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www.finitsolutions.com

Key EPM Topics for 2015What’s Trending and Where are Things Going?

February 20, 2015Rob Cybulski

[email protected]

www.finitsolutions.com- 2 -

Finit Introduction

Finit Solutions specializes in consulting services in the Oracle Hyperion Enterprise Performance Management Solutions suite of products:

Financial Close and Consolidation

Financial Management (HFM)

Hyperion Enterprise

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Finit Answers: Post Implementation

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‘Pay as you go model’ is standard along with other levels of increased support.

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Finit’s Long-Term Partnership and Commitment to our Clients

During Project: Design, Develop & Deploy After Project: Support & Enhance

We deliver value throughout the project and beyond because we are on your side and consider your goals our goals.


Service: We believe that creating personalized experiences starts with aligning ourselves to your best interests

Compensation model based upon client satisfaction with consultant’s work

No external owners and Finit uses its own employees, not contractors

Solutions: The pride and personal satisfaction we gain from crafting and delivering solutions that have value, meaning, and impact are what inspire us

Finit consultants are Hyperion product experts with business functional knowledge.

Close relationship with Oracle Hyperion development on product strategy and beta testing.

Culture: We believe that running a business focused on people instead of profit is what makes Finit truly unique

Family-oriented, values-based company

Person to Person culture, not business to business

Finit’s Value Proposition


Finit’s Values


Our values and client service approach has led to:

100% customer satisfaction

for every Finit client (221 and counting)

for every EPM project (over 400 and counting).

Finit’s Track Record


About the Presenter

Rob Cybulski([email protected])

Co-Founder of Finit Solutions

15 years of experience implementing Hyperion products

Have worked with over 90 clients in various capacities in career

Strategy, Advisory, Design and Strategic PM focus

Frequent presenter at Hyperion conferences Kscope 2015: SDM with Erich Ranz


How to Ask a Question


Webinar Agenda

Oracle Product Updates and Roadmap

11.1.2.4 Release

Oracle Product Strategy and Footprint

Trending Topics and Key Areas

Infrastructure / Technical

Business Functional

Professional Growth Opportunities for 2015

Q&A


The information discussed in this webinar represents Finit’s understanding of current and future planned product functionality and strategy.

Finit is a separate entity from Oracle and while we have a close relationship with Oracle product development, the future product functionality items discussed is our understanding and the actual items released in the future may change.

Our goal is to be advisors to provide information to help you make and plan decisions based on what our understanding is.

Discussion Topics



11.1.2.4 Release – Introduction

The Finit Solutions Series


Oracle Hyperion Enterprise Performance Management release 11.1.2.4 was released on January 28, 2015 and represents the fifth release for the 11.1.2.x platform. Release 11.1.2.0 was released in April 2010

Release 11.1.2.1 was released in April 2011



Release 11.1.2.4 was released in January 2015

The 11.1.2.4 release included a combination of new functionality, new third party software compatibility and bug fixes.

11.1.2.4 Introduction


The 11.1.2.4 release can be classified as a major product release and contains significant major product functionality changes across the EPM stack.

11.1.2.4 Overview


Premier Support for Oracle Hyperion EPM release 11.1.2.4 expires in April 2018. The April 2018 end date for 11.1.2.4 is the same for all 11.1.2.x products.

Customers have the option of purchasing extended support for all versions on 11.1.2.x and that additional payment provides product development support coverage until April 2021.

Oracle’s Lifetime Support Policy can be found here: http://www.oracle.com/us/support/library/lifetime-support-applications-069216.pdf

11.1.2.4 Oracle Support


Third Party Client Support with 11.1.2.4Item Version

Client Operating System (32 bit or 64 bit)

- Windows 7, 8, 8.1- Linux: Red Hat, Oracle Linux, SLES (web only)- Apple Mac OS X 10.6.x (web only)- New in 11.1.2.4: Dropped support for XP, Vista

Server Operating System (32bit or 64 bit)

- Windows 2008/R2, 2012- Linux: Oracle Enterprise Linux 5.8 on Exalytics, Red

Hat*, SLES*, Solaris*, AIX*- New in 11.1.2.4: Dropped support for Windows 2003- New in 11.1.2.4: Win 2012, Linux for HFM (Exalytics)

Microsoft Excel - Office 2007, 2010, 2013 (32 and 64 bit for all SP levels)

Web Browsers - Internet Explorer 9, 10, 11- Firefox 31.x ESR- New in 11.1.2.4: IE 11, Dropped support for IE 7 & 8

RDBMS - SQL: 2012, 2008- Oracle: 10.2.0.4+, 11.1.0.7+, 11.2.0.1+, 12.1.0.1+- New in 11.1.2.4: SQL 2012


Starting with 11.1.2.4, Oracle has taken a major step towards Operating System Platform Independence. HFM is now supported on Linux Operating Systems*

Currently, HFM running on Linux is only supported on Oracle Exalytics hardware, specifically Exalytics X2-4, X3-4 and X4-4 running Oracle Enterprise Linux 5.8.

FDM Classic has been discontinued, FDM EE is supported on Linux

EPMA & DRM are only available on Windows.

Currently, customers who own HFM and want to use their own hardware or use EPMA / DRM are still only supported on Windows Server.

Oracle’s 11.1.2.4 product certification can be found here: http://www.oracle.com/technetwork/middleware/bi-foundation/hyperion-supported-platforms-085957.html

Server Technical Certification



11.1.2.4 Release – Financial Close Suite



HFM received one of its most significant product changes ever in 11.1.2.4. A few major changes: The HFM application server components were re-written to provide

additional operating system support and increased HFM performance.

The HFM architecture was enhanced to support multiple operating system platforms.

HFM can now run on Linux operating systems in addition to Windows. Linux is currently only supported on select Oracle Exalytics hardware versions.

HFM can now perform consolidations using up to 24 CPU threads (increase from 8). HFM Consolidations should be able to run faster on servers with more than 8 CPU threads.

Additional changes include some user interface / tab changes and some minor utility changes.

‘Classic’ Metadata Management and Rules Editing still exist in 11.1.2.4.

11.1.2.4 - HFM


FCM / ARM had major product enhancements in 11.1.2.4. A few major changes: FCM has been updated to have some of the workflow and functionality that

existed in ARM (advanced filtering and user assignments).

ARM has been enhanced to allow for rules (i.e. copy from prior period)

11.1.2.4 introduces a new Report writer for ARM / FCM, which gives more capabilities for reporting out of FCM / ARM than the previous pre-built dashboards.

A new module was added: Supplemental Data Manager (SDM). SDM was built to facilitate the collection, reporting and workflow of unstructured and

semi-structured supplemental data.

Examples of items for SDM would be footnote package details (Non-compete agreement details, Bank Credit Lines), Debt and Load Information, etc.

SDM can be integrated with HFM, by loading data from SDM to HFM or pulling data from HFM into SDM, or it can exist as a stand-alone data store.

SDM is integrated with Smart View for data entry submission into forms.

11.1.2.4 – Financial Close Manager



11.1.2.4 Release – Planning Suite



Planning had medium level product enhancements in 11.1.2.4. A few of the main changes include: New simplified User Interface

Academy tab group for storing training and education information for users

Improved performance and response times overall in the web user interface and specifically with forms

Introduction of ‘instant’ and ‘automatic’ save on forms with immediate aggregation (Limited to ‘simple’ forms initially)

Job Scheduler for creating and managing jobs

Dashboard capabilities inside Planning

Improved Planning ASO capabilities

Workforce and Capital Asset modules did not receive any changes.

Project Financial Planning and Public Sector Budgeting received minor updates.

11.1.2.4 - Planning


11.1.2.4 – Planning Interface


Essbase had minor / medium product enhancements in 11.1.2.4. A few major changes: New and modified configuration setting controls

New and modified calculation functions and commands

Enhancements to hybrid aggregation

HPCM had minor/medium product enhancements in 11.1.2.4. A few major changes: Ability to create a Management Ledger application type (for better use with

Oracle GL and HFM).

Systems Reports are available for the different application types

11.1.2.4 – Essbase & HPCM



11.1.2.4 Release – Integration & Foundation



FDM EE had major product enhancements in 11.1.2.4. A few major changes: FDM ‘Classic’ is no longer available and the only option is to use FDM EE.

This is a major product change and will affect many customers who currently use FDM ‘Classic’. Oracle is expected to release an FDM to FDM EE conversion utility with PSU 100

(11.1.2.4.100) and presently a conversion utility does not exist.

The conversion utility when released is expected to convert Import Formats, Locations, Maps, Security and Validation rules.

Custom Reports and FDM scripts are not expected to be included in the conversion utility and will need to be rebuilt.

In 11.1.2.4, FDM EE added HPCM and HTP as target applications.

FDM EE added Data synchronization capabilities similar to EPMA to move data between EPM applications.

Other minor features to continue to provide parity with FDM ‘Classic’.

11.1.2.4 – FDM / FDM EE


“Don’t Cry Because It’s Over. Smile Because it Happened.”

Farewell FDM (UpStream)


DRM / DRG received medium level product enhancements in 11.1.2.4. A few changes: Enhancements to workflow requests and model

Improvements to Import process

Financial Reporting & Smart View had minor product enhancements in 11.1.2.4. Smart View: Multiple Submit Data options in Ad Hoc (Submit without

Refresh, Submit Data Range), SDM Support for Forms

Financial Reporting: very minor changes

Foundation had minor product enhancements in 11.1.2.4. A few changes: EPMA support for HPCM Management Ledger

Calc Manager improvements for Essbase, Planning and HFM

11.1.2.4 – DRM, Foundation & Reporting



Oracle Product Strategy and Footprint



Platform Independence Move towards all EPM products running on Windows and Linux server

operating systems

Move towards more client Operating System support (Mac OS, Linux)

Gives clients more flexibility and options

Exalytics Hardware More robust, complete offering of EPM products on Exalytics Hardware

Goal or more integrated Hardware and Software products

Cloud Strong push into Cloud offerings for Oracle overall

EPM initial Cloud offerings for Planning and Financial Reporting

Continued expansion of EPM products to Cloud offerings

Key Oracle Product Strategy Areas


Mobile Expansion into EPM functionality through Mobile devices

Initial focus has been Reporting and Workflow offerings

Usability Continued development and enhancements to EPM product user interfaces

Planning has received UI updates throughout the 11.1.2.x versions

Expected to continue across other EPM products

Expanding Oracle EPM to new areas Tax: Tax Provision (HTP) and Tax Transparency Suite (HFM, HTP, HPCM, FCM)

Oracle is positioning solutions for Tax Provision, Transfer Pricing and Tax Planning

Supplemental / Unstructured Data: Supplemental Data Manager (SDM)

Key Oracle Product Strategy Areas



Infrastructure & Technical



High level overview related to EPM products: Cloud: EPM solutions that are provided on servers located in the software

vendor’s data center (i.e. Planning Cloud).

Hosted: EPM solutions that are installed on dedicated* servers located in a third-party data center (i.e. AT&T, Rackspace, IBM, Amazon, EPM specific).

On-Premise: EPM solutions that are installed on dedicated* servers located inside your organization (i.e. EPM Prod environment in your data center).

Key Things to Know: Cloud offerings are generally application specific at this time. EPM product

usage will determine if Cloud can be used completely or hybrid only. Oracle has Cloud offerings currently for Planning and Financial Reporting.

The On-Premise option is generally the only option for physical servers.

Outside of cost, companies usually base the decision on ownership of maintenance, performance and stability (Internal or External).

Cloud / Hosting / On-Premise


SaaS (Software as a Service) is a licensing approach that generally involves paying an on-going subscription fee. The subscription fee includes user licensing + maintenance and is paid as

long as the users access the applications.

Traditional User Licensing is a licensing approach that generally involves paying an initial cost for a product license with ongoing yearly maintenance fees (% of user license).

In both cases, ‘named’ users are used in EPM (i.e. each user needs an individual license).

Key Things to Know: SaaS licensing is not required with Cloud offerings but generally is where

SaaS licensing is only available.

Decision comes down to cost preference and flexibility.

Traditional User Licensing vs SaaS


Virtualization has expanded inside companies and now in many cases all infrastructure layers may be virtualized (Web, App, DB).

In all cases, Oracle EPM products will work on virtual servers. The considerations come down to Performance and Stability. Virtualization adds minor ‘overhead’ to servers and Physical servers deliver

the best possible performance. This applies more to App and DB servers.

Virtual servers not optimized and managed can cause stability issues.

Key Things to Know: If using Cloud or Hosted options, you will be using Virtualized servers.

Virtualization is a great strategy, at a minimum, for some environments (Sandbox, Dev, QA).

Cost Benefit analysis should be used for Prod decision based on usage.

Improved EPM performance can help move to Virtualization.

Virtualization vs Physical


Oracle EPM products require 2 types of IT Services: Core IT – Hardware, Operating System patches, Network, DBA

EPM IT Admin – EPM Services, Monitoring, Performance, User Support

Organizations have three options to satisfy this: Full Managed Services – Third Party performs both types of IT Services

Partial Managed Services – Third Party performs one type of IT Services

Internal – Internal Company resources performs both types of IT Services

Application Roles: End User Support, Administration & Architect

Key Things to Know: EPM IT Admin role is usually the decision point for companies.

Some companies include EPM IT Admin + User Support as an area they look to outsource.

Overall question is focus of IT and Financial Systems team

IT Support Models



Business Functional



One of the leading topics now for organizations is on Profitability Analysis and Reporting. Profitability Analysis includes Product / Product-Line, Customer, Platform or Channel P&L’s. It

can provide tremendous insight and opportunities to develop pricing, product and customer strategies to improve financial results.

Profitability Analysis and Reporting generally is challenging because the source systems do not provide detailed P&L information to support the desired analysis

As a Result, Profitability Analysis and Reporting generally involves 3 steps: Profitability Definition

What Reporting Views are important to us and to what level of detail (Part # or Product Line?, Customer?)

What does P&L Mean? To Contribution Margin? To Gross Margin? To EBITDA? To Net Income?

Data Quality and ‘Gap’ Analysis By each reporting view, what data is available? Where are Gaps between the source system and the desired future state?

Is the source a sub-ledger or sub-system? Do we have Data Quality issues between systems (Journals, Timing, etc.)?

Allocations Design of Allocation Methodologies of Shared / Corporate Costs (i.e. Corp IT allocation) and to Detailed Views (i.e. BU

allocation of operating expenses down to product-line)

Overall Allocation Approach Decisions (Addition / Loss of products / customers, Restatements, etc.)

Trending Topic: Profitability


One of the leading topics now for Financial Planning & Analysis centers on more detailed Planning including Operational data. This trending topic is being driven in part by the same factors of Profitability. As organizations

report deeper P&L information, they are wanting to plan at those levels and look to ways to implement drivers to help build the plan at those deeper levels.

Many of the considerations for Profitability apply to this item, but there are two main additional items clients analyze: Analysis of Offline Models (i.e. Excel, Access) – As companies move beyond traditional financial

planning, many of the detailed models exist in offline systems like Excel and Access. Each of those models may have their own data sources / integration, level of detail and drivers. Companies analyze these models to determine whether the full model moves to an analytical application or if those models serve as a source of information to an analytical application.

Drivers – Identifying and finalizing drivers to be used is another major component to finalizing more detailed planning and analysis solutions. As with traditional financial planning, bringing drivers into a tool for the first time can involve consensus building to get to standardization.

Trending Topic: Operational Planning


One of the leading topics now for Financial Reporting centers on strategies to ‘Speed the Close’. Speeding the close looks at the processes and activities to complete the financial close

submission in a shorter period and to provide completed financials sooner.

Some of the areas our clients have looked for improvements are in the following: Expand ‘Preview Reporting’ – Include Weekly / Daily Sales, Flash Reporting out of EPM

applications. This strategy focuses on giving information throughout the close period & month.

Automation of GL to HFM Loading Process – looking to speed the steps of getting data into EPM applications.

Data Checks / Validations – identification and correction of validations as a part of the user submission, not a responsibility of the Consolidation team.

Prioritizing Focus between Trial Balance and Supplemental – Phased Submissions of Supplemental to focus on Trial Balance completion sooner.

Intercompany – Early Intercompany Submission to facilitate matching and correction sooner.

Consolidation Finalization – Supporting ‘Change Management’ and Journals to help finalization occur sooner.

Trending Topic: Speed the Close


Cash Flow Reporting and Automation continues to remain a key focus area related to Financial Consolidation and Reporting. Key item companies are looking for is how to consistently analyze Cash Flow at detailed levels

without it being time-consuming.

Some of the areas our clients have looked for improvements are in the following: Cash Flow Definition – Determining the Entity levels Cash Flow will be run and analyzed at as

well as the different views for the company (Internal, External, Free Cash Flow, etc.)

Chart of Accounts Review – If a Consolidated Chart of Accounts is used, determining if further detailed Accounts will help facilitate creating the Cash Flow.

Roll-Forwards and Memo Accounts – Reviewing the areas where further detail on Accounts are needed, such as Roll-Forwards.

Data Integration Review – Reviewing whether Roll-Forward details and / or Memo Items can be sourced and loaded as a part of the close submission versus manually input.

Non-Cash and Adjustment Process Review – reviewing level of detail where Non-Cash adjustments and reclassifications will be made and simplifying the submission of this data.

Trending Topic: Cash Flow


Moving GL Account Reconciliations into a software system remains a key focus area for the Accounting Organization. GL Account Reconciliations remains an area where a large number of organizations use Excel to

perform their Reconciliations.

Moving towards a software system can help save time, improve controls and provide better organization on the process, which overall reduces the risk of error.

Many of our clients who have implemented Account Reconciliations systems have done so in a phased deployment manner. Phases can be based off of ledger or shared service center. Typically they approach it as follows: Discovery & Design – review existing processes and design the solution to meet the long-term

process, submission and reporting needs.

Identify a first ‘Wave’ of reconciliations to go onto the new software solution.

Setup Source Data Integration, Reconciliations and Workflow process for first wave.

Perform Training and User Acceptance Testing on first wave and ultimately Go-Live.

Identify additional ‘Waves’ and begin rollout activities for those reconciliations.

Trending Topic: Account Reconciliations


Master Data Management and Governance is a key trending topic for the IT organization to help manage processes and different systems (source and target).

The Master Data discussion can be confusing as it often crosses over to data elements. A key first step is understanding what the pain points are. Is the issue that hierarchies exist in multiple applications and are different?

Is the issue that data is not being populated into a level of detail expected globally?

Is the issue that there are inefficiencies or no process involved in these activities?

We look at Master Data & Governance as analyzing 4 pieces of information: Source System Data – the lowest level of detail of metadata / data that actually exists

Source System to Target System Mapping – the mapping of source members to target members

Metadata Management – creation of base members / labels and creation and management of hierarchies and rollups (i.e. Product hierarchy, Chart of Accounts hierarchy)

Process & Governance – the workflow process related to requesting, reviewing, approving, performing, testing and releasing changes as well as the actual mechanics of what gets added where and how changes get added

Trending Topic: Master Data/Governance


Many organizations and industries are undergoing merger / acquisition or divestitures of businesses.

Acquisition / Merger Approaches and Key Items Acquisition model: Generally does not require major changes to existing applications for

Acquirer. Focus is on data loading and mapping acquired source systems into target applications and training and supporting users to complete their close.

Merger model: In some cases, requires a brand new application to be built to consolidate entities together for Global Consolidated reporting.

‘Exclusion Reporting’ is popular to identify comparative reporting excluding acquisitions.

Divestiture Activity Approaches and Key Items Spin-off model: TSA (up to 1 year), Hosting & Managed Services + ‘Carve-out’ applications.

Long-term, Spin-off company will need to buy their own licenses / infrastructure solutions and decide whether to redesign their reporting system.

Sold model: Minimal impact to systems teams, mostly centered on knowledge transfer.

The majority of organizations handle the reporting of Discontinued operations through manual journal entries, however some have implemented business logic to move the data to the appropriate discontinued P&L and Balance Sheet line items.

Trending Topic: Acquisition / Divestitures


Application Redesigns are a trending topic for a few reasons: General Ledger Consolidation / Chart of Account Changes

External Segment Changes

Internal Management Reporting Changes

Refresh / Clean-up due to long-term usage

Reason for the redesign and urgency generally drives client decisions on whether to do the redesign with an upgrade or as a stand-alone project.

Application Redesigns have similar work-streams to a full implementation. The key risk areas tend to be: Chart of Accounts Finalization (if changing), which can impact Statistical Calculations, Historical

Data, Financial Reporting and GL to Target System integration.

Statistical Calculation Definition, Build and Testing – larger risk for major Chart of Accounts changes.

Historical Data Conversion & Reconciliation

GL to Target System Integration – larger risk for GL changes / implementation

Trending Topic: Application Redesign


Professional Growth

2015 Professional Growth Opportunities



June 21 – 25 in Hollywood, Florida

K-Scope is a targeted conference for EPM, BI and Database areas and is run by the ODTUG User Group.

Sessions focus on all areas– Introduction / Overview, Roadmap / Strategy, Advanced Topics / Tips & Tricks, Customer Success Stories. Almost 300 Total Sessions

Finit is a Silver Sponsor at K-Scope and will have a booth Enter promo code ‘FINIT’ and receive $100 off registration

Finit is leading / co-leading 9 sessions on Planning, Essbase, HFM, SDM.

Conferences: K-Scope 2015


Collaborate 2015 Conference April 12 – 16 in Las Vegas

The Collaborate Conference is run by Oracle Applications User Groups

Collaborate covers the entire Oracle product ecosystem and is good for those wanting to go to sessions on other Oracle products in addition to some Oracle Hyperion EPM sessions.

Oracle Open World 2015 Conference October 25 – 29 in San Francisco

Oracle Open World is run by Oracle

Open World covers the entire Oracle product ecosystem and is good for those wanting to go to sessions on other Oracle products in addition to some Oracle Hyperion EPM sessions.

It differs from Collaborate in that it tends to have more strategy and roadmap sessions from Oracle and Technology executives.

Conferences: Open World & Collaborate


Presently, no 11.1.2.4 training sessions exist, but those are expected to be rolled out in 2015.

In the last year, some new courses have been added: FDM EE Administration

Project Financial Planning: Create Projects

HPCM Modeling and Detailed Modeling

Training


11.1.2.4 Financial Close Suite (Friday, March 13) Deep Dive on New Features and Functionality in 11.1.2.4 related to the

Oracle Financial Close Suite of Products.

11.1.2.4 FDM EE (late March 2015) Deep Dive on New Features and Functionality with 11.1.2.4 FDM EE.

Strategies and options for converting from FDM ‘Classic’.

Other Webinars Planned for Q2 2015: 11.1.2.4 Planning Suite

11.1.2.4 Infrastructure & Upgrade Strategies

Introduction to 11.1.2.4 Supplemental Data Manager

HFM Rules Debugging

Upcoming Finit Webinars


Questions?

Email us for a

copy of the slides or

link to the recording.

Finit Contacts

-> Joe Mizerk

[email protected]

919.349.5029

-> Greg Barrett

[email protected]

216.287.9521

->Rob Cybulski

[email protected]

215.880.2025

More EPM Questions?

[email protected]

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