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True Power of Oracle's Enterprise Planning Suite Unleashed at POET

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POET, a leading biofuel company specializing in the production of ethanol and ethanol co-products, needed a platform to support its performance management initiatives and ultimately the company mission, which required generating fully integrated income statement, balance sheet, and cash flow projections over a five-year planning horizon. It needed a system that could provide short-term detailed operational budgeting capabilities for various aspects of the business (i.e. SG&A, capital planning, project planning) while also delivering a flexible solution to allow for higher level long-range planning. In search of these overall process improvements and efficiencies related to the budgeting and long-range planning processes, POET turned to Oracle and Ranzal to deliver a best in-class solution using Oracle’s suite of EPM applications. A guide through POET's process using the “right tool for the right job” mantra, to unleash the true power of Oracle’s Enterprise Planning suite including Oracle Hyperion Strategic Finance, Hyperion Planning (including Workforce, Capital and Project Financial Planning), Essbase, and Financial Data Management Enterprise Edition.

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True Power of Oracle's Enterprise Planning Suite Unleashed at POET

  1. 1. INTEGRATED BUSINESS ANALYTICS Getting to the Answers for Improved Business Performance Business Analytics Solutions Provider: EPM, BI, and BD Technologies True Power of Oracle’s Enterprise Planning Suite Unleashed at POET Ryan Meester – Managing Director, Edgewater Ranzal Lezlee Herdina – Director of FP&A, POET June 27, 2017
  2. 2. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Agenda Introductions Enterprise Planning Overview POET Case Study High Level Demonstration Q & A
  3. 3. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Enterprise Planning Solutions Should…  Translate strategic objectives into operational goals and targets  Seed operational plans with strategic targets  Update strategic plans using the most current operational plans and forecasts  Update strategic and operational plans easily and frequently  Perform powerful what-if and ad hoc analysis  Integrate all planning processes into a single centralized environment
  4. 4. Business Analytics Solutions Provider: EPM, BI, and BD Technologies What tools are at your disposal?
  5. 5. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Enterprise Performance Management Define, Measure, & Innovate Your Business
  6. 6. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Enterprise Planning Capital Assets Planning Workforce Planning Financial Statement Planning Financial Detail Operational Detail Predictive Modeling & Simulation Planning, Budgeting & Forecasting Project Financial Planning
  7. 7. Business Analytics Solutions Provider: EPM, BI, and BD Technologies POET Introduction Vision POET Vision
  8. 8. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Why was change needed? Banks, Boards and Balance Sheets + Capital Management • How big is the war chest? • What is the business cash need? + Strategic Initiatives • M&A Opportunities • Cellulosic ethanol • Other technology improvements… + Industry Volatility • Ability to react quickly to commodity price swings and understand their impacts • Having a playbook ready for the situation Process was Inefficient and Inflexible + Required 266 spreadsheets to create a consolidated 3 year forecast and 166 spreadsheets to create the monthly forecast. + Forecast consolidation took two days + Couldn’t: • Push through commodity price changes in real time; • Effectively coordinate consistent, credible information flow between impacted parties; • Easily control consistency of assumptions; • Effectively generate reports; • …
  9. 9. Business Analytics Solutions Provider: EPM, BI, and BD Technologies The Evaluation Process 1. Define core business processes 2. Define project requirements 3. Examine the potential solutions 4. Select a sustainable enterprise wide system 5. Select a knowledgeable implementation partner that could best integrate our needs with the system
  10. 10. Business Analytics Solutions Provider: EPM, BI, and BD Technologies POET’s Initial Business Requirements • Plants/Corporate Business Units  Seamless integration of financial and operational data  Platform for process improvement – greater automation in monthly processes improving efficiency and increasing time for value-add analysis  Improved communication, including ease of reporting • FP&A  Single source of the truth  Reduced reliance on Excel models and associated version control issues  Improved data governance – clarity of data model with common definitions to facilitate planning and reporting processes • Executive  Operational and financial dashboards for performance measurement  Scenario analysis to drive M&A and strategic business decisions  Greater emphasis on cash perspective
  11. 11. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Guiding Principles for Solution Architecture • Right tool for the right job (RTRJ) – while each toolset can do many things, architecture is created to leverage the strengths of each product in the Oracle/Hyperion software stack • Minimize application switching – the corollary to RTRJ – try to minimize the “hops” between applications to avoid confusion • Keep it simple – overly complex applications make for great “shelf-ware” • User experience is critical – avoid over-engineering • Forecasting applications should only contain data required to support the forecasting process • Reporting applications store historical and additional data for analytics • Data integrations should be seamless to end users • Significantly reduce the dependence on offline Excel models
  12. 12. Business Analytics Solutions Provider: EPM, BI, and BD Technologies The Solution
  13. 13. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Application Summaries Planning Applications Brief Description BU P&L Detailed SG&A account planning at the Cost Center and GL account level Workforce (PLN-WFP) By person headcount planning for all non-plant related human resource expenses Capex Asset planning for all capital expenses. Also used for book and tax depreciation calculations. Projects Detailed project financial forecast (including human and capital resources) Assumptions / Staging Single application for assumptions that are controlled centrally that drive the Plant or BU models to be collected and managed. Other Applications HSF Plant / BU Financials Where Plants and Business Units complete their full financial model (IS, BS, CF) and perform scenario analysis for the budget, forecast and long range planning process Management Reporting Essbase cube that is the primary point of reporting and analysis – includes Actuals, Monthly Forecasts, Annual Plans, Long Range Plans, and other Operational Metrics in support of the planning process
  14. 14. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Demonstration
  15. 15. Business Analytics Solutions Provider: EPM, BI, and BD Technologies …One Year Later!
  16. 16. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Accomplishments 1. Seamless integration of financial and operational data following a common data model across multiple platforms • Countless hours saved by retrieving financial and operational data from management reporting cube 2. Greater efficiency in planning and reporting processes – We spent 65% of our time building and 35% of our time analyzing monthly forecasts. We now spend 35% of our time building it and 65% analyzing it. – Forecast consolidation previously took two days, now takes less than two hours. – Month-end process shortened by two days. 3. Single source of the truth • reduced reliance on Excel models and associated version control issues – Commodity price assumption control 4. Improved data governance – clarity of data model with common definitions to facilitate planning and reporting processes – Audit trail in HSF allows multiple accountants understand how a forecast is being calculated
  17. 17. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Accomplishments 5. Greater emphasis on cash perspective – Short-Term able to automate current sources and uses to maximize efficient use of cash. – Long-Term cash forecast at the consolidated level required approximately 30 linked excel spreadsheets. Hyperion provides a Smart view report to be refreshed and retrieve all data, eliminating the need for linked spreadsheets and allowing more time for value-added analysis. 6. System is facilitating potential consolidation of legal entities – Ease of producing information for reporting and analysis and for negotiations – Ease of “what if” reporting using current and future org structures 7. More confidence in the numbers • Better visibility into what is generating them • Consistent methodologies for generating forecasts • Improved change control.
  18. 18. Business Analytics Solutions Provider: EPM, BI, and BD Technologies • Take better advantage of OBIEE tool. We haven’t yet successfully incorporated data from other systems not required for forecasting purposes that could be very valuable for BI reporting into it. • Project Financial Planning needs to be implemented. We put it on hold for a number of reasons, resource constraints, lack of clear requirements, etc. This summer we will be clearly defining the requirements and come up with an implementation plan. • Get processes in place to really develop SmartView SMEs (Subject Matter Experts) to fully take advantage of the tool. • Reassessing where we are still using excel spreadsheets. Do we really need them? What still needs to be automated? • Making sure our documentation is current and maintained. • Limitless ways POET can improve our world… …What’s next?
  19. 19. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Lessons Learned / Keys to Success • Gather requirements and identify the best fit – Take the time to evaluate the full suite – Try not to replicate complex logic in multiple systems but rather take advantage of the strengths of each (i.e. Cost Center detail in Planning, Mgmt Reporting in Essbase, BS/CF modeling in HSF) – Get the appropriate persons involved in the design process • Create a common point of intersection between HSF, Planning & Essbase – Chart of Accounts – Entity Structure – Common modeling methodologies – Discrepancies to be resolved ensures communication link between the applications • Leverage Essbase for comprehensive management reporting across applications • Take your time and do it right; Don’t replicate what you have.
  20. 20. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
  21. 21. Business Analytics Solutions Provider: EPM, BI, and BD Technologies Give us $.02 and we will give you $5 Do you know your PCMII? • Take part in our study to learn how organizations navigate and manage Profitability & Cost Management (PCM) processes • Bring your results email to booth #301 for a $5 Starbuck’s gift card • Mobile friendly: www.ranz.al/kscope2017 To help protect your privacy, PowerPoint has blocked automatic download of this picture.

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