months, but the government was faced with a fast-approaching deadline for a successful pilot migration. KPMG helped the government envision a provisional Google Cloud foundation that would provide robust security, support a pilot workload, and, once fully enabled, empower migration of all ministries. Then, working together, they built the MVP—in just 11 weeks.
 

Key outcomes

11-week

delivery of a secure cloud foundation able to support a pilot migration  

Multi-account

 structure accommodating numerous government ministries

Secure

technical architecture supporting future cloud deployments

 

Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

 
  • Where they were
  • Where they are
  • Where they’re headed

Where they were

Looking for the “one way” forward after acquisition-fueled growth.

Albertsons is committed to “one way.” Meaning that, as large as the company becomes, it aims to remain unified in its vision and in the systems and tools that support it. 

Acquisition-fueled growth naturally opens the door to “many ways.” By 2019, different divisions and subsidiaries had their own back-office solutions. People, processes, and data were becoming more siloed.

A different kind of company might have assumed that decentralized processes are an acceptable consequence of multiple acquisitions. Or that you can’t be one of the biggest industry players and move with startling speed and agility when it comes to acquisitions. But accepting trade-offs like those is not the Albertsons way.

Company-wide opportunities

  • Replace nearly XX aging applications that differed across divisions and subsidiaries
  • Reduce manual, disparate processes freeing up more resources for advanced analytics
  • Enable enhanced reporting and make it more widely available across the enterprise
  • Act with greater speed and agility to capture value in acquisitions

Finance Opportunities

  • Process XXX,XXX transactions per month with greater efficiency
  • Reduce 10,000+ manual journal entries per period
  • Decrease >3-week close
  • Shorten the >3-month annual budgeting cycle
  • Provide better support for a growing e-commerce busines
  • Control rising finance function costs and derive greater value 

HR Opportunities

  • Decrease hiring and onboarding times to keep pace with staffing needs
  • Be more efficient in complying with more than 800 collective bargaining agreements and dozens of government contracts
  • Introduce enterprise-wide training programs
  • Unify and automate workforce administration processes across the enterprise

Where they are

290,000+ Albertsons employees come together every day in the cloud.

Today, cashiers at 2,200 stores all log their hours via the same mobile app. That data flows seamlessly to payroll, and across the enterprise-- where it’s available for everyone from store managers making data-driven staffing projections to CFOs reviewing budgets.

Back-office staff spend less time on manual processes and more on analyzing data in ways that help lower costs and improve performance every day, and inform due diligence during acquisitions.

HR executives and business managers find it easy to access candidate information, share observations and schedule interviews, quickly and easily moving the right candidates through the hiring process.

And candidates who become new hires, continue through the same efficient, cloud-based environment as they complete onboarding and get to work—already a part of Albertsons’ “one way.” 

Company-wide success

  • Installed a single, modernized digital platform serving the entire enterprise
  • Accelerated the project schedule by XX-months due to a dual-installation of Finance and HR
  • Migrated 290,000 employees from legacy systems to Oracle Cloud
  • Increased insight-driven decision making across functions, driving performance and growth gains

Finance Successes

  • Decreased balance sheet reconciliations by 85%
  • Achieved a consolidated retail and corporate close within a shortened period
  • Reduced the types of P&L statements from 100+ to 4
  • Reduced operations costs across the board
  • Enhanced availability of data-driven insights that help to capture maximum value during acquisitions

HR Successes

  • Installed an automated, central solution to efficiently administer 800+ complex union agreements for all employee populations
  • Deployed a custom application for union rule processing enabling a single HCM platform to administer benefits to all employee populations
  • Created a digital-first, digital anywhere experience resulting in higher employee engagement
  • Reduced new hire onboarding time
  • Reduced the time it takes to fill staffing vacancies
  • Streamlined and improved the process integration of new employees post-acquisition
  • Integrate processes and technology across the employee lifecycle from recruiting through compensation and performance

Where they’re headed

Making sure the “one way” continues to be the best way.

Long before the go-live date, Albertsons was collaborating with Oracle and KPMG about future initiatives. They wanted to know what to expect from upcoming product releases and how they should be planning to leverage new functionality.

The company’s agile mindset combined with its investment in Oracle Cloud and KPMG Powered Enterprise will keep it in a position to continue evolving, always finding the best way forward as one, strong enterprise.

Company-wide vision
  • Continue to enhance analytics-driven planning and forecasting
  • Optimize the supply chain

Finance Vision

  • Achieve a continuous, virtual accounting close
  • Increase data monetization 

HR Vision

  • Migrate payroll, benefits, and absence mangement to Oracle cloud for 2023
  • Insource benefits administration

The government’s quick, decisive actions helped lead to the successful creation of a cloud foundation in a fraction of the time it typically takes.

 

How KPMG delivered a cloud foundation in just 11 weeks

Click on a phase to scroll down to its description.

     
     
     
     
     
     

1. Planning phase


Drawing on our broad experience to solve a highly specific set of challenges

KPMG drew on four of our member firms (in the U.S., Germany, Israel, and India), and on four key service lines to assemble a team with the skills and experience to meet the Israeli government’s needs.

Core team members had extensive experience in cloud foundation architecture for large government projects, multi-cloud development, migrations, and environment security. We also delivered artifacts, IaC/PaC templates, and playbooks that have been continuously updated and codified over multiple engagements. As a result, our team was able to mobilize quickly, integrate seamlessly with Israeli government teams, and rapidly assess the current- and future-state requirements.

After gaining a clear understanding of the government’s needs and establishing a high-level architecture, we assigned tasks across three, 3-week sprints focused on iteratively enhancing the cloud foundation and its capabilities. 

Once we had gathered technical requirements including networking and security, logging, monitoring, and alerting, and regulatory requirements, we began extensive design sessions across key domains including governance, security, and networking.
 

2. Design phase 


Setting up the basic cloud foundation structure

We got to work setting up a structure that would support the more basic cloud foundation needed in the short term, and provide a strong foundation for a fully enabled, production-ready migration factory.

Security was among the top priorities. We reviewed baseline security controls and provided a framework that encompasses leading practices based on standards developed by the National Institute of Standards and Technology (NIST), the Center for Internet Security (CIS), and the cyber security experience and insights KPMG has developed working with numerous clients.

Security controls must be closely aligned to an organization’s needs. Developing them from the ground up can be time-consuming. However, KPMG has defined and continuously refines more than 100 Google Cloud security controls. Drawing from this robust library of predefined controls, and employing the MoSCoW prioritization method (must-have, should-have, could-have, and would-have), we were able to rapidly align a precise set of controls to the Israeli government’s security standards, requirements, and framework. This included enabling Single Sign-On (SSO) and Multifactor Authentication (MFA) using Google Cloud.

We also established a resource hierarchy (folders/projects) and centralized billing, enabled a role-based model to enforce separation of duties and management of privileged access, and provided and end-to-end and observable network topology to help ensure secure connectivity between platforms, services, and users.

3. Build and deploy phase


Leveraging leading practices to put cloud foundation and governance and processes in place

KPMG draws upon leading practices from within our own client base and from organizations around the world to design processes and policies.

After developing IaC to deploy cloud foundation features based on the design and technology specifications collected from our client, we then worked closely with them, iteratively reviewing and executing code. The goal was to empower the Israeli government to execute a continuous deployment using internal resources after the pilot migration.

4. Validation and hypercare phase


Helping to ensure a smooth landing for the pilot and subsequent migrations

As with all phases of the project, this last one required creativity to meet the aggressive timeline without sacrificing capabilities or performance.

Validation

Typically, KPMG would validate all security baseline controls for configuration and effectiveness and then share the results with our client. They would then validate the controls using their own criteria. This can be a time-consuming process. So, instead, we used a rolling approach—completing and validating one set of controls and handing it off to the government for review before proceeding to the next set. This allowed our two teams to work in tandem. Also, we provided the government with documented validation steps so they did not have to create their own—further accelerating the process. Lastly, while we validated all controls for configuration, simulating all controls for effectiveness wasn’t feasible. Instead, we selected a subset and performed showbacks to demonstrate effectiveness. We followed similar validation processes for policies, groups, roles, etc.

Hypercare

Hypercare involved two go-lives. First, we conducted a soft launch involving all core cloud foundation capabilities that did not require internet access. This allowed the technical team to start using the provisional cloud foundation at the seven-week mark, providing ample time to test, validate, and report issues. We resolved these issues, added enhancements including internet access, and then completed the second go-live, confident that the cloud foundation MVP we had built would perform as planned and meet the government’s needs.

 

Turning insights into opportunity

A breadth of resources across the world helps KPMG address your specific challenges

It’s not only the breadth of experience and resources we have, but the connections between them that allows KPMG to assemble the kinds of teams that can take on the most daunting challenges. For example, to help meet the government of Israel’s needs and timeframe, we tapped a KPMG specialist who had helped architect a similar cloud foundation. That KPMG specialist tapped others with deep insights into multi-cloud development, migrations, environment security and, of course, Google Cloud. Tell us about the challenges you’re facing, and we’ll show you the team that can help solve them.

When data silos, manual processes, and fragmented reporting capabilities are left in place, you sacrifice speed and agility. And when you rely only on internal data, instead of leveraging third-party sources, you reduce your insight into shifting consumer demands and market opportunities. Rapidly integrating financial operations, establishing healthy data ecosystems, and optimizing reporting environments are all key to the kind of insight-driven decision-making that helps capture optimal value from every deal.

At KPMG, we know financial operations and data and analytics. We know the CPG industry. And we’ll get to know you. Then we can work together on transforming your business.

  
 

We can show you the way to faster, more efficient cloud migration.

If your organization is making a move to the cloud, talk with us first about the best path to take and what to watch out for on the way.

David Bar

David Bar

Principal, Head of Cloud , KPMG Israel

+9 725-091-65375
Vinodh Swaminathan

Vinodh Swaminathan

Global Lead Partner & Principal, KPMG US

+1 203-940-1284
Mahendra Kalidindi

Mahendra Kalidindi

Director Advisory , CIO Advisory, KPMG US

+1 973-912-6234