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Introduction and Update:  Hyperion Profitability and Cost Management (HPCM)

Introduction and Update: Hyperion Profitability and Cost Management (HPCM)



Learn how the most competitive organizations use Oracle Hyperion Profitability and Cost Management (HPCM) to allocate revenue and costs to individual products, product lines, customer segments, ...

Learn how the most competitive organizations use Oracle Hyperion Profitability and Cost Management (HPCM) to allocate revenue and costs to individual products, product lines, customer segments, services, and other lines of business in order to understand which ones are truly profitable, which ones are not, and how to affect change.



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    Introduction and Update:  Hyperion Profitability and Cost Management (HPCM) Introduction and Update: Hyperion Profitability and Cost Management (HPCM) Presentation Transcript

    • Oracle Open World 2013 CON9501 - Oracle HPCM: Cost Allocations at Mercer HR Consulting​ Sep 25, 2013 Mike Killeen Vice President mkilleen@ranzal.com Stuart Croucher Senior Associate Stuart.Croucher@mmc.com
    • ► Introduction ► Business Process & Approach ► Solution Overview ► Outcomes ► Closing and Q&A Agenda
    • ► Oracle Platinum Consulting Partner - 100% Focus on Oracle/Hyperion Business Analytics (EPM/BI) – 175+ Full time EPM/BI Billable Consultants throughout the US, Canada and the United Kingdom ► EPM & BI Experience & Success – 1,500+ Oracle EPM & BI projects successfully delivered since our founding in 1996 ► Depth & Breadth of EPM & BI Service Offerings – Product Experts across the full EPM/BI Suite - Planning, HFM, HSF, HPCM, Essbase, OBIEE, DRM, FDMEE – Visioning & Roadmaps, Full Life Cycle Implementations, Tech Review & Assessments, Staff Augmentation ► Additional Value Added Service Offerings – Exalytics – Installation, Configuration & Benchmarking Services – Infrastructure Services – Design, Configuration, Performance Tuning & Upgrades – Support Services – Remote Help Desk, Lev 1 Support, Patch release Support – Training Services - Customized and Pre-Packaged EPM/BI Training Delivery ► 3 Ranzal Oracle ACEs Across EPM/BI Platform (Planning/BI, HFM & FDMEE) ► Co-Development Efforts with Oracle Product Management ► Customer Advisory Boards, Beta Testing, Certification Exam Development Edgewater Ranzal Overview & Differentiators • Workforce Planning • Balance Sheet Planning • Capital Planning & PFP • HFM • Financial Close Mgmt • Disclosure Management • HPCM • HSF • FDMEE/ERPi & EPMA
    • Dashboards & Scorecards, Financial Analytics & Reporting, Operational Analytics, What-if Analysis, Query & Reporting, Visual Exploration Financial performance, Legal, Segment & Mgmt Reporting, Financial Close HFM Optimization, Performance Lab SOX Compliance Support Strategic Finance, Planning, Budgeting, Forecasting, Workforce Planning, Capital Planning, Project Financial Planning Data Integration, Financial Data Management, Data Warehousing, Master Data Management &DRM, ETL Services, Automation Project/Program Mgmt, EPM Road Maps, Application Reviews, Business Requirements, Process Change, Documentation Installation, Upgrades, Migration, System Monitoring, Backup and Recovery, Disaster Recovery, Load Testing, Hardware Sizing, Exalytics Benchmarking Consolidation Business Intelligence Enterprise Planning Infrastructure Training & Support Services Project Management Data Services Costing & Profitability Mgmt Support Services – Infrastructure & Application Support Contracts Key Teach Course Delivery: Planning, Essbase, Financial Reporting, Smart View, HPCM, HFM, FDM, DRM, OBIEE Custom Training Delivery: Process & Reporting Edgewater Ranzal EPM & BI Service Offerings HPCM Standard & Detailed Models, Waterfall Allocations, Activity Based Costing, Customer, Product & LOB Profitability
    • Client & Project Background ► Project • Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. • Mercer's 20,000 employees are based in more than 40 countries. • Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. • Change in business focus towards a P&L approach for each Country and Business. • A tactical MS Excel solution developed for this immediate need. • The tactical solution was based upon Excel.
    • Business Process and Approach
    • Mercer needed an information management solution to address the challenges Key Solution Requirements Flexibility • Analyze different chargeback approaches to yield optimal mix of services versus costs incurred by the shared service center. • Rapidly evolve methodologies as the maturity model of the shared service center evolves. Audit & Control • Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance. Shared Methodology • Define consistent allocation and charge back methodology across all management cycles. • Ensures consistent comparisons when reviewing and updating methodology result and planning for future management cycles. Transparency • Give BU’s the detail costs they incur for the service consumed. • Also compares effectiveness of internal shared services with those of external providers to ensure efficiency. Mercer needed an information management solution to address the challenges. These needs can be abbreviated as F-A-S-T!
    • Reporting & Analysis Financial Reports Smart View for Office BI Foundation (OBIEEE/Essbase) EPMA Hyperion Planning Multi User Data Entry Task Lists & Workflow Bottoms Up Calculations Reporting & Commentary HPCM Multi-Step Allocation Modeling Validation Reporting Traceability Maps & AnalysisData synch: Costs by Account & Dept Data synch: Direct Attribution to LOB Data synch: Drivers by Account & Dept & LOB Data synch: Results by Account & Dept & LOB Shared Dimensions & Hierarchies (EPMA) HPCM & Planning – Better Together
    • Business Process & Requirements ► Process Definition 1. Creation of a “Fully Burdened” dataset. 2. Attribute the “Fully Burdened” dataset. 3. Allocate the Costs to the lowest level of the business (Entity & C2 Dimensions) ► Current State 1. A large tactical MS-Excel and MS-Access Solution – 50+ Worksheets – (Need: Transparency) 2. Difficult to integrate the process – (Need: Shared Methodology) 3. Difficult to control changes – (Need: Audit & Control) ► Future State Definition 1. To deliver an allocation solution that combines the Planning and HPCM approach 2. Solution delivered on strategic software – providing a platform for future growth 3. Ability to easily run multiple versions F-A-S-T Reqmts
    • • Rapid prototype delivered first in an Essbase cube • Parallel Development • EPMA Shared Dimensions – reduce maintenance • Data managed in a staged approach • Understand the Who’s/How’s/What’s Approach
    • The Solution
    • Staging Application HPCMSource Application Driver Data Hyperion Planning Hyperion Profitability & Cost Management Microsoft Excel HPCM Stage Management Utility Solution Architecture
    • STG 1 BONUS STG 2 PROP & ADMIN STG 3 MGTI STG 4 PRE ATTR STG 5 POST ATTR STG 6 PRE HPCM STG 7 POST HPCM STG 8 TOTAL ALLOC Source Application SOURCE DATA Source Application Business Logic – Calculations, Attributions & Allocations
    • Attributions & Allocations – Attribution Data Entry Form
    • Mercer Allocation Requirements
    • EntityBusiness Account EntityBusiness EntityBusiness EntityBusiness Department Stage 1 - Global Stage 2 - Regional Stage 4 - Business Stage 3 - Local Stage 5 - Department HPCM Model Architecture ► HPCM allocates Costs & Revenue Pools through one or more stages in a top down capacity ► Stage – Step in the allocation process that has similar pool characteristics ► Separate stages enable traceability.
    • Source Stage Project Detail Target Stage Customer Project Dept Resource Customer ProjectDriver Driver Selections – Defines what Driver Definitions to use against the Source stage, typically the dimension identified as the driver definition. Assignment Rules Definitions– Defines the member combination in the target dimension for the assignment. Assignments– Defines the source dimension combination and the target Assignment Rule Driver Definitions – Create an allocation formula/methodology that references a loaded metric within the model. 1 2 3 4 2 3 1 4 4 HPCM Model Definition Components
    • HPCM Driver Definitions and Selections
    • Key Model Validation – HPCM Stage Balancing Report
    • Key Analysis – Trace Allocations in HPCM Trace Allocation Allocation Source
    • Outcomes
    • Key Project Outcomes • Excellent visibility throughout the allocation process. • A platform for great reporting. • Ability to run multiple versions. • Low IT involvement (Run the Model). • Can answer business questions quickly. • A robust and repeatable process. • Business areas can understand their costs – challenge the data not the process. • Risk mitigation – Enterprise platform
    • Closing and Q&A Visit us at Oracle Open World in the Exhibit Hall - 747 Moscone West Edgewater Ranzal Contact Info: 108 Corporate Park Drive, Suite 105, White Plains, NY, USA 10604 US: +1-914-253-6600 E-mail: info@ranzal.com UK: +44 (0)2033 717174