diane furst re hyperion
Post on 23-Jan-2015
1.047 Views
Preview:
DESCRIPTION
TRANSCRIPT
Compliance Update
Mike MalwitzSr. Product Marketing Manager
Hyperion
Copyright © 2005, Hyperion. All rights reserved. P. 2
The Financial/BPM Market
Hyperion 2x nearest competitor2004 Worldwide Financial/BPM Revenues2004 Financial / BPM Market Shares
HYSL21%
ORCL9%
COGN8%
SAP7%
Other55%
97.2
121
119
292.6
64.3
61.88GEAC
SAS
SAP
COGN
ORCL
HYSL
Note: 40% Market Share in Financial Consolidations!
Source: IDC, 2004IDC counts software license and maintenance in their revenue estimatesIDC derives their numbers independently, without validation from Hyperion
2004 Total Market: $1.4B2004-2009 CAGR of 11.3%
Copyright © 2005, Hyperion. All rights reserved. P. 3
Corporate Performance ManagementGartner Magic Quadrant
The Magic Quadrant is copyrighted 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner'sanalysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner.Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action.Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Magic Quadrants for CPM Suites, 2005: October, 2005; N Raynor, F Buytendijk, LGeishecker
Copyright © 2005, Hyperion. All rights reserved. P. 4
Hyperion is Recognized by Analysts at IDC and AMR
H. Morris, R. Blumstein, D. Vesset,"Worldwide Total Analytic Applications Software Competitive Analysis, 2003: 2002 Shares and Current Outlook“. August 2003
“Hyperion retains its position (held since IDC established the category in 1997) as the leading analytic applications vendor by revenue…”
Hyperion Vendor Profile, February 2003
“Hyperion has an excellent position and vision into financial performance management.”
Copyright © 2005, Hyperion. All rights reserved. P. 5
Business Performance Management Cycle
Strategy
Customer profitability
Benchmarking
Financial ModelingFinancial reporting
Sales planning
Procurement andsupplier analysis
Working capital management
Copyright © 2005, Hyperion. All rights reserved. P. 6
Data
Information
Value Added Actions
Finance Performance Level
Business Impact
Change AgentStrategic Level
ScorekeeperOperational Level
Business PartnerTactical Level
• Focus on Critical Issues• Resource Allocation• Corrective Actions
ExecutiveScorecards& Models
BusinessReporting and Analysis
• Data Analysis• Decision Support
• P&L, Balance Sheet Delivery• Transaction Efficiency• Fiscal Reporting
Local IT Systems
Customer Example: Business Reporting Systems, Process and People Linkage
Core Business Processes
Copyright © 2005, Hyperion. All rights reserved. P. 7
The Most Complete Solution Offering
BUSINESS PERFORMANCE MANAGEMENT SOLUTIONS
BPMAPPLICATIONS
HYPERIONBI PLATFORM
Scorecarding and Dashboarding
ModelingPlanning,
Budgeting and Forecasting
Consolidation and Reporting
Tailored Applications
Analytics Performance Metrics
Query and Reporting
Enterprise Reporting
Developer Tools
Core and Data Integration Services
LEGACY MDB DW ERP CRM
Copyright © 2005, Hyperion. All rights reserved. P. 8
Agenda
Consolidation AccountingGovernance, Compliance and Business Performance Management– Analyst Viewpoints– Business Challenges (SOX, COSO, etc.)
Financial Consolidation, Reporting and Compliance— Features and Benefits
Copyright © 2005, Hyperion. All rights reserved. P. 9
Consolidation Accounting
Accounting CycleMechanics of the Close – subledgers, general ledgers, consolidation and reportingManagement vs StatutoryStandard Setting BodiesRecognition and MeasurementConsolidation and Reporting
— ARB51/IAS27: Consolidated Financial Statements and IntercompanyEliminations
— FAS94/IAS27: Consolidation of Majority-Owned Subsidiaries — FAS 8/FAS52/IAS21: Foreign Currency Transactions and Translations— FAS95/IAS7: Statement of Cash Flows— FAS131/IAS14: Disclosures about Segments of An Enterprise
Copyright © 2005, Hyperion. All rights reserved. P. 10
In September, IBM in collaboration with the EIU completed the global CFO survey data collection with 889 CFOs and senior finance professionals
Distribution by Geography
Americas, 44%
EMEA, 33%
Asia Pacific, 23%
Distribution by SectorComms, 14%
Distribution, 23%
Financial Services, 26%
Industrial, 25%
Public, 12%Less than $1B,
18%
$1B to 5B, 24%
$5B to 10B, 27%
Greater than $10B, 31%
Distribution by Business Turnover
Distribution by Title
CFO/Deputy CFO/CRO/SVP, 40%
Treasurer / Audit / Sr. Business /
Other, 4%
Finance Mgr, 6%
en'l Mgr, SSCs, 8%
Controller/Asst Controller, 18%
Finance Director/VP, 23%
Distribution by Scope
Enterprise / global, 47%
Region, 17%
Country, 20%
BU / Program Area, 15%
CFO Survey 2005 Firmographics
Source: IBM Business Consulting Services, The Global CFO Survey 2005
Copyright © 2005, Hyperion. All rights reserved. P. 11
Executive SummaryCFO Survey 2005 Summary
Finance is emerging from a period of foundation-buildingFoundations are enabling the linkage of controls/risk, performance management and business insightIntegration of information can catalyze the close alignment on Finance’s focus and effectivenessThe agile Finance organization utilizes processes, tools, technology and organization to balance business needsEmerging model for Finance keeps the upside opportunity and downside risk in balance to maximize returns
Copyright © 2005, Hyperion. All rights reserved. P. 12
Overall Finance aspires to manage performance, drive greater insight and value, strengthen controls and meet fiduciary requirements
Finance’s Top Areas of FocusMost Important Areas of Focus in Role as a Finance Professional
Percent of High Responses (Responses = 870)
Source: IBM Business Consulting Services, The Global CFO Survey 2005
0% 20% 40% 60% 80% 100%
Meeting fiduciary and statutoryrequirements
Leading finance-related complianceprograms and strengthening the internal
control environment
Continuous process improvement /business improvement
Partnering with your organization to identifyand execute growth strategies
Measuring / monitoring businessperformance
Aligns with the profitable growth agenda identified in IBM’s 2004 CEO study
Reflects the top priority identified in IBM’s 2003 CFO study
Reflects the current regulatory environment
Managing performance
Driving insight and
value
Managing controls and
risk
Copyright © 2005, Hyperion. All rights reserved. P. 13
Need for Performance VisibilityRegulatory
Requirements
FragmentedSystems
High Cost of Information Access
Unreliable Plans & Forecasts
ComplexOrganizations
Reporting & Controls Overhead
Pressure on Profitability
Earnings Expectations
Copyright © 2005, Hyperion. All rights reserved. P. 14
Components of a Compliance Architecture
SarbanesSarbanes--OxleyOxley
EU DPDEU DPD
IASIAS Basel IIBasel IICFR Part 11CFR Part 11
Basel IICFR Part 11
Business Process Management, Integration Broker, BAMAssert Process Controls
CPMReporting and Risk
Acronym KeyERP = enterprise resource planning EU DPD = European Union Data Protection Directive
BusinessUnit
Systems
CRM andCustomer-
Facing Systems
FinancialandERP
Systems
Classify, Analyze, InterpretBI Infrastructure, Tools and Applications
Document and ArchiveRecords Management, Document Management, Knowledge Management,
Content Management and Storage
Identify, Audit, Secure and ProtectIdentity and Access Management, Network Security and Business Continuity
Copyright © 2005, Hyperion. All rights reserved. P. 15
PWC Whitepaper on Spreadsheets and SOX
Change ControlVersion ControlAccess ControlInput ControlSecurity and Integrity of DataDocumentationDevelopment LifecycleBackupsArchivingLogic InspectionSegregation of DutiesAnalyticsBottom Line: Almost impossible to build a compliant spreadsheet environment –evaluate a purpose built application instead.www.pwcglobal.com
Copyright © 2005, Hyperion. All rights reserved. P. 16
What’s New: COSO2 ERM
New with COSO2
The four objectives categories - strategic, operations, reporting and compliance - are represented by the vertical columns. Strategic objectives are new.The eight components are represented by horizontal rows. Objective Setting, Event ID and Risk Response are new.The entity and its organizational units are depicted by the third dimension of the matrix.
New with COSO2
New with COSO2
Copyright © 2005, Hyperion. All rights reserved. P. 17
““While identifying control deficiencies and significant deficiencies represents an important component of management's assessment, the overall focus of internal control reporting should be on those items that could result in material errors in the financial statements.”
US Securities and Exchange Commission
Commission Statement on Implementation of Internal Control Reporting Requirements
May 16, 2005
Copyright © 2005, Hyperion. All rights reserved. P. 18
““The internal control environment extends to …the period-end financial reporting process including the preparation of both annual and quarterly financial statements, including controls over procedures used to record recurring and nonrecurring adjustments to the financial statements (for example, consolidating adjustments, report combinations, and reclassifications).”
US Securities and Exchange CommissionPCAOB Auditing Standard No. 2March 9, 2004
Copyright © 2005, Hyperion. All rights reserved. P. 19
Global Issues
International Financial Reporting Standards— Recognition and Measurement— Consolidation and Reporting— Transition Issues— US-GAAP Harmonization— Segment Reporting— Impairment (Fair Value) analysis— UK Operating and Financial Review (OFR)
Sustainable Development ReportingCanadian Continuous Disclosure Obligations— (aka “Bill 198” or “NI 51-02”)— Canadian Version of Sarbanes-Oxley
Copyright © 2005, Hyperion. All rights reserved. P. 20
IFRS Success Stories
WELLAFlexibility of HFM was key to IFRS compliance at Wella AG Dr Dietmar Scheja, who was Head of Corporate Financial Analysis at Wella AG faced significant issues after the group had completed its IFRS implementation.“We had separate consolidation models for management and financial reporting. They were never completely in step and we had the added burden of making sure that what we reported externally to shareholders in IFRS agreed with what we were saying to management.”The flexibility of HFM really became apparent when the Wella Group was taken over by Procter and Gamble and was required to report under US GAAP as well as IFRS and local GAAP. “At first we simply added US GAAP adjustment members to the existing custom dimensions and put through the larger adjustments at a consolidated level. But later we were able to push responsibility for US GAAP adjustments down to the reporting,” says Dr Scheja. “HFM was also vital in allowing us to reconcile results between US GAAP and IFRS so that we could explain the differences”.“The most outstanding benefit of HFM is its flexibility. We were able to accommodate US GAAP when it was suddenly sprung on us and prepare profit forecasts in HFM very quickly and relatively easily without incurring big consulting costs. This really was a key benefit”.
Copyright © 2005, Hyperion. All rights reserved. P. 21
IFRS Success Stories
FINANCIAL TIMES (Pearsons)Centralised web based model gave Pearson Group plc visibility of IFRS Pearson Group plc, the publishing giant which owns the Financial Times has dual listings in the UK and the United States. As such, Andrew Midgley, Head of Financial Reporting had to cope with complex multi-GAAP issues when transitioning the group from UK GAAP to IFRS. “It was difficult at first because there was considerable uncertainty around the application of standards which were still subject to change,” says Midgley. An initial paper based exercise quickly identified the types of IFRS adjustments that had to be handled at the centre and those which could be posted by the reporting units. “There were fewer adjustments at the reporting entity level than we had expected and they tended to be relatively small. They mainly related to acquisitions, intangibles, leases, and joint ventures,” says Midgley. “Adjustments at the centre were bigger and more complex and included pensions, share option expense, deferred tax and financial instruments.” Given this relatively straightforward background, the group was quickly able to establish a unified chart of accounts in HFM covering, UK GAAP, IFRS and US GAAP. It was then a simple matter to post the adjustments against these accounts as required.Segmental reporting was a challenge but the group was already accustomed to the concept under US GAAP even though not all of the detail is required to be published in the US.
Copyright © 2005, Hyperion. All rights reserved. P. 22
Sarbanes-Oxley Background
Most significant legislation since the Great Depression11 major sections (or “Titles”)
— Public Audit— Corporate Responsibility— Financial Disclosures— Brokerage Practices— Penalties
Adoption by SEC is proceeding
Copyright © 2005, Hyperion. All rights reserved. P. 23
Sarbanes-Oxley Background
Copyright © 2005, Hyperion. All rights reserved. P. 24
Sarbanes-Oxley Background
Copyright © 2005, Hyperion. All rights reserved. P. 25
Sarbanes-Oxley Background
Copyright © 2005, Hyperion. All rights reserved. P. 26
Sarbanes-Oxley Background
Copyright © 2005, Hyperion. All rights reserved. P. 27
IDC Compliance Chasm Excerpts220 CFOs Surveyed
Copyright © 2005, Hyperion. All rights reserved. P. 28
Copyright © 2005, Hyperion. All rights reserved. P. 29
How Hyperion Addresses Key Compliance Requirements
Upstream/HAL, FM Dimensions, Journals Module, Task/Data Audit
Clear audit trails from source to 10K¥10Q (2003)
SAS99
Financial Management – That’s what it’s all about!
10K in 75 days moving to 60 (2005)Accel. Filings
Financial Management “What If” capabilitiesPro-forma reconciliations
Off-balance sheet trans. (2003)
401
Financial Management, Hyperion BI PlatformRapid disclosure of material changes –“Real Time” reporting (Mar 2004)
409
1. FM - Close and Reporting Controls and Audit Trails
2. Integration with Hyperion Technology and GSI Partners: IBM Business Controls,Axentis, Upstream, OpenPages
Annual assessment of effectiveness of internal control and COSO Compliance (Dec 2004)
404
Cascading certification with FM Process Management, Doc Attachments, Cell Text
Quarterly certification of financial statements (2002)
302
Hyperion SolutionRequirement/Eff. DateSect.
Copyright © 2005, Hyperion. All rights reserved. P. 30
Agenda
Consolidation AccountingGovernance, Compliance and Business Performance Management– Analyst Viewpoints– Business Challenges (SOX, COSO, etc.)
Financial Consolidation, Reporting and Compliance— Features and Benefits
Copyright © 2005, Hyperion. All rights reserved. P. 31
Disconnected Silos of Information
XL
Word
ppt
Copyright © 2005, Hyperion. All rights reserved. P. 32
Unifying Financial Information
Documentation
Copyright © 2005, Hyperion. All rights reserved. P. 33
FM/SOX Presentations at Hyperion’sSolutions 2005 User Conference
Migrating From Hyperion Enterprise to Financial Management at Comcast: Christine Diantonio, Comcast & Tara Krause, ComcastAchieving Sarbanes-Oxley and Continuous Improvement Objectives Within the Corporate Reporting Cycle: Heather Wilson,PricewaterhouseCoopers & Dean Curtin, PricewaterhouseCoopersMeeting Sarbanes-Oxley Requirements With Hyperion HUB: Edward Roske, interRel ConsultingDelivering Accountability Across the Enterprise With Financial Management at TV Guide: Diane Furst, Gemstar-TV GuideInternationalOptimizing Financial Reporting With Financial Management at Kansas City Life Insurance: Rob Fisher, Kansas City Life Insurance & Jeff Branton, MarketSphereMeeting Sarbanes-Oxley Compliance and Beyond With Financial Management at Royal AHold: Tim Wassman, Axentis
Copyright © 2005, Hyperion. All rights reserved. P. 34
Hyperion Financial Management Benefits
Tax/TreasuryDetailed AnalysisInternal ReportingExternal ReportingProduct Line Profitability
Accelerates Reporting Cycles and Reduces Costs of Compliance
Shortens close-cycles to report in a timely and accurate mannerUnifies financial and operational results into “one version of the truth”Provides complete audit trails and process controls to reduce costs of complianceProvides detailed management information for better decision makingAutomates processes so Finance staff can spend more time on analysis
Copyright © 2005, Hyperion. All rights reserved. P. 35
Close Process…It’s Not Easy!
Local Regional Central
ERP/GL
Monthly/Quarterly
Actual ResultsInput/Load
SubmitValidate
Input/LoadSubmitValidate
Input/LoadSubmitValidate
MonthlyForecast
AnnualBudget
Process
• Review
• Approve
• Adjust
• Consolidate
Submit
Approve
Reject
Reject
Approve
Approve
Reject
Approve
Process
• Review
• Approve
• Adjust
• Consolidate
• Intercompany
• Currency
PublishReports
SECTax
LegalTreasury
Management
Copyright © 2005, Hyperion. All rights reserved. P. 36
Hyperion Financial Management Features
Patented financial consolidation and reporting featuresComplete audit trails, workflow and validations “Smart Dimensionality”Flexible "what if" scenario management featuresPowerful, reporting and analysis toolsFull integration with ERP and other transaction systems Easy to customize and extendWeb-architected
Market-leading Financial Consolidation and Reporting Application
Copyright © 2005, Hyperion. All rights reserved. P. 37
Financial ManagementSOX-Specific Features
Segregation of Duties— Roles— Classes— Authentication— Metadata security
filtering
Documentation— Cell Text and
Document attachments
Change Control— Versioning of metadata— Comparisons of
metadata updates
User Monitoring— Users on System
Audit Trail— “G/L to 10Q” Audit Trial— Task Audit— Data Audit— System and Event Logs— Intercompany Transactions
User Interface— Process Management
— Control mechanism for data submission
— Signoff required— Prevent Control Validations
enforced— Workspaces
— Control how a user interacts with system (Basic vs Advanced)
— Provide controlled task flow— Task Automation
— Repeatable Processes
Copyright © 2005, Hyperion. All rights reserved. P. 38
User Interface - Process Management
Copyright © 2005, Hyperion. All rights reserved. P. 39
Annotation Indicator
Attachment of full MS Word Commentary,
then Print In HyperionReports
Copyright © 2005, Hyperion. All rights reserved. P. 40
Hyperion Shared Services -Metadata Compare
Copyright © 2005, Hyperion. All rights reserved. P. 41
XBRL Output From Financial Reporting: Available Now!
JDE
SAP
Oracle
Copyright © 2005, Hyperion. All rights reserved. P. 42
Summary
Business Performance Management Has Major Role in ComplianceSarbanes-Oxley has had a profound impact on U.S. businessesHyperion has the right applications and tools to helpHyperion customers are well equipped to handle Sarbanes-Oxley, IFRS and any other regulations
top related