An Introduction to Oracle EPM/BI. David Chaimson, Oracle Corporation May 2, 2014

Transcription

1 An Introduction to Oracle EPM/BI David Chaimson, Oracle Corporation May 2, 2014

2 Agenda Brief Intro Demystifying the Terminology Oracle Performance Mgmt Oracle Business Intelligence Final Thoughts 2

4 A Little About Me DC Metropolitan area is home 3 years in Development BS Computer Science MBA Coursework 7 years with another vendor 19 years with Oracle Last 9 as Sales Consulting Manager First 10 as Sales Consultant Financials/Projects and surrounding apps 4

5 A Little About You Roles History Versions Satisfaction Level 5

7 Confusion in Terminology Performance Mgmt Gartner Definition Corporate Performance Mgmt (CPM) is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise. Forrester Term: Financial Performance Mgmt Oracle Term: Enterprise Performance Mgmt (EPM) 7

8 Confusion in Terminology Performance Mgmt Gartner Definition Corporate Performance Mgmt (CPM) is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise. Forrester Term: Financial Performance Mgmt Oracle Term: Enterprise Performance Mgmt (EPM) 8

9 Confusion in Terminology Business Intelligence Gartner Definition Business Intelligence (BI) is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. More Consistent Terminology (Forrester and Oracle) Key Distinction is Platform versus Applications 9

10 Confusion in Terminology Business Intelligence Gartner Definition Business Intelligence (BI) is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. More Consistent Terminology (Forrester and Oracle) Key Distinction is Platform versus Applications 10

11 Top Enterprise Technology Initiatives 2013 Why It Matters Source: Gartner, Inc., Survey Analysis: CFO s Top Imperatives From the 2013 Gartner FEI CFO Technology Study, John E. Van Decker, May 2,

12 Top Finance Technology Initiatives 2013 Why It Matters Source: Gartner, Inc., Survey Analysis: CFO s Top Imperatives From the 2013 Gartner FEI CFO Technology Study, John E. Van Decker, May 2,

14 Fundamentals Haven t Changed EPM enables management to: Link strategies to plans and execution, Monitor financial and operational results against goals, and applying analytics to Drive enterprise-wide performance improvement 14

15 Business Climate Has Changed Slower economic growth, faster business cycles More predictive signals than ever before Shareholders want more qualitative disclosures Millennials have higher expectations; less patience Business users becoming more demanding - near real-time reporting required Technology changing: Cloud, Social, Mobile 15

16 Potential Needs to be Unlocked GOALS RESULTS 16

17 Strategies to Unlock Business Potential ALIGNED OBJECTIVES ACCOUNTABLE ENTERPRISE GOALS Performance Management Platform RESULTS ACCURATE FORECASTS CONFIDENT CLOSE 17

18 Oracle Hyperion EPM Suite Plan for Growth, Report with Confidence, Accelerate Business Value User Workspace, Reporting Strategy Management Profitability Management Enterprise Performance Management Platform Planning and Forecasting Financial Close and Reporting Broadest and Deepest EPM Application Coverage Most Integrated EPM Suite Data, Meta Data and Process integration with Oracle, SAP ERPs Best in Class BI Integration Centralized Enterprise Dimension Management for EPM, ERP, BI 18

19 Oracle Hyperion EPM Applications Align Objectives - Strategy Management User Workspace, Reporting Aligned Objectives Strategy Management Planning and Forecasting Profitability Management Financial Close and Reporting Enterprise Performance Management Platform 19

20 40% Link Strategy with Budgets Source: Palladium Group 20

21 Oracle Hyperion EPM Applications Align Objectives - Strategy Management User Workspace, Reporting Oracle Scorecard & Strategy Mgmt Hyperion Strategic Finance Aligned Objectives Strategy Management Profitability Management Planning and Forecasting Financial Close and Reporting Enterprise Performance Management Platform 21

22 Oracle Hyperion EPM Applications Create Accurate Forecasts - Enterprise Business Planning User Workspace, Reporting Strategy Management Planning and Forecasting Accurate Forecasts Profitability Management Financial Close and Reporting Enterprise Performance Management Platform 22

23 DARK REALITY 93% of finance managers are drowning in spreadsheets 23

24 Oracle Hyperion EPM Applications Create Accurate Forecasts - Enterprise Business Planning User Workspace, Reporting Strategy Management Planning and Forecasting Oracle Hyperion Planning Suite Profitability Management Financial Close and Reporting Accurate Forecasts Enterprise Performance Management Platform 24

25 Oracle Hyperion EPM Applications Close with Confidence Financial Close and Reporting User Workspace, Reporting Strategy Management Planning and Forecasting Profitability Management Financial Close and Reporting Confident Close Enterprise Performance Management Platform 25

26 The Maturity Curve Gap is Significant Days to Close FTEs Involved in Close Marginal Stable Best in Class Transformational 0 Marginal Stable Best in Class Transformational Pre Pre 26

27 Oracle Hyperion EPM Applications Close with Confidence Financial Close and Reporting User Workspace, Reporting Strategy Management Profitability Management Planning and Forecasting Financial Close and Reporting Confident Close Oracle HFM and Close Mgr Oracle Disclosure Mgmt Enterprise Performance Management Platform 27

28 Oracle Hyperion EPM Applications Create an Accountable Enterprise Profitability Management User Workspace, Reporting Strategy Management Planning and Forecasting Accountable Enterprise Profitability Management Financial Close and Reporting Enterprise Performance Management Platform 28

29 82% of Companies Lack Visibility Into Profits Products Customers Services Projects Source: Performance Management: An Incomplete Picture. Study carried out by Dynamic Markets for Oracle Corporation, April

30 Oracle Hyperion EPM Applications Create an Accountable Enterprise Profitability Management User Workspace, Reporting Accountable Enterprise Strategy Management Planning and Forecasting Hyperion Profitability & Cost Mgmt Profitability Management Financial Close and Reporting Enterprise Performance Management Platform 30

31 Oracle Hyperion EPM Applications Shared Services Deliver Improved Efficiency and Adoption User Workspace, Reporting Aligned Objectives Strategy Management Planning and Forecasting Accurate Forecasts Accountable Enterprise Profitability Management Financial Close and Reporting Confident Close Enterprise Performance Management Platform 31

32 Oracle Hyperion EPM Applications Where to Begin? User Workspace, Reporting Horizontal Strategy Management Planning and Forecasting Horizontal Specialized Profitability Management Financial Close and Reporting Specialized Enterprise Performance Management Platform 32

33 Oracle Hyperion EPM Applications Close with Confidence Financial Close and Reporting User Workspace, Reporting Aligned Objectives Strategy Management Planning and Forecasting Accurate Forecasts Profitability Management Financial Close and Reporting Enterprise Performance Management Platform 33

34 Hyperion Planning Solutions Agenda Challenges and Opportunities in Planning and Budgeting Plan for Profitable Growth with Enterprise Planning Customer Success 34

36 Challenges in Forecasting 40% Can Forecast Only 3 Months Ahead 1 month in advance 12% 40%: 3 months or less 3 months in advance 28% 6 months in advance 29% 12 months in advance 20% More than 12 months in advance 5% Not sure 7% 0% 20% 40% 36

37 Business Planning Challenges The issues with Excel Long-Term Planning Treasury Plans Headcount Plans Senior Management FP&A M&A Annual Plan & Forecast Time cycles take too long, missed opportunities and obsolete plans Quality data integrity, lack of standardization and communication Flexibility lack of responsiveness to changes Cost many wasted resources, questionable benefits Departmental Plans Revenue & Cost Models 37

38 The Opportunity Benchmarks for Strategic Planning, Budgeting & Forecasting Metric Days required to complete the strategic plan Best Practice Average Laggard Your Company ?? Cycle Time to Prepare Budgets ?? % of budgetary cycle time spent on non-value adding work like data collection & validation # of business days to create financial forecast Source: Hackett Group ?? ?? 38

40 Plan for Profitable Growth with Enterprise Planning Best Practices Compress the annual budget cycle Drive accountability across the enterprise Flexibly adapt to changing conditions Exploit Innovation 40

41 Plan for Profitable Growth with Enterprise Planning Best Practices Compress the annual budget cycle Drive accountability across the enterprise Flexibly adapt to changing conditions Exploit Innovation 41

42 Link Functional Plan Measure Financial Impact of Key Business Strategies CFO Corporate Finance Treasury Corporate Development Long Range Planning Internal Investment Decisions Strategy Screening Covenant/Ratio Analysis Credit Ratings Leverage/Capital Structure Dividend Policy Mergers & Acquisitions Valuation Analysis Divestitures 42

43 Strategic Financial Modeling Assess Full Financial Impact of Corporate Strategy Integrated financial statements Accounting integrity Consolidate complex entity structures Evaluate strategic projects Simulate effects of M&A Debt Scheduling Optimize capital structure Calculate shareholder value Unlimited scenarios 43

44 Evaluate Risk Using Monte Carlo Simulation Measure the Effects of Uncertainty Assign probability distributions to uncertain assumptions Run thousands of simulations Analyze range of outcomes and probabilities Assess model sensitivities 44

45 Plan for Profitable Growth with Enterprise Planning Best Practices Enhance strategic decision-making Drive accountability across the enterprise Flexibly adapt to changing conditions Exploit Innovation 45

46 Time Spent on Non Value-Added Activities Financial Analyst Time Providing Value-added Analysis 23% 30% 47% Collecting and Validating the Data Administering the Process American Productivity and Quality Center (APQC) 46

47 Ensure Financial Data Quality The Role of FDM Oracle EBS, PeopleSoft, JDE, Fusion APPs, SAP R/3 Data Warehouse Data Mart Other Systems File Excel XML Load & Validate Data & Metadata Drill-Through & Write-Back Financial Close Planning & Forecasting Strategy Management Profitability Management 47

48 Develop Driver-Based Methodology Simplifying Drivers Improves Agility & Increases Accuracy Reduce the number of manual plan inputs Develop drivers that Predict results Logical: valid and coherent relationship Actionable: ability to influence outcomes Statistically Relevant: correlation between driver and results Develop Independently for each LOB Total Model 1 Model 2 Model 3 Model 4 48

49 Utilize a Process Workflow Accelerate Budget Validation and Avoid Bottlenecks Configurable promotional path Includes additional approvals and authorization thresholds Supports hierarchy-based, matrix-based and dynamic promotional paths Alerts and progress monitoring Notify, delegate and manage out of office Planning unit and process status reports Approvals honored on rules execution Groups as owners 49

50 Plan for Profitable Growth with Enterprise Planning Best Practices Enhance strategic decision-making Compress the annual budget cycle Flexibly adapt to changing conditions Exploit Innovation 50

51 Extend the User Base beyond Finance to LOB 51

52 Link HR, Capital, and Project Plans Leverage Purpose-Built Solutions Financial Plan Human Resources Detailed Headcount, Staff Expenses, Salary & Compensation Capital Detailed Depreciation, Asset Purchase/Sell, Asset Expenses Projects Detailed financial planning for contract, capital and indirect projects 53

53 Plan for Profitable Growth with Enterprise Planning Best Practices Enhance strategic decision-making Compress the annual budget cycle Drive accountability across the enterprise Exploit Innovation 55

54 Rolling Forecast Gaining Popularity Targets Perf Gap Excerpted by permission of Harvard Business School Press 2006 Forecasts Performance Gaps management between forecasts and targets Incorporate market condition changes that drive to new business opportunities Forward-looking performance management process Forecast against a meaningful target 56

55 Rolling Forecasts Adoption Increases 50% 45% 44% 79% more members now perform Rolling Forecasts with Oracle Hyperion Planning % of Members Performing Rolling Forecasts 40% 35% 30% 25% 20% 15% 10% 25% 5% Oracle Business Analytics, Customer Value Index, Interim Results, April % Before After 57

56 Plan for Profitable Growth with Enterprise Planning Best Practices Enhance strategic decision-making Compress the annual budget cycle Drive accountability across the enterprise Flexibly adapt to changing conditions 58

57 Innovation in EPM Trends that Change Personal and Business Productivity In-Memory Solutions Cloud Computing Mobile 59

58 Planning at the Speed of Business Leveraging Oracle s In-Memory Exalytics Engineered Systems Lock Manager Oracle Essbase In-Memory Cache Smart Storage Manager Highly accelerated planning cycles Re compute cubes in Minutes vs. Days More users, more granular scenarios, more powerful what-if modeling Planning across the enterprise 80X Faster Reads, 20X Faster Writes, and 5X more Concurrency Deeper structures, more dimensions, and complex allocations Lower TCO through application consolidation Fully certified to work with Oracle Hyperion Planning 60

59 Planning in the Cloud Oracle Planning and Budgeting Cloud Service What it is: Software-as-a-Service offering for Planning and Budgeting Based on the industry-leading Oracle Hyperion Planning solution Leverages the Oracle Cloud enterprise-grade infrastructure Available stand-alone and with Oracle ERP Financials Cloud Service Available Today 61

60 Mobile Work Anywhere and Anytime Two Key Functions are Coming Mobile Approvals Planning on a Tablet 62

62 12.3% Improvement in Forecast Accuracy Customers implementing Oracle Hyperion Planning had a 12.3% average increase in the accuracy of their forecasts. % Accuracy Oracle Business Analytics, Customer Value Index, Interim Results, April Before After 64

63 Less Time for Annual Budgeting and Planning % less time spent in manual processes supporting annual budgeting Number of Months Oracle Business Analytics, Customer Value Index, Interim Results, April 2013 Before After 65

64 What Customers Are Achieving Planning, Budgeting & Forecasting Shortened budget cycle. Replaced 1000 s of Excel spreadsheets Reduced annual budget cycle by 50% Cut EMEA Sales Forecasting cycle from 2 weeks to 3 days. Large semiconductor manufacturer Reduced monthly forecasting cycle by 48% days. Reduced forecast error by 20% Standardized process globally and improved forecast accuracy by 30% Uncovered estimated annual cost savings of $1.2M in missing shipping charges 66

65 What Others Are Saying Source: Gartner : Market Share: All Software Markets, Worldwide 2012, March 29, 2013 Source: Gartner s Magic Quadrant for CPM Suites,

67 What is Business Intelligence? a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making. - Forrester Group Copyright 71 Copyright 2008, 2013, Oracle and/or its its affiliates. All rights All reserved. rights reserved.

68 Why Not Build from Scratch Most of the Work is Just a Necessary Evil COMPLETE BI SOLUTIONS ARE MUCH MORE THAN JUST DASHBOARDS DASHBOARDS Visible Represents 10-30%** level of effort PLUMBING Under the Surface Significant time, resources and expertise required Represents 70-90%** level of effort ** The Great Debate:Buy Versus Build, Copyright 2007, BI Consulting Group, LLC. Data warehouse design Data mapping & transformation from multiple applications Analytic models, KPIs, metrics Much more 72

69 What is an Oracle BI Application? 1 Integrates Data for Analysis and Reporting Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, JD Edwards, SAP and other sources into an integrated data warehouse optimized for analysis 2 3 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

70 Speeds Time to Value and Lowers TCO 75

71 Oracle BI Applications Suite Insight into All Major Areas of an Enterprise SALES Pipeline Analysis Forecast Accuracy Up-sell/Cross-sell Cycle Times Lead Conversion Sales Team Effectiveness CRM ANALYTICS MARKETING Campaign Effectiveness Customer Insight Product Propensity Market Basket Analysis Campaign ROI SERVICE & CONTACT CENTER Service Effectiveness Customer Satisfaction Resolution Rates Service Rep Efficiency Service Cost Service Trends FINANCIALS General Ledger Accounts Receivable Accounts Payable Cash Flow Profitability Expense Management ERP ANALYTICS PROCUREMENT & SPEND Direct & Indirect Spend Buyer Productivity Contract Compliance Supplier Performance Purchase Cycle Time Employee Expense SUPPLY CHAIN & ORDER MGMT Revenue & Backlog Inventory Analysis Fulfillment Status Customer Status Order Cycle Time BOM Analysis PRICE LOYALTY PROJECTS HUMAN RESOURCES Price Segments Price Waterfall Analysis Deal Life Cycle Deal Desk Analysis Product Pricing Performance Member Demographics Membership Trends Program Revenue Promotion Effectiveness Points Analysis Project Funding and Budget Product Cost Project Revenue Project Billing Project Profitability Employee Productivity Compensation Talent Management Recruiting Analysis Learning Analysis Workforce Profile ORACLE BI SUITE ENTERPRISE EDITION PLUS SOURCE ADAPTERS: Other Sources 76

72 Solving a Business Problem with Analytics Alex, I've setup an appointment for us to meet on Monday to discuss the following: 1. Margin Our Q2 margins were very disappointing and I simply can t allow this to happen again. I need you to figure out what went wrong and how we can get back on track in Q3. We have to address this immediately if we have any chance of delivering acceptable results next quarter. This is my most pressing concern right now. 2. Cash Flow - As you know, we're considering another acquisition to help with top line growth. But The Board wants us to do everything possible to minimize taking on additional long-term debt. Are there opportunities for us to improve cash flow in our business? Looking forward to our discussion. Bob 77

74 Oracle BI Applications Suite Other Key Capabilities Embedded Powerful Inquiry and Reporting Engine Easily create adhoc inquiries/reports Quickly expand delivered dashboards as needed Oracle BI Mobile App Access all BI content via any IOS device 79 Copyright 2013, 2012, Oracle and/or its affiliates. All rights reserved.

76 Disconnected Processes Across the Enterprise 81

77 Data Silos Across the Organization 82

78 Oracle s Comprehensive Integrated Solution Sales Marketing Supply Chain Service Finance Project HR Strategy Mgmt Planning & Forecasting Profitability Mgmt Financial Close ERP HCM SCM CRM Horizontal and Industry-Specific 83

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