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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Introduction to Oracle
Hyperion Enterprise Planning
Applications
John O’Rourke – VP, Product Marketing
July 2013
DARK REALITY
93% of finance managers
are drowning in spreadsheets
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Topics
 Challenges in Enterprise Planning
 Introduction to Hyperion Enterprise Planning Suite
 Customer Successes
 Summary & Questions
4
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Challenges in Forecasting
40% Can Forecast Only 3 Months Ahead
1 month in advance
40%: 3 months or less
12%
3 months in advance
28%
6 months in advance
29%
12 months in advance
20%
More than 12 months in advance
5%
Not sure
7%
0%
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20%
40%
Finance Managers Drowning in Spreadsheets
93% Using Spreadsheets in Financial Processes
Process
% Using Spreadsheets
Financial Planning and Budget Control
75%
Financial Reporting and Analysis
74%
Scenario Planning
40%
Tracking KPIs
53%
Monitoring Profitability
59%
Other
3%
Source: Performance Management: An Incomplete Picture. Study carried out by Dynamic Markets for Oracle Corporation, April 2011
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Business Planning Challenges
Long-Term
Planning
M&A
Treasury
Plans
 Time – cycles take too long, missed
opportunities and obsolete plans
 Quality – data integrity, lack of
Senior Management
standardization and communication
 Flexibility – lack of responsiveness to
Annual Plan &
Forecast
Headcount
Plans
FP&A
Departmental
Plans
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changes
 Cost – many wasted resources,
questionable benefits
Revenue &
Cost Models
Potential Needs to be Unlocked
 Under-performing Products
 Under-served Customers
 Under-utilized Staff, Assets
 Excess Cash
 New Markets, Products, Services
 Inefficient Business Processes
 IT Complexity
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Strategies to Unlock Business Potential
GOALS
ALIGNED
OBJECTIVES
ACCURATE
FORECASTS
Performance
Management
Platform
ACCOUNTABLE
ENTERPRISE
CONFIDENT
CLOSE
RESULTS
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion EPM Applications
Plan for Growth, Report with Confidence, Accelerate Business Value
User Workspace, Reporting
Strategy
Management
Planning and
Forecasting
Profitability
Management
Financial Close
and Reporting
Enterprise Performance
Management Platform
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
 Broadest and Deepest EPM
Application Coverage
 Most Integrated EPM Suite
 Data, Meta Data and Process
integration with Oracle, SAP ERPs
 Best in Class BI Integration
 Centralized Enterprise Dimension
Management for EPM, ERP, BI
Topics
 Challenges in Enterprise Planning
 Introduction to Hyperion Enterprise Planning Suite
 Customer Successes
 Summary & Questions
11
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
The Enterprise Business Planning Process
Run models based on
key strategies to set
targets
Long-term strategic
plan
Annual
budget / plan
Validate operational
feasibility to financial
plan
Validate
operational
feasibility
Seed targets to annual
operating plan and
start annual process
Evaluate
workforce and
capital
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Monthly /
rolling
forecast
Evaluate resource and
capital requirements
Assess and Manage Risk
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Update forecast with
latest budget and
actuals
Update longterm strategic
plan
Driving Accurate Forecasts
Best Practices
Metrics for Success
Align strategic and
financial planning
 Days/weeks to complete the strategic plan
Shorten the annual
budget cycle
 # of days/weeks/months to complete the annual
budget, # of FTEs to complete the annual budget
 % of time spent on data collection vs. analysis
 Planning costs as a % of revenue
Employ a rolling forecast
 Frequency of rolling forecast, # of quarters in
rolling forecast
 % forecast accuracy
Leverage driver-based
planning & forecasting
 # of budget drivers
Drive planning across the
enterprise
 # of Finance and LOB managers participating in
the planning/forecasting process
 Frequency of driver updates
 # of metrics visible to managers to actively track
performance against budget
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World Class Benchmark
Strategic Planning, Budgeting & Forecasting
Best
Practice
Average
Laggard
Days required to complete the strategic
plan
15
64
120
Cycle Time to Prepare Budgets
45
60
75
% of budgetary cycle time spent on nonvalue adding work like data collection &
validation
20
34
50
# of business days to create financial
Source: Hackett Group
forecast
5
16
30
Metric
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Oracle Hyperion Enterprise Planning Solutions
Predictive Modeling and Simulation
Specialized Modules
Plan for Profitable
Growth
Long Term
Financial
Planning
Workforce
Planning
Capital
Asset
Planning
Project
Financial
Planning
Planning, Budgeting and Forecasting
Middleware
Database
Systems and Hardware
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Profitability
and Cost
Management
Plan for Profitable Growth with Enterprise Planning
Best Practices
Shorten the annual budget cycle
Employ a rolling forecast
Leverage driver-based planning & forecasting
Drive planning across the enterprise
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Integrate Strategic Financial Planning
Measure Financial Impact of Key Business Strategies
CFO
Corporate
Finance
Treasury
Corporate
Development
 Long Range Planning
 Covenant/Ratio Analysis
 Mergers & Acquisitions
 Internal Investment
Decisions
 Credit Ratings
 Valuation Analysis
 Leverage/Capital Structure
 Divestitures
 Strategy Screening
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 Dividend Policy
Strategic Financial Modeling
Assess Full Financial Impact of Corporate Strategy
 Integrated financial statements
 Accounting integrity
 Consolidate complex entity structures
 Evaluate strategic projects
 Simulate effects of M&A
 Debt Scheduling
 Optimize capital structure
 Calculate shareholder value
 Unlimited scenarios
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Monte Carlo Simulation
Measure the Effects of Uncertainty
 Assign probability distributions to uncertain
assumptions
 Run thousands of simulations
 Analyze range of outcomes and probabilities
 Assess model sensitivities
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Plan for Profitable Growth with Enterprise Planning
Best Practices
Align strategic and financial planning
Employ a rolling forecast
Leverage driver-based planning & forecasting
Drive planning across the enterprise
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Centralized Financial Planning
Accelerate the Planning and Forecasting Process
 Best-in-class solution for financial planning,
budgeting & forecasting
– Align top-down and bottom-up
– Consistent assumptions
– Common allocations & calculations
 Pre-built Capital Asset, Project and
Workforce planning modules
 Powerful workflow and process management
 Leverages Essbase – powerful reporting and
analysis
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Guide Users Through Submission Process
Accelerate Budget Validation and Avoid Bottlenecks
• Configurable promotional path
• Includes additional approvals and authorization
thresholds
• Supports hierarchy-based, matrix-based and
dynamic promotional paths
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
•
•
•
•
•
Alerts and progress monitoring
Notify, delegate and manage out of office
Planning unit and process status reports
Approvals honored on rules execution
Groups as owners
Visual Analysis of the Planning Process
Streamline and Improve Planning
• Interactive financial views & ad-hoc with
forms and charts
• Drillable Task Lists
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• Financial Statements & charts together
• System simplification for wider deployment
Enabling Seamless Metadata & Data Integration
Oracle Hyperion Financial Data Quality Management
Data & Metadata
Oracle EBS,
PeopleSoft, JDE,
Fusion APPs, SAP R/3
Metadata
Financial Close
Planning &
Forecasting
Data Warehouse
Data Mart
Web Interface
Financial Reports
Other
Systems
Data
File
Excel
XML
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Strategy
Management
Profitability
Management
Drill-Through & Write-Back
Microsoft Office
Drill-through to General Ledger
Insight into Action in a Single System
Hyperion Financial Management
Hyperion Planning, Oracle Essbase
Oracle EBS,
PSFT, JDE, SAP
Hyperion Financial Data
Quality Management
Oracle Account Analysis
and Drill-Down for both
Actual and Budget
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Plan for Profitable Growth with Enterprise Planning
Best Practices
Align strategic and financial planning
Shorten the annual budget cycle
Leverage driver-based planning & forecasting
Drive planning across the enterprise
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Rolling Forecast is Gaining Popularity
Year X
Q1
Q2
Year X + 1
Q3
Q4
Q1
Q2
Q3
Q4
1st review
2nd review
3rd review
4th review
KEY:
= Forecast
= Actuals
Excerpted by permission of Harvard Business School Press from Reinventing the CFO: How Financial Managers Can
Transform Their Roles and Add Greater Value. Copyright 2006 Jeremy Hope; all rights reserved.
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Flexible Planning and Forecasting
Rolling Forecast Wizard
Administrator
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End User
Integrated Predictive Planning Capabilities
Leverage Statistical Forecasting for Improved Accuracy
 Functional Summary
– Statistical prediction scenarios built into Oracle
Hyperion Planning
– Uses Oracle Crystal Ball Predictor to analyze
historical data and project trends and patterns
into the future
 Benefits
– Enable business users to leverage statistical
forecasting techniques
– Improve accuracy of forecasts and plans
– Automatically forecast best and worst case
scenarios in addition to base case
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Plan for Profitable Growth with Enterprise Planning
Best Practices
Align strategic and financial planning
Shorten the annual budget cycle
Employ a rolling forecast
Drive planning across the enterprise
30
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Defining Inputs for Drivers with Profitability and Cost
Management
Improved Insights into Profitability by Customer, Product…
 Packaged application that enables:
– Accurate measurement, allocation and
management of costs and revenues
– Cost and profitability modeling by business,
product, and customer segments
– Profitability measurement using cost
decomposition, consumption-based costing,
and scenario analysis
 Designed for the business user
 Leverages existing IT investments
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Connect Financial and Operational Planning
Demand Management
Strategic Financial
Planning
• Create long-term plan
• Manage cash flow and value
creation
• Analyze M&A, divestitures and
strategic alliances
• Evaluate financing options
• Optimize capital structure
Profitability and Cost
Management
Annual Plan
Budget
Financial Forecast
Budgeting & Financial
Planning
• Manage annual budgeting
• Manage periodic forecasting
• Plan revenues, COGS and
margins
• Run what-if scenarios across
finance and operations
• Plan workforce and capital
assets
• Identify cost and profit drivers
• Allocate costs and revenues to
departments, activities and
products
• Calculate and analyze product and
customer profitability
• Perform root cause analysis
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Sales & Operations
Planning
• Balance demand and supply
• Deliver consensus planning
across sales and operations
• Maintain plan in near real-time
to respond to variability
• Monitor operations
performance
• Sense demand based on near real-time
sales capture
• Manage statistical forecasting and
demand modeling
• Plan demand across multiple
dimensions
• Collaborate on consensus demand
forecast
Supply Chain Planning
• Plan supply based on constraints
• Manage production and distribution
planning
• Determine safety stock levels and order
policies
Network Optimization
Consensus Plan
Sales Volume
Operating Volume
• Optimize supply chain network based
on flexible objective functions
• Simulate contingency and scenario
planning
• Simulations to support S&OP analysis
Plan for Profitable Growth with Enterprise Planning
Best Practices
Align strategic and financial planning
Shorten the annual budget cycle
Employ a rolling forecast
Leverage driver-based planning & forecasting
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Align Detailed Workforce, Capital Asset and
Project Plans to Overall Expense Plan
Financial Plan
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Workforce Plan
Capital Asset Plan
Project Financial Plan
Detailed Headcount, Staff
Expenses, Salary &
Compensation
Detailed Depreciation,
Asset Purchase/Sell,
Asset Expenses
Detailed financial planning
for contract, capital and
indirect projects
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Project Financial Planning
Alignment of Detailed Project Financials with Overall Financial Plan
 Functional Summary
– Pre-defined dimension members, forms,
business rules, menus, task lists, smart lists,
validation rules & project planning plan types
– Integrated Human & Capital Resource
Management
– Covers Contract, Capital, Indirect projects
 Applicable Across Industries
– Aerospace & Defense, Utilities, Oil & Gas,
Construction, Natural Resources,
Manufacturing, Retail
– IT/HR projects in any industry
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Workforce Planning
Improve Headcount, Salary and Compensation Planning
 Packaged solution for quick
implementations
 Plan salary and other
compensation at any level
 Add, edit and delete
employees and new hires
 Pre-defined or custom calculations
for taxes, etc.
 Integrates actuals
from HR systems
 Test scenarios in real-time
for impact analysis
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Capital Expense Planning
Improve Planning the Acquisition, Lifecycle Management, and
Retirement of Capital Assets
 Packaged solution
 Customizable
 Plan for asset purchases and
asset related expenses
 Transfer, retire, and improve
assets
 Directly linked to main plan
 Interfaces with external systems
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Planning at the Speed of Business
Leveraging Engineered Systems
 Highly accelerated planning cycles
–
Re compute cubes in Minutes vs. Days
–
More users, more granular scenarios, more powerful
what-if modeling
 Planning across the enterprise
Oracle Essbase
–
80X Faster Reads, 20X Faster Writes, and 5X more
Concurrency
–
Deeper structures, more dimensions, and complex
allocations
–
Lower TCO through application consolidation
In-Memory Cache
Lock
Manager
Smart Storage
Manager
 Fully certified to work with Oracle Hyperion
Planning
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Coming Soon – Planning in the Cloud
 Oracle Planning and Budgeting Cloud Service
 What it is:
– Software-as-a-Service offering for Planning and Budgeting
– Based on the industry-leading Oracle Hyperion Planning solution
– Leverages the Oracle Cloud enterprise-grade infrastructure
– Available stand-alone and with Oracle ERP Financials Cloud Service
 Availability: CY2013 H2 General Availability
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Topics
 Challenges in Enterprise Planning
 Introduction to Hyperion Enterprise Planning Suite
 Customer Examples
 Summary & Questions
40
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Benefits Gained
Benefits Gained from Oracle Enterprise Planning
Solutions
Many benefits for those
that implemented Oracle
Hyperion Enterprise
Planning Suite
Greater visibility into process…
Improved process flexibility
Reduced time gathering data
Reduced #days to plan per cycle
Improved accuracy of forecasts
Driven accountability into finance…
Reduced #days to forecast per cycle
Reduced workload during the process
Wider deployment of platform
0%
*Interim Results
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90%
85%
80%
80%
75%
70%
70%
68%
65%
20%
40%
60%
80%
100%
% of Members With Oracle Hyperion Planning Experiencing Benefits
China Merchants Bank Reduces the Manual
Effort Required to Prepare Budgets by 80%
Oracle Hyperion Planning
 Reduced the manual effort required to
prepare budgets by more than 80%
 Cut data extraction time by 30% by
storing budget data in a centralized
system
 Allowed all offices, divisions, and
centers to prepare and submit budget
plans based on each business unit’s
specific tasks and functions
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Shenhua Ningxia Increases Budget
Planning Accuracy by 100 Times
Oracle Hyperion Planning
 Enabled 44 business units to create a
unified budget by eliminating multiple
layers of budget processes and data
 Prepared budget plans for the entire
organization in one month rather than three
months previously
 Planned budgets 100 times more
accurately
 Provided more control over spending by
analyzing budget data against actuals
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Leadcore Technology Cuts Budget
Development Time by 50%
Oracle Hyperion Planning
 Shortened budget development time by
50%
 Reduced the risk of human error by
reducing manual data entry requirements
by 30%
 Improved the accuracy of budget planning
by 30%
 Adapted budget targets to better suit
actual production results
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
In Summary….
Enterprise Performance Management
• Top priority for Finance and IT
• Key strategic priority for Oracle
 Investing to Extend Oracle’s Lead….
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Key Business Analytics Sessions
Places to Learn More
 CON1533 – Oracle Hyperion Applications Strategy and Roadmap,
12:00 – 13:00 Wednesday, July 24th
 CON1540 – Introduction to Oracle Hyperion Enterprise Planning Apps.
15:15 – 16:15, Wednesday, July 24th
 CON1541 – Introduction to Oracle Hyperion Financial Close Apps.
9:00 – 10:00, Thursday, July 25th
 DEMOGrounds – 3 Demo Pods
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Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Additional Resources
Oracle CFO Central:
www.oracle.com/CFO
Oracle Business Analytics:
www.oracle.com/businessanalytics
http://twitter.com/OracleAnalytics
www.facebook.com/OracleBusinessAnalytics
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EPM Documentation
More Than Just Documentation
Information Portal
User Productivity Kit (UPK) & Oracle
University Training
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Documentation Library &
Mobile Content
White Papers
Cumulative Feature
Overview Tool
Defects Fixed Finder Tool
Click on images for more information
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