Financial Management

Oracle 11i10 Applications

Don GruesuApplication Specialist

Agenda

Key Takeaways Product Family Footprint New Products Highlighted New Functionality Cross-Sell Up-Sell Analyst Remarks & Competition Customer Stories

Key TakeawaysKey Takeaways

Key Takeaways• New Products

Enterprise Planning & Budget Bill Presentment ArchitectureiAssets

• Corporate Governance Spend is over $1B; Oracle remains the solution leader; integration w/ Projects added in 11i10

Receivables Integration w/ Trade Management

Stronger Credit Management with Advanced Collections

Better Cash Management and Forecasting added to Cash Management

Significant enhancements to Lease Management and Property Manager

Customer Data Management is a focus

Product FootprintProduct Footprint

AnalyticApplications

AnalyticApplications

MarketingApplications

MarketingApplications

Pull-Through Apps

Pull-Through Apps

Financial IntelligenceFinancial IntelligenceCorporate Performance ManagementCorporate Performance Management

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Oracle Financial Product Families

Enterprise Asset Mgmt, Enterprise Install Base, Service Contracts,Enterprise Project Management, Tutor, Scripting, iSurvey, Trade Mgmt, Demand Planning, eCommerce, Advanced Collections

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New ProductsNew Products

New Products

Enterprise Planning & Budgeting (EPB)

An application for Planning, Budgeting, Forecasting, Reporting, Monitoring and Analysis

Bill Presentment Architecture A template-based configuration of bills for online presentment and printing; billing data can come from non-Oracle AR sources

iAssets Allows non-Financial users to manage asset transfers, asset ownership and location tracking in a self service manner

Enterprise Planning and Budgeting

Manage your business processes and each process run

Control each plan’s time frame and level of detail

Pick process tasks from a library Define process schedule and

versions to retain Integrate to all data sources using

open interface tables Create multidimensional crosstabs

and graphs, covering historical, current and projected data

Rotate, drill, apply formatting and color coding, analyze by exception, insert calculations, annotate cells

Budget at corporate, divisional, and operational levels

Generate worksheets automatically Cascade distribution of worksheets

down the hierarchy, setting targets at each level

Spread and grow with built-in functions

Monitor status of submissions Approve or reject worksheets before

consolidation Set automatic exception alerts

based on the budget or actuals Request explanations from those

accountable

Define• Identify KPIs

• Develop plans basedon corporate strategy

Analyze• Run multi-dimensional

what-if scenarios

• Calculate variance

• Determine profitability

• Add user-defined annotations

Create• Identify organization

• Map plans to budget lines

• Develop hierarchies

• Build financial models

Distribute• Streamlined automated process

• Budget lines by Org

• Notify managers

Submit & Approve• Adopt budget

• Notify managers

• Document / post

DefineDefine DistributeDistribute AnalyzeAnalyze SubmitSubmit ApproveApproveCreateCreate

Integrated Business ProcessesStreamline the Planning and Budgeting Cycle

Monitor & Improve• Create budget book & monthly pack reports

• Analyze variance

• Examine exceptions

• Re-forecast

Planning Process ManagementPlanning Process Management

Example of tasks

1111

This shows the tasks for This shows the tasks for the Annual Budget the Annual Budget business processbusiness process

Automated Planning Process MgmtSimplify Administration and Auditability

• Clearly Define thePlanning Process

- Rules- Schedules

• Automate Tasks- Set calendars- Distribute worksheets- Solicit & validate submissions- Communicate assumption changes- Route for approval

• Track Actions and Status

- Tasks- Owners

Consistent Plan and Budget DefinitionEnsure Agreement with Corporate Strategy

Share business drivers, constraining models, and allocation rules across the enterprise to ensure consistency…

• at various time scales• at multiple levels of detail

CorporateStrategy

CorporateStrategy

5 YearPlan

5 YearPlan

Fiscal YearPlan

Fiscal YearPlan

Quarterly Plan for Rolling18 Months

Quarterly Plan for Rolling18 Months

Business Unit 1Plan

Business Unit 1Plan

Business Unit 2Plan

Business Unit 2Plan

Business Unit 3Plan

Business Unit 3Plan

• between business units

Comprehensive AnalysisValidate New Plans with Historical Information

• Integrate Financial & Operational Data from Multiple Sources- Data warehouses- Spreadsheets- Legacy / proprietary systems- Oracle sources

• Perform Analysis

- Business calculation templates

- Industry templates- Standard reports

and graphs- Ad hoc analysis

- Trends- Variances- Cause & effect

relationships- Impact on profits

ToolsTools InsightsInsights

• Share Analyses via Briefing Books

How is EPB different than OFA/OSA?

Feature OFA & OSA EPB

Installation/maintenance

Express Server

Oracle9i DatabaseE-Business Suite 11i

Client VB, Java HTML

Graphics Good Outstanding

Text commentary Text FDI Cell-level annotations

Workflow None Built in feature

Process management None Built in feature

Exception alerts None Built in feature

Data processing set up Manual Automated

End user calculations Express expressions

Business calculation templates

New FunctionalityNew Functionality

New Functionality

General Ledger Globalizations Receivables iReceivables Advanced

Collections Payables iPayment Internet Expenses Cash Management Treasury

Management

Assets iAssets Property Manager Lease Management Corporate Performance

Management Corporate Governance Customer Data Management Public Sector Financials

Support for Industry Specific Processes

• Communications• T&T: Airlines• Utilities• Oil & Gas

Asset Intensive

• Financial Services

• Professional Services

• Eng & Construction

• Retail & Real Estate Mgmt

Service

• Public Sector

• Healthcare: Provider

• Education & Research: Hi-Ed

Public Services

ManufacturingManufacturing

• High Technology

• Industrial Manufacturing

• Life Sciences

• Chemicals

• Aerospace & Defense

• Automotive

• Consumer Goods

Analyst Remarks Analyst Remarks &&

CompetitionCompetition

Market Opportunity

AMR Research predicts that Sarbanes-Oxley spend in 2005 will be$5.5 billion with 20% of that ($1b) on technology to automate thatprocess.

- Section 404 requires tighter controls

Corporate Governance Sarbanes-Oxley

Section 404 Required Capabilities

Oracle KPMG PaisleyConsulting

PeopleSoft Protiviti SAP Documentum Hyperion RCTS

Workflow Management Tools

NO NO NO

Document Management Tools

NO NO NO NO NO

System Configuration Tools

NO NO NO NO NO NO

Survey Tools NO NO NO NO NO NO NO

Procedure Documentation Tools

NO NO NO NO

Process Control Limits

NO NO NO NO

Sampling and Statistical Tools

NO NO NO NO

Project Management Tools

NO NO NO NO NO

Market Opportunity

Spending on planning and budgeting software will be $597.5M in 2005,

rising to $832M by 2008. Planning and budgeting software is 38% of

the CPM market. 53% of that market is in North America , 34% in

EMEA, and 8% in APAC.

–IDC, 2004 Worldwide Financial, Analytic and Business Performance Management Market

Competitive Attack Points forEnterprise Planning & Budgeting (EPB)

Enterprise Vendors

Niche Vendors

Cross-Sell, Up-SellCross-Sell, Up-Sell

SegmentKey Pains /

Business Issues

Message /

Value PropositionNext Likely Purchase

Financials, HR

High cost of compliance (30-50% increase in audit fees; 15,000 hours (avg.) to comply with Section 404)Overlapping requirements (IFRS, Basel II, SAS 70, 21 CFR Part 11, SEC 17a-4)

Reduce people cost of compliance with streamlined financial and operational risk managementReduce audit cost with audit project managementMeet shared requirement of information integrity with auditable records management

Internal Controls ManagerProjectsCollaboration Suite

Financials, HR

Risk of non-compliance due to lack of employee training

Enforce policies and procedures iLearning

Financials, HR

Rapid disclosure of material eventsNo real-time visibility into compliance exposure

Monitor financial and operational exceptions in real-time

Balanced ScorecardDaily Business Intelligence

Financials, HR

Risk of not meeting financial objectives

Monitor actual vs. target variances to predict performance and compliance risk

Enterprise Planning and Budgeting

Technology Customer

Too many manual controlsNo confidence in the numbers (only 27% Finance Execs trust numbers)Difficulty meeting accelerated filing requirements (40% multinational companies unable to)

Secure access and application controls (segregation of duties, Workflow)Single source of truthConsolidated information

E-Business Suite

Corporate Governance

Oracle FinancialsCross-Sell Messaging for Existing Oracle Customers

If Customer has Sell them… Why – What is the Benefit

General Ledger Global Intercompany System

Global Consolidation System

Internal Controls Manager

streamlined I/C trading & reconciliation;

multi-source consolidation and rapid close

for monitoring and certifying compliance

Receivables Credit ManagementiReceivablesBill Presentment ArchitectureCustomers OnlineCustomer Data LibrarianAdvanced CollectionsTrade ManagementiPayment

for intelligent credit decisioning supportfor online bill presentment, payment & historyfor flexibility in bill presentmentfor accurate customer insight and faster bill routingfor cleaner customer datafor streamlined deliquency and dispute resolutionfor automated deduction resolutionfor electronic payment processing

Payables Internet ExpensesiProcurementiSupplier Portal

for travel and spend managementfor streamlined procure to pay processingfor online self service supplier invoice entry & inquiries

Oracle FinancialsCross-Sell Messaging for Existing Oracle Customers

If Customer has Sell them… Why – What is the Benefit

Lease Management Credit Management

Advanced Collections

Service Contracts

For intelligent credit decisioning support

For streamlined deliquency & dispute resolution

For usage based billing and All in one contracts

Property Manager Enterprise Asset ManagementEnterprise Project Management

For facilities management and asset maintenanceFor new construction and leasehold improvements management / capitalization

Corporate Management

Activity Based ManagementBalanced ScorecardEnterprise Planning & Budgeting

For improved profitability and resource allocationFor management by exception using tolerancesFor planning, monitoring and controlling Budgets

Multinational Financial Operations

Cash Management

Treasury Management

Risk Management

for managing liquidity and controlling cash

for improved visibility to and efficiency of treasury deal management

for managing financial risk w/ Treasury Ops

Customer StoriesCustomer Stories

Financial Management Customers…

13,000 Financial Customers

8,000 11i Financial Customers

High TechHigh Tech

Financial Management Customers…

Discrete MfgDiscrete Mfg

Process MfgProcess Mfg

Consumer RetailConsumer Retail

Asset IntensiveAsset Intensive

ServiceService

Public ServicesPublic Services

In SummaryIn Summary

Key Takeaways• New Products

Enterprise Planning & Budget Bill Presentment ArchitectureiAssets

• Corporate Governance Spend is over $1B; Oracle remains the solution leader; integration w/ Projects added in 11i10

Receivables Integration w/ Trade Management

Stronger Credit Management with Advanced Collections

Better Cash Management and Forecasting added to Cash Management

Significant enhancements to Lease Management and Property Manager

Customer Data Management is a focus