5. world class enterprise planning rita final

Delivering World Class Enterprise Planning Process

Margarita Varvitsioti

EPM Sales Manager- Romania & GCMM Cluster

Agenda

• Overview Enterprise Planning

• Solution Overview

• Delivering World Class Enterprise Planning

• Customer Success

• Question & Answers

Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 2

AVG. HOURS FOR FINANCIAL MODELING

Reduce Budget Cycle by Months,

Scenario Analysis by More Than 50%


MONTHS TO ASSEMBLE BUDGET

0

1

2

3

4

5

6

7

Marginal Stable Best in Class Transformational

Pre Post

0

2

4

6

8

10

12

14

16

18

Marginal Stable Best in Class Transformational

Pre Post

Yapı Kredi Bankasi A.Ş. Cuts Budgeting and

Planning Time for Sales Representatives

CUSTOMER PERSPECTIVE

“Thanks to Oracle Hyperion

Planning, we are able to define

budgets and targets for our 840

branches throughout Turkey in a

single month, based on a single

version of up-to-date information. As

a result, our forecasting and analysis

processes have become more

sophisticated.”

Yilmaz Arisoy, former Head of MIS

and Business Planning

COMPANY OVERVIEW

• One of the top four banks in Turkey, offering financial services to 6 million customers in 840 branches throughout the country

• Industry: Financial Services• Employees: 16,000• Revenue: US$4 billion

CHALLENGES/OPPORTUNITIES

• Reduce the effort required to calculate sales targets and budgets for the company’s 4,000 sales representatives and 840 branches by at least 50%

• Provide precise and accurate sales targets on the first day of each financial year to the company’s sales representatives and branches

• Create a centralized and automated solution to eliminate any manual calculations that are prone to errors

• Redeploy staff assigned to manual calculations of sales targets and budgets to more valuable analytical tasks

SOLUTIONS

• Oracle Hyperion Planning

RESULTS

• Consolidated data into a single,

centralized, and automated system

• Achieved more detailed and precise

budgeting and balancing of targets

• Redeployed several full-time

employees to analytical tasks, such

as balancing targets

September 2010

<Insert Picture Here>

Overview Enterprise

Planning


Run models based on key strategies

Set targets

Seed targets to annual operating plan

Start annual process

Update strategic plan with latest forecast

Evaluate resource and capital requirements

Long-term strategic plan

Annual budget / plan

Validate operational feasibility

Evaluate workforce and

capital

Monthly / rolling

forecast

Update long-term strategic

plan

Achieve a World Class Enterprise Planning

Process

Assess and Manage Risk


Validate operational feasibility to financial plan

Update forecast with latest budget and actuals

Disconnected Processes Lead to

Inefficiency and Missed Targets

• 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


FP&A

Senior Management

Annual Plan & Forecast

Revenue & Cost Models

M&A

Departmental Plans

Headcount Plans

Treasury Plans

Long-Term Planning


Delivering a World Class

Enterprise Planning

Process


Oracle EPM Connects Management

Processes


Common Integration & AnalysisData Quality and Consistent Dimensions

Common Reporting & Interaction

Strategic Planning

Financial Close

Planning & Forecasting

Profitability Management

Critical Components to Implement Planning Best Practices


Capital AssetsPlanning

Workforce Planning

Long-Term Financial Planning

FinancialDetail

OperationalDetail

Predictive Modeling & Simulation

OperationalRevenue & Cost

Modeling

Planning, Budgeting & Forecasting

Functional Plans

ProjectPlanning

MarketingPlanning

Forward-looking Analytic Engine


Long-term Planning, Corporate Development

and Treasury in a Single Model

• Integrated financial

statements

• Project shareholder value

• Run unlimited scenarios

• Consolidate multiple

business combinations

• Evaluate strategic projects

• Simulate effects of M&A

• Debt Scheduling

• Optimize capital structure




Workforce PlanningLong-Term

Financial Planning

FinancialDetail

OperationalDetail



Modeling


Functional Plans

ProjectPlanning

MarketingPlanning


Public Sector Planning & Budgeting

Capital Assets Planning

Balance Sheet Planning

Future Industry Solutions for

Public Sector and Financial Services

Key CapabilitiesAccelerate the Enterprise Planning Process

• Centralized system

• Align top-down and bottom-up

• Consistent assumptions

• Common allocations &

calculations

• Integrated Operational Planning

to address in-depth revenue and

margin planning

• Purpose-built Capital Assets and

Workforce planning modules for

fast deployment

• Powerful workflow and process

management for budgeting and

forecasting

• Leverages Essbase – powerful

reporting and analysis


Oracle Hyperion Planning 11.1.2.Major Enhancements Streamline Planning and Forecasting

• Enhanced Process Management

– Vary workflow by scenario/version

– Pre defined promotional path

– Data driven promotional path

• Composite Form Layout Manager

• Web Form Enhancements

– Conditional formatting and process-based

data validation

– Ad hoc web data entry forms

– Freeze, Sorting and filtering

– Member Selector enhancements

• Better Integration with Microsoft Office

– Excel: Allow Planners to perform Planning

tasks in familiar MS Office environment

• Task Based Workflow

• Traffic Lighting & Data Validation

•Budget Book

Budget Books

Hyperion Planning 11.1.2

• Define a budget book with sections and subsections with a table of contents

• Financial Reports, MS Word, HTML, PDF and other file types as sections or attachments in the Book

• Generate the book in PDF output or a static HTML web site

• Templates will be provided for HTML layout and page customization

• BI Publisher support

• Support table of contents edits and web-site navigation links

• Leverage book printing options in workspace

• Built in search capability for HTML output

• Integration with Document Management System (Stellent)

Copyright © 2010, Oracle and/or its affiliates. All rights reserved. Company Confidential – Version for Internal Use Only 15

• Forecasting

• Scenario comparison

• Trending

• Goal seeking

• Procedural calculations

• Custom Calculations

• What if testing

Essbase is a Powerful CalculatorHundreds of Built-in Functions and Algorithms




Capital AssetsPlanning

Workforce Planning


FinancialDetail

OperationalDetail



Modeling


Functional Plans

ProjectPlanning

MarketingPlanning



Modeling

Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

Profitability and Cost ManagementDelivers Detailed Cost and Profitability Insight

• Flexible measurement,

allocation and management

of costs and revenues

• Computation of Profitability

for business, product, and

customer segments

• Profitability measurement by

using cost decomposition,

consumption-based costing,

and scenario playing


Customer Success


Ursus Breweries Achieves More Informed

Decision-Making with Reporting Solution

CUSTOMER PERSPECTIVE

“Any company that wants to switch

from time-consuming data input to

value-added planning, improved

analysis, and well-supported

decision-making should deploy

Hyperion Planning.”

Cristina Popovici, Finance

Development Manager

COMPANY OVERVIEW

• Produces a range of respected beers, including Ursus, Timişoreana, Stejar, and Ciucaş

• breweries in five Romanian cities, and is owned by SAB Miller, one of the world’s largest brewers

• Industry: Consumer Goods• Employees: 2,000• Revenue: US$450.8 million

CHALLENGES/OPPORTUNITIES• Reduce use of manual processes, such as comparing

spreadsheets, during business planning activities • Accelerate decision making and gain the ability to react much

faster to changing market conditions • Strengthen ability to monitor key value drivers and evaluate the

financial impact of specific decisions, such as pricing or marketing spend for the company’s various brands of beer

• Improve collaboration across Ursus Breweries by standardizing business planning model rules and ensuring data consistency, within a flexible and decentralized environment for each department

SOLUTIONS• Hyperion Planning

RESULTS

• Reduced reliance on spreadsheets

for reporting and planning, enabling

the planning team to focus on value-

added analyses and interpretations

• Established scenario planning

• Used Hyperion Planning Fusion

Edition’s deep analysis capabilities

to swiftly and accurately model and

compare the financial impact of

specific decisions

• Cut the risk of human error

February 2010

Predict 12 Month Rolling Sales

Worlds largest steel company

$124 billion of revenues

103 million tons of steel production

Before

Rapid growth put strain on reporting

systems

Spreadsheet-bound management

information

Lack of performance comparison

across businesses and processes

After

Predict sales on 12 month rolling basis

Cost benchmarking reduced variables

costs of steel production

Embed best practice planning in the

business

Get information to the right people at

the right time, without using

spreadsheets
