MasterCard Worldwide Drives Performance Using Oracle HPCM

1. Edgewater Ranzal Lunch and Learn
Mastercard Drives Financial Performance
Using Oracle HPCM
Jonah Rufus William, Business Leader Financial Systems, Mastercard
Mike Killeen, Oracle Ace, Sr. Vice President, Edgewater Ranzal
Tues Sep 20, 2016

2. About Ranzal
Edgewater Ranzal is a full-service Oracle Platinum Consulting Partner with premier services in North
America and a regional office in the United Kingdom.
1,000+ Oracle/Hyperion
epm, bi, big data customers
2,000+ Oracle/Hyperion
epm, bi, big data projects
PBCS
EPBCS
FCCS
ARCS
BICS BD Cloud
PCMCS
EPRCS
Planning
Suite
Fin Close
Suite
BI Suite
Cloud (SaaS/PaaS) On Premise
Big Data
HPCM
DRM
FDMEE
Governance
Engineered
Systems
FCM
Integration

3. 3
• 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

4. About the Speaker – Mike Killeen
4
Senior Vice President of Technology & Strategy
Planning & Analytics Practice Lead for 5 Years
Helped Establish Ranzal’s UK Division
Responsible for driving growth through strategic initiatives – currently focused on HPCM, DRM & BI
Works from Ranzal’s Corporate HQ in White Plains, NY
Oracle Certified Professional
Essbase, Planning & HFM
Oracle ACE – Business Intelligence
19+ Years of Functional & Technical Experience In:
Budgeting, Forecasting & Planning
Cost Allocation & Profitability Management Solutions
Business Intelligence
Master Data Management & Data Integration
Solution Architecture & Design
Process Rationalization & Transformation
Client Engagement Portfolio Includes Various Industries:
Financial Services & Insurance
Consumer Products and Retail
Professional Services
Telecommunications
Higher Education
Health Care
Works Closely with Oracle Product Management on Enhancements & Direction

5. Oracle HPCM Customer StoryOracle HPCM Customer StoryOracle HPCM Customer StoryOracle HPCM Customer Story
Fully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard WorldwideFully Allocated P&Ls at MasterCard Worldwide
September, 2016
Jonah Rufus William
Business Leader – GBSC Systems

6. 1. Hyperion @ Mastercard
2. Business Background & Challenges
3. Solution Overview
4. Business Benefits & Lessons Learned
5. Future Plans
6
Mastercard Customer Story Agenda
© 2016 Mastercard. Proprietary and Confidential

7. 7
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

8. 8
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

9. 9
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

10. 10
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

11. 11
Margin 1
Margin 2
Margin 3
Margin 4
Variance
Explanation
Fully Allocated P&L
© 2016 Mastercard. Proprietary and Confidential

12. 12
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

13. 13
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

14. 14
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

15. 15
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

16. Edgewater Ranzal Lunch and Learn
An Overview of Oracle HPCM
Mike Killeen, Oracle Ace, Sr. Vice President, Edgewater Ranzal
Tues Sep 20, 2016

17. HPCM Overview Agenda
17
Challenges in Profitability Management Delivery
Profitability and Cost Management Solution
Overview
Deep Dive into Oracle Hyperion Profitability & Cost
Management (HPCM)
Preview of Oracle HPCM Cloud (PCMCS)
Closing & Q&A

18. Recap: Profitability Management Goal – Delivery of Strategic P&Ls
19

19. Financial
transactions
Financial
Data
Consolidation
(GL or HFM)
Accumulator
Bottom-line
Results
Organizational P&L
Challenge #1 - Statutory Reports are not Timely or Detailed Enough
19
What defines a
profitable
customer?
What is the profit
contribution 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?

20. No Standard Process
Standard,
accepted
process
Indirect Costs are
tracked against supply
side structures, not
demand side needs.
This makes
measurement difficult
Challenge #2 - Indirect Cost Assignment to Products, Services &
Customers
20

21. Challenge #3 - Consistent Performance as Volume & Use Increase
21
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

22. Reliability
Visibly defense profitability &
cost 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
Expectations of a Profitability Management Solution
22

23. Overview
23
Oracle Business Analytics
Profitability Management Solution

24. Hyperion Profitability & Cost Management (HPCM)
24
Packaged Profitability
functionality
Business User-Driven
application
Tightly integrated with the full
Hyperion EPM Suite

25. Why HPCM? To Meet these Key Requirements…
25
Flexibility Audit & Accuracy Speed Transparency
Organizations need information management solutions to address the challenges.
These needs can be abbreviated as F-A-S-T!
Provide key
stakeholders
confidence in
the numbers
produced and
methodologies
employed to
ensure
compliance.
Ensure data is
timely enough
to be
actionable
Ensure system
provides
“speed of
thought”
response in
reporting and
analysis to
support Ad-Hoc
questions
Allow managers
to understand
cost to serve
and client
profitability
Understand why
some clients are
profitable and
others are not,
and what can be
done to change
business
behavior
Analyze different
contractual
approaches to
yield optimal mix
of services
versus costs
incurred by the
client.
Provide What-If
Capabilities to
assess impact of
key business
decisions on
bottom line

26. Solution Architecture with HPCM
26
Ad HocPublished Reports
HPCM Data Mart
Hierarchies,
Attributes &
Maps
Web
Office
Manual
Data
Input
Pre & Post-Allocations
Data Processing
Attributions & Adj
ETL/FDMEE
GL or
HFM
Operational
System
.txt file
.csv file
Calculations
Validations
Centralized Reporting
Supply
Plan
Demand
Plan
OBIEE Reports
DRM
Information Management: Pools & Drivers
Information
Generation
Information
Delivery
Information
Management:
Master Data

27. Multiple HPCM Use Cases
27
Group Services (e.g. Property, Controllership, IT)
Product Profitability
Customer Profitability
Group Overhead (e.g. CEO)
Division 3
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Group HQ
Operational
Profitability
"BI"
Shd Svcs
Expense
Allocations
Inter Unit Charges (e.g. Xfer Pricing, Contractual Charges)
Division Services
Fully Alloc
P&L
"Thin
Ledger"
Inter Unit
“Regulatory”
Division 2
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Division Services
Division 1
Division Overhead
Fully Allocated P&L
(e.g. Product Line,
Channel, Region)
Division Services

28. Financial Close Use Cases
Improve Efficiency via Automation of Reports & Data
Improve Effectiveness by enabling Transparency into drivers, pools &
allocations
Reduce Risk by eliminating manual spreadsheets and incorporating Stronger
Controls through an integrated, standardized system.
Profitability Analysis Use Cases
Ensure Reliability of results through meaningful, Accurate methodologies
which generate Strategic P&Ls that tie back to published financial results.
Improve Agility in key decision making process through Timely distribution of
the stakeholders that need it.
Improve the Relevance of published results by allowing organizations to
Assess and Allocate resources to the most important opportunities
28
HPCM Business Benefits

29. 29
HPCM Deep Dive

30. HPCM Has Multiple Model Types to Solve Different Allocation
Problems
30
Version 11.1.1.1 Version 11.1.2.0 Version 11.1.2.4
Management Ledger
Fully Allocated P&L
Standard Cost Rate
Development via ABC
Customer
Profitability
HFM/GL
Actuals
Planning
Bgt/Fcst
BI
Reporting

31. HPCM Management Ledger
31
ASO
EPMAHPCM
HPCM
repository
OR
ASO
Metadata Cube
Calculation and Reporting
Meta
Data File
OR

32. Management Ledger- Metadata
32
System Dimensions POV Dimensions Business Dimensions

33. Management Ledger- Manage Rules
33

34. Management Ledger- Manage Rules
34
- Set-up sequence of
rule within a rule set
- Select the option of
executing :
- Serial
- Parallel
- Iterative with
number of
required iterations

35. 1
2
3 .
4
5
User Interface
and rule driven –
no black box
implementation
with staging
areas
Validation
performed
at rule level Custom
MDX
scripts
Traceability
available in
various
formats
Iterative
rules for
reciprocal
allocations
Management Ledger- Features
35
Unlimited Dimensions : Stage-less design allows 4 POV dimensions and unlimited business and attribute dimensions
Source side rules, iterative rule support for reciprocal allocations, flexible driver references, custom calculations, and easy clear / recalculation
Rule execution in parallel, serial, or iterations as needed, set by user
Balancing by rule with allocations sent and received as well as adjustment values detailed by rule
User defined slices through model views for enhanced rule balancing and trace analysis
Visual allocation trace from aggregate or granular level, detailed by rule

36. Management Ledger- Traceability
36

37. But what about Cloud?
37
PBCS
2014
FCCS
2016
PCMCS
2016

38. Discover and Act on Hidden Profit and Loss
Empower Users with
Flexibility
Improve Financial Decision
Making
38
The Future - Oracle Profitability and Cost Management Cloud Service (PCMCS)
R$
E$
Discover Cost and Profit

39. Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Profitability and Cost Management Cloud Service
Pervasive and Focused Financial Analysis
Performance Ledger Applications
Complex Multi Step Computations
Flexible Allocation & Custom Calcs
Business User Managed Rules
Comprehensive Audit Trail
Performance Ledger Applications
Complex Multi Step Computations
Flexible Allocation & Custom Calcs
Business User Managed Rules
Comprehensive Audit Trail
Application Management
Best Practice Application Templates
Dimension Upload / Update
User Provisioning
Data Security
Application Management
Best Practice Application Templates
Dimension Upload / Update
User Provisioning
Data Security
Multiple Dashboards
Charts & Data Grids
Key Performance Indicators
Custom Time Aggregations
Rank and Scoring
Multiple Dashboards
Charts & Data Grids
Key Performance Indicators
Custom Time Aggregations
Rank and Scoring
Population Performance Analysis
Multi Dimensional Profit
Rank and Order
Allocation Rule Trace
Custom Queries w/Drill to Smart View
Population Performance Analysis
Multi Dimensional Profit
Rank and Order
Allocation Rule Trace
Custom Queries w/Drill to Smart View
Custom Report Creation
Strategic P & L Reports
Cost Contribution Detail
Custom Report Creation
Strategic P & L Reports
Cost Contribution Detail

40. Three Pillars to PCMCS
40
HPCM for Rules Management Mobile Ready Embedded Analytics
PBCS Data & Automation Management

41. Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
HPCM and PCMCS
Summary of Recent Releases and Roadmap
Near Term: PCMCSNear Term: PCMCS Future +1Future +1
• PCM Cloud Service
• Data Forms
• Rule Enhancements
• Enhanced Rule and Balance Dims
• PCMCS Solutions
• Oracle IT Costing and Transparency
• Partner Industry Specific Accelerators
• PCM Cloud Service
• Management Ledger Apps (a.k.a.
Performance Ledger)
• Embedded Analytics
• Embedded Analytics
• Population Performance Analysis
• Multi Dimensional P&Ls
• Cost Contribution Reporting
• Cost and Profitability Statistics
• KPI’s & Dashboards
• Complete Data, Security and Automation
• Data Management
• EPM Automate
• Data Level Security
Recent: HPCM 11.1.2.4Recent: HPCM 11.1.2.4
• Ledger Allocations Support
• Management Ledger Model Type
• Mixed dimensional attribution
• True business rules
• Rule based allocation trace
• Financial Close Manager Integration
• Coordinated Schedules and Templates
• Click through to ML App functions
• Performance Enhancements
• Detailed Apps Multi Source Rules
• Management Ledger Allocation Rules
• Dimension and Data Management
• Management Ledger Apps
• Data Load from File
• Dimension Load from File
• Template Export / Import
Oracle Confidential – Internal/Restricted/Highly Restricted 41

42. Closing and Q&A
42
Summary/Questions

43. Flexibility
Business Users can Run Multiple Versions to assess impact of business changes
Business Power User facing application – limited IT involvement in running the model
Accuracy
Profitability Workflows are now an automated, repeatable processes
Meaningful cost drivers and methods for cost pools ensures greater acceptance of published results
Speed
Business Users Can answers questions that impact operational and pricing decisions quickly.
Reporting Analytical Platform supports speed of thought ad-hoc reporting as well as user guided analysis
Transparency
Excellent visibility throughout the allocation process.
Operational Managers now understand operational profitability and cost to serve via the analytical platform.
•
Summary –Typical Project Outcomes
43

44. Positioning Profitability Solutions Within Your Organization
We understand where it fits…. We know the questions to ask….
44
PBCS
PCMCS
ERP
FCCSEPRCS
DRM
HCM
CRM
SCM
Does your company understand the true costs of its products or services?
re costing models transparent enough? Can you easily trace back the
assigned costs to the activities and line item expenses that drive them?
Are costing models transparent enough? Can you easily trace back the
assigned costs to the activities and line item expenses that drive them?
Do your costing methods operate at the right level of detail?
Are you satisfied that you are allocating shared services (e.g. IT/HR)
accurately?
Are people spending too much time maintaining our costing models and
other elements of our costing system?
Can people in your company quickly test how changes to commodity,
input costs, lower or higher volumes will affect our profitability?
Are you getting answers from our costing systems fast enough to be
actionable? Would reducing this process time improve our
competitiveness or profitability?
Is all of the data that you need to understand true costs available in a
single ERP system? If not, what are the initial and ongoing costs of
integrating that data into your ERP system?

45. Q&A
45

46. 6 Conference Sessions. 3 Lunches. 1 Happy Hour! Join Us.
− LUNCH N LEARNS @ the Thirsty Bear,
11:45-1:00 pm
− Mon: Cloud Showcase Featuring Universal Health Services
and Brookdale Hospital
− Tues: Mastercard Worldwide Drives Performance Using
Oracle HPCM
− Wed: Terumo Medical: Integrated Business Analytics at its
Best!
− Register for Lunches or Tuesday night Happy Hour @Southside Spirit
House @aingram@ranzal.com.
− RANZAL KIOSK, Moscone West, 3rd Floor
We're giving away Apple watches and TVs, wireless headphones, Bluetooth speakers, and much more!
Receive an entry every time we see you - sessions, lunches, happy hour, and at our EPM kiosk #10
− CONFERENCE SESSIONS
− Universal Health Services Presents:
Monday, 9/19, 1:45pm - 2:30pm, Moscone West - 3018
Oracle Enterprise Performance Management on Premise
and in the Cloud: Taking a Hybrid Approach
− Mastercard Presents:
Monday, 9/19, 3:00pm - 3:45pm, Moscone West - 3020
Customers Present - Profitability and Cost Management
− Ranzal Presents:
Wednesday, 9/21, 11:00am, Moscone West - 3rd Floor
Understanding Cloud Strategies: On Premise, Cloud,
and the Hybrid Approach
− TransRE Presents:
Thursday, 9/22, 9:30am - 10:15am, Moscone West - 3020
Introduction and Update: Oracle Hyperion Financial
Close Suite
− Brookdale Hospital Presents:
Thursday, 9/22, 1:15pm - 2:00pm, Moscone West - 3018
Brookdale Hospital's Journey to the Cloud
− PPG Industries & Trinity Health Presents:
Thursday, 9/22, 1:15pm - 2:00pm, Moscone West - 3024
Customers Present - PPG Industries Simplifies with
DRM
46