finit solutions getting the most out of hfm - he to hfm webinar session 2

The Finit Solutions Series

Hyperion Enterprise to HFM:Design Considerations andDesign Considerations and Best Practices (Part II)

August 19 2009August 19, 2009

Presented by Rob Cybulski

www.finitsolutions.com


About Finit Solutions


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HE to HFM: Design Considerations & Best Practices Part II

Finit IntroductionThe Finit Solutions Series

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

Financial Consolidation and Reporting

– Financial Management (HFM)

– Hyperion EnterpriseHyperion Enterprise

– BI+ Reporting Tools

Data Integration

– Financial Data Quality Management (FDM)

– Oracle Data Integrator (ODI)

– Data Integration Management (DIM)

Planning and Business Intelligence

– Planning

– Essbase

www.finitsolutions.com‐ 3 ‐

ssbase

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Finit’s HE to HFM ExpertiseThe Finit Solutions Series

• Many of Finit’s consultants are former Hyperion Enterprise administrators and

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have been working with Hyperion Enterprise since the early 1990's. Finit’s two founders were Big 6 Hyperion Enterprise consultants in the late 1990’s.

• Finit’s certified HFM consultants design and implement HFM applications, upgrades, redesigns, and conversions from Hyperion Enterprise for middle market companies to some of the largest companies on the Fortune 500.

• Our combined expertise in HE and HFM, as well as our accounting and finance‐based backgrounds, enable us to quickly understand what clients are currently g q y ydoing in HE, translate that into an HFM application, and take advantage of the additional features and functionality available in HFM.


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Finit’s Client ServiceThe Finit Solutions Series

W t k li t i i lWe take client service very seriously.

Our methodology of efficiently developing effective solutions and exceeding expectations on every

project has resulted in a 100% client satisfaction rate at more than 100 clients.


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Some Finit ClientsThe Finit Solutions Series

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About the PresenterThe Finit Solutions Series

Rob Cybulski([email protected])

• Founder of Finit Solutions• More than 10 years of experience• More than 10 years of experience

with the Hyperion suite• Frequent presenter at Hyperion

fconferences• Serves as the Hyperion Enterprise,

HFM, and FDM Domain Lead for h O l H i S i lthe Oracle Hyperion Special Interest Group


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How to Ask a QuestionThe Finit Solutions Series

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Purpose of the Webinar


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Purpose of this SessionThe Finit Solutions Series

• Project planning for an implementationD il h diff j h

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– Detail on the different project phases

– Key requirement / design decisions that will impact j t ti iproject timing

– Critical path items

• End user training options

• Implementation resource commitments


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Overview of Part I SessionThe Finit Solutions Series

• Geared towards organizations on HE

• To demonstrate functionality and dimensionality• To demonstrate functionality and dimensionality differences between HE and HFM

• To detail application design differences and• To detail application design differences and considerations, including:– Why you won’t have to do rollovers at the end of each yearWhy you won t have to do rollovers at the end of each year

– When / why to use Custom dimensions

– Options for handling constant rate foreign currency analysis

– Chart of account considerations


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Overview of Part I SessionThe Finit Solutions Series

To obtain a link to the Part I session recording, please email us at:please email us at:

[email protected]



HE to HFM Migration Planning


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Implementation Work‐StreamsThe Finit Solutions Series

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Project Management Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:Project planning and management is a key component to maintaining the project schedule and to identify and resolve issues quickly. This work‐stream will start immediately at the inception of the project and continue throughout the project

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project and continue throughout the project.

Deliverables during this work‐stream:– Project Plan creation and regular updates. The project plan will help drive resource allocation

and task managementand task management.– Regular project team status meetings to review detailed project task status.– Regular steering committee status meetings to review high‐level project status and direction.– Risk assessment reviews. Risk assessment reviews throughout the project help determine how

future tasks may be impacted based on current results. y p– Communication strategy. The project management team will be responsible for organizing all

communications with end users and project teams. Consistent communication will be necessary to help users with the changes associated with moving to a new system.

C l i MilCompletion Milestone:– The project management work‐stream will occur throughout the project. It is different than the

other tasks as it will not have a specific completion date.


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Design & Requirements Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:The requirements gathering and application design activities involve understanding the requirements for the new system and then finalizing the application design to best achieve them.

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Deliverables during this work‐stream:– Detailed list of requirements including required level of detail for chart of accounts (trial

balance and supplemental / statistical detail), required reporting requirements (Legal, Management Segment Tax etc ) required data requirements (amount of historical data dataManagement, Segment, Tax, etc.), required data requirements (amount of historical data, data integration approach) and process requirements (local GAAP to US GAAP / IFRS adjustments, corporate journal entries, etc.).

– Completion of application design sessions, which is when the HFM and FDM applications are defined. The design determines what application components and dimensionality will be used and to what extentand to what extent.

– Detailed design document.– Review and finalization of the application design and future process.– Some clients include a prototype in this phase to assist with the review and finalization of the

designdesign.

Completion Milestone:– Application Design is finalized and ‘signed‐off’ by all parties.


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Installation Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:Installation will consist of the architecture design, environment setup, and installation of all hardware and Hyperion software components in the necessary environments.

Deliverables during this work‐stream:– Environment architecture diagrams will be created. These will be used as the basis for the

procurement and setup of all necessary hardware components and the reference for the installationinstallation.

– All necessary hardware will be ordered and set up in the appropriate environments.– Oracle Hyperion product installation on the environments will be completed. If multiple

environments will exist, the installation can be done at the same time or spread out. – Installation documentation and an activity log detailing the steps performed will be created. y g g p p

Completion Milestone:– All required environments have completed the installation activities. At least one primary

environment is completed and ready for the application build work‐stream to begin.


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Application Build Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:Once the system requirements and design have been fully defined, the actual build of the Hyperion applications can begin.

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Deliverables during this work‐stream:– HFM Metadata Build (App settings and dimension members)– HFM Rules Build (system logic)

‘ ’ ild ( b f d id )– HFM ‘Documents’ Build (web forms, data grids, system reports, etc.)– HFM Process Management Set up– FDM Metadata Build (App settings, control tables, locations, validation rules)– Reports Build (Smart View, BI+ Financial Reporting, BI+ Web Analysis, etc)

S i B ild (HFM W k R FDM)– Security Build (HFM, Workspace, Reports, FDM)– Application Unit Testing. Unit testing is performed by the project team to ensure the individual

application items are correctly built as required and are performing correctly. This testing takes place prior to end users accessing the system.

Completion Milestone:– Each product has its own milestones (HFM, FDM, Reports). The build is complete when all

required items are built and unit tested. The only remaining application items that should be added after the build phase are those that come out of further testing or are new

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requirements.

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Data Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:The data work‐stream consists of two major activities: historical data conversion and data integration. Both of these activities are dependent upon the HFM metadata build being complete.

Deliverables during this work‐stream:– Historical data conversion and reconciliation. All historical data from Hyperion Enterprise will

need to be loaded and reconciled to the required ‘validation points.’ Historical data reconciliation sheets for audit controls– Historical data reconciliation sheets for audit controls.

– Data integration set up for each required site / location. This includes the sourcing of the financial data via flat files or direct connection and the source system‐to‐HFM mapping tables. If necessary, triangulation will be performed and completed in this work‐stream.

– Reconciliation sheets for each data integration site comparing the result in HFM (via FDM) g p g ( )against what was reported in Hyperion Enterprise.

Completion Milestone:– All Hyperion Enterprise historical data is reconciled in HFM.– All required sites / locations can successfully load their source data through FDM into HFM.


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Training Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:The training work‐stream consists of creating end user training materials, applications, and exercises. It also consists of delivering end user and power / support user training to the appropriate personnel

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personnel.

Deliverables during this work‐stream:– End user training materials, including application details and exercises, will be created. Training

will include an overview of the application and process‐specific informationwill include an overview of the application and process specific information.– Training applications will be created in which users will perform their training exercises during

and after the class sessions.– A feedback survey will be created to distribute to end users after training to measure the

effectiveness of training and their understanding of and comfort level with the new material.– All required end users will be trained on HFM, FDM and all reporting tools. – All required power / support users will be trained on HFM, FDM and all reporting tools.

Completion Milestone:– All required users have been trained on the applications. Their understanding is sufficient that

they can perform their close activities during the parallel testing work‐stream.


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Testing Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:The testing work‐stream encompasses functional testing activities (pilot / user acceptance and parallel testing) and technical testing activities (connectivity, performance / stress testing, disaster & recovery testing) This work stream also includes all required compliance and documentation

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recovery testing). This work‐stream also includes all required compliance and documentation requirements that are necessary to conform to its internal controls requirements.

Deliverables during this work‐stream:– Connectivity testing (optional) results and remediation plansConnectivity testing (optional) results and remediation plans.– Performance / Stress testing (optional) results and hardware / configuration action plans.– Disaster & recovery procedures document.– Pilot / UAT results and application action plans.– Parallel testing results and end user / application remediation plansParallel testing results and end user / application remediation plans.

Completion Milestone:– Any network or performance issues encountered have been corrected.– A successful disaster & recovery test has been completedA successful disaster & recovery test has been completed.– The Pilot / UAT users can successfully complete their close activities.– All end users are able to successfully complete their close activities by the end of the parallel

tests.


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Roll‐Out Work‐StreamThe Finit Solutions Series

Work‐Stream Overview:

Rollout consists of cutting over from the existing Hyperion Enterprise system and going ‘live’ on the new HFM application(s)new HFM application(s).

Deliverables during this work‐stream:

– All end users cut over from existing systems and processes and perform their closing activities and processes inside the new HFM application(s).

– A project wrap up / roadmap document will be created identifying any items that were determined not to be in scope and next steps for delivering them.

Completion Milestone:

– You are live on the new Hyperion applications!


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Migration WorkflowThe Finit Solutions Series

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Project Timing


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Timing – How long will it take?The Finit Solutions Series

There are a number of factors that impact how long a conversion to HFM should take. Some of these include:

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• To what extent is the design of your HFM application different from your Hyperion Enterprise application?

– The ‘lift & shift’ approach results in faster implementation timeframes, but does not take full advantage of HFM’s features and functionality.

– The conversion to HFM is a great opportunity to re‐evaluate your The conversion to HFM is a great opportunity to re evaluate yourconsolidation process and your reporting and analysis needs. Items such as expanding your chart of accounts detail, collecting new detail (such as Product or Region) and building in process management can significantly increase the value you gain from converting to HFM. However, these items also extend the implementation timeline.


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• Are users interacting with HFM in a way that is similar to their old process?

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p– Is the data load and sign‐off process the same?

– Are there new data requirements in the form of web forms, FDM templates, or journals that were not previously required?or journals that were not previously required?

– Are there new data validations that must be passed?

– To what extent is process management being used?

All of these items will affect implementation timelines because they will take time to build, test, document, and train users on them.

It i i t t t id h h d i i t E thIt is important to consider process changes when designing a new system. Even the best‐designed HFM application will not provide optimal benefits if the process behind it is inefficient or puts the system at risk of inaccuracies.


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• How much historical data do you intend to migrate?– The more years of data that must be migrated, the longer it will take.

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– Finit has found that the further back you go into historical data, the more ‘surprises’ you find. Reconciling more recent years of data is typically easier than older years.y

–A relatively non‐technical item such as whether prior periods are re‐consolidated when logic changes are made can dramatically impact timing.

• Will there be new users?• Will there be new users?– For companies shifting from a corporate‐controlled process to an end‐user driven process, more time must be allotted for training, end‐user testing, and parallel testsparallel tests.

– If all HFM users have had prior exposure to a similar process in Hyperion Enterprise, the learning curve will be flatter and implementations will be shorter


shorter.


Critical Path Items


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Manage the BottlenecksThe Finit Solutions Series

At the beginning of an HFM implementation, all tasks and resources concentrate on the application design and the HFM metadata build. Once the HFM

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metadata is built, many different work‐streams begin to overlap (historical data conversion, data integration, report development, HFM rules development, etc.). It is important to develop a resource allocation plan that will allow for the multiple work streams to progress simultaneouslymultiple work‐streams to progress simultaneously.


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Critical Path ItemsThe Finit Solutions Series

• Installation of Products

– Finalizing an infrastructure design and ordering and configuringFinalizing an infrastructure design and ordering and configuring servers are prerequisites to performing the installation and should be a high priority when the project is started.

– The application build cannot begin until the installation work‐stream is complete.


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• Chart of Accounts Finalization– A finalized chart of accounts (which may encompass both the Account and the

Custom dimensions) is required in order to begin the HFM application build and is a key dependency of historical data conversion, reporting, training, testing and FDM data integration (“Triangulation”) activities.

Th ti iti li t d b t til th h t f t i f ll d fi d– The activities listed above cannot progress until the chart of accounts is fully defined. Therefore, it is critical to finalize the chart of accounts by the end of the requirements phase.

– There is a moderate degree of risk that major chart of account modifications may beThere is a moderate degree of risk that major chart of account modifications may be made once the chart of accounts is built inside HFM. It is important to get documented consensus on the chart of accounts’ level of detail and naming convention to ensure that modifications do not continue to be made once the

li ti b ild h b i th j t d l d kapplication build phases begin, as those can cause project delays and rework.

– Finit recommends considering an application prototype following the design session to help facilitate the design review and obtain the necessary consensus to begin the application build


application build.

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• Historical Data Conversion– Historical data conversion is very difficult to predict in terms of duration. Loading and

reconciling the historical data for the first month will take longer than subsequent months. During this process, HFM metadata and rules will potentially need to be modified, as it will be the first time the HFM application is tested on a full data set.

Th hi t i l d t i t b i til th HFM li ti i– The historical data conversion process cannot begin until the HFM application is built; however, Finit strongly recommends that you develop a data conversion plan during the design phase. Historical data conversion is one of the main causes of implementation delays, and you cannot go live until all of the necessary historical data is migrated.

– Historical data conversion will take longer and require more involvement when the chart of account level of detail is modified. This is due to historical data not being t d t th l l h d t ill b b itt d i f dstored at the same level as where data will be submitted going forward.


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• Hyperion FDM Data Integration – The data integration work‐stream, which consists of setting up each division to load

and map general ledger data into HFM, is likely to be the most complex implementation task. This is due to the fact that each location can be unique in terms of how they use FDM, whereas most sites will interact with HFM the same wayway.

– In cases where FDM was already used to load data to Hyperion Enterprise, this process will be simpler because the previously‐used FDM import formats and maps can be used as the basis for those that will be used with HFM. This situation is a good candidate for triangulation, which helps convert GL‐to‐HE maps into GL‐to‐HFM by using the historical data conversion HE to HFM mapping table as illustrated here:


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Best Practice ‐ DataThe Finit Solutions Series

• Outside of the design of HFM, the data tasks are the most critical part of the implementation An organization can go live if a few reports are not built;implementation. An organization can go live if a few reports are not built; however, an organization cannot go live if some locations are unable to load their source data to HFM or if historical data in HFM does not match previously‐reported balances.

• The data tasks heavily affect end users because these tasks relate to historical financial information and the process users will follow to complete their closing process.

• The data tasks can be difficult to predict in terms of duration. As a result, it is best to assume that it will be more difficult than anticipated.

• The data plan should be created during the design session after understanding how the HFM design will impact the data tasks.



Training Options


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In‐Person versus Web‐BasedThe Finit Solutions Series

In‐person, classroom‐style training is by far the most effective method for conducting end‐user training. Training for users that will load data need training on FDM, HFM, Reports and Smart View and classes structured with exercises can run , , pbetween 1.5 to 2.5 days.

Pros

• The training is delivered and received more effectively face to face• The training is delivered and received more effectively face‐to‐face.• Users are more likely to follow along with exercises and ask questions.• Requiring attendance at a training class reinforces the importance of the

implementation within the organization. It can also be a good opportunity to p g g pp ydiscuss timelines and answer questions about the new process.

• For users for whom English is a second language, web‐based training may be too difficult to follow.

Cons• More expensive and more time‐consuming than web‐based training.• Requires a lot of logistics coordination to ensure availability of laptops,


Requires a lot of logistics coordination to ensure availability of laptops, connectivity, delivery of training manuals, etc.

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Does ‘Train‐the‐Trainer’ Work?The Finit Solutions Series

Many companies like to adopt a ‘train‐the‐trainer’ approach in which the consultants train a handful of administrators or power users who then, in turn, train the end‐users. Trainers must gain a comfort level with the products sufficient to g plead and teach others on them.

Pros

Th t i i i d li d b th d ill b ki ith i f d• The training is delivered by someone the end‐users will be working with going forward whenever there are questions or issues.

• This forces the trainers to ‘really’ know the process and the application.

ConsCons• In order to lead an effective training class, the trainer must be a true expert. It is not

enough to be well‐versed in the training materials; the trainer ideally should be able to field any question that the end‐users have. Within the timeframe of an implementation, it is challenging for someone to reach this level of expertise.it is challenging for someone to reach this level of expertise.

• The trainers may not have any prior experience leading training classes and may not have developed strong presentation skills. This will reduce the effectiveness of the training.

• The trainers will probably be heavily involved in other aspects of the implementation, and progress on those other items will slow down while the trainers are learning and


and progress on those other items will slow down while the trainers are learning and delivering the training.

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When to Conduct TrainingThe Finit Solutions Series

Whether you decide to conduct in‐person or web‐based training and whether or not you use a ‘train‐the‐trainer’ approach, the following should be considered when scheduling training:

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• Training must be conducted before Parallel testing begins so that users are knowledgeable enough about the process to complete their tasks.

• Training must be conducted late enough in the application build phase that all g g pp p(or nearly all) of the items that the end‐users will utilize during their close process are complete. Ideally, you want the end‐users to be able to use their FDM maps, data validation checks, web data entry forms, journals, reports, etc. during training.g g

• Historical data validation can be continuing when training takes place.• Reports development can be continuing when training takes place as long as

there are a few basic reports to use during training.Th f b l i h i i f d f k b f ill• The perfect balance is to have training performed a few weeks before users will begin accessing the application for testing to keep it fresh in their minds.



Resource Allocation


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Resource AllocationThe Finit Solutions Series

An HFM implementation will require some external assistance. The amount of external help needed is based upon a few key factors:

– Size, scope and timelines of the project.

– Number and dedication % of client resources. • The more resources and the more dedicated time client members have, the less external help will be required.

– The training received on the new products and the amount of experience with the current tools.

• It is highly recommended that the client project members attend• It is highly recommended that the client project members attend training prior to the project beginning. The more familiar they are with Hyperion Enterprise and the more training they have on HFM, the less external help will be required.


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Client‐Led TasksThe Finit Solutions Series

The following activities are those that most clients typically take ownership of:

– Build• Reports BuildData– Data

• Historical data conversion and reconciliation– Trainingg

• Training Delivery – Testing

C ti it t ti• Connectivity testing


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Shared TasksThe Finit Solutions Series

The following activities are those that most clients typically jointly share ownership with external resources of:

P j t M t ( li t t k f ll hi f thi t k)– Project Management (some clients take full ownership of this task)– Requirements Gathering (some clients take full ownership of this task)– Build

• HFMMetadata Security ‘Documents’ – As the client team members becomeHFM Metadata, Security, Documents As the client team members become more familiar, they can take on more ownership of tasks in this area.

• Unit Testing activities – testing is a great opportunity for clients to be actively involved.

Data– Data• Data integration activities.• Historical data conversion set up.

– Testing• Pilot / UAT testing support.• Parallel testing support.


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External‐Led TasksThe Finit Solutions Series

• The following activities are those that most clients typically need external resources to take the lead on:

D i– Design• The design activities are critical and most clients are not able perform the steps right after learning how the new products work.

– Installation• With all required components and moving parts, most clients need assistance on the first install to learn.

– Build• HFM Rules – HFM rules are written in VB script and it takes a good• HFM Rules HFM rules are written in VB script and it takes a good understanding of HFM’s dimensionality to write the logic. As a result, this is something most clients need assistance with initially.

– Training• The development of the training guide and exercises can benefit from those that• The development of the training guide and exercises can benefit from those that have done many training sessions.

– Testing• Testing scenario development, instructions, and results review.



Contact and Future Webinars


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Upcoming WebinarsThe Finit Solutions Series

Getting the Most out of HFM:Intercompany Matching & Eliminations

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On September 16, you will learn how to use HFM’s intercompany features and functionality not only to make your consolidation process more efficient, but also to provide detailed intercompany information to both end‐users and management. We will discuss the implications of various metadata settings andmanagement. We will discuss the implications of various metadata settings and will demonstrate the use of grids and intercompany matching reports to analyze intercompany data.

Getting the Most out of FDM:Getting the Most out of FDM:FDM Logging

On October 21, you will learn about the different types of logging features in FDM that can be used to track the full data audit trail and the full detail aroundFDM that can be used to track the full data audit trail and the full detail around all activities performed in the application. This webinar will provide you with the tools to better leverage the FDM logging capabilities and to place tighter controls on your data and FDM application.


To register, go to www.finitsolutions.com/Insights_Webcast.html

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Finit ContactsThe Finit Solutions Series

Q ti ?Questions? Rob Cybulski

[email protected]

215‐880‐2025

Email us for a

215 880 2025

Ed DeLise (VP of Sales)

d li @fi i l i

copy of the slides or

l k h d

[email protected]

678‐296‐3611

link to the recording.


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