successful strategy execution · why epm? roi world-class epm organizations deliver 2.4 timesthe...

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Oracle BI Applications • Yoram Zolantz• Principal Sales Consultant - Financial and EPM Solutions• Oracle Israel

Oracle BI Applications overview

Yoram ZolantzPrincipal Sales Consultant - Financial and EPM SolutionsOracle Israel

Successful Strategy ExecutionMoshe HorevVP and Country ManagerOracle Israel

1

“Strategy and operational decisions are quickly translated into action in my company.”

In your company?

A. Yes

B. No

*Source: Harvard Business Review June 2008

2

What Matters Most to Strategy Execution

Relative strength (out of 100)

54

50

26 25

0

10

20

30

40

50

60

Information Decision Process Motivators Structure

4AAAAAur*Source: Harvard Business Review June 2008

3

The 17 Fundamental Traits of Organizational Effectiveness(5 out of the top 8 relate to information)

• Important information about the competitive environment gets to headquarters quickly


4

LOB1 LOB2 LOB3


• Information flows freely across organizational boundaries


5


• Field and line employees have the information they need to understand the bottom-line impact of their day to day decisions


6


• Line managers have the access to the metrics they need to measure the key drivers to their business


7


• Conflicting messages are “rarely” sent to the market


8

How many of you are satisfied with the IT infrastructure you have to support this

9

The Current Environment

• Complexity

• Risk

• Uncertainty

10

Complexity is Rising

CFOs think reporting requirements have become more complex in the past two years and that complexity will rise again in the next two years.

past two years

22%

24%

25%

31%

42%

51%

56%

65%

Private equity investors

Banks

Institutional investors

Analysts

Regulators

Operational managers

Board of directors

Executive management

29%

31%

38%

55%

62%

69%

Banks

Analysts

Regulators

Board of directors

Operational managers

Executive management

next two years

11

And It’s Riskier

Environmental• Climate change

• Water, energy shortages

• Natural disasters

Societal• Pandemics

• Food, product liabilities

• Infectious diseases

Geopolitical• Terrorism, War

• Crime, Corruption

• Breakdown in information

infrastructure

Economic• Oil shock

• Fall in US Dollar

• China hard landing

12

And It’s Riskier…

FACT: Between 2004-2007, 62% of global companies experienced risk events*

•87% of those risks were non-financial

•Almost half were not prepared

•Only half manage risk formally

*Source: IBM Global CFO Study 2008

13

What’s Important to the CFO? Everything.

Source: IBM Global Business Services, The Global CFO Study 2008

Monitoring Business Performance

Continuous Process Improvement

Meeting Statutory Requirements

Driving Integration of Information

Developing People

Aligning Finance with the Business

Cost Reduction

Compliance Programs and Strengthening Internal Controls

Identifying and Executing Growth Strategies

Mitigating Enterprise Risk

CFO agenda

Importance

Effectiveness

40%

65%

51%

55%

37%

42%

80%

60%

71%

72%

73%

75%

75%

74%

76%

84%

30%

45%62%

66%

14

Focus on the Future

0% 10% 20% 30% 40% 50% 60% 70%

Past and present risks

Corporate socialresponsibility performance

Competitor insight,including benchmarking

Forward-looking analysis ofcompany and sector

What they intend to do

Their today performance

Future risks

Balance between financialand non-financial KPI’s

Tailored information for different stakeholders

Narrative reporting

15

Based on Michael E. Porter’s Value Chain

Inbound Logistics

OperationsMarketing &

SalesService

Outbound Logistics

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Operational Processes Are Well DefinedThat’s Why Customers Implemented ERP/CRM/…

16

Management Activities Are Siloed resulting in Fragmentation

SIX SIGMA

ANALYZE PERFORMANCE

GOAL SETTING

SCORECARDS FINANCIAL REPORTING

FINANCIAL MODELING

VARIANCE ANALYSIS

ROLLING FORECAST

OPERATIONAL PLANNING

MONITOR RESULTS

17

Results of Management Process Silos

• Lack of Alignment

• Can’t Align Corporate Goals with Plans and Execution

• Low Predictability

• Not Able to Improve Accuracy in Forecasts and Plans

• Inconsistency

• Unable to Base Decisions on the Right Information

18

Management Excellence Provides Competitive Advantage

All organizations have access to the same data. The difference is in insight: deeper and faster than the competition.

SMART

Rationalize

AGILE

INTEGRATE

ALIGNED

SHARE

Insight needs to be actionable. Even more important than being fast, is being agile: implementing changes throughout the organization.

To optimize results alignment across the value chain is needed. Organizations must leverage the contributions of all stakeholders, while fulfilling their requirements.

19

The Solution…EPM

• EPM = Enterprise Performance Management

• EPM Management Excellence

20

Oracle’s EPM Vision: Extend Operational Excellence to Management Excellence

Time

CompetitiveAdvantage

OPERATIONAL EXCELLENCE

MANAGEMENT EXCELLENCE

2121

Imagine…

…what if all of your plans were in sync with all of the other plans in your company?

Manufact.Plan

FinancialPlan

StrategicPlan

WorkforcePlan

MarketingPlan

CampaignPlan

ProductSalesPlan

CapitalExpense

Plan

22

Why EPM? ROI

World-class EPM organizations

deliver 2.4 times the equity market

returns of industry-peer companies

1.0

2.40

Peer Group World-Class

Source: CFO Challenges and Opportunities in the Flat World, Hackett Group, November 2007

23

How You Want Your Close to Look

Data

Cleansing

& Transfer

Consolidate/Tax

Internal

Reporting

& Analysis

External

Reporting

& ComplianceEden Corp

All in one system to give you the confidence you need when you close!

24

First to Report on the Dow Jones Hyperion Financial Management

• 12+ days to close

• Many analytical technologies

• Complex reporting and forecasting

processes

• Hours to create reports

Before

• 5 days to close

• Global consolidation across 58

lines of business

• Global forecasting and reporting

solution for 1,000+ users

• Minutes to access information

After

The world’s leading producer of primary aluminum with $23.5 billion in revenues with operations in 43 countries and 350 locations. Alcoa has over 131,000 employees.

25

Value delivered

• 6 days to close

• Reduced year-end reporting by 25%

• $1 million annual savings (67% ROI)

• 1 reporting chart of accounts

• More productive finance staff

Business challenge

• 20 days to close

• Lengthy year-end reporting

• Costly financial reporting process

• 78 charts of accounts

• Widely varying reporting definitions and procedures

• Global publisher of textbooks for the education,

• Business information,

• And Consumer publishing markets.

Deployment of HFM Pays for Itself in 18 Months Saves $1 Million Annually

26

Excellence in Sustainability ReportingHyperion Financial Management

Environmental, Safety and Social Metrics

27

Oracle’s Hyperion Financial Management (HFM)

Financial Consolidation, Reporting and

Analysis

BENEFITS

• Confidence in the Numbers

• Reduce Cycle Time

• Automate Collection & Validation

• Lower Cost of Compliance

• Speed and Agility

28

Reduce Planning from Weeks to Days

• Distributed Excel planning

• Two weeks P&L reporting

• Quarterly forecast

• Hampered corporate alignment

• Management had to wait for reports

BEFORE

• Centralized planning system

• Two days P&L reporting

• Rolling forecast

• In sync with corporate goals

• Management has instant online access

AFTER

Heineken Asia Pacific, a division of one of the world’s leading international brewers, implemented Hyperion Planning in only 40 days on top of SAP

30

Oracle’s Hyperion Planning

BENEFITS

• Speed

• Accuracy

• Align finance and operations

• Accountability

• Visibility to past, current and future business performance

Planning & Budgeting

Applications

31

32

EPM Vision

• Link strategic goals to operational decisions

• Transform financial management processes

• Monitor execution in real-time

• Deliver consistent, reliable insights to drive action

• Lower costs and reduce system complexity

• Single version of the truth

InsightPerformance

Action

SetGoals

Plan

Monitor

Analyze

Report

Align

32

Some of our Customers in Israel…

33

INFORMATIONPOWERS PROFITABILITY

34

successful strategy execution · why epm? roi world-class epm organizations deliver 2.4 timesthe...

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