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									Enterprise Planning
with Oracle Hyperion

 About Ranzal
 Challenges in Typical Current State Planning
 Enterprise Performance Management
 Enterprise Planning Module Components
      Core Planning Functionality
      Capital Planning Functionality
      Workforce Planning Functionality
      Workforce Planning Demo Screenshots
 Case Study: Catalina Marketing
 Q&A

                                     Session: Enterprise Planning
Typical Planning Process Challenges

                       Session: Driving Shareholder Value with Customer Profitability
                         Budgeting Process is Highly Inefficient

                                      • Time – takes too long,
                                        results obsolete
         Senior Management            • Quality –
                                        political/negotiation, not
                                        reflective of business
                                      • Cost – many wasted
                                        resources, dubious
           FP&A Group

                                      • Flexibility – lack of
                                        responsiveness to
             Dept B          Dept C
Dept A

                                            Slide Courtesy of Oracle
                           Typical Challenges in Integrated Planning

• Black Boxes
     Multiple areas of the organization each have their own solutions creating
      silos of information and multiple versions of the truth
• Disconnect Between Finance and Operations
     Numbers drive Finance, Events drive operations. Budgeting models linking
      numbers to those events is key.
• Predictability
     Its not just planning, and its not just reporting. Its about using the past to
      help accurately predict the future, and use operational drivers to make
      sound financial decisions.
• Transparency
     Making sure stakeholders throughout the organization have visibility and an
      understanding of the numbers and their source. This allows people to own
      the financial results by understanding the drivers they are managing to on a
      daily basis.
                                         Other Challenges….

•   Business & Environmental change
•   No linkage between operational & financial plans
•   Aggressive Forecasting/planning
•   No strategic/exec. Direction
•   Inaccurate/no data used in plan
•   People don’t understand the budget
•   Process too long
            Typical Current State Planning Solutions

2/13/2012    Copyright © 2006, Hyperion. All       7
                     rights reserved.
            Other Current State Planning Practices

2/13/2012   Copyright © 2006, Hyperion. All      8
                    rights reserved.
Enterprise Planning Architecture

                      Session: Driving Shareholder Value with Customer Profitability
        Oracle Enterprise Performance Management System

                                EPM Workspace
                               EPM Workspace

   Performance Management
                                                    BI Applications
                    Common Enterprise Information Model
  Essbase                       BI Server               Real Time Decisions

                              Fusion Middleware

OLTP & ODS   Data Warehouse     OLAP   SAP, Oracle, Siebel,   Excel           Business
 Systems        Data Mart              PeopleSoft, Custom     XML             Process

                                                                      * Slide courtesy of Oracle
        Hyperion System 9 – Financial Performance Mgmt Apps
    1      Enterprise Data Sources

        System 9 includes:

    2      Foundation Services
           • EPMA                                        1
         Shared Services                                                 5
         • Security
         • Life Cycle Management
     4   Workspace
         • Web Access
         • Smartview for Office                                  6
Oracle EPM Offerings:
    5      Applications
           • Hyperion Financial Management
           • Hyperion Planning
              - Addl: Capex, Workforce               3
           • Strategic Finance                   7
           • Performance Scorecard
    6      BI Tools & Technology
           • Essbase
           • Financial reporting
           • Web Analysis
           • Production Reporting
           • Interactive Reporting                           2
    7      Data Integration                                          4
           • FDM (Upstream)
           • HAL (Vignette)
           • ODI (Sunopsis)
           • DIM (Informatica)
    8      Master Data Management
           • MDM (DRM)
    Integrated Business Planning Framework

                                     EPM Workspace


                                                                                 Sales        Marketing
                                                                               Planning       Planning
 Income          Balance                       Workforce           CapEx
Statement         Sheet        Cashflow        Planning           Planning

                                                                               Planning       IT Planning

                            Hyperion Planning Application

                                   Essbase OLAP Server

                 Data Warehouses          Transactional Systems      Performance Management
                                      Hyperion Planning

Shortens Planning Cycles and Improves Business

 Efficient Data
 Powerful workflow
  and process
 Flexible modeling
 Intuitive interface

                                 Slide Courtesy of Oracle
Why Essbase*

  * Slide courtesy of Oracle
Streamline Planning, Budgeting and Forecasting

                 • Centralized and Consistent
                 • Shortens budget cycles
                 • Collaboration &
                   Accountability across
                 • Process drives forecast
                 • Align top-down with bottom-
                 • Driver-based planning
                 • Rolling forecasting

                        Slide Courtesy of Oracle
Components of Hyperion Planning

                     Session: Driving Shareholder Value with Customer Profitability
                          Components of Core Hyperion Planning

       Planning Functionality Delivered through Web interface of EPM
        Workspace or Office Interface provided by Smart View
       Built on top of Essbase, all features and capabilities of Essbase are
          Scalable Architecture with an advanced calculation Engine
          Multi-Dimensional Slicing and Dicing
          Out of Box Financial and Time Series Intelligence
       Application Related Features
          Process Management
          Web Forms
          Graphical Business Rule Development
          Supporting Details
          Task Lists
          Cell Notes
          Textual and Date Measures

                                                 Session: Driving Shareholder Value with Customer Profitability
Intuitive Web Interface for Wide Deployment

                     Slide Courtesy of Oracle
                         Guide Users Through Budget Process
                                 Fast Adoption and Increased Accuracy

• Budget wizard to
  guide planners
• Include instructions
• Set due dates
• Alerts and progress
• Send email
• Report on budget

                                         Slide Courtesy of Oracle
                         Capital Expense Planning – What Is It?

What can you do with it ?
• Plan for new asset purchases
• Plan for Depreciation/Amortization calculations
• Plan for actions on existing assets
• Plan for driver based/user defined asset related expenses
• Capital purchases process management (future release)
• Report on Assets
What it is not meant to be?
• Capital Asset Inventory and Tracking system
• Fixed Asset System
                                               Capital Expense Planning Process

                 Plan for            Plan

                                                  Plan Asset         Submit for
                New Asset         actions on
                                                    related           Approval
                Requests           Existing

                                                  Review New            Approve and
               Review Capital Expenditure         Capital Asset           Promote
                 and Financial Impacts            Requests and             Asset
                                                    Priorities           Requests

                               Review                                    Approve
                                                    Review Long

                              Corporate                                   Capital
                                                   Term Financial
                               Capital                                   Expense
                             Expenditure                                  Budget


                               Corporate              Review Balance Sheet, P&L and Cash Flow
                                 Global                               Impact
                            Capital Planning - Feature and Functionality
• Plan for new capital expense and intangible expense
• Planning of multiple asset requests or multiple units
• Depreciation/Amortization calculations – Straight Line, Declining
  Balance, Sum of Years Digit, Conventions
• Cash flow impacts and funding options
• Predefined global assumptions e.g. Useful Life, Depreciation
• Planning for asset related expenses e.g. Maintenance,
• Planning for Improvements on Existing assets
• Planning for Sale and Writeoff
• Planning for Transfer
• Planning for impairments on intangible and corresponding amortization
                               Capital Planning - Feature and Functionality

• Reporting at entity level or at aggregated corporate level across asset
    Capital Expenditure Summary and details
    Balance Sheet Impacts
    Profit & Loss Impacts
    Cash flow Impacts

• Provision to specify to Justification, Priority, CAR # (Capital Acquisition
• Additional hidden fields – Freight, Installation, Tax,Retirement
  Obligations and Additional Charges
Global Assumptions
New Asset Requests – Add New
New Asset Requests – Input
                                Workforce Planning – What Is It?

• A collection of pre-built forms, business rules, and processes that
  allow a company to forecast and budget salary related expenses
• Work force planning while ‘pre-built’ is fully customizable
• Out of the box business logic to calculate:
    Salaries – including base, merit, overtime, and bonus
    Benefits
    Taxes – Social Security, Medicare, SUI, and FUTA
    Additional Employee Related Expense – Training, Travel, etc.
    FTE & Headcount Metrics

                                             Slide Courtesy of Oracle
                               Workforce Planning – What Is It?

• Business logic is based on various employee attributes
• Out of the box employee attributes include
    Status – Active, Departed, Sabbatical
    Position – Customized by the client
    Pay Type – Exempt, Non-Exempt
    Employee Type – Regular, Contract, Temporary
    Tax Region – US, State, Intl
    Health Plan – Family, Individual, Individual + 1
    Performance – Below expectations, meets, exceed
    Merit Month – Jan, Feb, Mar…

                                           Slide Courtesy of Oracle
                                      Workforce Planning Benefits

• Best of both worlds approach
    Extensive pre-built functionality
    Fully customizable to client’s needs
• Simple & Intuitive User Interface
• Creates greater visibility into the salary planning process
• Provides a single source of salary information
• Seamless integration with overall operational planning
• Fewer spreadsheet errors
• Less re-work on the effect of changes in assumptions
• More time for true analysis

                                             Slide Courtesy of Oracle
Slide Courtesy of Oracle
Workforce Planning Benefits

     Slide Courtesy of Oracle
Workforce Planning Benefits

     Slide Courtesy of Oracle
Workforce Planning Benefits

     Slide Courtesy of Oracle
                                 Ranzal Case Study

Hyperion Planning – Enterprise Planning
          Catalina Marketing
              Tampa, FL

                          Session: Driving Shareholder Value with Customer Profitability
                                    Catalina Marketing Overview

• Targeting change with behavior-based marketing
• Catalina Marketing is the global leader in providing behavior-based
  communications on a mass scale, targeted to individuals as
• Catalina Marketing was founded on the premise that the
  combination of access to consumers and insight into their actual
  purchase behavior would enable more effective, cost-efficient
  promotions than traditional marketing approaches
• The company’s vision created an alternative to usual methods such
  as freestanding inserts (newspaper coupons), which are subject to
  waste, misredemption, and clutter
Offices Around the World
           Business Challenges - Forecasting and Budgeting

• Budgeting and forecasting was prepared using
  Hyperion Pillar
• Difficult to consolidate and disseminate budget
  and forecast information quickly
• Limited modeling capability – really starting to
  push the limits of Hyperion Pillar
• “What-if” analysis was largely unavailable when
  preparing budgets and forecast
• Version comparison was cumbersome
• Not linked to the financial consolidation system –
  Hyperion Enterprise. Thus, to get comparative
  reports, data had to be manually uploaded to
  Hyperion Enterprise
                    Business Challenges - Financial Reporting

• Reporting carried out by merging consolidation
  data from Hyperion Enterprise with forecast
  and budget data from Hyperion Pillar
• Manual update of spreadsheets for
  management reporting
• No central repository of information led to
  inconsistencies in formulas and calculations
• Difficult to prepare detailed “what if” analysis
  across multiple versions
• Overall reporting was a manual effort that
  required a great deal of hands-on involvement,
  and often produced questionable results
                  Business Challenges - Operational Change

• Contract to Cash (C2C)
• A sweeping initiative involving new custom systems to handle the
  following business processes:
    Contract Management
    Billing
    Accounts Receivable
    Invoicing
    Revenue Recognition
• Legacy system maintained using Oracle back-end and Access
• Little visibility to data
• Data starting to overload legacy application
• Legacy application over 10 years old
                                                 A Changing Climate

• Catalina recognized the need for a platform that would help them
  manage the great organizational change that was upon them
• Some of the most critical needs
    Better visibility to data in all facets of the business – not just
     finance and accounting
    An iterative process that allowed the planning, forecasting,
     and reporting process to be seamless
    The ability to link data from operational systems into the
     planning process
    Dashboard-type reporting for executives
    Detail analytics for analysts
    A central repository to manage these reporting needs
                                   Planning and Analysis Needs

• The ability to provide timely and accurate forecasts on a monthly
  and annual basis
• An integrated planning and reporting engine that provided insight
  into ever-changing business conditions
• A tool that allowed for complex modeling of capital, revenue, and
  salary processes
• The standardization of the forecast and planning process across the
• The alignment of general financial statements with monthly forecasts
  and annual plans
• A robust engine that allowed for a myriad of versions, “what if”
  scenarios, and on-the-fly analytics
• A toolset that could evolve as the organization changed
                                                    The Solution

• Hyperion System 9
• Utilize Hyperion Planning for the monthly forecast and annual
  planning process
• Leverage the Hyperion Essbase database behind Planning to load
  in monthly actual data from Lawson
• Exploit the powerful calculation engine in Hyperion Essbase to
  create variances across versions and scenarios, and standardize
  metrics across the organization
• Utilize Hyperion Workspace to provide dashboard reports to
  management and highly formatted reports to distribute to the
  business – from the same interface
                                  The Planning Solution
• Domestic
    Phase I
    Go live – October Year 1
    Consisted of the following
       Revenue Planning
       Salary Planning
       Capital Planning
       Core Financial Planning
                                       The Planning Model – Core

• Core Financials brought information from each model by
  general ledger account, cost center, activity, and month
• Core serves as a central repository for actual, forecast, and
  budget information
• Domestic and International data are both consolidated in
• The majority of financial reporting is done out of this
• Local Currency and USD supported
• Multiple hierarchies for reporting in both the organization and
  accounts dimensions
The Planning Model – Core
                                   The Planning Model – Salary

• Salary information loaded from Ceredian monthly
• Monthly Forecast and Annual Plan both utilize the detail
  salary model
• Prepared by employee by cost center
• Ability to add new employees and transfer employees
• Salary, Bonus, Taxes, and FTE all calculated in this model
• Summarized by cost center and general ledger account and
  sent to the Core Financial database
The Planning Model – Salary
                                The Planning Model – Revenue

• Revenue planning by Product Class (the product Catalina is
  selling to the customer) and Targeting Method (the method
  that the consumer is being targeted)
• Revenue is input at a high level by general ledger account,
  product class, targeting method and month
• Revenue is then allocated to the Chain (retail location in
  which the print printed)
• COGS accounts calculated – paper and ink
• Monthly Forecast and Annual Plan both utilize the detail
  revenue model
• Summarized by chain and general ledger account and sent
  to the Core Financial database
The Planning Model – Revenue
                                    The Planning Model – Capital

• Capital Planning by cost center, activity, account category,
  and expenditure type
• Activity typically corresponds to a project
• Account Category corresponds to balance sheet asset
  accounts – Software, Hardware, Office Equipment, Store
  Equipment, etc.
• Expenditure Type can be Growth, Productivity, or
• Asset dollars are input, depreciation is calculated
• Monthly Forecast and Annual Plan both utilize the detail
  capital model
• Summarized by activity, general ledger account, and cost
  center and sent to the Core Financial database
The Planning Model – Capital
Ranzal & Associates
Enterprise Planning with Oracle Hyperion

Mike Killeen, Practice Director – gvillamil@ranzal.com
Jill Horn, Business Development Manager – jhorn@ranzal.com

                               Session: Driving Shareholder Value with Customer Profitability

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