Oracle/Hyperion EPM

Enterprise Performance Management

February 11, 2009

 Emerging Solutions
• 10+ years in business
• Over 300+ clients nationwide
• Headquartered in downtown Chicago
• Areas of Focus:
• Hyperion – HFM, FDM, Planning, Essbase, etc…
• OBIEE
• PeopleSoft – Finance, Supply Chain, and HCM
• Oracle EBS
• OTM
• Microsoft ERP & Sharepoint

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com

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 Today’s Agenda

Introductions

Oracle Enterprise Performance Management

Overview (EPM)

Oracle Planning with F&W Publishing

(Hyperion Planning)

Oracle Financial Consolidation (HFM & FDM)

Q&A

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com
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 Introductions

Dan Franceschina – BPM Practice Lead

Tammy Norton – Financial Consolidations

Practice Lead

Doug Pilot - Senior Developer

Tony Tedesco – F&W Publishing

Business Process Owner

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com
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 Oracle’s Enterprise Performance
Management System

Web Office Desktop Mobile Embedded

Financial Performance Operational BI

Management Applications Applications

Business Intelligence Foundation

Fusion Middleware

OLTP & ODS Data Warehouse SAP, Oracle, Siebel, Excel Business
Systems Data Mart OLAP PeopleSoft, Custom XML Process

5
 Original EPM Vision

• Link strategic goals to

operational decisions
• Transform financial Set
Goals
management processes Align Plan
• Monitor execution in real-time Insight
Performance

• Deliver consistent, reliable Report

Action

Monitor
insights to drive action
Analyze
• Lower costs and reduce
system complexity
• Single version of the truth

6
 An Integrated Management Cycle Drives
Insight and Performance….
• Develop strategies
and goals
• Define key initiatives
and KPIs
• Model scenarios
• Revisit Goals Set
• Update Models Goals
• Update Plans
• Reallocate Resources
Align Plan

Insight • Allocate strategic

targets
Performance
• Financial & Statutory • Financial budgeting
Action • Operational planning
• Management Reporting
• Compliance • Rolling forecasts
Report Monitor
• SDR – GRI Metrics

Analyze • Financial and operational

• Revenue, profits, KPIs
• Efficiency and Utilization
• Variances to budget • Benchmarking and metrics
• Key trends
across LOBs
• Profitability
• Effectiveness

7
 Oracle Performance Management

Strategic Planning Planning and Budgeting

Set Strategic
Cascade Targets
Objectives

Treasury Long-Term Detailed

Strategies Planning Forecasting
Budgeting

Corporate Allocate
Development Resources

Master Data
Business Rules
Metrics/KPIs
Targets, Plans & Actuals

Financial Close Process Cost and Profitability Management

Define Costing
Methods

Internal External Define Cost

Data Report & Analyze
Consolidate Reporting & Reporting & Drivers
Cleansing Compliance
Analysis
Perform
Allocations
 Gartner: Magic Quadrants for CPM Suites, 2008

The Magic Quadrant is copyrighted by

Gartner, Inc. and is reused with permission.
The Magic Quadrant is a graphical
representation of a marketplace at and for a
specific time period. It depicts Gartner's
analysis of how certain vendors measure
against criteria for that marketplace, as
defined by Gartner. Gartner does not
endorse any vendor, product or service
depicted in the Magic Quadrant, and does
not advise technology users to select only
those vendors placed in the "Leaders"
quadrant. The Magic Quadrant is intended
solely as a research tool, and is not meant to
be a specific guide to action. Gartner
disclaims all warranties, express or implied,
with respect to this research, including any
warranties of merchantability or fitness for a
particular purpose.

This Magic Quadrant graphic was published

by Gartner, Inc. as part of a larger research
note and should be evaluated in the context
of the entire report. The Gartner report is
available upon request from Hyperion

Magic Quadrant for CPM Suites, December 2008

Nigel Rayner

9
 Oracle’s Differentiators in EPM

• Comprehensive Solutions and Architecture

• Most complete performance management applications
• Broadest coverage of pre-packaged BI applications
• Most comprehensive semantic layer
• Hot Pluggable into Any Environment
• Open to Oracle and non-Oracle platforms and applications
• Modular system that can plug and play with IT infrastructure
• Leverages Fusion Middleware
• Power Beyond Dashboards
• Most powerful OLAP server
• Only integrated master data management technology
• Easy to use financial and predictive modeling

10
Oracle Hyperion EPM
Hyperion Planning

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com
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 F&W Media

• F&W Media strives to offer the highest quality content in a

wide variety of formats—from print to digital to video—to
highly passionate enthusiast communities. Our goal is to offer
community, content, and connectivity to these focused
markets.
• F&W Media publishes magazines and books, multi-media and
web content, and creates and schedules conferences and
events
• F&W Media communities include crafts, automotive,
collectibles and antiques, sports, outdoors, woodworking and
writing
• F&W Media is headquartered in Cincinnati with locations in
Colorado, Wisconsin, Iowa, and the UK

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 High Expectations for Project
Current Excel Process
 Extremely manual, time
consuming ―mechanical‖ process
 Single planning version
 No Forecast capabilities
 ―Assembly line‖- like process
 Very limited reporting capabilities
 Very limited budget administration
capabilities
 High risk of error and loss of plans
due to manual processes -
complete reliance on Excel
 Lack of Visibility and
transparency
P. 13
Future Vision
 Create budgets using metrics,
standard calculation, built in
aggregation functionality
 Scenario-based planning and
forecasting capabilities
 Parallel processing, exception
budgeting
 Robust standard reports,
dashboards, ad-hoc queries
 Budget workflow for the review and
approval of plans
 One source of truth for plan and
actual results
 Evaluating the Budgeting Process
The ―Budgeting Process‖ is a term used broadly for any forecast process
including annual plan, quarterly assessment, monthly forecast, etc.
 Budget Effectiveness
— How well the organization can predict future results
— Understanding the key drivers and parameters that create budget
values
 Budget Efficiency
— Effort required to create a plan
— Ability to quickly adapt to new forecast processes or parameters
 Budget Control
— Clear roles and responsibilities of planning process
— Communicate of key assumptions, budgeting calendar
— Ability to easily determine budget status

P. 14
 Where We Started- Efficiency

 ―Assembly line‖-like process

— Hand-offs of data via Excel spreadsheets
— Time consuming, difficult to perform iterations
 Difficulty with maintaining process consistency from cycle to cycle
 Excel models could not scale – prone to break
 Calculating and reporting on key planning was very difficult to perform
 No ability to view the budget from different organizational points of
view (product segment, book, customer)
 Many manual processes
— Consolidations, incorporation of source data, cut and pasting of data
from one Excel model to another

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 Where We Started -
Effectiveness

 Calculation methodologies
— Driver based calculations where not linked into the total budget
— Performed on a component by component basis off-line
 No true versioning capabilities
 Manual consolidation took days to complete
 User would submit budget data and not receive the results of those
changes for several days
 Very little transparency to budget data
— Calculations vs. manual adjustments?
— No ability to view components of budget
— No ability to see user planner commentary

P. 16
 Where We Started–
Budget Control

o Version control difficult to maintain – keeping templates in synch

o No budget administration capabilities

o Potential for user error and/or file corruption in consolidation

process

o Limited reporting & analysis capabilities

o Security limited to Excel capabilities

o Knowledge of Excel process limited to a few employees

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 Consolidation Process

Magazine Group
Corporate
Assumptions Email .xls Book Group
Email
Email
.xls
Central .xls

Planning .xls
Email .xls
.xls
Team Email

E-Media Email .xls Operations

Group
.xls Email
Human
Email
Resources

P. 18
 Initial Data Flow

Manual load of plan data

via Excel
Load via Export via
Excel EDI Excel EDI or
PDF

Oracle
General
Ledger
New data loads & iterations
(continuous maintenance of
Excel templates) Limited Budget storage Reporting/analysis
(data categories and via Excel
statistical accounts)

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 The Way Forward
Focus on Business Process

Clear strategic & tactical Review analysis Review calculation Review administration
objectives for budget process & reporting needs & data flow & support

Technology Project
Management
Quick, cost effective
implementations
Creation of
Budget Designed to be flexible
Application - Easy-to-use Implement functionality
interface in phases
- Enhanced
Centralized data security Robust reporting/analysis Knowledge transfer to
repository (single - Standard data tools F&W resources for
version of truth) entry templates ongoing support

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 The Way Forward- Technology
Finance Print E-Media Benefits
- Allows for standard
data entry
- Ability to document
budget online
Submit/access -Standardized
plan data via the calculation
web or Excel methodologies
- True
Planning Web Forms SmartView Add-in multidimensional slice
& dice capabilities
- Centralized
administration &
maintenance
Oracle EBS - Versioning, robust
Plan
(GL and HR) Data security, audit logs

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 Oracle Planning Application
Highlights
 Hyperion Planning 9.3 with Workforce Option
 Complete salary related expense planning by employee
 Salaries, taxes, benefits
 Total P&L plan including detailed revenue and expenses
 Standardized calculations and data entry
 Established data analysis needs – Segment, Customer, Account,
Business Channel, etc.
 Robust reporting environment / standard planning report package
 Retired numerous offline Excel-based processes
 4 distinct aggregation points of view division, segment, publisher and
community
 2 different views of P&L consolidated income and subdivision

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 Hyperion Planning Overview
Data Entry via User Reporting and
Web or Excel Analysis
Interface

Hyperion Planning Application

Calculations, Security & Workflow

Essbase Database
Data Categories
Period and Yr Customer
Oracle G/L Actual Income
Information Employee Sub Division
Scenario Division
Run as batch
process or on Version Company
demand
Bus Channel Issue
ADP
Actual Salary Currency Account
Data

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 Project Timeline
Get Ready for GO LIVE
 Construct Reports
Build the Foundation  Finalize Application Security
 Review business process and create  Develop User Training
application design  Finalize Application
 Construct application and model data Documentation
structures
 Populate application and validate
interfaces Final
Testing

User Training Dev

Design and Prototype
Construct Reports
Interface Dev and
Testing Security

07/2008 08/2008 09/2008 10/2008

Book Budget Forms and Calculations GO


Build Application Content
Build out planning process
LIVE
Magazine Budget Forms and Calculations
for business units
 Data entry process E-Media Budget Forms and Calculations
calculations
 Configure Workforce
Configure Workforce Planning
Planning Application
 Book Cost of Sales and
Revenue Form

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 Magazine Page Budget
Form

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 Report View

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 Hierarchy

P. 28
 Today – Results Achieved

 Integrated financial model components into comprehensive financial planning

process
 Metadata updates using EPMA
 Eliminated manual data entry for historical data, statistical accounts, inputs
from other planning modules
 Standardized calculations and data entry
 Robust analytics – plan by division, segment, company, employee, customer,
title, etc
 Created comprehensive budget administration process
 Robust reporting environment
 Retired numerous offline Excel-based processes
 Automated actual versus plan analysis and variance capabilities
 Knowledge transfer to F&W Media employees for ongoing support
 End-user training and application documentation

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 Next Steps

 Add centralized allocation processes to the application

 Add currency conversion for UK location
 Utilize the built in workflow capabilities for the review and
approval of budgets
 Establish forecast process
 Implement balance sheet planning
 Enhance revenue model for additional driver calculations

P. 30
 Oracle/Hyperion EPM
Hyperion Financial Management
& Financial Data Quality Management

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com
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 Hyperion Financial Management
World-Class Finance for Global Organizations
• Report timely and accurately
to regulatory bodies, financial
analysts, stakeholders and
business partners
• Unify all financial
management data for ―one
version of the truth‖
• Induces collaborative
financial decision-making
• Can support hundreds or
thousands of users
• Complies with IT Standards
• Control/Compliance Best
Practices
 BI+ Analysis & Object Oriented Reporting
Online, Interactive Analysis
• Intuitive, interactive online analysis with rich analytics
• Addresses a multitude of users with varying levels of analytic intensity
• Ideal for management reporting, product profitability analysis, performance
management and promotional effectiveness
 Smart View for Microsoft Office

• Common MS Add-In for Excel,

Word and PowerPoint
• Multi Source Read / Write
• Integrated real-time pivot or
formatted reporting
• Access and run BPM
processes
• Deliver Web forms and data
collection and reporting
• Support Smart Tags and
integrating reports and view
from Financial Reporting and
Web Analysis
 Financial Data Quality Management (FDM) –
SOX compliance
Audit Trails
• Integrate SOX
questionnaires
• Store current and historical
mapping definitions
• Store support documents
Data Collection and
Transformation
• Read and interpret any
G/L trial balance file
• Mapping validation
against target system
dimensions
• Data integrity checking
against data validation
rules
Internal Controls
• Source financial document
archival
• Prepackaged audit and
internal control reports
Financial • Comprehensive role based
security
Data
Quality Repeatable
Processes
• Single standard and
defined solution for any
target application
• Standardized database
schema
• Standard upward data
certification process
 Process Management – SOX Control

• Enables controls
around the flow of
the data
• Electronic sign-off
of the data
• Able to report off
the Review Level
status
• Ability to attach
documents when
submitting the
data
Task Audit / Data Audit – SOX Control
Customer Needs
and Challenges
 Financial Close and Reporting Today

…a controlled process is not easy to achieve!

• Lengthy and cumbersome closes
• Inefficient and disconnected
processes
• Difficulty with reporting and
analysis
• Data quality issues
• Inability to keep pace with change
• No control over the process Kenneth Lay
• Too many spreadsheets Accounting scandals have
brought financial reporting
…AUDIT ISSUES into focus as never before.
Tyco , Worldcom Enron
 Our Vision – A Streamlined Financial
Close Cycle Your Auditors will Approve,
Year after Year
Data Internal External
Cleansing Consolidate/Tax Reporting Reporting
& Transfer & Analysis & Compliance

• Finance Owned and Operated – Finance owns both: the results

and the system
• Packaged Application – Out-of-the-box financial intelligence –
minimal ongoing consulting
• Open and Agnostic – Data from any source, but with full
controls
• Designed for Sarbanes-Oxley and IFRS Compliance – 1000s
of customers passing audits every year
 Solving Financial
Consolidation and Reporting
Issues

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com

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 Addressing Global Compliance Needs
SARBANES-OXLEY REQUIREMENT
• Section 302 – CEO/CFO Must Certify
• Section 404 – Internal Control Report
• Section 401 – Conditions for use
of non-GAAP Financial measures
• U.S. Auditing Standards
• Accelerated reporting
IAS/IFRS REQUIREMENT
• EU Countries to comply
• Recognition and measurement
• Consolidation and reporting
FINANCIAL MANAGEMENT
• Submissions contain audit trail
• Mandatory review/approval procedures
• Multiple organization hierarchies and
chart of accounts
• Autonomy from transaction systems
• Web solution, I/C reconciliation, journals
FINANCIAL MANAGEMENT
• IFRS, Multi-GAAP, and local statutory
• Custom dimensions; financial intelligence,
journals with audit trail
• Segment reporting, specialized currency,
inter-company, disclosures
 Financial Reporting XBRL Manager

• eXtensible Business
Reporting Language
• A standard for preparing,
producing and analyzing
financial reports in XML
• Hundreds of companies SAP
have been working together
to develop specifications for
taxonomies and instance Other
documents
• See http://www.xbrl.org/ for
more information Oracle

• Support for XBRL 2.1

specification
• Output (Instance Doc) can
be sent directly to SEC.
 What’s Different with IFRS?
US GAAP always more specific, plus:

Among Others: IAS/IFRS US GAAP

Fair Market -Revaluation FA & Investments Only certain FI

Extraordinary Items None Rare. Neg Gdwill

Consolidation Control 2 models

Joint Ventures Proportional ok Only Equity

Acquisition Specific differences

R&D: ―Development‖ Dev. Capitalized Dev. Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step, reversible 2 Step, no reversal

Interest rate sensitive
 Oracle Enterprise Performance Management
Enable Top End IFRS Reporting

CORE CONSOLIDATION FEATURES

Multiple reporting standards in a
single solution
GAAP IFRS

Flexible Rules Engine

Journal Entries and Audit

DOCUMENT ATTACHMENTS FLEXIBLE REPORTING

Creates ―Electronic Easy to

Binder‖ of all reconcile and
adjustments trend GAAP
vs. IFRS
results
 Fast Close Best Practices

• Holistic approach – address entire process

• Focus on the time-killers (intercompany, cash flow,
foreign exchange, minority interests, tax etc)
• Include unstructured information – flash reporting
with commentary
• Close transaction systems – keep them closed
• Do it right the first time – data quality, audit trails,
process control
• Extra credit: XBRL for external reporting and IFRS
compliance
Unique Customer Stories
Financial Management

© 2008 Emerging Solutions. All rights reserved. Confidential and proprietary information. www.emergenow.com

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 Improve controls with better security,
auditing, and process workflow
RR Donnelley is the world's premier full-service provider of print
and related services, including document-based business
process outsourcing.

BEFORE
• 3 different consolidation applications
with disparate charts of accounts
• Information silos, no analysis across
companies
• Many user interfaces to work with
across many systems
• Poor visibility and control on account
mappings from local General Ledger
(SAP)
AFTER
• Managed strategy and initiatives
• Improved quality and timeliness of
monthly data resulting in a more
accurate, timely close and reporting
process
• Improved integration with the quarterly/
annual tax reporting packages
• Reporting administration of a single
global database

• No integration with other reporting • Able to more quickly integrate

packages. acquisitions into RRD consolidation
process and system
 Fast growth – quick reporting needs
US Power Generating Company owns and operates eight power
generation facilities with a total capacity of over 5,000
Megawatts. USPowerGen subsidiaries sell their energy and
capacity into the New England deregulated markets.

BEFORE
• Grew to a billion dollar company in less
than a year through acquisitions
• Reporting in Excel – Manual from two
general ledgers
• Pressure to produce restated results to
issue an S1 with financial restatements
• No actual, budget or forecasting
capabilities
• Large amounts of operational data and
complicated calculations
AFTER
• ―One version of the truth "statements
that are audited or presented to the
board are pulled from one database.
• One central repository, with data that’s
consistently mapped for reporting
• Ability to trace all financial and non-
financial data with instant drill down
capabilities to the source information
• Great quality and reliability of the data
• Management has instant online access

• Management had to wait for reports

 Worldwide reporting requirements in a
constantly changing environment
ACCO Brands Corporation is one of the world's largest suppliers of
office products, with annual revenues of nearly $2 billion. ACCO Brands
markets products in over 100 countries through its own sales force and
distribution networks..

BEFORE AFTER

• Multiple systems with inconsistent • Global consolidation across many

reporting structures & multiple data lines of business & products

sources • Global forecasting and reporting solution

• Changing disclosure requirements for 1,000+ users

• Complex reporting and forecasting • Minutes to access information over the

processes web with MS Office integration

• Rising audit and SOX fees • Ability to keep pace with change

• Lengthy and cumbersome closes • Less dependency on spreadsheets and

maintenance
 Long close process and manual process
The OSI Group is a world leader in providing quality products and custom
solutions for the food industry. That’s why many of the worlds’ leading food
companies count on the OSI Group for cutting edge solutions to their most
complex food development and processing needs.

BEFORE AFTER

• 15+ days to close • 5 days to close worldwide books

• Many analytical technologies • Global consolidation across several

countries and currencies
• Manual input of financial and
operational information • Reduced reliance on corporate staff for
consolidation and maintenance
• Hours to create reports
• Minutes to access information
• Poor security and processes
• Faster turnaround of data allowing for
• Manual intercompany elimination and
time better spent on analysis to provide
foreign currency translation
quality results to management
 Oracle Hyperion: 25+ Year History

2007 Governance, Sustainability, Convergence, Electronic Reporting

4,500 CFOs
2005 Accelerated Filings, IFRS Helped
2002 Sarbanes-Oxley, SAS99, COSO

2001 Euro – Euro Transition

Hyperion
Financial Mgmt
1997 FAS131/IAS17 – Segment Reporting

1989 FAS95/IAS7 – Cash Flow Reporting Hyperion

Enterprise
1988 FAS94/IAS27 – Minority Interests

1982 FAS52/IAS29 – Fx Trans Micro Control

Global Impact
 Are you ready to partner with Emerging
Solutions?
Hyperion Planning and Financial Management

• Hundreds of live customers integrated with Oracle

E-Business Suite and PeopleSoft Enterprise
• Certified adapters for PeopleSoft Enterprise and Informatica and
ODI support for Oracle E-Business Suite
• Prepackaged applications for Workforce, Capital Expense and
Strategic Planning
• Complete audit trails and drill back with Financial Data Quality
Management
• Finance owned and operated
• Superior Microsoft Office integration
• Low TCO and fast ROI
 Planning & Budgeting
Dan Franceschina
dfranceschina@emergenow.com

Financial Consolidations:
Tammy Norton
tnorton@emergenow.com

To see a demonstration of
Hyperion products please email
infor@emergenow.com

To learn more about F&W Media

check out www.fwmedia.com
Our Customers