Oracle's Profitability and Cost Management Cloud Service provides a pre-built solution for IT costing and chargeback. It includes dimensions, attributes, charts of accounts, services, drivers, rules, reports and views to help companies allocate IT costs to business units and measure the value of IT spending. The cloud-based system automates allocation processes and enables "what-if" scenario planning without disrupting existing results. It aims to increase transparency and accountability around corporate IT budgets.

1. Overview Profitability and Cost
Management Cloud Services
Profitability & Cost Management Cloud Service (PCMCS)
Oracle IT Financial Management (ITFM)
Mike Killeen, Sr. VP, Oracle Ace

2. 20+ Years
1000+ Clients
2000+ Projects
AGENDA
> Introductions
> The Need for Profitability & Cost Management
> Oracle Profitability & Cost Management Cloud
Service Overview
> Oracle IT Financial Management – prebuilt
content on top of PCMCS
> Closing and Q&A
2

3. TODAY’S PRESENTER – MIKE KILLEEN
> Sr. Vice President, Oracle Ace
> 21+ Years EPM & BI Experience
▪ 6 Years – Strategic Initiatives & Advisory
▪ 2 Years – VP, UK Division
▪ 6 Years – Planning & Analytics Practice Director
▪ 8 Years – Implementation Consultant
> Expertise across Multiple Domains
▪ Business Intelligence & OLAP
▪ Planning, Budgeting & Forecasting
▪ Financial Consolidation & Reporting
▪ Cost Allocations & Profitability Analysis
▪ Master Data Management
3

4. ALITHYA OVERVIEW – ORACLE EPM PRACTICE
4
Comprehensive Business Solutions
Alithya’s solutions drive improved business performance
through better decision making, strong customer
engagement and optimized operations
Deep Oracle Partnership Drives Customer Value Adaptable Deployment Models
Diverse Client Portfolio & Industry Expertise
Retail
Energy/
Utilities
Team Highlights
Multiple
Oracle ACEs
Seasoned delivery
team with avg ~8
yrs serving Alithya
clients
Experienced
mgmt team with
avg 15 yrs leading
Alithya

5. HISTORY WITH PROFITABILITY & COST MANAGEMENT
SOLUTIONS
5

6. The Need for Profitability &
Cost Management

7. WHY PROFITABILITY & COST MANAGEMENT IS
IMPORTANT
7

8. If you can generate a whale curve by Customer, by Product, by Channel, etc, you’re on your way to making
intelligent decisions about your business.
PROFIT OPPORTUNITIES
8
Exploiting the Whale!
50% 15% 35%
$140 Mil
$81 Mil
Why $60M Loss?
Product/Customer/Channel/Market, etc
Profit
Detail?
Strategic
P&Ls

9. CHALLENGES IN PROFITABILITY MANAGEMENT
A PATCHWORK OF TECHNOLOGY APPROACHES
> Very manual
> Error Prone
> Time consuming
> Lacks controls & governance
> Creates Key Personnel
Dependencies
> Lacks transparency
> Financial close is slower,
bloated, and more costly
> Unable to extend ERP data
(e.g. customer)
> “Black-box” that is difficult to
maintain
> Slow to adapt
> Grows unwieldy over time
> May become unsupported
Spreadsheets ERP Custom Built
9

10. EXPECTED OUTCOMES OF A PROFITABILITY & COST
MANAGEMENT SOLUTION
> Reliability
> Visibly defensible profitability
and cost results through
transparency & audit/control
> Agility
> Timely reflection of results to be
actionable
> Flexibility in logic & reporting
> Relevance
> An ability to Allocate resources
to the most important
opportunities
Financial
Results
Revenue &
Cost Models
Operational
Results
FP&A
Senior
Management
10

11. Profitability & Cost Management
Cloud Service (PCMCS) Overview

12. ORACLE ENTERPRISE PERFORMANCE MANAGEMENT
Solution Architecture
12
Planning &
Forecasting
Profitability
Management
Enterprise Performance Management Suite
Strategy
Management
Customer
Management
Resource
Management
Owners & Investors RegulatorsManagement
Operational Systems
Performance
Reporting
Financial Close &
Reporting
Shared Integration Platform
General Ledger
Sub Ledgers
Financial Systems
Mappings & Drill BackHierarchies & Attributes Workflow
HCM
CX
SCM
ERP
FCCS
EPRCS
PCMCS
E/PBCS
ARCS
TRCS
HSFHP
HPCM
DRM/DRG FDMEE
Essbase
HFM
EDMCS CDM

13. ORACLE PROFITABILITY & COST MANAGEMENT CLOUD
Capabilities & Workflow
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Profitability & Cost Management
Cloud Service
(PCMCS)
Financial Reports, Smart
View, Embedded
Visualizations
Model Execution
No Large Initial Investment
Accessible
Always up to date
Limited IT Involvement
Embedded
Intelligence
Mobile
Rule Transparency
Allocation
Engine
Integrations Dashboards &
Work Areas
13

14. PCMCS SIMPLIFIED USER INTERFACE
14

15. DIMENSIONS
System Dimensions (2) POV Dimensions (1-4) Business Dimensions
15
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

16. PCMCS
PCMCS
PCMCS
DATA MANAGEMENT
> Native Load
> Formatted Text Document
> No Load Rule Required
> Loads can be initiated in PCM GUI
> Cloud Data Management (e.g. FDMEE “Light”)
> Provides data mapping
> Provides scheduling
> Provides Drill (included in user licenses)
> Flat File & Cloud to Cloud Import/Exports
> Hybrid (e.g. FDMEE On-Premises v 11.1.2.4+)
> Full CDM Functionality, plus….
> Custom Scripting & Automation
> Direct Connectivity to Ground Applications
> Additional licensing considerations….
16
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

17. POINT-OF-VIEW MANAGEMENT
> Point Of View (POV) allow for the ring fencing of
data, business logic and output
> Allows users to do complex what-if analysis
without interfering with previously released
results
> Users can copy financial and driver data
between POVs
> Users can copy Rule Sets and Rules between
POVs
> Users can clear input and calculated data
from POVs
> Users can change the POV state
17
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

18. RULES MANAGEMENT
> Point-of-view (POV) Specific
> Rules, Drivers, & Financials can vary by POV
> Completely GUI based
> Intuitive Business focus layout
> No coding knowledge necessary
> No staging tables to edit
> Four Easy Steps:
> 1. Define your Rule
> 2. Select your Source
> 3. Select Destination
> 4. Select Driver
> Optional – Select Offset
18
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

19. MODEL EXECUTION
> Pre-Calculation Validation
> Meta-data Validation
> Model Validation
▪ Rule Sets and Rules
▪ Model Views
▪ Queries
▪ Analytics
▪ Data Grants
> Data Validation
▪ SmartView
▪ Queries
▪ Rule Balancing Report
▪ Dashboards
▪ Financial Reports
> Post-Calculation Validation
> Data Validation
▪ SmartView
▪ Queries
▪ Rule Balancing Report
▪ Traceability Maps
▪ Dashboards
▪ Financial Reports
> System Validation
▪ Programme Documentation
▪ Dimension Statistics
▪ Rule Data Validation
▪ Execution Statistics
Calculation
19
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

20. REPORTING & ANALYSIS
> Provides built-in reporting and analytics
capabilities
> Are developed and maintained by end-users
> Minimizes the need for dedicated Reporting
teams. The people who use the reports can
develop them
> Provides:
> Population Performance Analysis
> Multi-dimensional P&Ls
> Cost Contribution Reporting
> Cost and Profitability Statistics
> KPI’s & Dashboarding
20
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Model Execution

21. Revenue
USD ~ $5B
Deployment Location
North America
Industry
Financial Services
Products
PCMCS, DRM
Legacy Platform
Planning
Essbase
PSGL
Apptio
Excel
Partner Use Case Summary
Vanguard needed to replace an excel based allocation solution that was too
high-level with no accountability for resource usage. PCMCS was
implemented, they are now seeing increased flexibility and reduced
maintenance allowing them to leverage what if capabilities that were
previously unattainable. PCMCS now enables each BU to understand their
resource usage and overall impact on the P&L.
Top Customer Objectives and Challenges
• Vanguard needed greater context to facilitate decision making around
capital allocations
• Improved financial insight in-order to explain, trace and define the value
delivered by business unit
• Eliminate skewed results on investment spending
• Create revenue adjustment analysis capability - to increase transparency
of alternative results
Results
• The PCMCS model enables them to generate allocation results within
PCMCS in under 20 minutes for Actuals scenario, and in under 40 minutes
for 3 years of Forecast data
• Can now run multiple daily cycles of allocations as forecast data is updated
throughout the day
• Full end-to-end automation with validation mechanisms enables the team
to simply verify a set of standardized reports and quickly troubleshoot
issues
Key Benefits Achieved
 Increased allocation totals
from 50% of revenue
generating expenses to
100% across entire company
 Business Unit Accountability
for Corporate Spending
 Faster Rule Development
 Ability to run Multiple
Allocation Cycles per day
 High Systems Availability
* PARTNER USE CASE *
Partner Contact:
Shereen Moubayed (BDM)
Shereen.moubayed@alithya.com

22. Oracle IT Financial Management (ITFM)
Pre Built Content for IT Shared Services
Leveraging Oracle EPM Cloud

23. PROFITABILITY & COST MANAGEMENT APPLICATION TYPES
23

24. CFO
CIO
$ $ $ $ $ $$
C-SUITE PERSPECTIVE:
Connecting the Value of IT to the Business
24
“With the business units in control of the IT budget… the CIO should expect to hear an increasingly common question from
the business to IT: ’For the check I wrote you, what value did we achieve?’” – CIO.com, Modernizing IT: How to
thrive as a CIO ‘value broker’
24

25. ALIGN IT TO RUN AND GROW THE BUSINESS
Oracle IT Financial Management (ITFM)
25

26. PCM IT COSTING & CHARGEBACK (ITCC) TEMPLATE
> Pre-Built Data Model
> 14 Base Dimensions
> 24 Attribute Dimensions
> Pre-Populated Content
▪ IT Chart of Account Definition (150+)
▪ Service Catalogue (50+)
▪ 40+ Drivers
> Pre-Built Model & Reporting Content
> 15+ Ratios/Metrics
> Time Series & Variance Calculations
> Starter Set of 40 Allocation Rules
> 15+ Smart View & Fin Reports
> 30+ Pre-Built Model Views for Analysis
> Pre-Built Interface Specifications
> 20+ Native File Formats managed by Source
> Alithya Accelerators WIP for Data Management
Mapping & Automation
Pre-Packaged Content for Cloud or On-Premise
26

27. PCM IT COSTING & CHARGEBACK (ITCC) TEMPLATE
Pre-Built Dimension Model
27
• Time: MTD, QTD, YTD, ITD
• Scenario: Pre-built variance calculations
• Currency: For Local, Reporting &
Constant Currency Analysis
• System Dimensions: Enables
Transparency
• Data Source: Recon & adjustments
between GL & Project/Vendor/Resource in
Sub-Ledgers
• Account & Service: Prepopulated with
content & calculations
• Optional Dimensions: Allow for phased
delivery and flexibility to adapt

28. Shared Costs $
(Cost Centers & Accounts) GL
IT Functions $
IT Functional Units $
(Cost Centers & Accounts)
Projects $
Project $
(Cost Centers & Accounts)
(Projects)
GL
Resources $
Vendors $
Services $
Consumers $
IT OH Support $
PR
Fixed Assets $
(Cost Centers & Accounts)
(Projects)
(Resources & Vendors)
FA
Services to Consumers
(Cost Centers & Accounts)
(Projects)
(Resources & Vendors)
(Services & Consumers)
Pre-Built Rules
Statistics
Drivers
Financial
Operational
Optional
PCMCS IT COSTING & CHARGEBACK TEMPLATE
Prescriptive Starter Set of Allocation Rules
28

29. PCMCS IT COSTING & CHARGEBACK TEMPLATE
Prebuilt Reports & Dashboards
29

30. Application TCO, IT Service Costing, IT Operational Reporting
The company uses the Oracle Cloud to measure the effectiveness of and drive
performance improvement for their technology business investments of
approximately > $1B OPEX. The system provides calculated views for cost
analysis by: project, resource class (labor, equipment), application, end-user
services, vendor, technology consuming business units, and platform. The
solution is fundamental for tracking several aspects of application TCO and
transparency to include senior management’s highly visible, cost reducing
strategic initiatives.
Top Customer Objectives and Challenges
• Objectives
• Reduce the cost of the existing Apptio solution: software & labor
effort
• A single, comprehensive, flexible, and efficient financial model for all
technology spend as basis for all cost analytics
• Challenges
• Lack of transparency & self-service reporting capabilities
• Multiple projects/financial models make it difficult to accommodate
frequent reorganizations
• Lack of what-if and forward-looking analytical capabilities
• Financial models with low business user adoption rate
• Low degree of modeler productivity caused by long system run times
and large volume and variety of data sources
• Disconnected Results with Core Financials
IT OPEX
USD: 1B+
Deployment Location
North America
Products – Oracle ITFM + Analytics
Oracle Profitability & Cost
Management Cloud Service
(PCMCS)
FDMEE
Oracle Analytics Cloud Service
(OAC)
Oracle DBaaS
Legacy Platform
Apptio
Oracle EBS
* PARTNER USE CASE *
Oracle ITFM Case Study
Technology Company
Partner Contact:
Coby Nichols(BDM)
Coby.Nichols@alithya.com

31. Closing and Q&A

32. SELF-EVALUATION QUESTIONS
> Does your company understand the true costs of its products or services?
> 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?
32

33. CLOSING AND Q&A
33
Mike Killeen
SVP, Technology & Strategy
Mike.Killeen@alithya.com

34. Appendix

35. ORACLE PROFITABILITY & COST MANAGEMENT
Key Application Benefits….F-A-S-T!
35
Flexibility
 Analyze different
allocation
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.
Audit & Control
 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.
 Create 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.

36. ORACLE PROFITABILITY & COST MANAGEMENT
Evolution of the Application
2008
HPCM
Standard Profitability
v 11.1.1.1
2012
HPCM
Detailed Profitability
v 11.1.2.2
2015
HPCM
Management Ledger
v 11.1.2.4
2016 (Oct)
PCMCS
Management Ledger
v 17.xx
36

37. ORACLE PROFITABILITY & COST MANAGEMENT
A Comparison of Different Modules
37
Role/Product Capability
HPCM
Standard Profitability
HPCM
Detailed Profitability
HPCM
Management Ledger
PCMCS
End User
End User Reporting
Hyperion Financial Reports,
Smart View
3rd Party SQL Query or BI
Tools
Hyperion Financial Reports,
Smart View
Web Financial Reports,
Smart View, Dashboarding
Transparency
Multi-Stage Trace Screen,
Geneaology
Limited Single Stage Trace Screen, Rules Dimension/Data Model
System Reports
Stage Balancing None Program Documentation, Rule Balancing
Model Manager
Maintain Rules
BSO Calc Scripts or GUI
Interface with RDBMS
Staging Tables
SQL Based Rules Designer
Limited ASO MDX or GUI
Rules Designer
Full ASO MDX or GUI Rules
Designer; Bulk Edit
Functional
Admin
Load Data
Essbase Load Rules, Native
File or Smart View
3rd party SQL Tool into
Tables
Essbase Load Rules, Native
File or Smart View
Cloud Data Management,
Native File, or Smart View
Load Master Data
EPMA or Essbase Staging
Outline
SQL Staging Tables
EPMA or Essbase Staging
Outline
Parent Child Text File or GUI
Dimension Editor
Automation
Essbase MaxL, EPMA Batch Client, LCM Client, HPCM Batch Client, SQL Loader Utilities EPM Automate
Application
Owner
Underlying Database
BSO & ASO Essbase Cubes,
RDBMS Stage
RDBMS Essbase ASO
Software Licensing
Higher Client Revenue Licensing Metric, plus annual maintenance
Lower Per User Monthly
Subscription
Oracle Innovation
No Further R&D Periodic Patching & Updates
Monthly Updates & New
Features
• HPCM Management
Ledger +
• Rule Maintenance
& Functionality
Enhancements
• Embedded
Analytics (“BI
Light”)
• Oracle EPM Cloud
Integration &
Automation
Platform
• Oracle EPM Cloud
Pricing & Operating
Model
Oracle PCMCS is: