new methodology on using enterprise performance management
TRANSCRIPT
-
New methodology on using Enterprise
Performance Management
-
2
Oracles Enterprise Performance Management SystemComplete, Integrated, Open
OLTP & ODSSystems
Data WarehouseData Mart
PackagedApplications(Oracle, SAP, Others)
ExcelXML/Office
BusinessProcess
OLAPSources
Exadata Unstructured & Semi-Structured
BI Server
Common Enterprise Information Model
EssbaseDimension
Management
Predictive
Analytics
ERP
Analytics
Strategy
Management
Financial Close
and Reporting
Planning &
Forecasting
Profitability
Management
CRM
Analytics
Industry
Analytics
Interactive Dashboards
Reporting &Publishing
Ad-hoc Analysis
Detect& Alert
Office Integration
Search EmbeddedDataIntegration
Mobile Scorecards Collaborate
-
3
Oracle Hyperion EPM 11.1.2
Release Summary
Hyperion EPM R9.3 (2007)
Hyperion EPM R11.1.1 (2008)
Hyperion EPM R11.1.2 (2010)
Extend
Planning
Across the
Enterprise
Major Release of Hyperion Planning New Public Sector Planning & Budgeting module Enhanced Hyperion Profitability & Cost Management
application
Streamline
Financial
Close and
Reporting
New Hyperion Financial Close Management Application New Hyperion Disclosure Management Application New Oracle Essbase Analytics for Hyperion Financial
Management OBIEE and Hyperion Financial Management integration Integration between Hyperion Financial Management and
Oracle GRC
Deliver EPM
Value Faster,
Reduce TCO
Enhanced Hyperion Data Relationship Management module
Enhanced Oracle Hyperion EPM integration with Oracle Fusion Middleware
Enhanced Integration with Oracle E-Business Suite and PeopleSoft Financials and HCM
UPK pre-built content
3rd major release since acquisition
4 New Products
250 New Features
502 Customer-Driven Enhancements
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
4
End to End Close
-
5
Sub Ledger CloseGeneral
Ledger CloseData
AssuranceConsolidation
Internal Mgmt Reporting
External Financial Reporting
Filing
Close Sub Ledgers into GL (i.e. AR, AP, FA, etc.)
Perform Reconciliations
Bank Reconciliations
Standard Account Recon
Sub Ledger Recon
Post Accruals
Deliver self service reporting to the organization for performance discussions and plan realignment
Automate external reporting gathering disclosures and financial information
Automate and deliver Edgar & XBRL filings, Statutory filings, Tax, etc.
Gather and validate complete data sets to support all financial reporting needs (i.e. Legal Entity, Segment, Management, Tax, Sustainability Metrics, etc.)
Automate consolidated financial reporting leveraging multiple hierarchies and calculations (i.e. CTA, FASB, KPIs, FX, Retained Earnings, Topside Entries etc.)
Close Process and Key Activities
-
6
Sub Ledger CloseGeneral
Ledger CloseData
AssuranceConsolidation
Internal Mgmt Reporting
External Financial Reporting
Filing
Close Process Issues
Lack of visibility to tasks across financial systems, departments, regions, etc.
Manual spreadsheets are used to manage the financial close calendar
Hope and email are core to the process
Account reconciliations are managed manually
Task management is fragmented and manual
-
7
Critical Components to Implement
Financial Close Best Practices
FinancialConsolidation
DataAssurance Oracle Disclosure
Management
XBRL/SEC
Regulatory Reporting
Financial andMgmt. Reporting
ERP: Oracle, SAP, Legacy, Other
TaxFiling
Oracle Financial Close Management
CFO Dashboard
TaxCalculations
Transactions Reporting
Governance, Risk & Compliance
-
8
Streamline the Extended Close Process
with Financial Close Management
Close Process Analysis,
Trending and Improvement
Process Monitoring
Active Calendar
Single Task List
Automated workflow
Ensure Compliance
Email Notifications
Account Reconciliations *
* Delivered in V2
-
9
TASK MANAGEMENT
PROCESS MONITORING
ACCOUNT RECONCILIATIONS *
ACTIVE CALENDAR
Active integration with EPM and ERP systems
Executive Dashboard Views
Centralized web based task management and collaboration
Automation through matching capabilities and integration with all sources
Oracle Financial Close Management
Streamline the Extended Close Process
* Delivered in V2
-
10
Key Benefits
Financial Close Management
Collapse activity timelines by removing process windows
Balance and evaluate workload across resources
Integrated Close solution from Sub Ledger to Regulatory
Filings *
FCM delivers process visibility and task management across
close
Delivers process risk assessment in near real-time *
* V1 Full EPM integration, ERP integrations are limited to url and web service, V2 ERP complete
-
11
HFM 11.1.2.2
Configurable Dimensionality
Unlimited Custom
Dimensions
Additional custom
dimension to existing
application
Ability to configure size of
custom dimension
Flexible dimension name
and alias for custom
dimension
-
12
* Available with 11g
Hyperion Financial Management 11.1.2.1 OBIEE
connection to HFM
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
13
Create and populate relational tables with the HFM
data
Complete star schema with metadata tables
Fastest HFM extraction with flexible selection logic
No impact on the consolidation servers during extract
Essbase Analytics Link for HFM (EAL)
Near Real Time
Synchronization
HFM Database
Server
D
W
Fast
Extract
ETL
Relational
Star Schema
Other
Sources
-
14
Sub Ledger CloseGeneral
Ledger CloseData
AssuranceConsolidation
Internal Mgmt Reporting
External Financial Reporting
Filing
Document Management and Creation Issues
Manual management and creation of critical documents (Debt Covenants, 10Q/K, Board Package and Presentation, etc.)
Gathering and managing commentary is manual
Adjustment of financial data is manual
MS Word documents sent to 3rd party who reformats and files with EDGAR (error prone)
MS Word files are converted to XBRL by 3rd parties or manually (error prone)
Adhoc process and limited control
-
15
Ensure High Quality Report Submission
with Disclosure Management
Collaborative document
creation *
Document Versioning *
Workflow and approvals *
MS Office centered
Multiple report formats
(Edgar, XBRL, etc.) *
Embedded XBRL
Seamless Data Integration
* Delivered in V2
-
16
Oracle Financial Close Analytics Dashboard*
Pre-Built Analytics to reduce complexity and TCO for
our customers
Extend Applications with Best in Class BI Technology
Integrate BI with HFM
and FCM
* To be released
1
2
3
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
17
Financial Close Analytics Dashboard Contents
Executive Gross profit by Region, Income by Region, Net Cash Flow, P & L by products
Process Management PM Metrics, PM Trend Analysis, PM Overall\Entity Status
Financial Close Schedule Summary Schedule Summary, Schedule Graph, Schedule Milestones\Roadblocks
Performance Indicators BS Ratios YoY comparison table, BS Ratios components, BS Ratios Trend Analysis
Profit and Loss Summary Income Statement, Variance Analysis, Trend Profit and Loss
Gross Profit Variance Analysis, Gross Profit by Product, Trend Gross Profit
Balance Sheet Consolidating BS, BS metrics, Variance Analysis, Trend BS
Cash Flow Cash Flow Summary, Consolidating Cash Flow, Variance Analysis
Currency Analysis P & L Variance Analysis, BS Variance Analysis, CF Variance Analysis
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
18
First to Report on the Dow Jones
Before
20 days to close
Lengthy year-end reporting
Costly financial reporting
process
78 charts of accounts
Widely varying reporting
definitions and procedures
After
5 days to close
Global consolidation across 58
lines of business
Global forecasting and reporting
solution for 1,000+ users
Minutes to access information
The worlds leading producer of primary aluminum with $23.5 billion in revenues with operations in 43 countries and 350 locations. Alcoa has over 131,000 employees.
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
19
End to End Planning
-
20
Critical Components to Implement
Planning Best Practices
Copyright 2010, Oracle and/or its affiliates. All rights reserved.
Capital AssetsPlanning
Workforce Planning
Long-Term Financial Planning
FinancialDetail
OperationalDetail
Predictive Modeling & Simulation
OperationalRevenue & Cost
Modeling
Planning, Budgeting & Forecasting
Functional Plans
ProjectPlanning
MarketingPlanning
-
21
Financial Modeling is Highly Fragmented
Complex spreadsheet models
No consolidated view
Spreadsheets are error prone
Limited accounting integrity
Lack of integrated models make
scenario analysis cumbersome
Long simulation times
Treasury
Board of DirectorsSenior Management
Banks Investors AcquisitionsDivestitures
Long-Term Planning
Corporate Development
-
22
Critical Components to Implement
Strategic Planning Best Practices
Predictive Modeling & Simulation
CorporateDevelopment
Value Management
Long-Term Financial Planning
Treasury Strategies
Planning, Budgeting & Forecasting
What-if Analysis
-
23
Pre-built Financial Logic & Forecast Tools
Pre-built, fully integrated financial statement foundation
Pre-built forecast methods and formula functions
What-if Analysis toolkit
Consolidation intelligence
User-defined reports for benchmarking analysis
-
24
Investment Analysis Tools
Pre-built valuation logic
(NPV, IRR, etc.)
Purchase accounting for
acquisitions
Goal-Seek
Movable Deal Period
Include/Exclude option
Fiscal year-end conversion
Divestiture logic
-
25
Treasury Toolkit
Calculates net cash
surplus or deficit from
multiple models and
scenarios
Funding Options tool to
re-allocate surpluses and
fund deficits
Debt scheduler
User-defined reports to
monitor covenants, credit
ratings, and earnings per
share
-
26
Apply Monte Carlo Simulation To Measure the
Effects of Uncertainty
Assign probability distributions to uncertain assumptions
Run thousands of simulations
Analyze range of outcomes and probabilities
Assess model sensitivities
-
27
Align Planning Processes
Corporate
Development
Long-Term
Planning
Value
Management
Treasury
Strategies
Seed Budgets with
Strategic Targets
Update
Strategic Plans
with Latest
Forecasts
Periodic
Forecasts
Annual
Budget
Capital
Planning
Workforce
Planning
Strategic Planning
Planning, Budgeting and Forecasting
-
28
Measure the Financial Impact of Key Business
Strategies
1 Project anticipated financial results
3 Optimize capital structure
5 Revise forecasts from detailed business plans
2 Invest/divest for future growth
4 Manage risk and uncertainty in your plans
-
29
Overcome A Financial Crisis
$22 Billion global provider of power and automation technologies
Before
Lost investment-grade credit rating
Needed to recapitalize balance sheet
No cash flow modeling capability
No simulations at the divisional or
business unit level
After
Credit rating back to investment grade
$4 Billion debt restructuring
Simulate capital structure and cash
flow
97% accuracy in net income projection
Copyright 2009, Oracle and/or its affiliates. All rights reserved.
29
-
30
Robust End User Experience
Hyperion Planning 11.1.2
Powerful Process
Management
Validation of plans including
color coding, notifications and
approvals
Sophisticated Web and MS
Excel capabilities
Comprehensive support for
MS Office; Excel, Word,
PowerPoint and Outlook
Task Lists and user actions
within MS Outlook and Excel
Enhanced reporting and
budget books
-
31
Hyperion Planning 11.1.2.2
Web Forms with Graphs
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
32
Hyperion Planning 11.1.2.2
New Predictive Planning Capability
Statistical-based forecasting
is a feature, not a stand-alone
product
Usable by all business
planners
Leverage proven methods
and techniques
Improve accuracy through
rigor and standardization
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
-
33
Profitability and Cost
Management
-
34
Others require analysis to appropriately assign
MaterialDirect Labor
What are the Contributors of Cost?
Some are obvious and relatively easier to assign
Production Overhead
Product Management
Customer Service
Administrative Support
Quality Service
Sales/ Marketing
Support
Organizations are seeking flexibility to assign and transform these costs!
Utilities
-
35
Supports all Levels of Costing and Profitability
Objectives
Cost, Revenue and Profitability Analytics
Cost and Profitability Reporting
Cost and Revenue Allocation
Calculations
AllocatePerformance Improvement
Cost and Profitability Simulation
Analyze
Who are the most and least profitable customers?
Why are customers profitable or unprofitable?
What can we do to improve the situation?
What is a customersprofitability?
-
36
Critical Components to Implement
Profitability and Cost Management Best Practices
Cost, Revenue and Profitability Analytics
Cost and Profitability Reporting
Cost and Revenue Allocation
Calculations
AllocatePerformanceImprovement
Cost and Profitability Simulation
Analyze
Profitability and Cost Management
Common Reporting & Interaction
-
37
Key CapabilitiesImprove Profit Decisions Through Better Visibility
A business user application to
build models that:
Accurately assign, measure, and
manage costs and revenues
Use any methodology to transform
financial data through multiple stages
Compute costs and profitability for
multiple business objectives:
Customers, products, services,
activities, etc.
Use scenarios to evaluate alternate
approaches
Leverage Essbases powerful
reporting and analysis
-
38
Multi Stage Up to 9 Stages
3 dimensions per stage
Intrastage supported
Direct Contribution data always
generated
Genealogy optional
Layers for Cost and Revenue
Detailed Profitability 2 Stages
5 Dims Source, 20 on destination
Intra-stage not supported in this
release
Direct contribution data optional
No Genealogy
No Layers any financial
element type allowed
Copyright 2011, Oracle and/or its affiliates. All rights reserved.
HPCM 11.1.2.2
Multi Stage vs. Detailed Profitability
-
39
Financial Healthcare Comm &
Media
Hi-Tech
Mfg &
Distribution
RetailDefense /
Govt / Non
Profit
Services
HPCM usage in MY vertical is already a realityHPCM has over 70 customers now
-
40
Data Relationship
Management
-
4141
Data Governance
Operational
Systems
PeopleSoft
Siebel
SAP
Custom Apps
External AppsBudgeting
Analytical
Systems
DW
BI, Datamarts
Planning
Consolidation
Oracle Fusion Middleware
Application Integration Architecture
Analytical
MDMOperational MDM Apps
Cli
en
ts
Su
pp
lie
rs
Fin
an
ce
, K
PIs
OracleDRM
Oracle
Customer Hub
Dim
en
sio
ns
Em
plo
ye
es
Oracle
Product Hub
Pro
du
cts
Eq
uip
em
en
t
Sit
esOracle
Site Hub
Data Relationship Management (DRM)
The most complete MDM offering in the market today
-
42
Typical Dimension Maintenance
The business problem
EssbaseEssbaseBusiness
Intelligence
Planning
Corp
Oracle
APAC
Custom
LATAM
Peoplesoft
EMEA
SAP
E-Mail
Review
Spreadsheet
ETL
EAI
Accounts
Entity
Cost Center
Product
Location
Channel
DW
Spreadsheet
BusinessUser
IT Admin
OracleAdmin
PlanningAdmin
EssbaseAdmin
Analytic Applications Different people involved
Inevitable manual processes
Error-prone, inconsistent
No way to audit
No way to rollback changes
Time and resource consuming
Updates interpreted by systems experts
-
43
So What is the Business Impact?
Business measures that should be the same are not
Uncertainty on accuracy of reporting
Uncertainty if discrepancies are caused by bad data, different definitions, human error
Month after month, expensive time and effort spent researching and reconciling
Audit / compliance difficulty, compliance implications for legal reporting
EssbaseEssbaseBusiness
Intelligence
Planning
Corp
Oracle
APAC
Custom
LATAM
Peoplesoft
EMEA
SAP
ETL
EAI
Accounts
Entity
Cost Center
Product
Location
Channel
DW
BusinessUser
Analytic Applications
YTD
Revenue
$13,500,322
YTD
Revenue
$12,994,332
YTD
Revenue
$13,509,999
YTD
Revenue
$13,599,322
YTD
Revenue
9,322,219?
?
?
-
44
EssbaseEssbaseBusiness
Intelligence
Planning
Corp
Oracle
APAC
Custom
LATAM
Peoplesoft
EMEA
SAP
ETL
EAI
Accounts
Entity
Cost Center
Product
Location
Channel
DW
Analytic Applications
Enterprise Dimension Management
The Hyperion DRM solution
Hyperion DRM
BusinessUser
Publish changes for each specific consuming system as needed, when needed
Each system receives required content and structure
Alignment of accounts trees assured
Same process can be leveraged for other dimension
-
45
Governed Dimension MaintenanceHigh maturity
Enterprise Applications
CC
GL
Org
En
tity
Tim
e
Pro
d
G/L Planning Consol Reporting Analytics DW
Hyperion DRM
Standard user interface for all dimension maintenance
Enterprise dimensions aligned consistent processes delegated governance
-
46
G/L System
Oracle
Hyperion DRM
G/L System
Co
nso
lid
ati
on
Rep
ort
ing
Data
Ware
ho
use
Systems of entry:
For G/L accounts: G/L System
For all other dimensions: Oracle Hyperion DRM
Oracle Hyperion DRM is System of Record for all
Dimensions
High-level architecture
System of record, system of entry?
Oracle
Hyperion DRM
G/L
Syste
m
Co
nso
lid
ati
on
Rep
ort
ing
Data
Ware
ho
use
Oracle Hyperion DRM is:
System of Entry
System of Record
-
47
FINANCIAL SERVICES
Mature Product, widely deployed
PUBLIC SECTOR LIFE SCIENCES AND HEALTHCARE
RETAIL
HIGH TECHNOLOGY
MANUFACTURING & DISTRIBUTION
COMMUNICATIONSMEDIA & UTILITIES
http://www.symantec.com/index.jsphttp://www.dell.com/content/default.aspx?c=us&cs=19&l=en&s=genhttp://en.wikipedia.org/wiki/Image:Raymond_James_Logo.JPGhttp://en.wikipedia.org/wiki/Image:Logitech_logo.pnghttp://www.officedepot.com/index.do;jsessionid=0000kbQutKXlIT7IenmMakVbuqX:10gg9eb56http://www.mtn.co.za/default.aspx
-
48
Oracle's [Hyperion] Data Relationship Management solution
provides one single application interface that enables
centralized business maintenance of Dell's master data and
global hierarchies. Data is now governed and distributed
from one source which promotes consistent and reliable
reporting across the organization
Kristin Pollock, Product Manager, Global Finance, Dell Inc
What Dell Is Saying
-
49
Enabling Consistent Reporting
Oracle Hyperion Data Relationship Management
$60+ billion technology company
Over 82,000 employees
EBS Financials & Teradata warehouse
Before
Reporting hierarchies created
redundant, inconsistent data
structures across applications,
regions, and segments, resulting in
various versions of the truth
Decentralized technology structure
requires independent maintenance
processes and onerous
synchronization routines
Dell data warehouse and financial
management system overloaded as
reference data sources
After
Implemented Hyperion DRM to master
chart of accounts, entities, accounts,
projects, & products
Provides a single, scalable
maintenance interface to support
10,000+ changes each month to
Dells global hierarchies
Enables consistent distribution of
reporting master data
Enables global visibility, reduction in
manual processes, improved data
integrity, reduced reconciliation effort
-
50
Summary
-
51
Oracle EPM Connects Management Processes
Common Integration & AnalysisData Quality and Consistent Dimensions
Common Reporting & Interaction
Strategy Management
Financial Close
Planning & Forecasting
Profitability Management
-
52
Oracle Hyperion EPM Applications RoadmapPlanned content highlights
Hyperion EPM 11.1.2.2
Hyperion Planning
PSB Commitment control
Predictive Planning
Project Planning module
HSF Smart View
Hyperion Financial Management
Configurable Dimensionality
Financial Close Analytics
Dashboards*
Financial Close
Account Reconciliations
EBS/Fusion Integration
Disclosure Management
Edgar-ready format*, SEC validation*
Collaborative document authoring
Profitability & Cost Mgmt.
Micro-costing
Hyperion EPM 11.1.2.1 Available
Upgrade from prior releases
iXBRL HMRC Income Tax Returns
PSFT & Financial Close Mgt. integration
Hyperion EPM 11.1.2
New Financial Close Mgt. Product
New Disclosure Mgt. product
New Public Sector Budgeting module
Hyperion Planning
Configurable & data driven workflows
Conditional formatting
Smart View extensions
Oracle tech stack optimization
Available
FY13FY12FY11
* Available earlier
Target end CY11
"This information is not a commitment to deliver any material, code, or functionality. The development, release,
and timing of any features or functionality described remains at the sole discretion of Oracle"
-
53
Become A World Class EPM Organization
Define and communicate your
strategy
Shorten the close process
Improve your planning and
forecast processes
Extend your profitability and
analytic capabilities
-
54