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EDGEWATER RANZAL
HPCM Management Ledger & FDMEE: The Perfect Partnership?
The Perfect Partnership?
Q&A
Conclusion and Final Thoughts
Prelude
Introduction
Edgewater Ranzal is a full-service Oracle Platinum Consulting Partner delivering premier services in the UK and North America
We deliver Business Analytics solutions that include Oracle Hyperion Enterprise Performance Management (EPM) and Business Intelligence (BI)
Our multiproduct focus offers domain expertise and technical leadership using the Oracle Hyperion Product Suite
We have industry expertise and specializations to help us deliver end-to-end solutions for each client’s business needs
Since 1996 Edgewater Ranzal have delivered in excess of 1700 projects for over 850 of our clients across the globe.
Ray Fevrier – Practice Manager • Functional Skill Areas
– Enterprise Performance Management (EPM)
– Business Intelligence– Metadata and Data Integration
• Technical Skill Areas– Essbase (BSO/ASO)– Oracle Data Integrator (ODI)– Financial Data Quality Management
(FDM/FDMEE)– Informatica (DIM)– Data Relationship Management (DRM)– Essbase Studio– Essbase Integration Services (EIS)– Hyperion Application Link (HAL)
• Industry Exposure– Utilities– Government– Telecommunications– Logistics/Transportation– Financial Services
Industry– Investment Industry– Healthcare– Manufacturing– Insurance
Andrew Laferla – Project Lead Consultant• Functional Skill Areas
– Enterprise Performance Management (EPM)– Activity Based Costing and Regulatory
Costing– Business Intelligence– Enterprise Planning and Budgeting
• Technical Skill Areas– Oracle (Hyperion)– Essbase (BSO / ASO)– HPCM (Hyperion Profitability and Cost
Management)– Hyperion Performance Scorecard (HPS)– Calculation Manager– Shared Services / EPMA – SmartView – CXO Cockpit
• Industry Exposure– Utilities– Government– Parastatal– Telecommunications– Logistics\Transportation– Financial Services
Industry– Investment Industry– Healthcare– Manufacturing– Insurance
The Perfect Partnership?
Q&A
Conclusion and Final Thoughts
Introduction
Prelude
Introduction
Problem Statement
FDMEE
Management Ledger
Problem Statement
• Organizations today live and die by the decisions they make. – Meaningful interpretation of the huge amount of organization data
into actionable information is of the utmost importance.– Their ability to control costs and generate sustainable, profitable
growth is imperative in creating shareholder value.
• Once the Financial Close Process has been optimized, finance has an opportunity to provide tremendous value to their internal business partners by facilitating and supporting the closed loop management disciplines of strategic planning, rolling forecasts & profitability analysis.
Problem Statement
• Organizations need information management solutions that typically contain the following key characteristics:
Flexibility
• Analyze different chargeback approaches to yield optimal mix of services versus costs incurred by the entity.
• Rapidly evolve methodologies as the business changes.
• Provide What-If Capabilities to assess impact of key business decisions on bottom line
Accuracy
• Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.
• Achieve this through meaningful allocations, automation, and system controls
Shared Methodology
• Define consistent allocation and charge back methodology across all management cycles.
• Ensures consistent comparisons when reviewing and updating methodology result and planning for future management cycles.
Transparency
• Give Units the detail costs they incur for the service consumed.
• Compare effectiveness of internal unit services with those of external providers to ensure efficiency.
• Allow LOB managers to understand cost to serve and profitability results.
Introduction
FDMEE
Problem Statement
Management Ledger
Oracle’s solution for enabling seamless Metadata (for EBS and PeopleSoft) and Data Integration Combines ERP Integrator (ERPI) and FDM into a single product
– Upgrades ERPI to FDMEE with FDM features added– Legacy FDM not available starting with release 11.1.2.4
Develop direct “out of the box” integration– Sources prioritized based on market demand
Open Interface Adapter– Use when “out of the box” integration not available– Licensing allows modification to ODI packages delivered with FDMEE
File
Other RDBMS
Oracle ERP, SAP
Data Strategy Management
Financial Close
Planning & Forecasting
Profitability Management
Financial Reports
Microsoft Office
Metadata & Data
Drill-Through & Write-Back
Web Interface
Meta-data
Financial Data Quality Management, Enterprise Edition
FDMEE – Main Product FeaturesSource System /Import Format
Define sources including files and ERPs, and then map the source columns/fields to dimensions in EPM applications
Mapping Rules Identify how source dimensionality translates to target dimensionality. This is the heart of the FDMEE application
Data Load RulesCreate an integration definition that can be reused each period. Uses a point of view specified by the user for period, category, etc.
Scripting Customize FDMEE processing using Jython or Visual Basic scripting
Reporting Modify seeded reports or create new reports using BI Publisher
Batch Processing Create batch definitions that can be scheduled and run in “offline” mode
Data Synchronization(New in 11.1.2.4)
Select EPM Applications as an integration source, including HFM journals
Data Synchronization
• ERP to EPM• EPM to EPM• EPM to ERP
– Write-back supports Budget or Actual
– EBS and PSFT only• Any Source to
Custom Application– Generates a file flat
ERP Sources
Profitability and Cost Management and
Essbase
HFM and Tax
Planning
Introduction
Management Ledger
Problem Statement
FDMEE
Hyperion Profitability and Cost Management
“Oracle Hyperion Profitability and Cost Management provides actionable insights into costs and profitability. It drives business performance by discovering the drivers of cost and profitability and empowering users to improve resource alignment. Oracle Hyperion Profitability and Cost Management leverages Oracle Essbase for faster, more powerful multi-dimensional analysis”
• HPCM has evolved over the years to include 3 separate modules:– Standard Profitability (Version 11.1.1.1)– Detailed Profitability (Version 11.1.2.2)– Management Ledger (Version 11.1.2.4)
• All HPCM modules have separate Use Cases but overlap in some critical areas.
HPCM - Modules
HPCM – Modules Differentiation
• Standard Profitability– Version 11.1.1.1– Focuses on contribution analysis, following the flow of cost and
revenue funds through all stages of the process to determine where funds are coming from, and where they are going.
• Detailed Profitability– Version 11.1.2.2– Provides a single-step allocation of pools or rates from a single
source to a destination for the purpose of analyzing profitability.– Detailed Profitability utilizes a relational database for model artifact
storage, calculations, and reporting views.
HPCM – Modules Differentiation• Management Ledger
– Version 11.1.2.4– Management Ledger applications are designed for
use by analysts who have deep domain experience in the computation and reporting methods of management reporting, but who may not have much experience with Essbase and scripting syntax or programming languages.
HPCM – Modules Differentiation
Model Complexity
Reporting and Analysis
Ease of MaintenainceEnd-User Focus
Data Volume Handling
Standard Profitability Management Ledger Detailed Profitability
Standard Profitability Detailed Profitability Management LedgerModel Complexity 5 2 4Reporting and Analysis 5 3 4Ease of Maintenaince 3 3 5End-User Focus 4 2 5Data Volume Handling 2 5 4
Introduction
Q&A
Conclusion and Final Thoughts
The Perfect Partnership?
Prelude
The Perfect Partnership?
Data Flow Overview
HPCM Management Ledger (Demo)
FDMEE (Demo)
Data Flow
Staging Area
Hyperion Workspace Hyperion Essbase
Smartview / FR
AnalyticsLayer Smartview
/ FRHPCM Analyst End User
HPCM Management Ledger
EPMA
Source Systems
HPCM Standard Model
HPCMASO
Reporting (ASO)
HPCMBSO
HPCM ASO
Color Scheme Metadata Load (ODI) Metadata (EPMA) Data Load (FDMEE)
Intra HPCM Management Ledger Data Flow
Source Data
• Multiple Source data systems including:• General Ledger and other ERP applications• Relational Tables (Driver and other Metric Tables)
Flatten
• Intrastage Profit Centre allocations to normalise ‘anchor’ Profit Centres to the relevant levels.
• Driver based on Source input.
Enrich
• Cross dimensional allocations from No_Region to multiple regions based on the cluster UDA.
• Driver based on Number of Customers.
Allocate
• Intra Stage Allocations to allocate Central Costs and Revenues from Central Profit Centres to other relevant Profit Centres.
• 3 Step Waterfall process.• Driver is percentage based.
PCM_MNT
The Perfect Partnership?
FDMEE (Demo)
HPCM Management Ledger (Demo)
Data Flow Overview
The Perfect Partnership?
HPCM Management Ledger (Demo)
FDMEE (Demo)
Data Flow Overview
HPCM Management Ledger (Demo)
Navigation
Managing Rules
Reporting
HPCM Management Ledger (Demo)
Navigation
Managing Rules
Reporting
Management Ledger – Navigation
• Simplified Task Area• Key Task Areas have fallen away
• Stages• Importing Staging Tables• Driver Definitions and Selections• Data Entry
• Simplified Rule Management
HPCM Management Ledger (Demo)
Managing Rules
Navigation
Reporting
Management Ledger – Managing Rules
Sets the context for ALL rules
Rule based context
Rules belonging to the selected Rule Set
POV Selection
Management Ledger – Managing Rules
Number that appears in Traceability Maps
Sequence of the Rule in the Rule Set
Allows for a flat percentage or amount to be allocated out
Available dimension after Global and Rule context
Member Selection which CAN BE A PARENT
Limited filtering based on UDA or member name
Management Ledger – Managing Rules
Management Ledger – Managing Rules
Similar functionality as in Standard HPCM
Member Selection which CAN BE A PARENT
Limited filtering based on UDA or member name
Management Ledger – Managing Rules
• No driver selections or exceptions section.
• By default at destination but can be set wherever relevant location.
Management Ledger – Manage Calculations
POV SelectionComments that appear in the Job Library
All Rules, a range of rules sets or a single rule can be run in at a single time
Validating Applications – Rule Balancing
Unallocated Amount
Amount Allocated Out Per RuleSet
RuleSet Name
HPCM Management Ledger (Demo)
Reporting
Navigation
Managing Rules
Reporting – Traceability Maps
Reporting - Flatten• Data is at the required level (Levelling/Normalisation):
• Data has been Allocated from ‘Anchor’ Profit Centres to all relevant Profit Centres based on initial Source data.
• Anchor Profit Centres are fully allocated out.• Total Profit Centre amounts remain consistent through each stage.
Reporting - Allocate• Data must be allocated from Back-End Functions to Front-End Functions.
• Data is allocated to Front-End Function based on a Percentage Driver• Anchor Profit Centres do not receive cost.• Total Profit Centre amounts remain consistent in through stage.
Reporting - Expand• Data must be expanded from No_Region to the appropriate Region.
• Data is expanded based on the Legal Entity ownership.• Data is expanded across Regions based on Customer Count.• Total Profit and Total RegionCentre amounts remain consistent in through stage.
Introduction
Q&A
The Perfect Partnership?
Conclusion and Final Thoughts
Prelude
Conclusion
FDMEE
• What it brings to the Party 1• What it brings to the Party 2• What it brings to the Party 3• What it brings to the Party 4• What it brings to the Party 5• What it brings to the Party 6
Management Ledger
• End User Focused Modelling – no technical learning curve.
• Fast Modelling Change Turn Around.
• Fully Traceable and Auditable Data Transformation.
Flexibility
• Analyze different chargeback approaches to yield optimal mix of services versus costs incurred by the entity.
• Rapidly evolve methodologies as the business changes.
• Provide What-If Capabilities to assess impact of key business decisions on bottom line
Accuracy
• Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.
• Achieve this through meaningful allocations, automation, and system controls
Shared Methodology
• Define consistent allocation and charge back methodology across all management cycles.
• Ensures consistent comparisons when reviewing and updating methodology result and planning for future management cycles.
Transparency
• Give Units the detail costs they incur for the service consumed.
• Compare effectiveness of internal unit services with those of external providers to ensure efficiency.
• Allow LOB managers to understand cost to serve and profitability results.
FDMEE and HPCM Management Ledger – Making a F.A.S.T approach even FASTER
Conclusion
Introduction
Conclusion and Final Thoughts
The Perfect Partnership?
Q & A
Prelude
Recommended