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Profitability and Cost Management at Mastercard Worldwide

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Profitability and Cost Management

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Profitability and Cost Management at Mastercard Worldwide

  1. 1. Oracle HPCM Customer Story Fully Allocated P&Ls at MasterCard Worldwide September, 2016 Jonah Rufus William Business Leader – GBSC Systems
  2. 2. 2 • 17 Years in EPM & BI Space • Consulting • Managing Financials Systems • Industry Experience • Technology • Retail • Finance • Education • Govt. • Implemented EPM/BI at • Mastercard • DoE Mass • SGI • Staples • AAFES • Activision • Hindustan Lever etc. • Worked at: • IBM Cognos as EPM Architect • Oracle Partner as Sr. Principal Consultant • Mastercard since 2006 Education Engineer – Electrical & Electronics MBA – Systems and Marketing Strategize, Implement and Sustain Hyperion and BI Platforms Business Leader | GBSC Systems Presenter Bio © 2016 Mastercard. Proprietary and Confidential
  3. 3. 1. Hyperion @ Mastercard 2. Business Background & Challenges 3. Solution Overview 4. Business Benefits & Lessons Learned 5. Future Plans 3 Mastercard Customer Story Agenda © 2016 Mastercard. Proprietary and Confidential
  4. 4. 4 Keep things simple and stretch the boundaries, go beyond the general use of Hyperion / BI. Mgmt. Reporting Entity Mapping Work Force Product P&L 2011 2012 2013 2014 Local Currency Driver Local Currency Exposure FX FTE SPA - II Implementation Stabilization Expansion Budget Breakout Performance Tuning 2015 Commitment Lights Out Automation StratPlan Customer P&L 2010 Payroll Renovation 2016 D&A Revenue Attribute Local Actual M&A Cash Flow Hyperion Upgrade Allocated P&L Expense Mgmt. BI Rev. Rec. Application Automation / Enhancement / Project BI Stabilization | Expansion Fin - BI Revenue Expense A&M Op Plan - BI Cur. Neutral Hyperion @ Mastercard © 2016 Mastercard. Proprietary and Confidential HyperionStats 20 • Hyperion Applications 30 % 40 % • 2015 Growth In Foot Print • 2014 Growth in Foot Print 14 • Process Supported Globally across 12 business units 600 • World Wide Users 1 Monthly Close 2 Strategic Planning Annual Budget3 Quarterly Forecast4 8 Workforce Planning 9 Monthly Customer P&L (COS) Quarterly Product P&L (PPL)10 Local Currency Exposure11 Monthly Payroll Process5 Commitment Collection Process12 M&A Reporting6 Managerial P & L13 Cash Flow7 BI Updates14
  5. 5. 5 1. Fully Loaded Country P&L 2. Transparent Rules 3. Sound and Simple Methodology 4. Faster System 5. Fit within Hyperion Framework MasterCard Challenge © 2016 Mastercard. Proprietary and Confidential
  6. 6. 6 1. Prototype in MS Access & Excel 2. Obtain buy in from impacted business owners 3. Assess solution fit with in Oracle Platform 4. Develop Functional Pilot in Requirements & Design 5. Implement & Rollout 6. Build Future Roadmap MasterCard Strategy © 2016 Mastercard. Proprietary and Confidential
  7. 7. 7 Guiding Principle: Tiered approach to attribute Revenue & Margin between Direct/Dedicated and Indirect/Overhead. 1. Drivers – Revenue Based or Metrics Based 2. Actual from Oracle General Ledger 3. M1: Revenues & Directly associated expenses no allocation 4. M2: Dedicated expense mapped to country 5. M3: Support expense allocated to country 6. M4: Overhead expenses allocated to country 7. Actual from Oracle GL gets allocated using the guiding principle 8. Simple rule to produce Tiered P&Ls applied after allocation 9. Validation reports are run to ensure data accuracy 10.Results published via Prebuilt FR or SmartView MasterCard Solution Overview © 2016 Mastercard. Proprietary and Confidential
  8. 8. 8 Margin 1 Margin 2 Margin 3 Margin 4 Variance Explanation Fully Allocated P&L © 2016 Mastercard. Proprietary and Confidential
  9. 9. 9 1. HPCM allocates Costs & Revenue Pools through one or more stages in a top down capacity 2. Stage – Step in the allocation process that has similar pool characteristics 3. Separate stages enable traceability. Cost CtrAccount* Data Type GeoDivision* GeoDivision* Geo*Division Stage 1 – Financial Detail Stage 2 – Fin. Pool Stage 4 – Tier 2 Stage 3 – Tier 1 Cost Pool Tier 1 (Div) Allocs or Pass Thru (Direct) Tier 2 (Geo) Allocs or Pass Thru (Direct) Sum Account/CC to Cost Pool (Direct) AccountCost Ctr Data Type GeoDivision GeoDivisionCost Pool 1-3-4 Genealogy Allocation Results 1-3-4 Genealogy HPCM Model Architecture – Stage Design © 2016 Mastercard. Proprietary and Confidential
  10. 10. 10 1. Planning App to stage, validate inputs and consume 2. Relational model to contract and expand data grain 3. Front end to assign rules 4. Prebuilt Tiered report 5. Trace Screens MasterCard Solution Highlights © 2016 Mastercard. Proprietary and Confidential
  11. 11. 11 1. Trace Screens work at allocation grain 2. Need a reporting solution to make end user consumption easy 3. HPCM is a maturing product 4. Success or Failure depends on the partner’s experience – project completed on time and on budget MasterCard Lessons Learned © 2016 Mastercard. Proprietary and Confidential
  12. 12. 12 1. Explore use of Management Ledger • Movement of historical management restatements from the general ledger • Would require upgrade to 11.1.2.4 2. Product & Customer Profitability migration to HPCM 3. Delivery of Dashboards to Business Users using OBIEE MasterCard HPCM Future Plans © 2016 Mastercard. Proprietary and Confidential

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