epm sales bootcamp alain floch – director apac sales consulting oracle epm

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EPM Sales BootcampAlain Floch – Director APAC Sales ConsultingOracle EPM

Session Agenda

• EPM and Management Excellence • The Value of Oracle’s EPM System• Recorded Demonstration • Key Audiences for EPM• Customer Case Studies• Q&A’s


EPM and Management Excellence

Smart Companies Capitalized on the Downturn

“A downturn is a terrible thing to waste. It's easier for everyone to understand the need for the change when things are tough and the risks are lower.” - Frank Blake, CEO Home Depot, Wall Street Journal, June 2008

"This is not the time for tech companies to be

cutting back…this is the time to be hitting the accelerator.” – Peter Thiel, Facebook board member and investor, BusinessWeek, November 2008

"This is not the time for tech companies to be

cutting back…this is the time to be hitting the accelerator.” – Peter Thiel, Facebook board member and investor, BusinessWeek, November 2008

High-Impact Strategies

Today’s Reality: Management Processes Are Fragmented

• Lack of business alignment• Low predictability in performance• Inconsistency in business decisions

FINANCIAL MODELING

SIX SIGMA

ANALYZE PERFORMANCE

GOAL SETTING

SCORECARDS FINANCIAL REPORTING

VARIANCE ANALYSIS

ROLLING FORECAST

OPERATIONAL PLANNING

MONITOR RESULTS

Is this the best way to work in difficult times?

Management Excellence: The Next Competitive Edge

Time

CompetitiveAdvantage

OPERATIONAL EXCELLENCEOPERATIONAL EXCELLENCE

MANAGEMENT EXCELLENCEMANAGEMENT EXCELLENCE

Cost – Lean and MeanQuality – Six Sigma, TQMSpeed – Real-time, JIT

Cost – Lean and MeanQuality – Six Sigma, TQMSpeed – Real-time, JIT

Smart – Deep InsightAgile – Decisive ActionAligned – Across the Extended Enterprise

Smart – Deep InsightAgile – Decisive ActionAligned – Across the Extended Enterprise


The Value of Oracle’s EPM System

Oracle EPM System Elevator Pitch

• Oracle EPM System streamlines your management processes by cutting down the inefficiencies and time you spend on budgeting, consolidation, reporting, etc.

• It brings together all the crucial information which are important for the users to view, analyze and make decisions.

• It provides a centralized platform which automates tasks like data collection, install workflow disciplines, and simplifies reporting and analyses.

• In a nutshell, it aligns the entire organization to the common strategy and goals.

BI Applications

EPM Workspace

OLTP & ODSSystems

Data WarehouseData Mart

SAP, Oracle, Siebel,PeopleSoft, Custom

ExcelXML

BusinessProcess

OLAP

Fusion Middleware

Business Intelligence Foundation

BI ApplicationsPerformance Management

Applications

Oracle EPM SystemIndustry’s First Integrated EPM System

BI Applications

OLTP & ODSSystems



ExcelXML

BusinessProcess

OLAP

Fusion Middleware



Applications

EPM WORKSPACE

Web AlertsOffice MobileDesktop Search

Pervasive Information Access Through a Unified EPM Workspace

• Single sign on• Process integration with PM

Applications• Now provides access to OBI Tools

and Applications • User interface filtered

by security• Tabbed view of content• One place for applications,

reporting and administrative content

EPM WorkspaceIntegrates Management Processes into a Common Environment

Business Value: Improved User Productivity, Lower Training and Deployment Costs

Smart View for OfficeCommon MS Office Interface to EPM System

• Adhoc Reporting• Stylized Output:

• Formats

• Tables

• Charts

• Formulae

• Data Entry and Apps Processing

• Word and PPT• Now works with

OBIEE as source

Business Value: Improved User

Productivity, Lower Training and

Deployment Costs

EPM Workspace

OLTP & ODSSystems



ExcelXML

BusinessProcess

OLAP

Fusion Middleware


Applications

BUSINESS INTELLIGENCE FOUNDATION

Essbase BI Server Predictive Analytics

Common Enterprise Information Model

Scalable and Unified BI Foundation

Market Leading Performance Management Applications

BI Applications

EPM Workspace

OLTP & ODSSystems



ExcelXML

BusinessProcess

OLAP

Fusion Middleware


BI ApplicationsPERFORMANCE MANAGEMENT APPLICATIONS

StrategyManagement

BusinessPlanning

ProfitabilityManagement

FinancialReporting &Compliance

Market-leading Performance Management Applications Suite

Master DataBusiness Rules

Metrics/KPIsTargets, Plans & Actuals

Strategic PlanningSet Strategic Objectives

CorporateDevelopment

TreasuryStrategies

Long-TermPlanning

Cost and Profitability ManagementDefine Costing

Methods

Perform Allocations

Report & AnalyzeDefine Cost

Drivers

Financial Close Process

Data Cleansing

ConsolidateInternal

Reporting & Analysis

External Reporting & Compliance

Cascade Targets

Allocate Resources

ForecastingDetailed

Budgeting

Planning and Budgeting

Oracle Enterprise Performance Management Applications – Strategic Products

Domain Products

Strategic Planning Hyperion Performance Scorecard

Hyperion Strategic Finance

Crystal Ball

Planning & Budgeting Hyperion Planning

Hyperion Workforce Planning

Hyperion Capital Expense Planning

Financial Close Management for Consolidation and Reporting

Hyperion Financial Management

Hyperion Financial Data Quality Management

Cost and Profitability Management Hyperion Cost and Profitability Management

FundingFundingAnalysisAnalysis

CorporateCorporateValueValue

LT PlanningLT Planning CorporateCorporateDevelopmentDevelopment

Consolidate regions, business units, mines

Commodity price & FX analysis

Life of reserve / mine analysis

Capital investments

Cash flow analysis

Funding requirements

Balance sheet management

M&A, divestitures

Joint ventures, alliances

Valuation

Deal structures and synergies

HSF - Create a Strategic Financial PlanIntegrated Financial Modeling to Manage Corporate Value

• Analyze Trail Feature• Visualize model logic

• Consolidation Intelligence• Complex entity structures

• “Deal Period” Functionality• Create M&A simulations

• Debt Scheduler• Cashflow implications of debt

• Funding Options• Optimize capital structure

• “What-If” Analysis Toolkit• Unlimited scenarios

HSF - Create a Strategic Financial PlanManage Scenarios and Increase Modeling Speed

• What-if analysis

• Scenario comparison

• Consolidate multiple scenarios

• Goal seek

HSF - Create a Strategic Financial PlanForecast Financials Through Scenario Analysis

Selected HSF Customers - APAC


Domain Products



Crystal Ball








Budgeting Process is Highly Inefficient

• Time – takes too long, results obsolete

• Quality – political/negotiation, not reflective of business

• Cost – many wasted resources, dubious benefits

• Flexibility – lack of responsiveness to changes

FP&A Group

Senior Management

Dept A Dept B Dept C

Streamline Planning, Budgeting and Forecasting

• Centralized, not distributed• Short budget cycles• Collaboration across organization• Consistent assumptions and

calculations• Accurate data and plans• Accountability• Align top-down with bottom-up• Driver-based planning• Rolling forecasting

Single Centralized Planning Platform

Income Statement

Balance Sheet Cashflow

CORE FINANCIAL PLANS

Workforce Planning

CapEx Planning

SPECIALIZED MODULES

Sales Planning

CUSTOM BUILT

Projects Planning

Marketing Planning

ProductionPlanning

Essbase Business Analytics Server

Hyperion Planning Application

Data Warehouses Transactional Systems Performance Management Applications

EPM Workspace

Hyperion PlanningShortens Planning Cycles and Improves Business Predictability

• Powerful workflow and process management

• Intuitive interface• Robust data integration • Leverages Essbase – powerful

reporting and analysis• Scalable web infrastructure• Special-purpose planning

modules for fast deployment

Oracle’s Hyperion Planning – Delivering Predictable Results

• Accuracy – one planning platform for all the modules, improving processing time and accuracy, as well as reducing the maintenance overhead

• Performance – Essbase, award winning OLAP engine, boosting the scalability and performance of any planning application

• Simplicity – one reporting workspace enabling real time, side-by-side planning, forecasting and analysis

Fundamental Capabilities

CAPABILITY DETAIL

Planning and Analysis

Fully embedded into BI and Microsoft Office for real-time reporting and analysis

Modeling The ability to model at the operational level, assessing impact to the overall strategic plan

What-if See the business impact of changing business drivers to make intelligent decisions

Collaboration Technology that allows the entire user community to communicate and plan in real time as well as offline

Top-down/Bottom-up Bi-directional planning capabilities to promote accuracy and accountability

Hyperion PlanningStatistics @ July 2007

Hyperion Planning - Nr of Customers

908972

1,0411,151 1,189

1,2641,334

1,4331,485

1,5511,637

1,736

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY05-Q1 FY05-Q2 FY05-Q3 FY05-Q4 FY06-Q1 FY06-Q2 FY06-Q3 FY06-Q4 FY07-Q1 FY07-Q2 FY07-Q3 FY07-Q4

Worldwide 1736

US 1053

EMEA 458

APAC 225

Hundreds of Global ReferencesHyperion Planning

Oracle E-Business Suite PeopleSoft Enterprise

Proven Scalability and PerformanceCustomers Deploy Planning Enterprise Wide

10,000 members/dimension

> 20 million intersections

9,000 entities 7,000 entities

26,000 accounts30,000 employees

15,000 members/dim 30,000 employees

700 KPIs in 24 dimensions


Domain Products



Crystal Ball








Oracle Financial Consolidation and Reporting Applications & ToolsPurpose Built for Each Step of the Process

Financial Close Process

Data Cleansing ConsolidateInternal

Reporting & Analysis

External Reporting & Compliance

Hyperion Financial Data

Quality Management

Hyperion Financial

Management

Hyperion Web Analysis

Smart View

Hyperion Financial

Reporting

Oracle Hyperion Financial Management Accelerates Reporting Cycles and Reduces Costs of Compliance

• Patented financial consolidation and reporting features

• Complete audit trails, workflow and validations

• “Smart Dimensionality” • Flexible “what if” scenario

management features• Powerful, reporting and analysis

tools• Full integration with ERP and

other transaction systems • Easy to customize and extend• Web-architected

Fundamental Capabilities

CAPABILITY DETAIL

Reporting Most flexible solution in the market, periodic

consolidation, segment reporting, fin. intelligence

Consolidation Multi GAAP capabilities, flexibility, variance analysis,

audit trail, intercompany, phased submissions

Compliance Workflow, documentation attachments, commentaries,

electronic questionnaires, disclosures

Data Integration Financial data quality management employed to

collect, map, validate & move data

MS Office Integration

Bi-directional capabilities within MS Office suite for real-time, accurate information

Oracle’s Hyperion Financial Management Benefits

• Confidence in the numbers – One integrated solution (FDM+ HFM) for all data improving processing time and accuracy with complete audit trails and validation processes

• Decrease cost of compliance – Financial Management with a flexible workflow, process control, intercompany balance and transaction eliminations, commentaries and electronic questionnaires help organizations to focus on value added tasks

• Speed and agility – Improve the close cycle by days with Finance owned workspace, a centralized DB and EPM Architect to implement and maintain the application with confidence and rapidity

Financial Data Quality Management (FDM) Financial Data Quality Differentiated

Oracle’s Financial Data Quality Management (FDM) helps finance users increase their confidence in the numbers and lowers their cost of compliance by eliminating data integrity risks associated with collecting, mapping, validating, and moving critical financial data from across the enterprise.

Financial data quality management is a business issue, and is defined as the practice by which companies can effectively and consistently combine the following four factors:

• Financial data collection and transformation• Repeatable financial processes• Internal controls• Audit trails

SOURCESYSTEMS

• Data cleansing and transformation

• Task scheduling• Text and document

archive• Audit review• Data staging

• Prepackaged integration• Data loading including

supplemental data, line item detail

• Dimensional mapping verification

• Process management

• Excel• Flat files• ODBC• GL/ERP• Oracle EBS• PeopleSoft• SAP R/3

• Hyperion Financial Management

• Hyperion Planning• Hyperion Essbase• Hyperion

Enterprise• Data Marts

DATA PREPARATION

SERVER

EPM SYSTEM

COMPONENTS

GUIDED WORKFLOW USER INTERFACE

EPM Adapters

Hyperion Financial Data Quality ManagementEnsure Accurate Financial Reporting and Planning

Hyperion Financial ManagementHyperion Planning, Essbase

Oracle Account Analysis and Drill-Down for both

Actual and Budget

Hyperion FDM Oracle EBS R11

Drill-through to General LedgerInsight into Action in a Single System

Hyperion Financial ManagementHyperion Planning, Essbase


Drill-through to General LedgerInsight into Action in a Single System

SAP R/3 4.6c or ECC 6.0

Select Hyperion Financial Management Customers: 1300+ WorldwideCommunications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences Services/Other


Domain Products



Crystal Ball








Profitability Management Questions

• What defines a profitable customer?

• What is the profit contribution margin of a product or a service?

• What does it cost to sell or service customers?

• What proportion of resources does a customer consume?

Why hasn’t reducing costs increased profitability?

Hyperion Profitability and Cost ManagementActionable Insights into Costs and Profitability

• A packaged application that drives business performance by:• Discovering drivers of cost and profitability • Empowering users with visibility and

flexibility • Improving resource alignment

• Leverages the power of Essbase• Designed for the business user• Leverages existing IT investments

Selected HPCM Customers

Product Profitability

Product, Channel ProfitabilityCost of Service

Product/Channel/Segment/ Customer Profitability

Shared Services CostingCost to Serve

Shared Services CostingPricing Contracts

Regulatory Reporting

Shared Services CostingRegulatory Reporting

Product ProfitabilityCustomer Profitability


Recorded Demonstration


Key Audiences for EPM

Key Audiences for EPM

• Senior Execs/CXO (Chairman, CEO, President, CFO, CIO – senior management team)

• Office of the CFO (CFO, VP Finance, Controller, Treasurer, VP/Director of Financial Planning & Analysis, VP/Director of Financial Reporting etc.)

• Line of Business Executives (VP Sales, Marketing, Customer Service, HR, Procurement, Operations, Business Unit General Managers)

• IT Executives (CIO, VP/Director of Information Systems)

Which of the following are likely to be your company’s priorities in the next three years?

49.4%

48.2%

31.4%

31.0%

27.8%

26.9%

19.2%

16.3%

15.9%

13.1%

0% 10% 20% 30% 40% 50% 60%

Increasing profitability

Revenue growth

Driving innovation

Increasing market share

Reducing costs

Improving customer service/loyalty

Strengthening relationships with key stakeholders

Strengthening corporate brands

Corporate social responsibility

Completing mergers and acquisitions

Senior Executives/CXO’s

High Yield Questions: • How do you balance the conflicting demands of

different external stakeholders?• How well is your company able to adapt to changing

business conditions?• How do you identify and allocate resources to new

business opportunities?• How do you ensure individual and workgroup goals

and activities are aligned to corporate objectives?• Do your decision-makers have a single, reliable view

of your financial and operating results?

What’s Important to the CFO? Everything.

Source: IBM Global Business Services, The Global CFO Study 2008

Measuring / Monitoring Business Performance

Continuous Process Improvement / Business Improvement

Meeting Fiduciary and Statutory Requirements

Driving Integration of Information Across the Enterprise

Developing People

Aligning Finance with the Business

Driving Cost Reduction

Leading Finance-Related Compliance Programs and Strengthening Internal Controls

Inputs into Identifying and Executing Growth Strategies

Supporting / Managing / Mitigating Enterprise Risk

CFO agenda

ImportanceEffectiveness

40%

65%

51%

55%

37%

42%

80%

60%

71%

72%

73%

75%

75%

74%

76%

84%

30%

45%62%

66%

Senior Finance Executives

High Yield Questions: • Do you know how you are performing compared to plan, how to spot the

variances in a timely manner, and what actions to consider / take to meet goals?

• How well are you able to forecast future results and meet market expectations?

• How do you evaluate the financial implications of operational plans? How do you link financial goals to operating plans?

• How efficient is your financial reporting process? Are you delivering timely information to internal and external stakeholders?

• How are you managing your costs of compliance?• Are you able to understand profitability by product/service line, customer

segment and distribution channel?• Do you have a consistent set of business definitions and metrics across

your business?

CIO and IT Executives

High Yield Questions:• How satisfied are your line managers with the timeliness and

accuracy of information you provide them to support their financial and operational decisions?

• Are you fully leveraging the investment and data generated by your ERP systems?

• How much time and effort do you spend moving data and trying to link the current point solutions you use to support the business performance management process?

• Do you have a consistent set of business definitions and metrics in use across your company? How much time and effort are you spending trying to maintain consistency of business definitions and master data across multiple systems?


Customer Case Studies

What If You Can Overcome a Major Liquidity Crisis?Hyperion Strategic Finance

Before

Lost investment-grade credit rating Needed recapitalize balance sheet No cash flow modeling capability No simulations at the divisional or

business unit level

$22 Billion global provider of power and automation technologies

After

Credit rating back to investment grade $4 Billion debt restructuring Simulate capital structure and cash flow 3% accuracy in net income projection

Reduce Planning From Weeks to DaysHyperion Planning

Before

Distributed Excel planning Two weeks P&L reporting Quarterly forecast Hampered corporate alignment Management had to wait for reports

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

After

Centralized planning system Two days P&L reporting Rolling forecast In sync with corporate goals Management has instant online access

First to Report on the Dow Jones Hyperion Financial Management

Before

• 12+ days to close

• Many analytical technologies

• Complex reporting and forecasting

processes

• Hours to create reports

After

• 5 days to close

• Global consolidation across 58

lines of business

• Global forecasting and reporting

solution for 1,000+ users

• Minutes to access information

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.

• Enterprise Performance Management• Business Analytics• Database• Database Share on Linux• Supply Chain Management• CRM • Retail • Communications • Human Capital Management• Financial Services• Public Sector• Professional Services

Leader in Key Markets

Forrester Wave™: Business Performance Solutions, Q4 2007

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Source: The Forrester Wave™: Business Performance Solutions, Q4 2007 – Paul Hamerman, October 10, 2007

http://www.oracle.com/corporate/analyst/reports/infrastructure/index.html#bi

Oracle Confidential - For Internal Use Only

Gartner: Magic Quadrant for CPM Suites, 2009

The Magic Quadrant is copyrighted 30 April 2009 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle. Source: Gartner, Inc., “Magic Quadrant for CPM Suites, 2009” by Nigel Rayner, Neil Chandler, John E. Van Decker, James Holincheck, 30 April 2009.

Oracle Confidential - For Internal Use Only

Oracle #1 in Financial Performance and Strategy Management Applications - IDC

Other30%

SAS5%

SAP24%

IBM/Cognos9%

Oracle26%

Infor6%

2008 Total Market: $2.22B2007-2008 Growth: 12.2%

2008 FPSM Apps Revenues2008 Market Shares

210

582

528.2

109

99SAS

Infor

COGN

SAP

ORCL

Source: IDC, 'Worldwide Financial Performance and Strategy ManagementSoftware 2008 Vendor Shares‘, June 2009, Doc #218656IDC counts software license and maintenance in their revenue estimatesIDC derives their numbers independently, without validation from Oracle

Gartner Dataquest: CPM Suites, APAC, 2008

SAS9%

SAP20%

Others23%

Infor6%

IBM14%

Oracle28%

Total Market Share 2008

IBM0.0%

Infor8.4%

Oracle21.1%

SAP9.1% SAS

8.9%

IBM13.6%

Infor6.0%

Oracle28.3%

SAP19.9%

SAS8.9%

0%

5%

10%

15%

20%

25%

30% Total Market Share 2007 vs. 2008

2007 2008

• 2007 Revenue: $0.09B (US)

• 2008 Revenue: $0.1B (US)

Source: Gartner, Market Share: CPM Suites, Worldwide, 2008 – Dan Sommer, Neil Chandler - June, 2009

Total Market Size

Key Takeaways

The Market Leader in Enterprise Performance Management

Strategic Products with high growth potential

Integrated with Oracle E-Business Suite and PeopleSoft, a Key Play to attack SAP accounts

1

2

3

Where to get more information?• http://apps.oraclecorp.com/epm/

• APAC contacts:• Alain Floch: [email protected] (APAC Domain Leader)

epm sales bootcamp alain floch – director apac sales consulting oracle epm

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