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510A What You Really Should Know About Hyperion Financial Management Presented by: Michael Fuori, LINDIN Consulting Inc.

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Page 1: Know about hfm

510A What You Really Should Know About Hyperion Financial Management

Presented by:Michael Fuori,LINDIN Consulting Inc.

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Agenda

• Reality Check: Your Reporting and Analysis Process Today

• Look Beyond Your Day-to-Day• PLAN, PLAN, PLAN• Hyperion Financial Management Success

Formula– Features– Design Considerations– Realizing the True ROI

• Your Next Step• Q & A

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Reality Check: Your Reporting and Analysis Process Today• Still a disjointed, often manual process• Hyperion Enterprise - Consolidations, with

help from Excel– Forecasts and much of the budget process still done

manually in spreadsheet templates– Some companies still doing the intercompany, cash flow

and equity outside of their Hyperion Enterprise Applications

• Many running GL reports cut/pasted into Excel, others using Business Objects, Brio, VB or MicroSoft Access for their analysis

• Many still doing corporate reporting, “hard copy reports” out of Excel !!!

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Reality Check: Your Reporting and Analysis Process Today (Continued)

• Centralized Administration, but many suffer from maintaining distributed “copies” around the world. Others rely on a Citrix Solution to handle the access volume

• Maintenance becoming an increasing concern for the administrators

• Performance on large dynamic drill downs becoming an issue

• Sarbanes-Oxley Act of 2002 putting increased strain on need to expand existing applications. “Where do we expand?”

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Reality Check: Your Reporting and Analysis Process Today (Continued)

• Still not enough time for analysis• Increased pressures to cut days from the closing

cycle• The theory of the “Virtual Close” putting more strain

on the closing process• Manual processes can’t get much faster• Business hours communication (phone

calls/emails/faxes) across the organization wasting valuable time

• Cumbersome reporting solutions to get simple commentary leaves less available time for analysis

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Look Beyond Your Day-to-Day

• Hyperion Financial Management is NOT Hyperion Enterprise. Remember your Micro Control conversion.

• THIS IS NOT AN “UPGRADE” so don’t treat it like one.

• This is your chance to CHANGE THE PROCESS FOR THE BETTER, eliminating a substantial portion of the effort while offering a viable, efficient reporting and analysis mechanism.

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PLAN, PLAN, PLAN

• POV – POV – POV• The power of having 12 dimensions will

cause initial confusion to straight finance people if not trained well

• This brings some added complexity to things like the journal entry module and Excel retrieve reporting

• The “Value” dimension allows for very detailed currency translation detail and is now part of the POV

• Plan your design with these 12 dimensions in mind, especially while laying out your reports. (For ease-of-Use)

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The Hyperion Financial Management Formula for Success

PLAN + Powerful FEATURES + Design Considerations + Reporting Tools =

Less confusionLess timeShorter closesTransforms data into usable informationViable WEB delivery mechanisms

TRUE ROI

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Be Aware of the Many Features

• The 3-level subacct barrier has been finally been broken

• No longer have to live with only Entities and Accounts as the primary dimensions

• New architecture (Cube Theory)

• Unlimited number of levels

• Creates accountability throughout the organization. NO NEED for special “Final” categories

• Leverage Process Management, “First Pass” through “Submitted”, “Approved” and finally “Published”

• Automatic criteria-based e-mail capability

• Huge time savings, eliminating dozens of phone calls per user! E-mail addresses can be “hard-coded” or controlled via a lookup table

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Be Aware of the Many Features (Continued)

• Major advantage in reporting capabilities, but existing “canned” intercompany report(s) may not suite your company’s needs

• Intercompany a separate dimension!!

• Previously only able to build against COA, now any dimension is valid. 100’s of spreadsheets could be eliminated

• Ability to have more complex logic, “business rules”

• Adding textual notes to ANY data cell intersection

• Eliminates possible confusion over associated numbers

• Aid FP&A in commentary sensitive reporting capabilities

• New Hyperion Reports allows not only for column annotations, but also for data sensitive full textual descriptions and graphical reporting. 256 per obj!

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Be Aware of the Many Features (Continued)

• “Line-Item” detail feature allows each subsidiary to use a custom table. (i.e., debt instruments can now be tracked aiding the individual units while not affecting the “corporate” chart of accounts!)

• Ability to capture entity unique account information is needed at lower level of the organization but not required from a consolidated point of view

• Leverage a well planned outline with Hyperion Analyzer

• Executive ready, presentation quality dynamic style flows can be created and delivered over the WEB, eliminating hours of PowerPoint type modifications due to last minute changes in the numbers

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Be Aware of the Many Features (Continued)

• Data anywhere in the system can be viewed in any currency defined within the system, while still applying all the correct rules for translation, including rules for the EURO and CTA calculation

• Advanced currency translation

• No conditional suppression in Reports module

• Can highlight these exceptions. Can prevent numbers from appearing but not suppress the entire line; however, white numbers with white background would not display on report!

• Reports are distributed over the WEB, 150 concurrent users per Reports server

• Users cannot build reports over the Web. All other features are supported.

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Design Considerations

• Think “Out-of-the-Box”!• Do not design the outline yourself if no prior

Essbase type experience is present in the development team.

• GET ALL USERS’ INPUT UP-FRONT!!!– All requirements gathering is vital before the

design takes place. An efficient design should properly leverage the custom dimensions, and user-defined fields without overloading one particular dimension over another. Remember it’s not Hyperion Enterprise. Not everything needs to be squeezed into the Entities dimension.

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Design Considerations (Continued)

• Dimensions should be designed for “dynamic drill through”. Hence the accounts dimension P&L starts with “NET INCOME”,and then drills into more detail. This is the opposite of how a Hyperion Enterprise chart of accounts is built

• The “&” character is not a valid character, even in the description!

• The Label is shorter than Hyperion Essbase allows

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Design Considerations (Continued)

• Dimensions should flow properly. It should “make sense” as you “drill in”. The hierarchies are leveraged throughout Hyperion Financial Management as well as Hyperion Reports, Hyperion Analyzer and the Excel Retrieve “Pivot” feature.

• Try and stick to the “80/20” rule. The outline hierarchies should account for as much of the reporting and analysis functionality as possible. This will minimize the number of “hard-coded” and logic driven functions needed.

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Design Considerations (Continued)

• The “generations/levels” can be highly leveraged within the delivery tools to create dynamic reporting and analysis. List all level-4 items, or all items between level-2 and level-5. This helps minimize the report maintenance.

• When designing your reporting objects, try to reuse reporting objects in a similar manner as Row and Column sets were imported by Hyperion Reporting.– Not to be confusing, but, Hyperion Reports

(NEW) Hyperion Report Writer (OLD).

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Design Considerations (Continued)

• Leveraging the custom dimensions– One is usually designed to replace the sub-

account table feature of Hyperion Enterprise. Members of the Account dimension can have an attached starting member from one of the custom dimensions. Every account could have a different starting member from CD1 (Custom Dimension1).

– Entity or Data Type equivalent to the basic Hyperion Enterprise substructure is commonly a second custom dimension. (Input, Adj, GL, PriorPerAdj, GAAP, etc.)

– Equity Partner/Minority Interest Entity Names can be defined in a custom dimension to handle what was once very complex calculations.

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Design Considerations (Continued)

• User Defined Fields (UDFs)– Extra grouping functionality– Similar to CODES identifier in Hyperion

Enterprise– Three “CODES” instead of one

• Example:– Entities grouped by geographical area or

population• Informational• Not functional or summary

– Define a UDF instead of Custom dimension– One to three UDF per account

• 20 characters of information per UDF• Equivalent to Essbase’s Attribute dimension

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Design Considerations (Continued)

• “The right tool for the job!” you can…– Build budgeting and forecasting functionality into

Hyperion Financial Management– Calculate product line profitability– Create a pre-load file validation process with

Hyperion Application Link• “But…make sure the fit is right!”

– Planning a 3000 line item bottom up, involving “spreading” and “push downs” budgeting processes may be easier in Hyperion Planning

– Storing heavy product-line detail for 200,000 book titles may be better in Hyperion Essbase

– Pre-processing may be simpler for the GL to handle during its extract process

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Realizing the True ROI

• Savings with Hyperion Financial Management– Coty: millions per year– GE: elimination of nearly 1,200 spreadsheets

through the drill down capability of Hyperion Analyzer

• Elimination of the effort involved in MANUALLY creating slices of views for analysis

• Analysts can quickly identify potential cost over-runs possible expansion opportunities -time to spare

• Elimination of time off the close? Money well spent

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Realizing the True ROI (Continued)

• Clear plan• Outline required functionality• Take advantage of the features• Together they can:

– Centralize many processes– Simplify analysis– Help communicate the process

Hyperion Financial Management, Hyperion Analyzer, and Hyperion Reports together can save your organization tens if not hundreds of hours:

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Your Next Step

• Create a full Business Performance Management road map even if the first phase of your Hyperion Financial Management implementation is ONLY to duplicate your Hyperion Enterprise functionality

• Detail additional “Phases” to include advanced features and functionality so maximum benefit can be realized

• Allocate adequate resources for testing and training due to the extreme differences between Hyperion Financial Management and Hyperion Enterprise

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Questions & Answers?

Thank You for attending this morning’s very early session.

For more information concerning this presentation, contact me at:

[email protected]

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Please Complete Your Session Evaluation.

510AWhat You Really Should Know About Hyperion Financial Management

Presented by:Michael Fuori,LINDIN Consulting Inc.