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Strategic Modeling: Right Strategic Decisions Aligned with Operating Plans at Enbridge

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Oracle Enterprise Planning Solution using Hyperion Strategic Finance (HSF) and Hyperion Planning

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Strategic Modeling: Right Strategic Decisions Aligned with Operating Plans at Enbridge

  1. 1. Strategic Modeling: Right Strategic Decisions, Aligned with Operating Plans at Enbridge October 4, 2017 BusinessAnalyticsSolutionsProvider:EPM,BI,andBDTechnologies Devin Moore Enbridge Andy Starks Ranzal
  2. 2. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Agenda • About Enbridge • Prior State Technology • Enterprise Planning Solution • What’s Next • Keys to Success • Q&A
  3. 3. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Enbridge Overview • Enbridge operates the World’s longest crude oil and liquids transportation system • Canada’s largest natural gas distributer • North American leader in the gathering, transportation, and processing of natural gas
  4. 4. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Enbridge Business Complexities • 6 Publicly Traded Companies controlled by Enbridge – ENB: parent company traded on TSX and NYSE – EEP: Master Limited Partnership traded on NYSE – EEQ: Limited Partnership traded on NYSE – MEP: Master Limited Partnership traded on NYSE – SEP: Master Limited Partnership traded on NYSE – ENF: Enbridge Fund Holding Company traded on TSX • Master Limited Partnership (MLP) Modeling • Dozens of Debt and Preferred Stock Issuances • Intercompany Transactions • Currency Translation • Complex Ownership Structure
  5. 5. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Complex Consolidation Logic – 1 Example:
  6. 6. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Challenges with Prior State Technology • A combination of Excel and Khalix technology presented various challenges – Khalix did not consolidate, it only aggregated – Heavily dependent on Excel to collect, aggregate, and reconcile data issues – Hundreds of Excel files with varying levels of consistency led to errors and time consuming validation and reconciliation processes – Manual Elimination Process (up to 2 weeks) – Reporting was Excel-based. No multidimensional database meant that reporting was limited and manual in nature. – Limited automation – Versioning capabilities were very limited
  7. 7. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Project Goals • Improve technology to provide a more scalable, reliable solution making Khalix redundant and replacing it with Oracle Enterprise Planning solution • Integrate detailed Operational Plans for Capital and O&A into the Long-Range Planning and Corporate Modeling processes • Reduce data requirements appropriately during the planning process so that modeling activity is not burdened with unnecessary cost center, entity, or account detail • Resolve Data Integrity issues as they relate to the use of Excel in a multi-sheet linked environment • Centralize the collection of data into an enterprise solution whereby calculations and aggregations can be executed centrally and quickly • Combine Actual, Operational and Strategic Planning data in an Enterprise Reporting Solution that empowers end-users with ad-hoc and self-service reporting capabilities
  8. 8. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Oracle’s Enterprise Planning Solution
  9. 9. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Solution Architecture
  10. 10. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Data requirements appropriately reduced with Hyperion Solution
  11. 11. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Guiding Principles for Solution Architecture • Right tool for the right job – while each tool can do many things, architecture is created to leverage the strengths of each product in the Oracle/Hyperion software stack • Consolidation and Financing should be done in HSF • Detailed data capture and aggregation should be performed in Hyperion Planning • Forecasting applications should only contain data required to support the forecasting process • Consolidation of Budgets/Forecasts should not mimic GL/Actuals Consolidation functionality – each tool has its own unique purpose; avoid over-engineering planning process to achieve false precision • Unify all data and reporting in an Enterprise Reporting solution • Origin of Data should be seamless to end users and report consumers
  12. 12. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Current State
  13. 13. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Current State - HSF • Approximately 75 entities modeled and consolidated • Substantially all debt and equity issuances are modeled in HSF – across 22 issuing entitles • Funding requirements are established in HSF • Master Limited Partnership (MLP) modeling performed within 3 entities • Significant iterative involvement from Treasury and Tax
  14. 14. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Benefits of Solution • Took decentralized corporate models across the enterprise and made centralized • Allowed for agile debt financing modelling throughout various level of Enbridge issuers • Increased variance reporting on various strategic plans
  15. 15. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Implementation Process • Enbridge partnered with Ranzal to implement their Enterprise Planning solution – Analysis and Design Phases with key stakeholders – Conference Room Pilots during the Build Phase – UAT facilitation, Training, and Rollout Support • Continued collaboration with follow-on BU functionality and integration of recent acquisition
  16. 16. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Latest Developments • $28 billion Acquisition of Spectra Energy in Feb 2017 – Spectra had its own HFM and HP applications that needed to be combined for the budget and close process – Functionality in Spectra Excel models needed to be brought into HSF – FDM used to transform data from Spectra applications to Enbridge application • Gas Distribution business group (Toronto) – Replacement of Khalix and Excel based process with Hyperion Planning and Essbase applications for Workforce, O&M and Capital Budget, Forecast and LRP modeling
  17. 17. Business Analytics Solutions Provider: EPM, BI, and BD Technologies What’s Next • Integrating Legacy Spectra applications – Replacement of outdated Hyperion Planning applications with new and optimized Hyperion Planning and Essbase applications for Workforce, O&M Budget and Forecast modeling • Evaluate moving to the Cloud
  18. 18. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Keys to Success • HSF and Planning have unique strengths and weaknesses – make sure to utilize each to maximize its strengths • Don’t replicate GL or Close hierarchies for the sake of “consistency”. Planning is a separate business process and should have metadata that meets its own needs • Combine Actual, Budget, Forecast, and LRP in an Enterprise Reporting Solution • Don’t replicate what you have – strive to build an optimal solution that maximizes the strengths of the technology
  19. 19. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Q&A

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