Smart strategies for difficult times - Oracle roadmap to management excellence

Transcription

1 <Insert Picture Here> Smart strategies for difficult times - Oracle roadmap to management excellence Oana Craciunescu EPM Sales Leader South Eastern Europe

2 Agenda Expanding From Operational Excellence to Management Excellence EPM to Drive Management Excellence Oracle EPM System

3 SMART AGILE ALIGNED

4 From Pressure to Performance Pressure Compliance Cost cutting IT as an enabler Performance Governance Growth IT as a driver Operational Excellence Management Excellence

5 Pillars to Achieving Management Excellence SMART Rationalize Your Management Systems AGILE Integrate Management Systems with Operational Systems ALIGNED Share Insights Across the Extended Enterprise

6 Today s Reality: Management Activities Are Siloed SIX SIGMA VARIANCE ANALYSIS GOAL SETTING MONITOR RESULTS ROLLING FORECAST FINANCIAL MODELING OPERATIONAL PLANNING ANALYZE PERFORMANCE SCORECARDS FINANCIAL REPORTING

7 Oracle s Framework for Achieving Management Excellence

8 Align Stakeholder Interests Gain greater access to capital Build better supplier, partner and customer relationships Retain more engaged employees Improve environmental transparency

9 Manage Market Opportunities Investigate market dynamics Match market potential with resources Size investments and divestments Benchmark performance against key competitors

10 Analyze Scenarios Assess scenarios for alternative future outcomes Create strategies for addressing these alternative futures Model business combinations, partnerships, acquisitions Select optimal capital structure to support strategy

11 Allocate Resources Effectively Translate strategy into operational plans Match financial goals with operational feasibility Align resources and activities across business functions Create driver-based rolling forecasts

12 Operational Agility Monitor variances continuously Track root causes across lines of business Analyze detailed customer profitability Adjust forecasts and redeploy resources

13 Integrate Reporting Processes Combine financial and operational information Deliver timely, actionable insights to all stakeholders Include economic, environmental and social impact Meet regulatory reporting requirements

14 Oracle s EPM System Integrates Key Management Processes EXTERNAL REPORTING STRATEGIC & FINANCIAL MODELING PREDICTIVE MODELING BUSINESS PLANNING PROFITABILITY & COST MANAGEMENT MONITORING, ANALYSIS FINANCIAL REPORTING BI REPORTING TOOLS & APPLICATIONS OLAP DATA QUALITY, DATA INTEGRATION & MASTER DATA APPLICATION & METADATA MANAGEMENT

15 Introducing Oracle Enterprise Performance Management System Driving Management Excellence by Delivering Predictable Results Improving Transparency and Compliance Increasing Business Alignment

16 Market-leading Performance Management Applications Suite Strategic Planning Set Strategic Objectives Planning and Budgeting Cascade Targets Treasury Strategies Long-Term Planning Forecasting Detailed Budgeting Corporate Development Allocate Resources Master Data Business Rules Metrics/KPIs Targets, Plans & Actuals Financial Close Process Cost and Profitability Management Define Costing Methods Data Cleansing Consolidate Internal Reporting & Analysis External Reporting & Compliance Report & Analyze Define Cost Drivers Perform Allocations

17 Market-Leading Packaged Applications Financial and Operational EPM Workspace PERFORMANCE MANAGEMENT APPLICATIONS Performance Management Business Profitability Applications Strategy Management Planning Management Financial Reporting & Compliance BI Applications Business Intelligence Foundation Fusion Middleware OLTP & ODS Systems Data Warehouse Data Mart OLAP SAP, Oracle, Siebel, PeopleSoft, Custom Excel XML Business Process

18 <Insert Picture Here> Deliver Predictable Results: Integrate Strategic, Financial & Operational Planning

19 Planning and Budgeting Challenges Time takes too long, results obsolete Quality political/negotiation, not reflective of business Cost many wasted resources, dubious benefits Flexibility lack of responsiveness to changes Senior Management FP&A Group Dept A Dept B Dept C

20 Oracle Hyperion Strategic Finance Strategic Financial Modeling in One Environment Funding options Debt scheduler What If analysis toolkit Deal Period functionality Analyze trail feature Freestyle reporting

21 Oracle Hyperion Planning Improves Business Predictability Powerful workflow and process management Intuitive interface Robust data integration Leverages Essbase powerful reporting and analysis Scalable web infrastructure One platform for all the planning needs

22 Oracle Hyperion Workforce Planning 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

23 Oracle Hyperion Capital Asset Planning Assets and Depreciation Planning 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

24 Oracle Hyperion Smart View for Office Enables Enhanced Offline Planning MS Excel add-in allowing access on or off-line Develop budgets, plans and forecasts and calculate impact anywhere (on/off-line) Users download forms to Excel Manipulate data just like the full web client Synchronize to server when ready

25 What If You can Overcome a Major Liquidity Crisis? $22 Billion global provider of power and automation technologies BEFORE Lost investment-grade credit rating Needed recapitalize balance sheet No cash flow modeling capability No simulations at the divisional or business unit level AFTER Credit rating back to investment grade $4 Billion debt restructuring Simulate capital structure and cash flow 3% accuracy in net income projection

26 Budget Formulation & Execution Analysis at the Nuclear Regulatory Commission The NRC is an independent regulatory agency whose primary mission is to protect public health and safety, the common defense and security, and the environment in the use of nuclear materials. BEFORE Manual budget formulation system was labor-intense, requiring data re-keying and multiple spreadsheets and staff had lack of confidence in numbers. Difficult to forecast and reprogram and little visibility into variance analysis. Could not track or manage performance against the annual plan and quickly/effectively forecast resource constraints. AFTER Automated system that minimizes time spent entering data and maximizes time spent analyzing the budget and making better forecasting. Achieved financial data integrity from the budgeting process (no more disparate spreadsheets w/multiple disconnected versions of the budget). Ability to perform what-if analysis and quickly respond to changing scenarios within the budget process. 26

27 Planning Process Improvement Oracle s Hyperion Planning Leading supplier of electricity and energy in Europe Needs Chart of account and business rules changed with SAP implementation User-friendly budgeting tool Support for large number of users Integration within EDF s technical environment After Unified, centralized, and secure platform Single solution across 4,000 users Easy to maintain and quick to adapt to changing market requirements Reduce & automate budget process Quick to implement 2 months 27

28 <Insert Picture Here> Improve Transparency and Compliance: Accelerate Reporting Cycles and Reduce Costs of Compliance

29 Customer Pain Points Long period-end closing cycles Errors in financial data collection Financial restatements Inconsistent account structure Dozens of source systems Changing disclosure requirements Rising audit fees

30 Oracle Hyperion Financial Management Accelerates Reporting Cycles and Reduces Costs of Compliance Patented financial consolidation and reporting features Complete audit trails, workflow and validations Flexible what if scenario management features Powerful, reporting and analysis tools Full integration with ERP and other transaction systems Easy to customize and extend Web-architected

31 Single Platform for Financial Reporting Global industrial company, deployed Hyperion Financial Management to unify financial reporting for US GAAP, IFRS, management and statutory requirements BEFORE Multiple financial reporting systems for management, statutory, legal etc. Long reporting and planning cycles Difficult deployment of new applications and software Manual intercompany reconciliations Slow delivery of financial information to line management AFTER Centralized financial reporting system for all needs Streamlined financial reporting and planning Faster, easier software and applications deployments Automated intercompany reconciliations Easy, secure access to financial results globally

32 <Insert Picture Here> Increase Business Alignment: Align Strategy with Execution, Improve Resource Allocations

33 Oracle Hyperion Performance Scorecard Aligns Strategy with Execution Translates strategies into objectives to establish ownership and accountability Communicate goals and objectives to align an entire organization Tailor scorecards by individual or teams to increase adoption Monitor key performance indicators to track execution

34 Improving Communication and Alignment Norwegian telecommunications provider with over 8 billion Euros in revenue and 20,000 employees. Deployed Hyperion Performance Scorecard and complete suite of Hyperion EPM applications and tools. BEFORE 6 different analysis/reporting tools, 4-6 financial data warehouse solutions No common tool for budgeting and dependency on external consultants Information silos, no analysis across companies Many user interfaces to work with across many systems AFTER Manage strategy and initiatives Agenda for the monthly management meeting is driven by status of strategic objectives Strategic objectives tie into measures and initiatives Cost-cutting through process, system, & information standardization

35 Calculating Customer Profitability Net Revenue from Sale of Products and Services to Customer Cost of Activities to Serve Customer: Acquire Service Support Deliver Net Profit Delivered by Specific Customer

36 Oracle Hyperion Profitability and Cost Management Provide Actionable Insights into Costs and Profitability A packaged application that drives business performance by: Discovering drivers of cost and profitability Empowering users with visibility and flexibility Improving resource alignment Leverages the power of Essbase Designed for the business user Leverages existing IT investments

37 Oracle s EPM System EPM Workspace Performance Management Applications BI Applications Business Intelligence Foundation Fusion Middleware OLTP & ODS Systems Data Warehouse Data Mart OLAP SAP, Oracle, Siebel, PeopleSoft, Custom Excel XML Business Process 3

38 What is an Oracle BI Application? Integrates Data for Analysis and Reporting Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, SAP and other sources into an integrated data warehouse optimized for analysis Provides User-Friendly Analytic Model of Enterprise Information and Metrics Embedded best practice calculations, metrics, and KPIs Easy for business people to access, analyze, and use the information Delivers Personalized Performance Dashboards for Everyone Thousands of pre-built dashboards, reports, and alerts by business function and role Copyright 2008, 38 Oracle and/or its affiliates. All rights reserved. 38

39 Oracle BI Applications Complete, Pre-built, Best Practice Analytics Financials General Ledger Procurement & Spend Direct / Indirect Spend Supply Chain & Order Management Revenue and Backlog Service & Contact Center Service Effectiveness Marketing Campaign Effectiveness Sales Pipeline Analysis Human Resources Employee Productivity Accounts Receivable Buyer Productivity Inventory Customer Satisfaction Customer Insight Forecast Accuracy Compensation Accounts Payable Off Contract Purchases Fulfillment Status Resolution Rates Product Propensity Sales Team Effectiveness Compliance Reporting Cash Flow Supplier Performance Customer Status Service Rep Efficiency Loyalty & Attrition Up-sell/ Cross-sell Workforce Profile Profitability Expense Management Purchase Cycle Time Employee Expenses Order Cycle Time BOM Analysis Service Cost Churn & Service Trends Market Basket Analysis Campaign ROI Cycle Times Lead Conversion Retention Analysis Return on Human Capital Oracle BI Suite Enterprise Edition Plus Source adapters: and Other Operational & Analytic Sources 39

40 Spend Insight Across the Enterprise Procurement and Spend Analytics Los Alamos National Laboratory is a multidisciplinary research institution engaged in strategic science on behalf of national security. Before Difficulty communicating with Department of Energy HQ to provide accurate reporting. Manual processes to merge data proved costly and time-consuming. No consistent view of data across the organization to serve as the basis for decision making. Multiple data sources including Oracle EBS and proprietary custom built data sources made reporting difficult. After Senior leadership has ability to access near real-time analytics data without going through painful request process. Consistent view of analytics data across the organization serve as the standard for all decision-making. Continued user-adoption and elimination of manual processes, conflicting data, and frustration are long-term benefits. 40

41 Integrating Key Management Processes Oracle Enterprise Performance Management System EXTERNAL REPORTING FINANCIAL MODELING PREDICTIVE MODELING INTEGRATED BUSINESS PLANNING PROFITABILITY & COST MANAGEMENT SCORECARDING MONITORING, ANALYSIS & REPORTING FINANCIAL REPORTING BI REPORTING TOOLS & APPLICATIONS OLAP DATA QUALITY, DATA INTEGRATION & MASTER DATA APPLICATION & METADATA MANAGEMENT