Enterprise Performance Management - Oracle

Insert Picture Here Smart strategies for difficult times - Oracle roadmapto management excellenceOana CraciunescuEPM Sales Leader – South Eastern Europe

Agenda Expanding From Operational Excellence toManagement Excellence EPM to Drive Management Excellence Oracle EPM SystemCopyright 2008, Oracle and/or its affiliates. All rights reserved.

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

From Pressure to PerformancePressure ComplianceCost cuttingIT as an enabler OperationalExcellenceCopyright 2008, Oracle and/or its affiliates. All rights reserved.Performance GovernanceGrowthIT as a driver ManagementExcellence

Pillars to Achieving ManagementExcellenceSMARTRationalize YourManagement SystemsAGILEIntegrate Management Systemswith Operational SystemsALIGNEDShare Insights Across theExtended EnterpriseCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Today’s Reality:Management Activities Are SiloedGOALSETTINGVARIANCEANALYSISSIX pyright 2008, Oracle and/or its affiliates. All rights reserved.FINANCIALREPORTING

Oracle’s Framework for AchievingManagement ExcellenceCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Align Stakeholder Interests Gain greater access to capitalBuild better supplier, partner and customer relationshipsRetain more engaged employeesImprove environmental transparencyCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Manage Market Opportunities Investigate market dynamicsMatch market potential with resourcesSize investments and divestmentsBenchmark performance against key competitorsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Analyze Scenarios Assess scenarios for alternative future outcomesCreate strategies for addressing these alternative futuresModel business combinations, partnerships, acquisitionsSelect optimal capital structure to support strategyCopyright 2008, Oracle and/or its affiliates. All rights reserved.

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

Operational Agility Monitor variances continuously Track root causes across lines of business Analyze detailed customer profitability Adjust forecasts and redeploy resourcesCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Integrate Reporting Processes Combine financial and operational information Deliver timely, actionable insights to all stakeholders Include economic, environmental and social impact Meet regulatory reporting requirementsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle’s EPM System Integrates KeyManagement ProcessesEXTERNALREPORTINGSTRATEGIC & FINANCIAL MODELINGPREDICTIVE MODELINGBUSINESS PLANNINGPROFITABILITY & COST MANAGEMENTMONITORING, ANALYSISFINANCIALREPORTINGBI REPORTING TOOLS & APPLICATIONSOLAPDATA QUALITY, DATA INTEGRATION & MASTER DATAAPPLICATION & METADATA MANAGEMENTCopyright 2008, Oracle and/or its affiliates. All rights reserved.

IntroducingOracle Enterprise PerformanceManagement SystemDriving Management Excellence byDelivering Predictable ResultsImproving Transparency and ComplianceIncreasing Business AlignmentCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Market-leading PerformanceManagement Applications SuiteStrategic PlanningPlanning and BudgetingSet StrategicObjectivesCascade lopmentMaster DataBusiness RulesMetrics/KPIsTargets, Plans & ActualsFinancial Close ProcessCost and Profitability ManagementDefine rting &AnalysisExternalReporting &ComplianceDefine CostDriversReport & AnalyzePerformAllocationsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Market-Leading Packaged ApplicationsFinancial and OperationalEPM WorkspacePERFORMANCE MANAGEMENT APPLICATIONSPerformance porting &ApplicationsManagementPlanningManagementBI ApplicationsComplianceBusiness Intelligence FoundationFusion MiddlewareOLTP & ODSSystemsData WarehouseData MartCopyright 2008, Oracle and/or its affiliates. All rights reserved.OLAPSAP, Oracle, Siebel,PeopleSoft, CustomExcelXMLBusinessProcess

Insert Picture Here Deliver PredictableResults:Integrate Strategic,Financial & OperationalPlanningCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Planning and Budgeting Challenges Time – takes too long, resultsobsolete Quality – political/negotiation,not reflective of business Cost – many wastedresources, dubious benefits Flexibility – lack ofresponsiveness to changesSenior ManagementFP&A GroupDept ACopyright 2008, Oracle and/or its affiliates. All rights reserved.Dept BDept C

Oracle Hyperion Strategic FinanceStrategic Financial Modeling in OneEnvironment Funding optionsDebt scheduler“What If” analysis toolkit“Deal Period” functionalityAnalyze trail featureFreestyle reportingCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion PlanningImproves Business Predictability Powerful workflowand process management Intuitive interface Robust data integration Leverages Essbase –powerful reporting andanalysis Scalable web infrastructure One platform for all theplanning needsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion Workforce PlanningHeadcount, Salary and Compensation Planning Packaged solution for quickimplementations Plan salary and othercompensation at any level Add, edit and deleteemployees and new hires Pre-defined or customcalculations for taxes, etc. Integrates actualsfrom HR systems Test scenarios in real-timefor impact analysisCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion Capital AssetPlanning Assets and DepreciationPlanning Packaged solution Customizable Plan for asset purchasesand asset relatedexpenses Transfer, retire, andimprove assets Directly linkedto main plan Interfaces withexternal systemsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion Smart View for OfficeEnables Enhanced Offline Planning MS Excel add-in allowingaccess on or off-line Develop budgets, plansand forecasts andcalculate impactanywhere (on/off-line) Users download forms toExcel Manipulate data just likethe full web client Synchronize to serverwhen readyCopyright 2008, Oracle and/or its affiliates. All rights reserved.

What If You can Overcome a MajorLiquidity Crisis? 22 Billion global provider of powerand automation technologiesBEFOREAFTER Credit rating back to investment grade 4 Billion debt restructuring Simulate capital structure and cashflow 3% accuracy in net income projectionLost investment-grade credit ratingNeeded recapitalize balance sheetNo cash flow modeling capabilityNo simulations at the divisional orbusiness unit levelCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Budget Formulation & Execution Analysis atthe Nuclear Regulatory CommissionThe NRC is an independent regulatory agency whose primarymission is to protect public health and safety, the common defenseand security, and the environment in the use of nuclear materials.BEFOREAFTER Manual budget formulation systemwas labor-intense, requiring datare-keying and multiplespreadsheets and staff had lack ofconfidence in numbers. Automated system that minimizestime spent entering data andmaximizes time spent analyzing thebudget and making betterforecasting. Difficult to forecast and reprogramand little visibility into varianceanalysis. Achieved financial data integrity fromthe budgeting process (no moredisparate spreadsheets w/multipledisconnected versions of the budget). Could not track or manageperformance against the annualplan and quickly/effectivelyforecast resource constraints.26 Ability to perform what-if analysis andquickly respond to changingscenarios within the budget process.

Planning Process ImprovementOracle’s Hyperion PlanningLeading supplier of electricity andenergyin EuropeNeedsAfter Chart of account and business ruleschanged with SAP implementation Unified, centralized, and secureplatform User-friendly budgeting tool Single solution across 4,000 users Support for large number of users Easy to maintain and quick to adaptto changing market requirements Integration within EDF’s technicalenvironment Reduce & automate budget process Quick to implement – 2 months27

Insert Picture Here Improve Transparencyand Compliance:Accelerate ReportingCycles and ReduceCosts of ComplianceCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Customer Pain Points Long period-end closing cyclesErrors in financial data collectionFinancial restatementsInconsistent account structureDozens of source systemsChanging disclosure requirementsRising audit feesCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion FinancialManagement Accelerates ReportingCycles and Reduces Costs of Compliance Patented financial consolidationand reporting features Complete audit trails, workflowand validations Flexible “what if” scenariomanagement features Powerful, reporting and analysistools Full integration with ERP andother transaction systems Easy to customize and extend Web-architectedCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Single Platform for Financial ReportingGlobal industrial company, deployed Hyperion FinancialManagement to unify financial reporting for US GAAP,IFRS, management and statutory requirementsBEFOREAFTER Multiple financial reporting systemsfor management, statutory, legal etc. Long reporting and planning cycles Difficult deployment of newapplications and software Manual intercompany reconciliations Slow delivery of financial informationto line management Centralized financial reporting systemfor all needs Streamlined financial reporting andplanning Faster, easier software andapplications deployments Automated intercompanyreconciliations Easy, secure access to financial resultsgloballyCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Insert Picture Here Increase Business Alignment:Align Strategy with Execution,Improve Resource AllocationsCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion PerformanceScorecard Aligns Strategy with Execution Translates strategiesinto objectives to establishownership andaccountability Communicate goals andobjectives to align an entireorganization Tailor scorecards byindividual or teams toincrease adoption Monitor key performanceindicators to track executionCopyright 2008, Oracle and/or its affiliates. All rights reserved.

Improving Communication andAlignmentNorwegian telecommunications provider with over 8 billion Eurosin revenue and 20,000 employees. Deployed HyperionPerformance Scorecard and complete suite of Hyperion EPMapplications and tools.BEFORE 6 different analysis/reporting tools,4-6 financial data warehousesolutions No common tool for budgeting anddependency on externalconsultants Information silos, no analysisacross companies Many user interfaces to work withacross many systemsCopyright 2008, Oracle and/or its affiliates. All rights reserved.AFTER Manage strategy and initiatives Agenda for the monthlymanagement meeting is driven bystatus of strategic objectives Strategic objectives tie intomeasures and initiatives Cost-cutting through process,system, & informationstandardization

Calculating Customer ProfitabilityNet Revenuefrom Sale ofProducts andServices toCustomerCopyright 2008, Oracle and/or its affiliates. All rights reserved.Cost of Activities toServe Customer:AcquireServiceSupportDeliverNet ProfitDeliveredby SpecificCustomer