Is Your EPM

Implementation Falling

Behind? The Top 11 Signs

Jim Kubik

National Pre-Sales Architect

Jkubik@interRel.com

216.798-2236

Add me on LinkedIn!

Disclaimer

These slides represent the work and opinions of the

presenter and do not constitute official positions of Oracle

or any other organization.

This material has not been peer reviewed and is

presented here with the permission of the presenter.

This material should not be reproduced without the

written permission of interRel Consulting.

3

8

Strategic Assessment with interRel

Strategic Assessment Benefits

The Strategic Assessment is designed to analyze immediate and long

term EPM/BI needs including close solutions, planning and modeling

as well as reporting and analysis across the organization. We’ll

discuss and recommend how to deliver a solution that delivers both

management and operational excellence with smart, agile and aligned

solutions.

Dedicated team

Complete Assessment across your EPM / BI environment(s)

Evaluate current and future investments

Short, Mid, and long term roadmap / recommendations

Why you need to do these recommendations vs. How and What

Can be used to evaluate current projects or scope future RFPs

Cloud Strategy Roadmap

9

Glossary – Secret Decoder

9

• OAC = Oracle Analytics Cloud

• BI = Business Intelligence

• DVCS = Data Visualization Cloud Service

• DVD = Data Visualization Desktop

• EssCS = Essbase Cloud Service

• EPBCS = Enterprise Planning Cloud Service

• EPRCS = Enterprise Performance Reporting Cloud Service

• PCMCS = Profitability & Cost Management Cloud Service

• FCCS = Financial Close & Consolidation Cloud Service

• ARCS = Account Reconciliation Cloud Service

• FDMEE – Financial Data Quality Management Enterprise Edition

• Data Management = FDMEE “Lite”

10

Full BI and EPM Data Flow

EPM Reporting & Analysis

Operational

Data Integration

CRM

ERP / GL

Govern (DRM / EDMCS)

ETL

(FDMEE )

(Data Management)

(ODI)

(Other)

Close and

Consolidation

Planning and

Budgeting

Account

Reconciliation

Profitability

and Costing

Other

Unstructured / Data Lake

#1Reporting From the ERP

ERP Reporting is a Problem

Management reporting from ERP systems (EBS FSGs,

PeopleSoft nVision, etc.) is a pre- or non-EPM shop approach

Often considered necessary due to shortcomings in integration

from ERP to EPM

Actuals not loaded frequently enough and/or not quickly enough

Lack of confidence, understanding, or control of load & mapping process

Indicates the enterprise has not shifted thinking and fully bought in

to an EPM philosophy

Centralized reporting

Data federation

Standardized tools and processes

Shifting the “system of record” for financials to EPM

Red Flags in ERP Usage

Dependency on ERP reporting leads to other non-ideal practices

Loading stat accounts in the GL Instead, federate stats with financials in the reporting system

Loading budget & forecast back into GL Instead, import GL data early and often, report on variances in EPM

Insisting the GL must reflect the end-all be-all results Resistance to conducting downstream operations in better-suited tools

EPM is good at allocations, intercompanies, eliminations, top-sides, FX, metric & KPI calculation, statutory & regulatory reporting

Forcing all M&A into one GL Inability to operate multiple GLs in the company for any length of time

Continuing to pay for “sins of the past” in CoA structure & accounting practices Cannot map data into an idealized chart & dimension set to better represent the

business

#2

No Essbase or Not Many

Essbase Cubes

Enterprise-wide Use of Essbase

Leverage Essbase for all kinds of data sets

Build cubes like HR, operational, & customer data, run automated reports

Analyze past actuals to uncover drivers and rates, use for future planning

Calculate KPIs

Specialized cubes for focused, super-powered slice-and-dice

No need for “one cube to rule them all”

Essbase licensing allows as many cubes as you want!

Automate data feeds to get data sooner & more frequently

Add new Essbase cubes into visualization tools

Never stop finding new data sets for analysis

A-B-C: “Always Be Cubing”

Essbase: Not Just for Finance

Sales Sales Force Effectiveness Pipeline Analysis Flash Sales

Customers Customer Segmentation Customer ProfitabilityPromotion & Campaign

Effectiveness

Suppliers Vendor ScorecardsSupply and Demand

PlanningStrategic Sourcing Analysis

Human Resources

Compensation Analysis Time & Labor Analysis Benefits Offering Analysis

Finance Budgeting / Planning Cost Analysis Cash Flow Analysis

Operations Productivity Analysis Quality Analysis Labor and Cost Analysis

#3

No Analytics Strategy

How We Deliver Data

Interactive

Dashboards and Data

Visualization

Pixel

Perfect

Reporting

Mobile

Microsoft Office

integration

Essbase Houses Analytical Data for Dashboards

Essbase

Actuals, Forecast, Budget

KPIs, Metrics, Rates, Drivers

Dates & Mappable Text

Dimensions, Hierarchies

Relational Repositories(DW, Source Back Ends)

Transactional Detail

Highly Textual Data (Addresses, Free-form Text)

OBIEE Dashboards & DV

Source Systems(GL, AP, AR, HR, Sales, CRM, Timekeeping…)

Integration Between OBIEE & Essbase

Often, dashboarding is primarily grid-based, sourced from the DW

Not connected to Essbase

Data that goes to Essbase takes a different path than to / through DW

OBIEE should be connected to all Essbase reporting cubes

Financial & Operational

Self-service, timely, on-demand

Interactive visualizations

Graphical, summary, high-level, integrated data presented via

OBIEE

Data sets from multiple sources

Interactive charts & graphs

Drill through to more detailed graphics or granular detail

Data Flow thru the Enterprise

Data VisualizationBusiness IntelligenceOffice Integration, Pixel Perfect

reporting and Mobile

Curated Data

Top X dashboards to run the Company

Enterprise

CXO Level

Manager Level

Non - Curated Data

Ad-Hoc

Data Discovery

Next level after BI

Departmental

Dept Manager

Super Users

Analyst

Field People

Financial reports

Customer facing

Field reps

Bursting use cases

Mobile

Day by Day

Oracle Analytics Cloud (OAC)

Data Visualization Cloud (DVCS)

Standard (priced per OCPU)

Data Visualization Cloud Service (DVCS)

Data Visualization Desktop (50 licenses per

OCPU)

Oracle Smart View

Oracle Essbase

Enterprise (priced per OCPU)

All of Standard

Business Intelligence Cloud Service (BICS)

Oracle Essbase Enterprise

Day by Day

Universal CreditsEssbase

BI

Smart View

Day by Day

DVCS

DV Desktop

Oracle Analytics Cloud

Dashboarding and analytics

over the web and in Excel

Based on proven BI technology

relied on by millions of users

Integrated with Oracle

Database Cloud Service

Built-in mobile

Simple administration and data

integration

Start Here!

Data Visualization

Tableau Built today

Rich, interactive visuals over

the web and mobile

Self-service data discovery

Easy to upload data then

drag-and-drop

Mashup different data sources

Automatic visualizations

Connects directly to Essbase,

subject areas

Data Lake edition

Machine Learning

DV Demo on Top of an Essbase Cube

Smart View

Common Microsoft add-in for

Oracle EPM solutions (both on

premise and Cloud)

Perform analysis and create

highly formatted reports

Plan in Excel

Perform Consolidations

Maintain dimensions

Often used by power users and

analysts who like to work in the

Excel interface

Integrate Oracle EPM System

data to Word, PowerPoint, Excel,

and Outlook

Driving Innovation with BI Mobile

BI Mobile HDFor Mobile Consumption

Oracle Day by Day

Next generation of mobile analytics

designed to work with BICS

Search and reports generated entirely on

the mobile device

Search can be typed or voice-controlled

Can configure content based on a schedule

or location

Content can be generated based on who is

calling you (Android only)

Access can be fingerprint secured

31

OAC - Bringing it all together

.

#4

No Strategic, Long-Term or

Scenario Planning

Long-Range Planning

High-level, long term plans (5-25 years)

Typically has been done in limited Excel models

Difficult to model, combine, mix-n-match multiple scenarios

Limited slice-n-dice analysis

No system-wide rules enforcement (debt covenants, balance sheet

watchdogs)

Problems with lack of functionality, scalability, usability

Better management through Hyperion Strategic Finance

Very expensive

Now off the strategic roadmap

Functionality now implemented in EPBCS

Scenario Planning

More than “What-If”ing (tweaking levers within existing models)

Creating separate models that imagine possible futures M&A

Economic ups & downs

Currency fluctuation

Regulatory & tax changes

Geopolitical events

Commodity pricing

Disasters & unusual circumstances

Maintaining these as “ready to hand” models, pre-analyzed plans that can be turned to as actual events occur

Discovering the most advantageous scenarios and working toward making those happen

What is Hyperion Strategic Finance?

Integrates and consolidates

financial forecast models among

your corporate planning, business

development, treasury, and

investor relation groups

Merger and acquisition analysis

Strategic planning

Equity analysis

Deal underwriting

Portfolio analysis

Top down target setting

Contingency Planning

Strategy Screening

Covenant / Ratio

Analysis

Funding Alternatives

Rating Agencies

M&A Valuation Analysis

Major Capital

InvestmentsDivestitures

Best Practice Planning… Out-of-the-Box

Integrated Driver-based Planning for the IncomeStatement, Balance Sheet,& Cash Flow

Bridging the Gap Between Project Planning Systemsand the Financial PlanningProcess

Headcount & Compensation Planning to link Financial Plans with the Workforce

Planning for the Long-termimpact of Capital Assets onFinancial Plans

Financials

Oracle Proprietary - Restricted to PersonaOl rUasceleinCaonfOidreanctliealp–arIntnteerrntarlaining class.Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | 36

Projects

CapitalWorkforce

Strategic Modeling: Just Added to EPBCS

Strategic Modeling provides these key features:

Ability to create models on the fly

On the fly scenario Modeling

Consolidate across scenario models

Account forecast with out of the box forecast methods

Audit Trail to determine how values are calculated

Goal seek

Funding options

Out of the box model reports including income statement, balance sheet, and cash flow

Create custom reports using Excel

A built-in hierarchical chart of accounts to get you up and running quickly, along with the ability to add subaccounts for planning at a more detailed level

The ability to check the status of consolidations from the Job Console, and the ability to customize navigation flows

Access control to manage permissions for models

#5

Outdated Planning

Methodology

Elements of Design in a Modern Planning Application

Integrated Calculation

Separation of Purpose

(Planning for planning)

Data In From & Out To Reporting

Cube

Drivers, Allocations,

KPIs, Metrics in system

Smart View in Excel as viewer

Upper levels always up-to-date (Run on

Save)

Focused Aggs (BSO)

Instant Aggs (ASO & Hybrid)

Advanced Methods

Rolling Forecasts /

Beyond Budgeting Concepts

Predictive Planning

Interactive Environment

Customized user experience

Task Lists by User Type

Validation Rules

Right-click menus and inter-form navigation

Graphical Feedback

Composite / Master & Detail

Forms

Planning Methodology Red Flags

Manual forward trending of dollar amounts

Lack of driver-based calculations Headcount

Square footage

% of sales / net income

Planning things, events, rates, & ratios, letting the dollar values derive from them

Forecast window shrinks over time (e.g. always thru December) No rolling forecast, x periods ahead

Separate annual budgeting process Not snapshotting a rolling forecast as a

baseline (beyond budgeting)

No range-based calculations

Loading the entire chart of accounts into the planning system Combining actuals reporting &

budgeting in one application

Believing that equal detail is needed in both areas

Not generalizing the CoA for planning purposes

Not leveraging Planning features Purpose-driven form design

Right-click menus

Composite forms

Validation rules

Focused calc & aggs in rules

No computer-predicted projections Trends, seasonality, hidden

relationships

Things to Consider

Your business changes over time

A Planning application that doesn’t change with the business

cannot remain effective in helping run the business

New features and new versions get released

Some of these new features offer competitive advantages

Planning applications (dimensions, hierarchies, forms, menus)

should be modeled after how planners think about the business

Planning features can enable new ways to think about and model

the business

Planning applications need to undergo design review (at a

minimum, and possible re-engineering) every few years

#6

Complex Excel Models

Daily Questions outside of “Standard” Reporting

• We raise pricing by 10%

• We just created a new Brand

• What are current inventory levels of outdated products?

• We just changed our Gross Profit calculation to address a new

way it needs to be seen

• New acquisition was just announced but it’s not “official” and will

takes months to get integrated data in the DW

• I want to see my sales by products but need to exclude a new

product but still keep my original hierarchy

• How are we trending Actuals vs. Forecast?

*** Spreadsheets Fill the Gaps ***

Spreadsheets are terrible “DATABASES”

100’s or 1000’s

Time

Accuracy

Maintenance

Not Scalable

ROI/COST

Spreadsheet Chaos

ANALYZE

PERFORMANCEGOAL

SETTING

SCORECARDS FINANCIAL

REPORTING

VARIANCE

ANALYSIS

ROLLING

FORECAST

OPERATIONAL

PLANNING

MONITOR

RESULTS

$€£ ¥

Excel Model Red Flags

Bulk uploads of data into Essbase from one tab in Excel

Massive re-retrievals and validation tabs to make sure the numbers went up correctly

System is almost never up-to-date (fully updated each time someone enters a number and hits “Save”) Scheduled or manually kicked off bulk aggregations

Lack of visibility into consolidated enterprise numbers until the end

Rush to upload and aggregate at the end of the process

Can’t report the latest numbers until someone updates the model Don’t report on actuals until after close

No PDF versions or automated delivery of reports

Cannot audit and validate every formula on every tab in every workbook

#7

Upgrading Versions Without

Upgrading the Model

Other Things Get Upgraded

Year 2008/09 2010/11 2012/13 2014/15 2016/17

Software 9.3.1 11.1.1.3 11.1.2.1 11.1.2.3 11.1.2.4

HardwarePhysical Servers

Re-Install

Server Refresh

VMsNew VMs

ModelInitial

designSame Design

Same Design

Same Design

Same Design

We upgrade the software and hardware all the time, but not the

model. This must change.

Exa

mp

le

Dimensionality Red Flags

A key factor holding back reporting & analysis at many companies is the dimensional structure of the EPM applications

Bad initial design or changes within aging models lead to significantly problematic issues in dimensionality

Overleveraging of a dimension, attempting to address more than one dimensional concept

Representing the same dimensional concept in more than one dimension (e.g. South Region Sales account & South Region dept)

Confusing interplay of dimensions If you change one, you have to change the other

“It depends”

“This data might not be right. I’m not sure if I pulled from the right place”

Central reporting concepts must be extracted into Excel and re-combined manually

#8

Admins in a Department That

Doesn’t Understand EPM

Everyday ITOS maintenanceOS patchingVirtualizationDisaster recoveryNetwork & disksWeb serversSSL / httpsETLVPN

Three Tiers of Administration

Everyday Essbase

Requirements

Design / Build

Dimensions

Hierarchies

Formulas

Calc Scripts

Start / Stop services

Essbase Techy

Batch

Backup

Essbase patches

Cache settings

Outline optimization

JVM heap sizes

Migration / Lifecycle management

Depends?

Not every business has a “techno-functional” person on board

Some aspects of Essbase administration are too techy for business

users, too specialized for IT

*IF* there are techy Essbase admins available:

They should work for the business

They should be the primary interface with IT

Ideally, they should be part of an Analytic Center of Excellence

*Until* and *unless* they are:

These functions should be outsourced

A third party can do this work more efficiently and more cost-effectively

More up-to-date feature and leading practice knowledge

Org Structure

Essbase Admins /

CoE

Information

Technology

Project

Management &

Business Analysts

Finance &

Business Units

External /

ConsultantsCloud

#9

ETL in ODI, Informatica, or Some

Other Thing That Isn’t FDMEE

Integration Tools, Past & Present

Past Data Integration tools have come and gone HAL / Vignette (2000-2006) – nice tool but retired

Upstream Weblink / FDM (2000-2015) – re-engineered as FDMEE

DIM / Informatica (2006-2008) – short lived rebranding / licensing idea

Sunopsis / ODI (2007-????) – the heir-apparent until it wasn’t

FDMEE introduced with Oracle EPM version 11.1.2.3 Shipped alongside FDM for this version only

Replaced FDM in 11.1.2.4

“Lite” version of FDMEE embedded in Cloud EPM (PBCS / FCCS) as “Data Management” Some features are showing up in the Cloud first

BUT are actually showing up soon afterward on-prem in FDMEE

FDMEE is the Future (the Present, Actually)

Build all EPM-related data flows and integrations with FDMEE (Financial Data Quality Management, Enterprise Edition)

Business-oriented (vs. IT-oriented) technology

Online, shared tool to manage mappings and data validations

Streamlines data integration processes between source and target systems

Provides drill through capabilities

Integrates with both on-premises and Cloud software technologies

Strategic direction for Oracle

As a go-forward integration tool in the Oracle EPM world,

FDMEE is the only game in town

#10

End Users Hate Smart View

If Users Hate Smart View

Why is a critical question

There are reasons it can make sense With some hardware / software configurations

Can be unstable / crashes Excel / gets automatically disabled

More common issue with 64-bit & later versions of Office (2016)

There are more reasons it doesn’t make sense

Are users well versed in Ad-Hoc operations? Mouse-based zooming & pivot instead of keyboard operations and Excel manipulations

Double click (right & left) drag and drop (right & left)

Do they know how to work with Smart View options? All options settings and how they work

The right times to have options on or off

How to set and modify their default options

Switching sets of options to change between modes of interaction

Most dislike of Smart View comes down to training, missing the old add-in, or lingering memories of bad experience with older versions (which were bad)

Many Issues Are Not Smart View Issues

Alleged Issue Response

Retrievals are slow Database issue – optimize

Small timeout window Need to apply Windows registry

settings for network

Can’t retrieve enough rows Essbase / APS setting – increase

Trouble with large retrieves Process issue – why are you doing a

large retrieve?

Can’t find data in database Essbase design issue –

redimensionalize

Can’t highlight & retrieve an area

on the sheet

Yes you can – use multigrid

No patch for buggy version (older

EPM version)

It’s backward compatible – upgrade to

the latest version

#11

You Have No

Cloud Migration Strategy

Oracle BI & EPM Cloud Landscape

OLTP & ODSSystems

Data WarehousesData Marts

PackagedApplications

(Oracle, SAP, Others)Excel

XML/OfficeBusiness

Processes

OLAPSources

Exadata Unstructured & Semi-Structured

Tra

nsa

ctio

nal

Oracle Analytics Cloud

(OAC)Pla

tfo

rm

as a

Serv

ice

Detect& Alert

OfficeIntegration

SearchQuery &Analysis

Reporting &Publishing

InteractiveDashboards

Scorecards MobileEmbedded

Rep

ort

ing

& A

na

lysis

Soft

ware

as a

Serv

ice

Financial Consolidation & Close Cloud Service (FCCS)

Account ReconciliationCloud Service (ARCS)

Tax ReportingCloud Service (TRCS)

Profitability & Cost Management Cloud Service (PCMCS)

Planning BudgetingCloud Service (PBCS)

Enterprise Performance Reporting Cloud Service

(EPRCS)

Enterprise Planning Budgeting Cloud Service (EPBCS)

Financial Close Planning Standalone

Enterprise Data Management

EDMCS

61

Full BI and EPM Data Flow

EPM Reporting & Analysis

Operational

Data Integration

CRM

ERP / GL

Govern (DRM / EDMCS)

ETL

(FDMEE )

(Data Management)

(ODI)

(Other)

Close and

Consolidation

Planning and

Budgeting

Account

Reconciliation

Profitability

and Costing

Other

Unstructured / Data Lake

Four Approaches to the Cloud

0%

10%

20%

30%

40%

50%

60%

AggressiveMigration

CloudFirst

OpportunisticMigration

Stay On-Prem

2015 2016 2017

Aggressive Migration – moving all EPM to the Cloud ASAP

Cloud First – All new EPM development to be done in the Cloud

Opportunistic Migration –Looking for opportunities to move EPM into the Cloud at upgrade time

Stay On-Prem – no plan to put EPM applications on the Cloud

Key Priority: Cloud Migration

EPM CLOUD MIGRATION STRATEGY

Near-term adoption of

mature cloud products

Strategic migration of analytics &

visualization to cloud over time

EPM fully on the cloud at the end of3-5 years

Cloud Benefits

Ease of expansion New companies, geographies, products, or departments

Many new, innovative cloud-only features The only sure way to get access to new features is to be on the cloud

The Cloud versions have left the on-prem versions behind

Should be considered “the latest version”, on-prem is “the previous version”

Lower software fees with SaaS model Automatic, cost-free upgrades and patches

Subscription model with low minimum user counts

Reduced IT costs – both personnel and data center equipment

Simplified UI means reduction in training needs

Business can focus on analytics vs. end-user support

The Cloud vs. on-prem question is answered: The Cloud has already won!

Continuing

Education

Play it Forward Videos to expand on what you've learned

here

Product introductions

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Cutting Edge Cloud updates

Expert-level videos for BI gurus

Technical Reference in video form

To experience the education revolution first-

hand, join our community at epm.bi/videos#PlayItForward

Best Selling Hyperion Technical Book Series

• Build an Oracle Planning & Budgeting Cloud

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First Ever Oracle EPM Cloud Books Now Available!

• Build a report package

• Execute the reporting cycle from start to finish

• Sign off or reject the final product

• Assign security

• Migrate objects between environments

• Steps to set up your Oracle Analytics Cloud instance

• How to build Essbase Cloud cubes from start to finish

• Maintaining dimensions and loading data

• Creating calculations and calculating data

• Assigning security

Admin End User Advanced

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Is Your EPM Implementation

Falling Behind? The Top 11

Signs

Jim Kubik

National Pre-Sales Architect

Jkubik@interRel.com

216.798-2236