epm sales bootcamp alain floch – director apac sales consulting oracle epm
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EPM Sales BootcampAlain Floch – Director APAC Sales ConsultingOracle EPM
Session Agenda
• EPM and Management Excellence • The Value of Oracle’s EPM System• Recorded Demonstration • Key Audiences for EPM• Customer Case Studies• Q&A’s
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EPM and Management Excellence
Smart Companies Capitalized on the Downturn
“A downturn is a terrible thing to waste. It's easier for everyone to understand the need for the change when things are tough and the risks are lower.” - Frank Blake, CEO Home Depot, Wall Street Journal, June 2008
"This is not the time for tech companies to be
cutting back…this is the time to be hitting the accelerator.” – Peter Thiel, Facebook board member and investor, BusinessWeek, November 2008
"This is not the time for tech companies to be
cutting back…this is the time to be hitting the accelerator.” – Peter Thiel, Facebook board member and investor, BusinessWeek, November 2008
High-Impact Strategies
High-Impact Strategies
Today’s Reality: Management Processes Are Fragmented
• Lack of business alignment• Low predictability in performance• Inconsistency in business decisions
FINANCIAL MODELING
SIX SIGMA
ANALYZE PERFORMANCE
GOAL SETTING
SCORECARDS FINANCIAL REPORTING
VARIANCE ANALYSIS
ROLLING FORECAST
OPERATIONAL PLANNING
MONITOR RESULTS
Is this the best way to work in difficult times?
Management Excellence: The Next Competitive Edge
Time
CompetitiveAdvantage
OPERATIONAL EXCELLENCEOPERATIONAL EXCELLENCE
MANAGEMENT EXCELLENCEMANAGEMENT EXCELLENCE
Cost – Lean and MeanQuality – Six Sigma, TQMSpeed – Real-time, JIT
Cost – Lean and MeanQuality – Six Sigma, TQMSpeed – Real-time, JIT
Smart – Deep InsightAgile – Decisive ActionAligned – Across the Extended Enterprise
Smart – Deep InsightAgile – Decisive ActionAligned – Across the Extended Enterprise
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The Value of Oracle’s EPM System
Oracle EPM System Elevator Pitch
• Oracle EPM System streamlines your management processes by cutting down the inefficiencies and time you spend on budgeting, consolidation, reporting, etc.
• It brings together all the crucial information which are important for the users to view, analyze and make decisions.
• It provides a centralized platform which automates tasks like data collection, install workflow disciplines, and simplifies reporting and analyses.
• In a nutshell, it aligns the entire organization to the common strategy and goals.
BI Applications
EPM Workspace
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
BI ApplicationsPerformance Management
Applications
Oracle EPM SystemIndustry’s First Integrated EPM System
BI Applications
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
BI ApplicationsPerformance Management
Applications
EPM WORKSPACE
Web AlertsOffice MobileDesktop Search
Pervasive Information Access Through a Unified EPM Workspace
• Single sign on• Process integration with PM
Applications• Now provides access to OBI Tools
and Applications • User interface filtered
by security• Tabbed view of content• One place for applications,
reporting and administrative content
EPM WorkspaceIntegrates Management Processes into a Common Environment
Business Value: Improved User Productivity, Lower Training and Deployment Costs
Smart View for OfficeCommon MS Office Interface to EPM System
• Adhoc Reporting• Stylized Output:
• Formats
• Tables
• Charts
• Formulae
• Data Entry and Apps Processing
• Word and PPT• Now works with
OBIEE as source
Business Value: Improved User
Productivity, Lower Training and
Deployment Costs
EPM Workspace
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
BI ApplicationsPerformance Management
Applications
BUSINESS INTELLIGENCE FOUNDATION
Essbase BI Server Predictive Analytics
Common Enterprise Information Model
Scalable and Unified BI Foundation
Market Leading Performance Management Applications
BI Applications
EPM Workspace
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
BI ApplicationsPERFORMANCE MANAGEMENT APPLICATIONS
StrategyManagement
BusinessPlanning
ProfitabilityManagement
FinancialReporting &Compliance
Market-leading Performance Management Applications Suite
Master DataBusiness Rules
Metrics/KPIsTargets, Plans & Actuals
Strategic PlanningSet Strategic Objectives
CorporateDevelopment
TreasuryStrategies
Long-TermPlanning
Cost and Profitability ManagementDefine Costing
Methods
Perform Allocations
Report & AnalyzeDefine Cost
Drivers
Financial Close Process
Data Cleansing
ConsolidateInternal
Reporting & Analysis
External Reporting & Compliance
Cascade Targets
Allocate Resources
ForecastingDetailed
Budgeting
Planning and Budgeting
Oracle Enterprise Performance Management Applications – Strategic Products
Domain Products
Strategic Planning Hyperion Performance Scorecard
Hyperion Strategic Finance
Crystal Ball
Planning & Budgeting Hyperion Planning
Hyperion Workforce Planning
Hyperion Capital Expense Planning
Financial Close Management for Consolidation and Reporting
Hyperion Financial Management
Hyperion Financial Data Quality Management
Cost and Profitability Management Hyperion Cost and Profitability Management
FundingFundingAnalysisAnalysis
CorporateCorporateValueValue
LT PlanningLT Planning CorporateCorporateDevelopmentDevelopment
Consolidate regions, business units, mines
Commodity price & FX analysis
Life of reserve / mine analysis
Capital investments
Cash flow analysis
Funding requirements
Balance sheet management
M&A, divestitures
Joint ventures, alliances
Valuation
Deal structures and synergies
HSF - Create a Strategic Financial PlanIntegrated Financial Modeling to Manage Corporate Value
• Analyze Trail Feature• Visualize model logic
• Consolidation Intelligence• Complex entity structures
• “Deal Period” Functionality• Create M&A simulations
• Debt Scheduler• Cashflow implications of debt
• Funding Options• Optimize capital structure
• “What-If” Analysis Toolkit• Unlimited scenarios
HSF - Create a Strategic Financial PlanManage Scenarios and Increase Modeling Speed
• What-if analysis
• Scenario comparison
• Consolidate multiple scenarios
• Goal seek
HSF - Create a Strategic Financial PlanForecast Financials Through Scenario Analysis
Selected HSF Customers - APAC
Oracle Enterprise Performance Management Applications – Strategic Products
Domain Products
Strategic Planning Hyperion Performance Scorecard
Hyperion Strategic Finance
Crystal Ball
Planning & Budgeting Hyperion Planning
Hyperion Workforce Planning
Hyperion Capital Expense Planning
Financial Close Management for Consolidation and Reporting
Hyperion Financial Management
Hyperion Financial Data Quality Management
Cost and Profitability Management Hyperion Cost and Profitability Management
Budgeting Process is Highly Inefficient
• Time – takes too long, results obsolete
• Quality – political/negotiation, not reflective of business
• Cost – many wasted resources, dubious benefits
• Flexibility – lack of responsiveness to changes
FP&A Group
Senior Management
Dept A Dept B Dept C
Streamline Planning, Budgeting and Forecasting
• Centralized, not distributed• Short budget cycles• Collaboration across organization• Consistent assumptions and
calculations• Accurate data and plans• Accountability• Align top-down with bottom-up• Driver-based planning• Rolling forecasting
Single Centralized Planning Platform
Income Statement
Balance Sheet Cashflow
CORE FINANCIAL PLANS
Workforce Planning
CapEx Planning
SPECIALIZED MODULES
Sales Planning
CUSTOM BUILT
Projects Planning
Marketing Planning
ProductionPlanning
Essbase Business Analytics Server
Hyperion Planning Application
Data Warehouses Transactional Systems Performance Management Applications
EPM Workspace
Hyperion PlanningShortens Planning Cycles and Improves Business Predictability
• Powerful workflow and process management
• Intuitive interface• Robust data integration • Leverages Essbase – powerful
reporting and analysis• Scalable web infrastructure• Special-purpose planning
modules for fast deployment
Oracle’s Hyperion Planning – Delivering Predictable Results
• Accuracy – one planning platform for all the modules, improving processing time and accuracy, as well as reducing the maintenance overhead
• Performance – Essbase, award winning OLAP engine, boosting the scalability and performance of any planning application
• Simplicity – one reporting workspace enabling real time, side-by-side planning, forecasting and analysis
Fundamental Capabilities
CAPABILITY DETAIL
Planning and Analysis
Fully embedded into BI and Microsoft Office for real-time reporting and analysis
Modeling The ability to model at the operational level, assessing impact to the overall strategic plan
What-if See the business impact of changing business drivers to make intelligent decisions
Collaboration Technology that allows the entire user community to communicate and plan in real time as well as offline
Top-down/Bottom-up Bi-directional planning capabilities to promote accuracy and accountability
Hyperion PlanningStatistics @ July 2007
Hyperion Planning - Nr of Customers
908972
1,0411,151 1,189
1,2641,334
1,4331,485
1,5511,637
1,736
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY05-Q1 FY05-Q2 FY05-Q3 FY05-Q4 FY06-Q1 FY06-Q2 FY06-Q3 FY06-Q4 FY07-Q1 FY07-Q2 FY07-Q3 FY07-Q4
Worldwide 1736
US 1053
EMEA 458
APAC 225
Hundreds of Global ReferencesHyperion Planning
Oracle E-Business Suite PeopleSoft Enterprise
Proven Scalability and PerformanceCustomers Deploy Planning Enterprise Wide
10,000 members/dimension
> 20 million intersections
9,000 entities 7,000 entities
26,000 accounts30,000 employees
15,000 members/dim 30,000 employees
700 KPIs in 24 dimensions
Oracle Enterprise Performance Management Applications – Strategic Products
Domain Products
Strategic Planning Hyperion Performance Scorecard
Hyperion Strategic Finance
Crystal Ball
Planning & Budgeting Hyperion Planning
Hyperion Workforce Planning
Hyperion Capital Expense Planning
Financial Close Management for Consolidation and Reporting
Hyperion Financial Management
Hyperion Financial Data Quality Management
Cost and Profitability Management Hyperion Cost and Profitability Management
Oracle Financial Consolidation and Reporting Applications & ToolsPurpose Built for Each Step of the Process
Financial Close Process
Data Cleansing ConsolidateInternal
Reporting & Analysis
External Reporting & Compliance
Hyperion Financial Data
Quality Management
Hyperion Financial
Management
Hyperion Web Analysis
Smart View
Hyperion Financial
Reporting
Oracle Hyperion Financial Management Accelerates Reporting Cycles and Reduces Costs of Compliance
• Patented financial consolidation and reporting features
• Complete audit trails, workflow and validations
• “Smart Dimensionality” • Flexible “what if” scenario
management features• Powerful, reporting and analysis
tools• Full integration with ERP and
other transaction systems • Easy to customize and extend• Web-architected
Fundamental Capabilities
CAPABILITY DETAIL
Reporting Most flexible solution in the market, periodic
consolidation, segment reporting, fin. intelligence
Consolidation Multi GAAP capabilities, flexibility, variance analysis,
audit trail, intercompany, phased submissions
Compliance Workflow, documentation attachments, commentaries,
electronic questionnaires, disclosures
Data Integration Financial data quality management employed to
collect, map, validate & move data
MS Office Integration
Bi-directional capabilities within MS Office suite for real-time, accurate information
Oracle’s Hyperion Financial Management Benefits
• Confidence in the numbers – One integrated solution (FDM+ HFM) for all data improving processing time and accuracy with complete audit trails and validation processes
• Decrease cost of compliance – Financial Management with a flexible workflow, process control, intercompany balance and transaction eliminations, commentaries and electronic questionnaires help organizations to focus on value added tasks
• Speed and agility – Improve the close cycle by days with Finance owned workspace, a centralized DB and EPM Architect to implement and maintain the application with confidence and rapidity
Financial Data Quality Management (FDM) Financial Data Quality Differentiated
Oracle’s Financial Data Quality Management (FDM) helps finance users increase their confidence in the numbers and lowers their cost of compliance by eliminating data integrity risks associated with collecting, mapping, validating, and moving critical financial data from across the enterprise.
Financial data quality management is a business issue, and is defined as the practice by which companies can effectively and consistently combine the following four factors:
• Financial data collection and transformation• Repeatable financial processes• Internal controls• Audit trails
SOURCESYSTEMS
• Data cleansing and transformation
• Task scheduling• Text and document
archive• Audit review• Data staging
• Prepackaged integration• Data loading including
supplemental data, line item detail
• Dimensional mapping verification
• Process management
• Excel• Flat files• ODBC• GL/ERP• Oracle EBS• PeopleSoft• SAP R/3
• Hyperion Financial Management
• Hyperion Planning• Hyperion Essbase• Hyperion
Enterprise• Data Marts
DATA PREPARATION
SERVER
EPM SYSTEM
COMPONENTS
GUIDED WORKFLOW USER INTERFACE
EPM Adapters
Hyperion Financial Data Quality ManagementEnsure Accurate Financial Reporting and Planning
Hyperion Financial ManagementHyperion Planning, Essbase
Oracle Account Analysis and Drill-Down for both
Actual and Budget
Hyperion FDM Oracle EBS R11
Drill-through to General LedgerInsight into Action in a Single System
Hyperion Financial ManagementHyperion Planning, Essbase
Hyperion Financial Data Quality Management
Drill-through to General LedgerInsight into Action in a Single System
SAP R/3 4.6c or ECC 6.0
Select Hyperion Financial Management Customers: 1300+ WorldwideCommunications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences Services/Other
Oracle Enterprise Performance Management Applications – Strategic Products
Domain Products
Strategic Planning Hyperion Performance Scorecard
Hyperion Strategic Finance
Crystal Ball
Planning & Budgeting Hyperion Planning
Hyperion Workforce Planning
Hyperion Capital Expense Planning
Financial Close Management for Consolidation and Reporting
Hyperion Financial Management
Hyperion Financial Data Quality Management
Cost and Profitability Management Hyperion Cost and Profitability Management
Profitability Management Questions
• What defines a profitable customer?
• What is the profit contribution margin of a product or a service?
• What does it cost to sell or service customers?
• What proportion of resources does a customer consume?
Why hasn’t reducing costs increased profitability?
Hyperion Profitability and Cost ManagementActionable Insights into Costs and Profitability
• A packaged application that drives business performance by:• Discovering drivers of cost and profitability • Empowering users with visibility and
flexibility • Improving resource alignment
• Leverages the power of Essbase• Designed for the business user• Leverages existing IT investments
Selected HPCM Customers
Product Profitability
Product, Channel ProfitabilityCost of Service
Product/Channel/Segment/ Customer Profitability
Shared Services CostingCost to Serve
Shared Services CostingPricing Contracts
Regulatory Reporting
Shared Services CostingRegulatory Reporting
Product ProfitabilityCustomer Profitability
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Recorded Demonstration
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Key Audiences for EPM
Key Audiences for EPM
• Senior Execs/CXO (Chairman, CEO, President, CFO, CIO – senior management team)
• Office of the CFO (CFO, VP Finance, Controller, Treasurer, VP/Director of Financial Planning & Analysis, VP/Director of Financial Reporting etc.)
• Line of Business Executives (VP Sales, Marketing, Customer Service, HR, Procurement, Operations, Business Unit General Managers)
• IT Executives (CIO, VP/Director of Information Systems)
Which of the following are likely to be your company’s priorities in the next three years?
49.4%
48.2%
31.4%
31.0%
27.8%
26.9%
19.2%
16.3%
15.9%
13.1%
0% 10% 20% 30% 40% 50% 60%
Increasing profitability
Revenue growth
Driving innovation
Increasing market share
Reducing costs
Improving customer service/loyalty
Strengthening relationships with key stakeholders
Strengthening corporate brands
Corporate social responsibility
Completing mergers and acquisitions
Senior Executives/CXO’s
High Yield Questions: • How do you balance the conflicting demands of
different external stakeholders?• How well is your company able to adapt to changing
business conditions?• How do you identify and allocate resources to new
business opportunities?• How do you ensure individual and workgroup goals
and activities are aligned to corporate objectives?• Do your decision-makers have a single, reliable view
of your financial and operating results?
What’s Important to the CFO? Everything.
Source: IBM Global Business Services, The Global CFO Study 2008
Measuring / Monitoring Business Performance
Continuous Process Improvement / Business Improvement
Meeting Fiduciary and Statutory Requirements
Driving Integration of Information Across the Enterprise
Developing People
Aligning Finance with the Business
Driving Cost Reduction
Leading Finance-Related Compliance Programs and Strengthening Internal Controls
Inputs into Identifying and Executing Growth Strategies
Supporting / Managing / Mitigating Enterprise Risk
CFO agenda
ImportanceEffectiveness
40%
65%
51%
55%
37%
42%
80%
60%
71%
72%
73%
75%
75%
74%
76%
84%
30%
45%62%
66%
Senior Finance Executives
High Yield Questions: • Do you know how you are performing compared to plan, how to spot the
variances in a timely manner, and what actions to consider / take to meet goals?
• How well are you able to forecast future results and meet market expectations?
• How do you evaluate the financial implications of operational plans? How do you link financial goals to operating plans?
• How efficient is your financial reporting process? Are you delivering timely information to internal and external stakeholders?
• How are you managing your costs of compliance?• Are you able to understand profitability by product/service line, customer
segment and distribution channel?• Do you have a consistent set of business definitions and metrics across
your business?
CIO and IT Executives
High Yield Questions:• How satisfied are your line managers with the timeliness and
accuracy of information you provide them to support their financial and operational decisions?
• Are you fully leveraging the investment and data generated by your ERP systems?
• How much time and effort do you spend moving data and trying to link the current point solutions you use to support the business performance management process?
• Do you have a consistent set of business definitions and metrics in use across your company? How much time and effort are you spending trying to maintain consistency of business definitions and master data across multiple systems?
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Customer Case Studies
What If You Can Overcome a Major Liquidity Crisis?Hyperion Strategic Finance
Before
Lost investment-grade credit rating Needed recapitalize balance sheet No cash flow modeling capability No simulations at the divisional or
business unit level
$22 Billion global provider of power and automation technologies
After
Credit rating back to investment grade $4 Billion debt restructuring Simulate capital structure and cash flow 3% accuracy in net income projection
Reduce Planning From Weeks to DaysHyperion Planning
Before
Distributed Excel planning Two weeks P&L reporting Quarterly forecast Hampered corporate alignment Management had to wait for reports
Heineken Asia Pacific, a division of one of the world’s leading international brewers, implemented Hyperion Planning in only 40 days on top of SAP
After
Centralized planning system Two days P&L reporting Rolling forecast In sync with corporate goals Management has instant online access
First to Report on the Dow Jones Hyperion Financial Management
Before
• 12+ days to close
• Many analytical technologies
• Complex reporting and forecasting
processes
• Hours to create reports
After
• 5 days to close
• Global consolidation across 58
lines of business
• Global forecasting and reporting
solution for 1,000+ users
• Minutes to access information
The world’s leading producer of primary aluminum with $23.5 billion in revenues with operations in 43 countries and 350 locations. Alcoa has over 131,000 employees.
• Enterprise Performance Management• Business Analytics• Database• Database Share on Linux• Supply Chain Management• CRM • Retail • Communications • Human Capital Management• Financial Services• Public Sector• Professional Services
Leader in Key Markets
Forrester Wave™: Business Performance Solutions, Q4 2007
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Source: The Forrester Wave™: Business Performance Solutions, Q4 2007 – Paul Hamerman, October 10, 2007
http://www.oracle.com/corporate/analyst/reports/infrastructure/index.html#bi
Oracle Confidential - For Internal Use Only
Gartner: Magic Quadrant for CPM Suites, 2009
The Magic Quadrant is copyrighted 30 April 2009 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's analysis 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.
This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle. Source: Gartner, Inc., “Magic Quadrant for CPM Suites, 2009” by Nigel Rayner, Neil Chandler, John E. Van Decker, James Holincheck, 30 April 2009.
Oracle Confidential - For Internal Use Only
Oracle #1 in Financial Performance and Strategy Management Applications - IDC
Other30%
SAS5%
SAP24%
IBM/Cognos9%
Oracle26%
Infor6%
2008 Total Market: $2.22B2007-2008 Growth: 12.2%
2008 FPSM Apps Revenues2008 Market Shares
210
582
528.2
109
99SAS
Infor
COGN
SAP
ORCL
Source: IDC, 'Worldwide Financial Performance and Strategy ManagementSoftware 2008 Vendor Shares‘, June 2009, Doc #218656IDC counts software license and maintenance in their revenue estimatesIDC derives their numbers independently, without validation from Oracle
Gartner Dataquest: CPM Suites, APAC, 2008
SAS9%
SAP20%
Others23%
Infor6%
IBM14%
Oracle28%
Total Market Share 2008
IBM0.0%
Infor8.4%
Oracle21.1%
SAP9.1% SAS
8.9%
IBM13.6%
Infor6.0%
Oracle28.3%
SAP19.9%
SAS8.9%
0%
5%
10%
15%
20%
25%
30% Total Market Share 2007 vs. 2008
2007 2008
• 2007 Revenue: $0.09B (US)
• 2008 Revenue: $0.1B (US)
Source: Gartner, Market Share: CPM Suites, Worldwide, 2008 – Dan Sommer, Neil Chandler - June, 2009
Total Market Size
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Key Takeaways
The Market Leader in Enterprise Performance Management
Strategic Products with high growth potential
Integrated with Oracle E-Business Suite and PeopleSoft, a Key Play to attack SAP accounts
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Where to get more information?• http://apps.oraclecorp.com/epm/
• APAC contacts:• Alain Floch: [email protected] (APAC Domain Leader)