oracle openworld 2015: enterprise performance management - executive briefing - matt bradley, svp,...
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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
Enterprise Performance Management Executive Briefing
Matt Bradley SVP, Product Development, Oracle
October 26, 2015
Presented with
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
EPM Today Reasonable adoption within Finance at larger organizations
Spreadsheets still dominate outside Finance
Low EPM adoption by mid-size divisions & organizations
Cloud is a key enabler of broader EPM adoption
Hybrid on-premise & cloud deployments pose new challenges
Alignment across LOB, divisional and corporate EPM efforts is a priority
EPM for every function, not just Finance
Easy adoption and Rapid value
Flexibility across On-premise & Cloud
What Organizations Need….
Oracle’s Vision EPM for Every Need
EXECUTIVE BRIEFING
Oracle’s EPM Strategy and Roadmap EPM Perspectives and Trends
October 26, 2015
WITH YOU TODAY
Morris Treadway Global FM and EPM Lead
KPMG Management Consulting
Sanjay Sehgal Principal, EPM
KPMG Management Consulting
AGENDA
Not permissible for KPMG audit clients and their affiliates
1 EPM Strategic Perspectives and Transformation
2 EPM Emerging Trends and Themes
3 Value of EPM enabled by Oracle
EPM underpins today’s business strategic priorities
ENHANCE CUSTOMER
EXPERIENCE
OPTIMIZE EARNINGS AND CASH
MANAGE RISK
GROW THE BUSINESS
ACHIEVE OPERATIONAL EXCELLENCE
MANAGE REGULATORY COMPLEXITY
In a fast-moving business and regulatory
environment, a holistic EPM solution enables
you to dynamically manage execution of
the business strategy and performance—
empowering you to act decisively on what
matters most to your organization anytime,
anywhere.
Business-led,
Technology enabled
Rethinking the concept and scope of EPM is critical
In today’s competitive environment, EPM must be business-led and results-oriented to help ensure the
value of EPM is sustained across the organization.
EPM is an
organizational
discipline and capability
to dynamically drive
performance
improvement of a
business and the
delivery of its strategy
Dynamic measurement and management
of goals and performance
Aligned behaviors and actions with
strategic objectives
Improved business insight and
decision making
Integrated business and financial planning
across all functions and domains
Business-led,
Technology enabled
When done right, EPM delivers…
FORWARD-LOOKING MINDSET
► Provides capability to anticipate and
predict impact to business outcomes
► Helps enable scenario (what if) analysis
based on key drivers, events, and
relationships
► Integrates with Sales and Operational
Planning including demand forecasting
FINANCE OPTIMIZATION
► Helps enable Finance to become a more
dynamic business partner across the
enterprise
► Improves speed, relevance, and access of
performance reporting and analysis
(insight)
► Improves Integrated Business and
Financial Planning alignment and value
with common KPIs, metrics, driver-based
analysis, and predictive capabilities
MANAGEMENT ENABLEMENT
► Addresses Management’s questions that
cannot be answered today
► Integrates data and information to
address key questions
► Improves speed and access (mobility) to
information
► Provides improved visualization,
exception analysis, and analytic
capabilities
Value is realized through the execution of plans, and decisions, or actions that impact enterprise performance
(e.g., pricing, product and customer strategies, channel optimization, cost reduction, production and inventory planning, etc.)
A strategic mindset focused on the user experience and cultural aspects is needed to truly realize sustainable value
The CFO’s greatest opportunity is performance/growth
KPMG and Forbes Insights:
The View from the Top: CEOs see a powerful future for the CFO.
Are CFOs ready for the challenge?
Where do you see the CFO’s greatest opportunity to contribute to or
impact the value of the organization?
58% Performance/Growth
12% Governance
10% Control
11% Efficiency/Value
9% Innovation
12%
10%
11%
9%
58%
Data and analytics will
increasingly drive strategy
and profits Applying financial data to achieve
profitable growth is the greatest
strategic value a CFO can bring
to an organization, say 85% of
the CEOs of top-performing
organizations.
“CFOs need to be
more well-rounded,
multidiscipline leaders
with a strong line of
thinking around
business growth and
shareholder returns.”
—Tiak Koon Loh
CEO of Pactera
Source: 2015 KPMG Global CEO Survey, “The View from the Top”
If CFOs want to become CEOs, they will have to strengthen their leadership
skills, broaden their focus—most importantly– overcome their lack of
experience outside of finance
Sample of Key Findings
CEOs have set a high bar for CFOs Sixty percent of the surveyed CEOs from high-performing
organizations believe that the CFO's role will increase in
significance over the next three years.
60%
IMPORTANCE
OF CFO ROLE
Technology will be a make-or-
break for CFOs Sixty-three percent of CEOs from high-performing
organizations believe that technology will have the greatest
effect on the future role of the CFO.
63%
EFFECT OF
TECHNOLOGY
CEOs value growth-oriented
initiatives Big-picture thinking and a strategic approach are the most
important attributes for a CFO, say 49 percent.
49%
FOCUS ON
GROWTH
CFOs need to approach the
regulatory burden as an opportunity CEOs named the regulatory environment as the external factor
that will most influence the future role of the CFO; 61% see
regulation as an opportunity to derive competitive advantage.
61%
REGULATION AS
OPPORTUNITY
Source: 2015 KPMG Global CEO Survey, “The View from the Top”
Key EPM Trends
1
4
2
5
3
EPM is a CEO-level issue
that impacts the entire
organization and can help
propel a company to a new
level, resulting in a
competitive advantage.
EPM is not simply a Finance
activity nor just a technology
initiative.
Clouds in the Forecast
serious for SaaS
Data & Analytics
get predictive
User Experience
age of the consumer
Changing Workforce
targeting talent/millennial impact
Collaboration
integrate and improve
Agility
& Speed
SaaS benefits focus on speed and agility
55%
59%
62%
62%
65%
67%
68%
“How important were the following benefits in your firm’s
decision to use SaaS?”
Cost
Source: Application Adoption Trends 2015: The SaaS Boom Continues As Businesses Demand Agility, Forrester Research, Inc., April 24, 2015
Improved business agility
Speed of implementation and deployment
Allows us to focus resources on more important projects
Quickly delivers functionality not available in a traditional
packaged software
Support business innovation with new capabilities
Lower overall costs
Ability to replace upfront capital spending with monthly
operating expense payments
Cloud-enabled Finance Transformation
ALIGNS BUSINESS FUNCTIONS
HIGHER CERTAINTY OF
OUTCOME
LOWER RISK
ACCELERATED IMPLEMENTATION
SERVICE DELIVERY OPTIONS
GOVERNANCE MODEL
DATA AND REPORTING
MODEL
PRE-CONFIGURED APPLICATION
ACCELERATED DELIVERY MODEL
FOCUS ON BUSINESS
VALUE
INTEGRATED SERVICES
FULLY INTEGRATED ON
THE CLOUD
INDUSTRY INSIGHT
WHAT ARE THE
BENEFITS?
HOW IS IT DIFFERENT?
WHAT IS IT? OPTIMIZED PROCESS
ROLE DEFINITIONS
LOWER COST
KPMG Powered Enterprise
Making Data Tangible – Energizing the user to take action
KPMG MOBILE PERFORMANCE TRACKING
IMPROVED VISUALIZATION WITH THE RIGHT
ACCESS…
Web and mobile
solutions for
customers and
internal employees
Understanding the
problem/opportunity
and translating it into
pixels on glass
Agile, yet disciplined,
methodology for
design, development,
and deployment
Supporting business
outcomes by driving
new behaviors via
digital systems
Realized through an IBP Center of Excellence (COE)
Collaboration is Critical
Integrated Business Planning (IBP) aligns strategic planning, finance, supply chain, sales,
marketing and product development into a unified planning operating model to make proactive
business tradeoff and improvement decisions.
By achieving three primary objectives:
Integrate strategic, finance, sales,
product and operations planning
activities.
INTEGRATE
PLANNING
ACTIVITIES
Increase shared understanding of
key business drivers.
Optimize business decisions for
improved financial and operational
performance.
UNDERSTAND
KEY BUSINESS
DRIVERS
IMPROVE
BUSINESS
DECISIONS
Strategy Finance Marketing Product Dev Sales Supply Chain
Millennials have a greater impact
$$$
25% of the buying
group population and
over 19% consumption
$1.1
Trillion
Student Loan Debt
78%
prefer to spend
on experiences over things
Delaying
household
formation
2 Million
more are living with their
parents (2007 versus 2013)
25% of the population
American
millennials >80M
percent of
workforce 2014
50%
36%
2020
By 2025, millennials will
account for 46% of the
buying group population and
over 41% consumption
(~$2.9 Trillion)
Sustainable EPM: Managing Talent in this “New” World
Nearly all CEOs say that nothing is more important than attracting and retaining top-notch
finance talent, but many also believe their CFOs lack effective people skills. Clearly, most CEOs
believe their CFOs can and should do a better job of managing talent.
CFOs are lacking on people skills
The survey revealed that 97% of CEOs say that talent management is the
most or equally important factor in improving the finance function, yet only
33% give their CFOs a passing grade in talent management.
97%
IMPORTANCE OF
TALENT MANAGEMENT
33%
GOOD JOB AT
TALENT
“The traditional career
path of starting in a
transactional role and
progressing through the
ranks no longer works.”
—Mark Spears Global Head of People & Change
and Global HR COE Leader
CHALLENGES:
• Attracting and developing talent in the new
millennial world
• Cultivating and retaining talent with the right
analytic and digital skills
• Improving business knowledge of the staff to
partner with operations
Source: 2015 KPMG Global CEO Survey, “The View from the Top”
ASSESS THE RESULTS
Analytics (descriptive and predictive) and root
cause analysis beyond standard financial
data, including marketing, sales, procurement,
and other functional areas
Use of data scientists to identify new
analysis techniques, mine data, and report
insights
REPORT THE BUSINESS
Dynamic cross-functional reporting
connecting financial results to operational
drivers
Delivered via smart and mobile devices
Graphical and interactive with self-service
capability
PLAN THE BUSINESS
Integrated business planning linking overall
business strategy, sales, operations, finance,
and resource allocation
Forward-looking forecasts beyond the
current fiscal year
Driver-based planning with correlation and
cause-effect analysis
Moving beyond Finance with integrated leading practices and
technologies addresses these needs
KPMG’s EPM FRAMEWORK
4
ARTICULATE THE STRATEGY
Analysis and insights as inputs into business
strategy development
A global set of connected, common and
cascading performance measures
Clearly defined linkage among strategy,
plan, forecast, and actuals across functions
ADDRESS THE GAPS
Sophisticated scenario analysis utilized to identify actions and plans to address gaps between the
plan versus actual that optimize enterprise performance
Corrective action modelling and adjusting strategies, plans, forecasts, and actions
3
2
5
1
Technology is rapidly changing the EPM landscape
New entrants/changes in technology platforms are rapidly lowering the total cost
of ownership.
Disruptive technologies are forcing a change in the philosophy around how EPM can
be enabled.
Technology capability (e.g. in-memory processing) is providing analytical capability not
seen before.
Companies are increasingly investing in technology as infrastructure becomes more robust and
cheaper.
Big data is providing organizations with the opportunity to understand its customers/ competitors
more rapidly and thus seek out competitive advantage or respond to the market rapidly.
Applications are becoming easier to configure/manage.
Cloud-enabled EPM services are providing structured upgrade paths around the
applications, which is helping to avoid costly point-in-time major upgrades. Oracle BI Foundation
Common Administration Services
Strategy
Management
Financial
Close and
Reporting
Planning
and
Forecasting
Profitability
Management
Oracle’s EPM Cloud with
proven Hyperion EPM
applications helps to enable
these needs
Oracle’s Vision EPM for Every Need
How Do We Get There?
EMPOWER EVERY FUNCTION WITH EPM
ENABLE ADOPTION AND VALUE WITH CLOUD
PROVIDE FLEXIBLE CHOICES: ON-PREMISES & CLOUD
Empower Every Function with EPM
Fact-Based Planning and Informed Decision Making
Every Function Needs EPM
SALES MARKETING HUMAN RESOURCES
OPERATIONS SERVICE
Revenue Planning Territory Planning Compensation Planning Sales Performance Reports
Promotions Planning Media Mix Planning Product Lifecycle Planning Marketing Briefs
Workforce Planning Payroll Planning Position-based Budgeting HR Briefing Books
Demand Planning Sales & Operations Planning Product Profitability Analysis Operations Review Reports
Call Center Planning Resource Planning Service Revenue Planning Service Performance Reports
Develop agile planning processes in every function and respond effectively to business change
Connect and align operational planning processes with financial planning
Create a culture of fact-based planning across the entire organization
New Planning Imperative Fact-based Planning, Aligned Across the Enterprise
Combine System-of-record Data with Rich Narrative Text to capture the full story
Tap into the wisdom across the entire organization through secure collaboration
Address the needs of Management Reporting and External Disclosures
New Reporting Imperative Narrative Reporting for Informed Decisions in Every Function
Targeted Innovations to Address Every Need
Enabling EPM for Every Function
Pervasive Access • Simple, Intuitive,
Interactive
• EPM on every device
Cross-functional Alignment • Agile, Configurable,
Extensible • Collaboration
Interactive Response • Instant calculations and
aggregation
• Speed-of-thought scenarios
Proven Scalability • Granular data and models
• 1000’s of users
Sales Planning Demonstration
Enable Adoption and Value with Cloud
Customers See the Benefits of Cloud
Source: Oracle 2015 Top Trends Research
Oracle Planning and Budgeting Cloud Service
Planning in the Cloud. Simple. Fast. Proven.
First-in-Class Functionality
Flexible Deployment
Fast Adoption
Easy Adoption. Rapid Value.
Best-in-class Planning: Any Industry. Any Size.
Built on over 15 years of Product Innovation
Launched: February 14, 2014
Clients across industries
Financial Services, Higher Ed, Consumer Goods, Retail, Services, High Tech, Public Sector
700+ Customers to date
50000+ End Users and growing!
Available and Supported Globally 24 X 7 X 365
Oracle Applications: Current Release and Roadmap Oracle EPM Cloud
Planning and Budgeting • Enhanced user experience: Enhanced
interactivity, Excel type grid capabilities, Built-in reports
• Operational planning related enhancements: Instant calculations & aggregations, Enhanced sandboxing, Excel like formulas, Valid combinations etc.
• REST web service for external integration • IP white/black listing
Enterprise Performance Reporting • PowerPoint Report Packages • Web Viewer enhancements and publishing
formats • Smart View Home Panel
Planning and Budgeting • Customizable navigation by roles, Write-back
enabled dashboards, Attributes as a separate dimension, Advanced member function support
• Web based FR Studio & new charting engine • Action framework using Groovy scripting
• New Cloud Service: Enterprise Planning and Budgeting Includes pre-built planning modules: • Workforce Planning, Capital Asset
Planning, Project Financial Planning, Financial Statement Planning: Revenue, Expense, Balance Sheet, Cash Flow
Enterprise Performance Reporting • Supplemental Doclets, Embedded Excel
support, Version Compare, Variables
New Cloud Service: Account Reconciliation
• Address the global reconciliation process with complete lifecycle support including: • Verifications, tracking of assignments,
managing preparation and review, minimizing risk and optimizing the process
New Cloud Service: Essbase • Essbase platform for custom analytic
applications
Planning and Budgeting • Driver based predictive planning, Long range
planning models & goal seek, Forecast simulation & optimization
Enterprise Performance Reporting • Enhanced collaboration & workflow, New
tools for management reporting
Account Reconciliation • Enhanced filtering, Saved views,
Conversations
New Cloud Service: Financial Consolidation and Close
• Core Management and Legal Entity consolidation functionality
• Standard intercompany eliminations, currency translations and FX adjustment calculations
• Out of the box calculations, hierarchies and reports for quick deployment
• Built-in task orchestration for close process management
• Flexible, robust user owned reporting
Essbase Cloud Service • Scenario Management and Sandboxing • Data source integration with DBaaS, Query
access from BICS and DVCS, API access for external applications
• Database design templates
Current Release October 2015
Current Release +1
Current Release +2
Planning and Budgeting • Certified REST integration for external
adapters • Enhanced integration with Oracle cloud
services: OSN, Documents, Big Data
Enterprise Performance Reporting • Regulatory Reporting framework: taxonomy
mgmt., tagging, validation, and filing • Enhanced dimensional analysis
Account Reconciliation • Transaction Matching
Financial Consolidation and Close • Statutory Reporting with complex
intercompany eliminations and ownership • Flexible user-defined calculations & currency • Custom intercompany matching report with
automatic journal adjustment
Essbase Cloud Service • Support for remote partitions
New Cloud Services • Profitability and Cost Management
Cloud Service • Tax Provision and Reporting Cloud
Service • Dimension Management Cloud
Service
Future Directions Post 12 month planning cycle
Enterprise Planning and Budgeting Best-in-class Functionality, Rapid Deployment Demonstration
On-Premises & Cloud: Your Choice
On-premises or Cloud: One Size Does Not Fit All
Business Unit 2 Detailed Planning
EPM On-Premise Applications
Corporate Forecasting
Corporate Expense Planning
Financial Consolidation
Business Unit 1 Financial Planning
Narrative Reporting Performance Briefs
Corporate FP&A Planning App
Divisional Planning app #1
Divisional Planning app #2
Corporate FP&A Planning App
Divisional Planning app #1
Divisional Planning app #1
Oracle Applications: Current Release and Roadmap EPM Applications: On-premise
Hyperion Planning • Spreadsheet like Interactivity with larger data sets • Member on the fly • Predictive planning enhancements
Hyperion Financial Management • HFM on Exalytics (Solaris and Linux) • Significant performance improvements • Simplified Deployment architecture • Optimized user interface
FDMEE • Data sync between EPM apps, Migration utility from FDM
FCM • Prebuilt reports for ARM and CM, Custom Report writer,
Supplemental data collection
Hyperion Tax Provision • Smart View-based Maintenance Wizard, Statutory Balance Sheet
Approach (IFRS), Current tax Payable Analysis, Country-by-Country template, Loss/Credit Automation
Data Relationship Management • PBCS integration, DRG enhancements, DRG mobile approvals
Profitability & Cost Management • New Ledger model type for expanded coverage of management
reporting, Parallel calculation improvements for performance • Operational Transfer Pricing solution
Release 11.1.2.4
Hyperion Planning • Enhanced user experience: User Interface enhancements, Valid
Combinations, Excel Type Grid capabilities • Sandboxing, Excel based grids with formula and formats, Write
back enabled dashboards, Integrated Real Time Reporting, Advanced member function support
Hyperion Financial Management • Insights and Rules Profiling, Web based metadata editor, Copy
Application Utility • Enhanced visualizations: Forms /Grids as charts • Smart View based Journal module
FDMEE • Hybrid deployments, Universal data adapter, DRM integration
FCM • Archiving , Updated rules configuration, Cloud migrations utility
Hyperion Tax Provision • Mergers & Acquisitions, Valuation Allowance Automation, FIN48
Set of Books, additional reports
Data Relationship Management • DRM Analytics: pre-built dashboards and reports • Integrations: Financials Cloud, EPBCS, FDMEE
Profitability & Cost Management • Built-in analytics, FCM integration, Performance enhancements
Financial Reporting • Web based FR Studio & new charting engine
What’s Next 0-12 month planning cycle
Hyperion Planning • Enhanced User Experience: Build from scratch dashboards,
Charts and conditional formats from Excel • Predict model drivers, Web based predictive planning, Forecast
Simulation and Optimization, Models built from user’s Excel templates
Hyperion Financial Management • Real time consolidations • Expanded impact analysis for Journals • Archiving of audit tables • Updated intercompany and journal reporting
FDMEE • Cloud to cloud integrations, Support for all new EPM cloud apps,
Loading text & security for cloud apps
FCM • Transaction matching
Hyperion Tax Provision • Upgrade automation enhancements, Apportionment calculation
Data Relationship Management • Integrations: FCCS, BICS • DRM Analytics: additional reports & dashboards
EPM Common Infrastructure • Adoption of FMW 12c, including platform certifications • EPM common repository simplification
Future Directions Post 12 month planning cycle
Hyperion Financial Management: Innovation Continues Demonstration
Cloud & On-premise: Provide Flexible Choices
Innovation and Investments across Cloud and On-premise
Allow customers to adopt EPM Cloud at their own pace
Provide consistency and portability to enable flexible deployment choices
Key EPM Sessions
Session ID Title When Location
CON9530 Oracle EPM in the Cloud: Strategy and Roadmap
Tues, 10/27 @ 5:15pm Moscone West -3018
CON9531 Oracle EPM On Premises and Cloud: Taking a Hybrid Approach
Wed, 10/28 @ 4:15pm Moscone West -3018
CON9529 New: Oracle Planning and Budgeting Cloud Service Enterprise Edition
Wed, 10/28 @ 11am Moscone West - 3018
CON7031 What’s New and What’s Coming: Financial Close in the Cloud
Wed, 10/28 @ 11am Moscone West - 3020
CON9513 What’s New & What’s Coming: Oracle Hyperion Financial Close Suite
Wed, 10/28 @ 12:15pm Moscone West - 3020
CON9525 Upgrading to Oracle Hyperion Enterprise Performance Management 11.1.2.4
Thurs, 10/29 @ 12:00pm Moscone West - 3018
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |