Oracle Hyperion Planning

Agenda

• Introduction – The BizTech Team• A Typical Budget Process• Problems That Surface During Budgeting• What is Hyperion Planning?• Hyperion Planning Solutions• Summary

Introduction

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A Typical Budget Process

The Typical Budget Process• Excel Templates are prepared by the FPM team (usually in October)

– Last’s year budget amounts is cleared out– Current year actual results are annualized and emailed out on a separate template.– All formulas are checked to ensure that links and calculations are working

• Templates are instructions are emailed out to department heads– Each department head is responsible for their own budget. In larger companies this

often involves sub-departments separated by location or line of business– Requested time frame is usually three weeks to complete– Email reminders are usually sent out one week prior to submission

• Templates are submitted to FPA by department heads– For a typical company, this also involves chasing down a few stragglers, collecting all the

templates, and consolidating into one master budget. – Often works out to over 100 Excel spreadsheets.

• Data is consolidated, reviewed and audited– Each formula must be reviewed, audited, printed out and manually subtotaled– Multiple versions are often required to keep track of changes. – Budget is submitted to management for first pass review and process begins again

Which best describes your budget process?

10

Problems That Can Surface During Budgeting

• Excel is an outdated tool when preparing detailed Annual Budgets– Larger or even mid-sized firms with multiple lines of business, products, departments, cost

centers and locations can often find themselves needing hundreds or even thousands of Excel templates to prepare a consolidated budget.

– Most summary and detail departmental templates need to be printed out and audited by someone in finance and accounting to verify data integrity.

– One broken link among thousands will lead to an incorrect budget and time consuming fact finding.

– Emailing budgets to and from users is time consuming, can be accidentally overlooked or discarded, risks data integrity and is prone to user errors or consolidation issues.

• Multiple versions lead to different versions of the “truth” – Often a company will have multiple versions of a budget, one for baseline, one for upside

one for downside and sometimes numerous other combinations. Review of these various versions wastes valuable time and blurs the truth of what should be the most realistic budget.

• Dated material– By the time the budget process begins, and budgets are sent out, received back, sent out

again, revised, approved, further revised and achieve final approval, months can often pass, leading to outdated or irrelevant budgets, depending on current conditions.

A Disconnected Processes

• Time – cycles take too long, missed opportunities and obsolete plans

• Quality – data integrity, lack of standardization and communication

• Flexibility – lack of responsiveness to changes

• Cost – many wasted resources, questionable benefits

FP&A

Senior Management

Annual Plan & Forecast

Revenue & Cost Models

M&A

Departmental Plans

Headcount Plans

Treasury Plans

Long-Term Planning

But Excel is NOT the best way to prepare budgets anymore!• Error-prone and labor

intensive• Disconnected from all

users• Numerous Security Risks• Doesn’t scale to

company size• Few controls / audit

trails• Not ideal for multiple,

complex calculations• Spreadsheets are

inefficient for more than two dimensions

Most Budgeting is Done Here…

What is Hyperion Planning?

Hyperion Planning

• Strategic Planning• Modeling & Simulation• What-if Analysis• Excel Integration• Enterprise Collaboration• Currency conversion feature for

multi-currency applications• Uses the Power of Essbase#1

Planning & Budgeting Applications in the World

Speed & accuracy Finance owned Align finance and operations Accountability Visibility to past, current and future

business performance

BENEFITS

FEATURES

What is Hyperion Planning?• Oracle's Hyperion Planning is a web driven Planning and Budgeting tool that

utilizes Oracle Essbase as the data storage and calculation engine. • Hyperion Planning sits on top of the Essbase OLAP server.

– By leveraging Essbase' s multidimensional data model as well as standard relational database management platforms, Oracle's Hyperion Planning provides a powerful tool for forecasts, budgeting, reporting, and analysis.

• The Essbase portion of the application gives Hyperion Planning the calculation power to handle predictive planning, allocations and complicated revenue recognition planning.

• While Oracle Hyperion Planning is a web software application, it also has an add-in with Microsoft Office (called Smartview) which allows users to forecast or budget in Microsoft Excel, an environment comfortable to most finance users.

• Hyperion Planning is part of Oracle's Hyperion EPM software suite and is often utilized with Hyperion Financial Reports and Web Analysis to enhance the analytic value inherent in its underlying use of Essbase.

• Oracle Hyperion Planning has two additional add-in modules, Workforce Planning and CapEx Planning that can be used along with Oracle Hyperion Planning to increase performance drivers in budgets and emphasize operational budgeting.

Run models based on key strategiesSet targets

Seed targets to annual operating planStart annual process

Update strategic plan with latest forecast

Evaluate resource and capital requirements

Long-term strategic plan

Annual budget / plan

Validate operational feasibility

Evaluate workforce and

capital

Monthly / rolling

forecast

Update long-term strategic

plan

Achieving a World Class Enterprise Planning Process

Assess and Manage Risk

Validate operational feasibility to financial plan

Update forecast with latest budget and actuals

A world class budget process utilizing the right tools can take a few weeks.However, at many companies, the budget process can take months.

Hyperion Planning Budgeting Process

• The Hyperion Planning Process lets users track the progress of a budget from any level in the organization using a Web-based client.

FirstPass

Under Review

(Not)Signed

Off

Approved

Single Centralized Planning Platform

Essbase Calculation Engine

Planning Foundation

Data Warehouses Transactional Systems

Workspace (Web) MS Office

P&LB/SC/F

Workforce Planning

Sales Planning

Marketing Planning

CapEx Planning

Operational plans

Financial Services

Industry models

Manufacturing

Consumer Goods

Retail

Performance Management Applications

Client Tier

Server Tier

Database Tier

Source Systems

Relational Component

OLAP ComponentMS SQL Server

Oracle

IBM DB2 Essbase

Data Integration

GL CRM HR DW etc. etc.

MicrosoftOffice

Internet Explorer

Netscape

ReportingStudioAdministrative

Studio

Application Server Web Server

Apache Web Server

Microsoft IIS

Apache Tomcat

BEA Weblogic

IBM Websphere

Macromedia JRun

Hyperion Planning Architecture

Key CapabilitiesUpdate Forecasts based on changing environments

• Continuous forecasts (rolling, event based)

• Manage budget process and workflow

• Top-down and bottom-up budgeting• Generates P&L, B/S and C/F• Prepares by Business Unit,

Department and Cost Center level• Revenue and cost allocations

handled automatically• Driver-based planning• Workforce planning• Capital asset planning

Business Rules - Ensure Consistency of Calculations and Allocations

• Graphical design• Use building blocks• Easy to read and understand• For planners, not programmers• Powerful calculations and allocations

Hyperion Planning Overview

Data Forms

Microsoft Excel

Hyperion Essbase

Financial Reports

Web Analysis

Data Sources

Microsoft Office

Essbase and Planning• Multidimensional database management system

(MDBMS) that provides a multidimensional database platform upon which to build analytic applications.

• One Version of the Truth• Speed-of-thought analysis for thousands of

concurrent users• Easy for users to consume data via spreadsheets• Write-Back capability of data and Powerful

calculation engine• Powerful security module down to cell level• Scalable to enterprise-level user base• Premium Performance & Optimized Storage• Ease of development, deployment and

maintenance• Stand Alone Application to eliminate spreadsheet

reporting

Hyperion Planning Solutions

Hyperion Planning Solutions• More Efficient Process, controlled by Finance

– Budgets are ready for input immediately upon release by FPA– Reduces time to complete, risk of “stragglers”, resource misuse

• Reduced data entry, risk of errors and risk of key files on desktops or C drives– No hidden or offline files. All supporting detail can be uploaded to the Budget.

• Easier budget consolidation – no need for manual uploads, email of files or transferring of files.

• Budget commentary available on-line• Fast calculation performance – most calculations performed in 4 seconds or less• Workflow feature ensures timeliness or user preparation and management review

– Email alerts to remind user of deadlines.• Standard calculations and business rules maintained in database• Reduced Administration and stricter security. • No set up from budget to budget cycle. Process begins immediately• Reports automatically pick up new database members (new depts.)• Low end-user training requirements• Implementations can take as little as three months

• Web Based Enterprise Solution• Prepare Financial and Operating

Budgets simultaneously• Full “Off-Line” Planning Capabilities• Guided Work Flow via Task Lists• Improved Process Management &

Controls• Rolling Forecasts• Modeling & “What if Scenarios”• Break-Back & Driver Based Plans• Workforce Planning to assist with

headcount, salaries, merit pay and bonuses.

• Capital Planning to assist users with forecasting and analyzing future capital needs.

Manage the Planning & Forecast Processes

Guide Users Through Budget Process

• Budget wizard to guide planners from start to finish

• Include instructions• Set due dates for entry and

review• Create templates and forms

for data entry or enter data in Microsoft Excel

• Alerts and progress monitoring• Send email reminders on

status and timing for preparation.

• Report on budget status can be made visible to any or all users.

The Hyperion Planning Process

Not Started First Pass Under Review Signed Off Approved

Not SignedOff

Start

Exclude

Promote Sign-off Promote

Promote

Sign-off Reject

Approve

Approve

Hyperion Workforce Planning

• Packaged solution for quick implementations

• Plan salary and othercompensation at any level

• Add, edit and delete employees and new hires

• Pre-defined or custom calculations for taxes, etc.

• Integrates actuals from HR systems

• Test scenarios in real-time for impact analysis

Improves Headcount, Salary and Compensation Planning

Hyperion Capital Expense Planning

• Packaged solution• Customizable• Plan for asset purchases and

asset related expenses • Transfer, retire, and improve

assets• Directly linked

to main plan• Interfaces with

external systems

Improves Planning the Acquisition, Lifecycle Management, and Retirement of Assets

Hyperion Smart View• Accounts love their Excel and

Oracle Understands this!• Planning features Ad-Hoc

Analytics via Excel via reports or Drill through/back

• Use MS Office to enter, analyze and report on subsidiary data

• MS Excel add-in allowing access on or off-line

• Users download forms to Excel• Manipulate data just like

the full web client• Synchronizes to server

when ready to be updated.

Summary

Planning - Fundamental CapabilitiesIntegrated nature of the system + BI integration = no more surprises

Turn on a dime - Web architecture & world-class deployment tools enable rapid time to plan – gain the competitive edge

More people, more often means more accuracy

Integrated architecture of the system means real-time visibility into past, current and future business performance

Driver-based capabilities to enable operational planning means more frequent updates in a language the user base will understand & finance can use

Integrated architecture linking financial to operational plans allows transparency across & down the organization

Optimized architecture to allow for small or wide scale changes to the plan in line with business conditions

The world leader in financial & operational planning for over 25 years offering a truly unmatched integrated business planning solution

Planning – Additional FeaturesPowerful high-level strategic planning & modeling engine that can be translated to an operating plan and deployed to a wide audience

The ability to model at the operational level whilst assessing impact to the overall strategic plan

See impact of acquisitions, mergers, pricing strategies and more

See the business impact of changing business drivers to make intelligent decisions

Technology that allows the entire user community to communicate & plan in real time

Cascade high level plans to the divisions that can be customized whilst still connected to the overall plan

Fully integrated & native business intelligence capabilities for detailed reporting & analysis

Bi-directional planning capabilities to promote accuracy & accountability

“Every company claims they deliver quality at a good price, why is BizTech the superior choice…”

• Oracle Platinum Partner• Client First Philosophy• Focused Mission• Proven Methodology and Process Orientation• Simple to engage and do business together• Encompassing Ethics and Integrity• Balanced Leadership Team• Focused on YOUR industry area for over a decade

Why Choose BizTech

37

LightSquared, Hyperion PlanningBroadband provider with the mission to revolutionize the U.S. wireless industry with the creation of the first-ever, wholesale-only nationwide 4G-LTE network integrated with satellite coverage.

Challenges:• Need to manage and forecast $6B in spend to support

national 4G LTE broadband network• Ability to quickly create multiple financial models based on

optimal funding source strategies• Predict labor costs associated with rapid growth plans• Complex sources and uses model to track cash source and

cash use throughout the business

Solution:• Hyperion Planning Suite 11.1.1.3

Results:• Ability to track cash sources and uses throughout the

business cycle from project through accounts payable• Provide CFO office with rapid response of forecasting

scenarios• Ability to plan headcount growth and cost to support growth

Choose | The Right Approach BizTech RapidApp Methodology

BizTech leverages our proven methodology, RapidApp, on every engagement– Phases

Break the project into smaller, more manageable, sections of work Allow for “planned pauses” & overlap

– Tasks & Actions Areas of concentration within a phase Not all will be performed on every project

– Deliverables Formal work products requiring review and acceptance “Controlling” documents

– Policies & Procedures Project planning, progress tracking Status reporting Project scope definition and management Formal acceptance of deliverables

RapidApp Methodology

The two most critical concerns for a successful implementation:

PROVEN APPROACH

EXPERIENCED PRACTITIONERS

Prepare Test DeployConfigure

Initial Planning

Prepare Environment

Define ProjectLaunch Project

Accelerator Prep

Accelerator Magic

Conference RoomPilots

Superuser Training

Go/No Go Decision

Setup Test/System Testing

End User Training

Setup Production

Go Live!User Acceptance

Testing

Project Mgmt, Quality Assurance, Knowledge Transfer

Prepare Test Scripts

Prepare CRP Scripts

Post-Go LiveSupport

D

D

D

RapidApp Methodology

RapidApp (cont.)Phase 1: Prepare• In the Prepare phase, our objective is to build your project mission and definition.

We will build a roadmap and framework for the entire project. • We define the scope and terms; identify people and resources, milestones and

targets. • We work with your project team to establish and communicate expectations for

the project and perform baseline Oracle training. – All implementation strategies are explored and decided upon during this phase.

• We will establish the base line technical infrastructure that will be necessary to complete the project.

– All of these elements are the basis for developing your project plan.

At the end of the prepare phase, the deliverables include:• A definition of Scope, Objectives & Approach that will guide the

project.• A RapidApp WBS that outlines all tasks as well as a resource plan.• A Quality Plan for all phases and deliverables.

RapidApp (cont.)Phase 2: Configure• In the Configure phase, you’ll establish the boundaries of your project. • We will work with your team to capture your functional requirements and

translate those requirements into a technical design. The technical design becomes the foundation against which we develop the data warehouse, ETL and dashboards.

• The conference room pilot at the end of the Configure phase will be the point at which we validate that the develop solution matches the defined requirements.

At the conclusion of the configure phase, you will have:A definition of Scope, Objectives & Approach that will guide the project.• Application Functional Design specification document(s)• Application Technical Design specification document(s)• Conference Room Pilot Scripts that were used to validate the

system• A working non-production environment (data warehouse, ETL,

dashboards and reports)

RapidApp (cont.)Phase 3: Test• You’re going live soon, and we’re helping you prepare. We’re with you to update

and configure the final system configuration. • We’ll help you conduct system testing to ensure a smooth transition into

production. • We’ll also help you determine a training approach for your end users, design

training material and a training environment, and conduct the training, if requested.

At the end of the test phase, the deliverables include:• Documented Test Scripts that you used to test the system• A complete end user training approach ready for rollout including

Training Guides• A fully tested, production-ready system.

.

RapidApp (cont.)Phase 4: Deploy• Your Oracle solution is live. As you make the transition, we can remain with you in

a support role, helping to troubleshoot, teaching you how to maximize the value of your new system, and identifying any new opportunities to continue with the transformation to an e-business company.

At the end of this phase, you will have:• A System Configuration Document• A Production Software Infrastructure Summary• A Deployment Plan• Stopped doing your business processes in your legacy system.• Moved all project support activities to your production support

team.• Trained your end users.

RapidApp: The Value Proposition• Allows organizations to realize immediate cost savings through an

accelerated implementation.• Establishes a budget conscious methodology that deploys functionality to

satisfy core functional requirements. • Promotes the selection, inclusion, and customization of additional

functionality through additional discovery after your product is implemented.

• Facilitates a phased approach in which knowledge transfer is conducted whereby clients assume ownership of future project phases; reducing dependency on external services and associated costs.

• Utilizes pre-built, customizable templates (models, forms, reports and business logic) reducing development cycles and project cost.

Architect

Lead

Associate

The Architect designs the solution, and is interacting with the work stream leads to ensure implementation approach is optimal.

The Leads are Subject Matter Experts, responsible for client interactions, requirements, ensuring Associates execute the work plan tasks and validates solution.

The Associate may be on-site or remote, executes the work plan tasks, unit test, and provides completed work to Lead for testing. Adds 3rd shift productivity to team.

• Maximizes value over traditional team approach• Minimizes risk of single threaded SME approach

Leveraging the Architect – Lead – Associate model yields higher productivity at lower cost, which:

ALA Delivery Resource Model

Contact InformationStephen Goldsmith

BI Practice Director

(610)592-0600

SGoldsmith@Biztech.com

Timothy Simkiss, CPA, MBA

Hyperion Project Manager Practice Director

(610)592-0600

TimSimkiss@Biztech.com