Date post: | 25-Jan-2017 |
Category: |
Data & Analytics |
Upload: | edgewater-ranzal |
View: | 125 times |
Download: | 16 times |
Edgewater Ranzal Lunch and LearnMastercard Drives Financial Performance
Using Oracle HPCM
Jonah Rufus William, Business Leader Financial Systems, Mastercard Mike Killeen, Oracle Ace, Sr. Vice President, Edgewater Ranzal
Tues Sep 20, 2016
About Ranzal
Edgewater Ranzal is a full-service Oracle Platinum Consulting Partner with premier services in North
America and a regional office in the United Kingdom.
1,000+ Oracle/Hyperion epm, bi, big data customers
2,000+ Oracle/Hyperionepm, bi, big data projects
PBCS
EPBCS
FCCS
ARCS
BICS BD Cloud
PCMCS
EPRCS
Planning
Suite
Fin Close
Suite
BI Suite
Cloud (SaaS/PaaS) On Premise
Big Data
HPCM
DRM
FDMEE
Governance
Engineered
Systems
FCM
Integration
3
• 17 Years in EPM & BI Space• Consulting• Managing Financials Systems
• Industry Experience• Technology• Retail• Finance• Education• Govt.
• Implemented EPM/BI at • Mastercard• DoE Mass• SGI• Staples• AAFES• Activision• Hindustan Lever etc.
• Worked at:• IBM Cognos as EPM Architect• Oracle Partner as Sr. Principal Consultant• Mastercard since 2006
Education
Engineer – Electrical & Electronics
MBA – Systems and Marketing
Strategize, Implement and Sustain Hyperion and BI Platforms
Business Leader | GBSC Systems
Presenter Bio
© 2016 Mastercard. Proprietary and Confidential
About the Speaker – Mike Killeen
4
Senior Vice President of Technology & Strategy� Planning & Analytics Practice Lead for 5 Years� Helped Establish Ranzal’s UK Division� Responsible for driving growth through strategic initiatives – currently focused on HPCM, DRM & BI� Works from Ranzal’s Corporate HQ in White Plains, NY
Oracle Certified Professional� Essbase, Planning & HFM� Oracle ACE – Business Intelligence
19+ Years of Functional & Technical Experience In:� Budgeting, Forecasting & Planning� Cost Allocation & Profitability Management Solutions� Business Intelligence� Master Data Management & Data Integration� Solution Architecture & Design� Process Rationalization & Transformation
Client Engagement Portfolio Includes Various Industries:� Financial Services & Insurance� Consumer Products and Retail� Professional Services� Telecommunications� Higher Education� Health Care
Works Closely with Oracle Product Management on Enhancements & Direction
Oracle HPCM Customer StoryOracle HPCM Customer StoryOracle HPCM Customer StoryOracle HPCM Customer Story
Fully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard Worldwide
September, 2016
Jonah Rufus William
Business Leader – GBSC Systems
1. Hyperion @ Mastercard
2. Business Background & Challenges
3. Solution Overview
4. Business Benefits & Lessons Learned
5. Future Plans
6
Mastercard Customer Story Agenda
© 2016 Mastercard. Proprietary and Confidential
7
Keep things simple and stretch the boundaries, go beyond the general use of Hyperion / BI.
Mgmt. Reporting
Entity Mapping
Work Force
Product P&L
2011 2012 2013 2014
Local Currency
Driver
Local Currency
ExposureFX
FTE
SPA - II
Implementation Stabilization Expansion
Budget Breakout
PerformanceTuning
2015
Commitment
Lights Out Automation
StratPlan
Customer P&L
2010
Payroll
Renovation
2016
D&A
Revenue Attribute
Local Actual
M&A
Cash Flow
Hyperion Upgrade
Allocated P&L
Expense Mgmt. BI
Rev. Rec.
Application Automation / Enhancement / Project BI
Stabilization | Expansion
Fin - BI
Revenue
Expense
A&M Op Plan - BI
Cur. Neutral
Hyperion @ Mastercard
© 2016 Mastercard. Proprietary and Confidential
Hyp
eri
on
Sta
ts
20 • Hyperion Applications
30 %40 %
• 2015 Growth In Foot Print• 2014 Growth in Foot Print
14• Process Supported Globally
across 12 business units
600 • World Wide Users
1 Monthly Close
2 Strategic Planning
Annual Budget3
Quarterly Forecast4
8 Workforce Planning
9 Monthly Customer P&L (COS)
Quarterly Product P&L (PPL)10
Local Currency Exposure11
Monthly Payroll Process5 Commitment Collection Process12
M&A Reporting6 Managerial P & L13
Cash Flow7 BI Updates14
8
1. Fully Loaded Country P&L
2. Transparent Rules
3. Sound and Simple Methodology
4. Faster System
5. Fit within Hyperion Framework
Mastercard Challenge
© 2016 Mastercard. Proprietary and Confidential
9
1. Prototype in MS Access & Excel
2. Obtain buy in from impacted business owners
3. Assess solution fit with in Oracle Platform
4. Develop Functional Pilot in Requirements & Design
5. Implement & Rollout
6. Build Future Roadmap
Mastercard Strategy
© 2016 Mastercard. Proprietary and Confidential
10
Guiding Principle: Tiered approach to attribute Revenue & Margin between Direct/Dedicated and Indirect/Overhead.
1. Drivers – Revenue Based or Metrics Based
2. Actual from Oracle General Ledger
3. M1: Revenues & Directly associated expenses no allocation
4. M2: Dedicated expense mapped to country
5. M3: Support expense allocated to country
6. M4: Overhead expenses allocated to country
7. Actual from Oracle GL gets allocated using the guiding principle
8. Simple rule to produce Tiered P&Ls applied after allocation
9. Validation reports are run to ensure data accuracy
10.Results published via Prebuilt FR or SmartView
Mastercard Solution Overview
© 2016 Mastercard. Proprietary and Confidential
11
Margin 1
Margin 2
Margin 3
Margin 4
VarianceExplanation
Fully Allocated P&L
© 2016 Mastercard. Proprietary and Confidential
12
1. HPCM allocates Costs & Revenue Pools through one or more stages in a top down capacity
2. Stage – Step in the allocation process that has similar pool characteristics
3. Separate stages enable traceability.
Cost CtrAccount* Data Type
GeoDivision*
GeoDivision*
Geo*Division
Stage 1 – Financial Detail
Stage 2 – Fin. Pool
Stage 4 – Tier 2
Stage 3 – Tier 1
Cost Pool
Tier 1 (Div) Allocs or Pass Thru (Direct)
Tier 2 (Geo) Allocs or Pass Thru (Direct)
Sum Account/CC to Cost Pool (Direct)
AccountCost Ctr Data Type GeoDivision GeoDivisionCost Pool
1-3-4 Genealogy Allocation Results
1-3-4 Genealogy
HPCM Model Architecture – Stage Design
© 2016 Mastercard. Proprietary and Confidential
13
1. Planning App to stage, validate inputs and consume
2. Relational model to contract and expand data grain
3. Front end to assign rules
4. Prebuilt Tiered report
5. Trace Screens
Mastercard Solution Highlights
© 2016 Mastercard. Proprietary and Confidential
14
1. Trace Screens work at allocation grain
2. Need a reporting solution to make end user consumption easy
3. HPCM is a maturing product
4. Success or Failure depends on the partner’s experience – project completed on time and on budget
Mastercard Lessons Learned
© 2016 Mastercard. Proprietary and Confidential
15
1. Explore use of Management Ledger• Movement of historical management restatements from the general ledger
• Would require upgrade to 11.1.2.4
2. Product & Customer Profitability migration to HPCM
3. Delivery of Dashboards to Business Users using OBIEE
Mastercard HPCM Future Plans
© 2016 Mastercard. Proprietary and Confidential
Edgewater Ranzal Lunch and Learn
An Overview of Oracle HPCM
Mike Killeen, Oracle Ace, Sr. Vice President, Edgewater Ranzal
Tues Sep 20, 2016
HPCM Overview Agenda
17
Challenges in Profitability Management Delivery
Profitability and Cost Management Solution
Overview
Deep Dive into Oracle Hyperion Profitability & Cost
Management (HPCM)
Preview of Oracle HPCM Cloud (PCMCS)
Closing & Q&A
Recap: Profitability Management Goal – Delivery of Strategic P&Ls
19
Financialtransactions
FinancialData
Consolidation
(GL or HFM)
AccumulatorBottom-line
Results
Organizational P&L
Challenge #1 - Statutory Reports are not Timely or Detailed Enough
19
What defines a profitable customer?
What is the profit contribution of a product or a service?
What does it cost to sell to or to service customers?
What proportion of resources does a specific customer consume?
Why hasn’t increased revenue resulted in increased profitability?
No Standard Process
Standard,
accepted process
� Indirect Costs are tracked against supply side structures, not demand side needs. This makes measurement difficult
Challenge #2 - Indirect Cost Assignment to Products, Services &
Customers
20
Challenge #3 - Consistent Performance as Volume & Use Increase
21
Sales/ Product
Managers
Cost Center Managers
LOB Execs
Finance10’s
100’s
1000’s
1000’s
LOB/Functions
Segments/Entities
Departments
Products & Customers
User Counts
Data Volumes
FrequencyOf Use
100’s
1000’s
10K’s
1 MM’s
Qtrs
Monthly
Weekly
Daily
Reliability
Visibly defense profitability &
cost results through
transparency & audit/control
Agility
Timely reflection of results to
be actionable
Relevance
An ability to Allocate
resources to the most
important opportunitiesFinancial Results
Revenue & Cost Models
Operational Results
FP&A
Senior Management
Expectations of a Profitability Management Solution
22
Overview
23
Oracle Business AnalyticsProfitability Management Solution
Hyperion Profitability & Cost Management (HPCM)
24
Packaged Profitability functionality
Business User-Driven application
Tightly integrated with the full Hyperion EPM Suite
Why HPCM? To Meet these Key Requirements…
25
Flexibility Audit & Accuracy Speed Transparency
Organizations need information management solutions to address the challenges. These needs can be abbreviated as F-A-S-T!
Provide key stakeholders confidence in the numbers
produced and methodologies employed to ensure
compliance.
Ensure data is timely enough to be actionable
Ensure system provides
“speed of thought” response in reporting and
analysis to support Ad-Hoc questions
Allow managers
to understand cost to serve
and client profitability
Understand why some clients are profitable and others are not,
and what can be done to change business behavior
Analyze different contractual approaches to yield optimal mix of services versus costs incurred by the client.
Provide What-If Capabilities to assess impact of key business decisions on bottom line
Solution Architecture with HPCM
26
Ad Hoc Published Reports
HPCM Data Mart
Hierarchies, Attributes &
Maps
Web
Office
Manual Data
Input
Pre & Post-Allocations Data Processing
Attributions & Adj
ETL/FDMEE
GL or HFM
OperationalSystem
.txt file
.csv file
Calculations
Validations
Centralized Reporting
Supply Plan
DemandPlan
OBIEE Reports
DRM
Information Management: Pools & Drivers
InformationGeneration
Information Delivery
Information Management:Master Data
Multiple HPCM Use Cases
27
Group Services (e.g. Property, Controllership, IT)
Product Profitability
Customer Profitability
Group Overhead (e.g. CEO)
Division 3
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Group HQ
Operational
Profitability
"BI"
Shd Svcs
Expense
Allocations
Inter Unit Charges (e.g. Xfer Pricing, Contractual Charges)
Division Services
Fully Alloc
P&L
"Thin
Ledger"
Inter Unit
“Regulatory”Division 2
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Division Services
Division 1
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Division Services
Financial Close Use Cases� Improve Efficiency via Automation of Reports & Data
� Improve Effectiveness by enabling Transparency into drivers, pools & allocations
� Reduce Risk by eliminating manual spreadsheets and incorporating Stronger Controls through an integrated, standardized system.
Profitability Analysis Use Cases� Ensure Reliability of results through meaningful, Accurate methodologies
which generate Strategic P&Ls that tie back to published financial results.
� Improve Agility in key decision making process through Timely distribution of the stakeholders that need it.
� Improve the Relevance of published results by allowing organizations to Assess and Allocate resources to the most important opportunities
28
HPCM Business Benefits
29
HPCM Deep Dive
HPCM Has Multiple Model Types to Solve Different Allocation
Problems
30
Version 11.1.1.1 Version 11.1.2.0 Version 11.1.2.4
Management Ledger
Fully Allocated P&L
Standard Cost Rate
Development via ABC
Customer
Profitability
HFM/GL
Actuals
Planning
Bgt/FcstBI
Reporting
HPCM Management Ledger
31
ASO
EPMAHPCMHPCM repository
OR
ASOMetadata Cube
Calculation and Reporting
Meta
Data File
OR
Management Ledger- Metadata
32
System Dimensions POV Dimensions Business Dimensions
Management Ledger- Manage Rules
33
Management Ledger- Manage Rules
34
- Set-up sequence of
rule within a rule set- Select the option of
executing : - Serial
- Parallel- Iterative with
number of required iterations
12
3 .
45
User Interface and rule driven –no black box implementation with staging areas
Validationperformed at rule level Custom
MDX scripts
Traceability
available in various
formats
Iterative
rules for reciprocal
allocations
Management Ledger- Features
35
Unlimited Dimensions : Stage-less design allows 4 POV dimensions and unlimited business and attribute dimensions
Source side rules, iterative rule support for reciprocal allocations, flexible driver references, custom calculations, and easy clear / recalculation
Rule execution in parallel, serial, or iterations as needed, set by user
Balancing by rule with allocations sent and received as well as adjustment values detailed by rule
User defined slices through model views for enhanced rule balancing and trace analysis
Visual allocation trace from aggregate or granular level, detailed by rule
Management Ledger- Traceability
36
But what about Cloud?
37
PBCS2014
FCCS2016
PCMCS2016
Discover and Act on Hidden Profit and Loss
Empower Users with Flexibility
Improve Financial Decision Making
38
The Future - Oracle Profitability and Cost Management Cloud Service (PCMCS)
R$
E$
Discover Cost and Profit
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis
Performance Ledger Applications
� Complex Multi Step Computations
� Flexible Allocation & Custom Calcs
� Business User Managed Rules
� Comprehensive Audit Trail
Performance Ledger Applications
� Complex Multi Step Computations
� Flexible Allocation & Custom Calcs
� Business User Managed Rules
� Comprehensive Audit Trail
Application Management
� Best Practice Application Templates
� Dimension Upload / Update
� User Provisioning
� Data Security
Application Management
� Best Practice Application Templates
� Dimension Upload / Update
� User Provisioning
� Data Security
Multiple Dashboards
� Charts & Data Grids
� Key Performance Indicators
� Custom Time Aggregations
� Rank and Scoring
Multiple Dashboards
� Charts & Data Grids
� Key Performance Indicators
� Custom Time Aggregations
� Rank and Scoring
Population Performance Analysis
� Multi Dimensional Profit
� Rank and Order
� Allocation Rule Trace
� Custom Queries w/Drill to Smart View
Population Performance Analysis
� Multi Dimensional Profit
� Rank and Order
� Allocation Rule Trace
� Custom Queries w/Drill to Smart View
Custom Report Creation
� Strategic P & L Reports
� Cost Contribution Detail
Custom Report Creation
� Strategic P & L Reports
� Cost Contribution Detail
Three Pillars to PCMCS
40
HPCM for Rules Management Mobile Ready Embedded Analytics
PBCS Data & Automation Management
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
HPCM and PCMCSSummary of Recent Releases and Roadmap
Near Term: PCMCSNear Term: PCMCS Future +1Future +1
• PCM Cloud Service• Data Forms• Rule Enhancements• Enhanced Rule and Balance Dims
• PCMCS Solutions• Oracle IT Costing and Transparency• Partner Industry Specific Accelerators
• PCM Cloud Service• Management Ledger Apps (a.k.a.
Performance Ledger)• Embedded Analytics
• Embedded Analytics • Population Performance Analysis• Multi Dimensional P&Ls• Cost Contribution Reporting• Cost and Profitability Statistics• KPI’s & Dashboards
• Complete Data, Security and Automation• Data Management• EPM Automate• Data Level Security
Recent: HPCM 11.1.2.4Recent: HPCM 11.1.2.4
• Ledger Allocations Support• Management Ledger Model Type• Mixed dimensional attribution• True business rules• Rule based allocation trace
• Financial Close Manager Integration• Coordinated Schedules and Templates• Click through to ML App functions
• Performance Enhancements• Detailed Apps Multi Source Rules• Management Ledger Allocation Rules
• Dimension and Data Management• Management Ledger Apps
• Data Load from File• Dimension Load from File• Template Export / Import
Oracle Confidential – Internal/Restricted/Highly Restricted 41
Closing and Q&A
42
Summary/Questions
FlexibilityBusiness Users can Run Multiple Versions to assess impact of business changes
Business Power User facing application – limited IT involvement in running the model
AccuracyProfitability Workflows are now an automated, repeatable processes
Meaningful cost drivers and methods for cost pools ensures greater acceptance of published results
SpeedBusiness Users Can answers questions that impact operational and pricing decisions quickly.
Reporting Analytical Platform supports speed of thought ad-hoc reporting as well as user guided analysis
TransparencyExcellent visibility throughout the allocation process.
Operational Managers now understand operational profitability and cost to serve via the analytical platform.
•
Summary –Typical Project Outcomes
43
Positioning Profitability Solutions Within Your Organization
We understand where it fits…. We know the questions to ask….
44
PBCS
PCMCS
ERP
FCCSEPRCS
DRM
HCM
CRM
SCM
Does your company understand the true costs of its products or services?
re costing models transparent enough? Can you easily trace back the
assigned costs to the activities and line item expenses that drive them?
Are costing models transparent enough? Can you easily trace back the
assigned costs to the activities and line item expenses that drive them?
Do your costing methods operate at the right level of detail?
Are you satisfied that you are allocating shared services (e.g. IT/HR) accurately?
Are people spending too much time maintaining our costing models and other elements of our costing system?
Can people in your company quickly test how changes to commodity, input costs, lower or higher volumes will affect our profitability?
Are you getting answers from our costing systems fast enough to be actionable? Would reducing this process time improve our competitiveness or profitability?
Is all of the data that you need to understand true costs available in a single ERP system? If not, what are the initial and ongoing costs of integrating that data into your ERP system?
Q&A
45
6 Conference Sessions. 3 Lunches. 1 Happy Hour! Join Us.
− LUNCH N LEARNS @ the Thirsty Bear, 11:45-1:00 pm
− Mon: Cloud Showcase Featuring Universal Health Services and Brookdale Hospital
− Tues: Mastercard Worldwide Drives Performance Using Oracle HPCM
− Wed: Terumo Medical: Integrated Business Analytics at its Best!
− Register for Lunches or Tuesday night Happy Hour @Southside Spirit House @[email protected].
− RANZAL KIOSK, Moscone West, 3rd Floor
We're giving away Apple watches and TVs, wireless headphones, Bluetooth speakers, and much more!
Receive an entry every time we see you - sessions, lunches, happy hour, and at our EPM kiosk #10
− CONFERENCE SESSIONS− Universal Health Services Presents:
Monday, 9/19, 1:45pm - 2:30pm, Moscone West - 3018Oracle Enterprise Performance Management on Premise and in the Cloud: Taking a Hybrid Approach
− Mastercard Presents:Monday, 9/19, 3:00pm - 3:45pm, Moscone West - 3020Customers Present - Profitability and Cost Management
− Ranzal Presents:Wednesday, 9/21, 11:00am, Moscone West - 3rd FloorUnderstanding Cloud Strategies: On Premise, Cloud, and the Hybrid Approach
− TransRE Presents:Thursday, 9/22, 9:30am - 10:15am, Moscone West - 3020Introduction and Update: Oracle Hyperion Financial Close Suite
− Brookdale Hospital Presents:Thursday, 9/22, 1:15pm - 2:00pm, Moscone West - 3018Brookdale Hospital's Journey to the Cloud
− PPG Industries & Trinity Health Presents:Thursday, 9/22, 1:15pm - 2:00pm, Moscone West - 3024Customers Present - PPG Industries Simplifies with DRM
46