leveraging erp investments with oracle hyperion pm applications

Leveraging ERP Investments with Oracle Hyperion Performance Management Applications


John O’Rourke and Nigel Youell – OracleBrannon McDaniel – HealthSouth, Omnicare

Agenda

• EPM Vision - Where to Begin?D li i W ld Cl EPM• Delivering World Class EPM

• Customer Example - HealthSouth• Summary and Questions


Agenda


• Customer Example• Summary and Questions


Management ExcellenceThe Next Competitive Edge

Smart – Deep InsightA il D i i A tiThe Next Competitive Edge

CompetitiveAdvantage

Agile – Decisive ActionAligned – Across the Extended

EnterpriseAdvantage

MANAGEMENT EXCELLENCE

C t L d MCost – Lean and MeanQuality – Six Sigma, TQMSpeed – Real-time, JIT

Ti

OPERATIONAL EXCELLENCE


Time

Today’s RealityManagement Processes are FragmentedManagement Processes are Fragmented

VARIANCE ANALYSIS $€£ ¥OPERATIONAL

PLANNING

€£ ¥• Lack of business

alignment

L di t bilit i

EVA

ANALYZE PERFORMANCE

GOAL SETTING

FINANCIAL MODELING

• Low predictability in performance

• Inconsistency in business

SCORECARDS FINANCIAL REPORTING

ROLLING MONITOR

decisions


ROLLING FORECAST

MONITOR RESULTS

Management ExcellenceWhere to Begin?Where to Begin?

Financialg

Financial Close Management

For Statutory FilingsFinancial Consolidationec

ardi

ngPlanning

recast Scor

e

Management ReportingProfitabilityDisclosureci

al

tics

Planningting

Strategic Statutory Reporting

DisclosureManagementFi

nanc

Ana

lyt


Planning Statutory Reporting

“Clients that have established CPM solutions for BP&F and reporting are now increasingly looking at strategy management and profitability modeling to increase the g y g gy g p y gsophistication and scope of their solutions; first-time adopters are also investigating the higher value of these less-adopted CPM components. Hence, there is still a significant and growing demand for CPM solutions.”g g

Gartner, Magic Quadrant for Corporate Performance Management Suites, 8 March 2011 Neil Chandler John E Van DeckerNeil Chandler, John E. Van Decker


Agenda




Market Challenges in 2011

• Shifting focus from cost-cutting to growth

• Navigating market volatility• Need for more accuracy in planning &

forecastingforecasting• Increasing demand for transparency• Transition to IFRS• The XBRL Mandate• Sustainability Reporting


5 Steps to World Class EPM

11 Streamline the Financial Close

22 Align Planning Processes

33 Integrate Management and Operational Systems

44 Standardize Information Delivery


55 Leverage Advanced Analytics


Financial CloseBest Practices


Best Practices

• Orchestrate the extended financial close process • Ensure financial data quality• Ensure financial data quality• Improve transparency• Automate reporting p g• Reduce the cost of compliance


The ‘Extended’ Financial Close Process

Close sub ledgers into Deliver self service Automate and Gather and validate GL (AR, AP, FA, etc.) financial reporting to

the organizationdeliver external & statutory filings

complete data sets to support all financial reporting needs

Sub Ledger Close General Ledger Close

Data Assurance Consolidation

Internal Management

Reporting

External Financial Reporting

Filing

Perform Reconciliations and Post Accruals

Create external reports with disclosures and financial data

Automate consolidated financial reports leveraging multiple hierarchies and calculations


Implementing a World Class CloseOracle’s Hyperion Financial Close SolutionsOracle s Hyperion Financial Close Solutions

Finance Dashboard

Financial Close Management

Governance, Risk & Compliance

FinancialConsolidation

DataAssurance D t

ERP: Oracle, SAP,

O h

TaxFiling

TaxCalculations

ConsolidationAssurance DocumentManagement

& Filing

Financial &Mgmt. Reporting

Legacy, Other

Transactions Reporting


Transactions Reporting

Oracle Financial Management Analytics• OBIEE-based dashboards for consolidated financial data

and close process metrics• First in a family of OBI applications for EPM analytics• Packaged analytics are configurable and extensible• Packaged analytics are configurable and extensible

• Direct, native access to data in: • Oracle Hyperion Financial Management• Oracle Hyperion Financial Close Management• Oracle Hyperion Financial Close Management

• Enables mobile delivery of EPM data finance executives and business users

Advantages:• Provides unified Insights into financial results and close process status• Leverages investments in Hyperion financial close applications• Deploy quickly with packaged analytics and out of the box integration


Deploy quickly with packaged analytics and out of the box integration

Oracle Hyperion Financial ManagementSustainability Reporting Starter Kit

Capabilities– Collects and Consolidates Data from Multiple Systems – Ensures the Accuracy and Auditability of Sustainability Reports

Sustainability Reporting Starter Kit

y y y p– Aligns Sustainability Reporting with Financial Reporting

Key Features GRI based Chart of Accounts and Task Lists– GRI-based Chart of Accounts and Task Lists

– Pre-Built Web Data Entry Forms, Direct Data Integration– Pre-Built Conversion Calculation Rules– Full audit trail, process management and security

Advantages– Single system for financial and non-financial reporting– Leverage existing investments in Hyperion Financial Management


– Deploy quickly with pre-built application

Integration with Oracle GRC SolutionsImprove Financial Governance and Controlp

Oracle Oracle/PSFT Financials

Oracle GRC Manager

Hyperion Financial

Close Suite Oracle/PSFT Financials

• Financial Audit Scoping Tool Blueprint– Integrate HFM account balance data into GRC Manager– Assess materiality of internal control issues and prioritize remediation

Oracle GRC Controls

• Segregation of Duties for Hyperion Blueprint– Single point of maintenance for users, groups, roles etc across ERP and HFM– Avoid potential violations in segregation of duties

• Financial Close Monitoring


• Financial Close Monitoring– Integrate manual and algorithmic checks into the close process

Enterprise Planning

• Best Practices22 Align Planning Processes

• Measure financial impact of business strategies• Validate operational feasibility of financial plan• Validate operational feasibility of financial plan • Evaluate impact on workforce and capital assets• Adjust the forecast continuouslyAdjust the forecast continuously • Manage risk and uncertainty


The Enterprise Business Planning Process

Run models based on key strategies to set

Validate operational feasibility to financial

Update forecast with latest budget and y g

targets

V lid t E l t M thl / U d t l

yplan

gactuals

Long-term strategic plan

Annual budget / plan

Validate operational feasibility

Evaluate workforce and

capital

Monthly / rolling

forecast

Update long-term strategic

plan

Seed targets to annual operating plan and start annual process

Update strategic plan with latest forecast

Evaluate resource and capital requirements


Assess and Manage Risk

Extend Planning Across the EnterpriseOracle’s Hyperion Enterprise Planning SolutionsOracle s Hyperion Enterprise Planning Solutions

Predictive Modeling & Simulation

Capital AssetWorkforce Long-Term Financial

Profitabilityand Cost

Functional Plans

ProjectPlanningp

PlanningPlanningFinancial Planning

and CostManagement

g

DemandPlanning

FinancialDetail

OperationalDetail

Planning, Budgeting & Forecasting


Detail Detail

Oracle Hyperion Public Sector Planning and BudgetingStreamline the Process and Improve Budget ManagementStreamline the Process and Improve Budget Management

• Packaged application for public sector organizations

• Support for management of complex budgetary processes

• High quality budget book• High quality budget book preparation

• Advanced position budgeting capabilitiescapabilities

• Bi-directional integration with ERP data sources


Oracle Hyperion Profitability and Cost ManagementImprove Insight into Profitability by Customers, ProductsImprove Insight into Profitability by Customers, Products

• Fast growing EPM application with g g ppsignificant new customer wins and deployments globally

• New for HPCM in release 11 1 2• New for HPCM in release 11.1.2– Expanded cost and revenue driver

functions– Improved model navigation– Significant performance gains


Oracle Crystal BallPlan in Ranges and Access Probabilities and SensitivitiesPlan in Ranges and Access Probabilities and Sensitivities

• Assign probability distributions to uncertain assumptions

• Run thousands of simulations• Analyze range of outcomes and

probabilities


• Assess model sensitivities

Linking Financial and Operational Planning


ERP Application IntegrationBest PracticesBest Practices


• Enable business user managed integration processes• Provide self service data investigation (drill back)• Provide self service data investigation (drill back)• Deliver full audit trails and reporting• Connect operational and management processesp g p


Data AssuranceEnabling Seamless Metadata and Data IntegrationEnabling Seamless Metadata and Data Integration

Data & Metadata

Oracle EBS, PeopleSoft, SAP R/3

Data Warehouse

Financial Close

Planning & Web Entry and

Analysis

Meta-data

Other Systems

Data Mart

DataStrategy

Management

ForecastingFinancial Reports

Mi ft Offi

y

File ExcelXML

y g

Profitability Management

Microsoft Office


XMLDrill-Through & Write-Back

Drill-through to General LedgerInsight into Action in a Single SystemInsight into Action in a Single System

Hyperion Financial ManagementHyperion Planning, Essbase

Hyperion FDM Oracle EBS, PSFT, SAP

Oracle Account Analysis and Drill-Down for both

Act al and B dget

JDE Enterprise One coming in FY2012


Actual and BudgetFY2012

Regulatory & Audit - Support & Reporting

• Integrated Control questions• Store current and historical mapping

d fi iti ddefinitions, docs• Mapping validation against

target system dimensions and write-back

• Data & meta data integrity checking against data validation rules

• Source financial documentarchivalarchival

• Prepackaged audit and internal control reports


PeopleSoft Financials IntegrationOracle Hyperion Financial Close Management

• Showcase key activities in a period close

• 40+ sample integrations with AP, AR, BI, AM and GL

• Integrations included• Integrations included– System Automated activities

• Run Final Depreciation Process

R AP A l P• Run AP Accrual Process

• Run Reconciliation Load

• Run Trial Balance Report

End User tasks– End User tasks• Review incomplete deposits

• Write‐Off uncollectable balances

• Review and correct match exceptions


Review and correct match exceptions

• Prepare manual adjustments

Information DeliveryBest PracticesBest Practices


• Common metadata management• Common reporting standards• Common reporting standards• Address diverse user requirements• Ensure security of informationy


Oracle Hyperion Data Relationship ManagementEnterprise Dimension ManagementEnterprise Dimension Management

• Oracle Hyperion Data Relationship Management is a “best of breed” solution:

M t d t– Mature product– Strong user base– Technology agnostic

Automation of dimension alignment:• Automation of dimension alignment:– Reduce manual efforts and errors– Increase data quality– Complete audit trail & “roll back”– Complete audit trail & roll back

• Business value:– Process alignment and simplification– Simplify system rollouts & maintenance


– Simplify system rollouts & maintenance– Close-cycle simplification

Oracle Hyperion Financial Reporting• Generally accepted accounting

principles compliant report production• Multiple output options (including Web,

PDF, and Microsoft Office)• Flexible scheduling• Alerts• Report annotations• Report annotations• Multi-format publishing• Financial close process integration• Disclosure management process

integration• Broad EPM and BI application support• Also part of Oracle Fusion Financials


Oracle Hyperion Smart View for Office Designed for the Business UserDesigned for the Business User

• Adhoc and Formatted Reporting• Data Entry and Apps Processing• Data Entry and Apps Processing• Excel, Word and PPT Integration• Manage Planning Tasks in Familiar

MS Office Environment– Task based workflow– Traffic lighting & data validationg g– Approval process management

• MS Outlook integration– Manage tasks from Outlook Calendar


– Manage tasks from Outlook Calendar

Integrated Suite of Tools Improves DecisionsOracle BI Foundation SuiteOracle BI Foundation Suite

Interactive Dashboards

Strategy MapsProduction Reporting

Predictive Analysis

Scorecards

Secure Search

Geographic VisualizationEmbedded in Applications

Office Integration

Ad-hoc Analysis

Business ProcessesT bl t


Scenario AnalysisMobileTablet

Advanced AnalyticsBest PracticesBest Practices


• Leverage pre-built applications with industry standard KPIs• Leverage pre-built integration with transactional systems• Leverage pre-built integration with transactional systems• Use the same technology to adapt and extend• Adopt enterprise-wide standardsp p• Provide flexible delivery options


Oracle EssbaseLeading Multidimensional OLAP ServerLeading Multidimensional OLAP Server

• Self-Service and Departmental Analysis– Forward-looking: Prediction & what-if analysis– Simple to model complex business scenarios– Sophisticated, cross-dimensional calculations– Procedural, financial, time series & custom calculations– Custom analytic applications

Multi user write back– Multi-user write-back• Best MOLAP Performance & Scalability

– Flexible storage – Block, Aggregate & Hybrid– Optimized load performance, trickle feedp p– High-availability clustering– Benchmarked sub-second response time with 20,000

concurrent users, 15 dimensions, 1 billion records• Integrated with Oracle BI and Oracle EPM


Integrated with Oracle BI and Oracle EPM– Shared metadata, calculations, dimensions, security

Oracle Essbase Analytics Link for HFMPowerful Analytics on Consolidated Financial Datay

• Delivers Essbase analytics on live HFM data– Extend the data model

Integrate additional data sources– Integrate additional data sources• Fulfill analytic needs with no impact on consolidation server

– More users, more reports, bigger queriesF t ti f– Fast reporting performance

• Simple and automated implementation– Real-Time or on-demand integration with HFM

Oracle Essbase Analytics

Link

HFM Application

Oracle


Essbase

Oracle BI ApplicationsPrebuilt Analytics for EBS, PeopleSoft, Siebel, JD Edwards, & SAPPrebuilt Analytics for EBS, PeopleSoft, Siebel, JD Edwards, & SAP

• Financials• HR

• Sales• Marketing

• Procure & Spend• Projects• Supply Chain

O d M t

• Service • Contact Center• Price

L lt• Order Management• Logistics

• Loyalty

• Financial ServicesC i ti• Strategy Management

• Planning & Forecasting• Profitability Management

Financial Close & Reporting

• Communications• Healthcare• Retail


Insert Information Protection Policy Classification from Slide 8

• Financial Close & Reporting

Oracle BI Mobile 11.1.1.5.0

• Built on OBIEE Foundation• Employs an embedded Dashboard approach

Supports Analyses Dashboards Publisher Reports Action– Supports Analyses, Dashboards, Publisher Reports, Action Framework, Scorecards, Alerts, Catalog Search

• Zero training to interact with data on mobile devices• Gestural interactions, orientation recognition, and layout

optimi ations for tablet and smartphone platformsoptimizations for tablet and smartphone platforms• Technical

– Available from Apple iTunes App Store– Devices supported: iPhone 3GS, 4, iPad– Hybrid Application

• Employs Webkit layout engine • Wrapped in a native iOS shell

– Integrated Security (SSL and SSO)


Insert Information Protection Policy Classification from Slide 8

Oracle’s Enterprise Performance Management SystemComplete Open IntegratedComplete. Open. Integrated.

ERP Analytics

Planning &Forecasting

Financial Close &

StrategyManagement

ProfitabilityCRM

AnalyticsIndustry Analytics/

EPM

App

s

Financial Close & Reporting

Profitability Management

y y

Interactive Dashboards Reports & PublishingQuery & Analysis Detect & AlertOffice Search Embedded Mobile Scorecards

M mBI A

BI Server

Common Enterprise Information Model

Essbase Dimension Management Predictive Analytics

BI/EPM

Platform

OLTP & ODSSystems

Data WarehousesData Marts

PackagedApplications

(Oracle, SAP, Others)

ExcelXML/Office

BusinessProcesses

OLAPSources

Exadata Unstructured & Semi-

Structured

Data

Sources


S

Program Agenda




5 Steps to World Class EPM


22 Align Planning Processes






Other Recommended SessionsSession Date/Time Title LocationSession Date/Time Title LocationTuesday October 4th01:15 PM – 2:15 PM

Oracle's Hyperion Applications: Strategy and Roadmap Westin St. Francis ‐ California West

Tuesday October 4th03:30 PM – 4:30 PM

Introduction to Oracle Hyperion Financial Close Suite – Customer Case Study: Enel Group

Westin St. Francis ‐ California West

Tuesday October 4th Better Together: Oracle Business Intelligence and Oracle Westin St Francis Elizabethan ABTuesday October 4th03:30 PM – 4:30 PM

Better Together: Oracle Business Intelligence and Oracle Hyperion EPM

Westin St. Francis ‐ Elizabethan AB

Tuesday October 4th05:00 PM – 6:00 PM

Introduction to Oracle Hyperion Enterprise Planning Suite ‐ Four Seasons Hotels

Westin St. Francis ‐ California West

Wednesday October 5th10:15 AM – 11:15 AM

What's New and What's Coming: Oracle Hyperion Enterprise Planning Suite

Westin St. Francis ‐ California East

Wednesday October 5th11:45 AM – 12:45 PM

What's New and Coming: Oracle Hyperion Financial Close Suite Westin St. Francis ‐ California East

Wednesday October 5th01:15 PM – 2:15 PM

Sustainability Reporting: Integrating with Financial Reporting Westin St. Francis ‐ California East

Wednesday October 5th Customer Panel: Better Together Oracle EPM and ERP Westin St Francis Elizabethan ABWednesday October 5th05:00 PM – 6:00 PM

Customer Panel: Better Together ‐ Oracle EPM and ERP Solutions: AT&T, Harris Corp, Aramark

Westin St. Francis ‐ Elizabethan AB

Thursday October 6th10:30 AM – 11:30 AM

Why Oracle EPM Matters to SAP Customers: Success Stories ‐ Customer Case Studies: PepsiCo, Pfizer and Hospira

Westin St. Francis ‐ Elizabethan CD

Thursday October 6th2 00 00

Better Together: Oracle Fusion Applications and Hyperion f li i

Westin St. Francis ‐ Elizabethan CD


12:00 PM – 1:00 PM Performance Management Applications

To Learn More about Oracle EPM and BI

DemoGrounds:Oracle EPM Applications – Moscone WestOracle BI Tech and Apps – Moscone South

J i th EPM & BI C ti b f d i dJoin the EPM & BI Conversation before, during and after the event: Twitter Hashtag #oowepmbi

Follow Oracle EPM and BI on Twitter @oracleEPMBI


Q&AQ&


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strategy management

management excellencewhere

world class epmd li

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