- oracle• it as an enabler …operational excellence performance ... status of strategic...
TRANSCRIPT
<Insert Picture Here>
Smart strategies for difficult times - Oracle roadmap
to management excellence
Oana Craciunescu
EPM Sales Leader – South Eastern Europe
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
• Expanding From Operational Excellence to Management Excellence
• EPM to Drive Management Excellence
• Oracle EPM System
Agenda
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
SMART
AGILE
ALIGNED
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Pressure
• Compliance
• Cost cutting
• IT as an enabler
…Operational
Excellence
Performance
• Governance
• Growth
• IT as a driver
…Management
Excellence
From Pressure to Performance
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Pillars to Achieving Management
Excellence
ALIGNEDALIGNED
SMART
AGILEAGILE
Rationalize Your Management Systems
Integrate Management Systems with Operational Systems
Share Insights Across the Extended Enterprise
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Today’s Reality:
Management Activities Are Siloed
SIX SIGMA
ANALYZE
PERFORMANCE
GOAL
SETTING
SCORECARDS FINANCIAL
REPORTING
FINANCIAL
MODELING
VARIANCE
ANALYSIS
ROLLING
FORECASTOPERATIONAL
PLANNING
MONITOR
RESULTS
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle’s Framework for Achieving
Management Excellence
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Align Stakeholder Interests
• Gain greater access to capital
• Build better supplier, partner and customer relationships
• Retain more engaged employees
• Improve environmental transparency
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Manage Market Opportunities
• Investigate market dynamics
• Match market potential with resources
• Size investments and divestments
• Benchmark performance against key competitors
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Analyze Scenarios
• Assess scenarios for alternative future outcomes
• Create strategies for addressing these alternative futures
• Model business combinations, partnerships, acquisitions
• Select optimal capital structure to support strategy
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Allocate Resources Effectively
• Translate strategy into operational plans
• Match financial goals with operational feasibility
• Align resources and activities across business functions
• Create driver-based rolling forecasts
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Operational Agility
• Monitor variances continuously
• Track root causes across lines of business
• Analyze detailed customer profitability
• Adjust forecasts and redeploy resources
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Integrate Reporting Processes
• Combine financial and operational information
• Deliver timely, actionable insights to all stakeholders
• Include economic, environmental and social impact
• Meet regulatory reporting requirements
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle’s EPM System Integrates Key
Management Processes
EXTERNAL REPORTING
PREDICTIVE MODELING
BUSINESS PLANNING
PROFITABILITY & COST MANAGEMENT
MONITORING, ANALYSIS
FINANCIAL REPORTING
BI REPORTING TOOLS & APPLICATIONS
OLAP
DATA QUALITY, DATA INTEGRATION & MASTER DATA
APPLICATION & METADATA MANAGEMENT
STRATEGIC & FINANCIAL MODELING
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Introducing
Oracle Enterprise Performance
Management System
Driving Management Excellence by
Delivering Predictable Results
Improving Transparency and Compliance
Increasing Business Alignment
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Market-leading Performance
Management Applications Suite
Master DataBusiness RulesMetrics/KPIs
Targets, Plans & Actuals
Strategic Planning
Set Strategic
Objectives
Corporate
Development
Treasury
Strategies
Long-Term
Planning
Cost and Profitability Management
Define Costing
Methods
Perform
Allocations
Report & AnalyzeDefine Cost
Drivers
Financial Close Process
Data
CleansingConsolidate
Internal
Reporting &
Analysis
External Reporting & Compliance
Cascade Targets
Allocate
Resources
ForecastingDetailed
Budgeting
Planning and Budgeting
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
EPM Workspace
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
Performance Management
Applications
Market-Leading Packaged ApplicationsFinancial and Operational
PERFORMANCE MANAGEMENT APPLICATIONS
Strategy
Management
Business
Planning
Profitability
Management
Financial
Reporting &
Compliance
BI Applications
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
<Insert Picture Here>
Deliver Predictable
Results:
Integrate Strategic,
Financial & Operational
Planning
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Planning and Budgeting Challenges
• 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
Dept A Dept B Dept C
Senior Management
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Strategic FinanceStrategic Financial Modeling in One
Environment
• Funding options
• Debt scheduler
• “What If” analysis toolkit
• “Deal Period” functionality
• Analyze trail feature
• Freestyle reporting
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion PlanningImproves Business Predictability
• Powerful workflow and process management
• Intuitive interface
• Robust data integration
• Leverages Essbase –powerful reporting and analysis
• Scalable web infrastructure
• One platform for all the planning needs
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Workforce PlanningHeadcount, Salary and Compensation Planning
• Packaged solution for quick implementations
• Plan salary and othercompensation at any level
• Add, edit and delete employees and new hires
• Pre-defined or custom calculations for taxes, etc.
• Integrates actuals from HR systems
• Test scenarios in real-time for impact analysis
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Capital Asset
Planning Assets and Depreciation Planning
• Packaged solution
• Customizable
• Plan for asset purchases and asset related expenses
• Transfer, retire, and improve assets
• Directly linked to main plan
• Interfaces with external systems
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Smart View™ for Office
Enables Enhanced Offline Planning
• MS Excel add-in allowing access on or off-line
• Develop budgets, plans and forecasts and calculate impact anywhere (on/off-line)
• Users download forms to Excel
• Manipulate data just like the full web client
• Synchronize to server when ready
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
What If You can Overcome a Major
Liquidity Crisis?
BEFORE
• Lost investment-grade credit rating
• Needed recapitalize balance sheet
• No cash flow modeling capability
• No simulations at the divisional or business unit level
AFTER
• Credit rating back to investment grade
• $4 Billion debt restructuring
• Simulate capital structure and cash flow
• 3% accuracy in net income projection
$22 Billion global provider of power and automation technologies
26
Budget Formulation & Execution Analysis at
the Nuclear Regulatory Commission
BEFORE
• Manual budget formulation system was labor-intense, requiring data re-keying and multiple spreadsheets and staff had lack of confidence in numbers.
• Difficult to forecast and reprogram and little visibility into variance analysis.
• Could not track or manage performance against the annual plan and quickly/effectively forecast resource constraints.
AFTER
• Automated system that minimizes time spent entering data and maximizes time spent analyzing the budget and making better forecasting.
• Achieved financial data integrity from the budgeting process (no more disparate spreadsheets w/multiple disconnected versions of the budget).
• Ability to perform what-if analysis and quickly respond to changing scenarios within the budget process.
The NRC is an independent regulatory agency whose primary
mission is to protect public health and safety, the common defense
and security, and the environment in the use of nuclear materials.
27
Planning Process ImprovementOracle’s Hyperion Planning
Needs
� Chart of account and business rules changed with SAP implementation
� User-friendly budgeting tool
� Support for large number of users
� Integration within EDF’s technical environment
Leading supplier of electricity and
energy
in Europe
After
� Unified, centralized, and secure platform
� Single solution across 4,000 users
� Easy to maintain and quick to adapt to changing market requirements
� Reduce & automate budget process
� Quick to implement – 2 months
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
<Insert Picture Here>
Improve Transparency
and Compliance:
Accelerate Reporting
Cycles and Reduce
Costs of Compliance
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Customer Pain Points
• Long period-end closing cycles
• Errors in financial data collection
• Financial restatements
• Inconsistent account structure
• Dozens of source systems
• Changing disclosure requirements
• Rising audit fees
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Financial
Management Accelerates Reporting Cycles and Reduces Costs of Compliance
• Patented financial consolidation and reporting features
• Complete audit trails, workflow and validations
• 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
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Single Platform for Financial Reporting
BEFORE
• Multiple financial reporting systems for management, statutory, legal etc.
• Long reporting and planning cycles
• Difficult deployment of new applications and software
• Manual intercompany reconciliations
• Slow delivery of financial information to line management
AFTER
• Centralized financial reporting system for all needs
• Streamlined financial reporting and planning
• Faster, easier software and applications deployments
• Automated intercompany reconciliations
• Easy, secure access to financial results globally
Global industrial company, deployed Hyperion Financial Management to unify financial reporting for US GAAP, IFRS, management and statutory requirements
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
<Insert Picture Here>
Increase Business Alignment:
Align Strategy with Execution,
Improve Resource Allocations
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Performance
Scorecard Aligns Strategy with Execution
• Translates strategies into objectives to establish ownership and accountability
• Communicate goals and objectives to align an entire organization
• Tailor scorecards by individual or teams to increase adoption
• Monitor key performance indicators to track execution
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Improving Communication and
Alignment
BEFORE
• 6 different analysis/reporting tools, 4-6 financial data warehouse solutions
• No common tool for budgeting and dependency on external consultants
• Information silos, no analysis across companies
• Many user interfaces to work with across many systems
AFTER
• Manage strategy and initiatives
• Agenda for the monthly management meeting is driven by status of strategic objectives
• Strategic objectives tie into measures and initiatives
• Cost-cutting through process, system, & information standardization
Norwegian telecommunications provider with over 8 billion Euros in revenue and 20,000 employees. Deployed Hyperion Performance Scorecard and complete suite of Hyperion EPM applications and tools.
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Calculating Customer Profitability
Net Revenuefrom Sale of Products and Services to Customer
Cost of Activities to Serve Customer:
AcquireServiceSupportDeliver
Net Profit Deliveredby SpecificCustomer
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Profitability and Cost
ManagementProvide Actionable 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
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
3
Oracle’s EPM System
EPM Workspace
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
BI ApplicationsPerformance Management
Applications
38Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 38
What is an Oracle BI Application?
Integrates Data for Analysis and Reporting
• Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, SAP and other sources into an integrated data warehouse optimized for analysis
Provides User-Friendly Analytic Model of Enterprise Information and Metrics
• Embedded best practice calculations, metrics, and KPIs
• Easy for business people to access, analyze, and use the information
Delivers Personalized Performance Dashboards for Everyone
• Thousands of pre-built dashboards, reports, and alerts by business function and
role
1
1
2
3
2 3
39
Oracle BI ApplicationsComplete, Pre-built, Best Practice Analytics
and Other Operational
& Analytic SourcesSource adapters:
Financials
General Ledger
AccountsReceivable
AccountsPayable
Cash Flow
Profitability
Expense
Management
Service &
Contact
Center
ServiceEffectiveness
Customer Satisfaction
ResolutionRates
Service RepEfficiency
Service Cost
Churn & Service Trends
Procurement
& Spend
Direct / Indirect Spend
Buyer Productivity
Off Contract Purchases
Supplier Performance
Purchase Cycle Time
Employee Expenses
Supply Chain
& Order
Management
Revenue andBacklog
Inventory
FulfillmentStatus
CustomerStatus
Order Cycle Time
BOM Analysis
Marketing
Campaign Effectiveness
CustomerInsight
Product Propensity
Loyalty &Attrition
Market Basket Analysis
Campaign ROI
Sales
PipelineAnalysis
ForecastAccuracy
Sales Team Effectiveness
Up-sell/ Cross-sell
Cycle Times
Lead Conversion
Human
Resources
Employee Productivity
Compensation
Compliance Reporting
WorkforceProfile
RetentionAnalysis
Return on Human Capital
Oracle BI Suite Enterprise Edition Plus
40
Spend Insight Across the EnterpriseProcurement and Spend Analytics
Before
� Difficulty communicating with Department of Energy HQ to provide accurate reporting.
� Manual processes to merge data proved costly and time-consuming.
� No consistent view of data across the organization to serve as the basis for decision making.
� Multiple data sources including Oracle EBS and proprietary custom built data sources made reporting difficult.
Los Alamos National Laboratory is a multidisciplinary research
institution engaged in strategic science on behalf of national
security.
After
� Senior leadership has ability to access near real-time analytics data without going through painful request process.
� Consistent view of analytics data across the organization serve as the standard for all decision-making.
� Continued user-adoption and elimination of manual processes, conflicting data, and frustration are long-term benefits.
Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
Integrating Key Management ProcessesOracle Enterprise Performance Management
System
EXTERNAL REPORTING
FINANCIAL MODELING
PREDICTIVE MODELING
INTEGRATED BUSINESS PLANNING
PROFITABILITY & COST MANAGEMENT
SCORECARDING
MONITORING, ANALYSIS & REPORTING
FINANCIAL REPORTING
BI REPORTING TOOLS & APPLICATIONS
OLAP
DATA QUALITY, DATA INTEGRATION & MASTER DATA
APPLICATION & METADATA MANAGEMENT