Business Performance Management
Solutionto Drive
Business Excellence
John KopckeChief Technology Officer
Hyperion Solutions
April 2007
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Agenda
Hyperion & Oracle Update
Introduction to Business Performance Management
BPM Case Studies
The Hyperion System 9 Solution
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Hyperion – Leaders in CPM and BI Platform Gartner Magic Quadrants
CPM BI Platform
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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
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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
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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
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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
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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%
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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
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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
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From 360o Myopia
R&DMarketing Sales ManufacturingAccounting
360o Customer-Centric View
360o Product-Centric View
360o Supply-Chain View
360o Finance View
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From 360o Myopia, To 360o Focus
R&DMarketing Sales ManufacturingAccounting
360o View of the BusinessProfitability
EfficiencyChallenges
Compliance
Opportunities
Productivity
Risk
Transparency
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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
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Reporting
Analyzing Monitoring
GoalSetting
Reporting
Analyzing Monitoring
Planning
Reporting
Analyzing Monitoring
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
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Control and Discipline
Confidence in the Numbers
Performance Accountability
Transparency & Governance
BPM Evolutionary Progression
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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
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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
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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
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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
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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
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BPM Case Studies
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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
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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
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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
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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
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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
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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
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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
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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
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The Hyperion System 9 Solution
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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
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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
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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
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Hyperion System 9
Customer Services
Workspace
Applications+ BI+
Data Management Services
Foundation Services
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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
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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
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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
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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
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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
A Global Success, but why?
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