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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability & Cost Management Cloud Service: Have It Your Way

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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Celebrating twenty years of Integrated

Business Analytics Solutions

ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA

Profitability & Cost Management Cloud ServiceHave it Your Way!

Bart Stoehr – Sr. Product Director, Oracle

Mike Killeen – Sr. VP Technology & Strategy, Edgewater Ranzal

ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA

Introduction to Edgewater Ranzal

3

Oracle Platinum Consulting Partner - 100% Focus on Oracle Business Analytics (EPM/BI/Big Data)

200+ Full time EPM/BI/Big Data Billable Consultants throughout the US, Canada and the United Kingdom

EPM & BI Experience & Success

2,000+ Oracle EPM, BI, & Big Data projects successfully delivered since our founding in 1996

Depth & Breadth of Service Offerings

Product Experts across:EPM Suite - Planning, HFM, HSF, HPCM, DRM, FDMEEBusiness Intelligence – OBIEE, EssbaseBig Data – Big Data Discovery, Endeca Information Discovery, Hadoop and EBS Information Discovery

Visioning & Roadmaps, Full Life Cycle Implementations, Tech Review & Assessments

Additional Value Added Service Offerings

Exalytics – Installation, Configuration & Benchmarking Services

Infrastructure Services – Design, Configuration, Performance Tuning & Upgrades

Support Services – Remote Help Desk, Lev 1 Support, Patch release Support

Training Services - Customized and Pre-Packaged EPM/BI Training Delivery

2 Ranzal Oracle ACEs Across EPM/BI Platform (Planning/BI, HFM & FDMEE)

Co-Development Efforts with Oracle Product Management

Customer Advisory Boards, Beta Testing, Certification Exam Development

Workforce Planning

Balance Sheet Planning

Capital Planning & PFP

HFM

Financial Close Management

Disclosure Management

HPCM

HSF

FDMEE/ERPi & EPMA

Profitability & Cost Management Offerings

4

Service Offerings

Customized & Core Product Training Delivery

HPCM Model Types: Standard Model, Detailed Model, Management Ledger

Profitability Project Initiation & Analysis Services

Multi-Phase, Multi-Product Strategic Roadmaps & Visioning

Future State Process Definition

Costing Requirements Analysis & Proof of Concept Development

Full Life Cycle Application Delivery By Type:

Shared Service Costing & Charge Backs

Operational Transfer Pricing & Inter-Unit Charges

Global Expense Allocations - Dept & Project

Management Profitability – Segment, Region & LOB

Operational Profitability – Client, Product & Service

Project Experience & Resource Capability

18 Experienced Full Time Consultants in the U.S. and EMEA

Over 20 HPCM projects delivered (100 Total Globally)

Comprehensive approach incorporates other tools such as DRM, FDMEE &

OBIEE

Close Relationships with Oracle Development – involved in initial Product

Architecture

Financial Close Suite

BusinessIntelligence

EnterprisePlanning & Analytics

Data IntegrationServices

Training &Support Services

Advisory ServicesInfrastructure

Costing &Profitability

Mgmt

Agenda

5

What is HPCM and What Does it Do?

Preview the Cloud Today with HPCM Management Ledger

Introduction to Profitability & Cost Management Cloud Service (PCMCS)

PCMCS Demo

PCMCS Accelerators – The Oracle Cloud Market Place

Q&A

Packaged Profitability functionality • Computes Profitability for Units, Segments and Services

• Pre-Built Framework for profitability modeling:

� Pre-built Measures dimension

� Support for Multiple Cost Allocation methodologies

� Pre-Built Validation reporting

• Graphical Interactive Traceability Maps

• Genealogy Reporting shows flow from any stage to any

stage

A User-Driven application• Measures, Allocates and Assigns Cost and Revenues via User

Defined Rules

• Finance User-facing Administration

• Provides Scenario Modeling for Decision Making

Tightly integrated with the full Hyperion EPM Suite• Shared Data and Master Data via EPMA

• Shared Reporting Tools like Financial Reports & Smart View

for Office

• Proven Technology Stack

Hyperion Profitability & Cost Management

6

Audit and Accuracy Shared Methodology Transparency

7

Flexibility

Why HPCM? For These Key Requirements…

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

Provide key

stakeholders

confidence in the

numbers produced and

methodologies

employed to ensure

compliance.

Achieve this through

meaningful allocations,

automation, and

system controls.

Define consistent

allocation and charge

back methodology

across all management

cycles.

Create consistent

comparisons when

reviewing and updating

methodology result and

planning for future

management cycles.

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.

Group HQ

Group Overhead (e.g. CEO)

Group Services (e.g. Property, Controllership, IT)

Inter Unit Charges ( e.g. Transfer Pricing, Contractual Charges)Inter Unit “Regulatory”

Division 1

Shared Services

Overhead

Services

Fully Allocated

P&L (e.g. Channel,

Fund, Region)

Expense Allocations

Fully

Allocated “Thin

Ledger”

Product Profitability

Customer Profitability

Operational Profitability

“BI”

Division 2

Overhead

Services

Fully Allocated

P&L (e.g. Channel,

Fund, Region)

Division 3

Overhead

Services

Fully Allocated

P&L (e.g.

Channel, Fund, Region)

HPCM Application Types

8

HPCM Has Multiple Model Types toSolve Different Allocation Problems

9

Version 11.1.1.1 Version 11.1.2.0 Version 11.1.2.4

Management Ledger

Fully Allocated P&LClient Profitability

via ABC

Fund Profitability HFM/GL

Actuals

Planning

Bgt/Fcst

BI

Reporting Tool

HPCM Modules Comparison

10

Standard Profitability stands out as the

module that caters for highly complex allocations models and offers the widest

range of reporting capabilities.

Detailed Profitability stands out as the “heavy-lifter” of the 3 modules, enabling

users to define simple allocation models with a wide range of dimensions and

metadata granularity.

Management Ledger combines both the metadata granularity as well as the logics

complexity enabling users to define custom models without restricting or

limiting the level of detail required for reporting.

Agenda

11

What is HPCM and what does it do?

Preview the Cloud today with HPCM Management Ledger

Introduction to Profitability & Cost Management Cloud Service (PCMCS)

PCMCS Demo

PCMCS Accelerators – The Oracle Cloud Market Place

Q&A

HPCM Management Ledger

12

ASO

EPMAHPCMHPCM repository

OR

ASOMetadata Cube

Calculation and Reporting

Meta

Data File

OR

Management Ledger- Metadata

13

System Dimensions POV Dimensions Business Dimensions

Management Ledger- Manage Rules

14

Management Ledger- Manage Rules

15

Setting a global

context enables you to define

default definitions for dimensions

that will be usedin all rule

definitions for the selected POV.

You should define a global context before defining rule sets for

the selected POV.

Management Ledger- Manage Rules

16

- Set-up sequence of

rule within a rule set- Select the option of

executing : - Serial

- Parallel- Iterative with

number of required iterations

12

3 .

45

User Interface

and rule driven –

no black box

implementation

with staging

areas

Validation

performed

at rule level Custom

MDX scripts

Traceability

available in various

formats

Iterative

rules for reciprocal

allocations

Management Ledger- Features

17

Unlimited Dimensions : Stage-less design allows 4 POV dimensions and unlimited business and attribute dimensions

Source side rules, iterative rule support for reciprocal allocations, flexible driver references, custom calculations, and easy clear / recalculation

Rule execution in parallel, serial, or iterations as needed, set by user

Balancing by rule with allocations sent and received as well as adjustment values detailed by rule

User defined slices through model views for enhanced rule balancing and trace analysis

Visual allocation trace from aggregate or granular level, detailed by rule

Management Ledger- Traceability

18

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

Introduction and Overview

Profitability and Cost ManagementCloud Service (PCMCS)

Oracle Confidential – Internal/Restricted/Highly Restricted

Bart StoehrSenior Director, Product Strategy & ManagementEPM Development

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Introduction and OverviewProfitability and Cost Management Cloud Service(PCMCS)

Oracle Confidential – Internal/Restricted/Highly Restricted 20

• Feature Overview

• Product Roadmap

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 22

Immediate

Relevant & Insightful

Actionable

Oracle Confidential

Profitability and Cost Management Cloud ServiceEmbedded Analytics

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

Multiple Dashboards

� Charts & Data Grids

� Key Performance Indicators

� Custom Time Aggregations

� Rank and Scoring

Multiple Dashboards

� Charts & Data Grids

� Key Performance Indicators

� Custom Time Aggregations

� Rank and Scoring

Population Performance Analysis

� Multi Dimensional Profit

� Rank and Order

� Allocation Rule Trace

� Custom Queries w/Drill to Smart View

Population Performance Analysis

� Multi Dimensional Profit

� Rank and Order

� Allocation Rule Trace

� Custom Queries w/Drill to Smart View

Custom Report Creation

� Strategic P & L Reports

� Cost Contribution Detail

Custom Report Creation

� Strategic P & L Reports

� Cost Contribution Detail

Sophisticated, Embedded Analytics and ReportingSophisticated, Embedded Analytics and Reporting

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 24

Sophisticated, Embedded Analytics and Reporting PCMCS Intelligence – Profit Curve and Rule Trace

DemonstrationDemonstration

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

Performance Ledger Applications

� Complex Multi Step Computations

� Flexible Allocation & Custom Calcs

� Business User Managed Rules

� Comprehensive Audit Trail

Performance Ledger Applications

� Complex Multi Step Computations

� Flexible Allocation & Custom Calcs

� Business User Managed Rules

� Comprehensive Audit Trail

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Rapidly Build, Execute, and Validate Profit and Cost ModelsPerformance Ledger: Game Changing Technology

Design & BuildDesign & Build

Purpose Built for Best Practices Use Cases

• Business User UI , point-click, no coding

• Structured Logic: Rules -> Rule Sets

• 4 steps to build a rule: data driven and

formula based| incl. recursive

• Simple allocations, multi-tier allocations,

ABC, Time-Driven ABC, or Driver Based |

Unlimited Dimensionality

Flexible Methodologies

w/Free Form $ Flow

ValidateValidate

Pre-Built Rule Integrity and Transparency

• Rule Validation – Avoid Nonsense Rules

• Process Documentation - Narrative

• Rule Tracing Analysis – Sharable Audit Trail

• Reconciliation Analysis and Reporting –

follow $ in to $ out (vise-a-versa)

Execute & ComputeExecute & Compute

Mistake Proof Sandbox

• What If – Copy data, rule and dimension

artifacts

• Serial, parallel or iterative processing

• Partial recalculation options

• Rule Process Automation

$ $

$$$$

$$$

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

Performance Ledger Applications

� Complex Multi Step Computations

� Flexible Allocation & Custom Calcs

� Business User Managed Rules

� Comprehensive Audit Trail

Performance Ledger Applications

� Complex Multi Step Computations

� Flexible Allocation & Custom Calcs

� Business User Managed Rules

� Comprehensive Audit Trail

Application Management

� Best Practice Application Templates

� Dimension Upload / Update

� User Provisioning

� Data Security

Application Management

� Best Practice Application Templates

� Dimension Upload / Update

� User Provisioning

� Data Security

Multiple Dashboards

� Charts & Data Grids

� Key Performance Indicators

� Custom Time Aggregations

� Rank and Scoring

Multiple Dashboards

� Charts & Data Grids

� Key Performance Indicators

� Custom Time Aggregations

� Rank and Scoring

Population Performance Analysis

� Multi Dimensional Profit

� Rank and Order

� Allocation Rule Trace

� Custom Queries w/Drill to Smart View

Population Performance Analysis

� Multi Dimensional Profit

� Rank and Order

� Allocation Rule Trace

� Custom Queries w/Drill to Smart View

Custom Report Creation

� Strategic P & L Reports

� Cost Contribution Detail

Custom Report Creation

� Strategic P & L Reports

� Cost Contribution Detail

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

HPCM and PCMCSSummary of Recent Releases and Roadmap

Near Term: PCMCSNear Term: PCMCS Future +1Future +1

• PCM Cloud Service• Data Forms• Rule Enhancements• Enhanced Rule and Balance Dims

• PCMCS Solutions• Oracle IT Costing and Transparency• Partner Industry Specific Accelerators

• PCM Cloud Service• Management Ledger Apps (a.k.a.

Performance Ledger)• Embedded Analytics

• Embedded Analytics • Population Performance Analysis• Multi Dimensional P&Ls• Cost Contribution Reporting• Cost and Profitability Statistics• KPI’s & Dashboards

• Complete Data, Security and Automation• Data Management• EPM Automate• Data Level Security

Recent: HPCM 11.1.2.4Recent: HPCM 11.1.2.4

• Ledger Allocations Support• Management Ledger Model Type• Mixed dimensional attribution• True business rules• Rule based allocation trace

• Financial Close Manager Integration• Coordinated Schedules and Templates• Click through to ML App functions

• Performance Enhancements• Detailed Apps Multi Source Rules• Management Ledger Allocation Rules

• Dimension and Data Management• Management Ledger Apps

• Data Load from File• Dimension Load from File• Template Export / Import

Oracle Confidential – Internal/Restricted/Highly Restricted 28

Oracle Cloud Market Place

29

IT Service Costing Cloud service

Standard Costing For Manufacturing Cloud Service

Overhead Rate Development for Government Contractors Cloud Service

Closing and Q&A

PresenterMike Killeen, Sr. VP Technology, Ranzal

PresenterBart Stoehr, Sr. Product Director, Oracle

It won’t be hard to find us at Kscope16!

#pinittowinit – Pick-up at pin at booth #611 – Win throughout the week!

8 Conference Sessions

6/27, Session 1, 8:30 - 9:30am

How to Use Hyperion Tax Provision to Complete the Close Process Puzzle6/27, Session 2, 10:15 - 11:15am

Cycling off FDM Classic on Steroids and Taking a Dose of FDMEE HGH6/28, Session 8, 9:45 - 10:45am

Opus Group is Over the Moon with Oracle Planning and Budgeting Cloud6/28, Session 9, 11:15am - 12:15pm

FDMEE Can Do That?6/28, Session 12, 4:45 - 5:45pm

Profitability and Cost Management: Have it Your Way6/29, Session 14, 10:15 - 11:15am

The M&A Information Factory: 80 Sources in 100 Days with DRM and FDMEE6/29, Session 18, 4:30 - 5:30pm

Migration Approaches for FDMEE, the Heart of the Matter6/30, 9:00 – 11:00

The Rules Circus: Experts Parade the HFM Functions

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |