- Oracledownload.oracle.com/ocomdocs/EnterprisePerformanceManagement.pdf · ... and security, and the environment in the use

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Smart strategies for difficult times - Oracle roadmap

to management excellence

Oana Craciunescu

EPM Sales Leader – South Eastern Europe

Copyright © 2008, Oracle and/or its affiliates. All rights reserved.

• Expanding From Operational Excellence to Management Excellence

• EPM to Drive Management Excellence

• Oracle EPM System

Agenda


SMART

AGILE

ALIGNED


Pressure

• Compliance

• Cost cutting

• IT as an enabler

…Operational

Excellence

Performance

• Governance

• Growth

• IT as a driver

…Management

Excellence

From Pressure to Performance


Pillars to Achieving Management

Excellence

ALIGNEDALIGNED

SMART

AGILEAGILE

Rationalize Your Management Systems

Integrate Management Systems with Operational Systems

Share Insights Across the Extended Enterprise


Today’s Reality:

Management Activities Are Siloed

SIX SIGMA

ANALYZE

PERFORMANCE

GOAL

SETTING

SCORECARDS FINANCIAL

REPORTING

FINANCIAL

MODELING

VARIANCE

ANALYSIS

ROLLING

FORECASTOPERATIONAL

PLANNING

MONITOR

RESULTS


Oracle’s Framework for Achieving

Management Excellence


Align Stakeholder Interests

• Gain greater access to capital

• Build better supplier, partner and customer relationships

• Retain more engaged employees

• Improve environmental transparency


Manage Market Opportunities

• Investigate market dynamics

• Match market potential with resources

• Size investments and divestments

• Benchmark performance against key competitors


Analyze Scenarios

• Assess scenarios for alternative future outcomes

• Create strategies for addressing these alternative futures

• Model business combinations, partnerships, acquisitions

• Select optimal capital structure to support strategy


Allocate Resources Effectively

• Translate strategy into operational plans

• Match financial goals with operational feasibility

• Align resources and activities across business functions

• Create driver-based rolling forecasts


Operational Agility

• Monitor variances continuously

• Track root causes across lines of business

• Analyze detailed customer profitability

• Adjust forecasts and redeploy resources


Integrate Reporting Processes

• Combine financial and operational information

• Deliver timely, actionable insights to all stakeholders

• Include economic, environmental and social impact

• Meet regulatory reporting requirements


Oracle’s EPM System Integrates Key

Management Processes

EXTERNAL REPORTING

PREDICTIVE MODELING

BUSINESS PLANNING

PROFITABILITY & COST MANAGEMENT

MONITORING, ANALYSIS

FINANCIAL REPORTING

BI REPORTING TOOLS & APPLICATIONS

OLAP

DATA QUALITY, DATA INTEGRATION & MASTER DATA

APPLICATION & METADATA MANAGEMENT

STRATEGIC & FINANCIAL MODELING


Introducing

Oracle Enterprise Performance

Management System

Driving Management Excellence by

Delivering Predictable Results

Improving Transparency and Compliance

Increasing Business Alignment


Market-leading Performance

Management Applications Suite

Master DataBusiness RulesMetrics/KPIs

Targets, Plans & Actuals

Strategic Planning

Set Strategic

Objectives

Corporate

Development

Treasury

Strategies

Long-Term

Planning

Cost and Profitability Management

Define Costing

Methods

Perform

Allocations

Report & AnalyzeDefine Cost

Drivers

Financial Close Process

Data

CleansingConsolidate

Internal

Reporting &

Analysis

External Reporting & Compliance

Cascade Targets

Allocate

Resources

ForecastingDetailed

Budgeting

Planning and Budgeting


EPM Workspace

OLTP & ODSSystems

Data WarehouseData Mart

SAP, Oracle, Siebel,PeopleSoft, Custom

ExcelXML

BusinessProcess

OLAP

Fusion Middleware

Business Intelligence Foundation

Performance Management

Applications

Market-Leading Packaged ApplicationsFinancial and Operational

PERFORMANCE MANAGEMENT APPLICATIONS

Strategy

Management

Business

Planning

Profitability

Management

Financial

Reporting &

Compliance

BI Applications



Deliver Predictable

Results:

Integrate Strategic,

Financial & Operational

Planning


Planning and Budgeting Challenges

• Time – takes too long, results obsolete

• Quality – political/negotiation, not reflective of business

• Cost – many wasted resources, dubious benefits

• Flexibility – lack of responsiveness to changes

FP&A Group

Dept A Dept B Dept C

Senior Management


Oracle Hyperion Strategic FinanceStrategic Financial Modeling in One

Environment

• Funding options

• Debt scheduler

• “What If” analysis toolkit

• “Deal Period” functionality

• Analyze trail feature

• Freestyle reporting


Oracle Hyperion PlanningImproves Business Predictability

• Powerful workflow and process management

• Intuitive interface

• Robust data integration

• Leverages Essbase –powerful reporting and analysis

• Scalable web infrastructure

• One platform for all the planning needs


Oracle Hyperion Workforce PlanningHeadcount, Salary and Compensation Planning

• Packaged solution for quick implementations

• Plan salary and othercompensation at any level

• Add, edit and delete employees and new hires

• Pre-defined or custom calculations for taxes, etc.

• Integrates actuals from HR systems

• Test scenarios in real-time for impact analysis


Oracle Hyperion Capital Asset

Planning Assets and Depreciation Planning

• Packaged solution

• Customizable

• Plan for asset purchases and asset related expenses

• Transfer, retire, and improve assets

• Directly linked to main plan

• Interfaces with external systems


Oracle Hyperion Smart View™ for Office

Enables Enhanced Offline Planning

• MS Excel add-in allowing access on or off-line

• Develop budgets, plans and forecasts and calculate impact anywhere (on/off-line)

• Users download forms to Excel

• Manipulate data just like the full web client

• Synchronize to server when ready


What If You can Overcome a Major

Liquidity Crisis?

BEFORE

• Lost investment-grade credit rating

• Needed 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

• 3% accuracy in net income projection

$22 Billion global provider of power and automation technologies

26

Budget Formulation & Execution Analysis at

the Nuclear Regulatory Commission

BEFORE

• Manual budget formulation system was labor-intense, requiring data re-keying and multiple spreadsheets and staff had lack of confidence in numbers.

• Difficult to forecast and reprogram and little visibility into variance analysis.

• Could not track or manage performance against the annual plan and quickly/effectively forecast resource constraints.

AFTER

• Automated system that minimizes time spent entering data and maximizes time spent analyzing the budget and making better forecasting.

• Achieved financial data integrity from the budgeting process (no more disparate spreadsheets w/multiple disconnected versions of the budget).

• Ability to perform what-if analysis and quickly respond to changing scenarios within the budget process.

The NRC is an independent regulatory agency whose primary

mission is to protect public health and safety, the common defense

and security, and the environment in the use of nuclear materials.

27

Planning Process ImprovementOracle’s Hyperion Planning

Needs

� Chart of account and business rules changed with SAP implementation

� User-friendly budgeting tool

� Support for large number of users

� Integration within EDF’s technical environment

Leading supplier of electricity and

energy

in Europe

After

� Unified, centralized, and secure platform

� Single solution across 4,000 users

� Easy to maintain and quick to adapt to changing market requirements

� Reduce & automate budget process

� Quick to implement – 2 months



Improve Transparency

and Compliance:

Accelerate Reporting

Cycles and Reduce

Costs of Compliance


Customer Pain Points

• Long period-end closing cycles

• Errors in financial data collection

• Financial restatements

• Inconsistent account structure

• Dozens of source systems

• Changing disclosure requirements

• Rising audit fees


Oracle Hyperion Financial

Management Accelerates Reporting Cycles and Reduces Costs of Compliance

• Patented financial consolidation and reporting features

• Complete audit trails, workflow and validations

• Flexible “what if” scenario management features

• Powerful, reporting and analysis tools

• Full integration with ERP and other transaction systems

• Easy to customize and extend

• Web-architected


Single Platform for Financial Reporting

BEFORE

• Multiple financial reporting systems for management, statutory, legal etc.

• Long reporting and planning cycles

• Difficult deployment of new applications and software

• Manual intercompany reconciliations

• Slow delivery of financial information to line management

AFTER

• Centralized financial reporting system for all needs

• Streamlined financial reporting and planning

• Faster, easier software and applications deployments

• Automated intercompany reconciliations

• Easy, secure access to financial results globally

Global industrial company, deployed Hyperion Financial Management to unify financial reporting for US GAAP, IFRS, management and statutory requirements



Increase Business Alignment:

Align Strategy with Execution,

Improve Resource Allocations


Oracle Hyperion Performance

Scorecard Aligns Strategy with Execution

• Translates strategies into objectives to establish ownership and accountability

• Communicate goals and objectives to align an entire organization

• Tailor scorecards by individual or teams to increase adoption

• Monitor key performance indicators to track execution


Improving Communication and

Alignment

BEFORE

• 6 different analysis/reporting tools, 4-6 financial data warehouse solutions

• No common tool for budgeting and dependency on external consultants

• Information silos, no analysis across companies

• Many user interfaces to work with across many systems

AFTER

• Manage strategy and initiatives

• Agenda for the monthly management meeting is driven by status of strategic objectives

• Strategic objectives tie into measures and initiatives

• Cost-cutting through process, system, & information standardization

Norwegian telecommunications provider with over 8 billion Euros in revenue and 20,000 employees. Deployed Hyperion Performance Scorecard and complete suite of Hyperion EPM applications and tools.


Calculating Customer Profitability

Net Revenuefrom Sale of Products and Services to Customer

Cost of Activities to Serve Customer:

AcquireServiceSupportDeliver

Net Profit Deliveredby SpecificCustomer


Oracle Hyperion Profitability and Cost

ManagementProvide Actionable Insights into Costs and Profitability

• A packaged application that drives business performance by:

• Discovering drivers of cost and profitability

• Empowering users with visibility and flexibility

• Improving resource alignment

• Leverages the power of Essbase

• Designed for the business user

• Leverages existing IT investments


3

Oracle’s EPM System

EPM Workspace

OLTP & ODSSystems

Data WarehouseData Mart

SAP, Oracle, Siebel,PeopleSoft, Custom

ExcelXML

BusinessProcess

OLAP

Fusion Middleware

Business Intelligence Foundation

BI ApplicationsPerformance Management

Applications

38Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 38

What is an Oracle BI Application?

Integrates Data for Analysis and Reporting

• Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, SAP and other sources into an integrated data warehouse optimized for analysis

Provides User-Friendly Analytic Model of Enterprise Information and Metrics

• Embedded best practice calculations, metrics, and KPIs

• Easy for business people to access, analyze, and use the information

Delivers Personalized Performance Dashboards for Everyone

• Thousands of pre-built dashboards, reports, and alerts by business function and

role

1

1

2

3

2 3

39

Oracle BI ApplicationsComplete, Pre-built, Best Practice Analytics

and Other Operational

& Analytic SourcesSource adapters:

Financials

General Ledger

AccountsReceivable

AccountsPayable

Cash Flow

Profitability

Expense

Management

Service &

Contact

Center

ServiceEffectiveness

Customer Satisfaction

ResolutionRates

Service RepEfficiency

Service Cost

Churn & Service Trends

Procurement

& Spend

Direct / Indirect Spend

Buyer Productivity

Off Contract Purchases

Supplier Performance

Purchase Cycle Time

Employee Expenses

Supply Chain

& Order

Management

Revenue andBacklog

Inventory

FulfillmentStatus

CustomerStatus

Order Cycle Time

BOM Analysis

Marketing

Campaign Effectiveness

CustomerInsight

Product Propensity

Loyalty &Attrition

Market Basket Analysis

Campaign ROI

Sales

PipelineAnalysis

ForecastAccuracy

Sales Team Effectiveness

Up-sell/ Cross-sell

Cycle Times

Lead Conversion

Human

Resources

Employee Productivity

Compensation

Compliance Reporting

WorkforceProfile

RetentionAnalysis

Return on Human Capital

Oracle BI Suite Enterprise Edition Plus

40

Spend Insight Across the EnterpriseProcurement and Spend Analytics

Before

� Difficulty communicating with Department of Energy HQ to provide accurate reporting.

� Manual processes to merge data proved costly and time-consuming.

� No consistent view of data across the organization to serve as the basis for decision making.

� Multiple data sources including Oracle EBS and proprietary custom built data sources made reporting difficult.

Los Alamos National Laboratory is a multidisciplinary research

institution engaged in strategic science on behalf of national

security.

After

� Senior leadership has ability to access near real-time analytics data without going through painful request process.

� Consistent view of analytics data across the organization serve as the standard for all decision-making.

� Continued user-adoption and elimination of manual processes, conflicting data, and frustration are long-term benefits.


Integrating Key Management ProcessesOracle Enterprise Performance Management

System

EXTERNAL REPORTING

FINANCIAL MODELING

PREDICTIVE MODELING

INTEGRATED BUSINESS PLANNING

PROFITABILITY & COST MANAGEMENT

SCORECARDING

MONITORING, ANALYSIS & REPORTING

FINANCIAL REPORTING

BI REPORTING TOOLS & APPLICATIONS

OLAP

DATA QUALITY, DATA INTEGRATION & MASTER DATA

APPLICATION & METADATA MANAGEMENT

Documents

- Oracledownload.oracle.com/ocomdocs/EnterprisePerformanceManagement.pdf · ... and security, and the environment in the use