Opus Group An Oracle PBCS Success Story - HUGmnhugmn.org/Downloads/techday2016/Edgewater Ranzal -...
Transcript of Opus Group An Oracle PBCS Success Story - HUGmnhugmn.org/Downloads/techday2016/Edgewater Ranzal -...
Business Analytics Solutions Provider Using Oracle EPM and BI Technologies
Opus Group – An Oracle PBCS Success Story
Charlie Luke – Sr. Director, FP&A, Opus Group
Vatsal Gaonkar – Project Lead, Edgewater Ranzal
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Edgewater Ranzal is a full-service Oracle Platinum
Consulting Partner with premier services
in North America and regional offices in the United
Kingdom
We deliver Business Analytics solutions that
include Oracle Hyperion Enterprise Performance
Management (EPM), Business Intelligence (BI) and Big Data technology
Our multiproduct focus offers domain expertise and technical leadership using the Oracle
Business Analytics Product Suite
We have industry expertise and specializations to help us deliver end-to-end solutions for
each client’s business needs
Who We Are
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Our Services
Financial Close &
Consolidations
Business
Intelligence/Big Data
Enterprise
Planning &
Analytics
Data Integration
Services
Training &
Support Services
Advisory ServicesInfrastructure
Costing &
Profitability
Mgmt
Business Intelligence/Big Data
• Scorecards & Dashboards; Mobile Delivery
• Prepackaged Analytic Applications (OBIA)
• BI Foundation (OBIEE / Essbase)
• Financial & Operational Analytics
• Reporting & Publishing
• Big Data
• Information Discovery (Endeca)
• Business Intelligence Cloud Service (BICS)
Financial Close & Consolidations
• Legal, Segment, & Mgmt Reporting
• Financial Performance & Close
• Optimization & Performance Lab
• Tax Provisioning
• Regulatory Requirements
Data Integration Services
• ERP Integration
• Financial Data Management
• Data Warehousing
• MDM & DRM
• ETL Services and Automation
Infrastructure
• Hardware Sizing, Installation, & Configuration
• Exalytics Benchmarking
• System Monitoring, Backup, & Disaster Recovery
• Upgrade & Migrations
Advisory Services
• Project/Program Management &
Process Change
• EPM & BI Road Maps
Training & Support Services
• Standard & Custom Training
• Virtual Classroom
• Multimedia and UPK
• Service Level Agreements
• Managed Services & Hosting
• Performance Engineering
Enterprise Planning & Analytics
• Strategic Planning (HSF) &
Modeling
• Planning, Budgeting & Forecasting
• Workforce, Capital, & Project
Financial Planning
• Public Sector Planning
• Cloud Services
Costing & Profitability Management
• HPCM Standard & Detail Models
• Waterfall Allocations
• Shared Service Charges
• Activity Based Costing
• Customer, Product, Segment &
LOB Profitability
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Who is The Opus Group
Planning Cycle: Process and Pain Points
Opus Implementation Approach
Edgewater Ranzal Proposal Approach
Demonstration of Design Components
Benefits realized thus far
Agenda
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Integrated Real Estate Development and Design-Build Construction
Founded in 1953 as Rauenhorst Construction Company
Offices in Minneapolis (HQ), Chicago, Denver, Des Moines, Kansas City, Indianapolis, Phoenix and St. Louis
Merchant builder – build to sell, don’t build to own
Two legal entities for Capital Planning and Revenue & Margin Modeling
Capital Structures: On Book (all Opus equity); JV (some Opus equity); Fee Development (their equity); Client Direct Services (third party)
Who is The Opus Group
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Capital Planning and Revenue Modeling processes evolved over time as a series of separate, and not linked, quarterly spreadsheets for ODC & ODB
Opus Short Term Capital Planning is a 13 month rolling-forecast model
Manual process to update multiple spreadsheets with similar or the same project-level data; significant effort at quarter end to “roll-forward” the file
Time consuming to change a project driver(s): capital structure and dates
Difficult to extend short-term plan (monthly) into a long-term plan (quarterly) – different planning units used in separate files
Scenario analysis = “File Save As”; adding to file proliferation
No historical database; data in three month segments in quarterly files
Created multiple opportunities for data-entry errors – “linkronization”
Planning Cycle Pain Points
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Planning Process
ProjectProforma
CRM
ProformaModel
Summary
Real Estate Revenue &
Margin
Revenue & Margins
Construction Revenue &
Margin
Short Term Capital Planning Long Term Capital Planning
Construction Short TermCapital Plan
Real Estate Short TermCapital Plan
ProjectEquity
Analysis
Cash BooksWEBI & E1
Reports
Long TermCapital Modeling
Opus GroupFive Year
P&L
Opus GroupFive Year
Capital PlanConst Margin
RE Revenue &Margin
Real Estate Project Equity; RE & Construction Revenue & Margin
ODB Available Capital not incorporated into LTCP; only via Distributions to ODC
TableGraphs
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CRMPipeline
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Three phases: Crawl – Walk – Run
Crawl phase (July – November 2015): Short and Long Term Capital Planning
Goal: Use PBCS to prepare Short and Long Term Capital Plans starting Fall 2015
Build out the basics – Dimensions; Business Rules; Task Lists; Calculations; Forms
Load monthly historical data; starting point November 2014
Use SmartView to push monthly actual cash flow data into PBCS; establish process
Eliminate the line between short-term and long-term Capital Planning
Eliminate the three most complex spreadsheets used in Capital Planning
Use SmartView for quarterly management and board reporting
Implementation Approach
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Crawl Phase
CRAWL
PHASE
SCOPE
ProjectProforma
CRM
ProformaModel
Summary
Real Estate Revenue &
Margin
Revenue & Margins
Construction Revenue &
Margin
Short Term Capital Planning Long Term Capital Planning
Construction Short TermCapital Plan
Real Estate Short TermCapital Plan
ProjectEquity
Analysis
Cash BooksWEBI & E1
Reports
Long TermCapital Modeling
Opus GroupFive Year
P&L
Opus GroupFive Year
Capital PlanConst Margin
RE Revenue &Margin
Real Estate Project Equity; RE & Construction Revenue & Margin
ODB Available Capital not incorporated into LTCP; only via Distributions to ODC
TableGraphs
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CRMPipeline
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Walk phase (January – May 2016): Revenue and Margin modelling
Develop inbound interfaces from E1 via Business Objects / WEBI
Upload of ODC and ODB monthly actual cash flow activity
Upload of ODC and ODB quarterly actual revenue and margin
Add timing lag – revenue and margin different than cash
Management Adjustment – exclude specific projects from modelling
Other enhancements from Crawl Phase
Run phase ( ~ Q1 2017): Automate data feeds; P&L data
Pull data from source systems directly into PBCS
Develop inbound interfaces from CRM to populate pro forma
Additional financial data from E1: full P&L data; detailed expenses
Five year Capital Plan and P&L from PBCS
Convert from SmartView extracts to PBCS Financial Reports
Implementation Approach
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Walk – Run Phase
WALK-RUN
PHASE
SCOPE
ProjectProforma
CRM
ProformaModel
Summary
Real Estate Revenue &
Margin
Revenue & Margins
Construction Revenue &
Margin
Short Term Capital Planning Long Term Capital Planning
Construction Short TermCapital Plan
Real Estate Short TermCapital Plan
ProjectEquity
Analysis
Cash BooksWEBI & E1
Reports
Long TermCapital Modeling
Opus GroupFive Year
P&L
Opus GroupFive Year
Capital PlanConst Margin
RE Revenue &Margin
Real Estate Project Equity; RE & Construction Revenue & Margin
ODB Available Capital not incorporated into LTCP; only via Distributions to ODC
TableGraphs
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Ranzal Proposal Approach
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Solve “Linkronization”
Driver based Hyperion Planning solution!
Important requirements
Planning Horizons
Complexity
Cost
Limited IT involvement
Proof of Concept
Ranzal Proposal Approach
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Scope
Complexity
Time
Technology
Project Portfolio
Planning
Quick
Turnaround
Low IT
Involvement
Rolling forecast
Proposal Approach
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Functionality
Capex Yes No
Workforce Yes No
Plan Type Yes Yes
Data Yes Yes
Essbase Yes No
Cost / Time
Footprint High N / A
Maintenance High Low
Software High N / A
Licensing High Low
On Premise
OraclePBCS
Requirements
On Premise Deployment
Requirements
Cloud Deployment
Cross Tab Reporting
Oral Presentation Results
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Proof of Concept SAAS
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Design Components
Demo
Design Components
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Project Administration
Project properties
Project End Month = Project Start
Month + Construction Duration
Project Exit Month = Project End Month +
Stabilization Duration
Design Components
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Joint Ventures (JV) Administration
Joint Venture % and Promote %
JV Payout – Project Start, Construction Duration, and Project Exit payouts
Design Components
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Fee Development Administration
Development Fee Margin
Dev Fee Payout – Project Start, Construction Duration, and Project Exit payouts
Design Components
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Pro Forma Projection
Project Costs = Land + Development + Building + Miscellaneous
Project Equity, Cash Equity, and Opus Cash Equity
Loan to Cost Ratio, Project Equity, Joint Venture, and Promote
Understanding Maximum Debt, and Opus Share Margin
Design Components
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Pro Forma Projection (continued)
Capital Structures and Pro Forma Projections
‘On Book’ projects
- All Cash Equity is Opus Cash Equity
as Opus is incurring all the costs
Design Components
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Pro Forma Projection (continued)
Capital Structures and Pro Forma Projections
‘Joint Venture’ projects
- Joint venture portion of the equity
is Opus Cash Equity
Design Components
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Contracts
Project Contracts
Drives Construction Capital Plans
Drives Revenue and Margin Plans
Design Components
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Capital Plans
Changes on Projects
Capital Structure changes
Potential changes in dates
Application of modelling to one or both of ODC and ODB
Linkronization
PTD and PVAR
Actuals Overlay
Design Components
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Project Equity
Spanning multiple years
By Capital Structure
By Product Type
By Project Status
Graphical Forms
Design Components
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Version Based Analysis
What-if Analysis
Copy Version
Change user preference
Make changes to the new version project drivers
Reproduce results
Crawl Phase – Realized Benefits
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Centralized source of driver based project data for planning and analysis
Eliminated the three complex spreadsheets used for Capital Planning
Linkronization substantially reduced – eliminate 9 of the 13
Substantial efficiency gains preparing Short Term Capital Plans75% reduction in time; from typically four full days of work down to one
Fully integrated to Opus Long Term Capital Plan
Reallocated time to analysis of the overall portfolio of projects – prepare, compare and contrast multiple “What-if” Scenarios
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Efficiently model deployment of capital amongst a portfolio of projects in order to maximize long-term returns to stakeholders
Q&A
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Charlie Luke
Vatsal Gaonkar
For further questions
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Our Sessions Today
8:30am – Infrastructure
Best Practices in Preparing for and Managing your Hyperion EPM Infrastructure Version 11.1.2.4
Scott Pold, Practice Director – Infrastructure and Support Services
1:00pm – BI and Reporting
Modernize the Oracle EBS Experience with Endeca Financial Extensions
Dan Brock, Practice Director – Big Data Analytics
2:10pm – Enterprise Planning
Opus Group, an Oracle Planning and Budgeting Cloud Service (PBCS) Success StoryVatsal Gaonkar, Project Lead
Charlie Luke, Sr. Director Financial Planning & Analysis
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Contact
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Email: [email protected]