Oracle OpenWorld 2019 As organizations seek to improve the quality of service and reduce costs through the establishment of shared service centers for both corporate functions and client facing activities, the need for fully allocated P&Ls as a management reporting tool becomes critical to ensure that Divisional and Line-of-Business performance supports the overall corporate performance targets expected by senior management and investors. With most financial systems organized around managing expenses on a "supply side" basis, creating the pivot from "what it is" to "what and who it's for" becomes more challenging. Even if methodologies are agreed upon, providing both service providers and divisional leadership with transparency into the "why" behind P&L charges is a hurdle. For this reason, Oracle Enterprise Performance Management (EPM) Cloud applications such as Oracle Profitability & Cost Management Cloud Service (PCMCS) have been purpose-built to allow business users a mechanism to define initial models, execute them in an automated fashion, and provide transparency into allocated results and intercompany charges, allowing service providers and service consumers to better understand the levers that impact financial results. Attend this session for a case study that walks through the steps required to construct a fully allocated P&L within Oracle PCMCS. Topics covered include: Designing a data model that enables transparency Typical fully allocated P&L rule definition – sequencing and drivers Leading practices in reducing rule maintenance Self-service model validations and analytics

1. Secrets Of An EPM Cloud Solution -
How To Deliver Superior Profit Performance
Sep 18 2019
Alecsandra Mlynarzek, ACE Associate

2. AGENDA
• Alithya & Speaker Overview
• Strategic P&Ls
• What can PCM do?
• Demo
• Q&A
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3. ALITHYA OVERVIEW – EPM & ANALYTICS
Comprehensive Business Solutions
Our solutions drive improved business performance
through better decision making, strong customer
engagement, and optimized operations
Deep Partnership Drives Customer Value Adaptable Deployment Models
Diverse Client Portfolio & Industry Expertise
Team Highlights
Multiple
Oracle ACEs
Seasoned
delivery team
with avg 8 years
serving clients
Experienced
management team
with avg 15 years
in the company
Certified Cloud
Resources
Enterprise Performance
Management (EPM)
Analytics RetailEnergy/
Utilities
Financial Services
Technology CPG and
Manufacturing
Healthcare
Outstanding
Achievement
in Big Data
100 Most Promising
Big Data Solutions
Providers
1,000+ Clients 2,000+ Projects20+ Years
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4. ABOUT THE SPEAKER
> Professionally:
> Working with EPM since 2007
> Profitability and Cost Management Product Manager
▪ With Alithya since Jan 2011
> Oracle ACE Associate
> Certified in Essbase, Planning & PCM, SQL scripting
> Design, Architecture, Integration, Optimization
> Blogger since 2018
> Personally:
> Lived on multiple continents
> Have a passion for learning foreign languages
> I hate running but I’ll do it for a good cause (Race for Life UK,
Perroton in Chile, Pink Angels MA)
> Love winter sports and rock climbing
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5. PERFORMANCE MANAGEMENT CYCLE
STRATEGY
Where are we going?
Why are we doing this?
INSIGHT
What is the outcome?
How arewe going to get there?
Will we meet our goals?
EXECUTION
Why did it occur?
What If we did things differently?
Profitability
Enterprise
Planning
Financial
Close
Linking Strategy to Execution
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Is change needed?
What does it involve?

6. DELIVERING STRATEGIC P&LS
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Who’sasking?
Sales Operations ExecutiveMarketing
Whataretheyasking?
> Target clients
> Target
locations
> Product lines
to promote
> Relevant
markets
> Operational
productivity
> New product
or service
line offering
> Most sold
product
> Client
addition
> Client
retention
> Most
important
client
> Identify the
right time
for
acquisition /
divestiture
or re-org

7. STATUTORY & STRATEGIC P&LS
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Statutory P&Ls
StrategicP&Ls
FINDATA & DRIVERS
MEANINGFUL
ATTRIBUTIONS
REPORTING &
ANALYSIS
INSIGHT
EXECUTION
EXECUTION
EXECUTION

8. REAL LIFE EXAMPLES
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> Organization is not able to respond to changes
fast enough
> Current system is a black box
> We cannot explain the results
> Error prone

9. FOCUS ON THE SOLUTION
9
> Problem: P&Ls are rarely made available in
Strategic views that truly represent how the
business is managed
> Symptom: Multiple versions of the truth will
emerge. Executives are left with data that is not
actionable for attaining strategic goals
> Solution: meaningful strategic P&Ls using
common taxonomy, tied to the company strategy

10. EXISTING SOLUTIONS
❑ Very manual
❑ Error Prone
❑ Time
consuming
❑ Lacks controls
& governance
❑ Creates Key
Personnel
Dependencies
❑ “Black-box”;
lacks
transparency
❑ Can’t be
owned by the
business
❑ Unable to
extend ERP
data (e.g.
customer)
❑ Too expensive
❑ “Black-box”;
lacks
transparency
❑ Slow to adapt
❑ Grows
unwieldy over
time
Spreadsheets ERP Custom Built Packaged
Applications
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❑ Flexible
❑ Transparent
❑ Scalable
❑ Business
Focused

11. PCM = F-A-S-T AND RELIABLE RESULTS
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Flexibility
▪ Analyzedifferent
allocation
approaches to yield
optimal mix of
services versus costs
incurred by the
entity.
▪ Rapidly evolve
methodologies as the
business changes.
▪ ProvideWhat-If
capabilities to assess
impact of key
business decisions on
bottom line.
Accuracy
▪ Providekey
stakeholders
confidence inthe
numbers produced
and methodologies
employed to ensure
compliance.
▪ Achieve accuracy
throughmeaningful
allocations,
automation, and
systemcontrols.
Shared
Methodology
▪ Define consistent
allocationand
charge back
methodology across
all management
cycles.
▪ Create consistent
comparisons when
reviewing and
updating
methodology result
and planning for
futuremanagement
cycles.
Transparency
▪ Give units the detail
costs they incur for
the service
consumed.
▪ Compare
effectiveness of
internal unit services
with those of
external providers to
ensureefficiency.
▪ Allow LOBmanagers
to understandcost to
serve and
profitability results.
Where?
Who?
What?
When?
Why?

12. Group Services (e.g. Property, Controllership,IT)
Product Profitability
Customer Profitability
Group Overhead(e.g. CEO)
Division3
DivisionOverhead
FullyAllocated P&L
(e.g. Product Line,
Channel, Region)
Group HQ
Operational
Profitability
"BI"
Shared
Services
Expense
Allocations
Inter Unit Charges (e.g. Xfer Pricing, ContractualCharges)
DivisionServices
Fully Alloc
P&L
"Thin
Ledger"
Inter Unit
“Regulatory”
Division2
DivisionOverhead
FullyAllocated P&L
(e.g. Product Line,
Channel, Region)
DivisionServices
Division1
DivisionOverhead
FullyAllocated P&L
(e.g. Product Line,
Channel, Region)
DivisionServices
PCM USE CASES MAP
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13. Operational Profitability
• Product/Service (Distributors)
• Market/Segment/Customer (Banking)
• Channel & Fund (Asset Management)
• Patient Encounter (Healthcare)
Management Reporting
• Fully allocated P&L (Investments,
Banking, Manufacturing, Services)
• Activity Based Costing (Insurance,
Banking)
Financial Close
• Expense Allocations for Regulated
Industries (Insurance, Healthcare,
Utilities, Asset Management)
• Operational Transfer Pricing
(Hospitality, Insurance, Investments)
PCM USE CASES EXAMPLES
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Shared Service Costing
• Indirect Rates (Defense contractors)
• Standard Costing Rates
(Manufacturing)
• IT Financial Management (Telecom)
• Non-IT Shared Services (Insurance,
Banking)
Defense
PCM
Banking
Services
Investments
Manufacturing
Healthcare
Performance Ledger
• Reduce thick ledger design
• Enhance close processing
• Multi-scenario analysis

14. DEMO APP - OVERVIEW
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> Profitability by Customer and Product for a
Manufacturing Company
> Allocation methods:
> Waterfall: step by step sequential allocation
> Reciprocal: a cost originator can act as cost receiver
in the same allocation step
> Iterative: repetitive allocation that consumes the cost
originator data in a predefined number of steps

15. DEMO APP – ALLOCATION FLOW
Corp Facilities Exp
Materials, Manuf.
Products
Direct, Supporting Dept
Activity Assignment
Operating Expenses
Costof Goods,
Operating Exp
Products
By Customer
Customer
Square Footage
BOM
Time Survey
Sq. Ft
PO
Operating Expenses
SupportCostCenters
Headcount
# Desktops
Adv. Spend
Shipping
Assembly
Fabrication
Quantity
# Visits
# Calls
Servicing Returns
# Orders
Quantity Sold
By Product
Products
Customers
Source Drivers Destination
Quantity Sold
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16. DEMO
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17. PERFORMANCE MANAGEMENT CYCLE - RECAP
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STRATEGY
INSIGHTEXECUTION

18. Q&A
> Agenda
> Alithya Overview –
EPM & Analytics
> About the speaker
> Performance
Management Cycle
> Delivering Strategic
P&Ls
> Statutory & strategic
P&Ls
> Focus on the solution
> Existing solutions
> PCM = F-A-S-T and
Reliable reSults
> PCM Use Cases MAP
> PCM USE CASES
EXAMPLES
> Demo app -
Overview
> Demo app –
Allocation flow
> Demo
> Performance
Management Cycle -
recap
> Find Us At
OpenWorld 2019!
> Presentations at
Thirsty Bear
> Networking & fun!
> Direct vs indirect
costs
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19. FIND US AT OPENWORLD 2019!
IT Financial Management with Oracle EPM Cloud [PRO5553]
Monday 9/16 | 9am-9:45am
Conference Sessions:
Client Conference Sessions:
Customers Present: Enterprise Data Management with Oracle EPM
Cloud [PAN5560]
Wright Medical
Thursday, Sept 19, 1:15 p.m. - 2:00 p.m.
PCMCS Customer Presents [PAN5562]
Pacific Life
Thursday, Sept 19, 3:15 p.m. - 4:00 p.m.
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20. Journey to a Standardized Cloud Budgeting Solution with Thermo Fisher Scientific
and Alithya
EDMCS and FDMEE – The Foundation to Wright Medical’s Hybrid EPM Landscape
Streamline Capital Planning in Healthcare, Higher Ed, and Transportation with
Alithya’s Capital Portfolio Process
Oracle ACE Panel: Definitive, Accurate Answers from Oracle Recognized EPM
Experts
The Wright Move – A Continued Journey to the Oracle EPM Cloud
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PRESENTATIONS AT THIRSTY BEAR

21. NETWORKING & FUN!
Cheers & Beers
Unwind in the afternoon with us during the conference while
enjoying a fine selection of craft beers brewed by Thirsty Bear.
Thirsty Bear Brewing Company
Wed 9/18
2pm - 4pm
661 Howard St | San Francisco | CA | 94105
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