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Oracle EPM and ERP Integration
Maximize Your Return from Oracle Solutions
Mike Casey
Director
EPM Product Management
October 1, 2014
10:15-11:00 AM
Moscone West – 3010
CON8522
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information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Program Agenda
1
Integration Overview
2
Financial Data Quality Overview
3
Todd Renard – B/E Aerospace
4
David Finney – IDEX Corporation
5
Q&A
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Integration Overview
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EPM Data Integration Options
Native ERP and EPM
Application product utilities
ODI custom integration to
EPM applications
ERP Integrator (ERPI) source
adapters, with or without
Financial Data Quality
Management (FDM)
Financial Data Quality
Management, Enterprise
Edition – the next
generation ERPI and FDM
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Metadata Integration Options
• Native Utilities
– Planning Outline Load Utility
• Flat file or table
– Financial Management
• Flat file or API
– Essbase
• Rules file
– EPMA
• ADS file format
• Deploy when complete
– Oracle Data Integrator
• Customize as needed
• Data Relationship
Management
– Manage metadata in one
location
– Can be used for ERP and
EPM applications
– Integrate with EPM apps, or
via EPMA
– Option for Governance –
DRG
• Provides a workflow on top
of the meta data
management process
• Direct ERP Sources
– Provided via ERP Integrator
or Financial Data Quality
Management Enterprise
Edition
• EBS and PeopleSoft
• SAP BW supported in
11.1.2.4
– Roadmap item to include
meta data load from file in
FDMEE
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Financial Data Quality Management, Enterprise Edition
The strategic product for EPM application
data integration
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Financial Data Quality Overview
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What is Financial Data Quality Management (FDM)?
• FDM is a business issue
defined as the practice
which includes the
following factors:
– Financial data collection and
transformation
– Repeatable processes
– Internal controls
– Audit trails with drillthrough
– Write-back to source
systems
• Significant business
challenges
– Disparate source systems
– Inconsistent account
structure
– Errors in data and metadata
collection
– Financial restatements
– Weak controls
– Lack of visibility into
processes and controls
– Synchronization between
ERP and EPM
• Benefits to following an
FDM process:
– Increased confidence in data
– Decreased cost of
compliance
– Elimination of data integrity
risks
– Documented and defined
repeatable processes
– Improved cycle times during
periodic processing
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Oracle EPM Delivers Confidence with FDM
Investigate issues using
available audit trails and
dynamic drill-through
Collect, transform and
synchronize data from
many disparate sources –
ERP, File, etc.
Business users define
integrations in a single
repository and run as a
repeatable process
Secure and control access
to data and application
features
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Financial Data Quality Management, Enterprise Edition
• Oracle’s solution for the FDM business process
– Combines ERP Integrator (ERPI) and FDM into a single product
• Upgrades ERPI to FDMEE with FDM features added
• Built on the Fusion Middleware platform
– First available in EPM release 11.1.2.3
• Existing FDM customers may upgrade to FDMEE
– FDM and FDMEE may be run in parallel
• New customers may only install FDMEE
– Legacy FDM not available starting with release 11.1.2.4
• Additional license fees are NOT required to migrate to FDMEE
• FDM Adapters – Licensing remains the same
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Financial Data Quality Management, Enterprise Edition
Enabling Seamless Data and Metadata* Integration
Data & Metadata
Oracle EBS,
PeopleSoft, JDE, Fusion APPs,
SAP R/3
Meta-data
Financial Close
Planning & Forecasting
Data Warehouse
Data Mart
Web Interface
Financial Reports
Other
Systems
Data
Strategy Management
Microsoft Office
Profitability Management
File
Excel
XML
Drill-Through & Write-Back
* Metadata supported for EBS and PSFT
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Direct Integration - Supported Source Systems
EBS
Peoplesoft Fin
Peoplesoft HCM
Fusion Fin GL
JD Edwards
SAP
SAP BW
Version
Data
Metadata
Drill-Through
Write-back
11i/12x
Yes
Yes
Yes
Yes
9.X
Yes
Yes
EBS Public Sector
Yes – Financials
only
Yes
No HCM data
11.1.X
Yes
Yes
Yes
Yes
9.0, 9.1
Tools 9.1.x
Yes
No
Yes
No
4.6c,4.7, ECC 6
7.0+
Yes
No
In 11.1.2.4
Yes
No
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FDMEE – Integration Strategy
• Develop direct “out of the
box” integration
– Sources prioritized based on
market demand
• Open Interface Adapter
– Use when “out of the box”
integration not available
– Licensing allows
modification to ODI
packages delivered with
FDMEE
– Customer must populate
interface table
• File based data loads
– Any file format
– Delimited or fixed width
– Includes majority of single
byte and multi-byte
encodings
Complete coverage with direct integration, open interface, and file based data loads
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
FDMEE – Main Product Features
Source System /Import Format
Define sources including files and ERPs, and then map the source columns/fields to
dimensions in EPM applications
Mapping Rules
Identify how source dimensionality translates to target dimensionality. This is the
heart of the FDMEE application
Data Load Rules
Create an integration definition that can be reused each period. Uses a point of
view specified by the user for period, category, etc.
Scripting
Customize FDMEE processing using Jython or Visual Basic scripting
Reporting
Modify seeded reports or create new reports using BI Publisher
Batch Processing
Create batch definitions that can be scheduled and run in “offline” mode
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
Todd Renard
B/E Aerospace
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Overview of B/E Aerospace, Inc.
•B/E Aerospace, Inc. 4B in Revenues, Listed on NASDAQ designs, manufactures, sells, and services cabin interior
products for commercial aircraft and business jets in the United States and internationally.
•Oracle/Hyperion Software Currently being used by B/E
Hyperion Financial Close Suite and OBIEE which included (HFM, DRM, FDQM, Planning, EAL, HFR, Essbase, ERP-I, HFR,
Smart View, OBIEE, and UPK)
JD Edwards World & EONE for it’s main General Ledger Package.
•B/E has always had a lot of organic growth as well as continued to grow its brand
through acquisitions giving B/E. It’s because of the M&A that B/E now currently has over
30 different ERP systems with JD Edwards EnterpriseOne as its Main GL Package.
•The Oracle Hyperion Financial Close Suite with OBIEE has allowed B/E to become more
efficient at solving complex problems faster, significantly reduced the time it takes to
perform pre and post acquisitions activities, and was architected to be both lean yet
scalable without the need for additional headcount all while contributing to the goal of
increasing shareholder value.
18
Overview of B/E Aerospace, Inc. - Continued
•Although it was a 5 Year Road Map with eleven application suites in total, the first two years were spent proving the
value of the Oracle Hyperion Financial Close Suite to both the finance user community and senior management.
•Data marts were architected off of JD Edwards World giving rise to many purpose built Hyperion Essbase Cubes to
assist the owners of the data in identifying weaknesses with their current processes.
•Other tools like Hyperion Financial Data Quality Management, reducing the time it took to integrate and financials of
new acquisition using such tools as FDQM from six months to just three weeks.
•Between second half of 2011 until the end of 2014 the remaining nine applications suites were successfully rolled out
across the company which included (HFM, DRM, ERP-I, Planning, EAL, HFR, Smart View, OBIEE, and UPK) .
•With the Oracle Hyperion Financial Close Suite, the time to integrate ERP financials from newly acquired companies
was reduced from 6 months down to 3 weeks.
•Implementing the Oracle Hyperion Financial Close Suite and Business Intelligence helped save 80+% time on Data
Analysis & Mining, giving senior management the ability to “act quicker” and be more proactive in its strategic
initiatives
19
5 Year Business Intelligence Strategic Road Map
20
Master Data Management - DRM
21
Integrating General Ledgers using FDQM
FDQM HFM Adapter
FDQM Load Locations
FDQM Import Format
22
Integrating General Ledgers using FDQM Contin.
FDQM HFM Adapter
FDQM Custom SQL Import Scripts
23
Integrating General Ledgers using FDQM Contin.
HFM Ad-Hoc Analysis in Smart View Excel displayed at the lowest level intersection.
24
Integrating General Ledgers using ERP-I.
HFM Ad-Hoc Analysis in Smart View Excel displayed at the lowest level intersection where a Finance user can drill-through from excel smart view directly into
EnterpriseOne.
25
Integrating General Ledgers using HFM & OBIEE.
26
Integrating General Ledgers using HFM & OBIEE Contin.
27
Integrating General Ledgers using Essbase & HFR
28
Integrating General Ledgers using Planning
29
David Finney
IDEX
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31
Oracle Open World
October 2nd, 2014
IDEX PROPRIETARY & CONFIDENTIAL
Who am I and what is IDEX?
32
• Dave Finney – Director of Financial Systems at IDEX
–
–
–
–
15 years experience with EPM products
Starting in Accounting and Finance and moved to Financial Systems
Led several major projects focusing on improving financial processes
Hyperion focus includes HFM, FDM, Essbase, Planning
• IDEX
– $2 billion supplier of highly engineered industrial and
technology solutions
– Global platform strategy in attractive markets focused on
protectable “moats”
– Our objective is to provide consistent double digit earnings and strong cash flow growth with
superior return on invested capital
– Headquartered in Lake Forest, IL, with facilities across five continents with more than 6,700
employees
IDEX PROPRIETARY & CONFIDENTIAL
IDEX has over 100 business units
Fluid & Metering Technology
33
Health & Science Technology
Fire & Safety/Diversified
2013 Revenue
$872
$715
$445
% of total
43%
35%
22%
2013 Operating Margin
24%
19%
23%
2011–2013 Operating
Income CAGR %
13%
14%
9%
Strategic
Platforms/
Groups
• Chemical, Food & Process
• Water
• Energy
• Agriculture
•
•
•
•
•
Scientific Fluidics
Optics & Photonics
Material Processing
Specialty Compression
Seals
•
•
•
•
Dispensing
BAND-IT
Fire Suppression
Rescue
IDEX PROPRIETARY & CONFIDENTIAL
Agenda
•
•
•
•
•
34
Business Problem
Our solution
How did we do it – data integration
How did we do it – close process
Benefits realized to date and expected future benefits
IDEX PROPRIETARY & CONFIDENTIAL
Business Problem
35
• IDEX needed to improve its management reporting and upgrade their version 9 applications
• The data integration from JDE to Hyperion had a data warehouse layer that was error prone
IDEX PROPRIETARY & CONFIDENTIAL
Our Solution – FDMEE against JDE, DW for Essbase
Trial Balance details (with
cost centers)
36
Trial Balance details (with
cost centers)
External
Reporting
Non- JD Edwards
ERPs
HFM
FDM
-
JD Edwards (JDE)
XE
REMOVE Custom 3 Dimension (ES&A,
Semi detail), all Forecast scenarios
ADD FX/ Perf vs PY
FIX N1 and N2 process
REMOVE DW Input
HIDE Cost center detail (pass-thru to get
to essbase)
-
Management
Reporting
Operational data
Operational data
SQL Data
Warehouse
JD Edwards (JDE)
9.0
-
NEW Provide summarized data
feeds to essbase
NEW Automated reconciliations
to essbase
Essbase
-
-
NEW Management & Financial Reporting tool
ADD Cost center data, comparison scenarios
with multiple FX/Perf over multiple years,
China/India Passback
AUTOMATE Operational Summarization (from
JDE 9X) / Manually Load from other ERP’s
BEGIN Product P&L Allocations
IDEX PROPRIETARY & CONFIDENTIAL
How did we do it – FDMEE data integration to HFM
37
• Hyperion work
– Determined new HFM dimensionality (Account dimension and C3 changed)
– Created new FDM locations
– Migrated about FDM v9 maps to FDMEE 11
• Export FDM v9 maps to excel
• Perform excel process based on account and C3 change (vlookups, etc)
• Import new v11 maps
– Convert import formats from VB script to Jython script
• Very little work on BU side
• JDE work
– Built process to run trial balance files to secure folder for FDM import
• Data warehouse work
– Removed any transformations
IDEX PROPRIETARY & CONFIDENTIAL
How did we do it – Close process overview
38
• Overview
–
–
–
–
–
Over 100 businesses loading data through FDMEE
50% of businesses on JDE use a single, global account map
50% of businesses not on JDE run local trial balances and load
All maintain their own maps are in control of the process
Close the books on work day 4
• Loading actuals - JDE
– Run a trial balance extract process created by the JDE team which writes to secure folder
– Load in FDM takes 1-2 minutes
• Loading actuals – Non-JDE
– Run local trial balance extract and save to secure folder
– Load in FDM takes 1-2 minutes
IDEX PROPRIETARY & CONFIDENTIAL
Benefits realized to date and expected future benefits
39
• Current benefits
– Time savings and improved accuracy with removal of data warehouse layer for the trial balance load
– Retained same great FDM look and feel so end users continue to maintain maps
• Future expected benefits
– Leverage FDMEE for direct integration into JDE
• Will direct connect to our JDE 9.1 and higher BU’s
– Leverage FDMEE for integration to essbase
• Part of release 11.1.2.4 in early 2015???
• Currently using EPMA data synchronization which is slow
IDEX PROPRIETARY & CONFIDENTIAL
Additional Resources
• Contact information
– [email protected]
• Online documentation
– http://www.oracle.com/technetwork/middleware/epm/documentation/index.html
• Oracle Support
– http://support.oracle.com
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