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Day 2: - Optimizing Data for EPM
Lecture at SP Jain Institute of Management
Executive MBA, Singapore – Oct 2009

Ravi Tiru...
Agenda


• Understanding the EPM Data challenges
• Master key data management process
• Products and solutions:
   – EPM
 ...
Enterprise Performance Management System


                                 EPM Workspace


       Performance Management
...
Performance Management Applications
                 Strategic Planning                                              Plann...
Transparency Challenges
Financial Consolidation At-a-Glance

     Collect Data                 Calculate & Adjust                    Report




• ...
The Financial Consolidation Challenge
                Deliver High Value and Reduced Cycle Times



      Average         ...
Operational Challenges


Subsidiary 1
                    Accounting Differences
        ¥           • Charts of accounts•...
Financial Close and Reporting Today
           …a controlled process is not easy to achieve!


• Lengthy and cumbersome cl...
Performance Management Applications
                 Strategic Planning                                              Plann...
Fundamental Capabilities


Capability                Detail

Planning and             Fully embedded into BI and Microsoft...
Challenges - Excel/Manual Based Processes



 – Lack of process
 – Lack of integration
 – Lack of confidence
 – Rigid, cos...
Today’s Integrated Planning Process
               Sweat and Excel

                            Financial Planning

 Long-...
Integrated Business Planning
   Bridging the Finance-Operations Disconnect

                            Financial Planning...
Integrated Business Planning

                              Profit targets, prices, costs,
                              i...
Differences between Strategic Operational
            Planning and Financial Planning


1.   “Network” models
2.   Plannin...
Integrated Planning Drives Key Requirements
                         Need for Core Technology Innovation

 1. Modeling of ...
Budgeting Process is Highly Inefficient

                                      • Time – takes too long, results
          ...
Streamline Planning, Budgeting and Forecasting

                       •   Centralized, not distributed
                  ...
Reduce Fragmentation in Financial Modeling



                                                  • Complex spreadsheet mode...
Enabling an Iterative Planning Process


                                               Finance

               Review Pla...
Performance Management Applications

                 Strategic Planning                                              Plan...
Integrated Corporate Finance Modeling Allows You
               to Create a Complete Plan



                             ...
Financial Modeling

Challenge


       Missed market opportunities




        Limited cost-benefit analysis




        A...
Scenario Modeling
   Explore Options for Organizational Restructuring


                         Scenario 3
              ...
Risk Analysis

    Possibilities                                     Probabilities
    Thinking in Single Point Scenarios ...
Predictive Modeling – Drivers Impact




                30
Integrate Strategic Planning Budgeting & Forecasting

   Strategic Plan

   Long-term planning                  Optimize c...
Profitability Management Questions


• What defines a profitable
  customer?
• What is the profit contribution
  margin of...
Enterprise Performance Management System


                                 EPM Workspace


       Performance Management
...
Across the Enterprise and Beyond

                             Corp


Supplier                                          Cu...
Business Intelligence


                  Scorecard

                  Dashboards

                  EUQR

               ...
Operational Challenges
    Analyses, Reports
                                            Executives



    Sales          ...
Valuable Insights Often Require Data from Multiple
            Departments and Sources


Customers                        ...
The Analytic Application Problem is Below the Surface



                             DASHBOARDS
  Information Delivery
  ...
What’s “Above the Surface”?

Metrics and Attributes        Reports & Dashboards
So what’s Below the Surface?




Extracts   Staging      Work Flows    Transform      Unified                 Metadata
   ...
What Percentage of Each Layer is Configured?


 20% +      10% +          10% +       10% +       20% +          20%      ...
Data Quality Control Points
BI Approach :From Warehouse to Workspace

Data Sources         Data Warehouse            BI Foundation                    ...
BI Applications Architecture
                                                                                     Role Ba...
Dashboards and Scorecards Differing Perspectives

                      Past                         Future




•   Busine...
Snapshot of Dashboard
Snapshot of Dashboard




                        50
Snapshot of Scorecard
Snapshot of Scorecard
Process & Steps to build a BI Application
1.    Research business requirements for processes & users
2.    Design the unde...
Built-in Best Practices - Metrics

Example Financial Analytics Metrics
Receivables               Payables                 ...
Ensuring Alignment to Corporate Objectives


               Headquarter
                                                  ...
Aligning to Corporate Strategy



•   Accountability Maps
•   Strategy Maps
•   Cause and Effect
    Maps




            ...
Building a Scorecard

                       Consolidated   Budget          Strategic
                       Actuals      ...
How the Scorecard System Works




Send e-mail alert                                        Fix
when a problem is
detected...
The Business Intelligence Continuum


                              Strategic    Dynamic         Will our cash balances ta...
Solve a Continuum of BI Needs

                        Strategic   Dynamic




                                           ...
A Fusion of BI & Business Processes


• Visibility & Business Insight
   – Understand Business Impact
                    ...
Driving action from insight – Empowering Decisions


                                                   Drive sales & mark...
Technology Value Chain

                                        Where Value is Created



                                ...
In Summary : Alignment and Accountability are
                  Key to Driving Enterprise Performance…

                  ...
Applying Technology to Performance
         Management- Fourth time lucky


                                         CONVE...
CONVERGENCE

                    People




Communication      PAYOFF       Computing




                  Information
Back Up Slides
Performance Management - Best Practices

• Strategic Planning
  – Definition of goal
• Tactical Planning
  – Tactics, init...
Why Planning Fails
•   Planning and reporting the wrong stuff
•   Poor ownership and accountability
•   Tying plan achieve...
Best Practice for leveraging Technology


•   Integrate business and technology planning
•   Break down the functional wal...
Common Enterprise Information Model
         Single Consistent View and User Self-Sufficiency

  PRESENTATION LAYER
     U...
Simple Source On Mapping Rule



                     Identify the        Identify the
Identify the                       ...
Ensuring Financial Data Quality

              Financial Data
              Audit Trail
              Trial Balance to Rep...
An Integrated approach to BI & DW


Elements of a BI Initiative                               Success Factors


          ...
Pre-Built, Pre-Mapped, Pre-Packaged Insights

1   Pre-built warehouse with more than 16                 3   Pre-mapped met...
The New BI approach
 visualization        Dashboards
              Consume
Analytics                    Scorecards
       ...
Optimizing Data for EPM
Optimizing Data for EPM
Optimizing Data for EPM
Optimizing Data for EPM
Optimizing Data for EPM
Optimizing Data for EPM
Optimizing Data for EPM
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Lecture at SP Jain Institute of Management on EPM and BI

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  1. 1. Day 2: - Optimizing Data for EPM Lecture at SP Jain Institute of Management Executive MBA, Singapore – Oct 2009 Ravi Tirumalai Oracle Corporation,, Asia Pacific
  2. 2. Agenda • Understanding the EPM Data challenges • Master key data management process • Products and solutions: – EPM – Scorecards – Dashboards & KPI’s
  3. 3. Enterprise Performance Management System EPM Workspace Performance Management BI Applications Applications Business Intelligence Foundation Middleware OLTP & ODS Oracle Data OLAP SAP, Oracle, Siebel, Excel Business Systems Warehouse PeopleSoft, Custom XML Process Data Mart
  4. 4. Performance Management Applications Strategic Planning Planning and Budgeting Set Strategic Cascade Targets Objectives Treasury Long-Term Forecasting Detailed Budgeting Strategies Planning Corporate Allocate Resources Development Master Data Business Rules Metrics/KPIs Targets, Plans & Actuals Financial Close Process Cost and Profitability Management Define Costing Methods Internal External Data Report & Analyze Consolidate Reporting & Reporting & Define Cost Drivers Cleansing Analysis Compliance Perform Allocations 4
  5. 5. Transparency Challenges
  6. 6. Financial Consolidation At-a-Glance Collect Data Calculate & Adjust Report • Gather from multiple & • Apply FASB and IFRS • Generate financial disparate applications consolidation rules statements, • Store data in a centralized • Perform currency translation managerial reports, repository & aggregation and perform ad hoc analysis “Consolidations applications are seeing a resurgence after what was considered a maturing of this market, driven primarily by compliance issues in the United States (driven by Sarbanes-Oxley) and worldwide (driven by the pending International Financial Reporting Standards).” -- Kathleen Wilhide and Henry D. Morris
  7. 7. The Financial Consolidation Challenge Deliver High Value and Reduced Cycle Times Average 6 Days 12 Days Collect data Close Adjustments Report Analyze Currency Management I/C Legal Subsidiaries External World Class <2 Days 6 Days More time! Collect Close Adjustment Report Analyze and Forecast Source: Hackett Group Benchmarking-Solutions Book of Numbers 7
  8. 8. Operational Challenges Subsidiary 1 Accounting Differences ¥ • Charts of accounts• Currencies • • Accounting methodsCalendars Parent Company Subsidiary 2 Manual, Error-Prone Processes • Data extraction, transformation, and load £ • Adjustments and eliminations Consolidation $ Joint Venture Complex Ownership Structures • Minority interest • Intercompany Rs • Cross holding transactions Multiple, Fragmented Systems Affiliate  Lengthy close process with weak internal controls €  Rigid systems that cannot exploit new opportunities  Disconnect between strategy and execution
  9. 9. 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 Kenneth Lay • No control over the process • Too many spreadsheets Accounting scandals have brought financial reporting …AUDIT ISSUES into focus as never before
  10. 10. Performance Management Applications Strategic Planning Planning and Budgeting Set Strategic Cascade Targets Objectives Treasury Long-Term Forecasting Detailed Budgeting Strategies Planning Corporate Allocate Resources Development Master Data Business Rules Metrics/KPIs Targets, Plans & Actuals Financial Close Process Cost and Profitability Management Define Costing Methods Internal External Data Report & Analyze Consolidate Reporting & Reporting & Define Cost Drivers Cleansing Analysis Compliance Perform Allocations 10
  11. 11. Fundamental Capabilities Capability Detail Planning and Fully embedded into BI and Microsoft Office Analysis for real-time reporting and analysis The ability to model at the operational level, Modeling assessing impact to the overall strategic plan See the business impact of changing business drivers What-if to make intelligent decisions Technology that allows the entire user community Collaboration to communicate and plan in real time as well as offline Bi-directional planning capabilities Top-down / Bottom-up to promote accuracy and accountability
  12. 12. Challenges - Excel/Manual Based Processes – Lack of process – Lack of integration – Lack of confidence – Rigid, costly to maintain – Inability to act 12
  13. 13. Today’s Integrated Planning Process Sweat and Excel Financial Planning Long-Term Financial Working Treasury Profitability Performance Financial Planning & Capital Management Management Scorecards Planning Budgeting Planning Human Product Demand Customer Supply Logistics Resources Performance Management Management Planning Planning Planning Management Functional Operational Planning ERP System 15
  14. 14. Integrated Business Planning Bridging the Finance-Operations Disconnect Financial Planning Long-Term Financial Working Treasury Profitability Performance Financial Planning & Capital Management Management Scorecards Planning Budgeting Planning Strategic Integrated Financial Operational Impact Performance Modeling Analysis Modeling Human Product Demand Customer Supply Logistics Resources Performance Management Management Planning Planning Planning Management Functional Operational Planning ERP System 17
  15. 15. Integrated Business Planning Profit targets, prices, costs, investment limits, working capital Financial Modeling and Strategic Operational Modeling Planning and Planning Constrained Op Plans Baseline Op Plans Operating Policies Functional Operational GL Accounts Accounting Periods Budget Data Planning Entities Actual Master Data Execution Plan Transactional Data ERP
  16. 16. Differences between Strategic Operational Planning and Financial Planning 1. “Network” models 2. Planning Frequency 3. Concept of “Lead Time” 4. Data Driven Model Relationships 5. Constraint Based
  17. 17. Integrated Planning Drives Key Requirements Need for Core Technology Innovation 1. Modeling of operational constructs – Rich expressiveness in modeling & calculation logic – Complex dependencies, relationships, transformations – Declarative calculations, not scripted 2. Rapid analysis of cross-functional impact • “Change anywhere, analyze everywhere” • Evaluate financial desirability & operational feasibility • Interactive response times 3. Robust analytic transaction framework 1 1 • Scenario management & change isolation 2 2 • Reconciliation of concurrent plan changes 3 3 • System of record for plan changes: audit trails 20
  18. 18. Budgeting Process is Highly Inefficient • Time – takes too long, results obsolete • Quality – political/negotiation, not Senior Management reflective of business • Cost – many wasted resources, dubious benefits • Flexibility – lack of responsiveness to changes FP&A Group Dept A Dept B Dept C
  19. 19. Streamline Planning, Budgeting and Forecasting • Centralized, not distributed • Short budget cycles • Collaboration across organization • Consistent assumptions and calculations • Accurate data and plans • Accountability • Align top-down with bottom-up • Driver-based planning • Rolling forecasting
  20. 20. Reduce Fragmentation in Financial Modeling • Complex spreadsheet models Acquisitions • No consolidated view Banks Investors Divestitures • Spreadsheets are error prone • Limited accounting integrity • Lack of integrated models Board of Directors make scenario analysis Senior Management cumbersome • Long simulation times Treasury Corporate Long-Term Planning Development
  21. 21. Enabling an Iterative Planning Process Finance Review Plan Exceptions Evaluate Alternatives • Analyze critical gaps • Create what-if scenario’s between financial and on plan revisions operational plans • Rough-cut modeling • Resolve constraints Update Plan of Record Assess Business Impact • Approve plan revisions • Compare impact of • Submit plan changes back to alternatives on key planning and execution systems financial and operational metrics Marketing Sales Supply Chain  Manage collaboration  Enable fast decision-making  Assess cross-functional impact  Perform interactive scenario analysis 24
  22. 22. Performance Management Applications Strategic Planning Planning and Budgeting Set Strategic Cascade Targets Objectives Treasury Long-Term Forecasting Detailed Budgeting Strategies Planning Corporate Allocate Resources Development Master Data Business Rules Metrics/KPIs Targets, Plans & Actuals Financial Close Process Cost and Profitability Management Define Costing Methods Internal External Data Report & Analyze Consolidate Reporting & Reporting & Define Cost Drivers Cleansing Analysis Compliance Perform Allocations 25
  23. 23. Integrated Corporate Finance Modeling Allows You to Create a Complete Plan Strategic Planning Value Management Treasury Long-Term Strategies Planning Corporate Development Top-Down Target Setting Covenant/Ratio Analysis Mergers & Acquisitions Contingency Planning Funding Alternatives Valuation Analysis Strategy Screening Rating Agencies Divestitures 26
  24. 24. Financial Modeling Challenge Missed market opportunities Limited cost-benefit analysis All scenarios not considered Not enough focus on cash flow 27
  25. 25. Scenario Modeling Explore Options for Organizational Restructuring Scenario 3 Scenario 2 • Copy and modify Original State Scenario 1 existing hierarchies to easily model options – Move – Add – Remove • Run consolidation on modified hierarchy to see potential outcome – Balance Sheet – Income Statement – Statement of Cash Flows – Managerial Reports
  26. 26. Risk Analysis Possibilities Probabilities Thinking in Single Point Scenarios Thinking in Ranges • Only 3 possible outcomes • Monte Carlo simulation shows full range of • Limited view of risk outcomes • What are most important risk factors? • Illustrates probability of outcomes • What are the odds I’ll miss the target? • Immediate visibility into inherent risk • Which outcome is most likely? • True risk analysis for financial models 3 possibilities… No probabilities… All possibilities… Clear probability… 29
  27. 27. Predictive Modeling – Drivers Impact 30
  28. 28. Integrate Strategic Planning Budgeting & Forecasting Strategic Plan Long-term planning Optimize capital structure Corporate development Shareholder value Seed targets and assumptions Budget Cascade BU Targets Consolidate budgets Prepare detailed financial plan Budget Reviews Update strategic plan with latest forecast Seed budget Forecast YTD Capture forecast assumptions Actuals Performance reviews Rolling Forecast Driver-based planning Key performance indicators Months / Quarters 1 Year 3 – 5 Years
  29. 29. Profitability Management Questions • What defines a profitable customer? • What is the profit contribution margin of a product or a service? • What does it cost to sell or service customers? • What proportion of resources does a customer consume? Why hasn’t reducing costs increased profitability? 32
  30. 30. Enterprise Performance Management System EPM Workspace Performance Management BI Applications Applications Business Intelligence Foundation Middleware OLTP & ODS Oracle Data OLAP SAP, Oracle, Siebel, Excel Business Systems Warehouse PeopleSoft, Custom XML Process Data Mart
  31. 31. Across the Enterprise and Beyond Corp Supplier Customer Division Division Partner
  32. 32. Business Intelligence Scorecard Dashboards EUQR Data Foundation
  33. 33. Operational Challenges Analyses, Reports Executives Sales Marketing Operations Finance Sales Marketing Operations Operations Finance Finance Data Data Data 1 Data N Data 1 Data N Data IT Warehouse • Delayed, inaccurate reporting Cross-functional analysis only by IT • Conflicting, departmentally-biased results Sub-optimal enterprise performance 36
  34. 34. Valuable Insights Often Require Data from Multiple Departments and Sources Customers Suppliers HR/Workforce Procurement Distribution Operations Marketing Finance Service Sales Customers Suppliers Customers Suppliers How does call center agent tenure, training, & compensation affect efficiency and cross-selling performance? How does supplier performance impact customer satisfaction and revenue? How do I proactively manage risks of my receivables portfolio? 37
  35. 35. The Analytic Application Problem is Below the Surface DASHBOARDS Information Delivery “Visible” “PLUMBING” Everything Else “Under the Surface” Mappings to multiple applications and data transformation all take expertise and time Upgrades
  36. 36. What’s “Above the Surface”? Metrics and Attributes Reports & Dashboards
  37. 37. So what’s Below the Surface? Extracts Staging Work Flows Transform Unified Metadata & Area & Execution & Dimensions Change Plans Loads Fact Tables & Data Aggregates Capture Presentation Account ID Physical Logical ∑
  38. 38. What Percentage of Each Layer is Configured? 20% + 10% + 10% + 10% + 20% + 20% 40% 50% Extracts Staging Work Flows Transform Unified Metadata & Area & Execution & Dimensions Change Plans Loads Fact Tables & Data Aggregates Capture Presentation Account ID Physical Logical ∑
  39. 39. Data Quality Control Points
  40. 40. BI Approach :From Warehouse to Workspace Data Sources Data Warehouse BI Foundation Workspace (BI Server) PRESENTATION LAYER •Single Database •Interactive Dashboards • User Roles, Preferences •Multiple schemas, • Simplified View •Ad Hoc Analysis logical separation • Logical SQL Interface •Reporting & Publishing •Staging Data Layer SEMANTIC OBJECT LAYER (SDL) •Disconnected & Mobile • Dimensions Analytics •Foundation Data • Hierarchies Layer (FDL) • Measures •Proactive Detection & • Calculations Alerts • Aggregation Rules •Access and • Time Series •MS Office Integration Performance Layer PHYSICAL LAYER Consume (APL) Manage Acquire • Map Physical Data • Connections • Schema Security
  41. 41. BI Applications Architecture  Role Based Dashboards BI  Analytic Workflow Dashboards by Role Presentation  Guided Navigation Services Reports, Analysis / Analytic  Security / Visibility Workflows  Alerts & Proactive Delivery Administration Metrics / KPIs  Logical to Physical Abstraction Layer Metadata  Calculations and Metrics Definition Logical Model / Subject Areas BI Server  Visibility & Personalization Physical Map  Dynamic SQL Generation Data Warehouse / Data Model  Abstracted Data Model Direct  Conformed Dimensions Load Process Access to  Heterogeneous Database support DAC Source Data Staging Area ETL  Database specific indexing Extraction Process  Highly Parallel  Multistage and Customizable  Deployment Modularity Oracle SAP R/3 Siebel PSFT EDW Copyright © 2008, Oracle and / Federated Data Sources Other or its affiliates. All rights reserved. - Internal Use Only
  42. 42. Dashboards and Scorecards Differing Perspectives Past Future • Business results Alerting • Strategy deployment • Operational and strategic Benchmarking • People & team scoring • Root cause analysis Metrics • Accountability maps • Guided navigation Graphics • Management processes Reporting • Initiative tracking Metadata • Cause & effect • Collaboration Dashboards Scorecards Dashboards: Why did I miss Scorecards: How does my goal my goal? support the corporate strategy? 48
  43. 43. Snapshot of Dashboard
  44. 44. Snapshot of Dashboard 50
  45. 45. Snapshot of Scorecard
  46. 46. Snapshot of Scorecard
  47. 47. Process & Steps to build a BI Application 1. Research business requirements for processes & users 2. Design the underlying logical model – KPIs, Dimensions etc These steps 3. Architect physical data model – Fact tables, Aggregates etc require different types of BI, ETL 4. Buy and configure a database management system to store and DB information technology 5. Buy an ETL tool to extract, transform and load data from the transactional tables These steps require 6. Develop ETL programs based on an intimate understanding significant of transactional data structures resources with specialized skills 7. Buy a BI tool for interactive end user access – Ad-Hoc, / expertise Dashboards, Alerts, Offline, MS Office etc. 8. Develop Dashboards & KPI, Hierarchies and prompts These steps typically take a 9. Integrate Security: authorization, authentication and auditing long time to 10. Integrate user experience with transactional applications perfect as knowledge of 11. Perform rigorous performance testing and QA best practices is 12. Manage changes to BI Apps – because of upgrades and learned updates to the transactional systems
  48. 48. Built-in Best Practices - Metrics Example Financial Analytics Metrics Receivables Payables General Ledger Profitability AR Balance AP Balance Balance Sheet Profitability Returns • DSO • DPO • Cash • Return on Equity • Closing Group Amt • Closing Group Amt • Accounts Receivable • Return on Assets • Credit Limit Used % • Total AP Overdue Amt • Debt to Equity Ratio • Return on Capital • Total AR Overdue Amt • Overdue Amt to Total % • Current Ratio Margins AR Aging AP Aging Asset Turnover • Gross Margin % • AR Aging 1-30 Amt • AP Aging 1-30 Amt • AR Turnover • Operating Margin % • AR Due 1-30 Amt • AP Due 1-30 Amt • AP Turnover • EBT Margin % • AR Overdue 1-30 Amt • AP Overdue 1-30 Amt • Inventory Turnover • Net Income Margin % Payment Performance Payment Performance • Cash Cycle Product Profitability • AR Payment Days • AP Payment Days • Fixed Assets Turnover • Revenue • AR Weighted Days • AP Weighted Days Cash Flow • Product Gross Profit • Times Paid Before Due • Times Paid Before Due • Operating Cash Flow • Product Operating Profit AR Transactions AP Transactions • Investing Cash Flow Customer Profitability • AR Avg Invoice Amt • AP Avg Invoice Amt • Financing Cash Flow • Revenue • AR Credit Memo Amt • AP Avg Payment Amt • Net Cash Flow • Customer Gross Margin Sample Pre-Built Dashboards Financial Controller Receivables Manager Payables Manager Department Manager • Balance Sheet • AR Balance • AP Balance • Budget Vs Actual • Cash Flow • Payments Due • Payments Due • P&L • Budget Vs Actual • Effectiveness • Effectiveness • Product Profitability • P&L • Invoice Details • Invoice Details • Customer Profitability
  49. 49. Ensuring Alignment to Corporate Objectives Headquarter Objectives Subsidiary 1 Subsidiary 2 Subsidiary 3 Critical Critical Critical Success Success Success Factors Factors Factors Actions Actions Actions
  50. 50. Aligning to Corporate Strategy • Accountability Maps • Strategy Maps • Cause and Effect Maps 56
  51. 51. Building a Scorecard Consolidated Budget Strategic Actuals Goals Long Term Goals Financial Actuals Target YEAR 1 Target YEAR 5 Customer Internal Learning & Growth ERP, CRM, HR, Other (Oracle, SAP…)
  52. 52. How the Scorecard System Works Send e-mail alert Fix when a problem is detected SCORECARD Analyze E-MAIL ALERT STRATEGY ANALYSIS 58
  53. 53. The Business Intelligence Continuum Strategic Dynamic Will our cash balances take us through this crisis? What if we rolled out this product nationwide? What if demand falls short of forecast? Past Oriented Future Oriented Which customers spend the most? What is the Q4 revenue forecast? What did this customer buy? Which customers are most profitable? Operational Static
  54. 54. Solve a Continuum of BI Needs Strategic Dynamic Modeling Past Oriented Future Oriented Advanced Analytics Ad-Hoc Query & Reporting Standardized Reporting Operational Static
  55. 55. A Fusion of BI & Business Processes • Visibility & Business Insight – Understand Business Impact Business Process BI & BAM • Action From Insight – Empower Business Users Business Process BI • Insight Driven Business Processes – Business Intelligence Services for integrated insight and reporting BI Business Process
  56. 56. Driving action from insight – Empowering Decisions Drive sales & marketing promotions Enhance Customer Satisfaction Escalate and rectify approvals issues Business Process Initiate employee Business Intelligence Dashboards, Alerts, Reports education initiatives Remove production bottlenecks
  57. 57. Technology Value Chain Where Value is Created Syn Struct Collect Store the Use ure sis Filter Digets External By Decision Optimized Aggregate Assess Internal By Responsibility for Speed Relate Decide Extract Act
  58. 58. In Summary : Alignment and Accountability are Key to Driving Enterprise Performance… • Develop strategies and goals • Define key initiatives and KPIs • Revisit Goals Set • Model scenarios • Update Models Goals • Update Plans • Reallocate Resources Align Plan Insight • Allocate strategic Performance targets • Financial & Statutory Action • Financial budgeting • Management Reporting • Operational planning • Compliance Report Monitor • Rolling forecasts • 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
  59. 59. Applying Technology to Performance Management- Fourth time lucky CONVERGENCE NETWORK INFORMATION DATA 1960 1970 1980 1990 2000 2010
  60. 60. CONVERGENCE People Communication PAYOFF Computing Information
  61. 61. Back Up Slides
  62. 62. Performance Management - Best Practices • Strategic Planning – Definition of goal • Tactical Planning – Tactics, initiatives, resource allocation • Financial Planning – Preparation/consolidation of plan • Management Reporting • Forecasting • Business Risk Management
  63. 63. Why Planning Fails • Planning and reporting the wrong stuff • Poor ownership and accountability • Tying plan achievement to compensation • Incomplete strategy definition • Inadequate risk recognition • Poor communication • Weak Integration (connecting the dots) • Information overload • Mistaking detail for accuracy
  64. 64. Best Practice for leveraging Technology • Integrate business and technology planning • Break down the functional walls • Set the right priorities • Avoid automating inefficiencies • Implementation is a team effort • Focus on use, not deployment • Manage complexity • Link ROI to business value
  65. 65. Common Enterprise Information Model Single Consistent View and User Self-Sufficiency PRESENTATION LAYER User Roles, Preferences Simplified View Role-Based Views of the Information Logical SQL Interface Relevant to the User SEMANTIC OBJECT LAYER Dimensions Hierarchies Measures Consistent Definition of Business Measures, Calculations Metrics, Calculations Aggregation Rules Time Series PHYSICAL LAYER Map Physical Data Connections Model Once, Deploy Everywhere Schema Across Any Data Sources 75
  66. 66. Simple Source On Mapping Rule Identify the Identify the Identify the Identify The varying Dimensions Initial Data Dimensions Operation to be To be Source To be Debited performed Credited Create or Select a Create or Select Condition Components
  67. 67. Ensuring Financial Data Quality Financial Data Audit Trail Trial Balance to Report Data Reconciliation Business Data Accuracy Processes Data Completeness Internal Audit Controls COSO Repository Stewardship Business Analysts Driver Regulatory Compliance We mean 77
  68. 68. An Integrated approach to BI & DW Elements of a BI Initiative Success Factors Consume Insight as a Service Multi-channel Open API’s User self-service Federated query Aligning People, Manage Processes & Technology Embedded OLAP, Data Mining RAC, Clustering Data Integration, Business Security, Scalability, Acquire Processes (BPEL, BAM), MDM, & Performance Content Management
  69. 69. Pre-Built, Pre-Mapped, Pre-Packaged Insights 1 Pre-built warehouse with more than 16 3 Pre-mapped metadata, including embedded best star-schemas designed for analysis and reporting practice calculations and metrics for Financial, on Financial Analytics Executives & other Business Users. Presentation Layer Logical Business Model Physical Sources 2 Pre-built ETL to extract data from hundreds of 4 A “best practice” library of over 360 operational tables and load it into the DW, sourced pre-built metrics, Intelligent Dashboards, 200+ from Oracle EBS, PeopleSoft Enterprise, SAP R/3, Reports and alerts for CFO, Finance Controller, and other sources. Financial Analyst, AR/AP Managers and Executives
  70. 70. The New BI approach visualization Dashboards Consume Analytics Scorecards Workspace Performance BI Apps Management Apps. BI Foundation Infrastructure Acquire Manage
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