HPCM Management Ledger & FDMEE: The Perfect Partnership?

EDGEWATER RANZAL

HPCM Management Ledger & FDMEE: The Perfect Partnership?

The Perfect Partnership?

Q&A

Conclusion and Final Thoughts

Prelude

Introduction

Edgewater Ranzal is a full-service Oracle Platinum Consulting Partner delivering premier services in the UK and North America

We deliver Business Analytics solutions that include Oracle Hyperion Enterprise Performance Management (EPM) and Business Intelligence (BI)

Our multiproduct focus offers domain expertise and technical leadership using the Oracle Hyperion Product Suite

We have industry expertise and specializations to help us deliver end-to-end solutions for each client’s business needs

Ray Fevrier – Practice Manager

• Functional Skill Areas– Enterprise Performance Management

(EPM)– Business Intelligence– Metadata and Data Integration

• Technical Skill Areas– Essbase (BSO/ASO)– Oracle Data Integrator (ODI)– Financial Data Quality Management

(FDM/FDMEE)– Informatica (DIM)– Data Relationship Management (DRM)– Essbase Studio– Essbase Integration Services (EIS)– Hyperion Application Link (HAL)

• Industry Exposure– Utilities– Government– Telecommunications– Logistics/Transportation– Financial Services

Industry– Investment Industry– Healthcare– Manufacturing– Insurance

Andrew Laferla – Project Lead Consultant

• Functional Skill Areas– Enterprise Performance Management

(EPM)– Activity Based Costing and Regulatory

Costing– Business Intelligence– Enterprise Planning and Budgeting

• Technical Skill Areas– Oracle (Hyperion)– Essbase (BSO / ASO)– HPCM (Hyperion Profitability and Cost

Management)– Hyperion Performance Scorecard (HPS)– Calculation Manager– Shared Services / EPMA – SmartView – CXO Cockpit

• Industry Exposure– Utilities– Government– Parastatal– Telecommunications– Logistics\Transportation– Financial Services

Industry– Investment Industry– Healthcare– Manufacturing– Insurance


Q&A


Introduction

Prelude

Introduction

Problem Statement

FDMEE

Management Ledger

Problem Statement

• Organizations today live and die by the decisions they make. – Meaningful interpretation of the huge amount of organization

data into actionable information is of the utmost importance.– Their ability to control costs and generate sustainable, profitable

growth is imperative in creating shareholder value.

• Once the Financial Close Process has been optimized, finance has an opportunity to provide tremendous value to their internal business partners by facilitating and supporting the closed loop management disciplines of strategic planning, rolling forecasts & profitability analysis.

Problem Statement

• Organizations need information management solutions that typically contain the following key characteristics:

Flexibility

• 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

Accuracy

• Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.

• Achieve this through meaningful allocations, automation, and system controls

Shared Methodology

• Define consistent allocation and charge back methodology across all management cycles.

• Ensures consistent comparisons when reviewing and updating methodology result and planning for future management cycles.

Transparency

• 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.

Introduction

FDMEE

Problem Statement

Management Ledger

Oracle’s solution for enabling seamless Metadata (for EBS and PeopleSoft) and Data Integration Combines ERP Integrator (ERPI) and FDM into a single product

– Upgrades ERPI to FDMEE with FDM features added– Legacy FDM not available starting with release 11.1.2.4

Develop direct “out of the box” integration– Sources prioritized based on market demand

Open Interface Adapter– Use when “out of the box” integration not available– Licensing allows modification to ODI packages delivered with FDMEE

File

Other RDBMS

Oracle ERP, SAP

Data Strategy Management

Financial Close

Planning & Forecasting

Profitability Management

Financial Reports

Microsoft Office

Metadata & Data

Drill-Through & Write-Back

Web Interface

Meta-data

Financial Data Quality Management, Enterprise Edition

FDMEE – Main Product FeaturesSource System /Import Format

Define sources including files and ERPs, and then map the source columns/fields to dimensions in EPM applications

Mapping Rules Identify how source dimensionality translates to target dimensionality. This is the heart of the FDMEE application

Data Load RulesCreate an integration definition that can be reused each period. Uses a point of view specified by the user for period, category, etc.

Scripting Customize FDMEE processing using Jython or Visual Basic scripting

Reporting Modify seeded reports or create new reports using BI Publisher

Batch Processing Create batch definitions that can be scheduled and run in “offline” mode

Data Synchronization(New in 11.1.2.4)

Select EPM Applications as an integration source, including HFM journals

Data Synchronization

• ERP to EPM• EPM to EPM• EPM to ERP

– Write-back supports Budget or Actual

– EBS and PSFT only

• Any Source to Custom Application– Generates a file flat

ERP Sources

Profitability and Cost Management and

Essbase

HFM and Tax

Planning

Introduction

Management Ledger

Problem Statement

FDMEE

Hyperion Profitability and Cost Management

“Oracle Hyperion Profitability and Cost Management provides actionable insights into costs and profitability. It drives business performance by discovering the drivers of cost and profitability and empowering users to improve resource alignment. Oracle Hyperion Profitability and Cost Management leverages Oracle Essbase for faster, more powerful multi-dimensional analysis”

• HPCM has evolved over the years to include 3 separate modules:– Standard Profitability (Version 11.1.1.1)– Detailed Profitability (Version 11.1.2.2)– Management Ledger (Version 11.1.2.4)

• All HPCM modules have separate Use Cases but overlap in some critical areas.

HPCM - Modules

HPCM – Modules Differentiation

• Standard Profitability– Version 11.1.1.1– Focuses on contribution analysis, following the flow of cost and

revenue funds through all stages of the process to determine where funds are coming from, and where they are going.

• Detailed Profitability– Version 11.1.2.2– Provides a single-step allocation of pools or rates from a single

source to a destination for the purpose of analyzing profitability.– Detailed Profitability utilizes a relational database for model

artifact storage, calculations, and reporting views.


• Management Ledger– Version 11.1.2.4– Management Ledger applications are designed for

use by analysts who have deep domain experience in the computation and reporting methods of management reporting, but who may not have much experience with Essbase and scripting syntax or programming languages.


Model Complexity

Reporting and Analysis

Ease of MaintenainceEnd-User Focus

Data Volume Handling

Standard Profitability Management Ledger Detailed Profitability

Standard Profitability Detailed Profitability Management LedgerModel Complexity 5 2 4Reporting and Analysis 5 3 4Ease of Maintenaince 3 3 5End-User Focus 4 2 5Data Volume Handling 2 5 4

Introduction

Q&A



Prelude


Data Flow Overview

HPCM Management Ledger (Demo)

FDMEE (Demo)

Data Flow

Staging Area

Hyperion Workspace Hyperion Essbase

Smartview / FR

AnalyticsLayer Smartview

/ FRHPCM Analyst End User

HPCM Management Ledger

EPMA

Source Systems

HPCM Standard Model

HPCMASO

Reporting (ASO)

HPCMBSO

HPCM ASO

Color Scheme Metadata Load (ODI) Metadata (EPMA) Data Load (FDMEE)

Intra HPCM Management Ledger Data Flow

Source Data•Multiple Source data systems including:•General Ledger and other ERP applications•Relational Tables (Driver and other Metric Tables)•Excel/Flat Files

Flatten •Intrastage Profit Centre allocations to allocated ‘anchor’ Profit Centres to the relevant sibling ProfitCentres•Driver based on Source input.

Allocate •Intra Stage Allocations to allocate from Back End Profit Centres to other relevant Profit Centres..•Driver is percentage based.

Expand •Cross dimensional allocations from No_Region to multiple regions based on the Legal Entity Association•Driver based on Number of Customers.

PCM_MNT


FDMEE (Demo)


Data Flow Overview



FDMEE (Demo)

Data Flow Overview

HPCM Management Ledger

Navigation

Managing Rules

Reporting

Management Ledger – Navigation

• Simplified Task Area• Key Task Areas have fallen away

• Stages• Importing Staging Tables• Driver Definitions and Selections• Data Entry

• Simplified Rule Management


Managing Rules

Navigation

Reporting

Management Ledger – Managing Rules

Sets the context for ALL rules

Rule based context

Rules belonging to the selected Rule Set

POV Selection


Number that appears in Traceability Maps

Sequence of the Rule in the Rule Set

Allows for a flat percentage or amount to be allocated out

Available dimension after Global and Rule context

Member Selection which CAN BE A PARENT

Limited filtering based on UDA or member name



Similar functionality as in Standard HPCM

Member Selection which CAN BE A PARENT

Limited filtering based on UDA or member name


• No driver selections or exceptions section.

• By default at destination but can be set wherever relevant location.

Management Ledger – Manage Calculations

POV SelectionComments that appear in the Job Library

All Rules, a range of rules sets or a single rule can be run in at a single time

Validating Applications – Rule Balancing

Unallocated Amount

Amount Allocated Out Per RuleSet

RuleSet Name


Reporting

Navigation

Managing Rules

Reporting – Traceability Maps

Reporting - Flatten• Data is at the required level (Levelling/Normalisation):

• Data has been Allocated from ‘Anchor’ Profit Centres to all relevant Profit Centres based on initial Source data.

• Anchor Profit Centres are fully allocated out.• Total Profit Centre amounts remain consistent through each stage.

Reporting - Allocate• Data must be allocated from Back-End Functions to Front-End Functions.

• Data is allocated to Front-End Function based on a Percentage Driver• Anchor Profit Centres do not receive cost.• Total Profit Centre amounts remain consistent in through stage.

Reporting - Expand• Data must be expanded from No_Region to the appropriate Region.

• Data is expanded based on the Legal Entity ownership.• Data is expanded across Regions based on Customer Count.• Total Profit and Total RegionCentre amounts remain consistent in through stage.

Introduction

Q&A



Prelude

Conclusion

FDMEE

• Data integrity.• Data drill back to source.• Process monitoring of data load.• Automation/Batch Runs.• Metadata Management*• DRM integration**• Data Synchronization between

applications• Minimized Dependency on IT

Management Ledger

• End User Focused Modelling – no technical learning curve.

• Dynamic Modelling ability.• Automated Running of Calculations.• Fast Modelling Change Turn

Around.• Fully Traceable and Auditable Data

Transformation.• Minimized dependency on IT.

Data is provided to the relevant stakeholders in an effective, efficient and meaningful way!

Flexibility

• 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

Accuracy

• Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.

• Achieve this through meaningful allocations, automation, and system controls

Shared Methodology

• Define consistent allocation and charge back methodology across all management cycles.

• Ensures consistent comparisons when reviewing and updating methodology result and planning for future management cycles.

Transparency

• 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.

FDMEE and HPCM Management Ledger – Making a F.A.S.T approach even FASTER

Conclusion

Introduction



Q & A

Prelude

HPCM Management Ledger & FDMEE: The Perfect Partnership?

Software

Transcript of HPCM Management Ledger & FDMEE: The Perfect Partnership?