The Case for Enterprise Performance Management. April 2018

Transcription

1 The Case for Enterprise Performance Management April 2018

2 Agenda Introduction Today s Finance Organization What is Enterprise Performance Management? Oracle EPM Cloud EPM Comparison Business Intelligence MS Excel Oracle EPM Preview 2

3 About Innovus Our Focus Our Services Innovus is a full service provider of Oracle s Enterprise Performance Management (EPM), Business Intelligence (BI) and Enterprise Resource Planning (ERP) solutions Our Consultants are Oracle certified. We are 1 of only 12 Oracle Global Partners that is a Cloud Excellence Implementer (CEI) for EPM. We are active in local and national Oracle User Groups. Our Goal is to establish a strategic partnership with our clients to champion their vision of Business Analytics and help navigate the complexities of delivering that vision across the enterprise. Business Intelligence (BI) Enterprise Performance Management (EPM) Enterprise Resource Planning (ERP) Configure - Help our customers implement Cloud EPM, ERP & BI Solutions Adopt Transfer Knowledge to our customers so they can manage their solutions Support Provide Support to our customers to ensure solution success Extend Enhance our customers solutions to improve their total cost of ownership 3

4 RJ Linehan Professional Summary Architect and functional consultant for EPM/BI solutions. Over 18 years combined industry and EPM/BI consulting experience. Senior roles in over 50 Enterprise Performance Management (EPM) and Business Intelligence (BI) projects. Qualification Summary Expert in architecting and implementing EPM/BI solutions for Global 2000 companies. OPN Certified Specialist in Planning and Essbase Speaker at Oracle/Hyperion Conferences such as: Oracle Open World, OAUG, ODTUG, Collaborate and other industry conferences. Board Member of the OAUGNYC user group. AFP Certified Corporate FP&A Professional Candidate rj@innovuspartners.com Client Experience

5 Responsibility Role Today s Finance Organization CFO Treasury Tax Controller FP&A Audit IT Debt Federal AR/AP/FA Planning Compliance Technology Cash Management State & Local GL Forecasting Regulatory Financial Systems Foreign Consolidation Analytics (BI) Operational Systems Sales & Use Fin Rpt Mgt Rpt 5

6 What is Enterprise Performance Management? The Common Disconnect Finance participates in activities that are frequently detached from operational world. Lack of standard models linking finance data to operational data. Absence of communication between finance and operations. Inability to derive and demonstrate practicality of operational plan. Operations engage in activities that are disconnected from financial objectives. Detailed operational models support execution and not necessarily financial goals. Links to financial models are simple or nonexistent. Inability to define financial impact of operational plan which may lead to adverse results. 6

7 What is Enterprise Performance Management? Information Pyramid Performance Measurement Dashboards, Scorecards Executives Performance Management Reporting, Planning, Modeling Operational Management Decision Support, Business Intelligence Managers Enterprise Resource Planning (ERP) Workflow, Relationships, Transactional Processing, Adjustments Staff 7

8 What is Enterprise Performance Management? Closed-Looped Integrated Processes Cost and Profitability Management Define Costing Methods Report & Analyze Treasury Strategies Perform Allocations Define Cost Drivers Strategic Planning Set Strategic Objectives Corporate Development Data Cleansing Financial Consolidation & Close Process Long-Term Planning Consolidate Internal Reporting & Analysis Enterprise Data Business Rules Metrics/KPIs Targets, Plans & Actuals External Reporting & Compliance Forecasting Filings Cascade Targets Allocate Resources Tax Reporting Tax Provision Reporting & Analyze Planning and Budgeting CbC Reporting Detailed Budgeting 8

9 Oracle EPM Cloud Narrative Reporting Close, Consolidations, Reconciliations, Tax Planning, Budgeting & Forecasting Profitability & Costing Enterprise Data Management Financial Data Management 9

10 Oracle Enterprise Performance Management Portfolio WEB MOBILE SMART VIEW COLLABORATION MARKET PLACE ANALYTICS DATA VISUALIZATION DATA SYNC LOBs Finance Sales Marketing IT HR Operations EPM APPLICATIONS FINANCIALS WORKFORCE CAPITAL PROJECTS STRAT. MODEL ENTERPRISE PLANNING AND BUDGETING ENT. PERF. REPORTING ACCOUNT RECONCILIATION CONSOLIDATION and CLOSE TAX PROVISION PROFITABILITY and and REPORTING COST MGMT EPM FOUNDATION LAYER COMMON MODERN UI COMMON FOUNDATION DATA QUALITY/INTEGRATION DIMENSION MANAGEMENT SECURE AND SCALABLE STANDARDIZED API s 10

11 Oracle EPM Tool Role Oracle EPM Cloud IN Today s Finance Organization CFO Treasury Tax Controller FP&A Audit IT Planning & Budgeting (EPBCS) Tax Reporting (TRCS) Consolidation & Close (FCCS) Planning & Budgeting (EPBCS) Consolidation & Close (FCCS) Enterprise Data Management (EDMCS) Performance Reporting (ERPCS) Account Reconciliation (ARCS) Profitability & Cost (PCMCS) Performance Reporting (ERPCS) Data Management (DM/FDMEE) Performance Reporting (ERPCS) 11

12 Oracle EPM Cloud - Trends Report 2018 Companies are adopting cloud-based EPM solutions to lower TCO and/or avoid costly upgrades. Companies like cloud because provides for staying current on technology. Leading practices provided by moving to cloud: Single source of data Rolling Forecasts Driver-based planning Faster Close Faster External Reporting Expanded qualitative commentary is critical. Calculation of indirect costs providing improved transparency. Interested in or exploring leading-edge technologies AI, Blockchain, Robotic Process Automation, Machine Learning, IoT Source: Source: 12

13 Enterprise Performance Management Comparison Business Intelligence vs. Enterprise Performance Management Business Intelligence Able to access data natively ( Leave in Place = less work) Data is in a single repository (Subtotaling and Straight Rollups) Data is standardized (Utah is always UT) Need real-time results (What is happening now?) Access is open (Everyone who needs to know it) Performance Management Access to data is limited (Data need Collecting ) Combined from multiple sources (Aggregations and Cube Rollups) Data needs transformation (Utah -> UT mapping, adjustments) Processed Weekly, Mthly, Qtrly (What has happened? What will?) Access is controlled (Sensitive, Need to know basis) 13

14 Enterprise Performance Management Comparison MS Excel vs. Enterprise Performance Management Microsoft Excel Access to a Central Database (Able to Query and Refresh) Error Trapping (Formula and Spelling Errors) Limited Dimensionality (Rows, Columns, Tabs, Workbooks) Control of Versions (Who has the latest copy? Where?) Adding a new row? Column? (Good luck adding to every one) Freeform Formula Creation (Every Cell Formula is unique) Performance Management Access to Application Data (Intelligent API Connection/Link) Error Prevention (Referential Application Integrity) Unlimited Named Dimensionality (Products, Customers, Staff, etc) One Version of the Truth (Centralized and controlled) Centralized Maintenance (Dimensions are uniform) Formulas are Rules based (Uniform enforcement of calcs) 14

15 Enterprise Performance Management Comparison 88% of spreadsheets have errors (1) Debt Sustainability Paper by Carmen Reinhart and Kenneth Rogoff (2) Cause: Excel error inadvertently excluded certain countries causing result to be 0.3 percentage points worse than it should be. Effect: Incorrect conclusion stating once a country gets past 90% on the public debt-to- GDP ratio, the economy will suffer. London Whale Incident at J.P. Morgan (3) Cause: Excel model operated through series of Excel spreadsheets completed manually by copying and pasting data from one spreadsheet to another. Effect: Bank took $6.2 billion trading loss. (1) (2) (3) 15

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