business performance management solution to drive business ... · business performance management...

Business Performance Management

Solutionto Drive

Business Excellence

John KopckeChief Technology Officer

Hyperion Solutions

April 2007

Copyright © 2006, Hyperion. All rights reserved. 2

Agenda

Hyperion & Oracle Update

Introduction to Business Performance Management

BPM Case Studies

The Hyperion System 9 Solution


Hyperion – Leaders in CPM and BI Platform Gartner Magic Quadrants

CPM BI Platform


What We Are Announcing

Oracle has agreed to acquire Hyperion— Cash tender offer of $52.00 per share— Approximately $3.3 billion in equity value— Transaction expected to close in April 2007, subject to

regulatory and other approvals

Accelerates Oracle’s product strategy— Business intelligence is a strategic focus for Oracle— Hyperion brings best-of-breed, heterogeneous

performance management products and complementary BI products

— Combination offers industry’s best and most complete product line

— Complements Oracle’s database, middleware, and applications


Leadership Product Strategy

Provides industry’s first end-to-end Enterprise Performance Management System

— Align operational intelligence with strategy: better insight— Align operational decisions with strategy: better decisions — From insight to action: better results

Built on integrated and modern foundation— Most complete and integrated BI tools and operational analytic

applications— Supports all styles of analysis and reporting— With a unified and consistent view of enterprise intelligence

Provides a fundamentally more complete solution— No other BI vendor offers as complete an Enterprise Performance

Management System— No other application vendor offers breadth of BI solutions

Leads category in technology and vision— For business intelligence and performance management

Driving the Evolution of Performance Management and BI


Expected Customer and Partner Benefits

Hyperion Customers— Oracle plans to protect, extend and evolve customers’ investments— Increased R&D investment in Hyperion products— Extends products with operational analytic applications and BI tools— Access to Oracle’s global support and services organizations

Oracle Customers— Best-of-breed Enterprise Performance Management System— Enhanced and complete suite of business intelligence tools— Complements Oracle database, middleware, applications— Access to Hyperion domain expertise in financial management

Oracle and Hyperion Partners— ISVs: broader opportunities to embed technology— SIs: strategic partner for best and most complete BI and performance

management applications and technology; Joint advisory to CFOs— VARs: expanded opportunities for value-added solutions

Continued Commitment to Heterogeneous Environments


Introduction to Business

Performance Management

In the last 30 Years:IT Moves from Business Enabler to Inhibitor!

Unreliable Plans and Forecasts

ComplexOrganizations

RegulatoryRequirementsReporting and

Controls OverheadPressure on Profitability

Earnings Expectations

FragmentedSystems

High Cost of Information Access


Overall, Finance aspires to simultaneously provide performance, growth and risk insight

Finance’s Top Areas of ImportancePercent of High Responses

Responses = 870Source: IBM Business Consulting Services, The Global CFO Study 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

PerformanceInsight

GrowthInsight

RiskInsight

69%

61%

61%

59%

57%


BI Investment Plans

Source: Gartner MCS

BI investment plans in next 12 months

45%

32%

37%

19%

29%

21%

38%

12%

2%

China, n=51

Corporate performance mgmt

Sales analytics

Customer/marketing analytics

Human resources analytics

Supply chain analytics

E-commerce analytics

Manufacturing analytics

Analytics across a combination of the areas

None of the above

Japan, n=50

61%

71%

45%

36%

22%

27%

30%

41%

13%

% of respondents0 20 40 60 80 100

53%

36%

23%

32%

29%

27%

29%

19%

2%

Australia, n=55

54%

42%

31%

31%

35%

22%

21%

18%

17%

Europe, n=171

Corporate performance mgmt

Sales analytics

Customer/marketing analytics

Human resources analytics

Supply chain analytics

E-commerce analytics

Manufacturing analytics

Analytics across a combination of the areas

None of the above

62%

42%

37%

36%

32%

30%

21%

24%

11%

North America, n=376


The Management System

Status Quo

Multiple points of failure

Inconsistent and inaccurate information

Excessive risk

Lack of process

Poor visibility and accountability

Unreliable

Emerging

Single system -Connective fabric that links critical steps

Standardizes processes

Infuses accountability

Pervasive visibility

Dependable, consistent & reliable information

Enlightened decision making = improved performance


From 360o Myopia

R&DMarketing Sales ManufacturingAccounting

360o Customer-Centric View

360o Product-Centric View

360o Supply-Chain View

360o Finance View


From 360o Myopia, To 360o Focus

R&DMarketing Sales ManufacturingAccounting

360o View of the BusinessProfitability

EfficiencyChallenges

Compliance

Opportunities

Productivity

Risk

Transparency


Technology Evolves

BPM—Managethe Business

Bus

ines

s C

limat

e C

hang

es

The Evolution to Business Performance Management

BI Silos—Understand the Past

ERP—Run the Business

ApplicationSilos—Automate Functions


Reporting

Analyzing Monitoring

GoalSetting

Reporting


Planning

Reporting


Modeling

Business Intelligence: End user access to and analysis of quantitative information sources

BPM leverages BI, and includes critical linkages to the enterprise planning and control cycles, which supports key management processes.

BecomesAnalytical Process

Management Processes

The Shift to Performance Management

Data Data

Query and Reporting

Tools

Statistical& Analytical

Tools

DashboardTools

Dictionary

DataMiningTools

Analytical Applications


Control and Discipline

Confidence in the Numbers

Performance Accountability

Transparency & Governance

BPM Evolutionary Progression


BPM Readiness Assessment

User solutions limited to inflexible reporting, data extracts, access databases and spreadsheetsSporadic and inconsistent use of BI toolsHaphazard budgeting processes, if any

IT driven initiatives—Limited or no LOB/user inputStandardization on single toolFocus on self-service and cost reduction

Fragmented and “stove-piped”solutions across enterpriseIT resources exist within LOBBudgeting and planning performed using disjointed spreadsheets

Business ownership of BPM initiatives with strong IT partnershipStandardization on right number of tools and technologiesEnterprise processes for budgeting and planning

“One Size Fits All”

BPM “Middle Ages” Users Rule

BPM “Utopia”

Business Maturity

IT M

atur

ity


The BPM Revolution:The Evolution of the Finance Function and BPM Adoption

Financial BPMby Financefor Finance

Financial BPMby Financefor Finance

Financial BPMby Finance

for Everyone

Financial BPMby Finance

for Everyone

Financial andOperational BPM

for Everyone

Financial andOperational BPM

for Everyone

Yesterday Today Tomorrow


Logistics

Finance

ITCIO Becomes CPeO

CFO Evolves into CPO

CFO role evolves into Chief Performance OfficerCIO role evolves into Chief Performance Enablement Officer

The CFO and CIO: Join Together to Achieve BPM Goals

Marketing Sales HR Manufacturing


The BI/BPM Competency Center: Organizing to Succeed

Take a strategic approach to insight and performance

Establish a BI/BPM Competency Center, chartered by the CxO

Become the “go to”group for BI and BPM

A variety of charters, organizational structures and funding models are possible


Next: Standardize and Consolidate

Reduce numbers of tools to a manageable few

Pick a BPM System offering good breadth and depth

Prevent new tool purchasing

Consolidate once, the right way

Leverage the Competency Center to pursue Information Democracy


BPM Case Studies


Business ProblemIncrease visibility into financial data housed in disparate systemsEnable budgeting and planning based on timely informationDefine enterprise data consistentlyEnhance planning process using more than just past data

SolutionConsolidate 450 gigabytes of financial data into a Teradata data warehouseDesigned, implemented and rolled-out Hyperion Planning to more than 2000 users leveraging Hyperion tight integration with TeradataTimely Dashboards and Reports delivered from Teradata Data Warehouse using Hyperion BI+

Industry — Insurance and Financial

Services

Overview — One of the largest

insurance and financial services companies in the world, with more than $148 billion in assets

Department— Finance—Project FOCUS

Products — Hyperion Planning— Hyperion BI+ Platform— Teradata Data

Warehouse

Nationwide Performs with Hyperion


BenefitsEstablished data governance, which created one consistent definition for all financial and statistical dataConsolidated financial data from more than 200 legacy systemsOperational Efficiency: Initial savings identified in 2006, increasing each year to a savings of $35 million in 2008 and thereafterStrategic Flexibility: FOCUS enables a nimble organization better able to restructure its capital and organizational structures; Positions company for better growthEnterprise Risk Management and Capital Allocation: Better able to manage complex risks and financial operations

Industry — Insurance and Financial

Services

Overview — One of the largest

insurance and financial services companies in the world, with more than $148 billion in assets

Department— Finance—Project FOCUS

Products — Hyperion Planning— Hyperion BI+ Platform— Teradata Data

Warehouse

Nationwide Performs with Hyperion


Booz Allen application

Business Problem— Gain visibility into firm’s business

metrics vs industry benchmarks in order to make more informed business decisions

Solution— Accurate, Consistent and Timely

system generated Management Reporting within 4 days of month-end close (vs. current 15 days)

Benefits— Almost real-time visibility into firm-

wide business metrics consolidated by market/industry/geography/client

— On-demand one-click access via web or MS office

Global Strategy & Consulting firm founded in 19142004 revenues: $3B+16,000 consultants6 continentsGrew 90%+ in last 5 years


HBOS Banks on Hyperion to Maximize Business Performance

NeedsDue to merger of the Bank of Scotland with Halifax bank, the company’s systems doubled in size and complexity almost overnight Data needs triggered by new IAS lawAbility to analyze and understand profitability of each division and initiative

Benefits A consistent view of analytical and financial information delivered to a variety of key stakeholders within the organization, including the CEOInformation now available earlier—empowering users to spot issues and produce financial reports more rapidlyNear real time reporting from transactional systems

Company— The UK’s largest

mortgage and savings provider and fourth largest bank

Implementation— 600+ stakeholders

monitor financial operations through cost center, balance sheet, P&L and statutory reports

— Profitability analyses of various activities, including remote ATM network


Toyota Relies on Hyperion for Consolidation, Supply Chain, Dashboards, and Planning

NeedsDashboards on every desktop for employees and dealers across U.S.Enhanced logistics of 1.7 mn vehicles annuallyShortened budgeting cycle for 18 countriesBetter tracking of dealer performance

Benefits Improved and faster analyses for strategic and operational decisions—days to minutesImproved vehicle delivery efficiencies on higher volume with small growth in staff$1 million in savings thru automatic reporting and reconciliation of payments to carriersIncreased scalability, failover management and user accessibility—lower costs and greater ROI

Company— 3rd largest vehicle

manufacturer in world

Application— Budgeting and planning,

dashboards, supply chain management, reporting and consolidation


Toyota Financial Services Improves Global Consolidation, Reporting & Analysis

NeedsStandardize financial consolidation and business analysis processes Ease of deployment and maintenanceStrengthen links between performance measures and rewards

BenefitsReduced analysis and reporting cycleRespond more quickly to customer needs, product demands, and economic conditionsHelp drive accountability through organization

Company— Global financial

services arm of Toyota, one of world’s leading automotive manufacturing companies

Implementation— Analysis and rapid

consolidation in 18 countries, with plans to expand to further 8


Xerox Partners with Hyperion in its Quest for Business Excellence

NeedsCreate a single system for all financial data, worldwideImprove transparency of financial data across the companyCultivate new efficiencies in the financial reporting, planning and analysis processesProvide executive-level insight into the business

BenefitsTransformed laborious monthly reporting into an automatic event available dailyStreamlined the quarterly close process

Company— $15.7 billion technology

and services company. Ranked 150 in Fortune 500.

Implementation— Key component of the

Xerox Enterprise FinanciInformation Warehouse with 2000+ users in 40 countries

al


Logitech Improves Business Performance and Meets Aggressive Reporting Goals with Hyperion

NeedsRevamp billings, bookings and backlog (3B)reporting system to provide on-demand access to key performance info to make better decisionsAutomate and centralize planning and reporting processes with consistent data Create in-depth financial reports and accelerate financial close, including foreign currency translations and adjustments

BenefitsImmediate, dynamic access to 3B information with executive and extended dashboard views, analytics, and Web-based reports Single, integrated, centralized planning processesReduced accounting close from fourteen to four days while foreign currency exposure application manages and minimizes foreign exchange risk

Company— Designs, manufactures

and markets personal peripherals for PCs and other platforms

Implementation— Up to the minute

information and analysis by operating executives and decision-makers


The Hyperion System 9 Solution


Infrastructure

Transactional Systems

Business PerformanceManagement

Basic hardware/software that enables computing and communications within the enterprise. Categories are:

Computers, operating systems & storageNetworks (WAN, LAN and telecom)Application and Web serversDatabase and e-mail Backup and recovery

Systems that service the transactions of the enterprise. These transactions drive the enterprise’s operations.Transactional systems fall into the following categories:

FinanceOrganizationProductsCustomer

Methodologies, metrics, processes, and systems used to monitor and manage the business performance of an enterprise.

Three Primary Software Categories


FRAGMENTEDDATA SOURCES

AD-HOC PROCESS

MULTIPLE ROLES

DISPARATE BI TOOLS AND REPORTING SYSTEMS

DIFFERENTMETRICS

HIRINGQUALITY

EBITDA

FIN

AN

CE

PLA

NN

ING

OPE

RA

TIO

NS

BRAND

?

?

SERVICELEVELS

COMPANYHEALTH

?

?

? GOAL

PLAN

ANALYZE

REPORT

MODEL

Multiple POINT

APPLICATIONS

MultipleLEGACY

APPLICATIONS

Multiple SUPPLY CHAIN

Multiple ERP

Multiple DATA

WAREHOUSES

The Barriers to a Broader View

CUSTOMERSERVICE

MARKETING

EXECUTIVE

FINANCE

HUMANRESOURCES


Planning

Financial Mgmt & Control

Analytics

FIN

AN

CE

PLA

NN

ING

OPE

RA

TIO

NS

GOAL

PLAN

ANALYZE

REPORT

MODEL

INTEGRATION TOALL RELEVANT DATA

SINGLE BPM SYSTEMMANAGE SPECIFIC METRICS

SINGLE PROCESS

ACCURATEMASTER DATA

Our BPM Vision: Breaking Down the Barriers and Pulling It All Together

MULTIPLE ROLES

CUSTOMERSERVICE

MARKETING

EXECUTIVE

FINANCE

HUMANRESOURCES

Multiple POINT

APPLICATIONS

MultipleLEGACY

APPLICATIONS

Multiple SUPPLY CHAIN

Multiple ERP

Hyperion SYSTEM 9

Query & Reporting

Hyperion SYSTEM 9

HIRING

EBITDA

BRAND

SLA

HEALTH


Hyperion System 9

Customer Services

Workspace

Applications+ BI+

Data Management Services

Foundation Services


Web-based workspace supports business user activitiesSystem 9 Workspace can be personalized based on rolesReduces need for IT user support and trainingSeamless connection with Microsoft Office

Hyperion System 9:Industry’s First Workspace

Increases User Productivity


Hyperion System 9: Applications+

Most Complete Applications Suite

Planning and modeling improves accuracy and predictability of plans and forecastsConsolidation accelerates close and reporting cycles while reducing compliance costs Scorecarding aligns strategy with goals for accountability


Hyperion System 9: BI+

Any type of management, financial or production reportingAny data source Interactive, multi-source, performance dashboardsExtensive financial and operational analysis

Broadest BI Offering


Hyperion System 9:Data Management Services

industrial strength data integration capabilities

ensures integrity and quality of financial information

synchronizes master data across all enterprise systems

Confidence in the Numbers


Hyperion System 9:Foundation Services

Service-oriented architecture (SOA)ScalableShared services for managing users from a single pointLife Cycle ManagementSupports SAP, IBM, Oracle, Microsoft platforms

Lower Total Cost of Ownership

Hyperion System 9 The Industry’s First BPM System

Customer Services

Workspace

Applications+ BI+

Data ManagementServices

Foundation Services

System 9 is Winning!

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