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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
*Source: Harvard Business Review June 2008
4
LOB1 LOB2 LOB3
The 17 Fundamental Traits of Organizational Effectiveness(5 out of the top 8 relate to information)
• Information flows freely across organizational boundaries
*Source: Harvard Business Review June 2008
5
The 17 Fundamental Traits of Organizational Effectiveness(5 out of the top 8 relate to information)
• Field and line employees have the information they need to understand the bottom-line impact of their day to day decisions
*Source: Harvard Business Review June 2008
6
The 17 Fundamental Traits of Organizational Effectiveness(5 out of the top 8 relate to information)
• Line managers have the access to the metrics they need to measure the key drivers to their business
*Source: Harvard Business Review June 2008
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The 17 Fundamental Traits of Organizational Effectiveness(5 out of the top 8 relate to information)
• Conflicting messages are “rarely” sent to the market
*Source: Harvard Business Review June 2008
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
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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
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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
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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
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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/…
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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
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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.
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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
29
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
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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
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