KScope14 ranzal Organizational Value through Analytics


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Edgewater Ranzal's Mike Killeen, VP of technology and Oracle Ace, and Chris Churchill, VP or planning and analytics, presented "Putting the 'A' Back into FP&A - Delivering Organizational Value through Business Analytics" at KScope14.

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KScope14 ranzal Organizational Value through Analytics

  1. 1. Putting the “A” Back into FP&A Delivering Organizational Value Through Business Analytics Mike Killeen – Vice President of Technology Chris Churchill – Vice President Planning & Analytics Date: June 24, 2014
  2. 2. Agenda 2 ► Introductions - 5 Min ► The Need for Business Analytics – 5 Min ► Business Analytics Technical Architecture – 10 Min ► Business Analytics Case Studies – 25 Min ► Workforce Analytics ► Project Financial Planning ► Revenue Analytics with OBIEE ► Profitability Management with HPCM ► Upgrading to Exalytics ► Recommended Implementation Approach – 10 min ► Q&A – 5 Min
  3. 3. ► Oracle Platinum Consulting Partner - 100% Focus on Oracle/Hyperion 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
  4. 4. Dashboards & Scorecards, Mobile BI, Financial Analytics & Reporting, Operational Analytics., What-if Analysis, Query & Reporting, Visual Exploration Financial performance, Legal, Segment Reporting, Financial Close Mgmt, HFM Optimization, Performance Lab Account Reconciliation Management Strategic Finance, Planning, Budgeting, Forecasting, Workforce Planning, Capital Planning, Project Financial Planning Data Integration, FDM/FDMEE , 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 – EPM/Bi 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 Service Offerings HPCM Standard & Detailed Models, Waterfall Allocations, Activity Based Costing, Customer, Product & LOB Profitability
  5. 5. The Need for Business Analytics
  6. 6. Call Me Doing Fine Why Business Analytics? reactrecognize  Under-performing Products  Under-served Customers  Under-utilized Staff, Assets  Excess Cash  Inefficient Business Processes
  7. 7. ► Drive Towards Enterprise Planning from Financial Planning – Linking Strategic Plans Top Down to Financial Plans – Linking Operational Plans Bottoms Up Towards Financial Plans ► Making Planning & Analytics part of the every day business culture – Monthly Driver Based Rolling Forecasts vs. One Time Per Year Annual Plan – Link Budgeting to Forecasting with driver based models – Driver Accountability past Finance towards Line of Business Mangers – Provide for greater variance analysis by aligning actual operational drivers to planning and forecasting structures – Change in Role of Finance • Planning Facilitation & Management vs. data cleansing, collection, and submission • Understand internal business partners operational models ► Change in Organizational Structure – Establishment of Corporate Shared Services that HAVE to pay for the costs they incur Trends we are seeing within FP&A at our clients
  8. 8. Key Business Analytics Goal – Delivery of Strategic P&Ls
  9. 9. Challenge #1 – Information Generation Indirect Cost Assignment to Products, Services & Customers No Standard Process Standard, accepted process  Indirect Costs are tracked against supply side structures, not demand side needs. This makes measurement difficult
  10. 10. Challenge #2 – Information Delivery Statutory Reports are not Timely or Detailed Enough • What defines a profitable customer? • What is the profit contribution margin of a product or a service? • What does it cost to sell to or to service customers? • What proportion of resources does a specific customer consume? • Why hasn’t increased revenue resulted in increased profitability? Financial transactions Financial Data Consolidation (GL or HFM) Accumulator Bottom-line Results Organizational P&L
  11. 11. Challenge #3 – Technology - Ensuring Consistent Performance as Users, Data Volumes, & Frequency of Use Increases Sales/Product Managers Cost Center Managers LOB Execs. Finance10’s 100’s 1000’s 1000’s LOB/Functions Segments/Entities Departments Products & Customers User Counts Data Volumes Frequency Of Use 100’s 1000’s 10K’s 1 MM’s Qtrs Monthly Weekly Daily
  12. 12. Key Requirements of a Business Analytics Solution ► Reliability – Visibly defensible results through transparency & audit/control ► Agility – Timely reflection of results to be actionable ► Relevance – An ability to Allocate resources to the most important opportunities Financial Results Revenue & Cost Models Operational Results FP&A Senior Management
  13. 13. Business Analytics Architecture
  14. 14. INFORMATION DATA Data Warehouse IT DRIVEN • Voluminous Amts of Data • Limited User Adoption • Lacks Complex Bus Logic • Effort to Tune for Performance Dashboard/ Scorecard BUSINESS DRIVEN • Strategy Focused • Higher Maintenance • May Not Scale • Possible Data Quality Issues Developing a Business Analytics (EPM/BI) Platform
  15. 15. INFORMATION DATA Data Warehouse Dashboard/ Scorecard Consolidation & Reporting Enterprise Planning Profitability Mgmt & Analytics Pervasive Analytics MEETS BUSINESS AND IT NEEDS • Strategy Focused • Supports Business Logic • Multi-User Access • Sound Data Quality • Scales for Data • Scales for Users • Low Maintenance • FAST Performance Business Analytics is a journey, not a destination
  16. 16. Oracle Business Analytics Architecture for Finance BI Foundation: Info Delivery EPM Apps: Information Generation Master Data, Data Quality & Data Integration Tools: Information Management OpportunityExisting
  17. 17. Existing Solution Component - Hyperion Planning EPM Application Shorten Planning Cycles and Improve Business Predictability ► Powerful workflow and process management ► Intuitive interface for end user data entry ► Robust data integration ► Leverages Essbase for powerful reporting and analysis ► Scalable Web infrastructure ► Shared EPM Administration Tools
  18. 18. Existing Solution Component – Essbase OLAP Server
  19. 19. Reporting Tools Capabilities OBIEE /BIF BI Publisher Quickly modify pre-defined, high volume operational reports without IT assistance. End users can author, manage and deliver a range of highly formatted documents in familiar desktop tools like WORD and PDF. BI Answers The interface used to query an organization's data ie used to build and modify reports. Answers requests can be formatted, saved and shared with other users via BI Dashboards and Publisher or remain within Answers. BI Interactive Reports & Dashboards Dashboards provide a visual display of the most critical and meaningful information that an individual or role requires to perform their function effectively. Dashboards are interactive, allowing the user to select prompts, change views and drill down to details. Smart View for Office and/or Essbase Excel Add-In An MS Office Add-in which provides users the ability to quickly perform LIVE, ad hoc queries with multi-dimensional analysis, pivoting and drill down to analyze data within a familiar spreadsheet environment. EPM Hyperion Financial Reporting Produce professional quality financial statements and view results with live drilldowns to source transactions. Distribution to authorized users efficient. Embedded Product Reports Pre Built Reports within EPM apps, such as Traceability Maps and Stage Balancing Reports. Transactional Systems & BI Data Marts EPM/ Essbase EPMWorkspace Users Expand Productivity & Insight Through New Reporting Tools Drill Through
  20. 20. 20 Reporting & Analysis: User Guided Analysis via Dashboards
  21. 21. 21 • Packaged Profitability functionality • Computes Profitability for Units, Segments and Services • Pre-Built Framework for profitability modeling: • Pre-built Measures dimension • Support for Multiple Cost Allocation methodologies • Pre-Built Validation reporting • Graphical Interactive Traceability Maps • Genealogy Reporting shows flow from any stage to any stage • A User-Driven application • Measures, Allocates and Assigns Cost and Revenues via User Defined Rules • Finance User-facing Administration • Provides Scenario Modeling for Decision Making • Tightly integrated with the full Hyperion EPM Suite • Shared Data and Master Data via EPMA • Shared Reporting Tools like Financial Reports & Smart View for Office • Proven Technology Stack New Solution Component: Hyperion Profitability & Cost Management (HPCM)
  22. 22. Organizations need information management solutions to address the challenges. Why HPCM? To Meet Key Allocation 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 Units the detail costs they incur for the service consumed. • Compare effectiveness of internal unit services with those of external providers to ensure efficiency. Organizations need information management solutions to address the challenges. These needs can be abbreviated as F-A-S-T!
  23. 23. New Solution Component – Exalytics Engineered System Unique Features  In-Memory Analytics: Structured and Unstructured Data  Best TCO for running Pre-Packaged Oracle Analytic Applications  Advanced, Real-time analytic modules for Apps  Works seamlessly with Exadata and Exalogic Benefits  Superfast, Interactive Visual Analysis  Faster Planning & Budgeting with Richer Models  Quick to Deploy, Supports More Users  Faster, Cheaper, Better Analytics 1 TB DRAM, 40 Intel Cores, InfiniBand Planning, ERP, CRM, Profitability, Vertical-specific 80+ Pre-packaged In-memory Analytic Applications OBIEE + Endeca + Mobile In-Memory Analytic Platform Endeca TimesTen Essbase Unstructured ROLAP MOLAP I n - M e m o r y A n a l y t i c E n g i n e s ► Memory: Exalytics is designed to massively boost performance of Business Intelligence queries by processing vast amounts of data in memory ► Disk: Exadata is designed to optimize the performance of large databases where most of the query overhead is experienced whilst reading or writing from disk ► CPU: Exalogic is designed for large application servers (e.g. server farms, data centers, virtualization) with massively parallel and scalable CPU performance
  24. 24. Exalytics Use Cases – An Enabler for Business Analytics 1. Enterprise Planning • Server/App Consolidation • Bundled HW/SW Licensing 2. Profitability Applications 1. Mature Standard Models • Increase Freq. of Use • Model Complexity • What If-Scenarios • Process Parallel POV 2. Introduce Detailed Models • Larger Operational Dimensions (10K+) • Customers • Prod/SKUs • Optimize RDBMS Mart Rptg & Analysis 3. BI Reporting & Analytics 1. Increase ROLAP reporting user counts due to memory optimizations by a factor of 3x 2. Increase ROLAP Report Speed by up to 18x with In Memory Analytics • Summary Advisor • Times Ten DB 3. BIF Suite Improves Insight • Increase Adoption via Mobile Delivery • Incorporate Scenario Modeling w/ Essbase • Increase Oversight via OSSM 1. Process Maturity • Increase Freq. of Use • Rolling Forecasts 2. Drivers Maturity • Increase Users • Model Complexity • Interactive Scenarios Throughput goes up! 4. Lower IT TCO • Reduce Deploy Complexity • Reduce Lead Times
  25. 25. Business Analytics Case Studies
  26. 26. The Typical Mature Planning & Essbase Customer 26 ► Current State ► Usage is focused on excel based ad hoc analysis for finance power users and financial reports for information consumers ► Existing data sets are Finance and Planning focused ► Opportunities ► Expand productivity and user adoption ► Expand toolset to facilitate “user guided analysis” & dashboards ► Automate published report generation and BOD results ► Provide Greater Insight into key drivers of Financial Performance ► Accounting Data – Create Universal Drills that link GL and Sub Ledger Data ► Link Financial to Operational Details – provide transparency into budgeted and actual operational driver metrics that support financial results ► Enrichment – enhance information generation function via incorporation of additional hierarchies, attributes, and analytical calculations/allocations
  27. 27. 27 Mature Current State Systems Overview FP&A Current State: -Operations – Input Budgets -FP&A – Consolidate Results & Produce Reports for Management -Accounting – Actual Reporting & Drill Through Key – Necessary Foundational Elements are in place! Acctg Ops Sr Mgmt Rpts
  28. 28. Rpts Sr Mgmt 28 Potential Future State based on typical client… Acctg Ops Ops FP&A Rpts 1. Rev Analytics 1. HR Analytics 1. Proj Analytics 1. KPIs 1. Expand Schema 3. Expand Hierarchies O B I E E Dashboards Analysis 3. Automate 2 Sr Mgmt Future: 1. Link Fin to Ops for Actuals & Plan 2. Deploy Tools to Expand User Adoption 3. Improve Productivity FP&A Profitability
  29. 29. Case Study – HR Analytics Expansion
  30. 30. Workfo rce ProjectsCapital Cost Center Plan Margin Plan Work Force Plan ASO CONSOL FIXED ASSETS Legacy Data IT Reporting Data Mart PPM Time Entry 1 2 3 4 5 6a 6c 7a 7b 8 8 10 GEN LEDGER 6b 11 12 * External employees of the Employee dimension will include Vendor and Contract rollups as well as the Contractor ID to be the Employee ID. PROJECT FINANCIAL PLANNING 9 Position ID Case Study – IT Projects Expansion
  31. 31. Case Study – Revenue Analytics 31 Client Overview ● From its start in 1921 as a manufacturer of clinical thermometers, Terumo Corporation now provides worldwide medical products in such areas as hollow-fiber technology, blood- management systems, and endovascular therapy. ● The high-quality medical products of Terumo Corporation are used in more than 160 countries and generate over $3 billion in global annual sales. Challenges / Opportunities ● Accurate and timely Sales and Marketing information was not available to management or staff. ● With little or no visibility into detailed product, customer, staff sales and marketing data, planning and tracking to plan was difficult. ● Field representatives often worked in lack-of- internet conditions, preventing access to data from any devices. Implemented Solution ● An OBIEE Sales and Customer Analysis and Reporting solution involving highly interactive and complex dashboards, analyses, reports, prompts, agents, actions, and schedules. ● Solution utilizes Hyperion Essbase as its data store and provides both traditional and mobile visibility into summary and detail data sets for executives and sales associates alike. ● OBIEE mobile was provided and offline content enabled. ● Data Sourced from Essbase and JDE. Results ● Finance, Sales, Marketing, and Executives have the detailed insight into timely Sales and Marketing information. ● From the desktops and mobile, online and offline, critical business data is available in personalized format. SEE DEMO IN APPENDIX Client Since 2012 Solution Delivered 2012 Vertical Pharma-Medical Devices Products OBIEE
  32. 32. Mercer – Country & LOB Profitability 32 Implemented Solution ● Edgewater Ranzal experts took only 4 months to build, test and put into production an HPCM application. ● Sourced data from Planning. ● Delivered multi-step, multi-stage Attributions & Allocations ● Provided traceability map reports. ● Developed self-service standardised reports for business partners to consume allocation results. Results ● HPCM offers an outstanding accurate, transparent and flexible client profitability and cost management system that supports their daily client activities. ● Cost allocations can be traced end-to-end across the entire organisation, giving a clear view of profitability and understanding of cost-to-serve for each business area and region. ● User- friendly self-service application negating the need to ask IT whenever allocations need to be changed. Client Since January 2008 Date Services Delivered October 2011 Vertical HR Consulting Products HPCM, Planning Client Overview ● Mercer is a human resource and related financial services consulting firm headquartered in New York City. ● The world's largest human resources consulting firm providing retirement and health benefits services, human capital surveys, outsourcing services and other financial services to a large client base. ● Has over 18000 employees in 180 cities in 40 countries. Challenges and Opportunities ● A powerful, flexible, easy-to-use client profitability and cost management system to accurately allocate costs and clearly show profitability across the entire organisation. ● A transparent, out-of-the-box solution to provide all the features for improved profitability and cost management while offering critical interoperability and self-service functionality. ● Interface with existing HFM implementation. Technology ● HPCM. ● Planning
  33. 33. Staging Application HPCMBudget Application Driver Data Hyperion Planning Hyperion Profitability & Cost Management Microsoft Excel HPCM Stage Management Utility Application Architecture Set POV Variables Load Costs Load Driver Metrics Attribute Data Load Pools Update Alloc Rules Run Allocs ValidatePublish
  34. 34. Country & LOB Profitabilty – HPCM Model Definition
  35. 35. Country & LOB Profitabilty – Model Validation & Reporting
  36. 36. Exalytics Customer Story 36 Client Overview ● Siemens was founded in 1847 and is based in Munich, Germany. It has over $100B in revenue and operates in the energy, healthcare, industry, and infrastructure and cities sectors worldwide. In the healthcare sector, the company develops manufactures, and markets diagnostic and therapeutic systems, devices, and consumables, as well as information technology systems for clinical and administrative purposes. Challenges / Opportunities ● Current environment did not support IT’s future state operating system, internet browser, server database and desktop business applications ● Performance of complex Planning application for Health Services was slow. Needed to improve to run multiple what-ifs for decision processes. ● Five Business Units with different HFM and Planning applications needed to be upgraded. ● Budget process was to start in early February creating a tight timeline to complete the upgrade. Implemented Solution ● Implemented the latest version of Oracle/Hyperion. ● This migration included all relevant patches and the implementation of Oracle’s new Exalytics box. ● Supported all facets of the installation and configuration which included: Networking, Operating System and Virtualization of Linux environment. ● Migrated applications and developed automated scripts for back up and updates. ● The new environment improves the user experience, provides the new high speed Exalytics engine and reduced the number of servers required for each environment. Results ● Project completed on time and under budget. ● Business Units have migrated to the new environment and started their budget processes. ● Reduced Planning calculation time from 4+hours to 40min. Client Since 2012 Solution Delivered 2013 Vertical Healthcare-Medical Equip Products Infrastructure - Upgrade
  37. 37. Recommended Implementation Approach
  38. 38. Recommended Initial Engagement 1. FP&A Reporting Roadmap & Action Plan – A key to any formal Analytics initiative is the vision of a desired future state along with an action plan for achieving this vision – Resources and priorities will certainly change over time, but being able to reference back to an agreed vision and roadmap will greatly assist in maintaining the proper focus, managing stakeholder expectations, and analyzing team performance 2. OBIEE on Essbase Prototype – “Quick Win” helps to build key stakeholder support for future phases – Delivery of Sandbox BI environment and KPI dashboards for Sr. Mgmt. 3. Core Team OBIEE Product Training (Optional) – Deliver OBIEE Product Training to Financial Systems Team Members • OBIEE Data Model Development for Essbase • OBIEE Interactive Analysis & Dashboard Development
  39. 39. 1 – FP&A Reporting Roadmap & Action Plan ► Current State Analysis – Current Planning & Essbase Application Configuration – Current OBIEE Environment Application Configuration – Key Business Processes and System Organizational Usage – Current Reporting & KPI Inventory ► Future State Needs Analysis – Primary Data Model/Reporting Needs and Relative Prioritization – Target End User Community & Delivery Mechanism ► People, Process, Data & Technology Gap Analysis ► Key Deliverables: – 1 Year Solution Architecture, Data Model and Process Usage Recommendations – 1 Year Phased Implementation Timeline – Risks & Constraints Document
  40. 40. Case Study – BI Action Plan 40 Implemented Solution ● Over 6 weeks, Ranzal provided several deliverables and education as part of our Reporting Strategy engagement. Results ● Delivered reporting tool decision framework to assist in determining right tool for job. ● Provided solution architecture for expanded finance team to understand usage of future systems landscape● Created inventory and recommendations for near term financial reporting deliverables● Outputs formed basis for go forward book of work in program delivery, and served as both IT blueprint and core finance team communication tool Client Since March 2011 Date Services Delivered 2012 Vertical Financial Services Products EPM/BI Client Overview ● Old Mutual of South Africa operates as a long-term savings, protection and investment company. It provides investment management and life assurance-based solutions, which address protection and retirement savings needs; and banking, short-term insurance, and asset management solutions in Africa. It is part of the Old Mutual group of companies. Challenges and Opportunities ● Challenge: As part of Finance Transformation, OMSA implemented an entire suite of Oracle ERP/EPM & BI Products. Perceived redundancy in tools and data stores created confusion in the finance community as to “what to do where?” ● Opportunity: Established a “thin ledger” by leveraging additional technologies Technology ● EPM, OBIEE, OBIA, R12 EBS, Fusion Financials, DRM
  41. 41. 2 - OBIEE Sandbox & Prototype ► Time Boxed Allowance for OBIEE Delivery Against Essbase ► Recommended Prototype Components – Integrated OBIEE Sandbox Infrastructure Installation and Configuration in one environment – “Mini-Design” session for report development against a static copy of an existing Essbase ASO Cube – Allowance to create up to 5 additional KPIs in cube copy, and create necessary updates for OBIEE – RPD Build Against Essbase – Allowance for OBIEE report delivery (see Appendix for sample flow) • High Level Interactive Dashboard for KPIs • Drill Link into Interactive Dashboard Against Essbase • Drill Link into Interactive Analysis Against Essbase • Drill Through to Dummy data in relational repository (sample only, not live)
  42. 42. Sample Deliverable – Prototype Scorecards, Dashboards & Analysis
  43. 43. 3 - Ranzal Delivery of Key Teach Training (Optional)
  44. 44. Closing and Q&A
  45. 45. Closing 45 ► The mature planning client has the necessary planning and financial reporting foundation in place to drive exponential business value while leveraging existing technology & resource investments ► Trends we are seeing from our client base in a similar positions include the following: ► Enriching Traditional Accounting & Planning Data Sets ► Providing for “Universal Drill” Capabilities linking GL Actuals with necessary sub-ledgers ► Enriching Financial Data Sets for Management Needs via Profitability & KPI calculations ► Creating Hybrid Views of Operational and Financial Data to facilitate more detailed variance analysis ► Expand User Adoption & Productivity ► Mobile Ready, Self Service Dashboards and Scorecards for Senior Management ► “User Guided Analysis” for Operational Finance Teams (e.g. IT Finance, Marketing Finance) ► Automated Board and Budget Book Presentations via Smart View and Financial Reports ► Ranzal Recommends for clients an initial 4 to 5 week engagement to ► Establish the foundational solution architecture & action plan for the upcoming year ► Establish Buy In for the Dash boarding and Interactive Analysis Tools via a Prototype ► Ranzal is best suited to deliver because of our our thought leadership in Planning & BI convergence, our Oracle relationships, and our prior successes with BI implementations and action plans on prior engagements
  46. 46. Group Discussion Wrap Up & Next Steps 46 Edgewater Ranzal 108 Corporate Park Drive, Suite 105 White Plains, NY 10604 E-mail: info@ranzal.com