<In

sert

Pic

ture

Here

>

Hyp

eri

on P

rofita

bili

ty &

Cost

Manag

em

ent

Overv

iew M

ay 8

th,

2013

Dan C

arlson

Ora

cle

EP

M S

olu

tion C

onsultant

P: 312.6

51.8

220

E: dan.c

arlson@

ora

cle

.com

2

Today’s

Agenda

�Hyperion Profitability & Cost Management

(HPCM) Overview

�HPCM Demonstration

The Problem

Profitability M

anagement Lifecycle

Cost

Allocations

Profitab

ility

Analy

tics

Profitability

Management

Who a

re the m

ost and least pro

fita

ble

custo

mers

?W

hat pro

ducts

contr

ibute

the m

ost to

the

bottom

lin

e?

Does c

usto

mer

or

pro

duct pro

fit vary

by

regio

n?

What is

the p

rofit contr

ibution m

arg

in o

f a

pro

duct or

a s

erv

ice?

Why a

re c

usto

mers

pro

fita

ble

or

unpro

fita

ble

?W

hy is the c

ost to

sell

or

serv

ice

diffe

rent acro

ss the c

usto

mer

base?

How

do b

usin

ess p

rocesses im

pact

custo

mer

pro

fita

bili

ty?

How

is r

esourc

e c

onsum

ption

affecte

d b

y p

roduct m

atu

rity

?

What is

the im

pact on P

rofita

bili

ty w

hen:

-change in p

rice

-re

assig

nm

ent of re

sourc

es

-in

troducin

g a

new

pro

duct

-change in p

roduct m

ix

4

One System for Profitability Reporting, Profitability

Analytics, and Profitability M

anagement

What?

Why?

Drive Profitable Growth

–M

easure

the

valu

e a

dded b

y a

pro

duct, c

usto

mer,

or

a

segm

ent, to y

our

busin

ess p

rofita

bili

ty

Use Insight to Guide Actions

–Lead p

eople

to take

action b

ased o

n v

erifiable

facts

for

effective d

ecis

ions

Now W

hat?

Discover drivers of Cost and

Profitability

–D

iscover

how

much e

ach a

ctivity c

osts

to s

ell

or

serv

ice a

pro

duct

An integrated system for Profitability Reporting, Profitability Analysis

and Profitability Management will drive the next level of value

creation and competitive advantage for organizations

5

Ora

cle

–E

nte

rpri

se

Pe

rfo

rma

nce

Ma

na

ge

me

nt

Hyperion Connects Management Processes

Com

mon I

nte

gra

tion &

Analy

sis

La

yer

Data

Qualit

y &

Consis

tent

Dim

ensio

ns

Hyperion E

ssbase

Com

mon R

epo

rtin

g &

Inte

raction

Str

ate

gic

Pla

nnin

g

Fin

ancia

l C

lose

Pla

nn

ing &

Fo

reca

stin

g

Pro

fita

bili

ty M

an

ag

em

ent

Exce

l

XM

L

Oth

er

Syste

ms

People

Soft, O

racle

, S

AP

, C

usto

mD

ata

Ware

house

Data

Mart

•Create & Manage

Dim

ensions&

Hierarchies

•Add any custom

Measures

•Deploy the

Application

Create & Manage the

Business Model:

•Define the Stages

•Define the Drivers

•Define the Allocation

AssignmentPaths

•Automatically generate

the CalcScripts

•Load Cost, Revenue

& DriverData

•Calculate Model &

Store Results

•Validate the Model

•Generate the

Reporting Cube

Reporting Cube with

Allocation Genealogy:

•Profitability

Analysis

•Cost & Revenue

Contribution

Analysis

The Profitability Analysis Process with HPCM

Metadata

Management

Allocation

Model

Definition

Cost & Revenue

Allocation

Calculations

Profitability & Cost Analysis

Enterprise

Perform

ance

Management

Architect

Hyperion

Profitability &

Cost

Management

Essbase

Calculation

Cube

(BSO)

Essbase

Reporting

Cube

(ASO)

Dashboards,

Financial Reports,

Excel,

Smartview

Dim

ensions

Hierarchies

Attributes

Stages

Drivers

Assignments

8

Today’s Agenda

�Hyperion Profitability & Cost Management

(HPCM) Overview

�HPCM Demonstration

�S

etu

p the M

odel / D

efine the A

llocation S

tages

(Dim

ensio

ns)

�D

efine the D

rivers

�D

efine the A

llocation A

ssig

nm

entpath

s

�Load D

ata

and C

alc

the M

odel

�V

alid

ate

the R

esults

�A

naly

ze R

esults u

sin

g:

–T

raceabili

ty M

aps

and G

enealo

gy R

eport

s

–Levera

ge C

om

mon E

PM

Report

ing &

Analy

sis

Tools

IT

Sa

larie

s

Fa

cili

tie

s

Re

nt

Au

dit

Sa

larie

s

IT

De

skto

p S

up

po

rt

Ch

eckin

g A

ccts

East 5

7th

St

Ch

eckin

g A

cct

Ea

st 5

7th

St

AT

M

Sta

ges:

Dimensions:

1:

Ge

ne

ral

Led

ge

r

=Dept

+Account

2:

Activity

=Dept

+Activity

3:

Pro

du

ct

=Product

4:

Bra

nch

=Branch

5:

Co

st

Ob

ject

=Product

+Branch

+Channel

An Example: Using HPCM to Assign Costs

to Products, Activities, and Channels

Sta

ges

(Dim

en

sio

ns)

Dri

vers

& A

ss

ign

men

t P

ath

s

GL

$$

$

$

$

$

$

$

$

$ $

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

% o

f T

ime

Sp

en

t

# P

Cs

in U

se

# o

f T

ran

s

# o

f T

ran

s

Even

S

plit

Sq

uare

F

eet

$$$$ $

$$$ $$$$

$$$

$$$

$$$

$$$

(pro

duct

dem

onstr

ation)

11

•Packaged Profitability functionality

•C

om

pute

s P

rofita

bili

ty f

or

Segm

ents

, P

roducts

,

Custo

mers

, C

hannels

•Pre-Built Framework for

pro

fita

bili

ty m

odelin

g:

•P

re-b

uilt

Measures

dim

ensio

n

•S

upport

for

Multip

le C

ost A

llocation m

ethodologies

•P

re-B

uilt

Validation

report

ing

•G

raphic

al In

tera

ctive Traceability M

aps

•Genealogy Reporting s

how

s flo

w fro

m a

ny s

tage to a

ny

sta

ge

•A User-Driven application

•M

easure

s, A

llocate

s a

nd A

ssig

ns C

ost and R

evenues v

ia

User Defined Rules

•F

inance User-facing Administration

•P

rovid

es Scenario Modeling for

Decis

ion M

akin

g

•Tightly integrated with the full Hyperion EPM Suite

•Shared Data and Metadata v

ia E

PM

A

•S

hare

d R

eport

ing T

ools

like Financial Reports, Web

Analysis & MicroSoftOffice

•P

roven T

echnolo

gy S

tack –

Built

on E

ssbase

Hyperion Profitability and Cost Management