Edgewater Ranzal presented "HPCM Management Ledger & FDMEE: The Perfect Partnership?" at the UKOUG 2015 conference in London

1. EDGEWATER RANZAL
HPCM Management Ledger & FDMEE: The
Perfect Partnership?

2. The Perfect Partnership?
Q&A
Conclusion and Final Thoughts
Prelude
Introduction

3. Edgewater Ranzal is a full-service Oracle
Platinum Consulting Partner delivering premier
services in the UK and North America
We deliver Business Analytics solutions that
include Oracle Hyperion Enterprise Performance
Management (EPM) and Business Intelligence (BI)
Our multiproduct focus offers domain expertise and technical leadership using
the Oracle Hyperion Product Suite
We have industry expertise and specializations to help us deliver end-to-end
solutions for each client’s business needs

4. Ray Fevrier – Practice Manager
• Functional Skill Areas
– Enterprise Performance
Management (EPM)
– Business Intelligence
– Metadata and Data Integration
• Technical Skill Areas
– Essbase (BSO/ASO)
– Oracle Data Integrator (ODI)
– Financial Data Quality
Management (FDM/FDMEE)
– Informatica (DIM)
– Data Relationship Management
(DRM)
– Essbase Studio
– Essbase Integration Services (EIS)
– Hyperion Application Link (HAL)
• Industry Exposure
– Utilities
– Government
– Telecommunications
– Logistics/Transportation
– Financial Services Industry
– Investment Industry
– Healthcare
– Manufacturing
– Insurance

5. Andrew Laferla – Project Lead Consultant
• Functional Skill Areas
– Enterprise Performance Management
(EPM)
– Activity Based Costing and Regulatory
Costing
– Business Intelligence
– Enterprise Planning and Budgeting
• Technical Skill Areas
– Oracle (Hyperion)
– Essbase (BSO / ASO)
– HPCM (Hyperion Profitability and Cost
Management)
– Hyperion Performance Scorecard (HPS)
– Calculation Manager
– Shared Services / EPMA
– SmartView
– CXO Cockpit
• Industry Exposure
– Utilities
– Government
– Parastatal
– Telecommunications
– LogisticsTransportation
– Financial Services Industry
– Investment Industry
– Healthcare
– Manufacturing
– Insurance

6. The Perfect Partnership?
Q&A
Conclusion and Final Thoughts
Introduction
Prelude

7. Introduction
Problem Statement
FDMEE
Management Ledger

8. Problem Statement
• Organizations today live and die by the decisions they
make.
– Meaningful interpretation of the huge amount of organization
data into actionable information is of the utmost importance.
– Their ability to control costs and generate sustainable, profitable
growth is imperative in creating shareholder value.
• Once the Financial Close Process has been optimized,
finance has an opportunity to provide tremendous value to
their internal business partners by facilitating and
supporting the closed loop management disciplines of
strategic planning, rolling forecasts & profitability analysis.

9. Problem Statement
• Organizations need information management solutions that typically
contain the following key characteristics:
Flexibility
• Analyze different
chargeback
approaches to yield
optimal mix of
services versus costs
incurred by the
entity.
• Rapidly evolve
methodologies as
the business
changes.
• Provide What-If
Capabilities to assess
impact of key
business decisions on
bottom line
Accuracy
• Provide key
stakeholders
confidence in the
numbers produced
and methodologies
employed to ensure
compliance.
• Achieve this through
meaningful
allocations,
automation, and
system controls
Shared
Methodology
• Define consistent
allocation and charge
back methodology
across all
management cycles.
• Ensures consistent
comparisons when
reviewing and
updating
methodology result
and planning for
future management
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
ensure efficiency.
• Allow LOB managers
to understand cost
to serve and
profitability results.

10. Introduction
FDMEE
Problem Statement
Management Ledger

11.  Oracle’s solution for enabling seamless Metadata (for EBS and PeopleSoft) and Data Integration
 Combines ERP Integrator (ERPI) and FDM into a single product
– Upgrades ERPI to FDMEE with FDM features added
– Legacy FDM not available starting with release 11.1.2.4
 Develop direct “out of the box” integration
– Sources prioritized based on market demand
 Open Interface Adapter
– Use when “out of the box” integration not available
– Licensing allows modification to ODI packages delivered with FDMEE
File
Other RDBMS
Oracle ERP, SAP
Data Strategy Management
Financial Close
Planning & Forecasting
Profitability Management
Financial Reports
Microsoft Office
Metadata & Data
Drill-Through & Write-Back
Web Interface
Meta-data
Financial Data Quality Management, Enterprise Edition

12. FDMEE – Main Product Features
Source System /Import
Format
Define sources including files and ERPs, and then map the source
columns/fields to dimensions in EPM applications
Mapping Rules
Identify how source dimensionality translates to target
dimensionality. This is the heart of the FDMEE application
Data Load Rules
Create an integration definition that can be reused each period.
Uses a point of view specified by the user for period, category,
etc.
Scripting
Customize FDMEE processing using Jython or Visual Basic
scripting
Reporting Modify seeded reports or create new reports using BI Publisher
Batch Processing
Create batch definitions that can be scheduled and run in
“offline” mode
Data Synchronization
(New in 11.1.2.4)
Select EPM Applications as an integration source, including HFM
journals

13. Data Synchronization
• ERP to EPM
• EPM to EPM
• EPM to ERP
– Write-back supports
Budget or Actual
– EBS and PSFT only
• Any Source to
Custom Application
– Generates a file flat
ERP Sources
Profitability and Cost
Management and
Essbase
HFM and Tax
Planning

14. Introduction
Management Ledger
Problem Statement
FDMEE

15. Hyperion Profitability and Cost Management
“Oracle Hyperion Profitability and Cost Management
provides actionable insights into costs and profitability. It
drives business performance by discovering the drivers of
cost and profitability and empowering users to improve
resource alignment. Oracle Hyperion Profitability and Cost
Management leverages Oracle Essbase for faster, more
powerful multi-dimensional analysis”

16. • HPCM has evolved over the years to include 3
separate modules:
– Standard Profitability (Version 11.1.1.1)
– Detailed Profitability (Version 11.1.2.2)
– Management Ledger (Version 11.1.2.4)
• All HPCM modules have separate Use Cases
but overlap in some critical areas.
HPCM - Modules

17. HPCM – Modules Differentiation
• Standard Profitability
– Version 11.1.1.1
– Focuses on contribution analysis, following the flow of cost and
revenue funds through all stages of the process to determine
where funds are coming from, and where they are going.
• Detailed Profitability
– Version 11.1.2.2
– Provides a single-step allocation of pools or rates from a single
source to a destination for the purpose of analyzing profitability.
– Detailed Profitability utilizes a relational database for model
artifact storage, calculations, and reporting views.

18. HPCM – Modules Differentiation
• Management Ledger
– Version 11.1.2.4
– Management Ledger applications are designed for
use by analysts who have deep domain experience
in the computation and reporting methods of
management reporting, but who may not have
much experience with Essbase and scripting
syntax or programming languages.

19. HPCM – Modules Differentiation
Model Complexity
Reporting and Analysis
Ease of MaintenainceEnd-User Focus
Data Volume Handling
Standard Profitability Management Ledger Detailed Profitability
Standard Profitability Detailed Profitability Management Ledger
Model Complexity 5 2 4
Reporting and Analysis 5 3 4
Ease of Maintenaince 3 3 5
End-User Focus 4 2 5
Data Volume Handling 2 5 4

20. Introduction
Q&A
Conclusion and Final Thoughts
The Perfect Partnership?
Prelude

21. The Perfect Partnership?
Data Flow Overview
HPCM Management Ledger (Demo)
FDMEE (Demo)

22. Data Flow
Staging Area
Hyperion Workspace Hyperion Essbase
Smartview
/ FR
Analytics
Layer Smartview
/ FR
HPCM Analyst End User
HPCM Management
Ledger
EPMA
Source Systems
HPCM Standard
Model
HPCM
ASO
Reporting
(ASO)
HPCM
BSO
HPCM
ASO
Color Scheme
Metadata Load (ODI)
Metadata (EPMA)
Data Load (FDMEE)

23. Intra HPCM Management Ledger Data Flow
Source Data
•Multiple Source data systems including:
•General Ledger and other ERP applications
•Relational Tables (Driver and other Metric Tables)
•Excel/Flat Files
Flatten
•Intrastage Profit Centre allocations to allocated ‘anchor’ Profit Centres to the
relevant sibling ProfitCentres
•Driver based on Source input.
Allocate
•Intra Stage Allocations to allocate from Back End Profit Centres to other
relevant Profit Centres..
•Driver is percentage based.
Expand
•Cross dimensional allocations from No_Region to multiple regions based on
the Legal Entity Association
•Driver based on Number of Customers.
PCM_MNT

24. The Perfect Partnership?
FDMEE (Demo)
HPCM Management Ledger (Demo)
Data Flow Overview

25. The Perfect Partnership?
HPCM Management Ledger (Demo)
FDMEE (Demo)
Data Flow Overview

26. HPCM Management Ledger
Navigation
Managing Rules
Reporting

27. HPCM Management Ledger
Navigation
Managing Rules
Reporting

28. Management Ledger – Navigation
• Simplified Task Area
• Key Task Areas have fallen away
• Stages
• Importing Staging Tables
• Driver Definitions and Selections
• Data Entry
• Simplified Rule Management

29. HPCM Management Ledger (Demo)
Managing Rules
Navigation
Reporting

30. Management Ledger – Managing Rules
Sets the context for
ALL rules
Rule based context
Rules belonging to
the selected Rule Set
POV Selection

31. Management Ledger – Managing Rules
Number that appears in
Traceability Maps
Sequence of the Rule in the Rule
Set

32. Allows for a flat percentage or
amount to be allocated out
Available dimension after
Global and Rule context
Member Selection which CAN
BE A PARENT
Limited filtering based on UDA
or member name
Management Ledger – Managing Rules

33. Management Ledger – Managing Rules
Similar functionality as in
Standard HPCM
Member Selection which CAN
BE A PARENT
Limited filtering based on UDA
or member name

34. Management Ledger – Managing Rules
• No driver selections or
exceptions section.
• By default at destination but
can be set wherever relevant
location.

35. Management Ledger – Manage Calculations
POV Selection
Comments that appear in the Job
Library
All Rules, a range of rules sets or a
single rule can be run in at a
single time

36. Validating Applications – Rule Balancing
Unallocated
Amount
Amount Allocated
Out Per RuleSet
RuleSet Name

37. HPCM Management Ledger (Demo)
Reporting
Navigation
Managing Rules

38. Reporting – Traceability Maps

39. Reporting - Flatten
• Data is at the required level (Levelling/Normalisation):
• Data has been Allocated from ‘Anchor’ Profit Centres to all relevant Profit Centres based on initial
Source data.
• Anchor Profit Centres are fully allocated out.
• Total Profit Centre amounts remain consistent through each stage.

40. Reporting - Allocate
• Data must be allocated from Back-End Functions to Front-End Functions.
• Data is allocated to Front-End Function based on a Percentage Driver
• Anchor Profit Centres do not receive cost.
• Total Profit Centre amounts remain consistent in through stage.

41. Reporting - Expand
• Data must be expanded from No_Region to the appropriate Region.
• Data is expanded based on the Legal Entity ownership.
• Data is expanded across Regions based on Customer Count.
• Total Profit and Total RegionCentre amounts remain consistent in through stage.

42. Introduction
Q&A
The Perfect Partnership?
Conclusion and Final Thoughts
Prelude

43. Conclusion
FDMEE
• Data integrity.
• Data drill back to source.
• Process monitoring of data load.
• Automation/Batch Runs.
• Metadata Management*
• DRM integration**
• Data Synchronization between
applications
• Minimized Dependency on IT
Management Ledger
• End User Focused Modelling – no
technical learning curve.
• Dynamic Modelling ability.
• Automated Running of Calculations.
• Fast Modelling Change Turn
Around.
• Fully Traceable and Auditable Data
Transformation.
• Minimized dependency on IT.
Data is provided to the relevant stakeholders in an effective, efficient and meaningful
way!

44. Flexibility
• Analyze different
chargeback
approaches to yield
optimal mix of
services versus costs
incurred by the
entity.
• Rapidly evolve
methodologies as
the business
changes.
• Provide What-If
Capabilities to assess
impact of key
business decisions on
bottom line
Accuracy
• Provide key
stakeholders
confidence in the
numbers produced
and methodologies
employed to ensure
compliance.
• Achieve this through
meaningful
allocations,
automation, and
system controls
Shared Methodology
• Define consistent
allocation and charge
back methodology
across all
management cycles.
• Ensures consistent
comparisons when
reviewing and
updating
methodology result
and planning for
future management
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
ensure efficiency.
• Allow LOB managers
to understand cost
to serve and
profitability results.
FDMEE and HPCM Management Ledger – Making a F.A.S.T approach even FASTER
Conclusion

45. Introduction
Conclusion and Final Thoughts
The Perfect Partnership?
Q & A
Prelude