The Journey to World-Class

Oracle Hyperion Consolidation and Reporting including

Drill back from HFM to EBS (ERPi) ERP Integrator (ERPi)

Mark Nichols – Director, EPM Solutions – Southwest Region and Hi-Tech

Ken Dowd – Director, EPM Strategy

Doug Hansen – VP, Sales

Page 2

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Introductions

What is ERPi?

Demonstration of ERPi

ERPi Implementation Approach

The Hackett Group

Questions

Agenda

Page 3

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

What is ERPi?Basics of ERPi….

ERP Integrator (ERPi) is a new component of FDM allowing users to…..

– streamline the integration of metadata and data from select ERP systems (PeopleSoft, Oracle

E-Business Suite (EBS)) into target Oracle EPM systems (such as HFM and Planning.)

– drill-through from HFM, Planning, Essbase, and Enterprise (6.5.1 or later) into select ERP

systems (PeopleSoft, Oracle EBS.)

– write-back data from target application to ERP system

ERPi available with FDM version 11.1.1.3 onward

ERPi works with the following source systems:

– PeopleSoft Enterprise Financial Management 9.0, 9.1

– Oracle eBusiness Suite 11.5.10CU2, 12.0.6, and 12.1.1

– PeopleSoft Human Capital Management 9.0, 9.1

– Future releases are expected to include integration functionality for additional ERP systems,

including JD Edwards and SAP

Page 4

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

What is ERPi?Process and Technology Benefits….

ERPi adapter is a ready built adapter removing the need for a

complicated ETL process

Ability to select specific ledger and organize pulls by business

units. For example, a French business segment could initiate their

own ERPi pull using FDM.

Governance benefit in that there are no text files being transferred

and no end-user interaction with source files (although audit files

can be generated if needed)

Leveraging Oracle’s world class FDM/ERPi technology the

Hackett Group is able to deploy ERPi data feeds to HFM,

Planning, Essbase (BSO), EPMA and CORPTAX

ERPi will also load metadata into EPMA

Additional integration points (SAP, JD Edwards, etc) are on the

product roadmap

Page 5

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

What is ERPi?High level process flows….

Page 6

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

ERPi

Drill Back

Hackett Integration Framework

Write-Back

Data /

Metadata

Page 7

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Demonstration of ERPiDrill back from HFM to Oracle EBS….

Page 8

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

ERPi Implementation Approach

Pre-Design

Design

Build

Test /Train

Deploy

• Identify number of ledgers

• Where is the customer sourcing information?

• Custom tables or direct source to EBS/SAP. Examples.

• Teams: customer EBS and Hackett Infrastructure

• Identify version compatibility

• Validate data integration strategy.

• Gather requirements

• Design logical data extract groupings

• Design frequency of extracts

• Design data mappings

• Design ERPi configuration settings.

• Create test, training and rollout strategy

• Build Proof of Concept

• Develop cut-over strategy

• Update and deliver design documentation

• Build Integrations

• EBS connections and ID’s from EBS,

• ERPi Metadata and Data Mapping Rules

• FDM import format

• FDM Mapping and Scripting (Must use formulas and concatenation of code)

• Scope well documented by application team and customer

• Initialize ERPi Source system to setup the Drill-back hooks. Source initialized once.

• Create 1 metadata rule per ledger and 1 data rule per metadata rule. Avoid too much

metadata management

• Unit test build components

• Migrate to test

• Build test scripts

• Conduct system Integration test

• Conduct user acceptance test

• Conduct performance test (determine during design phase if necessary)

• Train system administrator

• Train functional users

• Conduct formal knowledge transfer

• Migrate to production

• Roll out ERPi solution

• Production Support)

Page 9

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

What do I look like compared to

World Class Organizations and

peers?

What are the trends and best

practices to consider in the

marketplace?

What best practices should

I consider to be more

efficient and effective?

How can I continue to

measure efficiency and

effectiveness ongoing?

How do I utilize best practices

within my technology

implementation?

How do I successfully

implement and phase EPM

technology for the broadest

success?

Benchmarking

& Research

Technology

Implementation

Advisory & Transformation

Services

The Hackett Group”I want my Organization to be World Class in 24 months” – “I want proven Best Practices woven into this project”

Page 10

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

World-Class is defined as top quartile performance in both efficiency and effectiveness

EFFECTIVENESS

Operating profit volatility

Cost of capital

Days sales outstanding

Days payables outstanding

Days Inventory on-hand

Quality metrics

Accuracy of forecasts and

analysis

Functional role in strategic

decision making

Industry relative total excess

return

Percent of time analytic focus is

on proactive decision making

EFFICIENCY

Overall function cost as a %

of revenue

Process cost as a % of revenue

Technology cost per function FTE

Staffing levels by process

Cycle times and iterations

Unit cost of transactions

Utilization of self-service for

inquiry

Application complexity

Automation of transactions

Reliance on spreadsheets

Percent of business reports

distributed electronically

Hackett Value Grid™ (Finance Example)

Page 11

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

• While many organizations tout “best practices,” they are

typically founded on opinion of individual consultants and at

best standardized across an organization.

• Hackett Certified Best Practices are based on the empirical

data from over 3,500 Hackett benchmark studies and are

proven to correlate to higher levels of performance.

• By understanding how the world-class companies perform and

the common characteristics they share, Hackett develops

solutions that rest on a foundation of fact.

Hackett Certified Best Practices Have a Proven Correlation to Better Performance

Hackett’s Best Practice Intelligence CenterBased on empirical data from benchmarking studies

Page 12

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Forecasting

Cycle time Quick 5 days, tied to close and analysis

Time Horizon Rolling forecast – 6 quarters, or driven by business cycle

Frequency Quarterly and by material event

Forecast Info Over 20% operational info linked to operating plans

Outlook Forecast drives guidance

Forecasting Cost1st Quartile - 0.007 % of Revenue

Median - 0.040 % of Revenue

Reporting and Analysis

Architecture • 2 or less systems accessed

• Automated production data store

Delivery • Exception based reporting

• Standard reports are automatically generated & distributed

• Supported by a standard tool set

Information

Management

• Information consistently defined across the enterprise to

ensure comparability

Analysis Cost 1st Quartile - 0.009 % of Revenue, Median - 0.039 % of Revenue

Reporting 1st Quartile – 0.020% of Revenue, Median – 0.055% of Revenue

Planning & Budgeting

Cycle Time (annual

plan)

No more than 2 months

Process Iterations No more than 2-3 iterations

Standards Standard, streamlined process;

Standard definitions and rules

Process Linkage Strategic Plan drives economic

forecast and top-down targets

Line Items Less than 80 line items

Scenario Planning,

etc.

Significant use of scenario

planning

Integration Highly integrated systems

Planning Cost1st Quartile - 0.025% of Rev

Median - 0.051% of Revenue

What Characteristics do World-class EPM Companies exhibit?

Page 13

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Normally 20% to 50% improvement opportunity

HIGH

HIGHLOW 1Q 1D

World Class

EFFICIENCY

World Class

EFFECTIVENESS

1D

1Q

WORLD CLASS Business Function% Savings Between: Peer & World-

Class Efficiency

Finance 48% - 59%

HR 32% - 51%

IT 13% - 33%

Procurement 21% - 29%

Total Opportunity 25% - 42%

Balance Sheet Cash Opportunity

Receivables (DSO) 35% - 37%

Inventory (DIO) 46% - 51%

Payables (DPO) 13% - 19%

Total Working Capital (DWC) 31% - 57%

Why does World Class performance matter?

Page 14

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Market Leading Technology Practice

Business Intelligence

Budgeting and Planning EPM Architects Consolidations Technology

Justin Gillespie Kathy Horton Jason Fitzgerald Kris Murphy Mark Wirth

Data Warehouse

Dashboarding /

ScorecardPlanning & Essbase

Strategic

Finance

Orchestrated Design Financial Management

Data Quality

Management

Balance Sheet -HPCM Multi Product

Expertise

Strategic Road

Mapping

EPM Environment

Design

Hardware

Sizing

Technical

Support

Sales & Marketing

Doug Hansen

Demand Generation

Sales Support /

Inside Sales

Account Management

Number of Oracle EPM Technology Consultants

25 40 5 45 13 8

Number of Oracle EPM Transformation Consultants

14 30 8 26 N/A 11

Number of Implementations

150 200 40 200 400 600

Scott McHale – Principal EPM Technology Practice

Page 15

© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Wrap – Up and Questions